Textbook Notes (368,192)
Canada (161,707)
York University (12,820)
Marketing (116)
MKTG 2030 (84)
Ben Kelly (18)
Chapter

ch 3_

7 Pages
41 Views
Unlock Document

Department
Marketing
Course
MKTG 2030
Professor
Ben Kelly
Semester
Winter

Description
Chapter 3: Marketing Research: Gather, Analyze, and Use Information 3.1 Knowledge is Power - To make good decisions, marketers must have info that’s accurate, up to date, and relevant - To understand these needs, conduct marketing research Marketing research ethics refers to taking an ethical and above board approach to conducting marketing research that does no harm to the participant in the process of conducting the research - Very clear when they work with research respondents about how they’ll use the data and give residents full disclosure on their options for confidentiality and anonymity - Firms who abuse the trust of respondents run a serious risk of damaging their reputation The Marketing Information System Marketing Information System (MIS) is a process that first determines what info marketing managers need and then gathers, sorts, analyses, stores, and distributes relevant and timely marketing info to system users It has 3 important components: 1) Four types of data (internal company data, marketing intelligence, marketing research, and acquired databases) 2) Computer hardware and software to analyze the data and to create reports 3) Output for marketing decision makers - Various sources ‘feed’ the MIS with data and the systems software ‘digests’ it Internal Company Data - It uses info from within the org to produce reports on the results of sales and marketing activities - This data includes the firm’s sales records- info such as which customers buy which products, quantities and at what intervals, which items are in stock and which are back- ordered (b/c they’re out of stock), when items were shipped, and which have been returned b/c they’re defective Intranet is an internal corporate communication network that uses Internet technology to link company departments, employees, and databases - People one the field can use an intranet to access their company’s MIS- better serve their customers, b/c they have immediate access to info - People in direct contact w/ customers can enter their reports directly into the system- means that upper management has a way to learn info about changes in sales patterns and new sales opportunities; head managers can view monthly sales reports to measure progress toward sales goals and market share objectives Marketing Intelligence Marketing intelligence system is a method by which marketers get info about everyday happenings in the marketing environment; a method by which marketers get info about what’ going on in the world that’s relevant to their business; predict fluctuations in sales, forecasting the future, so they’ll be on top of developing trends (I.e ‘staycation’ phenomenon) Marketing Research Marketing Research refers to the process of collecting, analyzing, and interpreting data above customers, competitors, and the business environment to improve marketing effectiveness - Market research is called for when managers need unique info to help them make specific decisions - The better a firm is at obtaining valid marketing info- more successful - Virtually all companies rely on some form of marketing research, through the amount and type of research conducted varies dramatically Syndicated research is general info that specialized firms collect on a regular basis and then sell to other firms - Doesn’t provide all the answers to marketing questions, b/c the info it collects is typically broad but shallow; gives good insights about general trends Custom research is research a single firm conducts to provide answers to special questions - Some firms maintain an in-house research dept., others hire outside research companies - Marketers use marketing research to identify opportunities for new products, to promote existing ones, or to provide data about the quality of their products, who uses them, and how Acquired Databases - Large amount of info that can be useful is available in the form of external databases (I.e. government databases) - Use of certain databases for marketing purposes has come under gov’t scrutiny b/c it’s potential invasion of privacy The Marketing Decision Support System Marketing Decision Support System (MDSS) is the data, analysis software, and interactive software that allow managers to conduct analyses and find the info they need - Sophisticated statistical and modeling software tools - Statistical software allows managers to examine complex relationships among factors in the marketplace - Modeling software allows decision maker to examine possible or preconceived ideas about relationships in the data- to ask ‘what if’ questions 3.2 Searching for Gold: Data Mining Data mining is sophisticated analysis techniques to take advantage of the massive amount of transaction info now available; sift through data to identify unique patterns of behavior among different customer groups - Combine different databases to understand relationship among buying decisions, exposure to marketing messages, and in-store promotions - Data warehouses store and process data - A ‘cookie’ is a small piece of info sent by a Web server to store on a Web browser so it can later be read back from the browser; track click behavior and online flow patterns Uses of Data Mining Customer Acquisition: many firms include demographic and other info about customers in their database Customer retention and loyalty: identifies big-spending customers and targets them for special offers and inducements other customers won’t receive; keeping good customers is less expensive than constantly finding new ones Customer abandonment sometimes a firm wants customers to take their business elsewhere, b/c servicing them actually costs the firm too much (i.e. loyalty cards) Market based analysis focused promotional strategies are developed based on records of which customers have bought certain products 3.3 Steps in the Marketing Research Process - Marketing research is an ongoing process Step 1: Define the Research Problem 1. Specify the research objectives: What questions will the research attempt to answer? 2. Identify the consumer population of interest: What are the characteristics of the consumer group(s) of interest? 3. Place the problem in an environmental context: What factors in the firm’s internal and external business environment might influence the situation? - There are many potential other research objectives that might exist revolving around any number of questions (p. 97) - The particular objective researchers choose depends on a variety of factors i.e. the feedback gets from customers, the info it receives from the marketplace and sometimes even the intuition of the people who design the research - The research objective determines the consumer population the company will study Step 2: Determine the Research Design - Once the problem is isolated, need to decide a ‘plan of attack’ Research design specifies what info marketers will collect and what type of study they’ll do Secondary Research Secondary data is data that have been collected for some purpose other than the problem at hand; firm saves time and money- expenses have already been incurred - Marketers can readily turn to the Internet or numerous external info sources Primary Research Primary data info gathered directly from respondents to address a specific question at hand; demographic and psychological info about customers and prospects, customers’ attitudes and opinions about products and competing products, and their awareness or knowledge about a product and their beliefs Primary Data Secondary Data Cost method More affordable Generating new info Reprocess and reuse collected info Latest info Past info Completely tailor-made Obtained effortlessly Time consuming Readily available Exploratory (Qualitative) Research Exploratory research is a technique that marketers use to generate insights for future, more rigorous studies - Small scale and less costly - Marketers test their hunches - Probing a few consumers who fit the profile of the ‘typical’ customer - Mostly is qualitative (nonnumeric and instead might be detailed or visual info, form of words) Focus group is a product-oriented discussion among a small group of consumers led by a trained moderator - Used to collect exploratory data - Groups typically consist of 5-9 consumers who share certain characteristics and they discuss a marketing topic a discussion leader introduces- leader records these group discussions - Focus groups can go on in cyberspace; social-networking sites – profile pages and post to discussion boards, administer polls, chat in real time; rapid back-and-forth, real-time data collection, can substantially shorten the product development cycle Case study is a comprehensive examination of a particular firm or org - B2B market research might have researchers learn how one particular company makes its purchase - Goal- to identify the key decision makers, to learn what criteria they emphasize when choosing among suppliers, and perhaps learn something about any conflicts and rivalries among these decision makers that may influence their choices Ethnography is an approach to research based on observations of people in their own home or communities Descriptive (Quantitative) Research Descriptive (quantitative) research is a tool that probes more systematically into the problem and bases its conclusions on large number of observations Cross-sectional design a type of descriptive technique that involves the systematic collection of quantitative info Longitudinal design tracks the responses of the same sample of respondents over time - Can be quite beneficial for marketers- but can be cost prohibitive Causal Research Causal research attempts to identify cause-and-effect relationships Experiments is a technique that tests pre-specified relationships among variables in a controlled environment Step 3: Choose the Method to Collect Primary Data Data Collection Pros Cons Method Mail - Respondents feel - May take a long time for questionnaires to be Questionnaires anonymous returned - Low cost - Low rate of response, many may not return - Good for ongoing research questionnaire - Inflexible questionnaire - Length of questionnaire limited by respondent interest in the topic - Unclear whether respondents understand the questions - Unclear who is responding - No assurance that respondents are being honest - Telephone - Fast - Decreasing levels of respondent cooperation interviews - High flexibility in q
More Less

Related notes for MKTG 2030

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit