Marketing: Chapter 4 (Test 1) – Flashcards

fresh understandings of customers and the marketplace derived from marketing information that become the basis for creating customer value and relationships

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 -a good MIS balances the information users would like to have against what they really need and what is feasible to offer

1. internal databases 2. competitive marketing intelligence 3.marketing research

electronic collections of consumer and market information obtained from data sources within the company network -the marketing department furnishes info on customer characteristics, sales transactions and website visits (each department looks at different records) -accessed more quickly and cheaply but because internal information is collected for other purposes, can be int he wrong form for making marketing decisions

the systematic collection and analysis of publicly available information about consumers, competitors and developments in the marketing environment -goal is to improve strategic design decision making by understanding the consumer env't, assessing and tracking competitors actions and providing early warnings of opportunities and threats -techniques range from observing consumers firsthand, quizzing company's own employees, benchmarking competitors' products, researching the internet, monitoring internet buzz

the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization -marketing research gives marketers insights into customer motivations, purchase behavior, and satisfaction -3 types- exploratory, descriptive, casual

1. define the problem and research objectives 2.develop the research plan for collecting information 3. implement the research plan--collecting and analyzing the data 4. interpret and report the findings

marketing research to gather preliminary information that will help define problems and suggest hypotheses

marketing research to better describe marketing problems, situations or markets, such as the market potential for a product or the demographics and attitudes of consumers

marketing research to test hypotheses about cause and effect relationships

information that already exists somewhere, having been collected for another purpose

information collected for the specific purpose at hand

-provides good starting point -companies can buy secondary data from outside suppliers ex-Nielsen sells shopper insight data from a consumer panel with measures of trial and repeat purchasing, brand loyalty and buyer demographics -using commercial online databases (ProQuest, Nexis) -using internet search engines -benefits- can be obtained more quickly and at a lower cost than primary data -costs-researchers can rarely obtain all the data they need from secondary sources, must make sure secondary information is accurate, current, impartial

-Calls for a number of decisions on research approaches, contact methods, the sampling plan, and research instruments

1. observational research 2.ethnographic research 3. survey research 4. experimental research

gathering primary data by observing relevant people, actions and situations ex- Trader joe's might evaluate possible new store locations by checking traffic patterns, neighborhood conditions, locations of competing Whole Foods and Fresh Market

a form of observational research that involves sending trained observers to watch and interact with consumers in their "natural environment." Provides a window into customers' unconscious actions and unexpressed needs and feelings -Netnography research: observing consumers in a natural context on the internet. observing people as they interact on and move about the internet and provide useful insights into both online and offline buying motives and behavior

gathering primary data by asking people questions about their knowledge, attitudes, preferences and buying behavior. -best suited for gathering descriptive info -benefits: flexibility; can be used to obtain many kinds of info in many situations -problems: sometimes unable to answer survey questions because they cannot remember or have never thought about what they do and why the do it, may be unwilling to respond, may answer survey questions even when they don't know the answer to appear smarter or more informed, may try helping interviewer by giving pleasing answers, busy people may not take the time, resent the intrusion

gathering primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors and checking for differences in group responses -best suited for gathering causal information

Information can be collected by 1. mail 2. telephone 3. personal interview 4. mail

(+) collect large amounts of data, low cost per respondent, more honest answers, no interviewer is involved to bias respondents' answers (-) not very flexible- all respondents answer same questions in a fixed or order, take longer to complete, response rate is very low, researcher has little control over the mail questionnaire sample

(+)best method for gathering info quickly, great flexibility, interviewers can explain difficult questions, skip some questions or probe on others, response rates are higher (-) cost per respondent is higher, people are private, interviewer bias (the way the interviewers talk, how they ask questions) increase in hanging up the phone then talking to them

1. individual interviewing- talking with people in their homes, offices, street (+) flexible, can show products (-) costly 2. Group interviewing- inviting 6-10 people to meet with a trained moderator to talk about product, service, organization. Gather for a few hours and the interviewer "focuses" the group discussion on important issues (+) major qualitative marketing research tools for gaining fresh insights into consumer thoughts and feelings (-) small samples to keep costs and time down, hard to generalize from results, people are not always honest and open overcome these problems: immersion groups- small groups of consumers who interact directly and informally with product designers without a focus group moderator present. changing the environments

collecting primary data online through internet surveys, online focus groups, web-based experiments or tracking consumers' online behavior (+)well suited to quantitative research-conducting marketing surveys and collecting data; replacing mail and telephone, speed, low costs (puts online research within reach of almost any business), interactive, engaging, higher response rates (-) controlling who's in the online sample

gathering a small group of people online with a trained moderator to chat about a product, service or organization and gain qualitative insights about consumer attitudes and behavior

-who is to be studied (what sampling unit) -how many people should be included -how should people in the sample be chosen (what sampling procedure) *ideally, sample should be representative so that the researcher can make accurate estimates of the thoughts and behaviors of the larger proportion

-managing detailed information about individual customers and carefully managing customer touch points to maximize customer loyalty -CRM analysts develop data warehouses and use sophisticated data mining techniques -by using CRM to understand customers better, companies can provide higher levels of customer service and develop deeper customer relationships -(-) common to view CRM as a technology and software solution only

a company-wide electronic database of finely detailed customer information that needs to be sifted through for gems

-marketing information has no value until it is used to gain customer insights and make better marketing decisions -must update decision makers on current marketing information through performance and research reports -additional non routine info must be readily available for on-the-spot decisions -CRM helps facilitate this process--> intranets, extranets

real time customer information, reports and shared work documents made available to employees

some companies are increasingly allowing key customers and value-network members to access account, product and other data on demand *suppliers, customers, resellers and select other network members may access their accounts, arrange purchases and check orders against inventories to improve customer service

-many large scale research studies are too costly for the budgets of small companies -most of the same research techniques can still be used in a less formal manner (secondary data collection) at little or no cost to the company -managers must be careful when conducting inexpensive, small scale studies. Small sample sizes are only effective if the proper questions are asked and biases are avoided.

International researchers follow the same steps as domestic researchers however they face many more problems: 1. Deal with diverse markets in many different countries that vary in levels of economic development, cultures, customs and buying patterns 2. Difficulty finding reliable secondary data-information that is regularly collected in the US can be difficult to find or nonexistent in other countries 3. Cant rely on telephones, internet or mail. mostly door to door visits 4. Different languages and dialects increase research costs or risk of error **although costs and difficulty of international market research is very high, the potential risk of not completing this research is much greater

Marketing research should benefit both the companies and the consumers but it has the potential to harm them instead-->1. intrusions on consumer policy 2. misuse of research findings

-consumers are concerned about their privacy -trade off between personalization and privacy -industry does not have regulations or official ways to report intrusions -CPO: safeguard the privacy of consumers

-research results often used for aims in advertising -not completely rigged or misinterpreted, some claims can be considered a "stretch" -ex frosted mini wheats -American Marketing Association, Marketing Research Association and Council of American Survey Research Organization-->developed codes of research ethics and standards of conduct -However unethical actions cannot simply be regulated away-->each company must accept responsibility for policing the conduct and reporting of its own marketing research