Chapter 4, Marketing, An Introduction; Armstrong and Kotler, 12th edition

Customer insights
Fresh understandings of customers and the marketplace derived from marketing information that become the basis for creating customer value and relationships
Marketing information system (MIS)
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
Internal databases
Electronic collections of consumer and market information obtained from data sources within the company network
Competitive marketing intelligence
The systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketing environment
Marketing research
The systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization
Exploratory research
Marketing research to gather preliminary information that will help define problems and suggest hypotheses
Descriptive research
Marketing research to better describe marketing problems, situations, or markets, such ast the market potential for a product or the demographics and attitudes of consumers
Casual research
Marketing research to test hypotheses about cause-and-effect relationships
Secondary data
Information that already exists somewhere, having been collected for another purpose
Primary data
Information collected for the specific purpose at hand
collected to provide relevant information to a specific project
Observational research
Gathering primary data by observing relevant people, actions, and situations
Ethnographic research
A form of observational research that involves sending trained observers to watch and interact with consumers in their “natural environments”
Survey research
Gathering primary data by asking people questions about their knowledge, attitudes, preferences, and buying behavior
Experimental research
Gather primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses
Focus group interviewing
Personal interviewing that involves inviting 6 to 10 people to gather for a few hours with a trained interviewer to talk about a product, service, or organization. The interviewer “focuses” the group discussion on important issues
Online marketing research
Collecting primary data online through Internet surveys, online focus groups, Web-based experiments, or tracking consumers’ online behavior
Online focus groups
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
Behavioral targeting
Using online consumer tracking data to target advertisements and marketing offers to specific consumers
Sample
A segment of the population selected for marketing research to represent the population selected for markering research to represent the population as a whole
Customer relationship management (CRM)
Managing detailed information about individual customers and carefully managing customer tough points to maximize customer loyalty
Market Research Process
1. Define the Problem
2. Design the Research
3. Conduct the Research
4. Analyze the Data
5. Address the Problem
Consumer Behavior Research
the process of planning, collecting, and analyzing data relevant to understand consumers
Descriptive Research
gathering and presenting factual statments
Diagnostic Research
explaining the data
Predictive Research
attempting to estimate the results of a planned marketing decision
Sources of Secondary Data
Internal Corporate Information; Government Agencies; Trade and Industry Associations; Marketing Research Firms; Commercial Publications; News Media
Advantages of Secondary Data
-saves time and money if on target
-aids in determining direction for primary data collection
-pinpoints the kinds of people to approach
-serves as a basis of comparison for other data
Disadvantage of Secondary Data
-may not give adequate detail info
-may not be on target with problem
-quality and accuracy may be a problem
Advantage of Primary Data
-answers a specific research question
-data are current
-source of data is known
-secrecy can be maintained
Disadvantages of Primary Data
-Expensive
-“piggybacking” may confuse respondents
-quality declines if interviews are lengthy
-reluctance to participate in lengthy interviews
Open-Ended Question
encourages an answer phrased in respondent’s own words
Closed-Ended Question
asks respondent to make a selection from a limited list of responses
Scaled-Response Question
closed-ended question designed to measure intensity of respondent’s answer
Market Test
studies the effectiveness of one or more elements of the marketing mix evaluating sales of the product in an actual market