MKTG 440 Lecture Notes - Lecture 2: Employee Retention, Marketing Intelligence, Ethnography
Marketing Research and Info Systems - Feb 12, Feb 14
1. Marketing intelligence: every day info about developments in the mktg env that
decision makers use to prepare in order to adjust mktg plans; very important for 3
reasons
a. Orgs have expanded their marketing horizons from local to national/international
scope
b. Buyers have become less predictable and more selective in their purchase
decisions
c. Product differentiation has increased dramatically
2. Mgmt of info- common complaints:
a. Not enough of right kinds of info available to make good decisions; or too much
irrelevant info
b. Info is too dispersed for timely decision making; or arrives too late
c. Difficult to rely on accuracy and credibility of info
3. Marketing info systems: a formal system gathers data from multiple sources,
synthesizes it, and funnels it to decision makers
a. Marketing research system: manages and conducts info gathering on
necessary topics
b. Marketing intelligence system: gathers relevant info from outside of org
c. Internal reports system: gathers relevant info from within org’s internal
operations
d. Marketing analytical systems: includes mathematical tools that may be used in
order to predict future real world outcomes
e. Decision support systems: info system that allows managers to obtain and
manipulate info as they are making decisions
f. Common characteristics: interactive, flexible, discovery oriented, accessible
4. Database marketing: involves creation of large files of customers and potential
customers that includes profiles and purchase patterns
a. Micro marketing: mass mktg programs that are tailored to prospective buyers
on an individualized based; came from database mktg
5. Marketing research: the systematic planning, collecting, and analyzing of data that is
relevant to marketing decision making
a. 3 distinct roles:
i. Descriptive: gathering info about nature of what to research
ii. Diagnostic: explaining “what’s” and “why’s” of the data
iii. Predictive: answering the “what if” questions
b. Major areas of use: consumer survey research, competitor research, channel
research, env research
c. Research process:
i. Define problem: is it exploratory, descriptive, or causal
ii. Develop research plan: develop specific info needs and a plan that
specifies procedures to use
iii. Data collection
iv. Processing and analysis of collected data
find more resources at oneclass.com
find more resources at oneclass.com
v. Drawing conclusions
vi. Report to mgmt: on a formal or informal basis
vii. Feedback and evaluation: see how mgmt made use of info
d. Who does the research:
i. Company’s own personnel
ii. Outside mktg research agencies:
1. Syndicated research firm: gather periodic trade info within a
specific industry then selling findings to clients
2. Specialty-line research firm: do special research in chosen
areas of interest that are marketable enough to be sold
commercially to anyone that may have interest in topic
3. Custom mktg research firm: hired by a firm to design and carry
out a specific research project; firm owns all of info
Understanding Customer Requirements - Feb 16. Feb 19
1. Criteria for an effective service research program:
a. Includes qualitative and quantitative research
b. Includes expectations and perceptions of customers
c. Balances cost of research and value of info
d. Includes measures of loyalty, behavioral intentions, or actual behavior
2. Common means for answering questions:
a. Ask customers directly: mail, phone, face to face, in groups, online
b. Observing customers: anthropological tools, qualitative depth
c. Get info from employees and front line service providers
d. Database mktg research: use customer info files, capture behavior through
data analysis
3. Elements in an effective customer research program:
a. Complaint solicitation: to identify dissatisfied customers and common failure
points
b. Critical incident studies: to identify strengths and weaknesses and customer
requirements; customers write scenarios from their perspective about good or
bad interactions then employees do the same and look for themes
c. Relationship surveys & SERVQUAL: to track and assess performance and
compare to competition; to assess gaps
d. Posttransaction surveys: to obtain immediate performance feedback; to use as
input for process improvements
e. Social media: to measure impact of other advertising; to encourage + WOM
f. Market-oriented ethnography: to research customers in natural setting in an
unbiased way
g. Mystery shopping: to measure individual employee performance
h. Customer panels: to monitor changing customer expectations
i. Lost customer research: to identify reasons for defection
j. Future expectations research: to forecast future expectations and develop new
ideas
find more resources at oneclass.com
find more resources at oneclass.com
4. Using mktg research info: understanding how to make the best use of research is key
to closing the gap
5. Research for upward communication:
a. Executive visits to customers
b. Executive or management listening to customers
c. Research on intermediate customers
d. Research on internal customers
e. Executive or management listening approaches to
f. employees
g. Employee suggestions
Customer Retention Strategies - Feb 19, Feb 21, Feb 23(a lot on exam)
1. Relationship mktg: focuses on keeping customers and improving relationships with
them; doesn’t necessarily emphasize acquiring new ones
a. Cheaper than attracting new ones
2. Customer retention: focusing firm’s effort to existing customers (as opposed to
conquest mktg)
a. Benefits for customer: greater value, confidence (trust), social (familiarity,
personal relationships), special treatment (deals, price breaks)
b. Benefits for firm: economic (increased revenues, reduced mktg costs),
customer behavior (strong WOM, mentors to other customers), HR mgmt (easier
for employees, employee retention)
3. Bucket theory of mktg: can increase revenue by both new customers and increased
purchases by existing customers
a. Can lose customers or have decreased purchases
4. Benefits of retention:
a. Profits derived from increased sales: retention influences amount spent and
how often customers spend
b. Profits derived from reduced operating costs: costs 3-5 times less to keep a
customer than get a new one
c. Profits derived from referrals: positive WOM can add new sales and reinforce
retention
5. Retention tactics
a. Maintain proper perspective
b. Remember customers
c. Build trusting relationships
d. Monitor service delivery process
e. Properly install equipment
f. Train customer
g. Develop follow-up and service recovery
h. Provide extra effort
6. The customer pyramid
a. Platinum tier: most profitable, not overly price sensitive, committed
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Processing and analysis of collected data: drawing conclusions, report to mgmt: on a formal or informal basis. Includes satisfaction, perceived quality, perceived value: switching barriers: customer inertia, switching costs. Passives: least likely to take any action, say anything, spread - wom, or complain to a third party; doubt the effectiveness of complaining. Voicers: actively complain to provider but not likely to spread - wom; believe in + consequences of complaining. Voices: high voice: complaint to supervisor/manager, medium voice: complaint made to front-line personnel, low voice: complaint not made to anyone in firm. Easy to understand: customers need to understand what to expect; employees need to understand what to do. Firms stressing functional aspects of service quality: require greater customization and fewer cost efficiency procedures. Start ups: new services for current target market. Specify time frames for each activity: determine costs.
