MARKETING REVIEW- TEST #2Chapter 8- Marketing ResearchMarketing Research- Process of defining a marketing problem and opportunity, systematically collecting and analyzing information and recommending actions- Does not provide answers, provides information to managers to interpret information about different consumers- Must overcome difficulties and obtain information needs so marketers can make reasonable estimates about what consumers want and will buyo EX) Movie “Big”- Tom Hanx is a little kid in older body, to understand consumer you have to get into the mind of consumer- Uses for Marketing Researcho Environmental scanningo Demand forecasting- try to understand specifically how its going to affect sales of product, very important to predict demand so can have right amount of production EX) study was done to predict sales of product by number of tweets on twitter- 3 movies- “My life in ruins”, “Land of the lost”, “The hangover”- looked at # of tweet day before movie opened, hangover had most- Looked at sales after one week- hangover had most- After week one tweets decreased for first 2 movies but remained the same for the hangovero Segmentation- understanding consumerso Market tracking- sales changing (better or worse), scanner panels* (most valuable), scanning data, scan customers track of what they buyo New product testingo Ad pre-testing- ex) eye tracking- company that analyzes where consumers eyes are attracted to- makes sure consumer is looking or getting the message, track order in which people pay attentiono Product positioning- how people see your product, need to do market researcho Test marketing- testing products5 Step marketing research approach:1. Define the Problem- 2 key elementsa. Set research objectives- research and objectives are specific, measurable goals the decision maker seeks to achieve in conducting the research- Marketers need to be clear on purpose of research that leads to marketing actions- Marketing Information System (MIS)- an integrated decision support system, constantly collects information, and designs it so its useful1. MIS Data Classification- based on 2 dimensionsa. Source of data internal to the company or do you have to go outside to get it?b. Primary data collected for a specific purpose or secondary data already collected and revisiting for adifferent purpose than it was collected forTypes of External Primary Research3 Types of research- Exploratory Research- provides idea about relatively vague problem, what you do in early stages of market research, not really sure what looking for but very open minded1. Observations- watch consumers, set up ways to mirror2. Depth interviews- bring consumers in and interview, very expensive, not done often3. Focus group- like depth interview but usually have about 10 consumers at a time, good for getting ideas but not for representation- Descriptive Research- trying to find frequency that something occurs or extent of a relationship between two factors, very specific about information you want (usually information to describe some characteristic of population1. Observation- a lot more quantification- personal observation (Fischer price has little kids test out toys, more natural than survey) automated observation (IRI- scanner panel data- have data bases of what people are buying, howmuch they are paying)2. Survey- most common way, can chose different methods, most common is survey through mail even though low response rate (15-20%)a. Problem- you don’t know what you have because not everyone responds3. Trying to describe specific population, but typically you cant do a census (only government can afford) if cant afford census, they take a sample (subset of people chosen from population)4. 2 key Factorsa. Populationb. Sample- good sampling need to chose certain people within a population to represent everyone (cross-section of people), if chosen at random then sample will most likely represent populationi. Response rate- out of all people selected in sample how many actually comply and participateii. Representiveness- did people drop out at random or was their something systematic going oniii. Error (bias)- anything that causes sample notto represent population- Causal Research- (most sophisticated) tries to determine the extent to which the change in one factor changes another one, proposing there is a cause effect relationship1. Experiments- lab- bring people into lab, field- do experiment in actual field itself2. 2 Key concepts:a. Manipulation- something always being manipulated(dependent variable)i. Demographics, product interest, cities can influence on so many thins besides advertisingb. Control- for everything else, do this by randomizationc. Lab Study- Hand lotion- independent variable is amount of oil, dependent is find version where people will receive creamy but not greasyi. Manipulated amount of oil and controlled other things that might alter peoples responses for dependent variablesd. Field Studies- test marketing- realistic setting, harder to control, good handle with data from IRI i. Cost- typically at least $1Mii. Competition- if they figure out who it is, will do everything to show upiii. Timing- can be very time consumingiv. Repurchase Rate- if lo, stretches timing outv. Fine tuninge. Test marketing (2 or more alternative marketing programs)i. Product formulations, advertising campaign,pricing, packagingii. Scanner panels- constantly collecting data from all households on purchases- get information you cannot get from doing simple surveys (repeating, how often buying, how much?)iii. IRI behavior scan- split cable feed- combinescanner power data with ability to manipulate different versions of ads going todifferent households (television) b. Identify Possible Marketing Actions- Measure of success- criteria standards used in evaluating proposed solutions to the problem, different research outcomes based on measure of success, lead to different marketing actions2. Develop the Research Plana. Specify Constraints- restrictions placed on potential solutions to a problemb. Identify data needed for marketing actions, focus on collecting data that will help make clearer choice (relevant)c. Determine how to collect data:- Concepts- ideas about products or services, new products concept- used to find out about consumer reaction to a potential new product- Methods- approaches that can be used to collect data to solve all orpart of a problem1. Sampling and Statistical