MKT

Marketing Research Ethics
Ethical approach to conducting marketing research that does no harm to the participant
Marketing information system (MIS)
– stores and analyzes data from a variety of sources and turns the data into information for useful marketing decision making
– routine (EX: enrollment data of students at NKU)
-internal secondary
MIS system includes 3 important components:
1. Types of data (Four)
2. Computer hardware and software (to analyze data and create reports)
3. information for marketing decisions
4 types of data (MIS)
1. Internal company data
2. Marketing intelligence
3. Marketing research
4. Acquired databases
Internal data
-Uses information from within the organization to produce reports on the results of sales and marketing activities
-operational, day-by-day
– EX: firms sales records: which customers buy which products etc.
-sources include company reports and previous research, and salesperson & customer feedback.
– cheapest and easiest
Intranet
Internal corporate communications network that links company departments, employees, and databases.
External data
•Data outside the company
•Detailed and thorough investigation required
•Secondary data
sources include-
-published research
-syndicated research
-government sources
Primary data (research)
Information collected by the researcher from original sources. Collected for specific reasons. Can be obtained through salesmen, dealers, and consumers. Costly.
-consists of exploratory, descriptive, and casual research
Secondary data (research)
Already existing data which has been collected and published by some individual or institution.
– consists of Internal and External sources
Marketing intelligence
– collects information from external sources
•Method by which marketers get information about everyday happenings in the marketing environment
•gathered by monitoring everyday sources; news articles, trade publications, web sites, sales people etc.
• Gathering information about competition
• external secondary data- data already gathered
Marketing research
• Collecting, analyzing, and interpreting data about customers, competitors, and the business environment to improve marketing effectiveness.
•Researchers design a particular study to answer a question that they have in mind
• Costly
-reduces risks of making mistakes in the company
Syndicated research
Firms collecting data on a regular basis and selling the reports to multiple firms. (Research packaged for sale)
•external secondary- already existing
Custom research
Conducted by a single fork to provide specific information it’s managers need
Cost vs. benefit
Typically more expensive than syndicated
Gathering “big” data
•possible because of barcodes
•rewards cards
•correlations made
•ex: target predicts pregnancy based off of unscented lotion sold
•ex: Google identified flu outbreak before CDC
Data mining
• The process of analyzing data from different perspectives and summarizing it into useful information – information that can be used to increase revenue, cuts costs, or both
•Internal secondary- Using old business records and data
– takes advantage of the massive amount of data available
-identify patterns and behaviors among different groups
Data Warehouse
used to store and process data
Acquired databases
-firms can acquire external databases from number of sources. – Government databases- US Census (data can be purchased)
Steps in the marketing research process
1. Define the problem
2. Determine the research design
3. Choose the method to collect data
4. Design the sample
5. Collect the data
6. Analyze and interpret the data
7. Prepare the research report
(READ PG. 109)
Which 2 systems provide the information marketers need in order to make good decisions?
MIS and MDSS
Exploratory (qualitative) research
-A technique that marketers use to generate insights for future, more rigorous studies.
-used to come up with ideas for new strategies and opportunities for a product.
– consists of customer reviews, focus groups, case studies, and ethnography’s.
Descriptive (quantitative) research
A tool that probes more systematically into the problem and bases its conclusions on large numbers of observations
– cross-sectional longitudinal
-averages, percentages, and other statistics being found.
-Used large samples
Cross-sectional Design
collection of responses to a consumer survey (questionnaire) from one or more samples of respondents.
Longitudinal Design
tracks the responses of the same sample of respondents over time.
Focus group
A product oriented discussion among a small group of consumers led by a trained moderator.
-used in exploratory research
Casual research
Attempts to understand cause and effect relationships
-EX: purchase of beer and diapers peak b/w 5 & 7PM.
consists of:
-laboratory research
-field studies
-experiments
telemarketing
businesses sell directly to consumers over the phone.
mall intercept
researchers recruit shoppers in malls or other public areas
Survey methods
Involve some kind of interview or other direct contact with respondents who answer questions
-Questionnaires (unstructured, structured, moderately structured, and mail
-Telephone interviews
-face-to-face interviews
-online questionnaire
Observational methods
-online research
-use of cookies
-predictive technology
Validity
extent to which research actually measures what it was intended to measure.
EX: Coca-cola classis VS. New coke
Cookies
Tracking web surfers moves
Probability sampling
A sample in which each member of the population has some known chance of being included. Ensures validity.
Non-probability sampling
Personal judgement is used to select respondents. Answer needed quickly.
convenience sample
individuals who just happen to be available at the time
3 Hierarchical levels of business planning
1. Strategic
2. Functional/ tactical
3. Operational
Strategic Planning
Managerial decision process that matches an organizations resources and capabilities to its market opportunities for long term growth survival. Highest level.
SBU’s
units that represent different areas of business within a firm. EX: disneys SBU is its theme park, TV network, and cruise line.
What the firm hopes to accomplish with a long-range business plan
Organizational/SBU objectives
Functional Planning
Marketing planning, human resources, and finance are involved. Most strategic. Short termed plans.
Operational Planning
Focuses on day to day execution of functional plans and includes detailed annual, semiannual, or quarterly plans.
Involved in creating buzz for a product, via social media.
Strategic Planning Process
1. define the mission
2. evaluate the internal/external environment
3. set organizational or SBU objectives
4. Establish business portfolio
5. develop growth strategies
mission statement
describes the overall purpose of the organization. what it tends to achieve in terms of its customers, products, and resources.
Situation analysis
assessment of the firms internal and external environment (uncontrollable).
SWOT analysis
analysis of the organizations strengths, weaknesses, opportunities, and threats in its environment. (internal and external environment)
Business portfolio
Product positioning
Develop marketing strategies in comparison to the competition
*Marketing Mix*
Moorse law
Moore’s law is the observation that, over the history of computing hardware, the number of transistors on a dense integrated circuit doubles approximately every two years.
Marketing decision support system (MDSS)
Tools that allow managers to conduct analyses and find the information they need to make better marketing decisions. (requires the use of intranet) . Allows managers to examine complex relationships among factors in the marketplace. Creating PERCEPTUAL MAPS.
Data mining (4 primary applications for marketers)
1. Customer acquisition
2. Customer retention and loyalty
3. Customer abandonment
4. Market basket analysis
Research design
A plan that specifies what information marketers will collect and what type of study they will do
Case study
Comprehensive examination of a particular firm or organization
Ethnography
An approach to research based on observations of people in their own homes or communities
external environment
-Elements outside the firm that may affect it
-Global and requires consideration of different trends.
-Trends can be threats or opportunities
Trends that can effect the external environment?
-Legal/political
-Economic
-Competitive
-Technological
-Sociocultural
Growth-market share matrix (BCG)
focuses on determining the potential of a firms existing successful SBU’s to generate cash that the firm can then use to invest in other businesses. (stars, cash cows, question marks, and dogs)
STARS
SBU’s with products that have a dominant market share in high-growth markets. Generate large revenue, but require large amounts of funding.
CASH COWS
dominant market share in a low growth potential market. Firms usually milk cash cows of their profits to fund the growth of other SBU’s.
QUESTION MARKS
Low market shares in fast growing markets.
DOGS
small share of a slow growth market.
Market penetration strategy
designed to increase sales of existing products to existing markets
Product Development Strategy
create growth by selling new products in existing markets. (breakfast all day at McDonalds.)
Market development strategy
Introduce existing products to new markets
diversification strategy
New products to a new target market