1. Chapter 5: Marketing- Information-Management 5.1: The Need for Speedy Information 5.2: The Marketing Research Process 5.3: Managing the Process

2. 5.1: The Need for Speedy Information Goals Explain the purpose of Marketing- Information Management. Describe careers in Marketing- Information-Management.

3. Reaching for Data Consumers have many choices when it comes to spending their discretionary income. Sports & Entertainment businesses compete to gain a share of the total potential market.

4. Reaching for Data (continued) To gain market share, businesses must obtain information in a timely manner about their potential customer’s wants and needs. Marketing Research is conducted to gather data and identify solutions to marketing problems.

5. Who is Buying? Developing a product or service can be an expensive undertaking. Smart investors want marketing information about what consumers want to view and the public’s opinion. Example: The Movie Industry (page 122)

6. Who is Buying? (continued) Research conducted by an independent company and then offered for sale to everyone in an industry is called syndicated. Research data are collected and managed electronically, allowing current data to be viewed instantly worldwide and used to make decisions.

7. Engaging Customers Polls are surveys of people’s opinion. Example: Gallup (page 123). The information is used to help client companies move customers beyond just being satisfied with the product or service to being totally engaged with the company’s product or service.

8. Engaging Customers Engaged customers are repeat customers who are completely loyal to the company’s products and services. Gathering and managing marketing information provides businesses a deeper understanding of their customers, which is essential to a businesses growth and success.

9. Careers in Marketing Research Marketing researchers acquire and manage marketing information. Media companies, including those of television, motion pictures, radio, print, and the internet hire marketing researchers to collect data about their audiences as well as their competition. The information collected is used to provide clients with recommendations about promotion, distribution, design and pricing.

10. Marketing Research Firms According to U.S, Department of Labor, number of careers in Marketing Research will increase by 18 to 26% through 2014- much faster than the average growth expected for other occupations. Most marketing researchers are employed in large cities and generally need an advanced college degree, such as a Master’s. To gain experiences, researchers usually begin their careers as entry-level associates who assist with conducting surveys and compiling reports based on collected data.

11. Marketing Research Firms When staff researchers work with essential research agencies, they are referred to as client-side researchers. Because they are employees if the client. There are hundreds of companies that specialize in marketing segments. Some focus their research on specific market segments. Example: ACNielson (page 124) they conduct the Neilson Ratings for television shows.

12. On the Job The Director of Marketing position requires a Bachelor’s degree and experience in marketing or marketing research. A Master’s degree in BA (MBA) is a plus, since the primary objective of the position is to “drive profitable revenue” for the assigned products. The director’s team checks sales, analyzes advertising data, helps plan media campaigns, and much more.

13. On the Job (continued) The director manages the team, makes presentations, creates schedules and action plans, develops training materials, and is the main contact for information.

14. 5.2: The Marketing Research Process Goals List and describe the steps involved in Marketing Research. Discuss the human factors in Marketing Research.

15. Steps in Marketing Research When information is gathered that is specifically focused on a single target market, it is referred to as market research rather than the broader topic- marketing research. Marketing research may involve market research but it is a process that can be applied to a number of problems.

16. How It’s Done Marketing research is a problem-solving tool that helps focus decision making. The process, which must be ongoing, repeated frequently, and revised often, involves seven steps. 1.Discover and define the problem. 2.Analyze current conditions. 3.Develop the process for data collection. 4.Collect the data. 5.Analyze and report the data. 6.Determine a solution to the problem. 7.Implement and evaluate the results.

17. 1. Discover and Define the Problem Marketing Research is planned around the need to make a decision that will solve a problem. According to William G. Zikmund, in his book Exploring Marketing Research, there are three degrees of research related to problem definition.

18. 1. Discover and Define the Problem (continued) –Exploratory research is conducted when a business is unaware of the exact problem. –Exploratory research can include desk research, where reports of other completed research are used to define the problem. –Descriptive research is used when the business is aware of the problem that needs to be solved. –Casual research is used to determine cause- and-effect relationships when the problem is already clearly defined.

19. 2. Analyze Current Conditions Analysis might include examining sales volume and customer data to understand current conditions. If sales of merchandise related to team uniforms and logos have slowed while season ticket sales are high, the team may need to take a look at changing the uniform.

20. 3. Develop the Process for Data Collection There are a number of ways to conduct marketing research, including observation and conducting a survey. When trying to decide whether to switch team uniforms, the marketers could have the team wear each of the uniforms for one-half of a game and observe the fans’ reaction. Another method would be to develop a written questionnaire or survey and ask the fans to respond.

21. 3. Develop the Process for Data Collection (continued) The most effective way to gather information about current and potential customer is through personal interviews where fans can actually look at samples of the uniforms and merchandise, but it is also a very expensive and slow process.

22. 4. Collect the Data Using e-mail to contact season ticket holders and obtain their opinion about the uniforms could be an effective method of collecting data. A sample, or a small number representative of the large group, is contacted during the data-collection phase.

23. 5. Analyze and Report the Data After the responses are electronically compiled, the researchers will look for patterns in the data and draw conclusions based on those patterns. Price points are the range of prices charged for a category of merchandise. Noticing which price points sell the best will provide insight on what customers want and the limits on what they are willing to spend. Spreadsheet and database software programs are used to sort the data and place it into graphic representations that busy executives can quickly analyze.

24. 6. Determine a Solution to the Problem Based on the conclusions from the data, recommendations will be made to change the current conditions, such as style of uniforms, the price of the merchandise, or the distribution channels used for merchandise sales.

25. 7. Implement and Evaluate the Results The company must implement the changes and then determine whether they actually result in an effective solution to the problem. If concerns are uncovered, marketers may need to revisit some steps in the marketing research process.

26. The Human Factor In Exploring Marketing Research, William G. Zikmund determined that, people in research and sales may at times conflict in how to solve a problem and use research in a business.

27. Research Sophistication In some businesses, gut feeling and intuition are used in decision making. In others, research is valued and actively used as a decision-making tool. Marketing research can never completely remove uncertainty about the success or failure of a new product or service, but decisions based on sound information can greatly improve the odds of success.

28. Research Sophistication (continued) Marketing Managers need to develop a high level of knowledge about what makes good research and the harm that can come from making decisions based on poor research. The level to which a company can embrace the marketing concept are: –Focusing on long-term customer relationships rather than short-term results –Its knowledge about research will determine the place of marketing research in the company.

29. Reducing Conflict For marketing research to be effective, it must be viewed as useful. The potential exists for managers to want to “shoot the messenger” if the marketing research shows that customers are not happy with the product or service. To reduce the chances of conflict marketing researchers must learn about all of the marketing functions. Reporting research results is an understandable format for managers, and will help them avoid conflicts due to poor communication.

30. Ethical Research Marketing Researchers must maintain high ethical standards and report information accurately and objectively. Conducting fake or biased research and reporting only what the client wants to hear is an example of unethical and perhaps illegal activity. Asking people to provide information for research purposes comes with an obligation to not reveal the specific identities of the respondents.

31. Ethical Research (continued) Confidentially means the researcher has an obligation to not reveal the specific identities of the respondents. The Federal Trade Commission considers it illegal for researchers to pretend they are conducting research, when in fact they are actually disguising a sales tactic to gain access to a prospective customer. The American Marketing Association has a code of ethics that outlines the principles of ethical practice of marketing research and the obligation to protect the customer from “misrepresentation and exploitation under the guise of research”.

32. What’s in It for Me? While people are often reluctant to answer personal questions, they frequently supply the information in return for something they want.

33. Worldwide Data As the global market for sports, entertainment, and recreation continues to grow at a rapid pace, marketers must extend their knowledge of the cultures of potential new customers. The U.S. continues to dominate the export of sports and entertainment programming while importing virtually nothing. For a company to grow, marketing information must be used to make effective decisions to shape product and service offerings for global customers.

34. 5.3: Managing the Information Goals Explain the options for electronic data collection. Discuss the concept of data-driven decisions.

35. Collection of Data The information gathered through marketing research can be very valuable to businesses, but it must be collected, stored, and analyzed before it is of use. The quality and validity of the data collected are also critical to the usefulness of the information.

36. Data Mining The use of powerful computers to “dig up” data needed to make decisions- called data mining- is part of marketing research. Example: ACNielsen uses data mining as a tool to help businesses understand their customers.

37. Cookies Anyone? Electronic marketers gather information about visitors to their web sites through the use of cookies. A cookie is a small data file that is placed on the hard drive of a web site visitor that collects and reports data on the visitor. Knowing customers’ interests and habits allows companies to better focus on what customers want.

38. Customer Privacy Decisions based on data can help customers make the right choices and businesses become more successful, but data must be collected and used with care. The protection of customers’ privacy and their right to know how their personal information is being used are key issues being addressed by industry and federal legislation.

39. Data-Driven Decisions Customers and marketers use data to make decisions. Businesses need information about customers to make sure they are offering the right marketing mix.

40. Ranking the Ads When companies choose to advertise on an Internet search engine, they want their ads to appear when a user conducts a search that includes related keywords. A click-through rate is determined by dividing the number of times an ad is clicked on by the number of times an ad is shown. The effectiveness of an advertisement is immediately known, and the more effective ads are moved up closer to the top of the web page.