Principles of Marketing Module 6: Marketing Information and Research

Principles of Marketing Module 6: Marketing Information and Research

Types of Marketing Information: Internal Data Large databases collect massive amounts of data from a variety of sources: customer demographic and profile data linked to in-store and online purchasing history, Web site search terms, page views, social media posts, and other data In a process called data mining, computer algorithms search for patterns in the data and generate recommendations and insights about how to increase sales

Competitive Intelligence Competitive intelligence is marketing information that helps marketers and other members of an organization better understand their competitors and competitive market dynamics, such as: Product information Market share and penetration Pricing strategy Competitive positioning and messaging Win/loss analysis

Marketing Research Marketing research is a systematic process for identifying marketing opportunities and solving marketing problems Uses customer insights that come out of collecting and analyzing marketing information

Environmental Factors Market research examines environmental factors and how they affect consumer behavior: Health of the economy Legal environment Market trends Technology and its influence Cultural factors

Customer Attitudes, Behaviors, and Perceptions Marketing research can be essential in understanding customer needs How their needs are or aren’t being met by the market Views about various products and companies Satisfaction levels, preferences for product features and pricing Consumer decision-making process, and factors that influence it.

Product Research Product research explores . . . Opportunities and gaps exist for improving existing products or introducing new ones Concept testing Sizing the market for a product Market penetration Prioritizing product features and preferences Resting product effectiveness Customer receptivity User testing Pricing strategies, Product naming and branding How to position a product relative to competitors

Marketing, Advertising, and Promotion Research This area of research seeks to improve the effectiveness and reach of marketing activities such as market segmentation, messaging and communications, advertising and media testing, events and sponsorships, packaging and display testing

Corporate Research Corporate research investigates corporate reputation and opportunities for strengthening an organization’s position in the market through brand building, research and development, mergers and acquisitions, strategic partnerships, corporate planning and profitability

Questions to Ask in Market Research Who is the customer? What problems is the customer trying to solve with a given purchase? What does the customer desire in the way of satisfaction? How does the customer get information about available choices? Where does the customer choose to purchase? Why does the customer buy, or not buy? When does the customer purchase? How does the customer go about seeking satisfaction in the market?

Marketing Research Process

Secondary Research Secondary research uses information that has previously been collected either inside or outside the organization such as: Internal data Government and non-governmental organization Industry associations, journals, and media Commercial market research data Search engine results

Advantages and Disadvantages of Secondary Research Advantages Less expensive Less time intensive Disadvantages Information may be somewhat dated Probably does not address your exact problem with your exact market and competitive dynamics

Quantitative vs. Qualitative Research Qualitative research explores ideas, perceptions, and behaviors in depth with a relatively small number of research participants. It aims to answer questions with more complex, open-ended responses. Quantitative research collects information that can easily be counted, tabulated, and statistically analyzed.

Qualitative Research Methods behavioral observation in-depth interviews focus groups social listening

Social Listening Social listening is a systematic process for tracking what is being said about a given topic in forums such as Facebook, Twitter, LinkedIn, blogs, and even mainstream media.

Quantitative: Surveys Surveys ask individual consumers to give responses to a questionnaire.

Marketing Research Contact Methods: Pros and Cons Contact Method Advantages Disadvantages Good control over who participates Quick, timely data collection Moderately expensive Low response rates (fewer people answer phones) Interviewer quality may affect results Questionnaire length limitations Mail Inexpensive Little control over who participates Data collect takes longer Low response rates In-person Great control over who participates Quick, timely data collection Fairly good response rates Great for capturing in-depth detail Very expensive Interviewer quality may affect results Questionnaire length limitations Online Inexpensive Timely data collection Low cost to continue data collection Little control over who participates Greater possibility for self-selection bias misses people who aren’t online Telephone

Quantitative: Experiments A typical example is A/B testing in marketing campaigns. In an A/B test, the marketers use two different versions of promotional materials with two samples of target customers and then track the results to see which version is most effective.

Sampling A sample is a group of elements (persons, stores, financial reports) chosen for research purposes from among a “total population” or “universe” of all possible participants who fit the target criteria for research subjects.

Analyzing Primary Data Analyzing data is the process of interpreting what it means, generating recommendations, and reporting results to the appropriate stakeholders within an organization. Qualitative: Summarizing key themes and takeaways as well as including verbatim comments from research participants that express important points. Quantitative research: Researchers apply a variety of statistical tabulations and tests to determine what the data are saying, which findings are truly significant, and what meaningful correlations or relationships exist to offer new insights about the target segment.

Publicly Available Data Sources Website Data.gov FedStats Google Public Data Directory Google Trends Pew Research Center U.S. Bureau of Economic Analysis U.S. Census Bureau Data Description A centralized portal for open data available from the U.S. government A U.S. government-maintained Web site that provides access to a wide variety of statistical data published by the federal government. A directory of publicly-available data sources from around the world. A search tool for exploring search volume for any term used in a Google search. Public opinion and research reports from a non-partisan, American think tank. Data published by the federal government about economic indicators for the economy as a whole, as well as specific industries and economic sectors. Demographic and geographic information about the population of the United States.

Publicly Available Data Sources (continued) Website U.S. Small Business Administration (SBA) Ge neral Business Data and Statistics United Nations UNdata World Bank Data World Trade Organization (WTO) Data Description A collection of data about the U.S. economy, industries, businesses and the general population, developed with business users in mind. A data service of the United Nations that provides centralized access to a wide variety of U.N.-maintained data sets such as demographics, socioeconomic status and development indicators for nations around the world. Economic data and economic development indicators for 100 countries around the world. Information about international trade and tariffs and the regulatory environment for 100 WTO member countries.

Syndicated Marketing Research Data Website Description Acxiom Extensive consumer datasets containing demographic, purchasing, credit, and other information companies can map to their own customer and prospect data for research, marketing analytics, and marketing campaign execution. Experian Extensive consumer datasets containing demographic, purchasing, credit, and other information that companies can map to their own consumer and prospect data for research, marketing analytics, and marketing campaign execution. GfK MRI (formerly MediaMark) Ipsos IRI Extensive datasets around multimedia audience research and measurement. The Affluent Survey USA is an annual survey tracking media and consumer spending habits of U.S. households in the top 20% income level. Point-of-sale data linked to household panel purchasing data, providing detail around sales, pricing, promotion and market share for a variety of consumer products.

Syndicated Marketing Research Data (continued) Website Media Audit Nielsen Roper Center for Public Opinion Research Yankelovich Description Audience demographics and media consumption profiles for 100 media markets in the U.S. Point-of-sale data linked to household panel purchasing data, providing detail around sales, pricing, promotion and market share for a variety of consumer products. Datasets to support popular lifestyle and behavioral segmentation systems such as PRIZM. Database of public opinion and polling questions exploring many aspects of American life, including contemporary data as well as polling data dating back to the 1930s. MONITOR provides long-running syndicated research about consumer values, attitudes, and trends.

Other Sources of Marketing Data Website Description Google Analytics Detailed analytics, statistics and insights about Web site traffic, usability and sales effectiveness. Free and premium services available. LexisNexis Searchable source for full-text articles from regional, national and international newspapers, government documents, and many legal, medical and business publications. Statista A subscription-based statistics portal, providing searchable access to many original sources of market, industry, and business data.

CRM CRM systems are powerful software systems that serve several essential functions for marketing, sales, and account management. Organizations use them to: Capture internal data about customers and customer interactions and house these data in a central location Provide business users with access to customer data in order to inform a variety of customer touch points and interactions Conduct data analysis and generate insights about how to better meet the needs of target segments and individual customers Deliver a marketing mix tailored to the needs and interests of these target segments and individual customers

Using Marketing Information to Shape Marketing Strategy Different elements require different types of questions: Target Segment(s) Product Promotion Price Place

Types of Questions to Explore: Target Segment(s) What new insights do we have about our target segment(s)? Which problems should we be solving for our customers? Are we targeting the right segments?

Types of Questions to Explore: Product What attracts customers to our products? What improvements would make them even more attractive to our target segments?

Types of Questions to Explore: Promotion What types of messages will make target segments want our products? What types of promotional campaigns will work best for each target segment? Who do out target segments listen to, and what are they saying about us?

Types of Questions to Explore: Price How are we going at providing good value for the price? How does out pricing affect customers' willingness to buy? How would changes to pricing affect sales?

Types of Questions to Explore: Place Are we offering our products in the places and times that target segments feel the need for them? If now, how can we improve? How can we make it easier for customers to find and buy our products? Are there more efficient ways for us to get out products into customers' hands?

Don’t Forget to Measure Impact! This link between taking action and measuring results is important. It provides a continuing stream of marketing information to help marketers understand if they are on the right path and where to continue to make adjustments.

Practice Question In a promotion campaign, the experience marketing team reports that 1000 samples were distributed. What questions should you ask to evaluate the effectiveness of the campaign?

Quick Review How does marketing information help firms understand and reach consumers? What are the key types of marketing information including internal data, competitive intelligence and marketing research? What is the standard process for using marketing research to address an organization’s strategic questions? What are alternative methods for conducting marketing research, including primary and secondary research methods? What are major sources of available market data? How can Customer Relationship Management (CRM) systems help organizations manage and gain customer insights from marketing information? How is marketing information used to inform the marketing strategy?