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Identify the reason for conducting marketing research. LEARNING OBJECTIVES (LO) After reading Chapter 8, you should be able to: LO1 Identify the reason for conducting marketing research. Describe the five-step marketing research approach that leads to marketing actions. LO2 LO3 Explain how secondary and primary data are used in marketing. 1-2 Marketing Research

LEARNING OBJECTIVES (LO) After reading Chapter 8, you should be able to: Discuss the uses of observations, questionnaires, panels, and experiments. Explain how information technology and data mining link massive amounts of marketing information to meaningful marketing actions. LO5 1-3 From Customer Insights to Actions

Understanding Beer Drinkers Better Singha Understanding Beer Drinkers Better How Singha recaptured beer market dominance with market research 1-4 Opening Story – Singha Beer

What is Marketing Research? Roles & Reasons What is Marketing Research? Why is Good Marketing Research Difficult, Especially with Kids? Who holds the purchasing power decisions for children’s products? Five-Step Marketing Research Approach to Making Better Decisions LO1 1-5 Reasons for Marketing Research

FIGURE 8-1 Five-step marketing research approach leading to marketing actions LO2 1-6 The Five Step Marketing Research Approach

Step 1: Problem Definition Setting Research Objectives Exploratory Research Descriptive Research Causal Research LO2 1-7 The Five Step Marketing Research Approach

Step 1: Problem Definition Setting Research Objectives Measures of Success Measure of Success: Brand Attitude Possible Marketing Actions Higher brand attitude scores with local “What Time Is It?” advertising theme Continue with the local “What Time Is It?” advertising theme Higher brand attitude scores with the global “Tiger: Unravel the Secret” advertising theme. Adopt the new global “Tiger: Unravel the Secret” advertising theme LO2 1-8 The Five Step Marketing Research Approach

Step 1: Problem Definition Setting Research Objectives Measure of Success: Brand Attitude Possible Marketing Actions Fischer-Price leveraged superior marketing research to develop its highly successful chatter telephone. Scan the link to find out more. Higher brand attitude scores with local “What Time Is It?” advertising theme Continue with the local “What Time Is It?” advertising theme Higher brand attitude scores with the global “Tiger: Unravel the Secret” advertising theme. Adopt the new global “Tiger: Unravel the Secret” advertising theme LO2 1-9 The Five Step Marketing Research Approach

Step 2: Research Plan Development Planning Stage Specify Constraints Identify Data Needed for Marketing Actions LO2 1-10 The Five Step Marketing Research Approach

Step 2: Research Plan Development How to collect data? Concepts New-Product Concept Methods Sampling Probability Sampling Nonprobability Sampling Statistical Inference LO2 1-11 The Five Step Marketing Research Approach

Step 3: Info/Data Collection Secondary Data Primary Data LO3 1-12 The Five Step Marketing Research Approach (ii): Primary & Secondary Data

FIGURE 8-2 Types of marketing information LO3 1-13 The Five Step Marketing Research Approach (ii): Primary & Secondary Data

Step 3: Info/Data Collection Secondary Data (Internal) Sales Breakdowns Customer Inquiries/ Complaints LO3 1-14 8-14 The Five Step Marketing Research Approach (ii): Primary & Secondary Data

Step 3: Info/Data Collection Secondary Data (External) Census Bureau Trade Associations Business Periodicals Syndicated Services Scanner Data LO3 1-15 The Five Step Marketing Research Approach (ii): Primary & Secondary Data

Useful Internet Databases for Marketers Going Online Online Databases LexisNexis ProQuest Statistical & Financial Data The Wall Street Journal Bloomberg Investor’s Business Daily FISonline Portals & Search Engines ASEAN Secretariat Google LO3 1-16 The Five Step Marketing Research Approach (ii): Primary & Secondary Data

Step 3: Info/Data Collection Advantages/Disadvantages of Secondary Data Advantages Time Savings Inexpensive Disadvantages Out of Date Definitions/Categories Not Right Not Specific Enough LO3 1-17 The Five Step Marketing Research Approach (ii): Primary & Secondary Data

Step 3: Info/Data Collection Primary Data (Observing Behaviour) Mechanical Observation Observational Data Ever wonder about how companies like A.C. Nielsen track viewing figures? Find out about Nielsen’s special remote with ‘personal viewing button’! LO4 1-18 Gathering Primary Data: Observations, Questionnaires , Panels & Experiments

FIGURE 8-4 Nielsen Television Index Ranking Report for network primetime-TV for the week of May 16-22, 2011 Ratings are important KPI for TV networks and may determine whether a show gets recommissioned / cancelled, and the cost of airing ads during the show. LO4 1-19 Gathering Primary Data: Observations, Questionnaires , Panels & Experiments

How do you do marketing research for teenagers? Teenage Research Unlimited has teenagers complete a drawing / questions about themselves. What inferences can you draw from this drawing? LO4 1-20 Gathering Primary Data: Observations, Questionnaires , Panels & Experiments

Step 3: Info/Data Collection Primary Data (Observing Behaviour) Personal Observation Mystery Shopper Videotaping Hotels famously have mystery shoppers/tourists To find out how people actually use toothbrushes, companies have studied tapes of people brushing their teeth in the morning Ethnographic Research LO4 1-21 Gathering Primary Data: Observations, Questionnaires , Panels & Experiments

Step 3: Info/Data Collection Primary Data (Questioning Consumers) Questionnaire Data Idea Generation Methods Individual Interviews Depth Interviews LO4 1-22 Gathering Primary Data: Observations, Questionnaires , Panels & Experiments

Step 3: Info/Data Collection Primary Data (Questioning Consumers) Idea Generation Methods Focus Groups “Fuzzy Front End” LO4 1-23 Gathering Primary Data: Observations, Questionnaires , Panels & Experiments

Step 3: Info/Data Collection Primary Data (Questioning Consumers) Idea Evaluation Methods Telephone Surveys Personal Interview Surveys Mail/Fax Surveys E-Mail/ Internet Surveys Mall Intercept Interview Surveys LO4 1-24 Gathering Primary Data: Observations, Questionnaires , Panels & Experiments

Step 3: Info/Data Collection Primary Data (Question Formats) Open-Ended Questions Closed-End or Fixed Alternative Questions Dichotomous Questions Semantic Differential Questions Likert Scale Questions LO4 1-25 Gathering Primary Data: Observations, Questionnaires , Panels & Experiments

FIGURE 8-4 Typical problems in wording questions LO4 1-26 Gathering Primary Data: Observations, Questionnaires , Panels & Experiments

FIGURE 8-5A Different types of questions featured in a sample Wendy’s survey (Q1-Q5) LO4 1-27 Gathering Primary Data: Observations, Questionnaires , Panels & Experiments

FIGURE 8-5A (Q1) Sample Wendy’s survey: Open-ended question LO4 8-28 Gathering Primary Data: Observations, Questionnaires , Panels & Experiments

FIGURE 8-5A (Q2) Sample Wendy’s survey: Dichotomous question LO4 8-29 Gathering Primary Data: Observations, Questionnaires , Panels & Experiments

FIGURE 8-5A (Q3) Sample Wendy’s survey: Multiple choice question LO4 8-30 Gathering Primary Data: Observations, Questionnaires , Panels & Experiments

FIGURE 8-5A (Q4) Sample Wendy’s survey: Attitudinal question LO4 8-31 Gathering Primary Data: Observations, Questionnaires , Panels & Experiments

FIGURE 8-5A (Q5) Sample Wendy’s survey: Semantic differential scale question LO4 8-32 Gathering Primary Data: Observations, Questionnaires , Panels & Experiments

FIGURE 8-5A Different types of questions featured in a sample Wendy’s survey (Q6-Q9) LO4 1-33 Gathering Primary Data: Observations, Questionnaires , Panels & Experiments

FIGURE 8-5B (Q6) Sample Wendy’s survey: Likert scale question LO4 8-34 Gathering Primary Data: Observations, Questionnaires , Panels & Experiments

FIGURE 8-5B (Q7) Sample Wendy’s survey: Media behavior question LO4 8-35 Gathering Primary Data: Observations, Questionnaires , Panels & Experiments

FIGURE 8-5B (Q8) Sample Wendy’s survey: Usage behavior question LO4 8-36 Gathering Primary Data: Observations, Questionnaires , Panels & Experiments

FIGURE 8-5B (Q9) Sample Wendy’s survey: Demographic questions LO4 8-37 Gathering Primary Data: Observations, Questionnaires , Panels & Experiments

Step 3: Info/Data Collection Primary Data (Panels & Experiment) Experiments Independent Variable: The Cause Dependent Variable: The Result Test Markets LO4 1-38 Gathering Primary Data: Observations, Questionnaires , Panels & Experiments

Step 3: Info/Data Collection Advantages & Disadvantages Primary Data More Specific to the Problem Disadvantages Expensive Time Consuming to Collect LO4 1-39 Gathering Primary Data: Observations, Questionnaires , Panels & Experiments

Using Marketing Dashboards Making Sense of Consumer Data Are the Carmex Social Media Programs working well LO4 1-40 Gathering Primary Data: Observations, Questionnaires , Panels & Experiments

Step 3: Info/Data Collection Using Info Technology to Trigger Marketing Actions The Marketing Manager’s View of Sales Drivers Controllable Marketing Mix Factors Uncontrollable Environmental Forces Need to Distinguish Between: Data (Facts & Figures) Information (Interpreted Data that Leads to Marketing Actions) LO5 1-41 Utilizing Information & Data to make Marketing Actions

Step 3: Info/Data Collection Using Info Technology to Trigger Marketing Actions Key Elements of an Information System Information Technology Data Warehouse Sensitivity Analysis LO5 1-42 Utilizing Information & Data to make Marketing Actions

FIGURE 8-6 How researchers use information technology to turn data into action 1-43 Utilizing Information & Data to make Marketing Actions

Step 3: Info/Data Collection Using Info Technology to Trigger Marketing Actions Data Mining: A New Approach to Searching the Data Ocean Data Mining RFID Technology LO5 1-44 Utilizing Information & Data to make Marketing Actions

Step 4: Developing Findings Making Sense and Use of the Data Analyze the Data How are Sales? What Factors Contribute to Sales Trends? Present the Findings LO5 1-45 Utilizing Information & Data to make Marketing Actions

FIGURE 8-7 Marketing dashboards that present findings to Tony’s marketing manager that leads to recommendations and actions LO5 1-46 Utilizing Information & Data to make Marketing Actions

FIGURE 8-9A Findings presented to Tony’s marketing manager LO5 8-47 Utilizing Information & Data to make Marketing Actions

FIGURE 8-9B Findings presented to Tony’s marketing manager LO5 8-48 Utilizing Information & Data to make Marketing Actions

FIGURE 8-9C Findings presented to Tony’s marketing manager LO5 8-49 Utilizing Information & Data to make Marketing Actions

FIGURE 8-9D Findings presented to Tony’s marketing manager LO5 8-50 Utilizing Information & Data to make Marketing Actions

Step 5: Taking Marketing Actions 5 Step Marketing Approach Make Action Recommendations Implement the Action Recommendations Evaluate the Results Evaluate the Decision Itself Evaluate the Decision Process Used LO5 1-51 Utilizing Information & Data to make Marketing Actions