to be successful, a company must strive to discover and satisfy the needs of customers. satisfy better than the competition. objectives- make what you can sell, focus on buyer's needs
customer relationship era
organizations have a market orientation- continuously collect info about customer needs, share info across departments, use the info to find ways to create value. The objective is to develop and manage long term customer relationships.
an organizational function and a set of processes for creating, communicating, and delivering value (products/services) to customers and for managing customer relationships in ways that benefit the organization and its shareholders
marketing focuses on...
discovering customer needs and wants, and satisfying them. organization must deliver genuine benefits to customers
marketing mix (4ps)- product price place promotion.
environmental factors such as social, economic, technological, competitive, regulatory.
systematic design, collection, analysis, and reporting of data and findings relevant to marketing decision making
applied research versus basic research
applied research aimed at solving specific problem, (ex- more in depth understand of customer segment). basic or pure is aimed at expanding the frontiers of knowledge.
applications of marketing research
selecting target markets, product/service research, pricing research, promotional and advertising testing, distribution, monitoring changing trends in marketplace, branding and positioning
marketing research process
1. define problem
2.establish research objectives
3. determine research design
4. select research methods
5. determine sampling procedure
6. collect data
7. analyze data
8. present findings and recommendations
9. make decision
data collection methods
primary- observational, experimental, qualitative, survey
secondary- internal and external
(client-side research) corporations- consumers and industrial goods and service providers (in house research departments), federal/state/local governments, media companies, retailers and wholesalers.
external suppliers (agencies hired to fulfill client's marketing research needs)
media companies, syndicated service firms, custom research firms, field service firms, specialized service firms, online tracking firms
seeking to support decision making
assess target segment reactions tot marketing mix, evaluate effectiveness of marketing strategies, perceptions of brand and competitor brands, assess changes in external environment, identify opportunities (new markets, product development), quality of customer service, and more effectively target a promotion
factors limiting project success
poor framing of problem, manager disagreement on objectives, lack of resources, opportunity has passed, decision making info already exists, and costs of conducting outweigh the benefits
syndicated data services
collect info and make available to multiple subscribers
online research specialists
measure online consumer behaviors
use of proprietary process to measure satisfaction (test markets, public opinion surveys)
specialty and limited function and field services firm
sampling, recruiting, data collection using variety of methods (mall intercept, fieldwork, focus marketing research)
industry challenges and pressures
respondent fatigue, falling response rates. reaching a rep sample of respondents. reduce time in achieving results. conducting effective research online nonprobability sampling. taking advantage of technology
(clients are less interested in our methods and processes than in understanding and insights our work may provide)
tips for strategic partnering
avoid magic techniques (if you don't understand it don't buy it). question guaranteed solutions (avoid gurus or prophets). price- never choose research company just cause it offers lowest estimate. build a relationship. set clear objectives. look in on research while it's in process. engage entire team.
industry ethics- two way street
all parties both supplier, client, and respondents are responsible for maintaining and fostering ethical standards and conduct.
supplier and vendor unethical practices
overusing respondent list, using professional respondents, low ball pricing, over subjectivity and bias, abusing respondents, violating client confidentiality.
client/company unethical practices
requested bids when a supplier has been predetermined. requesting bids to obtain free advice and or methodology recommendations. making false promises for future work. requesting proposals without authorization for funds
to choose whether to participate. to a safe environment. to be informed not be given dishonest statements to secure cooperation. to confidentiality.
problems to research objectives
customer satisfaction scores have fallen. competition has launched a new product. alumni aren't contributing to school. attendance is falling at games. season ticket holders aren't renewing. objective is what do we need to learn or understand about whom and what?
translating problem into research objectives
identify problem or opportunity, find out why info is needed/how will it be used, use symptoms to clarify problem/opportunity, does info already exist?
recognize problem or opportunity
can problem become an opportunity? how has external environment changed? how should we change existing marketing mix?
why is info being sought?
what will info be used for, what decisions will be made, prioritize client/manager questions, goal is to design actionable research
understand environment (conduct exploratory research)
preliminary research may be conducted to increase understanding of concept, clarify exact nature of problem, identify important variables or drivers to be investigated, highly flexible
conducting exploratory research
methods used are secondary data analysis, sme interviews (subject matter expert), pilot studies, case analysis: noncompetitive benchmarking, focus groups, internal data bases of previous studies.
goal- major dimensions of problem are identified. challenge is time, budget constraints
use symptoms to clarify problem
distinguish between symptoms vs real problem using iceberg principle.
symptoms- poor sales, declining profits, increased customer complaints, customer defections
observation that in many if not most cases only very small amount of info is available or visible about situation whereas real info of data is either unavailable or hidden. 1/10 of an iceberg's mass is seen outside while about 9/10 of it is unseen deep down in the water
determine research design
plan or addressing research objectives or hypothesis, a blueprint. exploratory, descriptive, and casual methods are used. common objective is to gain background info and develop hypotheses, measure state of variable of interest, test hypotheses that specify relationships between two or more variables.
exploratory research method
gain background info, define terms, clarify problems, establish priorities
descriptive research method
answer questions about who customers are, what they buy, where they buy, when they buy, and how they find out about products. to provide snapshot of population. used to build customer profiles, describe population and estimate percentages, and measure brand loyalty/awareness/attitudes, usage
causal research method
understand phenomenon in terms of conditional statements. casual relationships are determined by use of experiments. purposes is to identify cause and effect and understand relationships among variables. independent variables to be manipulated and dependent variables to be explained. methods used are surveys and experiments. challenge is extraneous variables
select research methods
qualitative methods, observation, survey, experiment
focus groups- 8-12 respondents, moderator, client observation.
in depth interview- guided by respondent, diads and triads also effective
used to experiment patterns of behaviors, monitor respondents' actions without direct interaction, personal and mechanical methods are used
structured questionnaire used to obtain facts, opinions, and attitudes (guides convo in person by phone, and online)
face to face surveys may be conducted in mails, homes, business
designed to measure causality. researcher changes one or more independent variables and observes effect of changes on dependent. changing variables (packaging, price, advertising themes). observe effects to measure causality. ideally hold all other factors constant. lab experiments
design sampling procedure
sample- a subset from larger population. sampling approaches- subset assumed to be representative cross section of population nonprobability sample: the chances of selection for the not precisely known
survey data via internet, field services collects via phone interviews, thee city study conducted via focus groups, client check ins.
refer back to research objectives. draw conclusions from data collected. qualitative-subjective, looking for patterns. quantitative- frequency tables. big ideas, develop findings
preparing and presenting findings
to management/client contact, usually written and oral, persuade manager/client that results are credible, keep in mind nature of audience, report/presentation quality. do the findings meet established research objectives? has methodology been followed? if not, why not. are conclusions logical on data analysis? do recommendations seem valid?
data that have been previously gathered and might be relevant to problem. source of new ideas that can be explored later. a solution to provide enough info to resolve problem. to clarify and define problem and formulate hypotheses. provide background info to enhance credibility. a prerequisite to collecting primary data and help methodology. may alert researcher to other problems
new data gathered to help address problem or clarify opportunity under investigation. helps define population/sample parameters for primary research. serves as reference to compare validity of primary data.
internal databases- accounting data. sales reports. inventory management. customer databases. previous research studies.
published data sources, computer retrievable databases (online databases), standardized sources of marketing data
findings aren't subject to quantification or quantitative analysis. conclusions aren't based on precisely, measurable stats but on more subjective analysis and observations. methods used are focus groups, in depth interview, projective techniques, observation, ethnography. techniques are open minded and probing. results are human, descriptive, subtle.
research that uses mathematical analysis. analysis typically performed using measurable and numeric standards.
qualitative research uses
to bring customer to life, identify deep consumer motivations and feelings, to expose managers to customer challenges first hand, hearing directly from consumer. improve efficacy of quantitative research. to enrich quantitative findings-dig deeper to understand quantitative patterns
qualitative research limitations
no effective at precisely measuring small differences in attitudes. findings not statistically representative of general population. subjectivity and bias.
focus group (traditional)
group of 6-12 participants facilitated by a moderator and is usually in depth discussion on one particular topic or concept. group dynamic plays key role. esp popular for consumer goods. not as effective for b2b or industrial customer research. extremely popular method. common uses- ideal generation, brainstorming, understanding customer language, in depth insight to motives, attitudes, perceptions, reveal needs likes and dislikes and prejudices driven by emotions. may be used to develop a questionnaire or provide depth following survey results.
objective professional hired to facilitate focus group. critical skills- innate curiosity, ability to put respondents at ease, create rapport, good listening and observation skills, unbiased open objective, flexibility, comfort with uncertainty, business skills ability to interact with client team
focus group discussion guide
written outline of topics to be discussed. three stages- warm up, introductions, establish rapport. broad discussion of topic. deeper dive into multiple issues related to topic. lenth is 90-2 hrs. can be too long and cause participant fatigue, too many topics.
focus group advantages
felxible, compelling, immediate. able to look consumers in the eye. participant interactions and brainstorming stimulate new ideas. quickly provide first hand consumer insights to client observers. can be executed quickly. quick evaluation of new products or ad concepts
focus group limitations
desire for quick answers. may be misused as representative of population. significant level of expertise needed. respondents- not target audience introverts, dominants, no shows. impersonal, clinical feel of focus group facility may limit candor. moderator style. group think
in depth interviews
unstructured, one on one interviews. guided by interviewee's responses. advantages- group pressure eliminated, ability to probe at length, ability to improvise based on interviewee interest. can be conducted anywhere on site
disadvantages- small sample size, relative cost, client doesn't often participate in field
used to tap deeper feelings by having respondents contemplate an unstructured situation. methods- word associations, personification, sentence completions, cartoon dialogue, storytelling, photo card sorts, drawings.
systematic process of recording patterns of occurrences or behaviors without normally communicating with people involved. methods are people watching people, people watching phenomena, machines watching people, machines watching phenomena
you see what people actually do, relatively quick execution, electronic collection such as scanners is efficient and accurate, clients can observe their customers along with researcher
only physical behavior can be observed, can't measure attitudes, beliefs, intentions, or feelings. not always good representation of general population. interpretation can be subjective. expensive and time consuming.
focuses on culture and meaning in everyday life. descriptions of world using the terms of those who experience it. key principles are context, observation, and in depth interview. ethnographic approach becomes the consumer, reaching non traditional markets. it impacts brand identity, new product development, marketing communications and customer experience
cross sectional study
observational. researcher records info about their subjects without manipulating study environment. allows researcher to compare different variables at the same time. takes a snapshot of the moment.
observational. conducts research over a long period of time and does not come into contact with subjects. extends beyond a single moment in time so it can establish sequences of events.
combination of different methods, study group, local and temporal settings and different theoretical perspective in detailing with a phenomenon. helps describe and formalize relationship between qualitative and quantitative research. helps maintain authenticity and validity of research cause it's multi method approach