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28 Cards in this Set
- Front
- Back
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Marketing research (3 reasons to do it
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i. Scan macro for opportunity and threats
ii. Risk assessment of future programs iii. Monitor current programs |
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Research process
- first three |
a. Problem definition – establish the problem to be addressed “we need to measure awareness of current marketing theme”
b. Information needed c. Type of study or research i. Exploratory – we don’t know much ii. Descriptive – we think we know the market, lets find supporting evidence iii. Causal – was our price reduction the cause of increased sales |
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Research process
- last three |
d. Data collection
i. 2ndary over primary (less explensive – data already in existence) ii. primary data is generated for the specific problem under study e. Data analysis and conclusions f. Reporting |
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Primary Data sources
informal and qualitative (phenomenological, exploratory and clinical) and focus groups |
a. Informal – info from family friends, co-workers
b. Qualitative research – small groups that help define the market 1. Phenomenological – how product is used in every day life 2. Exploratory – create hypotheses for further research.- my exploratory findings show that marketing campaign A is working better, lets do some more research to find out if that is true. 3. Clinical – explores the reasoning behind customer purchasing behavior ii. Quantitative - very analytical, using age, race, gender, etc… to explain customer iii. Focus group- most widely used |
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Primary data sources
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i. Observe supermarket through one-way mirror
ii. Look in people’s pantry to see the brands bought iii. Observe pupil dilation when watching an ad iv. Web scrape blogs v. Virtual shopping vi. “deep dives” |
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Deep Dives
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1. Shadow a family
2. Behavioral mapping 3. Consumer journey – stick kids art on the fridge. 4. Camera-video journals – interviews 5. Storytelling from consumers 6. Extreme user interviews – kids cooking 7. Un-focus groups – get random people with different interests |
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Prim data - surveys
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To what group is it sent
What approach 1. Sampling considerations a. Not a Convenience samples b. No Non-response bias 2. Survey types a. Personal interviews b. Telephone intervies c. Mail d. Internet |
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Things to consider with survey type
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a. Cost
b. Control c. Response rate = % of surveys completed d. Potential for interviewer bias e. Time to obtain data f. Flexibility g. Non-response bias |
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Prim Data - panels
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i. Can observe changes in ones behavior over time
ii. Problem = panel drop out “mortality” iii. Ex- grocery cards- they ask you every time you shop, what you bought iv. Types: continuous reporting, scanner panel, special purpose |
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Prim Data - experiments
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i. To show conclusively that change in X produced Y
ii. Drop in price caused sales iii. Establish causation iv. Manipulation 1. Test one area and keep others constant v. Control group – not subject to the experiment vi. External validity – can be applied to a lot of people vii. Internal validity – only change one factor |
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Primary Data - models and simulation
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i. Mathematical models developed to simulate the market
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Forecasting
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consumer and competitor trends, economic trends, new technology
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Forecasting - judgement method
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pure opinion
i. Naïve extrapolation – take current sales and add x % to it for next year ii. Sales force – what do your sales people project they’ll get iii. Executive opinion – managers own opinion iv. Delphi method – jury of experts from diverse population |
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Forecasting - counting method
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use cust data
i. Market testing – use primary data to predict sales (new product) ii. Market surveys – purchase intention questions (1=you won’t buy, 10= definitely buying) iii. Chain ratio- method (funnel model) -= gillete = population, half are men, 60 % are over 18, 80 % live in urban areas, etc… until you get to your target segment |
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Forcasting - time-series method
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use past sales data
i. Moving average – use averages of historical data to create a forecast ii. Exponential smoothing – uses complicated formulas to use history for future iii. Extrapolation – S = a + bTime 1. If max stays on course, he will have over 3,000 yards passing |
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Association/causal method
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models relating market factors to sales
i. Correlation 1 or -1 ii. Regression analysis iii. Leading indicators – economic variable that change and lead to change in whole economy iv. Econometric models – use for predicting a large company or whole market |
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Macro-environment
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demographic, economic forces, natural forces, technological forces, political forces, cultural forces
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Factor analysis
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a. Factor 1 = quality, brand name, fancy when company is over
b. Factor 2 = sales, coupons, can take it or leave it c. There are 2 factors that develop through a survey such as things pertaining to i. Sophistication ii. Thrift |
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Cluster anaylsis
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cluster using perceptual map
a. Where segments cluster up in relation to the 2 factors i. Some like quality and sales ii. Some just care about quality iii. Some don’t care about quality and only sales |
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Customer Profiling
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a. Take the 4 segments and think of people you know who fit the description and then think of all their characteristics.
b. Keep thinking of people who fit it until you have 3 -6 people c. This is your segment. d. They describe in many characteristics what the segment is |
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Conjoint analysis
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golf ball vs dist vs price slide
a. Markets ideal = quality, durability, low price b. Manufacturer’s ideal = low durability and high price c. Take a table relating 2 factors. i. Rate which order of options you would prefer ii. Use the ranking to give the variables values that add up to keep the ranking the way they are iii. Take the values and use them to add up total utility of a buyer d. **used to determine what products the firm should make e. **used to forecast market share of that product |
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Market Potential
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max sales attainable for category - bigger than forecast (expected)
a. TAM( total addressable market) = # customers * quantity * repurchase rate * price |
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Category Development Index (CDI)
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a. % of category sales* in a geographic area X 100/ % of the country’s population in area
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Brand Dev Index (BDI)
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a. % of brand’s sales* in a geographic area X 100/ % of the country’s population in area
i. Numbers over 100 indicate a greater propensity to buy the product category (CDI) or brand (BDI). |
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Market Share
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12. Market share = brand sales/ category sales
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NMC
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net marketing contribution
sales- COGS – marketing ex |
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Marketing ROS
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NMC/sales
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Marketing ROI
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NMC/ marketing ex
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