Lecture Marketing management: Chapter 3 – Nguyễn Thị Trang Nhung

Lecture Marketing management - Chapter 3: Conducting marketing research presentation of content: What is marketing research, types of marketing research firms, types of research, research approaches, qualitative techniques,... And other contents.

1 Conducting Marketing Research Chapter Questions    What constitutes good marketing research? What are the best metrics for measuring marketing productivity? How can marketers assess their return on investment of marketing expenditures? Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 4-2 Introduction  The marketing environment is changing:  From local to national to global marketing  From buyer needs to buyer wants  From price to nonprice competition  The need for real-time market information is greater than at any time in the past Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 1-3 Venus Razor Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 4-4 What is Marketing Research? Marketing research is the systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing the company Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 4-5 Types of Marketing Research Firms Syndicated Firms gather consumer and trade information, which they sell for a fee Nielsen Media research These firms are hired to carry out specific project Custom They design research and report finding Providing specialized research services Specialty-line They sell field interviewing services to other firms Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 4-6 The Marketing Research Process Define the research problem and objectives Develop research plan Collect information Analyze information Present findings Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 4-7 Step 1: Define the Problem  Define the problem: What is research problem and Why they conduct the research? Defining research problem should not be broadly or narrowly A case study: American Airlines is constantly looking for new ways to serve its passengers One manager came up with the idea of offering phone service The other manager got excited about this idea The marketing manager volunteered to some preliminary research He conducted a major telecommunications company to find out the cost of providing this services on B 747 coast to coast flights The telecommunications company said that the equipment would cost the airline about $1000 a flight The airline could break even if it charged $25 a phone call and at least 40 passengers made calls during the flight The marketing manager then asked the company’s marketing research manager to find out how air travelers would respond to this new service Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 4-8 Step 1: Define the Problem    “Find out everything about air traveler’s needs” “Find out if enough passengers aboard a B747 flying between the East Coast and West Coast would be willing to pay 25 USD to make a phone call so that AA would break even on the cost of offering this service “Will offering an in-flight phone service create incremental preference and profit for AA to justify its cost again other possible investments American might make?” Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 4-9 Step 1: Define the Problem Research objective statement:  What are the main reasons that airline passengers place phone calls while flying? What kinds of passengers would be the most likely to make calls? How many passengers are likely to make calls given different piece levels? How many extra passengers might choose American because of new service? How much long-term good will this service add to AA image? How important is phone service relative to improving other factor such as flight schedules, food quality and baggage handdling? Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 4-10 What is a Marketing Decision Support System (MDSS)?  A marketing decision support system is a coordinated collection of data, systems, tools, and techniques with supporting hardware and software by which an organization gathers and interprets relevant information from business and environment and turns it into a basis for marketing action Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 4-38 Barriers Limiting the Use of Marketing Research      A narrow conception of the research Uneven caliber of researchers Poor framing of the problem Late and occasionally erroneous findings Personality and presentational differences Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 4-39 Market Research Can Fail Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 4-40 Table 4.3 Characteristics of Good Marketing Research  Scientific method: Effective marketing research uses the principles of the scientific method:careful observation,formulation ofhypotheses,prediction,and testing   Research creativity: Multiple methods: using two or three methods to increase confidence in the result  Interdependence: of model and data Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 4-41 Table 4.3 Characteristics of Good Marketing Research  Value and cost of information: Marketing researchers show concern for estimating the value of information against its cost Costs are typically easy to determine, but the value of research is harder to quantify It depends on the reliability and validity of the findings and management’s willingness to accept and act on those findings   Healthy skepticism Ethical marketing Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 4-42 What are Marketing Metrics? Marketing metrics are the set of measures that helps marketers quantify, compare, and interpret marketing performance Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 4-43 Table 4.4 Marketing Metrics External         Awareness Market share Relative price Number of complaints Customer satisfaction Distribution Total number of customers Loyalty Internal          Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall Awareness of goals Commitment to goals Active support Resource adequacy Staffing levels Desire to learn Willingness to change Freedom to fail Autonomy 4-44 What is Marketing-Mix Modeling? Marketing-mix models analyze data from a variety of sources, such as retailer scanner data, company shipment data, pricing, media, and promotion spending data, to understand more precisely the effects of specific marketing activities Marketing-mix modeling focuses on incremental growth instead of baseline sales or long-term effects The integration of important metrics such as customer satisfaction, awareness, and brand equity into marketing-mix modeling is limited Marketing-mix modeling generally fails to incorporate metrics related to competitors, the trade, or the sales force Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 4-45 Figure 4.2 Marketing Measurement Pathway Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 4-46 Marketing Measurement Pathway •The customer metrics pathway looks at how prospects become customers from awareness to preference to trial to repeat purchase, or some less linear model This area also examines how the customer experience contributes to the perception of value and competitive advantage • The unit metrics pathway reflects what marketers know about sales of product/service units—how much is sold by product line and/or by geography; the marketing cost per unit sold as an efficiency yardstick; and where and how margin is optimized in terms of characteristics of the product line or distribution channel Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 4-47 Marketing Measurement Pathway •The cash-flow metrics pathway focuses on how well marketing expenditures are achieving short-term returns, Program and campaign ROI models measure the immediate impact or net present value of profits expected from a given investment • The brand metrics pathway tracks the development of the longer-term impact of marketing through brand equity measures that assess both the perceptual health of the brand from customer and prospective customer perspectives as well as the overall financial health of the brand Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 4-48 Figure 4.3 Marketing Dashboard Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 4-49 Table 4.4 Sample Customer-Performance Scorecard Measures        % of new customers to average # % of lost customers to average # % of win-back customers to average # % of customers in various levels of satisfaction % of customers who would repurchase % of target market members with brand recall % of customers who say brand is most preferred Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 4-50 For Review    What constitutes good marketing research? What are the best metrics for measuring marketing productivity? How can marketers assess their return on investment of marketing expenditures? Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 4-51 All rights reserved No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher Printed in the United States of America Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 52 .. .Chapter Questions    What constitutes good marketing research? What are the best metrics for measuring marketing productivity? How can marketers assess their return on investment of marketing. .. Hall 4 -39 Market Research Can Fail Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 4-40 Table 4 .3 Characteristics of Good Marketing Research  Scientific method: Effective marketing. .. 4-29 Question Types – Completely Unstructured What is your opinion of American Airlines? Copyright © 2011 Pearson Education, Inc Publishing as Prentice Hall 4 -30 Question Types – Word Association