Marketing Research

Aaker, Kumar, Day

Ninth Edition
Instructor’s Presentation Slides

1
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 Chapter Six

Standardized Sources of
Marketing Data

Sales
data
Marketing
data

Advertising
Surveys
data

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 Growth of Standardized Sources

Contributing Factors:

 Multitude of information users having common information

needs
 When cost of satisfying individual user's need is prohibitive
 The increasing use of scanner systems at the check out
points

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 Audits and Surveys: National Market Audit

 Bi-monthly audit focused on products irrespective of the

type of outlet carrying the product

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 Retail Store Audits

 Every two months a team of auditors from a research firm

visits a sample of stores to count the inventory on hand and
record deliveries to the store since the last visit

Beginning inventory + deliveries – ending inventory = sales

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 Nielsen Retail Index

 Nielsen’s auditing services cover four reporting groups:

 Grocery products
 Drugs
 Other merchandise
 Alcoholic beverages

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 Contents of a Nielsen Store Audit Report

 Sales
 Distribution
 Selling prices
 Retailer support
 Media advertising
 Special analyses

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 Consumer Purchase Panels

To cover the gap between store audits/warehouse withdrawal

services and actual purchases, two methods of data collection are
used:
Home Audit Approach
 Panel member agrees to permit an auditor to check the household stocks
of certain product categories at regular intervals
Mail Diary Method
 Panel member records the details of each purchase and returns the
diary by mail at regular intervals

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 Advantages of Consumer Panels

 Can provide information on aggregate sales activity, brand

shares, shifts in buyer characteristics and types of retail outlets
 Knowledge of sequence of purchases makes it possible to
analyze:
 Heavy buyers and their characteristics
 Brand-switching rates and the extent of loyal buying
 Cumulative market penetration and repeat purchase rates for new
products

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 Limitations of Consumer Panels

 Selection Bias
 Mortality Effect
 Testing Effects

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 Scanner Services

Benefits of Scanner-Based Audit Services:

 High degree of accuracy
 Time saving
 Ability to study very short time periods of sales activity

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 Scanner Services (cont.)

Weekly results from scanner service

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 Scanner Services (cont.)

Weekly results from scanner service

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 Applying Scanner Data

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 RFID

 Radio Frequency Identification Technology may replace

the bar codes.
 Utilizes a tiny silicon chip to store information; a small
transmitter then sends this information to a scanner.
 Advantages over UPC:
 The ability to store more information
 The ability to change the information on the tag
 The ability to transmit all the information on the chip to a
scanner without clear line of sight

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 Single-source Systems

 Usually set up in self-contained communities with their own

newspapers and cable TV and are roughly representative of
the demographics of the country
 A test panel of community households is recruited and
monitored for recording exposure to programming and
specific commercials
 Each member is provided an identification card for
presenting at scanner-equipped stores

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 Process of Scanner Data Collection by IRI

IRI
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 Advantages and Disadvantages of
Single Source Systems

 Advantages
 Availability of extensive pre-test records
 Immediate availability of test results
 Ability to compare purchases of households prior to and after
exposure to the message
 Ability to control settings
 Disadvantages
 Can track purchases only at stores equipped with scanners
 No information on whether viewers actually watch or just leave
the TV on
 Chance of biased results

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 Expert Systems Based on
Single-source Services

 Since users of scanner data are flooded with massive amounts of

data, expert systems are used to help the users understand the
data quickly
Examples of Expert Systems Are:
 Information Resources, Inc.
 Apollo Space Management Software
 Cover Story
 Sales Partner
 A. C. Nielsen
 Promotion Stimulator
 Spotlight
 Sales Advisor

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 Media Related Standardized Sources

Nielsen Television Index (NTI)

 National T.V. audiences

Arbitron Diary Panel

 Both regional and national radio and TV panels

Starch Scores
 Print media

Multi Media Services

 Magazine, TV, newspaper, radio (Simmons Service)

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 Nielsen Television Index (NTI)

 Rating – Percent of all households that have at least one TV set

turned to a program for at least 6 of every 15 minutes that the
program is telecast
 Share – Percent of households that have a TV set that is tuned to
a specific program at a specific time

Cost of a commercial
CPM =
Number of target audience delivered

A Nielsen viewing
diary

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 Media-related Standardized Sources (cont.)

SMART PEOPLE METER

Mechanics No wire connections Wired directly to TV and
VCR tuners
Research Data retrieved by reading Telephone connections
Methods UTCP codes used to return data

Method of Data User logs in/out before User punches numerical

Collection and after watching TV code into data-entry device

Reputation Media measurement Foremost in TV ratings

business serving the
radio industry

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 Applications of Standardized Data Sources

Measuring Promotion Measuring Ad Exposure and

Effectiveness Effectiveness
1. Scanner data 1. Starch scores
2. Diary Panels 2. NTI
3. Arbitron
4. Multimedia services
Measuring Product Sales and Estimation and Evaluation of
Market Share Models

2. Retail audits 2. Starch scores

3. Scanner data 3. Diary panels
4. Internal records 4. Internal records
5. NAICS

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