CH 4 - Market Research

Brand development index (BDI)

An index that shows how well a brand’s sales are developed in a region relative to the region’s population size.

Constraints

In a decision, the restrictions placed on potential solutions to a problem.

Data

The facts and figures related to the project that are divided into two main parts: secondary data and primary data.

Data mining

The processing of large amounts of data using sophisticated software to find insightful correlations and patterns that lead to better business decisions.

Descriptive analytics

A type of analytics that focuses on what has happened.

Experiment

In marketing, changing a variable involved in a customer purchase to find out what happens.

Focus groups

A qualitative research technique where a small group of people (usually six to ten) meet for a few hours with a trained moderator to discuss predetermined areas.

In-depth interviews

Detailed interviews where a researcher questions an individual at length in a free-flowing conversational style in order to discover information that may help solve a marketing problem.

Information technology

Includes all of the computing resources that collect, store, and analyze data.

Key performance indicators (KPIs)

Types of metric that are used to evaluate performance.

Market share

The percentage of sales volume for a product relative to the entire sales volume of the category in which it competes; ratio of a firm’s sales to the total sales of all firms in the industry.

Marketing research

The process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions.

Measures of success

Criteria or standards used in evaluating proposed solutions to the problem.

Non-probability sampling

Selecting a sample so that the chance of selecting a particular element of a population is either unknown or zero.

Objectives

Specific, measurable goals.

Observational data

(Primary) Facts and figures obtained by watching how people actually behave, which can be collected by mechanical (including electronic), personal, or neuromarketing methods.

Omnibus survey

The voluntary participation of respondents in routine research surveys that allow marketers to add a small number of questions to an existing survey to receive cost-effective data.

Panel

A large sample of respondents that voluntarily complete questionnaires on a regular basis so that researchers can assess changes in behaviour and attitudes.

Predictive analytics

The combination of data from varied sources to reveal patterns that are modelled to predict what might happen in the future.

Predictive modeling

Based on statistical models that use data mining and probability analysis to foretell outcomes.

Primary data

Data that is original and specifically collected for a project.

Probability sampling

Selecting a sample so that each element of a population has a specific known chance of being selected.

Questionnaire data

(Primary) Facts and figures obtained by asking people about asking people about their attitudes, awareness, intentions, and behaviours.

RFM analysis

The rating of customers on the basis of how recently products were purchased (recency), how often products were purchased (frequency), and the dollar value of the transactions (monetary value).

Sales forcast

The total number of a product that a firm expects to sell during a specified time period under specified environmental conditions and its own marketing efforts.

Sampling

The process of gathering data from a subset of the total population rather than from all members of that particular group.

Secondary data

Facts and figures that have already been recorded by a third party. (Internal and external)

Social analytics

The real-time measurement, interaction, and analysis of social media to assess social media campaign performance, message resonation and amplification, consumer sentiment, and common themes.

Social listening

Research that monitors public online consumer conversations on social media sites such as social networks, blogs, and forums.

Test market

An in-market localized approach, or short-term online destination, used to test the success of promotional offers, new services, or new-product launches.

Web analytics

The measurement and analysis of website data, looking at elements such as page views, time on site, bounce rate, new visitors, returning visitors, and referral traffic.

5 step market research approach

1. Define the problem

2. Develop the research plan

3. Collect relevant information

4. Develop findings

5. Take marketing actions

Step 1: Define the problem

Clearly define the problem, issue, or opportunity, and clarify the research objectives. Then, set SMART objectives and develop specific measures of success.

Step 2: Develop the research plan

Requires that the researcher:

1. Specify the constraints on the marketing research activity

2. Identify the data needed for marketing actions

3. Determine how to collect the data (concepts and methods)

Concepts

Ideas about products or services.

New-product concept

A picture or verbal description of a product or service the firm might offer for sale.

Methods

Approaches that can be used to collect data to solve all or part of a problem. Special methods vital to marketing are sampling and statistical inference.

Statistical inference

Generalize results from the sample to much larger group of distributors, customers, or prospects to help decide on marketing actions.

Step 3: Collect relevant information

Collecting relevant information to make a rational, informed marketing decision.

Step 4: Develop findings

Compile, analyze, and summarize data to turn into actionable information.

Step 5: Take marketing actions

Identify marketing actions, put them into effect, and monitor how the decisions turn out.

• Make action recommendations

• Implement the action recommendations

• Evaluate the results