Principles of Marketing BA 3365 Section 006 Marketing Research Professor Andrei Strijnev The University of Texas at Dallas Fall 2005

TURNING MARKETING INFORMATION INTO ACTION 8 8 C HAPTER

Identify a five-step marketing research approach leading to marketing actions. Describe how secondary and primary data are used in marketing, including the uses of questionnaires, observations, experiments, and panels. AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO:

Understand how information technology enables information systems to be used to link massive amounts of marketing information to meaningful marketing actions. Recognize alternative methods to forecast sales and use the lost-horse and linear trend extrapolation methods to make a simple forecast. AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO:

TEST SCREENINGS: LISTENING TO CONSUMERS TO REDUCE MOVIE RISKS. –What’s in a Movie Name? –How Filmmakers Try to Reduce Risk TURNING MARKETING INFORMATION INTO ACTION

What Marketing Research Is and DoesMarketing Research –A Means of Reducing Risk and Uncertainty Why Good Marketing Research is Difficult THE ROLE OF MARKETING RESEARCH

Set the Research ObjectivesObjectives Identify Possible Marketing Actions Measures of success STEP 1: DEFINE THE PROBLEM

Specify ConstraintsConstraints Identify Data needed for Marketing Actions Determine How to Collect Data –Concepts –Methods Probability sampling Nonprobability sampling Statistical inference STEP 2: DEVELOP THE RESEARCH PLAN

Types of marketing information STEP 3: COLLECT RELEVANT INFORMATION

Typical problems in wording questions

Using Information Technology to Trigger Marketing ActionsInformation Technology –The Marketing Manager’s View of Sales “Drivers” –Key Elements of an Information System –The Challenge in Mining Marketing Data –Data Mining: A New Approach to Searching the Data OceanData Mining STEP 3: COLLECT RELEVANT INFORMATION

FIGURE 8-8 Product and brand drivers: factors that influence sales

FIGURE 8-9 How marketing researchers and managers use information technology to turn information into action

Analyze the Data Present the Findings STEP 4: DEVELOP FINDINGS

FIGURE 8-10 Converting data into marketing actions: What to do about supermarket chains that increased retail prices by more than 20 cents per package?

Identify the Action Recommendations Implement the Action Recommendations Evaluate the Results STEP 5: TAKE MARKETING ACTIONS

Basic Forecasting Terms –Market or Industry PotentialMarket or Industry Potential –Sales or Company ForecastSales or Company Forecast Two Basic Approaches to Forecasting –Top-Down ForecastTop-Down Forecast –Buildup ForecastBuildup Forecast MARKET AND SALES FORECASTING

Specific Sales Forecasting Techniques –Judgments of the Decision Maker Direct forecast Lost-horse forecast –Surveys of Knowledgeable Groups Survey of buyers’ intentions forecast Salesforce survey forecast Jury of executive opinion forecast Survey of experts forecast –Statistical Methods Trend extrapolation MARKET AND SALES FORECASTING