Marketing Research Foundation of marketing is marketing research The foundation of all strategic things companies do o Companies that make products know exactly where hot spot is Provides information companies use to make branding decisions o Target messages in a way that is relevant to what people want to hear What is Marketing Research Marketing Research process of designing gathering analyzing and reporting information that may be used to solve a marketing problem o Examples Product Development Pricing Studies Customer Satisfaction Assessments Distribution Analysis Promotion Effectiveness Studies o Product development Toyota found in a study that women are behind most decision making for cars and most of their highest rank needs included safety so Toyota began to focus more on safety o Pricing strategy For wine people tend to think that with price comes quality so when wine companies decreased their prices their sales decreased as well Goes against supply and demand rule o Customer satisfaction people believe that if they wait longer for food in a restaurant the quality is better Unknown waits seem longer than known waits Airports moved baggage claim further so that the walk was longer and actual wait for bags was shorter Mirrors in elevator b c people didn t mind wait as much Explained waits seem shorter Where did it come from Comes from any source in history where we decided knowing more about customers is better than knowing nothing o Satisfy customers but knowing as much as you can about them 1980s TQM Movement Deming Juran o Customer Orientation Research to find customer reaction to product Research to compare product to competitors Research to find problems with product Why is it important It gives managers answers to important questions If decrease customer defection by 5 you can increase profits by 25 100 One unhappy customer tells 9 12 others o Now with social media twitter facebook etc it can be 9 12 thousand It costs 5x as much to attract new customers than to retain old ones On average U S firms lose half of their customers every 5 years Heat mapping you can see highly populated areas and what everyone is buying o Apple all employees have credit card swipes on their iPhones to stop highly populated areas New Coke machines record your combination of sodas to seek out new flavors or see high demanded products Loyalty cards collecting data on the products you buy so they can send you similar coupons o At Wal Mart a 16 year old was buying unscented lotion and q tips which correlate with pregnancy so they sent out baby diaper coupons for her dad found out and called wal mart she turned out to be pregnant o Beer and diaper combo is a big thing Why is it important Cont d It s the foundation for marketing strategy decisions Cluster Analysis statistical analysis technique that identifies customer segments o The researcher measures things like price sensitivity and importance of quality and on time delivery o Cluster analysis identifies groups segments of customers that have similar characteristics o Firms can then plot the segments against their core competencies and target the groups with the highest probability of purchasing their products o Target groups high on competitive advantage and high attractiveness o Firms can save money by ignoring some segments that are not interested in the products save resources and spend them on customers who will be more profitable Develop products for different segments based on statistical data This is how marketing is much more empirical quantitative than people believe o Big Data drives current strategies Companies have lots of data and they don t know what to with it so they have people develop strategies to organize information Leverage information and target customers who will react positively to product Ex CVS using purchase histories to figure out who is most likely to respond positively to a coupon Fauxsumerism enjoyment of shopping without actually buying Pinterest Types of Research 1 Applied Research research designed to solve a specific problem usually for a specific company e g consulting a Straight Forward 2 Basic Research research designed to extend knowledge of marketing phenomena a Ex JM JMR JCR MS JR JAMS b Usually done by professors c Q Have you ever had a bad service experience and not complained about it If not why not Only between 4 and 15 of people actually complain Basic Research McDonald s o Receives 2 200 complaints day o Of those 70 1890 are service related o Of those half 945 receive follow up o Of those 1 3 315 were dissatisfied with the recovery o So 33 630 of the daily service complaints are addressed o The real problem what if 1 890 only represents 5 of the dissatisfying experiences Complaints helps a firm rectify problems and keep customers from going to competitors o Firms want you to complain o Ex bank in Canada gives a dollar for every complaint Why consumers complain and why they don t complain o Service Provider Responsiveness 35 o Sacrifice 25 o Switching 15 o Sympathy 9 Chick fil a s religious affiliation helps them in terms of customer satisfaction when if they mess up My current research examines the customer firm relationship through the a dating paradigm How do firms court potential customers Reasons customers leave firms How can firms most effectively break up with customers o J Crew if they give you a discount you give them your email which is a mutual good relationship o When they email you daily about their deals you unsubscribe and then break up Direct breakup vs Avoid breakup Qualitative data yields non descriptive non numerical information Quantitative data yields empirical information that can be communicated through numbers Applied Research ALS ice bucket challenge specifically researched each social media and how much donations were why they increased so much Marketing Research Process Problem Definition Research Design Data Gathering Data Analysis Report Preparation Sampling The Problem Definition A problem well defined is half solved Exploratory Qualitative Research helps in problem solving as it allows the researcher to better define the problem by getting a look at it first hand o The best example of exploratory research is focus groups o If sales are down it is someone s fault they use exploratory research so that no one can point the finger o Research conducted to gather more information about a problem to make a tentative hypothesis more specific The Research Design 1
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