MKTG 181 Chapter 8: Marketing Research: From Customer Insights to Actions

Terms in this set (14)

Involves two key elements in defining a problem: setting the research objectives and identifying possible marketing actions

Set the Research Objectives: Research objectives are specific, measurable goals the decision maker seeks to achieve in conducting marketing research...In setting research objectives, marketers have to be clear on the purpose of the research that leads to marketing actions. The three main types of marketing research, explained in more detail later in the chapter, are as follows:
1) Exploratory Research: provides ideas about a vague problem
2) Descriptive Research: generally involves trying to find the frequency with which something occurs or the extent of a relationship between two factors
3) Causal Research: tries to determine the extent to which the change in one factor changes another one

Identify Possible Marketing Actions:
Effective decision makers develop specific MEASURES OF SUCCESS, which are criteria or standards used in evaluating proposed solutions to the problem. Different research outcomes, based on the measure of success, lead to different marketing actions...example...might help if you need to know it...
Marketing researchers know that defining a problem is an incredibly difficult task. If the objectives are too broad, the problem may not be researchable. if they are too narrow, the value of the research results may be seriously lessened. This is why marketing researchers spend so much time defining a marketing problem precisely and writing a formal proposal that describes the research to be done
The second step in the market research process requires that the researcher (1) specify the constraints on the marketing research activity, (2) identify the data needed for marketing actions, and (3) determine how to collect the data

Specify Constraints:
The CONSTRAINTS in a decision are the restrictions placed on potential solutions to a problem. Examples include the limitations on the time and money available to solve the problem...example

Identify Data Needed for Marketing Actions:
Effective marketing research studies focus on collecting data that will lead to effective marketing actions....example...need relevant information to help make a clear choice

Determine How to Collect Data:
Determining how to collect useful marketing research data is often as important as actually collecting the data, which is step 3...Two key elements in deciding how to collect the data are (1) concepts and (2) methods
Concepts are ideas about products or find out about consumer reactions to a potential new product, marketing researchers frequently develop a new-product concept, which is a picture or verbal description of a product or service the firm might offer for sale....
Methods are the approaches that can be used to collect data to solve all or part of the problems....Observing people and asking them questions, the two main data collection methods, are discussed in the following section....special methods vital to marketing are sampling and statistical inference...sampling by selecting a group of distributors, customers, or prospects, asking them questions, and then treating their answers as typical of all those in whom they are interested...they may then use statistical inference to generalize the results from the sample to much larger groups of distributors, customers, or prospects to help decide on marketing actions
Observing people and asking them questions are the two principal ways to collect new or primary data for a marketing study. Facts and figures obtained by watching, either mechanically or in person, how people actually behave is the way marketing researchers collect OBSERVATIONAL DATA. Observational data can be collected by mechanical (including electronic), personal, or neuromarketing methods...

Mechanical National TV ratings of Nielsen...

Personal Mystery shopper...watching consumers in person or recording them are two other observational watching women do their laundry, people brush their teeth, see how people use the products...Ethnographic research is a specialized observational approach in which trained observers seek to discover subtle behavioral and emotional reactions as consumers encounter products in their "natural use environment," such as in their home or car...Personal observation is both useful and flexible, but it can be costly and unreliable when different observers report different conclusions when watching the same event...and while observations can reveal what people do, it cannot easily determine why they do it...this is the principle reason for using neuromarketing and questionnaires, our next topics

Neuromarketing Methods: Lindstrom believes consumers' feelings towards products and brands reside deep within the subconscious part of their brands...Lindstrom used brain scanning to analyze the buying process of more than 2,00 participants...example of Campbell changing soup packaging...
Asking consumers questions and recording their answers is the second principal way of gathering information. We can divide this primary data collection task into (1) idea generation methods and (2) idea evaluation methods, although they sometimes overlap and each has a number of special techniques. Each survey method results in valuable QUESTIONNAIRE DATA, which are facts and figures obtained by asking people about their attitudes, awareness, intentions, and behaviors

Idea Generation Methods: Coming Up with Ideas...Individual interviews..depth interviews...focus groups...Trend Hunter...

Idea Evaluation Methods: Testing an Idea...In idea evaluation, the marketing researcher tries to test ideas discovered to help the marketing manager recommend marketing actions. Idea evaluation methods often involve conventional questionnaires using personal, mail, telephone, fax, and online surveys of a large sample of past, present, or prospective consumers...personal interview surveys, mail surveys, telephone interviews, online surveys...The foundation of all research using questionnaires is developing precise questions that get clear, unambiguous answers from question, closed-end or fixed alternative questions...dichotomous question, the simples form of a fixed alternative question...scale...semantic differential scale...Likert scale...Marketing research questions must be worded precisely so that all respondents interpret the same question similarly...mall intercept interviews...