Chapter 4 Flashcards
Define marketing research
The process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions.
What is a decision
a conscious choice from among two or more alternatives
What are the 5 steps in the basic market research process
- define the problem
- develop the research plan
- collect relevant information
- develop findings
- take marketing actions
Describe step 1 (define the problem) of market research process
- clearly define the problem, issue, or opportunity, an to clarify the research objectives
- Set the research objectives and Identify possible marketing actions
what are research objectives
these are specific, measurable goals the decision maker seeks to achieve in conducting the marketing research
what are measures of success
Criteria or standards used in evaluating proposed solutions to the problem.
Describe step 2 (develop the research plan) of market research process
- this requires that researcher:
- specify the constraints on the marketing research activity
- identify the data needed for marketing actions
- determine how to collect the data
Define constraints
In a decision, the restrictions placed on potential solutions to a problem
what are the two key elements to consider when deciding how to collect the data
- concepts - ideas about products or services (to find out about customer reactions to a potential new product, researches develop a new product concept which is a picture or verbal description of a product or service the firm might offer for sale)
- methods - approaches that can be used to collect data or solve all or part of a problem (can use sampling or statistical inference)
Describe step 3 (collect relevant information) of market research process
collecting information to make a rational, informed marketing decision sometimes simply means using your knowledge to decide immediately. At other times it entails collecting an enormous amount of information at great expense.
Describe data
The facts and figures related to the project that are divided into two main parts: secondary data and primary data.
What is secondary data
Facts and figures that have already been recorded by a third party
What is primary data
Data that is original and specifically collected for a project.
describe secondary data internal - marketing input data
relate to the effort expanded to make sales.
describe secondary data internal - marketing outcome data
relates to the result of the marketing efforts
What are syndicated panel data
external secondary data - marketing research companies pay households and businesses to record all their purchases using a paper or electronic diary
What are the advantages of secondary data
- the tremendous time savings because that data has already been collected and published or exists internally
- the low cost, such as free or inexpensive census reports
What are the disadvantages of secondary data
- secondary data may be out of date
- definitions or categories might not be quite right for a researchers project
- because the data has been collected for another purpose they may not be specific enough for the project.
what should generally be obtained first, secondary or primary data
secondary data
what is ethnographic research
specialized observational approach in which trained observers seek to discover subtle behavioral and emotional reactions as consumers encounter products in their natural use environment –> ex. researching consumers in their kitchens
How is observational data obtained
by watching how people actually behave, either in person or by using mechanical (like electronic), personal (watching consumers in person) or neuromarketing methods (observe responses to unconscious stimuli)
primary data collection is divided into
idea generation methods, idea evaluation methods
Describe idea generation methods
collecting data to generate ideas
–> can use in depth interviews - which are Detailed interviews where a researcher questions an individual at length in a free-flowing conversational style in order to discover information that may help solve a marketing problem.
What are focus groups
A qualitative research technique where a small group of people (usually six to ten) meet for a few hours with a trained moderator to discuss predetermined areas. these are present, past, or prospective customers
Describe idea evaluation methods
the marketing researcher tries to test ideas discovered earlier to help the marketing manager recommend marketing actions
- these methods often involve conventional questionnaires using personal, amil, telephone, and online surveys of a large sample of past present or prospective consumers
what are open ended questions
allow respondents to express opinions, ideas, or behaviors in their own words - it captures the voice of respondents
What are closed end or fixed alternative questions
require respondents to select one or more responses from a set of predetermined options
dichotomous quesion
yes or no
semantic differential scale
five point scale in which the opposite ends have one or two word adjectives that have opposite meanings
likert scale
extent to which they agree or disagree
describe a panel
A large sample of respondents that voluntarily complete questionnaires on a regular basis so that researchers can assess changes in behaviour and attitudes.
describe an omnibus survey
The voluntary participation of respondents in routine research surveys that allow marketers to add a small number of questions to an existing survey to receive cost-effective data.
what is a marketing experiment
In marketing, changing a variable involved in a customer purchase to find out what happens.
- responding variable is usually marketing mix elements (these are marketing drivers)
- independent variable is usually change in the purchases
A/B testing or split testing
marketing experiment wherein you split your audience to test a number of variations of a campaign an determine which performs better
Advantages and disadvantages of primary data
ad - more flexible, more specific to problem being studied
dis- primary data far more costly and time consuming to collect than secondary data
Describe step 4 (Develop findings) in the basic market research process
- analyzing data often involves very sophisticated and complex methods. Examples include big data, data analytics, ai, data mining, and predictive modelling
Describe big data
broad term used to describe large amounts of data collected from a variety of sources and analyzed with an increasingly sophisticated set of tech.
Define information technology
Includes all of the computing resources that collect, store, and analyze data.
We live today in an era of data ______
deluge (flood) - the challenge facing managers is not data collection or storage, but how to transform the huge amount of data into useful information
data is transformed into useful information using
data analytics
what is data visualization
the presentation of the results of the analysis
what is an intelligent enterprise
an organization that successfully converts data into useful information that answers marketing questions and leads to effective marketing actions
data mining definition
the processing of large amounts of data using sophisticated software to find insightful correlations and patterns that lead to better business decisions.
what is predictive modelling
marketers can foresee consumer behavior Based on statistical models that use data mining and probability analysis to foretell outcomes
Define analytics
the process of taking metrics data and applying smart thinking and tech to gain actionable insights that can help make better business decisions
An analytics platforms shows what
where the company is today, answers questions, provides customer insights, and predicts patterns that can improve marketing performance
What is descriptive analytics
A type of analytics that focuses on what has happened.
–> includes web analytics - The measurement and analysis of website data, looking at elements such as page views, time on site, bounce rate, new visitors, returning visitors, and referral traffic.
–> includes social analytics - The real-time measurement, interaction, and analysis of social media to assess social media campaign performance, message resonation and amplification, consumer sentiment, and common themes.
–> social listening - Research that monitors public online consumer conversations on social media sites such as social networks, blogs, and forums.
–>includes RFM analytics - The rating of customers on the basis of how recently products were purchased (recency), how often products were purchased (frequency), and the dollar value of the transactions (monetary value).
What is predictive analytics
The combination of data from varied sources to reveal patterns that are modelled to predict what might happen in the future.
metrics
numerical data that is collected and grouped to track performance
brand development index (BDI)
An index that shows how well a brand’s sales are developed in a region relative to the region’s population size.
Describe step 5 (take marketing actions) in the basic market research process
- someone has to identify marketing actions, put them into effect, and monitor how the decisions turn out
-evaluate the decision itself and the decision process used
sales forecast
The total number of a product that a firm expects to sell during a specified time period under specified environmental conditions and its own marketing efforts.
Sales forecasting techniques
- judgements of the decision maker - direct or lost horse forecast
- surveys of knowledgeable groups - buyers intentions forecast survey, or salesforce survey forecast
- statistical methods - trend extrapolation
direct forecast
estimating the value to be forecast without an intervening steps.
ex. how many litres of milk should i buy
lost horse forecast
start with the last known value of the item being forecast, listing the factors that could affect the forecast, assessing whether they a have a positive or negative impact, and making the final forecast
buyers intention survey forecast
asks prospective customers if they are likely to buy the product during some future time period
trend extrapolation
involves extending a pattern observed in past data into the future. When described with a straight line it is linear trend extrapolation
