Ch_7_Market Research.pdf

Chapter 7 Marketing Research © 2023 McGraw Hill Limited 7-1  Chapter 7: Marketing Research LEARNING OBJECTIVES LO1 Identify the five steps in the marketing research process LO2 Describe the various secondary data sources LO3 Describe prim...

Chapter 7 Marketing Research © 2023 McGraw Hill Limited 7-1  Chapter 7: Marketing Research LEARNING OBJECTIVES LO1 Identify the five steps in the marketing research process LO2 Describe the various secondary data sources LO3 Describe primary data collection techniques and summarize the differences between secondary data and primary data LO4 Outline ethical issues firms encounter when conducting marketing research © 2023 McGraw Hill Limited 7-2  Marketing Research ⚫ Modern companies are leveraging “big data”. ⚫ Netflix relies on usage data ⚫ Data collection helped Netflix understand what people want to watch ⚫ Netflix leverages its advanced marketing research to understand how people watched shows and movies. © 2023 McGraw Hill Limited 7-3  Marketing Research Consists of a set of techniques and principles for systematically collecting, recording, analyzing and interpreting data that can aid decision makers involved in marketing goods, services or ideas. © 2023 McGraw Hill Limited 7-4 The Marketing Research Process © 2023 McGraw Hill Limited 7-5  Step 1: Define The Research Problem & Objectives What information is How should that needed to answer specific information be obtained? research questions? © 2023 McGraw Hill Limited 7-6  Step 1: Define The Research Problem & Objectives If McDonald’s were to do research to better understand its customers’ experience, it would study both the McDonald’s experience (left) and that of its major competitors, like Wendy’s (right). © 2023 McGraw Hill Limited 7-7  Step 2: Design the Research Plan ⚫ Identify → type of data needed ⚫ Determine → type of research necessary to collect the data ⚫ Project objectives drive the type of data needed McDonald’s assesses its customers’ market experience by examining available data and then asks customers about their experience with products such as Value Meals. © 2023 McGraw Hill Limited 7-8  Step 3: Collect Data ⚫ Secondary Data ⚫ Pieces of information that have been collected prior to the start of the focal project ⚫ Can be internal or external data ⚫ Primary Data ⚫ Data collected to address specific research needs ⚫ Focus groups, interviews, Politicians and non-profit organizations do research to understand their constituencies. surveys © 2023 McGraw Hill Limited 7-9  Step 4: Analyze Data & Develop Insights Converting data into information to explain, predict and/or evaluate a particular situation. © 2023 McGraw Hill Limited 7-10  Step 5: Present Action Plan ⚫ PREPARE the results ⚫ Executive summary ⚫ Body of the report (objectives, methodology, findings) ⚫ Conclusions ⚫ Supplemental tables/appendices ⚫ PRESENT the results ⚫ Short & to the point ⚫ Interesting & appropriate to style of audience ⚫ No technical jargon! ⚫ Recommendations © 2023 McGraw Hill Limited 7-11  Secondary Data ⚫ Can be free or very inexpensive to obtain ⚫ Internal sources: ⚫ From the company/firm itself ⚫ Invoices, customer lists, other reports created by the firm ⚫ Firms use data mining techniques to decipher large amounts of data Marketers use data-mining techniques to determine what items people buy at the same time, so ⚫ Downside: may not be the those items can be promoted and displayed together. data you need or the right data © 2023 McGraw Hill Limited 7-12  Secondary Data ⚫ Data Mining: ⚫ uses various statistical analysis tools to uncover previously unknown patterns in the data or relationships among variables. ⚫ can reduce customer Churn levels ⚫ firms use data mining to generate customer-based analytics that they can apply to their strategic decision-making, enhancing the customer experience. © 2023 McGraw Hill Limited 7-13  Secondary Data ⚫ Big Data: ⚫ data sets that are too large and complex to analyze with conventional data management software ⚫ these data sets are then analyzed with a variety of statistical tools, known as data mining tools ⚫ Five Vs of Big Data (Exhibit 7.5) © 2023 McGraw Hill Limited 7-14  Secondary Data ⚫ External sources: ⚫ census data, trade journals, books, articles, reports ⚫ can also be purchased from specialized research firms ⚫ Downside: may not be specific or timely enough to solve the research needs © 2023 McGraw Hill Limited 7-15  External Secondary Data Sources ⚫ Secondary Data Sources: ⚫ Syndicated data ⚫ Scanner data ⚫ Panel data Syndicated external secondary data are acquired from scanner readings of UPC codes at checkout counters (left) and from panel data collected from consumers that electronically record their purchases (right). © 2023 McGraw Hill Limited 7-16  External Secondary Data Sources (Examples, Part 1) Stats Canada & Other Guides, Indexes, and Directories Databases Government Pubs Business Periodicals Index Canadian Economic Observer CANSIM (Statistics Canada) Canadian Almanac and Directory Canada Yearbook CompuServe Canadian News Index Family Expenditure Guide Dialog Canadian Periodical Index Market Research Handbook Dow Jones Canadian Small Business Index Statistics Canada Catalogue Factiva and Directory Western Economic Diversification FPinfomart Canadian Trade Index Canada Infoglobe Directory of Canadian Ontario Ministry for Economic LexisNexis Associations Development and Trade SEDAR Fraser’s Canadian Trade Directory Department of Foreign Affairs SymphonyIRI Group Predicasts F&S Index and Trade Scott’s Directories U.S. Census Standard Periodical Directory Stat-USA © 2023 McGraw Hill Limited 7-17  External Secondary Data Sources (Examples, Part 2) Periodicals and Newspaper Trade Sources Online Sources Advertising Age Aberdeen Research Websites of competitors Adweek Nielsen White papers from industry American Demographics Conference Board of Canada associations Business Horizons Dun & Bradstreet Canada Search engines Canadian Business Financial Post Publishing Industry publication websites Canadian Consumer Find/SVP Competitive annual reports Canadian Grocer Gale Research Business and strategy sites (e.g., Financial Post Interactive Advertising Bureau http://www.canadianbusiness.com) Financial Post Magazine Jupiter Research News alerts and online news searches Forbes Forrester Research (e.g., Google Alerts) Fortune MacLean Hunter Research Bureau Finance sites for publicly traded The Globe and Mail MapInfo Canada companies (e.g., Yahoo! Finance) Harvard Business Review Wikipedia (Always validate data from Journal of Advertising here!) Journal of Marketing Management The Free Library Journal of Personal Selling and Sales (http://www.thefreelibrary.com) Management Journal of Small Business Management Marketing Magazine Marketing & Media Decisions Marketing News © 2023 McGraw Hill Limited 7-18  External Secondary Data Sources – Bureau of Broadcasting Syndicated Data Provides broadcast measurement and consumer behaviour data, as well as intelligence to Measurement broadcasters, advertisers, and agencies on audience behaviours during and after broadcasts. (http://bbm.ca) GfK Mediamark Research Inc. Supplies multimedia audience research pertaining to media and marketing planning for advertised (http://www.gfkmri.com) brands. GfK NOP (http://www.gfknop.com) The mKids US research study tracks mobile telephone ownership and usage, brand affinities, and entertainment habits of American youth between 12 and 19 years of age. Ipsos Canada, Harris/Decima, Léger Provides polling services and marketing research on all aspects of marketing, including loyalty, Marketing, Angus Reid, SES branding, media analysis, pricing, position, image enhancement, customer satisfaction, focus groups, Research, EKOS Research Associates, online panels, and surveys across many industries. The Strategic Counsel, Pollara, and COMPAS J.D. Power and Associates Widely known for its automotive ratings, the company produces quality and customer satisfaction (http://www.jdpower.com) research for a variety of industries. National Purchase Diary Group Tracking services provide information about product movement and consumer behaviour in a variety (http://www.npd.com) of industries. Nielsen (http://www.nielsen.com) With its market measurement services, the company tracks data on the sales of consumer packaged goods, gathered at the point of sale in retail stores of all types and sizes. Print Measurement Bureau Provides single-source data on print readership, non-print media exposure, product usage, and (http://www.pmb.ca) lifestyles of Canadians. It uses an annual sample of 24,000 to measure the readership of more than 115 publications and consumer usage of more than 2,500 products and brands. Research and Markets Promotes itself as a “one-stop shop” for market research and data from most leading publishers, (http://www.researchandmarkets.co consultants, and analysts. m) Simmons Market Research Bureau Reports on the products American consumers buy, the brands they prefer, and their lifestyles, (http://www.smrb.com) © 2023 attitudes, and mediaMcGraw Hill Limited preferences. 7-19 Disadvantages of Secondary data ⚫ Secondary data may not be adequate to meet researchers’ needs: ⚫ data initially were acquired for some purpose other than the research question at hand, they may not be completely relevant. ⚫ it may not always be adequate to answer the research objective. ⚫ may be dated © 2023 McGraw Hill Limited 7-20 Primary Data Collection Techniques © 2023 McGraw Hill Limited 7-21  Qualitative Research Qualitative Research - Exploratory - Reliability Validity Sampling © 2023 McGraw Hill Limited 7-22 Qualitative Research Methods Observation Projective Social Techniques Media Methods Focus In-Depth Groups Interviews © 2023 McGraw Hill Limited 7-23  Qualitative Research Methods - Observation Examines purchase & consumption behaviour through personal or video camera observance Ethnography – study people in their daily life setting Domino’s observes its customers virtually. Customers earn Domino’s reward points when they upload photos of the pizza they have consumed to the app. By analyzing these photos, Domino’s learns people’s overall pizza preferences to develop better products in the future. © 2023 McGraw Hill Limited 7-24  Qualitative Research Methods – Social Media Provides valuable information that could aid their marketing research and strategy endeavours Sephora’s online community Beauty Insider is a valuable source of marketing research insights. This virtual community allows customers to ask questions, join groups, chat live with other customers, get advice, and post pictures. © 2023 McGraw Hill Limited 7-25  Qualitative Research Methods – Social Media Pros Results Cons Results Large accessible sample Greater objectivity Not a statistically Could skew findings representative sample People of all ages use Wider sample, greater Feedback may not be Not useful to research social media representation well thought out problem Large amount of Easier to find data Anonymity Could encourage information posted on related to your brand extreme opinions and social media sites comments Very current feedback High relevance No depth of information Cannot distinguish about consumer differences among consumers Consumers freely offer No interviewer bias Conversations are No opportunity to probe opinions and insights observed only for more detail Can search for and filter More timely No consent to study data Potential ethical issues data © 2023 McGraw Hill Limited 7-26  Qualitative Research Methods – In Depth Interview Trained researchers ask questions, listen to & record answers They then pose additional questions to clarify Although relatively expensive, in-depth interviews can reveal information that would be difficult to obtain with other methods. © 2023 McGraw Hill Limited 7-27  Qualitative Research Methods – Focus Groups A small group of people come together for an in- depth discussion Guided by a trained moderator An unstructured method of inquiry A&W tried to compete with the Quarter Pounder from McDonald’s with a 1/3 pound burger. It failed because customers believed that 1/4 pound was bigger than 1/3 pound. is used © 2023 McGraw Hill Limited 7-28  Quantitative Research Information confirms early insights Uses surveys, formal studies, scanner & panel data Test the prediction or hypothesis Survey research uses questionnaires to collect primary data. Questions can be either unstructured or structured. © 2023 McGraw Hill Limited 7-29 Quantitative Research Methods © 2023 McGraw Hill Limited 7-30 © 2023 McGraw Hill Limited 7-31  What To Avoid When Designing A Questionnaire Issue Good Question Bad Question Avoid questions the respondent cannot When was the last time you went to the How much money did you spend on easily or accurately answer. grocery store? groceries last month? Avoid sensitive questions unless they are Do you take vitamins? Do you dye your hair? absolutely necessary. Avoid double-barreled questions, which 1. Do you think Justin Trudeau would make Do you think that Elizabeth May or Justin refer to more than one issue with only one a good prime minister? Trudeau would make a good prime set of responses. 2. Do you think Elizabeth May would make a minister? good prime minister? Avoid leading questions, which steer Please rate how safe you believe a Volvo is Volvo is the safest car on the road, right? respondents to a particular response, on a scale of 1 to 10, with 1 being not safe irrespective of their true beliefs. and 10 being very safe. Avoid one-sided questions that present only To what extent do you feel that fast food Fast food is responsible for adult obesity: one side of the issue. contributes to adult obesity? 1: Does not Agree/Disagree contribute, 5: Main cause Avoid questions with implicit assumptions, Should children be allowed to drink Coca- Since caffeine is a stimulant, should children which presume the same point of reference Cola in school? be allowed to drink Coca-Cola in school? for all respondents. Avoid complex questions and those that What brand of wristwatch do you typically Do you believe that mechanical watches are may seem unfamiliar to respondents. wear? better than quartz watches? © 2023 McGraw Hill Limited 7-32  Web Surveys An important component of all quantitative surveys Ability to quickly design, launch, download & analyze data SurveyMonkey & Qualtrics are two popular online surveys Response rates are Online marketing surveys enable researchers to develop a database quickly, with many responses at a relatively low cost. relatively high vs. other methods © 2023 McGraw Hill Limited 7-33  Experimental Research systematically manipulates one or more variables to determine which variable(s) have a causal effect Using an experiment, McDonald’s would test the price of new menu items to determine which is the most profitable. © 2023 McGraw Hill Limited 7-34  The Ethics of Using Customer Information A strong ethical orientation must be an integral part of a firm’s marketing strategy and decision making. Using neuromarketing studies, Frito-Lay discovered that shiny potato chip bags (right) invoked feelings of guilt. Therefore, it switched its packaging to matte bags (left), and its potato chips sales grew. © 2023 McGraw Hill Limited 7-35  Ethical Dilemma 7.1: Vacuuming Up More Than Dirt: Information Collected By Roomba# As more firms adopt advanced marketing research technology, they must ensure they receive permission from consumers. Would you allow a Roomba vacuum cleaner to collect information about the layout of your home, and then sell that information to other companies? © 2023 McGraw Hill Limited 7-36