CHAPTER 3 SCANNING THE MARKETING ENVIRONMENT & CONDUCTING MARKETING RESEARCH 3-1

Transcription

1 CHAPTER 3 SCANNING THE MARKETING ENVIRONMENT & CONDUCTING MARKETING RESEARCH 3-1

2 Importance of information in marketing The major responsibility for identifying significant marketplace changes falls to the company s marketers. More than any other group in the company, they must be the trend trackers and opportunity seekers. Although every manager in an organization needs to observe the outside environment, marketers have the following advantages: They have disciplined methods for collecting information and They spend more time interacting with customers and observing competition. 3-2

3 What is a Marketing Information System (MIS)? A marketing information system consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers. 3-3

4 Components of the MKIS 1. Internal company records. 2. Marketing intelligence activities. 3. Marketing research. The company s marketing information system should be a cross between what managers think they need, what managers really need, and what is economically feasible. 3-4

5 Information Needs Probes What decisions do you regularly make? What information do you need to make these decisions? What information do you regularly get? What special studies do you periodically request? What information would you want that you are not getting now? What are the four most helpful improvements that could be made in the present marketing information system? 3-5

6 Internal Records and Marketing Intelligence Order-to-Payment Cycle Databases, Warehousing, Data Mining Sales Information System Marketing Intelligence System 3-6

7 Order-to-Payment Cycle 3-7

8 Internal Records and Marketing Intelligence Marketing mangers rely on internal reports on orders, prices, costs, inventory levels, receivables, payables, and so on. By analyzing this information, they can spot important opportunities and problems. Order-to-Payment Cycle The heart of the internal records systems is the order-topayment cycle. Sales Information Systems Marketing managers need timely and accurate reports on current sales. Companies must carefully interpret the sales data so as not to get the wrong signals. Technology software and hardware helps managers to collect, process and disseminate market information rapidly. 3-8

9 Databases, Data Warehouses and Data Mining Today companies organize information in databases customer databases, product databases, salesperson databases and then combine data from the different databases. Companies warehouse these data for easy accessibly to decision makers. By hiring analysts skilled in sophisticated statistical methods, companies can mine the data and garner fresh insights into: Neglected customer segments. Recent customer trends. Other useful information. The customer information can be cross-tabbed with product and salesperson information to yield still deeper insights. 3-9

10 Marketing intelligence system A marketing intelligence system is a set of procedures and sources managers use to obtain everyday information about developments in the marketing environment. Marketing managers collect marketing intelligence by: Reading books, newspapers, and trade publications. Talking to customers, suppliers, and distributors. Meeting with other company managers. 3-10

11 Steps to Improve Marketing Intelligence Train sales force to scan for new developments Motivate channel members to share intelligence Network internally and externally Utilize a customer advisory panel Utilize government data resources Purchase information from agencies Collect customer feedback online 3-11

12 The importance of market information: Good marketers want insights to help them interpret past performance as well as plan future activities. They need timely, accurate, and actionable information on consumers, competition, and their brands. They also need to make the best possible tactical decisions in the short run and strategic decisions in the long run. 4-12

13 Types of Marketing Research Firms 1. Syndicated-service research firms These firms gather consumer and trade information, which they sell for a fee. Example: A.C. Nielsen Media Research. 2. Custom marketing research firms These firms are hired to carry out specific projects. They design the study and report the findings. 3. Specialty-line marketing research firms These firms provide specialized research services. The best example is the fieldservice firm, which sells field interviewing services to other firms. 4-13

14 Small companies and MR Small companies can hire the services of a marketing research firm or conduct research in creative and affordable ways, such as: Engaging students or professors to design and carry out projects. Using the Internet. Checking out rivals. Tapping into marketing partner expertise. 4-14

15 The Marketing Research Process Define the problem Develop research plan Collect information Analyze information Make decision Present findings

16 Step 1: Problem Definition, the Decision Alternatives and Research Objectives Marketing management must be careful not to define the problem too broadly or too narrowly for the marketing researcher. Some research is exploratory its goal is to shed light on the real nature of the problem, develop hypotheses and to suggest possible solutions or new ideas. Qualitative methods focus groups, in-depth interviews Some research is descriptive it seeks to ascertain accurately the variables being considered. Quantitative methods - surveys Some research is causal its purpose is to test whether one variable causes an effect in another 4-16

17 Marketing research brief Background summary: intro to company, products Management problem: why this research is undertaken, which business decisions are dependent upon its outcome Marketing research questions: a detailed list of information necessary to make decisions Intended scope of research: areas to be covered, which industries, type of customer etc. Tendering procedures (if outsourced): how agencies are selected, inclusion of personnel CVs, referee 4-17contact addresses, report layout etc.

18 4-18 An example of a research brief:

19 Step 2: Develop the Research Plan The second stage of the marketing research calls for developing the most efficient plan for gathering the needed information. Research Approaches: Marketers collect primary data in five main ways: through observation, focus groups, surveys, behavioral data, and experiments. 4-19

20 Step 2: Develop the Research Plan Data Sources Research Approach Research Instruments Sampling Plan Contact Methods

21 Data Sources Secondary data Data that was collected for another purpose and already exists Primary data Data that are freshly gathered for a specific purpose or for a specific research project Secondary data is the starting point for MR- lower costs and ready availability 4-21

22 Research Approaches Observation Focus Group Survey Research Behavioral Data Experimentation 4-22

23 Observational Research Fresh data can be gathered by observing the relevant actors and settings. Ethnographic research is a particular observational research approach that uses concepts and tools from social sciences to provide a deeper understanding of how people live and work. 4-23

24 Focus Group A focus group is a gathering of six to ten people who are carefully selected based on certain demographic, psychographic, or other considerations and brought together to discuss various topics of interest at length. A professional research moderator provides questions and probes based on a discussion guide or agenda to ensure that the right material gets covered. Moderators attempt to track down potentially useful insights as they try to discern the real motivations of consumers and why they are saying and doing certain things. The sessions are typically recorded. 4-24

25 Survey research Companies undertake surveys to learn about people s knowledge, beliefs, preferences, and satisfaction, and to measure these magnitudes in the general population. 4-25

26 Behavioral Data Customers leave traces of their purchasing behavior in store scanning data, catalog purchases, and customer databases. Much can be learned by analyzing these data. Customers actual purchases reflect preferences and often are more reliable than statements offered to marketing researchers. 4-26

27 Experimental Research The most scientifically valid research is experimental research. The purpose of experimental research is to capture cause-and-effect relationships by eliminating competing explanations of the observed findings. Experiments call for: Selecting matched groups of subjects. Subjecting them to different treatments. Controlling extraneous variables. Checking whether observed response differences are statistically significant 4-27

28 Research Instruments Marketing researchers have a choice of three main research instruments in collecting primary data: questionnaires, qualitative measures, and mechanical devices. 4-28

29 Questionnaires A questionnaire consists of a set of questions presented to respondents. Because of its flexibility, the questionnaire is by far the most common instrument used to collect primary data. Questionnaires need to be carefully developed, tested, and debugged before being administered. The researcher carefully chooses the questions, wording, and sequence. The form of the question can influence the response. Marketing researchers used both closed-end and openend questions. 4-29

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33 Sampling Plan Sampling unit: Who is to be surveyed? Define the target population that will be sampled. Sample size: How many people should be surveyed? Large samples give more reliable results than small samples. Sampling procedure: How should the respondents be chosen? Probability sampling allows the calculation of confidence limits for sampling error. 4-33

34 Contact Methods Mail Questionnaire Telephone Interview Once the sampling plan has been determined, the marketing researcher must decide how the subject should be contacted: mail, telephone, personal, or online interview. Personal Interview Online Interview 4-34

35 Mail Questionnaire The mail questionnaire is the best way to reach people who would not give personal interviews or whose responses might be biased or distorted by the interviewers. Mail questionnaires require simple and clearly worded questions. The response rate is usually low and/or slow. 4-35

36 Personal Interviewing Personal interviewing is the most versatile method. The interviewer can ask more questions and record additional observations about the respondent. It is the most expensive method. Subject to interviewer bias or distortion. Personal interviewing takes two forms: Arranged interviews. Intercept interviews. Online Interview: There is an increase in the use of online methods 4-36

37 Advantages Inexpensive Faster Pros and Cons of Online Research People - more honest online More versatile Disadvantages 4-37 Samples - small & skewed Excessive turnover due to boredom Prone to technological problems & inconsistencies

38 The Marketing Research Process Step 3: Collect the Information Data collection expensive, prone to error Get right respondents - critical Data collection improve - technology Protect personal data of respondents 4-38

39 The Marketing Research Process Step 4: Analyze the Information Extract findings from collected data Tabulate & develop frequency distribution Averages & dispersion computed - variables Advanced statistical techniques & decision models 4-39

40 The Marketing Research Process Step 5: Present the Findings The researcher present findings relevant to major marketing decisions facing management Researchers need to play a more proactive consulting role in translating data and information into insights and recommendations. 4-40

41 The Marketing Research Process Research findings only provide additional information and insight to managers. Depending on their confidence in the finings, managers decide to use it, discard it or carry out more research. Marketing decision support system (MDSS) Coordinated collection of data, systems, tools & techniques, with software & hardware by which organization gathers & interprets relevant information from business & environment & 4-41 Step 6: Make the Decision used for marketing action