Week 3 - Marketing Analytics

Question 1

Customer insights

Answer 1

Insights about customer behaviors, preferences, and needs based on data.

They can be used to improve products, services, and customer support, and to guide marketing strategies and resource allocation.

Question 2

Marketing information system

Answer 2

The people and processes involved in:
1) Assessing what information a company needs for marketing
2) Producing that information
3) Aiding decision makers in the use of that information.

Question 3

Big Data

Answer 3

Large sets of data that are generated by technology which collects, stores and analyses information.

This information can be accessed by businesses who can interpret the information and use it to aid marketing decisions.

Question 4

Describe different tools available to facilitate marketing information systems and research

Answer 4

Internal databases: collections of consumer and market information that a company gathers internally.

Marketing intelligence: publicly available data about consumers, competitors
and the marketing environment.

Marketing research
1: Qualitative research: explores and provides deeper insights into real-world problems
- In-depth interviews, focus groups
2: Quantitative research: the process of collecting and analyzing numerical data
- Survey

Research instruments
- Questionnaires (online or paper)
- Mechanical instruments (purchase scanners, eye trackers)

Question 5

How would a company research something? Apply the marketing research process.

Answer 5

1: Define the problem and research objectives.

a) Exploratory research - Get preliminary information; define a problem; generate a hypothesis.
E.g. Focus groups or in depth interviews

b) Descriptive research - Obtain information for a more focused question.
E.g. Surveys or Observational studies
(on a scale of 1-10…) this gives us a general idea of satisfaction about something, but we need to do deeper research in part 2.

c) Causal research - Test hypothesis.
E.g. Lab or field experiments

2: Develop the research plan for collecting the information.

a) Secondary data - already available information which is cheap and fast but not tailored to your specific needs.
E.g. social media or online articles
b) Primary data - data you need to create yourself which is more expensive and time consuming but tailored to your specific needs.
c) Sampling
i) Probability samples
- Simple random sample
- Stratified random sample
- Cluster (area) sample
ii) Nonprobability samples
- Convenience sample (just ask your own students or only experts)

3: Implement the research plan and collect information.
Who’s going to obtain the data?
- Use pre-existing information on the internal database
- Use your own team
- Hire someone

4: Interpret the findings
- The managers are the ones with the expertise and make decisions based on the findings in the end.

Question 6

Research method designs based on marketing problems

Answer 6

Problem: want to analyse opportunities or identify issues
> Use exploratory research to identify motivations (qualitative)
> Focus groups; Interviews

Problem: want to identify target profiles or estimate demand (quantitative)
> Use descriptive research
> Surveys

Problem: want to create or evaluate strategy (quantitative)
> Use causal research
> Field experiments

Question 7

Data collection methods

Answer 7

1: Observational research
Observing relevant people, actions, and situations:
E.g. customers, mystery shoppers, RFID in grocery carts

2: In depth interviews
Individually asking customers a set of questions and following up with questions to reach deeper motivations.

3: Focus groups
Small groups talk to a trained interviewed about a focused topics. Open-ended discussion, moderator ensures relevant issues are discussed. Generates new ideas, uncovers needs, concept testing.

4: Surveys. Collect large amount of data in little time. Easy to create and administer. Low cost per participant.

5: Experimental research
Goal is to establish cause and effect relationships (test variables).
- Isolate and observe the effects of changing independent variables (e.g., price, promotion) on dependent variables (e.g, sales)

Question 8

Customer relationship management

Answer 8

Analysing interactions with customers to improve relationships and customer loyalty.