Marketing Management Tutorial 4

Marketing Management Tutorial 4

• The tutorial focuses on data collection, experimental methods, and their application in business.
• The learning objectives include understanding data collection and (quasi-)experimental methods, the value of experiments in business, and applying this knowledge in class.
• The tutorial agenda includes an icebreaker, web lecture basics, A/B tests and experiments, and an in-class activity.

Icebreaker: True or False?

• Nike's "Just Do It" slogan was inspired by a criminal's last words, but the slogan was actually inspired by Gary Gilmore's last words, "Let's do it".
• The "Like" button on Facebook was originally intended to be called "Awesome", but was changed to "Like" for simpler, more universal appeal.
• Sony's PlayStation was initially planned as a joint venture with Nintendo, but the partnership didn't materialise, and Sony created the PlayStation independently.
• The first Starbucks store in Seattle sold coffee beans and equipment, but not musical instruments, despite Seattle's strong musical scene.
• Pepsi was initially called "Brad's Drink" when it was created, and was renamed as "Pepsi-Cola" in 1898, taking inspiration from pepsin and kola nuts in its recipe.

What We Achieved So Far and What's Next

• The main steps include creating a brand identity, product idea generation, collecting survey data, analysing data statistically.

Measurement

• Measurement is the process of assigning numbers, labels, or descriptions to characteristics, attributes, or phenomena (constructs) to quantify, categorize, or describe them systematically.
• Measurement examples include Age (e.g., 33 years), Efficacy of a new drug (e.g., 50% reduction in symptoms), Satisfaction of the service (e.g., 7 = very satisfied).

Operationalization

• Operationalization is the process of taking a vague concept and turning it into a precise measurement.
• This encompasses defining the concept being measured, selecting a method of measurement, and determining the level of measurement.
• The Slideshow provides an example of measuring Happiness through "Number of smiles in a week."

Levels (Scales) of Measurement

• Nominal: Categorizes data into distinct groups without inherent order (e.g., colors preferred, brand names).
• Ordinal: Categorizes data with an inherent order (e.g., levels of loyalty, brand rankings).
• Interval: Categorizes data with an inherent order and equal intervals between categories (e.g., pH levels, temperatures).
• Ratio: Categorizes data with an inherent order, equal intervals, and a true zero point (e.g., years of experience, number of bottles sold).

Likert Scales

• A Likert scale is a type of survey question where respondents express agreement or disagreement with a statement using a numerical scale (e.g., 1 = strongly disagree to 5 = strongly agree).

Transforming Levels

Data transformation is unidirectional; you can transform data from a higher level to a lower level, but not the reverse. This conversion comes with a reduction of data.

Continuous and Discrete Variables

• Discrete variables represent counts or whole numbers (e.g., number of students, number of clicks).
• Continuous variables can take on any value within a range (e.g., time, temperature).

Assigning a Role to Variables

• Outcome variables need explaining, and predictor variables are used to explain.

Measuring the Effectiveness of Brand Elements

• Understanding the relationship between brand elements and brand identity/preference is essential.
• Define theoretical constructs (what is brand identity/preference?).
• Operationalise measurements (how to measure brand elements, choosing valid brand measuring methods).
• Create a survey based on operationalization.

Tests Needed for BRP (Brand Report Protocol)

• The table displays statistical tests appropriate for assessing different types of brand elements.

BRP Guidelines for Brand Elements

• Detailed instructions for conducting a BRP study covering brand statement, logo, and brand names, including methodology, operationalisation, and the choice of statistical tests.

Reliability and Validity

• Reliability measures the stability and consistency of a measurement tool.
• Validity assesses the accuracy of a measurement tool in measuring the target construct. Different types of validity exist (internal, external, construct).

A/B Testing

• A/B testing is a method of comparing two or more versions of a marketing material to identify the most effective option.
• The methodology involves randomly assigning users to different versions and measuring their responses (e.g., click-through rate).

In-class Activity: Llama Juice

• The students are tasked with measuring and choosing the most influential/successful advertisement for a soda brand "Llama Juice" given a set of different advertisement options.
• The exercise involves identifying and using different measurement metrics to measure success.

Part 1: Measuring Advertisement Effectiveness

• Students develop three metrics to measure advertisement effectiveness.
  • One metric must be continuous and use a ratio scale
• One categorical (non-Likert)
• One interval scale (eg. Likert)
• Students should consider operationalization details (defining "effectiveness", operationalising the scale) and construct validity.

A/B Testing Key Benefits

Summarises the key advantages of implementing A/B testing, including evidence-based decision-making, agile adaptation and cost effectiveness.

A/B Testing Potential Risks

Highlights potential pitfalls of implementing A/B testing, including data integrity issues, user response variability, and causality confusion.

Final Instructions

• The presentation concludes with thank you, notification to prepare mandatory materials, and ensuring group access to Qualtrics.

This tutorial delves into data collection and experimental methods in marketing management, emphasizing their application in business contexts. Participants will learn how to conduct A/B tests and experiments, along with engaging in an icebreaker activity to foster interaction and understanding of these concepts.