lecture 5+6 Flashcards
To make good decisions, marketers must have info that is:
- Accurate
- Up to date
- Relevant
Key Market Research Issues
- Know what customers want (“unmet needs”)
- Know when customers want it
- Know where customers want it
- Know what the competition is doing
Marketing Info Systems
- Process developed by a firm to continuously gather, sort, analyze, store/distribute relevant and timely marketing information
Number of components in a MIS
DATA : hardware/software to store, analyze, create reports
Internal sources: sales reports, shipment data, work in progress, existing research, etc.
External sources: surveys, audits, syndicated suppliers, trade sources, etc.
Types of Market Research
- Secondary (anyone can access): already exists from other sources; fast, cheap, readily available
- Primary/custom: studies designed/executed for specific customer segment, client or brand, with specific objective
- methods: surveys, interviews, focus groups, structured tests
Data mining
FOUR OBJECTIVES:
- Customer acquisition
- Customer retention
- Customer abandonment
- Market basket analysis
Goal: seeking commonalities among customers
Market research process
- Define the problem/opportunity/objectives
What questions do we have? What info do we seek?
- Specify research objectives
-Identify population of interest
- Place problem in environmental context - Research design
What kind of info sought and how to procure it
- Secondary or primary data
Primary research
Exploratory: create hypotheses and insights - generally qualitative - leads to additional, often larger, studies
Conclusive (two types): prove/disprove exploratory generated hypotheses
Primary research - types of research designs
Type 1: conclusive descriptive: used to describe audience, environment, etc. (the “what” – painting a picture of the audience)
Type 2: conclusive causal: used to understand cause and effect via “experiments”; dependent/independent variables (the “why”)
Primary Data Collection Methods
Observational : gathering primary data by observing relevant people, actions, and situations.
Survey: gathering primary data by asking people questions about their knowledge, attitudes, preferences, and buying behavior (MOST COMMONLY USED)
Experimental: selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses.
Data quality
2 Key Criteria: is it valid? Is it reliable?
- The sample: small portion that reflects characteristics of the target population
- Collecting data: usefulness of data is only as good as quality of collection process
- Data analysis + interpretation: analyzing raw data and interpreting creates information
- Present the findings: key learnings and recommendations
Consumer behavior
Why people buy?
- Buying = process people go through to pick, purchase, use, and dispose of products
- People buy products to obtain items that satisfy customer needs + wants
Buying decision process background
- Level of involvement (how severe are the consequences of the purchase)
- Level of perceived risk
Types of consumer buying decisions
Routine response behavior (little to no thought - necessities, i.e. toilet paper)
Limited decision making (moderate effort - customer needs to collect data, i.e. clothing)
Extensive decision making (lots of involvement/research needed - i.e. house, car)
7 Purchase Decision influences (internal)
- Perception
- Motivation (Maslow’s Hierarchy)
- Learning
- Attitude
- Personality
- Age
- Lifestyles
