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
consists of people and procedures dedicated to assessing information needs, developing the needed information, and helping decision makers use the information to generate and validate actionable customer and market insights.
Number of components in a MIS
Data (internal and external)
Types of Market Research
Primary: information collected for the specific purpose at hand
Secondary: information that already exists somewhere, having been collected for another purpose
Data mining
FOUR OBJECTIVES:
- Customer acquisition
- Customer retention
- Customer abandonment
- Market basket analysis
Goal: seeking commonalities among customers
Market research process/steps
- Define the problem and research objectives
Primary research
Exploratory and conclusive
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, survey, experimental
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
Purchase decision influences (socio-cultural)
- Culture
- Subculture
- Social class
- Peer groups
- Reference groups
- Gender roles
Buyer adoption process stages
- Awareness
The consumer becomes aware of the new product but lacks information about it. - Interest
The consumer seeks information about the new product - Evaluation
The consumer considers whether trying the new product makes sense - Trial
The consumer tries the new product on a small scale to improve his or her estimate of its value. - Adoption
The consumer decides to make full and regular use of the new product.
Diffusion of innovation
How and at what rate new technologies spread
5 factors that impact success:
1. Relative advantage
2. Compatibility with existing values & practices
3. Complexity - how easy for customers
4. Trial ability - how easily sampled/experienced
5. Observability - how visible to view
Diffusion of innovation - chart
Innovators (2.5%) –> early adopters (13.5%) –> early majority (34%) –> late majority (34%) –> laggards (16%)
4 Types of B2B Markets
- Producers
- Resellers
- Government
- Not for profits
Market Segmentation/Fragmentation
Dividing the target market into many different subgroups based on shared features. Developing solutions catered to these groups.
Variables:
- Demographic
- Behavioral
- Psychographic
- Geographical
5 Step Process Buying Decision
- Need recognition
Buyer recognizes a problem or need - Information search
- Evaluation of alternatives
- Product choice/purchase
- Post-purchase behavior
Opinion leader
A person within a reference group who, because of special skills, knowledge, personality, or other characteristics, exerts social influence on others
Costs are involved in …… information
Obtaining, analyzing, storing, delivering
Data
Hardware/software to store, analyze, create reports
Internal: collections of consumer and market information obtained from data sources within the company’s network.
External: surveys, audits, syndicated suppliers, trade sources, etc
Sample
segment of the population selected for marketing research to represent the population as a whole.
Customer insights
Fresh marketing information-based
understandings of customers and the
marketplace that become the basis for
creating customer value, engagement,
and relationships.
Exploratory research
Marketing research to gather
preliminary information that will
help define problems and suggest
hypotheses
Causal research
Marketing research to test hypotheses about cause-and-effect relationships
Observational research (primary)
Gathering primary data by observing
relevant people, actions, and situations
Survey research (primary)
Gathering primary data by asking
people questions about their
knowledge, attitudes, preferences, and
buying behavior.
Experimental research (primary)
Gathering primary data by selecting
matched groups of subjects, giving
them different treatments, controlling
related factors, and checking for
differences in group responses.
Primary Research Contact Methods
- Mail questionnaires: can be used to collect
large amounts of information at a low cost per respondent - Telephone interviewing: gathering information quickly, and it provides greater flexibility than mail questionnaires
- Interviewing: individual and group
- Focus group interviewing: Personal interviewing that involves inviting small groups of people to gather for a few hours with a trained interviewer to talk about a
product, service, or organization. The interviewer “focuses” the group discussion on important issues.
