Unit 4 Marketing Research and Analytics PDF

Unit 4 Marketing Research and Analytics Introduction to Marketing (MR1073) Learning Objectives 4–1 Explain marketing research and marketing analytics 4-2 List the steps in the marketing research process 4-3 Discuss the impact of technology on marketing research and marketing analytics 4-4 Explain...

Unit 4 Marketing Research and Analytics Introduction to Marketing (MR1073) Learning Objectives 4–1 Explain marketing research and marketing analytics 4-2 List the steps in the marketing research process 4-3 Discuss the impact of technology on marketing research and marketing analytics 4-4 Explain how marketing analytics is used to develop a marketing strategy 4-5 Summarize the concepts related to the collection and use of marketing data 4-6 Describe when to conduct marketing research or when to use marketing analytics MARKETING RESEARCH AND MARKETING ANALYTICS • Marketing research: The process of planning, collecting and analyzing data relevant to marketing decisions • Marketing analytics: Use of data to optimize marketing decisions: THE MARKETING RESEARCH PROCESS EXAMPLE Let’s imagine you have started a company that sells ecofriendly household cleaning products… THE MARKETING RESEARCH PROCESS: STEP 1 Step 1: Identify and formulate the problem or opportunity. • The most important step in the process • “garbage in, garbage out” - the integrity of the output (results) is dependent on the integrity of the input (the problem) • That means if your market research consist of bad data, you're going to get bad answers. EXAMPLE 1: Identify and formulate the problem or opportunity • Conduct market research to identify a gap in the market for environmentallyconscious consumers who prefer green cleaning solutions over traditional chemicalbased products. • Target Market: middleclass families with a strong inclination towards eco-friendly products. THE MARKETING RESEARCH PROCESS: STEP 2 Step 2: Plan the research design and gather secondary data. • Which question(s) will be answered, how and when data will be gathered, and how the data will be analyzed • Determine which of two research designs to use: • Exploratory • Conclusive EXAMPLE 2: Identify and formulate the problem or opportunity Conduct Research to Identify Target Market: middle-class families with a strong inclination towards eco-friendly products. HOW? Free Tool Example: Google Analytics This Photo by Unknown Author is licensed under CC BY-SA SECONDARY DATA • Data that already exists • Internal to the company • Annual reports, financials, sales etc. • External, but already in existence Statistics Canada https://www.statcan.gc.ca/en/start Canadian Radio-Television and Telecommunications Commission (CRTC) https://crtc.gc.ca/eng/homeaccueil.htm The Vanier Institute for the Family https://vanierinstitute.ca/ Environics Research Group https://environicsanalytics.com/en-ca Marketing Research and Intelligence Association (MRIA) https://mria-arim.ca/ Canadian Institute of Marketing (CIM) https://cinstmarketing.ca/ THE MARKETING RESEARCH PROCESS: STEP 3 Step 3: Specify the sampling procedure. • Can’t talk to everyone, so must select a subset of the population—a sample 1. Population of interest must be defined 2. Must the sample be representative of population? I. Yes: Probability sample II. No: Nonprobability sample 3. Types of errors that can occur must be acknowledged. THE MARKETING RESEARCH PROCESS THE MARKETING RESEARCH PROCESS: STEP 4 Step 4: Collect primary data. PRIMARY DATA Most effective: Surveys, interviews, focus groups, and customer observation. THE MARKETING RESEARCH PROCESS Step 4: Collect primary data. PRIMARY DATA QUALITATIVE DATA • Qualitative data collection methods Depth Interviews Focus Groups • One-to-one • Costly • Time consuming • Small groups of people with different characteristics • Guided discussions PRIMARY DATA SURVEYS Survey Research • Online survey • Mall intercept interviews • Telephone interviews • Mail survey CHARACTERISTICS OF SURVEY DATA QUESTIONNAIRE DESIGN All surveys require a questionnaire. • Three types of questions • Open-ended • Close-ended • Scaled-response Typical Wording Problems WENDY'S EXAMPLE To obtain the most valuable information from consumers, the Wendy’s survey utilizes nine different kinds of questions This Photo by Unknown Author is licensed under CC BY-SA-NC THE MARKETING RESEARCH PROCESS Primary Data Collection • Observational research • Ethnographic research • Experiments Observational Research Ethnographic Research • Watching people in a natural setting to gain a deeper understanding of what makes people do what they do EXPERIMENTS Causal method of research to collect primary data • one or more variables is altered • observe the impact of the altered variables on another— generally sales • laboratory or field THE MARKETING RESEARCH PROCESS: STEP 5 Step 5: Analyze the data. • Interpret and draw conclusions from the mass of collected data. THE MARKETING RESEARCH PROCESS: STEP 6 Step 6: Prepare and present the report. • Clear, concise statement of the research issue studied; the objectives; and simple explanation of the methodology • Summary of major findings • Conclusion with recommendations Clear, concise statement of the research objectives Recommendations Conclusions Simple but brief description of methodology Summary of major findings THE MARKETING RESEARCH PROCESS: STEP 7 Step 7: Provide follow-up. • Internal research provider • Answer further questions and support decisions. • External research provider • Schedule follow-up with client to manage client relationship The Impact of Technology on Marketing Research and Marketing Analytics Uses of the Internet • Online surveys • Research panels • Focus groups • Online research communities Mobile Marketing Research • In-the-moment surveys via cell phone Social Media Marketing Research • The use of databases of social media sites SOCIAL MEDIA MARKETING RESEARCH Facebook, Twitter, LinkedIn How to measure the chatter Hootsuite https://www.hootsuite.com/research/social-trends The Impact of Technology on Marketing Research and Marketing Analytics Big data • Exponential growth in the volume, variety, and velocity of information • The development of complex new tools to analyze and create meaning from the data • Gathered both online and offline • Big data tool sets allow companies to understand consumer better The Impact of Technology on Marketing Research and Marketing Analytics BUT… how do you use or even access the data? • Data visualization • The engine for bringing patterns to light • Create ability for managers to share, describe, and explain what has been discovered Big data should be seen as disruptive to market research, but there is room for both. • Big data analytics can uncover who bought a product, how often, where, etc., but it doesn’t answer the question WHY. Marketing Analytics and Marketing Strategy Marketing Research • Simpler data analysis • Answers predefined questions Marketing Analytics • Larger data sets, morecomplex analysis methods • Seeks to find new insights Marketing Analytics & Marketing Strategy Data used in marketing analytics • Inside the company • Sales data from check-out scanning software • Website data • Interactions on social media sites • Other communications • Outside the company • Government sources • Supply chain partners • Commercial data sources ORGANIZING THE DATA The data must be organized: structured but flexible. • Data warehouse = marketing information system ANALYZING THE DATA: DATA MINING DIFFERENT CATEGORIES OF DATA Marketing Analytics and Marketing Strategy DATA COLLECTION ETHICS Intrusive Methods of Collection Data Sharing Transparency • Small and generally reasonably contained trade-offs • Voluntary, and we understand the impact • Larger reach and no consent • Facebook tracking of browser activity • Are consumers aware of how and when data are shared? • Sharing among apps and programs • Data sold to other companies When to Use Marketing Research or Marketing Analytics Competitive intelligence Environmental scanning MARKETING INTELLIGENCE