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Flashcards in Week 2 Deck (61):
1

Marketing information and customer insights

When creating value for customers, marketers must obtain fresh and deep insights into their needs and wants.

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Marketing information as ‘big data’

Big data is the large and complex data sets generated by today’s sophisticated information generation, collection, storage and analysis technologies.

Most marketing managers are overloadedwith data and often overwhelmedby it.

Big data presents companies and marketers with both big opportunities and challenges.

3

Big data opportunites


Rich, timely customer insights

Better understand the buying needsof our consumers and customers

4

Big data challenges


Accessing and sifting through data is demanding and time consuming

There is more informationthan a manager can digest

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Do marketers need more information

Marketers do not need moreinformation; they need better information. And they need to make better useof the information they already have.

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Marketing analytics

Marketing analytics involves tools and technologies used in making sound marketing decisions that lead to effective outcomes and return on marketing investment. This process requires data collection and analysis from all channels in the physical and digital arenas, including big data, over a time span.

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Sources of data


collected from their own databases

marketing research

web, mobile and social media tracking

customer transactions and engagements; and

other data sources.

8

Managing Marketing informaton

The real value of marketing research and information lies in how they are used –the customer insights it provides.

Many companies are creating customer insights teams.

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Customer insights groups collect customer and market information from a wide variety of sources:


traditional marketing research studies

mingling with and observing consumers

monitoring consumer online conversations about the company and its products.

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Marketing information and customer insights


The challenge is that a customers’ needs and buying motives are often anything but obvious.

Companies must design effective marketing information systems (MIS)that give managers the right information, in the right form, at the right time.

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Marketing information system (MIS)

People and procedures dedicated to assessing information needs, developing the needed information and helping decision makers use the information to generate and validate actionable customer and market insights.

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MIS Example

photo in favourites 31/7/18

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Assessing marketing information needs


The marketing information system also provide information to external partners, such as:

Suppliers

resellers

marketing services agencies.

A good MIS balances the information users would

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Marketers can obtain the needed information from:


Internal databases

Competitive marketing databases

Marketing research

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Internal databases

Electronic collections of consumer and market information obtained from data sources within the company’s network.

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Internal databases examples

photo in favourites 31/7/18

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Competitive marketing intelligence

Systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketing environment.

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Methods of collection include:


Observation (mixing and mingling with customers as they use and talk about the product)

Monitoring online consumer, marketplace and competitor activities (social media, website traffic and page visitation)

Sentiment analysis (augmenting and automating the collection of the data)

Trend analysis

19

Marketing research

Systematic design, collection, analysis and reporting of data relevant to a specific marketing situation facing an organisation. Market research gives marketers insight in customer motivations, purchase behavioursand satisfaction.

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Marketing research can help assess:


Market potential

Market share

Effectiveness of marketing mix activities (pricing, product, distribution and promotion activities).

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Two approaches of market research

Qualitative
Quantitative

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Qualitative

Involving a small number of individuals used to get qualitative data on a topic.
•Focus groups (traditional and online)
•In-depth one to one interviews (traditional and online)

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Quantitative

Involving a large number of individuals* and is used to get quantitative data on a topic.
•Use of statistical application
* above 100 people

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The 4 step process of marketing research

Defining the problem and research objectives

Developing the research plan for collecting information

Implementing the research plan –collecting and analysing the data

Interpreting and reporting the findings

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Step 1: Defining the problem and research objectives

Often the hardest step in the research process.

You may know that something in wrong, but don’t know the specific cause.

Example: sales are declining, but you don’t know why

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Step 1 define too broadly

step 2 defined too narrowly

Too much information may be collected, and the actual issue is not uncovered

Too little information is gathered resulting in the cause not being addressed

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Exploratory


Gathers preliminary information to help define the problem.

Suggests hypotheses

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Descriptive


Describes marketing problems, situations or markets

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Casual


Test hypotheses about cause-and-effect relationships.

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Step 2: Developing the research plan

Research objectives must be translated into specific information needs.

Example information needs:

Demographic

Characteristics and usage patterns of the broader population

Impact of the customer experience

Employee reactions to the proposed product or service

Forecasts

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How is step 2 presented

Presented as a written proposal

The research plan outlines:

The management problem

Research objectives

Information to be obtained

Types of data needed (primary data or secondary data)

How the results will help the management decision making

Estimated research costs

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Step 2 types of data

To meet the manager’s information needs, the research plan may call for gathering secondary data, primary data, or both.

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Secondary data

Information that already exists somewhere, having been collected for another purpose. Secondary data is a good starting point and helps define research problems and objectives. Includes internal sources such as profit statements, government publications, commercial data such as market research services

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Primary data

Information collected for the specific purpose at hand

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When collecting primary data, it must be:


Relevant

Accurate

Current

Unbiased

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Gathering the primary dataL 3 major research approaches

Observation
Survey
Experiment

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Observational Research

Gathering primary data by observingrelevant people, actions and situations.

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Survey Research

Gathering primary data by asking people questionsabout their knowledge, attitudes, preferences and buying behaviour.
Is the best suited for gathering descriptiveinformation.

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Survey Research pros cons

Advantages:
•Flexibility –across multiple situations
•By phone or online
Disadvantages:
•Memory
•Wanting to please / appear smarter
•Lack of time

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Experimental Research

Gathering primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors and checking for differences in group responses.
Is the best suited for gathering causal information. The experiment tries to explain the cause and effect relationship.

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Gathering primary data contact methods

Mail questionaries

Telephone interviewing

Personal interviewing

Online

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Mail questionaries

Used to collect large amounts of information
Advantages:
•Low cost per respondent
•May be more honest
•No interviewer –reducing bias
Disadvantages:
•Not flexible –answering in a linear way
•Can skip questions
•Take longer to complete
•Difficult to control who completes the survey

43

Telephone Interviewing

Used to collect large amounts of information
Advantages:
•Fast
•Better flexibility over mail
•Interviewers can explain difficult questions
•Spend more time probing questions
•Response rates are higher than mail
Disadvantages:
•Cost is higher
•Not wanting to discuss personal questions
•Interviewer bias
•“do not call” and hang up

44

Personal Interviewing individual

Home, Shopping Mall Intercepts
Advantages:
•Flexible
•Trained interviewers guide and explain difficult questions
•Can show actual products
Disadvantages:
•Cost is three to four times higher than telephone

45

Personal Interviewing group

Focus Groups, Forums
Advantages:
•Moderator drives free and easy discussion –personal touch
•Good for explorative research and gaining insight
Disadvantages:
•Groups provide indicative opinion only

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Online

Internet survey, panels, experiments, focus group

Advantages:
•Speed
•Low cost
•More interactive and engaging
•Able to reach “hard-to-reach” costumers
•Higher response rates

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Step 2 sampling plan

A sample is a segment of the population selected for marketing research to represent the population

Interested in
who, how many and how

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Sampling unit

Who should be studied?

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Sample size

How many people should be included?

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Sampling procedure

How will the sample be selected?

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Sampling procedure

How will the sample be selected?

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Research instruments

Questionnaires or Surveys
Mechanical Instruments

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Questionnaires or Surveys


Most common

Very flexible

Two different types of questions:
Closed-end questions
Open-end questions

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Step 3: Implementing the research plan


Put the plan into action

Collect, process and analyse the information

Data collection is carried out by the marketing research staff or by an outside company

Process and analyse the collected data

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Step4: Interpreting and reporting the findings


Don’t overwhelm managers with numbers and fancy statistical techniques

Present important findings and insights

Interpretation should not be left only to the researchers.

While researchers may have research expertise, the marketing manager knows more about the problem and the decisions that must be made

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Analysing and using marketing information

Customer relationship management (CRM): Systematic collation of data collected from multiple touch points, which is often combined with sophisticated analytical tools to enable a 3600view of individual customers

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Uses and benefits of CRM

Integrate customer information

Database is easily interrogated

Provide deep insights for marketing decisions

Shopping rewards programs

Pinpoint high value customers, andtarget them efficiently

Cross-sell company’s products & services

Create offers tailored to specific customers

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Marketing information may be distributed via:

Intranets and extranets

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Intranets:

Employee access information, reports, shared work documents etc.

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Extranets:

External suppliers able to access account information etc

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External suppliers able to access account information etc

A form of observational research that involves sending trained observers to watch and interact with consumers in their ‘natural habitats’.