Chp 7: Marketing Research Flashcards
define marketing research
set of techniques and principles for systematically collecting, recording, analyzing, and interpreting data that can aid decision makers involved in marketing goods/services/ideas
what is marketing research key to
developing strategies, assessing 4Ps, developing STP, understand competitive intelligence, consumer buying behaviour
Lecture: 2 roles of marketing research
1) communication link between firm and industry, competition, market, employees, customers
2) provides useful info for understanding, decision-making, planning
why is competitive intelligence useful
because it takes uncertainty out of operations, they know links between firms and environment to build strategies through customer feedback, monitoring competitors, identifying opportunities
define customer lifetime value
expected financial contribution from a particular customer to the firm’s profits over course of their relationship
5 steps in marketing research process
1) define research problem & objectives
2) design research plan
3) collect data
4) analyze data and develop insights
5) determine action plan
step 1 in marketing research process: define research problem & objectives - 3 points
1) Problem needs to be correctly defined. If the problem is not defined correctly, you may end up with the wrong solution
2) If you defined problem correctly but fail to carry out rest of process correctly you may end up with misleading/useless results
3) It’s important to separate symptoms of a problem from actual problems (ex. Declining sales may not be due to low advertising but poor product)
step 1 in marketing research process: define research problem & objectives: 3 sources poor design can arise from?
1) basing research on irrelevant research questions
2) focusing on research questions that marketing research can’t answer
3) addressing research questions to which answers are already known
Lecture: 3 things to identify in step 1) research problem & objectives in marketing research process
1) what do we need to know
2) why do we need to know it (clarify info that you specifically need)
3) find fundamental issue - distinguish between cause, symptom, impact
Lecture: give example of symptom, impact, cause
symptom: 30% loss of sales force in first year of employment
impact: high cost of on-boarding and low consumer satisfaction
cause: poor incentive structure
step 2 in marketing research process: define research plan: what happens here?
Researchers identify type of data needed and determine type of research needed to collect it
Lecture: step 2 in marketing research process: define research plan: 4 steps to define research plan
1) project objectives
2) type of research necessary
3) type of data needed
4) type of data available
Lecture: 3 degrees of problem definition and give example of each
1) exploratory - initial research into hypothesis ex. why are sales declining
2) descriptive - explore and explain info gathered in exploratory research ex. what is a fair price point for our product
3) causal - connect ideas to understand cause and effect ex. test if purchase rates are correlated to price by having one location’s product on sale and the other not
step 3 in marketing research process: collect data: define data
raw numbers of other factual info of limited value. when interpreted becomes info that marketers can use
step 3 in marketing research process: collect data: 2 sources data can be collected from
primary, secondary sources
step 3 in marketing research process: collect data: define secondary data - 3 points
info that has been collected prior to the start of the focal research project. Includes external and internal data sources. not specific to research objective.
step 3 in marketing research process: collect data: define primary data
data collected to address specific research needs.
step 3 in marketing research process: collect data: what do firms do because they can’t interview every customer and example
Firms cannot interview every customer, so they look at group of customers who represent customers of interest, or a sample and generalize their opinions to all customers with same characteristics (at random to represent entire customer market or characteristic on if they are children)
step 4 in marketing research process: analyze data & develop insights: define info
data that has been organized, analyzed, interpreted and converted into a useful form for decision makers
step 4 in marketing research process: analyze data & develop insights: example
collect data about individual consumer purchases and then analyze data to determine what products are purchased together
step 4 in marketing research process: analyze data & develop insights: what should you make sure you don’t do
Misinterpreting findings or manipulating statistics to suit researcher’s prediction can lead to wrong decisions which could have consequences for marketers
step 5 in marketing research process: determine action plan
Prepare results and present to decision makers who undertake appropriate marketing actions and strategies
LO2: 2 secondary data types
1) internal
2) external
LO2: internal secondary data: define data mining
use of statistical analysis tools to uncover previously unknown patterns in the data or relationships among variables