Shekter_1ce_PPT_accessible_fullppt_04-_revised.pptx

Marketing Chapter 4 Market Intelligence — Gaining Advantage through Knowledge Copyright © 2021 Pearson Canada, Inc. 4-1 Learning Objectives After studying this chapter you should be able to: 4.1 Explain the role of marketing intelligence 4.2 Categorize the tools of marketing intelligence 4.3 Des...

Marketing Chapter 4 Market Intelligence — Gaining Advantage through Knowledge Copyright © 2021 Pearson Canada, Inc. 4-1 Learning Objectives After studying this chapter you should be able to: 4.1 Explain the role of marketing intelligence 4.2 Categorize the tools of marketing intelligence 4.3 Design and implement a marketing intelligence plan 4.4 Analyze limitations of market intelligence Copyright © 2021 Pearson Canada, Inc. 4-2 The Role of Marketing Intelligence (1 of 4) • Identify how organizations use marketing intelligence to make decisions – The use of facts, research, data, insights, and analysis to improve the quality of decision making Copyright © 2021 Pearson Canada, Inc. 4-3 The Role of Marketing Intelligence (2 of 4) Figure 4.1 Areas Where Organizations Need to Make Decisions and Implications Area Decision to Be Made Implications Brand Should we go with an existing brand? A new one? Existing brands carry their own impressions. Does the product reflect those elements? What would it cost to develop a new brand? Features What features are consumers looking for? How can we distinguish our features from the competition? Choice of features determine consumer appeal, distinction from competition, and even determine who the consumer is. Distribution Where should we sell our product or service? Channels of distribution affect not only how or if consumers can get the item, but also affect who the competition will be. Should we sell it direct? Go through retail channels? What about online? Price What should we charge? Not only does price have implications for profit, price indicates a level of quality. Consumers will compare the price to that of the competition. Promotion How to best promote? Advertising? Word of mouth? Billboards? What is the best way to reach our consumer with our message? Consumer Who is our consumer? Identifying the consumer has implications for everything from brand to whom we should consider as our competition. Copyright © 2021 Pearson Canada, Inc. 4-4 The Role of Marketing Intelligence (3 of 4) Area Decision to Be Made Implications Competitive Response How will competition respond? Anticipating and understanding potential competitive response has implications that can impact the success or failure of our marketing efforts. Purchase frequency How often do consumers purchase this product? This has implications for everything from potential volume estimates to timing of launch (e.g., Easter and Christmas are big “baking” occasions, so new baking products are introduced then). Seasonality Is this product or service seasonal? Are there any seasonality changes in consumption? Certain products (ice cream, beer) are very seasonal. While consumed all year, there are significant times (summer, holidays) when considerably more is consumed. This can impact how much competitive activity is in the market at the time. Packaging In some cases, the packaging format may contribute to the marketing decision. Does the packaging effectively communicate the use and quality of the product? Does it imply who the competition is (notice that almost all soft drinks use identical cans and bottles)? Do consumers make decisions based on how environmentally friendly the packaging is? Loyalty How loyal are consumers in this category? If consumers are very loyal, getting them to switch will be hard. If consumers are not loyal, getting them to stay will be hard. Copyright © 2021 Pearson Canada, Inc. 4-5 The Role of Marketing Intelligence (4 of 4) • Differentiate between marketing intelligence and market research – Not all marketing intelligence requires the use of market research – Available and existing data or information for which no “search” is required is part of M I – Marketing research generally applies to data derived from, or the development of, a special project designed to develop or “search” for data Copyright © 2021 Pearson Canada, Inc. 4-6 Marketing Intelligence Plan (1 of 3) • The marketing intelligence plan process is outlined here. Figure 4.3 The Marketing Intelligence Plan Process Copyright © 2021 Pearson Canada, Inc. 4-7 Marketing Intelligence Plan (2 of 3) • Explain the characteristics of a good marketing intelligence question Figure 4.3.1 Explain the characteristics of a good marketing intelligence question Element Explanation Specific A good question seeks a specific answer to a specific question; or seeks an answer to a piece of information that will combine with other pieces of information to complete an answer. Actionable Is the question structured to seek information designed to support an actionable decision? Data Seeking Does the question seek information—points of data that can be used to inform a decision? Will the responses reveal new information? Viable Whether the answer to the information is quantified or qualitative, primary or secondary data, a good marketing intelligence question is one that can be explored and answered through the use of market intelligence. Critical A good question is constructed around an aspect of the decision-making process that is critical to success or failure. Copyright © 2021 Pearson Canada, Inc. 4-8 Marketing Intelligence Plan (3 of 3) • Describe the steps in implementing a marketing intelligence plan – The actual execution and conducting of an M I plan involves 3 steps: 1. Implementing the plan 2. Analysis 3. The decision Copyright © 2021 Pearson Canada, Inc. 4-9 Tools of Marketing Intelligence (1 of 9) • There are a number of tools available to marketers to aid them in their decision making Figure 4.2 Categorizing the Tools of Market Intelligence Copyright © 2021 Pearson Canada, Inc. 4 - 10 Tools of Marketing Intelligence (2 of 9) • Contrast the characteristics of primary vs secondary data – Primary data is information generated for a specific purpose – Secondary data is information which has been previously generated for another purpose Copyright © 2021 Pearson Canada, Inc. 4 - 11 Tools of Marketing Intelligence (3 of 9) • Primary data is: 1. Expensive 2. Time consuming 3. Proprietary 4. Specific 5. Confirmable Copyright © 2021 Pearson Canada, Inc. 4 - 12 Tools of Marketing Intelligence (4 of 9) • Secondary data is: 1. Readily available 2. Inexpensive 3. Available to everyone 4. Not specific/current 5. Not confirmable 6. At the very least a good starting point Copyright © 2021 Pearson Canada, Inc. 4 - 13 Tools of Marketing Intelligence (5 of 9) • Identify sources of secondary data 1. Internal 2. Industry 3. Government 4. Media 5. Research journals 6. Syndicated research 7. Point-of-purchase tracking Copyright © 2021 Pearson Canada, Inc. 4 - 14 Tools of Marketing Intelligence (6 of 9) • Compare quantitative and qualitative data – Quantitative data (quant) is information that can be measured and analyzed objectively through the use of empirical (statistical) tools. Requires a sufficiently large sample size to be considered accurate – Qualitative data (qual) is more subjective information that is not measured numerically. This data is often open ended, and reflects feelings or general impressions Copyright © 2021 Pearson Canada, Inc. 4 - 15 Tools of Marketing Intelligence (7 of 9) • Types and purposes of quantitative data 1. Social media 2. Web tracking 3. Web search 4. Experimental research 5. Simulation research 6. Projective tools 7. Test market 8. Scanner data 9. Panel Copyright © 2021 Pearson Canada, Inc. 4 - 16 Tools of Marketing Intelligence (8 of 9) • Types and purposes of qualitative data 1. Focus group 2. Observation 3. In-home/ethnographic research 4. Long interview Copyright © 2021 Pearson Canada, Inc. 4 - 17 Tools of Marketing Intelligence (9 of 9) • Categorize marketing intelligence data by purpose 1. Exploratory data 2. Predictive data 3. Conclusive data Copyright © 2021 Pearson Canada, Inc. 4 - 18 Limitations of Marketing Intelligence (1 of 2) • Identify common practical arguments against the use of marketing intelligence 1. Marketing intelligence is imperfect and unpredictable 2. Many of the popular traditional tools of market intelligence are outdated 3. Market intelligence data is used ineffectively and leads to poor decisions 4. Some things defy analysis, or the proper tools have not yet been developed 5. Research process itself can affect outcomes 6. Marketers use marketing intelligence to avoid responsibility Copyright © 2021 Pearson Canada, Inc. 4 - 19 Limitations of Consumer Research Apple Mac Launch - 1984 Actual Focus Group research on "1984" Copyright © 2021 Pearson Canada, Inc. 4 - 20 Limitations of Marketing Intelligence (2 of 2) • Identify common ethical arguments against the use of marketing intelligence • Note: much of this is covered in Chapter 18’s discussion of ethics, however there are particular ethical considerations specific to Marketing intelligence mostly involving privacy and personal information (e.g., web search tracking, use of cookies) This is all legal but is it Ethical? https://www.youtube.com/watch?v=f2Kji24833Y Copyright © 2021 Pearson Canada, Inc. 4 - 21 Summary • The role of marketing intelligence has been explained • The tools of marketing Intelligence have been categorized by type and purpose, including: – Primary vs secondary data – Quantitative vs qualitative data • The process for developing a marketing intelligence plan has been presented • The limitations – both practical and ethical – of marketing intelligence have been outlined Copyright © 2021 Pearson Canada, Inc. 4 - 22 Next Week – Mid Term 1 – No Lesson • • • • • • • • Test is taken in Blackboard (See “Tests” Tab) 1 hour 30 questions – True/False & Multiple Choice 15% of Final Mark All questions sourced from Chapters 1-4 Use the Flashcards and quizzes to practice Test MUST be taken at this time per College Policy Students are expected to stay off of any group chats or emails during the test. These are monitored. • Violations will be classified as a breach of Academic Integrity and appropriate action will be taken. Copyright © 2021 Pearson Canada, Inc. 4 - 23