MKGT 2080 Chapter 10 Review Mcgraw Hill Connect

Marketing research

the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization

Why is marketing research valuable?

-reduces uncertainty

-makes firms more customer oriented

-firms can anticipate and respond quickly to competitive moves

Prior to pursuing marketing research...

1. will it be useful?

2. is top management committed?

3. small or big?

4. PLAN

What is the first step in the marketing research process?

Defining the objectives and research needs

Assess the value of a product through comparing the _____ and ______

benefits; costs

What is the second step in the marketing research process?

Designing the research

What is the third step in the marketing research process?

Collecting the data

Secondary data

information that already exists somewhere, having been collected for another purpose

ex. external or internal

Primary data

information collected for the specific purpose at hand

ex. focus groups, in-depth interviews, and surveys

What is the fourth step in the marketing research process?

Analyzing the data and developing insights

Data

raw numbers that have limited value on their own

Information

Data converted into a meaningful and useful context

What is the fifth step in the marketing research process?

Developing and implementing an action plan

Sample

A relatively small proportion of people who are chosen in a survey so as to be representative of the whole.

A typical marketing research presentation includes:

1. executive summary

2. the body of the report

3. the conclusions

4. the limitations

5. appropriate supplemental tables, figures, and appendixes

The body of the report

discusses the research objectives, methodology used, and detailed findings

Inexpensive secondary data

-low cost

-not adequate (outdated)

-ex. U.S. Census

Syndicated secondary data

data available for a fee from commercial research firms (Nielsen, etc)

Scanner data (as a whole)

data obtained by passing merchandise over a laser scanner that reads the UPC code from the packages

Panel data (by person)

information collected from a group of consumers then organized

Qualitative research

uses broad, open-ended questions to understand the phenomenon of interest

Quantitative research

structured responses that can be statistically tested

What are the various primary data collection techniques?

qualitative and quantitative research methods

Examples of qualitative research

observation, in-depth interviews, focus groups, social media

Examples of quantitative research

experiments, survey, scanner, panel

Observation

-studying customer movements

-used to improve store layouts

-best method for determining how customers might use the product

In-Depth Interviews

-better understand the nature of the industry

-gain knowledge of customer preferences

-expensive and time-consuming

Focus Group Interviews

-gather qualitative data about intial reactions to a new or existing product

-opinions about different competitive offerings

-reactions to marketing stimuli

-often online

-saves costs

-gain a broader range of customers

Survey research

survey, questionnaire, unstructured questions, and structured questions

Survey

systematic and most popular means of collecting information

Questionnaire

a document that features a set of questions designed to gather info from respondents and thereby accomplish the researchers' objectives

Unstructured questions

open-ended questions that allow respondents to answer in their own words

Structured questions

closed-ended questions for which a discrete set of response alternatives, or specific answers, is provided for respondents to evaluate

Panel- and Scanner-Based Research

can be either secondary or primary data

Experimental research

systematically manipulates one or more variables to determine which variables have a causal effect on other variables

Advantages of Secondary research

-saves time in collecting data because they are readily available

-free or inexpensive (except for syndicated data)

Disadvantages of Secondary research

-may not be precisely relevant to information needs

-information may not be timely

-sources may not be original, and therefore usefulness is an issue

-methodologies for collecting data may not be appropriate

-data sources may be biased

Advantages of Primary research

-specific to the immediate data needs and topic at hand

-offers behavioral insights generally not available from secondary research

Disadvantages of Primary research

-costly

-time-consuming

-requires more sophisticated

training and experience to design

study and collect data

Big data

data sets that are too large and complex to analyze with conventional data management software

Data warehouse

a place where databases are stored so that they are available when needed

Data mining

the process of analyzing data to extract information not offered by the raw data alone

Identify the 5 Vs of big data

Volume

Variety

Velocity

Veracity

Value

Volume

-the amount of data being collected

-data in many forms

-qualitative and quantitative, obtained from different media formats

Velocity

-data moving quickly

-streaming data, requiring milliseconds to seconds to respond

Veracity

-offer different levels of quality and timeliness

-data in doubt

-trustworthiness of data due to accuracy and reliability

Value

-data into money

-usefulness of data compared to its cost

Marketing analytics

uses advanced technologies and models to analyze gathered data so that marketers can improve their decision-making, optimize their returns, and make appropriate customer-related decisions.

What are the 4 factors of marketing decisions?

1. making marketing mix decisions

2. determining which segments to target

3. understanding and managing customer segments

4. creating micro-segmentations strategies at a local level

Descriptive analytics tools

helps firms organize, tabulate, and depict their available data, usually in easy-to-understand reports, tables, and charts

Predictive analytics tools

rely on historically available data to forecast the future

ex. Google Analytics 360

Churn rate

the rate at which customers leave a product or service

Prescriptive analytics tool

analyses that use simulations that ask a series of what-if-type questions

Active analytics tool

artificial intelligence algorithms used to analyze input gathered from various data bases including data from the internet of things

ex. Roomba+Alexa+Smart cars, etc

Marketing research should be used only to produce ______ and ______ information

unbiased; factual

Facial recognition software

software that provides identification by evaluating facial characteristics

Neuromarketing

the process of examining consumers' brain patterns to determine their responses to marketing communications, products, or services for the purpose of developing marketing tactics or strategies

Watch dogs that have emerged over data mining on consumer information

-Center of Democracy and Technology (CDT)

-Electronic Privacy Information Center (EPIC)

How many data records have been lost or stolen since 2013?

more than 4.5 billion