Essentials of Marketing Research Kumar, Aaker, Day Essentials of Marketing Research Kumar, Aaker, Day Instructors Presentation Slides

Essentials of Marketing Research Kumar, Aaker, Day Chapter Six Standardized Sources of Marketing Data

Essentials of Marketing Research Kumar, Aaker, Day Standardized Sources Syndicated sources of marketing data: F Store audits F warehouse withdrawal services F consumer panels F scanner based systems and single source data

Essentials of Marketing Research Kumar, Aaker, Day Motivation for using standardized data F Pipeline Effect in distribution channels F Unknown competitor actions F Store behavior unknown (i.e. promotion execution)

Essentials of Marketing Research Kumar, Aaker, Day Example for packaged goods sales: margarine brand

Essentials of Marketing Research Kumar, Aaker, Day Motivation for using standardized data Factory Sales Peak Retail Sales Peak

Essentials of Marketing Research Kumar, Aaker, Day Growth of Standardized Sources Factors F Multitude of information users having common information needs F When cost of satisfying individual user's need is prohibitive F The increasing use of scanner systems at the check out points

Essentials of Marketing Research Kumar, Aaker, Day Retail Store Audits F Personally record store inventories and movements for any brand and size F Basic measurement tool in lieu of scanning data F Common categories: Health and Beauty, Durable, Confectionery, Liquor, F Example: Nielsen Retail Index

Essentials of Marketing Research Kumar, Aaker, Day Retail Store Audits Beginning Inventory +Deliveries -Ending Inventory =Sales for Period

Essentials of Marketing Research Kumar, Aaker, Day Nielsen Retail Index F Biggest research company in the world F Their auditing services cover four groups u Grocery products u Drugs u Mass merchandisers u Alcoholic beverages

Essentials of Marketing Research Kumar, Aaker, Day Audits and Surveys: National Market Audit F Bimonthly audit focussed on products irrespective of the outlet carrying the product

Essentials of Marketing Research Kumar, Aaker, Day Consumer Purchase Panels Audits and scanner data do not cover: F Who buys (consumer demographics) F Frequency of purchases F Switching behavior between brands and stores F Level of deal sensitivity

Essentials of Marketing Research Kumar, Aaker, Day What is a Panel? F Representative sample of households F Records all purchases made over time (cross-section/time-series) F Records all coupons used F Receive incentive for co-operation F ACNielsens Consumer Panel: Homescan Consists of 40,000 demographically balanced U.S. households that use hand-held scanners to record every bar-coded item purchased.

Essentials of Marketing Research Kumar, Aaker, Day Consumer Purchase Panels To Cover the Gap Between Warehouse Withdrawal Audits and Actual Purchases Following Methods Can Be Used F Home Audit Approach u Panel member agrees to permit an auditor to check the household stocks of certain product categories at regular intervals F Mail Diary Method u Panel member records the details of each purchase and returns the diary by mail at regular intervals

Essentials of Marketing Research Kumar, Aaker, Day Advantages of Panels Can Provide Information On u Aggregate Sales Activity u Brand Shares u Shifts in Buyer Characteristics u Shifts in Retail Outlets

Essentials of Marketing Research Kumar, Aaker, Day Limitations of Consumer Panels Possibility of F Selection Bias F Mortality Effect –e.g. move, illness, refusal F Testing Effects –first month records are discarded

Essentials of Marketing Research Kumar, Aaker, Day Scanner Data F Have revolutionized grocery (and retail ) industry F Generates huge amounts of data F Main suppliers: IRI, Nielsen F Kraft Food spends more than $30 million per year on scanner data F In comparison to survey research: scanner data reveal actual consumer behavior

Essentials of Marketing Research Kumar, Aaker, Day Single-source Systems F Combine scanner data, panels, and TV- measurement F Usually set up in self-contained communities with their own newspapers and cable TV and are roughly representative of the demographics of the country F A test panel of community households is recruited and monitored F Example: BehaviorScan by IRI

Essentials of Marketing Research Kumar, Aaker, Day Single-source Systems F Experiment like setting F Control of –advertising exposure in TV, newspapers, … –couponing –buying behavior

Essentials of Marketing Research Kumar, Aaker, Day Advantages of Single Source Systems F Availability of exclusive pre-test records F Immediate availability of test results F Ability to compare households prior to and after exposure to the message F Ability to control settings

Essentials of Marketing Research Kumar, Aaker, Day Media Related Standardized Sources F Nielsen Media Research (previously Nielsen Television Index) u A system for estimating national TV audiences F Arbitron Diary Panel u Both regional and national radio and TV panels F Starch Scores u Print media F Multi Media and Web Services

Essentials of Marketing Research Kumar, Aaker, Day Nielsen Media Research ( F Nielsen Media Research (New York) –National People Meter Service: audience estimates for all national programming sources, including six broadcast networks, 41 cable networks. –Used by more than 100 advertising agencies and 45 advertisers.

Essentials of Marketing Research Kumar, Aaker, Day Source: New York Times 1997

Essentials of Marketing Research Kumar, Aaker, Day Roper Starch ( F Starch Ad Readership Reports measure ad readership within specific publications F Covers over 500 magazine issues and about 25,000 ads each year. F Raw readership scores (the percent of readers who saw the ad and read the copy) F Ad is ranked against other ads in the issue. F Ad is ranked against other ads in its product category over the past two years. F Interviews are conducted in person F Standard demographic breakdowns

Essentials of Marketing Research Kumar, Aaker, Day Expert Systems Based on Single- source Services F Since users of scanner data are flooded with massive amounts of data, expert systems are used to help the users understand the data quickly F Examples of Expert Systems Are u Apollo Space Management Software u Cover Story u Sales Partner u Promotion Stimulator u Spotlight

Essentials of Marketing Research Kumar, Aaker, Day Marketing Decision Support Systems F A typical marketing manager receives some or all of following data u Factory shipments or order u Syndicated aggregate (industry) data services u Sales reports from sales personnel u Consumer panel data u Scanner data u Demographic data u Internal cost and budget data Purpose of MDSS is to combine marketing data from diverse sources into single database

Essentials of Marketing Research Kumar, Aaker, Day Applications of Standardized Sources of Data F Measuring product sales and market share: –Panels, audits, scanner data, internal records F Measuring advertisement exposure and effectiveness: –Starch Scores, Nielsen Media Research, Arbitron

Essentials of Marketing Research Kumar, Aaker, Day Applications of Standardized Sources of Data Measuring promotion effectiveness: scanner data, panels Estimation and evaluation of models scanner data, starch scores, panels, internal records