Managing Marketing Information to Gain Customer Insights
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1 Managing Marketing Information to Gain Customer Insights Chapter FourManaging Marketing Information to Gain Customer Insights
2 Learning Objectives Topic Outline Marketing Information and Customer InsightsAssessing Marketing Information NeedsDeveloping Marketing InformationMarketing ResearchAnalyzing and Using Marketing InformationOther Marketing Information Considerations
3 Marketing Information and Customer Insights Customer Insights are:Fresh and deep insights into customers needs and wantsDifficult to obtainNot obviousCustomer’s unsure of their behaviorBetter information and more effective use of existing informationNote to instructor
4 Marketing Information and Customer Insights Companies are forming customer insights teamsInclude all company functional areasCollect information from a wide variety of sourcesUse insights to create more value for their customersThe real value of marketing research and marketing information lies in how it is used—in the customer insights that it provides.Customer insights Fresh understandings of customers and the marketplace derived from marketing information that become the basis for creating customer value and relationships.
5 Marketing Information and Customer Insights Marketing Information Systems (MIS)Marketing information system (MIS) consists of people and procedures for:Assessing the information needsDeveloping needed informationHelping decision makers use the information for customer
7 Assessing Marketing Information Needs MIS provides information to the company’s marketing and other managers and external partners such as suppliers, resellers, and marketing service agencies
8 Assessing Marketing Information Needs Characteristics of a Good MISBalancing what the information users would like to have against what they need and what is feasible to offerUser’s NeedsMIS OfferingsThe marketinginformation systembegins and ends with users—assessingtheir information needs and thendelivering information that meetsthose needs.
9 Developing Marketing Information Marketers obtain information fromInternal dataMarketing intelligenceMarketing researchThe problem isn’t findinginformation; the world isbursting with information from a glutof sources. The real challenge is to findthe right information—from inside andoutside sources—and turn it intocustomer insights.
10 Developing Marketing Information Internal DataInternal databases are electronic collections of consumer and market information obtained from data sources within the company networkNote to InstructorInternal data can provide strong competitive advantage.Key information on customerssaleswebsites visiteddemographicspsychographicsservice and satisfaction measuresSource of customer insights about buying patterns.
11 Developing Marketing Information Competitive Marketing IntelligenceThe systematic collection and analysis of publicly available information about consumers, competitors and developments in the marketplaceNote to InstructorThis Web link brings you to AC Nielsen’s homepage. This includes not just their online division but their entire company. It is very interesting to explore the area called trends an insights.In slideshow view, click on movie icon to launch Meredith video snippet. See accompanying DVD for full video segment.Discussion QuestionAsk students what Nielsen might have learned about customers in these insights.
12 Developing Marketing Information Marketing ResearchMarketing research is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organizationWhereas marketingintelligence involvesactively scanning the generalmarketing environment, marketingresearch involves more focused studiesto gain customer insights relating tospecific marketing decisions.
13 Developing Marketing Information Steps in the Marketing Research ProcessThis first step is probably the mostdifficult but also the most importantone. It guides the entire researchprocess. It’s frustrating to reach theend of an expensive research projectonly to learn that you’ve addressed thewrong problem!
14 Developing Marketing Information Marketing ResearchDefining the Problem and Research ObjectivesExploratory researchDescriptive researchCausal researchNote to InstructorThese can be explained in more depth:Exploratory research—objective is to gather preliminary information that will help define the problem and suggest hypotheses.Descriptive research—describes things.Causal research—tests hypothesis about cause and effect relationships.Discussion QuestionConsider a local business near campus. . .How would they conduct exploratory research?What might they want to find out in descriptive research?What relationships might they explore in causal research?Students will have the following responses for the above questions: exploratory research (focus groups, interviews); descriptive research (who, when, how, why);causal research (price/demand, environment/purchase rate).
15 Developing Marketing Information Marketing ResearchDeveloping the Research PlanOutlines sources of existing dataSpells out the specific research approaches, contact methods, sampling plans, and instruments to gather dataNote to Instructor
16 Developing Marketing Information Marketing ResearchWritten Research Plan Includes:Management problemResearch objectivesInformation neededHow the results will help management decisionsBudget
17 Developing Marketing Information Marketing ResearchDeveloping the Research PlanSecondary data consists of information that already exists somewhere, having been collected for another purpose
18 Developing Marketing Information Secondary Data AdvantagesCostSpeedCould not get data otherwiseDisadvantagesCurrentRelevantAccuracyImpartial
19 Developing Marketing Information Marketing ResearchDeveloping the Research PlanPrimary data consists of information gathered for the special research plan
20 Developing Marketing Information Marketing ResearchPlanning Primary Data CollectionResearch approachesContact methodsSampling planResearch instruments
21 Developing Marketing Information Market ResearchResearch ApproachesObservational research involves gathering primary data by observing relevant people, actions, and situationsEthnographic research involves sending trained observers to watch and interact with consumers in their natural environmentNote to InstructorDiscussion QuestionAsk students how a company like Chiquita can use observational research for their banana sales.Students should mention sending teams to stores to watch how people choose bananas, who purchases, who influences the sale, how many do they buy in a bunch, do they break a bunch, do they prefer green or ripe? How might the results influence Chiquita when marketing bananas (4P’s).
22 Developing Marketing Information Market ResearchResearch ApproachesSurvey research is the most widely used method and is best for descriptive information—knowledge, attitudes, preferences, and buying behaviorFlexiblePeople can be unable or unwilling to answerGives misleading or pleasing answersPrivacy concerns
23 Developing Marketing Information Market ResearchResearch ApproachesExperimental research is best for gathering causal information—cause-and-effect relationshipsNote to InstructorDiscussion QuestionAsk how a catalog marketer like Victoria’s Secret might run an experiment on a direct mail offer.Students will realize they might change the copy, offer, envelope, and other parts of the direct mail piece.
24 Developing Marketing Information Marketing Research Strengths andWeakness of Contact MethodsMailTelephonePersonalOnlineFlexibilityPoorGoodExcellentQuantity of data collectedFairControl of interviewer effectsControl of sampleSpeed of data collectionResponse rateCost
25 Developing Marketing Information Marketing ResearchContact MethodsFocus GroupsSix to 10 peopleTrained moderatorChallengesExpensiveDifficult to generalize from small groupConsumers not always open and honestNote to InstructorDiscussion QuestionAsk students if they have been participants in or worked as researchers on a professional focus group.Ask them about the product, the other participants, and the results the researcher obtained. Ask them to put themselves in the role of the moderator and ask them what problems they might have when running the focus group.A partial list might include:Over-participantsQuiet participantsKeeping the group on trackMeeting the needs of the client
26 Developing Marketing Information Marketing ResearchContact MethodsOnline marketing researchInternet surveysOnline panelsOnline experimentsClick-stream dataOnline focus groups
27 Developing Marketing Information Marketing ResearchOnline ResearchAdvantagesLow costSpeedHigher response ratesGood for hard to reach groupsWebbased surveys tend to bemore interactive and engaging,easier to complete, andless intrusive than traditional phone or mail surveys.As a result, they usually garner higher response rates.
28 Developing Marketing Information Marketing ResearchSampling PlanSample is a segment of the population selected for marketing research to represent the population as a wholeWho is to be studied?How many people should be studied?How should the people be chosen?
29 Developing Marketing Information Marketing ResearchSampling Plan – Types of SamplesProbability SampleSimple random sampleEvery member of the population has a known and equal chance of selectionStratified random sampleThe population is divided into mutually exclusive groups and random samples are drawn from each groupCluster (area) sampleThe population is divided into mutually exclusive groups and the researcher draws a sampleNonprobability SampleConvenience sampleThe research selects the easiest population membersJudgment sampleThe researcher uses their judgment to select population membersQuota sampleThe researcher finds and interviews a prescribed number of people in each of several categoriesUsing probability samples, each populationmember has a known chance of being included in the sample, and researchers can calculateconfidence limits for sampling error. But when probability sampling costs too much or takestoo much time, marketing researchers often take nonprobability samples, even though theirsampling error cannot be measured.
30 Developing Marketing Information Marketing ResearchResearch InstrumentsQuestionnairesMost commonAdministered in person, by phone, or onlineFlexibleResearch must be careful with wording and ordering of questions
31 Developing Marketing Information Marketing ResearchResearch Instruments—QuestionnairesClosed-end questions include all possible answers, and subjects make choices among themProvide answers that are easier to interpret and tabulateOpen-end questions allow respondents to answer in their own wordsUseful in exploratory researchNote to InstructorDiscussion QuestionAsk students the disadvantages with open-ended questions.They might realize from their own experience that they get tired filling out many open ended questions and that they often lead to hard-to-code information.
32 Developing Marketing Information Marketing ResearchResearch InstrumentsMechanical devicesPeople metersCheckout scannersNeuro-marketingNote to Instructor
33 Developing Marketing Information Marketing ResearchImplementing the Research PlanCollecting the informationProcessing the informationAnalyzing the informationInterpret findingsDraw conclusionsReport to management
34 Analyzing and Using Marketing Information Customer Relationship Management (CRM)Managing detailed information about individual customers and carefully managing customer touch points to maximize customer loyalty.We’ve talked generallyabout managingcustomer relationships throughout thebook. But here, “customer relationshipmanagement” (CRM) has a muchnarrower data-management meaning.It refers to capturing and usingcustomer data from all sources tomanage customer interactions andbuild customer relationships.
35 Analyzing and Using Marketing Information Customer Relationship ManagementTouchpointsCustomer purchasesSales force contactsService and support callsWeb site visitsSatisfaction surveysCredit and payment interactionsResearch studies
36 Distributing and Using Marketing Information Information distribution involves entering information into databases and making it available in a time-useable mannerIntranet provides information to employees and other stakeholdersExtranet provides information to key customers and suppliers
37 Other Marketing Information Considerations Marketing Research in Small Businesses and Nonprofit OrganizationsInternational Market ResearchPublic Policy and EthicsCustomer privacyMisuse of research findingsNote to InstructorDiscussion QuestionsHow do you feel about your privacy with online, phone, in-person, or mail surveys? Are some better than others? When might the questions feel like an Invasion of privacy or fraud?Students will mention problems with privacy (health) or fraud (financial questions). They might not mind online as much as telephone research.