Principles Of Marketing MKT1014/MKT2224 Lecture 7 PDF

PRINCIPLES OF MARKETING MKT1014/ MKT2224 WEEK 8 – LECTURE 7 These teaching materials are protected under the Copyright Act 1987. Duplication, in any form, including digitally, is prohibited by law and a pun...

PRINCIPLES OF MARKETING MKT1014/ MKT2224 WEEK 8 – LECTURE 7 These teaching materials are protected under the Copyright Act 1987. Duplication, in any form, including digitally, is prohibited by law and a punishable offence. ©2021 Our Vision: To be a World Class University Copyright © 2021, 2018, 2016 Pearson Education, Inc. Principles of Marketing Eighteenth Edition Chapter 4 Managing Marketing Information to Gain Customer Insights Copyright © 2021, 2018, 2016 Pearson Education, Inc. Learning Objectives 4.1 Explain the importance of information in gaining insights about the marketplace and customers. 4.2 Define the marketing information system and discuss its parts. 4.3 Outline the role of marketing research and the steps in the marketing research process. 4.4 Explain how companies analyze and use marketing information. 4.5 Discuss the special issues some marketing researchers face, including public policy and ethics issues. Copyright © 2021, 2018, 2016 Pearson Education, Inc.  Learning Objective 1 Explain the importance of information in gaining insights about the marketplace and customers.. Our Vision: To be a World Class University Copyright © 2021, 2018, 2016 Pearson Education, Inc. P&G: Customer Insights and Creating Irresistibly Superior Experiences Customer insights are fresh marketing information-based understandings of customers and the marketplace that become the basis for creating customer value, engagement, and relationships. To gain deep customer insights, P&G employs a wide range of marketing research approaches—from traditional large-scale surveys and small- scale focus groups to real-time social media listening, mobile surveys, and big data analytics. Copyright © 2021, 2018, 2016 Pearson Education, Inc. Marketing Information and Customer Insights (1 of 4) Customer insights Fresh and deep insights into customer needs and wants Companies use customer insights to develop a competitive advantage Insights can be difficult to obtain; marketers must manage marketing information from a wide range of sources Copyright © 2021, 2018, 2016 Pearson Education, Inc. Marketing Information and Customer Insights (2 of 4) Marketing Information and Today’s “Big Data” Big data is the huge and complex data sets generated by today’s sophisticated information generation, collection, storage, and analysis technologies Big data comes from marketing research, internal transaction data, and real-time data flowing from its social media monitoring, connected devices, and other digital sources Copyright © 2021, 2018, 2016 Pearson Education, Inc. Marketing Information and Customer Insights (3 of 4) Managing Marketing Information Customer insights teams – Include all company functional areas – Collect information from a wide variety of sources – Use insights to create more value for their customers A marketing information system (M I S) refers to the people and procedures dedicated to assessing information needs, developing the needed information, and helping decision makers to use the information to generate and validate actionable customer and market insights. Copyright © 2021, 2018, 2016 Pearson Education, Inc. Marketing Information and Customer Insights (4 of 4) Figure 4.1 The Marketing Information System Copyright © 2021, 2018, 2016 Pearson Education, Inc.  Learning Objective 2 Define the marketing information system and discuss its parts. Our Vision: To be a World Class University Copyright © 2021, 2018, 2016 Pearson Education, Inc. Assessing Marketing Information Needs (1 of 2) A marketing information system (MI S) provides information to the company’s marketing and other managers and external partners such as suppliers, resellers, and marketing service agencies. Copyright © 2021, 2018, 2016 Pearson Education, Inc. Assessing Marketing Information Needs (2 of 2) Characteristics of a Good MIS Balancing the information users would like to have against what they need and what is feasible to offer User’s Needs MIS Offerings Copyright © 2021, 2018, 2016 Pearson Education, Inc. Developing Marketing Information (1 of 3) Marketers obtain information from: Internal data Marketing intelligence Marketing research Copyright © 2021, 2018, 2016 Pearson Education, Inc. Developing Marketing Information (2 of 3) Internal Data Internal databases are collections of consumer and market information obtained from data sources within the company network. Copyright © 2021, 2018, 2016 Pearson Education, Inc. Developing Marketing Information (3 of 3) Competitive Marketing Intelligence Competitive marketing Competitive marketing intelligence: intelligence is the systematic Mastercard’s digital intelligence command collection and analysis of publicly center—called the Conversation Suite— available information about monitors, analyzes, and responds in real consumers, competitors, and time to millions of brand-related developments in the marketing conversations across 43 markets and 26 environment. languages around the world. Copyright © 2021, 2018, 2016 Pearson Education, Inc. Competitive Marketing Intelligence  Learning Objective 3 Outline the role of marketing research and the steps in the marketing research process.. Our Vision: To be a World Class University Copyright © 2021, 2018, 2016 Pearson Education, Inc. Marketing Research (1 of 18) Marketing research is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization. Copyright © 2021, 2018, 2016 Pearson Education, Inc. Marketing Research (2 of 18) Figure 4.2 The Marketing Research Process Copyright © 2021, 2018, 2016 Pearson Education, Inc. Marketing Research (3 of 18) Defining the Problem and Research Objectives Exploratory research Descriptive research Causal research Copyright © 2021, 2018, 2016 Pearson Education, Inc. Marketing Research (4 of 18) Developing the Research Plan Outlines sources of A decision by Chick-fil-A to add existing data vegan “chicken” would call for marketing research that provides Spells out the specific lots of specific information. research approaches, contact methods, sampling plans, and instruments to gather data Copyright © 2021, 2018, 2016 Pearson Education, Inc. Marketing Research (5 of 18) Defining the Problem and Research Objectives Written proposal Management problem Research objectives Information needed How the results will help management decisions Budget Copyright © 2021, 2018, 2016 Pearson Education, Inc. Marketing Research (6 of 18) Developing the Research Plan Secondary data is information that already exists somewhere, having been collected for another purpose. Primary data is information collected for the specific purpose at hand. Copyright © 2021, 2018, 2016 Pearson Education, Inc. Marketing Research (7 of 18) Gathering Secondary Data Advantages – Lower cost – Obtained quickly – Cannot collect otherwise Disadvantages: Data may not be – Relevant – Accurate – Current – Impartial Copyright © 2021, 2018, 2016 Pearson Education, Inc. Marketing Research (8 of 18) Primary Data Collection Research Approaches Contact Methods Sampling Plan Research Instruments Copyright © 2021, 2018, 2016 Pearson Education, Inc. Marketing Research (9 of 18) Table 4.1 Planning Primary Data Collection Research Contact Sampling Plan Research Approaches Methods Instruments Observation Mail Sampling unit Questionnaire Survey Telephone Sample size Mechanical instruments Experiment Personal Sampling procedure Online Copyright © 2021, 2018, 2016 Pearson Education, Inc. Marketing Research (10 of 18) Primary Data Collection Ethnographic research: Under Research Approaches Intuit’s “follow me home” program, teams of Intuit employees visit Observational research customers in their homes or involves gathering primary offices to watch them use the data by observing relevant company’s products in real life. people, actions, and situations. Ethnographic research involves sending trained observers to watch and interact with consumers in their “natural environments.” Copyright © 2021, 2018, 2016 Pearson Education, Inc. Marketing Research (11 of 18) Primary Data Collection Research Approaches Survey research involves gathering primary data by asking people questions about their knowledge, attitudes, preferences, and buying behavior. Experimental research involves gathering primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses. Copyright © 2021, 2018, 2016 Pearson Education, Inc. Marketing Research (12 of 18) Experimental Research: Online experiments can be simple and inexpensive. For example, an online “A/B test” for Microsoft’s Bing search engine formatting yielded performance-enhancing results in only hours. Copyright © 2021, 2018, 2016 Pearson Education, Inc. Marketing Research (13 of 18) Primary Data Collection: Contact Methods Mail, telephone, and personal New focus group designs: The interviewing Mom Complex uses “Mom – Mail questionnaires Immersion Sessions” to help brand marketers understand and connect – Telephone interviewing directly with their “mom customers” – Personal interviewing on important brand issues. ▪ Individual interviewing ▪ Group interviewing Focus Group Interviewing Copyright © 2021, 2018, 2016 Pearson Education, Inc. Marketing Research (14 of 18) Primary Data Collection: Contact Methods Online marketing research Internet and mobile surveys Online focus groups Consumer tracking Experiments Online focus groups: Focus Vision’s InterVu service lets Online panels and brand focus group participants at communities remote locations see, hear, and react to each other in real-time, face-to-face discussions. Copyright © 2021, 2018, 2016 Pearson Education, Inc. Marketing Research (15 of 18) Primary Data Collection Online behavioral and social tracking and targeting Behavioral targeting Online listening Social targeting Copyright © 2021, 2018, 2016 Pearson Education, Inc. Marketing Research (16 of 18) Table 4.2 Types of Samples Probability Sample Simple random sample Every member of the population has a known and equal chance of selection. Stratified random sample The population is divided into mutually exclusive groups (such as age groups), and random samples are drawn from each group. Cluster (area) sample The population is divided into mutually exclusive groups (such as blocks), and the researcher draws a sample of the groups to interview. Nonprobability Sample Convenience sample The researcher selects the easiest population members from which to obtain information. Judgment sample The researcher uses his or her judgment to select population members who are good prospects for accurate information. Quota sample The researcher finds and interviews a prescribed number of people in each of several categories. Copyright © 2021, 2018, 2016 Pearson Education, Inc. Marketing Research (17 of 18) Primary Data Collection Research Instruments Questionnaires – Open-ended questions – Closed-ended questions Mechanical instruments Biological and neurological measures: Online travel giant Expedia’s “Usability Lab” uses biometrics and observation to learn about the deep- down tensions and delights customers experience during their trip-planning journeys. Copyright © 2021, 2018, 2016 Pearson Education, Inc. Marketing Research (18 of 18) Implementing the Research Plan – Collecting the information – Processing the information – Analyzing the information Interpreting and Reporting Findings – Interpret findings – Draw conclusions – Report to management Copyright © 2021, 2018, 2016 Pearson Education, Inc.  Learning Objective 4 Explain how companies analyze and use marketing information... Our Vision: To be a World Class University Copyright © 2021, 2018, 2016 Pearson Education, Inc. Analyzing and Using Marketing Information (1 of 2) Customer Relationship Management (CRM) CRM involves managing detailed information about individual customers and carefully managing customer touch points to maximize customer loyalty. Copyright © 2021, 2018, 2016 Pearson Education, Inc. Analyzing and Using Marketing Information (2 of 2) Big Data, Marketing Analytics, and Artificial Intelligence Marketing analytics involves analysis tools, technologies, and processes by which marketers dig out meaningful patterns in big data to gain customer insights and gauge marketing performance. Some analytics employ artificial intelligence (AI), technology by which machines think and learn in a way that looks and feels human but with a lot more analytic capacity. Copyright © 2021, 2018, 2016 Pearson Education, Inc.  Learning Objective 5 Discuss the special issues some marketing researchers face, including public policy and ethics issues... Our Vision: To be a World Class University Copyright © 2021, 2018, 2016 Pearson Education, Inc. Other Marketing Information Considerations Marketing Research in Small Businesses and Nonprofit Organizations International Market Research Public Policy and Ethics – Customer privacy – Misuse of research findings Copyright © 2021, 2018, 2016 Pearson Education, Inc. Copyright 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 and is not permitted. The work and materials from it should never be made available to students except by instructors using the accompanying text in their classes. All recipients of this work are expected to abide by these restrictions and to honor the intended pedagogical purposes and the needs of other instructors who rely on these materials. Copyright © 2021, 2018, 2016 Pearson Education, Inc.