1. Chapter 4- slide 1 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall I t ’s good and good for you Chapter Four Managing Marketing Information to Gain Customer Insights

2. Chapter 4- slide 2 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Case – Dosage Preference Market Insights – Attitudes & Behaviors of Doctors Continued..

3. Chapter 4- slide 3 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Case – Dosage Preference Doctors in African countries tend to give higher dosages particularly of antibiotics. They provide the rationale that their body structure and weight is higher than other nations. However, in many instances the dosage are not according to the recommended mg/Kg body weight regimen. On the contrary, doctors in Vietnam, Cambodia, Sri Lanka tend to prefer lower dosage. The rationale again being the lower body weight of these nation. However, often the doses are under the recommended regimen. Brand Managers treats “perception as reality” and following “out-side in thinking” provide higher strength/SKU in African market & lower in Sri Lanka, Vietnam & Cambodia.

4. Chapter 4- slide 4 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall MINDS ARE INSECURE “HERD MENTALITY”

5. Chapter 4- slide 5 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall For Customer Insights You Need Mindset Rather Than Financial Resources

6. Chapter 4- slide 6 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Chest Conference at Chennai During that period there was a shift of TB treatment from combination of two ingredients to combination of multiple medicine. Top chest physicians of India were available for 3 days.

7. Chapter 4- slide 7 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall MNC - Sponsored $ Small Local Firm - Registered Conducted exploratory research on Doctors’ attitude regarding multiple ingredient combination. On the basis of findings, launched 2 new products. Became forerunner in TB sub-category.

8. Chapter 4- slide 8 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Market Insights What are the attitudes & behaviors of patients towards seeking treatment, compliance, purchasing power, brand and competitors?

9. Chapter 4- slide 9 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

10. Chapter 4- slide 10 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall MINDS DON’T CHANGE - EASILY

11. Chapter 4- slide 11 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Attitude & Behavior of Patients towards…

12. Chapter 4- slide 12 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Attitude & Behavior of Patients towards… CaC 1000 1.4 bn Surbex Z 0.8 bn

13. Chapter 4- slide 13 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Panadol Target Market Case

14. Chapter 4- slide 14 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Panadol - Guatemala Insights, Strategy And The Idea: The objective was to position panadol ultra in rural areas of guatemala. Most of the population is comprised of women from mayan descent with high levels of illiteracy, as the brand that eliminates headaches. Audience who couldn’t read or write.

15. Chapter 4- slide 15 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Panadol - Guatemala Visual representation of the benefit Medium that would feel natural to them, something habitual in their daily lives; carrying things on their head. Sponge in the shape of a panadol ultra pill, to be used as a cushion and help them reduce the discomfort and headaches. Women became walking ads for panadol ultra.

16. Chapter 4- slide 16 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Panadol - Guatemala Results: The sales of panadol ultra increased by 45% in the targeted rural areas, becoming the only brand that has been able to conquer a market that until then had been impossible to penetrate.

17. Chapter 4- slide 17 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Know the Market Market Size & Growth Rate Therapeutic Category Size & Growth Rate Number of Patients (IMS Blue Book) Absolute & Relative Market Potential Prescription Trends (IMS Blue Book) Brand Share & Growth Rate Key Competitor’s Share & Growth Rate

18. Chapter 4- slide 18 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Role of Market Research Secondary Research (Internet, Public Info, etc) Syndicated Research (IMS, Sals, etc) Primary Research: –Third Party Research Firm (AC Neilson, etc) –Through Sales Team

19. Chapter 4- slide 19 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall WHAT PHYSICIANS THINK OF VARIOUS BRANDS IN A CATEGORY WHAT PHYSICIANS THINK OF VARIOUS BRANDS IN A CATEGORY PERCEPTUAL MAPPING

20. Chapter 4- slide 20 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

21. Chapter 4- slide 21 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Corporate Brands Perceptual Map QUALITY COST -VE COST +VE

22. Chapter 4- slide 22 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

23. Chapter 4- slide 23 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall High Quality High Price Low Quality Low Price Ruling IV Omezol IV Teph IV Noctis IV Helezol IV Omega IV Opepzol IV Ranulcid IV Purple IV Zopent Esorid

24. Chapter 4- slide 24 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Perceptual Map Anti-Ulcerants

25. Chapter 4- slide 25 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Perceptual Map – Rocephin & Competitors Physician Ranking of Attributes Very goo dGood Satisfac tory Non- satisfact ory Efficacy     Safety  Patient adherence to therapy       Innovativeness        Company image     Cost   Rocephi n  Claforan  Oxidil Rocephin perceived to be “Very Good” across all 5 attributes followed by Claforan and Oxidil Source: KOL feedback through Survey  Cefxone Key Points

26. Chapter 4- slide 26 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

27. Chapter 4- slide 27 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall LIKERT SCALE

28. Chapter 4- slide 28 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

29. Chapter 4- slide 29 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Learning Objectives Marketing Information and Customer Insights Assessing Marketing Information Needs Developing Marketing Information Marketing Research Analyzing and Using Marketing Information Other Marketing Information Considerations Topic Outline

30. Chapter 4- slide 30 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Marketing Information and Customer Insights Fresh and deep insights into customers needs and wants Difficult to obtain –Not obvious –Customer’s unsure of their behavior Better information and more effective use of existing information Customer Insights are:

31. Chapter 4- slide 31 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Marketing Information and Customer Insights Companies are forming customer insights teams –Include all company functional areas –Collect information from a wide variety of sources –Use insights to create more value for their customers Customer Insights

32. Chapter 4- slide 32 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Marketing Information and Customer Insights Marketing information system (MIS) consists of people and procedures for: –Assessing the information needs –Developing needed information –Helping decision makers use the information for customer Marketing Information Systems (MIS)

33. Chapter 4- slide 33 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Marketing Information System

34. Chapter 4- slide 34 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Assessing Marketing Information Needs MIS provides information to the company’s marketing and other managers and external partners such as suppliers, resellers, and marketing service agencies

35. Chapter 4- slide 35 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Assessing Marketing Information Needs Balancing what the information users would like to have against what they need and what is feasible to offer Characteristics of a Good MIS User’s Needs MIS Offerings

36. Chapter 4- slide 36 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Developing Marketing Information Internal dataMarketing intelligenceMarketing research Marketers obtain information from

37. Chapter 4- slide 37 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Developing Marketing Information Internal databases are electronic collections of consumer and market information obtained from data sources within the company network Internal Data

38. Chapter 4- slide 38 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Developing Marketing Information The systematic collection and analysis of publicly available information about consumers, competitors and developments in the marketplace Competitive Marketing Intelligence

39. Chapter 4- slide 39 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Developing Marketing Information Marketing Research Marketing research is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization

40. Chapter 4- slide 40 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Developing Marketing Information Steps in the Marketing Research Process

41. Chapter 4- slide 41 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Developing Marketing Information Marketing Research Defining the Problem and Research Objectives Exploratory researchDescriptive researchCausal research

42. Chapter 4- slide 42 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Developing Marketing Information Outlines sources of existing data Spells out the specific research approaches, contact methods, sampling plans, and instruments to gather data Marketing Research Developing the Research Plan

43. Chapter 4- slide 43 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Developing Marketing Information Management problem Research objectivesInformation needed How the results will help management decisions Budget Marketing Research Written Research Plan Includes:

44. Chapter 4- slide 44 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Developing Marketing Information Secondary data consists of information that already exists somewhere, having been collected for another purpose Marketing Research Developing the Research Plan

45. Chapter 4- slide 45 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Developing Marketing Information Secondary Data Advantages CostSpeed Could not get data otherwise Disadvantages CurrentRelevantAccuracyImpartial

46. Chapter 4- slide 46 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Developing Marketing Information Primary data consists of information gathered for the special research plan Marketing Research Developing the Research Plan

47. Chapter 4- slide 47 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Developing Marketing Information Planning Primary Data Collection Research approaches Contact methodsSampling plan Research instruments Marketing Research

48. Chapter 4- slide 48 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Developing Marketing Information Observational research involves gathering primary data by observing relevant people, actions, and situations Ethnographic research involves sending trained observers to watch and interact with consumers in their natural environment Market Research Research Approaches

49. Chapter 4- slide 49 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Developing Marketing Information Survey research is the most widely used method and is best for descriptive information—knowledge, attitudes, preferences, and buying behavior Flexible People can be unable or unwilling to answer Gives misleading or pleasing answers Privacy concerns Market Research Research Approaches

50. Chapter 4- slide 50 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Developing Marketing Information Experimental research is best for gathering causal information—cause-and-effect relationships Market Research Research Approaches

51. Chapter 4- slide 51 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Developing Marketing Information Strengths and Weakness of Contact Methods MailTelephonePersonalOnline FlexibilityPoorGoodExcellentGood Quantity of data collected GoodFairExcellentGood Control of interviewer effects ExcellentFairPoorFair Control of sample FairExcellentGoodExcellent Speed of data collection PoorExcellentGoodExcellent Response ratePoor Good CostGoodFairPoorExcellent

52. Chapter 4- slide 52 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Developing Marketing Information Focus Groups –Six to 10 people –Trained moderator –Challenges Expensive Difficult to generalize from small group Consumers not always open and honest Marketing Research Contact Methods

53. Chapter 4- slide 53 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Developing Marketing Information Online marketing research Internet surveys Online panels Online experiments Click-stream data Online focus groups Marketing Research Contact Methods

54. Chapter 4- slide 54 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Developing Marketing Information Advantages Low cost Speed Higher response rates Good for hard to reach groups Marketing Research Online Research

55. Chapter 4- slide 55 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Developing Marketing Information Sample is a segment of the population selected for marketing research to represent the population as a whole –Who is to be studied? –How many people should be studied? –How should the people be chosen? Marketing Research Sampling Plan

56. Chapter 4- slide 56 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Developing Marketing Information Probability Sample Simple random sampleEvery member of the population has a known and equal chance of selection Stratified random sample The population is divided into mutually exclusive groups and random samples are drawn from each group Cluster (area) sampleThe population is divided into mutually exclusive groups and the researcher draws a sample Nonprobability Sample Convenience sampleThe research selects the easiest population members Judgment sampleThe researcher uses their judgment to select population members Quota sampleThe researcher finds and interviews a prescribed number of people in each of several categories Marketing Research Sampling Plan – Types of Samples

57. Chapter 4- slide 57 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Developing Marketing Information Marketing Research Research Instruments Questionnaires Most common Administered in person, by phone, or online Flexible Research must be careful with wording and ordering of questions

58. Chapter 4- slide 58 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Developing Marketing Information Closed-end questions include all possible answers, and subjects make choices among them –Provide answers that are easier to interpret and tabulate Open-end questions allow respondents to answer in their own words –Useful in exploratory research Marketing Research Research Instruments—Questionnaires

59. Chapter 4- slide 59 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Developing Marketing Information Mechanica l devices People meters Checkout scanners Neuro- marketing Marketing Research Research Instruments

60. Chapter 4- slide 60 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Developing Marketing Information Collecting the informationProcessing the informationAnalyzing the informationInterpret findingsDraw conclusionsReport to management Marketing Research Implementing the Research Plan

61. Chapter 4- slide 61 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Analyzing and Using Marketing Information Managing detailed information about individual customers and carefully managing customer touch points to maximize customer loyalty. Customer Relationship Management (CRM)

62. Chapter 4- slide 62 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Analyzing and Using Marketing Information Customer purchases Sales force contacts Service and support calls Web site visits Satisfaction surveys Credit and payment interactions Research studies Customer Relationship Management Touchpoints

63. Chapter 4- slide 63 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Distributing and Using Marketing Information Information distribution involves entering information into databases and making it available in a time-useable manner Intranet provides information to employees and other stakeholders Extranet provides information to key customers and suppliers

64. Chapter 4- slide 64 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Other Marketing Information Considerations Marketing Research in Small Businesses and Nonprofit Organizations International Market ResearchPublic Policy and Ethics Customer privacy Misuse of research findings