Chapter 1 Marketing research for managerial Decision Making

Geofencing

A virtual fence that is placed around a geographic location in the real world

Big Data

large and complex datasets that information technology enables organizations to gather and store, requires innovative tools to extract insight  for businesses and markets

Database

a collection of the most recent data that is organized for efficient retrieval and analysis

Data warehouses-

provides access and analysis of collections of historical data from various sources throughout the company

Customer relationship management (CRM) system

Manages important customer information, such as customer interactions throughout all touchpoints and purchase behavior 

Marketing Research

 the function that links an organization to its market through the gathering of info

4 P’s

price

place

promotion

product

Concept and Product Testing or Test Marketing

provide information for decisions on product improvements and new product introductions

Positioning

is a process in which a company seeks to understand how present or potential products are perceived by consumers on relevant product attributes

Perceptual Mapping

technique used to picture the relative position of products on two or more product dimensions important to consumer purchase decisions

Behavioral Targeting

display ads at one website based on the users previous surfing behavior

Shopper Marketing

marketing to consumers based on research of the entire process consumers go through when making a purchase. Understanding of a customers purchse journey. and addresses: Product category management and displays, sales, packaging, promotion, and marketing

3 most common research taste in integrated marketing communications are 

• Advertising effectiveness studies

• Attitudinal research

• Sales tracking

Analytics

is the application of statistics to quantify performance

Benefit and Lifestyle Studies

examine similarities and differences in consumers' needs. Researchers use these studies to identify 2 or more segments within the market for a particular companies products

companies choose ______ research techniques with multiple methods to overcome weaknesses in using one methodology

Hybrid

objective of benefit and lifestyle studies

to collect info about customer characteristics, product benefits, and brand preferences 

Ethnography

requires extended observation of consumers in context. Can highlight problems and opportunities for marketers that are based on consumers actual behavior

Purpose of theory

is to generalize relationships between concepts in a way that is applicable to a wide variety of businesses and often other settings

Marketing research tasks include

• Designing methods for collecting information

• Managing the info collection process

• Analysing and interpreting results

• Communicating findings to decision makers

marketers must first understand

the questions or business problems that need to be addressed, the use appropriate tool and technique

Concept and product testing or test marketing answers 2 questions

1. How does a product perform for the customer

2. how can the product be improved or exceed customer expectations

Theoretical research

helps marketers understand questions applicable to a broad variety of marketing contexts

Pricing decisions involve

Involve pricing new products, establishing price levels in test marketing, modifying prices for existing products

Marketing research answers:

• How large is the demand potential within the target market at various price levels?

• What are the sales forecasts at various price levels?

• How sensitive is demand to changes in price levels?

• Are there identifiable segments that have different price sensitivities?

• Are there opportunities to offer different prices for different target markets?

Major component of marketing segmentation research is

benefit and lifestyle studies examining consumers needs

Adoption and diffusion theory

helps marketers understand how new products are adopted and spread throughout the market and the characteristics of products and adopters that aid or inhibit adoption

In services marketing research marketers found 5 characteristics important to consumers

• Reliability

• Empathy

• Responsiveness

• Assurance

• Tangibles

Information overload theory

explains why consumers are more likely to purchase from a sample of 6 vs 24

In sales research, ____ ,_____ and ____are characteristics linked to a salespersons success

likability, similarity, and trustworthiness

Types of marketing research firms 

• internal/ external

• Custom / standardizes

• Brokers / facilitators

Customized research firms

Provide tailored services to the client

standardized firms

Research firms that provide general results following a standard format so that results of a study conducted for one client can be compared to norms

Internal research providers

• are typically organizational units that reside within a company. (Kraft foods) Benefits = 

  • Research method consistency

  • Shared info across the company

  • Lower research costs

  • Ability to produce actionable research results 

External sources (marketing research suppliers)

• perform all aspects of the research, including 

  • Study design

  • Questionnaire production

  • Interview

  • Data analysis

  • Report preparation

• Operate on fee basis and submit proposal

Customized research firms

• provide specialized highly tailored services to the client 

• Concentrate activities in one specific area 

syndicated business services

services provided by standardized research firms that include data made or developed from a common data pool or database 

• EX: AC Nielsen database tracking the retail sales of thousands of brand name products 

• Data can be customized for industries 

These business skills are critical in job aptitude

• Communication skills- verbal and written

• Interpersonal skills- ability to work with others

• Statistical skills

Top 5 skills candidates need for open marketing positions today

• The ability to understand and interpret secondary data

• Presentation skills

• Foreign language competency

• Negotiation skills

• Information tech proficiency 

Ethics in marketing research practices

3 key groups 

• The research information provider

• The research information users

• The respondents

 black box

when they are proprietary and research firms will not fully disclose how the methodology works

Curbstoning

occurs when interviewers complete interviews themselves or make up observed respondents behaviors

Suging/frugging

claiming that a survey is for research purposes and then asking for a sale or donation 

Denonymizing data

combining different publicly aware information usually unethically to determine consumers identities, especially on the internet

Unethical activities by the respondent

lie

Unethical activities of the client/ researcher user

• request proposal then dont buy

• long term but dont come back

• overstate results

abuse of respondents

• sugging / frugging

• no incentives

• anonymity

• pivacy

The statement of ethics for the american marketing association says:

• Researchers will conform to all relevant laws

• Researchers will behave ethically

• Use special care when conducting research among children

• Respondents cooperation is voluntary

• Rights of respondents as private individuals is respected

• Never allow personal data to be used for any other purpose

• Ensure projects are accurate, transparent, objective, and appropriate

• Researchers will conform to principles of fair competition 

5 Emerging trends

1. Increased emphasis on secondary data collection methods

2.  Movement towards technology related management (optical scanning data, database tech, customer relationship management)

3. Expanded use of digital technology for information acquisition and retrieval

4. A broader international client base 

5. Movement beyond data analysis toward a data interpretation/ information management environment