Chapter 4 oer Conducting Marketing Research Copyright © 2016 Pearson Education Ltd. 44Learning Objectives 1. What is the scope of marketing research? 2. What steps are involved in conducting good marketing research? 3. What are the best metrics for measuring marketing productivity? Copyright © 2016 Pearson Education Ltd. 42The Scope of marketing research * American Marketing Association — Marketing research is the function that links the consumer, customer, and public to the marketer through information—information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process. Copyright © 2016 Pearson Education Ltd. 43The Scope of marketing research * Importance of marketing insights — Generating insights (how and why we observe certain effects in the marketplace) Copyright © 2016 Pearson Education Ltd.The Scope of marketing research * Who Does Marketing Research? f Y Marketing departments in big firms Y Everyone at small firms ¥ Syndicated-service research firms ¥ Custom marketing research firms N Y Specialty-line marketing research firms Copyright © 2016 Pearson Education Ltd. 45Research conducted at small companies Engage students/pro fessors creativity Tap partner Check out expertise rivals Copyright © 2016 Pearson Education Ltd. 46 Tap employeeThe Scope of marketing research Overcoming Barriers to the Use of Marketing Research Copyright © 2016 Pearson Education Ltd. 47Figure 4.1 The Marketing Research Process — Copyright © 2016 Pearson Education Ltd. 48Step 1 Re * Define the problem * Define the decision alternatives ° Define the research objectives Copyright © 2016 Pearson Education Ltd. 49Step 2: Develop the Research Plan . Data sourcesStep 2: Develop the Research Plan * Research approaches Y Observational research ¥ Focus group research ¥ Survey research L Y Behavioral research Copyright © 2016 Pearson Education Ltd. anStep 2: Develop the Research Plan ° Research instruments Questionnaires Qualitative measures [ Technological devices ] Copyright © 2016 Pearson Education Ltd. 412Questionnaire TABLE 4.1 Name Description Example ‘A. Closod-End Questions Diu ‘questo wit bo possible answers avanging bis i, did you personaly phone Aerican? ves i Mile cca “A question wi nwa or more answers With whom are you avling a is ight? CiNoone Behe ony Di Sponse {fananessastcetestondreatves {Space and chitren Chan organized a group her aie ‘A sntemont wih whieh eapon- imal irines generly ge beter servce than age ones. dent shows the amount of agreamenty Strongly Disagree Neither ‘Agree ‘Strongly Seauocmont cisagoe sar nor sue ‘atagee H 3 4 5. ‘oman amore {Reale conning two Biplar wards. 1 Aenean ines ‘he espondort selects the pint rat Large sma ‘ooo ho ur upto, eqenanced_______rsporeneed Meer Ob tanone gta sale ‘Aecal hat alos tho mportance Arno in fight eorvce to ma ie Sraome atte Exremsiy Vey. Somewhat Notary Nota al ‘portent trpocant import mportnt—_mportant : 2 2 : 2 ating ate 7 cae al aes some ate tom Amencan ight sre “poor tometer” Beotent ” VeyGood Gent Far Poor i 2 3 i 5 tonon to by ale ‘A sca tatdescbos the eapondents Marg eomed WF oro wore vate on aon | wa ‘ents tay Dotty Probab Not sue Probably Gata | i = a koe Be, Copyright © 2016 Pearson Education Ltd. 413Questionnaire B. Open-End Questions Completely unstructured ‘A question that respondents can answer What is your opinion ot American Airines? ‘nan almost unlimited number of ways Word association \Words are presented, one ata time, What isthe fist word that comes io your mind when you hear the and respondents mention the rst word folowing? that comes to mind Air. ‘American, Travel, | ‘Sentence completion ‘An incomplete sentence is presented When choose an aine, the most important consideration in my and respondents compte the sentence. decison is ‘Story completion ‘An incomplete story is presented, and “I flew Americana few days ago. | noticed thatthe exterior and respondents are asked to complete it. intrior of the plane had very right colors. This aroused in me the following thoughts and feelings...” Now complet the story. Picture A picture of two characters is pre sented, with one making a statement. Respondents are asked to identity with the other and iin the empty balloon. Thematic Apperoeption Test A pictur is presented and respondents (Al) are asked to make up a story about what they thnk is happening or may happen in the picture Copyright © 2016 Pearson Education Ltd. 414Qualitative measures ZMET approach Word association Projective Laddering techniques Brand personification Visualization Copyright © 2016 Pearson Education Ltd. 415Step 2: Develop the Research Plan * Technological devices — Galvanometer — Tachistoscope — Eye-tracking — Facial detection — Skin sensors — Brain wave scanners — Audiometer =GPS Copyright © 2016 Pearson Education Ltd. 416Step 2: Develop the Research Plan Sampling plan — Sampling unit: Whom should we survey? — Sample size: How many people should we survey? — Sampling procedure: How should we choose the respondents? Copyright © 2016 Pearson Education Ltd.Step 2: Develop the Research Plan * Contact methods Vv Mail v Telephone v Personal ¥ Online Copyright © 2016 Pearson Education Ltd.Online Research ° Advantages ° Disadvantages — Inexpensive — Small — Expansive — Skewed — Fast — Excessive turnover — Honest — Technological — Thoughtful problems — Versatile — Technological inconsistencies = Copyright © 2016 Pearson Education Ltd. 419Step 3 to Step 6 Step 3: Collect the Information Step 4: Analyze the Information Step 5: Present the Findings Step 6: Make the Decision Copyright © 2016 Pearson Education Ltd. 4-20Table 4.2 Good Marketing Research TABLE 42 Me geet ciar te 1. Scientific method | Effective marketing research uses the principles of the scientific method: careful observation, formulation of hypotheses, prediction, and testing. 2. Research creativity | in an award-winning research study to reposition Cheetos snacks, researchers dressed up in ‘a brand mascot Chester Cheetah suit and walked around the streets of San Francisco, The response the character encountered led to the realization that even adults loved the fun and playfulness of Cheetos. The resulting repositioning led to a double-digit sales increase despite a tough business environment. 4? 3. Multiple methods | Marketing researchers shy away from overreliance on any one method. They also recognize the value of using two or three methods to increase confidence in the results, 4, Interdependence of | Marketing researchers recognize that data are interpreted from underlying modets that guide models and data | the type of information sought. 5. Value and cost of | Marketing researchers show concern for estimating the value of information against its Information Cost. Costs are typically easy to determine, but the value of research is harder to quantity. It depends on the reliability and validity of the findings and management's wilingness to accept and act on those findings. 6. Healthy skepticism | Markoting researchers show a healthy skepticism toward glib assumptions made by managers about how a market works. They are alert to the problems caused by “marketing myths.” 7. Ethical marketing | Marketing research benefits both the sponsoring company and its customers. The misuse of marketing research can harm or annoy consumers, increasing resentment at what consumers regard as an invasion of their privacy or a disguised sales pitch, Copyright © 2016 Pearson Education Ltd. 421Measuring Marketing Productivity * Marketing metrics ° Marketing-mix modeling ° Marketing dashboards Copyright © 2016 Pearson Education Ltd.Marketing metrics * Measures that help marketers quantify, compare, and interpret performance TABLE 4.3 1. External Awareness Market share (volume or value) Relative price (market share value/volume) ‘Number of complaints (level of dissatisfaction) ‘Consumer satisfaction Distribution/availability Total number of customers Porceived quality/esteem Loyaity/retention Relative perceived quality 1 Internal ‘Awareness of goals ‘Commitment to goals Active innovation support Resource adequacy Staffing/skill levels Desire to learn Willingness to change Freedom to fail Autonomy Relative employee satisfaction Copyright © 2016 Pearson Education Ltd. 4-23MARKETING-MIX MODELING Analyzes 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 Copyright © 2016 Pearson Education Ltd. 4-24Marketing Dashboards ° “A concise set of interconnected performance drivers to be viewed in common throughout the organization.” ( > ¥ Customer-performance scorecard ¥ Stakeholder-performance scorecard \ J Copyright © 2016 Pearson Education Ltd. 4-25Table 4.4 Teme ec ctcs Percentage of new customers to average number of customers Percentage of lost customers to average number of customers Percentage of win-back customers to average number of customers Percentage of customers falling into very dissatisfied, dissatisfied, neutral, satisfied, and very satisfied categories Percentage of customers who say they would repurchase the product Percentage of customers who say they would recommend the product to others Percentage of target market customers who have brand awareness or recall Percentage of customers who say that the company’s product is the most preferred in its category Percentage of customers who correctly identify the brand's intended positioning and differentiation Average perception of company's product quality relative to chief competitor Average perception of company's service quality relative to chief competitor Copyright © 2016 Pearson Education Ltd. 4-26Figure 4.3 Example Of A Marketing DashboardThis work is protected by United States copyright laws and is provided solely for the use of instructors in teaching their courses and assessing student learning. Dissemination or sale of any part of this work (including on the World Wide Web) will destroy the integrity of the work an ted. The work and materials from it should never be made av: students except by instructors using the accompanying text in th classes. All recipi restrictions and to honor the intended pedagogical purposes and the needs of other instructors who rely on these materials. Copyright © 2016 Pearson Education Ltd. 4-28