LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 8, YOU SHOULD BE ABLE TO:
Identify the reason for conducting marketing research.
Describe the five-step marketing research approach that leads to marketing actions.
Explain how marketing uses secondary and primary data.
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No reproduction or distribution without the prior written consent of McGraw-Hill Education.LO 8-3LO 8-2LEARNING OBJECTIVES (LO)AFTER READING CHAPTER 8, YOU SHOULD BE ABLE TO:LO 8-1Identify the reason for conducting marketing research.Describe the five-step marketing research approach that leads to marketing actions.Explain how marketing uses secondary and primary data.8-*LO 8-5LEARNING OBJECTIVES (LO)AFTER READING CHAPTER 8, YOU SHOULD BE ABLE TO:LO 8-4LO 8-6Discuss the uses of observations, questionnaires, panels, experiments, and newer data collection methods.Explain how information technology and data mining lead to marketing actions.Describe three approaches to developing a company’s sales forecast.8-*REDUCING THE RISK OF A MOVIE’S FAILURE WITH TEST SCREENINGS AND TRACKING STUDIESWhat’s in aMovie Name?The Risks of Today’s (and Tomorrow’s) Blockbuster MoviesConduct TestScreeningsUse TrackingStudies8-*FIGURE 8-A Marketing research questions asked in test screenings of movies that lead to specific actions8-*REDUCING THE RISK OF A MOVIE’S FAILURE WITH TEST SCREENINGS AND TRACKING STUDIESConverting Marketing Research Results into Actions8-*THE ROLE OF MARKETING RESEARCHLO 8-1The Challenges in Doing Good Marketing ResearchFive-Step Marketing Research ApproachWhat is Marketing Research?DecisionDecision Making8-*FIGURE 8-1 Five-step marketing research approach leading to marketing actions8-*STEP 1: DEFINE THE PROBLEMSET THE RESEARCH OBJECTIVESLO 8-2Be Specific, Measurable, and AchievableHave a ClearResearch PurposeMust Lead to Marketing Actions8-*STEP 1: DEFINE THE PROBLEMSET THE RESEARCH OBJECTIVESLO 8-2Exploratory ResearchDescriptive ResearchCausal Research8-*STEP 1: DEFINE THE PROBLEMSET THE RESEARCH OBJECTIVESLO 8-2Measures of SuccessPossible Marketing ActionsMeasure of Success: PlaytimeChildren Spent More TimePlaying with Old DesignChildren Spent More TimePlaying with New DesignContinue with Old Design;Don’t Introduce New DesignIntroduce New Design;Drop Old Design8-*STEP 2: DEVELOP THE RESEARCH PLANSPECIFY CONSTRAINTSLO 8-2ConstraintsIdentify Data Neededfor Marketing Actions8-*STEP 2: DEVELOP THE RESEARCH PLANDETERMINE HOW TO COLLECT DATALO 8-2ConceptsMethodsNew-Product ConceptSamplingStatistical Inference8-*STEP 3: COLLECT RELEVANT INFORMATION/DATALO 8-3DataSecondary DataPrimary Data8-*FIGURE 8-2 Types of marketing information8-*STEP 3: COLLECT RELEVANT DATASECONDARY DATALO 8-3InternalMarketing Input DataMarketing Outcome Data8-*STEP 3: COLLECT RELEVANT DATASECONDARY DATALO 8-3ExternalCensus BureauU. S.2010CensusAmericanCommunitySurveyU. S. 2012 Economic Census8-*STEP 3: COLLECT RELEVANT DATASECONDARY DATALO 8-3ExternalSyndicated PanelNielsen TV RatingsJ.D. Power SurveysIRI InfoScan8-*STEP 3: COLLECT RELEVANT DATASECONDARY DATALO 8-3ExternalUniversitiesTrade AssociationsBusiness Periodicals8-*MARKETING INSITEOnline Databases & Internet ResourcesLO 8-3Statistical &Financial DataPortals &SearchEnginesWall StreetJournalCNBCInvestorsBusinessDailyFoxBusinessNewsGoogleUSA.govCensusBureau8-*STEP 3: COLLECT RELEVANT DATASECONDARY DATALO 8-3AdvantagesTime SavingsInexpensiveOut of DateDefinitions/Categories Not RightDisadvantagesNot Specific Enough8-*STEP 3: COLLECT RELEVANT DATAPRIMARY DATA—WATCHING PEOPLELO 8-4Observational DataNielsen’s People MeterMechanical MethodsNielsen’s TV Ratings8-*FIGURE 8-3 Nielsen Broadcast Ranking Report for network TV primetime households for the week ending May 19, 2013 8-*STEP 3: COLLECT RELEVANT DATAPRIMARY DATA—WATCHING PEOPLELO 8-4Personal MethodsMystery ShopperVideotapingEthnographic ResearchNeuromarketing Methods8-*STEP 3: COLLECT RELEVANT DATAPRIMARY DATA—ASKING PEOPLELO 8-4Questionnaire DataIdea Generation MethodsIndividual InterviewsDepth Interviews8-*STEP 3: COLLECT RELEVANT DATAPRIMARY DATA—ASKING PEOPLELO 8-4Focus GroupsIdea Generation Methods“Fuzzy Front End” Ex: Trend Hunting8-*STEP 3: COLLECT RELEVANT DATAPRIMARY DATA—ASKING PEOPLELO 8-4Idea Evaluation MethodsPersonalInterviewSurveysMail/FaxSurveysTelephoneSurveysOnline(E-Mail/Internet)SurveysMall Intercept Interview Surveys8-*FIGURE 8-B Comparison of types of surveys8-*STEP 3: COLLECT RELEVANT DATAPRIMARY DATA—QUESTION FORMATSLO 8-4Open-Ended QuestionsClosed-End or Fixed Alternative QuestionsDichotomous QuestionsSemantic Differential QuestionsLikert Scale Questions8-*FIGURE 8-4A Different types of questions in a sample Wendy’s survey (Q1 – Q5) 8-*FIGURE 8-4A (Q1) Sample Wendy’s survey: Open-ended question 8-*FIGURE 8-4A (Q2) Sample Wendy’s survey: Dichotomous question 8-*FIGURE 8-4A (Q3) Sample Wendy’s survey: Multiple choice question 8-*FIGURE 8-4A (Q4) Sample Wendy’s survey: Attitudinal question 8-*FIGURE 8-4A (Q5) Sample Wendy’s survey: Semantic differential scale question 8-*FIGURE 8-4B Different types of questions in a sample Wendy’s survey (Q6 – Q9) 8-*FIGURE 8-4B (Q6) Sample Wendy’s survey: Likert scale question 8-*FIGURE 8-4B (Q7) Sample Wendy’s survey: Media behavior question 8-*FIGURE 8-4B (Q8) Sample Wendy’s survey: Usage behavior question 8-*FIGURE 8-4B (Q9) Sample Wendy’s survey: Demographic questions 8-*FIGURE 8-C Typical problems when wording questions8-*STEP 3: COLLECT RELEVANT DATAPRIMARY DATA—OTHER SOURCESLO 8-4Social Media8-*USING MARKETING DASHBOARDSAre the Carmex Social Media Programs Working Well?LO 8-4Conversation Velocity, Share of Voice, and Sentiment8-*STEP 3: COLLECT RELEVANT DATAPRIMARY DATA—OTHER SOURCESLO 8-4ExperimentsIndependent Variable:The Cause (Drivers)Dependent Variable:The ResultTest MarketsPanels8-*FIGURE 8-D Sales/brand drivers: factors that influence product or brand sales and are essential for effective marketing programs 8-*STEP 3: COLLECT RELEVANT DATAPRIMARY DATA—OTHER SOURCESLO 8-4Information TechnologySensitivity AnalysisData WarehouseData MiningRFID Technology8-*FIGURE 8-5 How marketing researchers and managers use information technology to turn information into action 8-*MAKING RESPONSIBLE DECISIONSThe Downside of Data MiningReveals Personal InformationLO 8-4Collected via Cookies and AppsEnables Personalization and Targeting8-*STEP 3: COLLECT RELEVANT DATA+/– OF PRIMARY DATALO 8-4AdvantageExpensiveTime Consuming to CollectDisadvantagesMore Specific to the Problem8-*STEP 3: COLLECT RELEVANT DATAUSING CROSS TABULATIONS TO ANALYZE DATALO 8-4Developing Cross TabulationsLook for Heavy UsersDevelop Marketing Actions to Reach ThemInterpreting Cross TabulationsCross Tabulation (Cross Tab)Can Show Raw Data or Answers to QuestionsCan Show Percentage Responses to Questions8-*FIGURE 8-6 Two forms of a cross tabulation relating age of head of household to frequency of fast-food restaurant patronage 8-*FIGURE 8-6A Two forms of a cross tabulation relating age of head of household to frequency of fast-food restaurant patronage: Absolute frequencies8-*FIGURE 8-6B Two forms of a cross tabulation relating age of head of household to frequency of fast-food restaurant patronage: Row percentages run horizontally8-*STEP 3: COLLECT RELEVANT DATA+/– OF CROSS TABULATIONSLO 8-4AdvantagesSimple FormatPermits Direct Interpretation of DataAllows Easy Communication of ResultsFlexible—Summarizes Data Generatedfrom the Following Collection Methods:QuestionnaireObservationalExperiments8-*STEP 3: COLLECT RELEVANT DATA+/– OF CROSS TABULATIONSLO 8-4DisadvantagesMisleading if Percentages Based on tooFew ObservationsCan Hide Relationships Since Only 2 – 3Variables are Shown in the Cross Tab 8-*STEP 4: DEVELOP FINDINGSLO 8-5Present the FindingsAnalyze the DataHow are Sales?What FactorsContribute toSales Trends?8-*FIGURE 8-7 Marketing dashboards that present findings to Tony’s marketing manager that lead to recommendations and actions 8-*FIGURE 8-7A Findings presented to Tony’s marketing manager8-*FIGURE 8-7B Findings presented to Tony’s marketing manager8-*FIGURE 8-7C Findings presented to Tony’s marketing manager8-*FIGURE 8-7D Findings presented to Tony’s marketing manager8-*STEP 5: TAKE MARKETING ACTIONSLO 8-5Evaluate the ResultsMake Action RecommendationsImplement the Action RecommendationsThe Decision Process UsedThe Decision Itself8-*SALES FORECASTING TECHNIQUESLO 8-6Sales ForecastJudgments of the Decision MakerSurveys of Knowledgeable GroupsDirect ForecastLost-Horse ForecastSalesforce Survey ForecastSurvey of Buyers’ Intentions Forecast8-*SALES FORECASTING TECHNIQUESLO 8-6Statistical MethodsTrend ExtrapolationLinear Trend Extrapolation8-*FIGURE 8-8 Linear trend extrapolation of sales revenues at Xerox, made at the start of 20008-*FIGURE 8-E Top-down forecast: Survey of Buying Power 8-*FIGURE 8-F Build-up forecast: Apple’s four major product lines8-*CARMEX [A]: LEVERAGING FACEBOOK FOR MARKETING RESEARCHVIDEO CASE 88-*