Consumer Analysis Flashcards
Market research
formal studies providing valuable insights for specific marketing strategies and decisions (larger companies will have their own research departments)
Market research process
defining the problem and research objectives -> developing research plan for collecting information -> implementing the research plan / collecting and analyzing data -> interpreting and reporting findings
Marketing manager (CMO and staff) vs. Researchers
manager best understands decision for which information is needed; researcher best understands how to obtain information (defining problem and research objectives is often hardest step in research process)
Exploratory objective
marketing research to gather preliminary information that will help define problems and suggest hypotheses (qualitative)
Descriptive objective
marketing research to better describe marketing problems, situations, or markets, such as market potential for product or the demographics and attitudes of consumers (quali-quantitative)
Causal objective
marketing research to test hypotheses about cause-and-effect relationships between variables (quantitative)
Content (research plan)
plan outlines sources of existing data and spells out specific research approaches, contact methods, sampling plants, and instruments that researchers will use to gather data
Form (research plan)
research plan should be presented in written proposal; especially important when research project is large and complex or when it is carried out by outside specialist; proposal should cover management problems addressed, the research objectives, the information to be obtained, and how results will help management’s decision making; should also include estimated research costs.
Secondary data
consist of information that already exists somewhere, having been collected for another purpose (ex. internal data, external sources (Internet search engines, commercial online databases))
Primary data
consist of new information collected for specific purpose at hand
CRM
customer relationship management
Butterflies (Customer Equity Matrix)
short-term loyalty/high profitability: unstable, low frequency interaction, significant investments over short period, difficult to engage them as loyal (aim: exploit them); ex. large private equity funds for a bank
Strangers (Customer Equity Matrix)
short-term loyalty/low profitability: occasional interactions, opportunistic shopping (‘cherry picking’), avoid significant investment (‘pruning twigs’)
Barnacles (Customer Equity Matrix)
long-term loyalty/low profitability: frequent interactions, high expectations, nit picking, increase profitability or leave; ex. low profile savers for banks
True Friends (Customer Equity Matrix)
long-term loyalty/high profitability: fitting demand needs with supply proposition, frequent and worthwhile interactions, aim: concert to “net score promoters”, main focus of company investments