Lecture fundamentals of marketing - Lecture 7: Managing marketing information to gain customer insights (Part 2)

In this chapter, the following content will be discussed: Developing marketing information, qualitative measures, technological devices, types of samples, developing marketing information, collect the information, analyze the information, present the findings, framework for CRM,....

LECTURE­7 Managing Marketing Information to Gain Customer Insights Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall Part-2 11- 11 Developing Marketing Information • Marketing Research • Research Instruments Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- Qualitative Measures § Word association § § Projective techniques § § Give people an incomplete stimulus & ask them to complete it Visualization § § Asks subjects what words come to mind when they hear the brand’s name Requires people to create a collage from magazine photo or drawings to depict their perceptions Brand personification Ask subjects what kind of person they think of when the brand in mentioned Copyright â 2012 Pearson Education, Inc 1- Đ Publishing as Prentice Hall Technological Devices § Galvanometers § § Tachistoscope § § Measure the interest or emotions aroused by exposure to specific ad or picture Flashes an ad to a subject with an exposure interval that range from less than one hundredth of a second to several seconds Eye cameras Study respondents eye movements to see where their eyes land first, how long they Copyright © 2012 Pearson Education, Inc 1- linger on a given item Publishing as Prentice Hall § Technological Devices… § Audiometers § § Attached to TV sets in participating homes record when the set on & to which channel is tuned GPS § Global Positioning System – How many billboards a person may walk by or drive by during a day Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- Step 2: Develop the Research Plan… Sampling Plan § Sampling unit: § § Sample size: § § Who is to be surveyed? How many people should be surveyed? Sampling procedure: § How should the respondents be chosen? Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- Types of Samples § § Probability Samples Simple random § § § Every member of the population has an equal chance of selection Stratified random § § § The population is divided into mutually exclusive groups i.e age group & random sample drawn from each group Cluster § The population is divided into Copyright © 2012 Pearson Education, Inc mutually exclusive groups i.e city Publishing as Prentice Hall Convenience § The researcher selects the most accessible population members Judgment § § § Nonprobability Samples The researcher selects population members who are good prospects for accurate information Quota § The researcher find & interviews a prescribed number of people in each 1- of several categories Step 2: Develop the Research Plan… Contact Methods § Mail questionnaire § Telephone interview § Personal interview Đ Online interview Copyright â 2012 Pearson Education, Inc Publishing as Prentice Hall 1- • • Developing Marketing Information Marketing Research Strengths and Weakness of Contact Methods Mail Telephone Personal Online Flexibility Poor Good Excellent Good Quantity of data collected Good Fair Excellent Good Control of interviewer effects Excellent Fair Poor Fair Control of sample Fair Excellent Good Excellent Speed of data collection Poor Excellent Good Excellent Response rate Poor Poor Good Good Cost Good Fair Poor Excellent Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- Developing Marketing Information • • Marketing Research Contact Methods § Focus Groups § Six to 10 people § Trained moderator § Challenges § Expensive § Difficult to generalize from small group § Consumers not always open and honest Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- 10 Developing Marketing Information • Marketing Research • Implementing the Research Plan Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- 17 What is Customer Relationship Management? CRM is the process of carefully managing detailed information about individual customers and all customer touch points to maximize customer loyalty Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- 18 Analyzing and Using Marketing Information • Customer Relationship Management Touch points Copyright â 2012 Pearson Education, Inc Publishing as Prentice Hall 1- 19 Framework for CRM § § § § Identify your prospects and customers Differentiate customers by needs and value to your company Interact with individual customers to improve your knowledge about their individual needs & to build strong relationship Customize products, services and messages to each customer Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- 20 CRM Strategies § § § § Reduce the rate of customer defection Increase the longevity of the customer relationship Enhance the growth potential of each customer through “share of wallet” cross selling, & up-selling Making low profit customers move profitable or terminating them Focusing more effort on high-profit1- 21 Đ Copyright â 2012 Pearson Education, Inc Publishing as Prentice Hall Customer Retention- A tale from real life § § § § Acquisition of customers can cost times more than retaining current customers The average company loses 10% of its customers each year A 5% reduction to the customer defection rate can increase profits by 25% to 85% The customer profit rate increases over the life of a retained customer Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- 22 Database Key Concepts § § § Customer database Database marketing § Business database § Data warehouse § Data mining Mailing list Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- 23 Using the Database § To identify prospects § To target offers § To deepen loyalty § To reactivate customers § To avoid mistakes Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- 24 Don’t Build a Database When § The product is a once-in-a-lifetime purchase § Customers not show loyalty § The unit sale is very small § The cost of gathering information is too high Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- 25 Perils of CRM § § Implementing CRM before creating a customer strategy Rolling out CRM before changing the organization to match § Assuming more CRM technology is better § Stalking, not wooing, customers Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- 26 Distributing and Using Marketing Information Information distribution involves entering information into databases and making it available in a timeuseable manner § § Intranet provides information to employees and other stakeholders Extranet provides information to key customers and suppliers Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- 27 Other Marketing Information Considerations Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- 28 Other Marketing Information Considerations Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- 29 Bibliography § § § § Principles of Marketing by Philip Kotler & Gary Armstrong Fifteenth Edition, Published by Prentice Hall Marketing Management – A South Asian Perspective by Philip Kotler, Kevin Lane Keller, Abraham Koshy & Mithileshwar Jha, 13th Edition, Published by Pearson Education, Inc Principles and Practices of Marketing by Jobber, D 4th edition, McGraw Hill International Principles of Advertising & IMC by Tom Duncan 2nd Edition, Published by McGraw-Hill Irwin Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- 30 The End "If you don’t have time to it right, when will you have time to it over?" John Wooden Copyright © 2012 Pearson Education, Inc Publishing as Prentice Hall 1- 31 ... retaining current customers The average company loses 10% of its customers each year A 5% reduction to the customer defection rate can increase profits by 25% to 85% The customer profit rate increases... the longevity of the customer relationship Enhance the growth potential of each customer through “share of wallet” cross selling, & up-selling Making low profit customers move profitable or terminating... Relationship Management? CRM is the process of carefully managing detailed information about individual customers and all customer touch points to maximize customer loyalty Copyright © 2012 Pearson