Ch 7 - Marketing Research: From Customer Insights to Actions Flashcards
Identify the reason for conducting marketing research.
To be successful, products must meet the wants and needs of potential customers. So marketing research reduces risk by providing the vital information to help marketing managers understand those wants and needs and translate them into marketing actions.
Describe the five-step marketing research approach that leads to marketing actions.
Marketing researchers engage in a five-step decision-making process to collect information that will improve marketing decisions. The first step is to define the problem, which requires setting the research objectives and identifying possible marketing actions. The second step is to develop the research plan, which involves specifying the constraints, identifying data needed for marketing decisions, and determining how to collect the data. The third step is to collect the relevant information, which includes considering pertinent secondary data (both internal and external) and primary data (by observing and questioning consumers) as well as using information technology and data mining to trigger marketing actions. The fourth step is to develop findings from the marketing research data collected. This involves analyzing the data and presenting the findings of the research. The fifth and last step is to take marketing actions, which involves making and implementing the action recommendations.
Explain how marketing uses secondary and primary data.
Secondary data have already been recorded prior to the start of the project and consist of two parts: (a) internal secondary data, which originate from within the organization, such as sales reports and customer comments, and (b) external secondary data, which are created by other organizations, such as the U.S. Census Bureau (which provides data on the country’s population, manufacturers, retailers, and so on) or business and trade publications (which provide data on industry trends, market size, etc.). Primary data are collected specifically for the project and are obtained by either observing or questioning people.
Discuss the uses of observations, questionnaires, panels, experiments, and newer data collection methods.
Marketing researchers observe people in various ways, such as electronically using Nielsen people meters to measure TV viewing behavior or personally using mystery shoppers or ethnographic techniques. A recent electronic innovation is neuromarketing—using high-tech brain scanning to record the responses of a consumer’s brain to marketing stimuli like packages or TV ads. Questionnaires involve asking people questions (a) in person using interviews or focus groups or (b) via a questionnaire using a telephone, fax, print, e-mail, or Internet survey. Panels involve a sample of consumers or stores that are repeatedly measured through time to see if their behaviors change. Experiments, such as test markets, involve measuring the effect of marketing variables such as price or advertising on sales. Collecting data from social networks like Facebook or Twitter is increasingly important because users can share their opinions about products and services with countless “friends” around the globe.
Explain how information technology and data mining lead to marketing actions.
Today’s marketing managers are often overloaded with data—from internal sales and customer data to external data on TV viewing habits or grocery purchases from the scanner data at checkout counters. Information technology enables this massive amount of marketing data to be stored, accessed, and processed. The resulting databases can be queried using data mining to find statistical relationships useful for marketing decisions and actions.
Describe three approaches to developing a company’s sales forecast.
One approach uses the subjective judgments of the decision maker, such as direct or lost-horse forecasts. A direct forecast involves estimating the value to be forecast without any intervening steps. A lost-horse forecast starts with the last known value of the item being forecast, and then lists the factors that could affect the forecast, assesses whether they have a positive or negative impact, and makes the final forecast. Surveys of knowledgeable groups, a second method, involve obtaining information such as the intentions of potential buyers or estimates provided by the salesforce. Statistical methods involving extending a pattern observed in past data into the future are a third approach. The best-known statistical method is linear trend extrapolation.
constraints
In a decision, the restrictions placed on potential solutions to a problem.
data
The facts and figures related to the problem that are divided into two main parts: secondary data and primary data.
information technology
Involves operating computer networks that can store and process data.
marketing research
The process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions.
measures of success
Criteria or standards used in evaluating proposed solutions to the problem.
observational data
Facts and figures obtained by watching, either mechanically or in person, how people actually behave.
primary data
Facts and figures that are newly collected for the project.
questionnaire data
Facts and figures obtained by asking people about their attitudes, awareness, intentions, and behaviors.
sales forecast
The total sales of a product that a firm expects to sell during a specified time period under specified environmental conditions and its own marketing efforts.
secondary data
Facts and figures that have already been recorded prior to the project at hand.
What is marketing research?
Marketing research is the process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions.
What is the five-step marketing research approach?
The five-step marketing research approach provides a systematic checklist for making marketing decisions and actions. The five steps are: (1) define the problem; (2) develop the research plan; (3) collect relevant information (data); (4) develop findings; and (5) take marketing actions.
What are constraints, as they apply to developing a research plan?
Constraints in a decision are the restrictions placed on potential solutions to a problem, such as time and money. These set the parameters for the research plan—due dates, budget, etc.
What is the difference between secondary and primary data?
Secondary data are facts and figures that have already been recorded prior to the project at hand, whereas primary data are facts and figures that are newly collected for the project.
What are some advantages and disadvantages of secondary data?
Advantages of secondary data are the time-savings, the low cost, and the greater level of detail that may be available. Disadvantages of secondary data are that the data may be out of date, unspecific, or have definitions, categories, or age groupings that are wrong for the project at hand.
What is the difference between observational and questionnaire data?
Observational data are facts and figures obtained by watching, either mechanically or in person, how people actually behave. Questionnaire data are facts and figures obtained by asking people about their attitudes, awareness, intentions, and behaviors.
Which type of survey provides the greatest flexibility for asking probing questions: mail, telephone, or personal interview?
personal interview (or individual/depth interview)
What is the difference between a panel and an experiment?
A panel is a sample of consumers or stores from which researchers take a series of measurements. An experiment involves obtaining data by manipulating factors under tightly controlled conditions to test cause and effect, such as changing a variable in a customer purchase decision (marketing drivers) and seeing what happens (increase/decrease in unit or dollar sales).
How does data mining differ from traditional marketing research?
Data mining is the extraction of hidden predictive information from large databases to find statistical links between consumer purchasing patterns and marketing actions. Marketing research identifies possible drivers and then collects data.
In the marketing research for Tony’s Pizza, what is an example of (a) a finding and (b) a marketing action?
(a) Figure 7-6A depicts annual sales from 2009 to 2012; the finding is that annual sales are relatively flat, rising only about 5 million units over the 4-year period. (b) Figure 7-6D shows a finding (the decline in pizza consumption) that leads to a recommendation to develop an ad targeting children 6 to 12 years old (the marketing action).
What are the three kinds of sales forecasting techniques?
They are: (1) judgments of the decision maker; (2) surveys of knowledgeable groups; and (3) statistical methods.
How do you make a lost-horse forecast?
To make a lost-horse forecast, begin with the last known value of the item being forecast, list the factors that could affect the forecast, assess whether they have a positive or negative impact, and then make the final forecast.
