Marketing Chapter 4 Homework For The Next Two Years She

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LEARNING OBJECTIVES

In this chapter, we will address the following questions:

1. What is the scope of marketing research?

2. What steps are involved in conducting good marketing research?

3. What are the best metrics for measuring marketing productivity?

CHAPTER SUMMARY

1. Companies can conduct their own marketing research or hire other companies to

do it for them. Some of ways companies can creatively and affordably conduct research

2. Good marketing research is characterized by the scientific method, creativity,

3. The marketing research process consists of defining the problem, decision

4. In conducting research, firms must decide whether to collect their own data or use

data that already exist. They must also choose a research approach (observational, focus

5. Two complementary approaches to measuring marketing productivity are: (1)

marketing metrics to assess marketing effects and (2) marketing-mix modeling to

6. Assessing the ROI of social media is challenging but requires a range of short-

term and long-term financial and brand-related measures. Although Facebook “likes” and

Twitter tweets provide some sense of the engagement for a brand, a more complete set of

measures is typically needed to get a more accurate picture of social media or other

online activities.

C H A P T E R

CONDUCTING

MARKETING RESEARCH

OPENING THOUGHT

Marketing research is a process in which consumers’ thoughts, actions, and purchase

intentions are collected to form the basis of marketing decisions. Most students will relate to

marketing research techniques where the insights are gained directly from a process of

transcribing and reviewing responses – focus groups for instance – but will shy away from the

quantitative techniques/number crunching. If the analysis is presented as a “means to an end”

– a way to gain insights that make marketing decision making easier – then the process should

be accepted with greater enthusiasm.

TEACHING STRATEGY AND CLASS ORGANIZATION

PROJECTS

1. At this point in the semester-long marketing plan project, the students’ initial marketing

2. Commission a marketing research study on topic(s) of interest to the students at your

institution. During the course of the semester (15-16 weeks), have the students develop the

3. Sonic PDA Marketing Plan: Sonic has developed a sales forecast for its new PDA for the

next two years. Jane Melody wants to review estimates of industry demand for PDAs. She

also wants to develop an approach for measuring the effectiveness of Sonic’s marketing

efforts. She has asked you to:

• Determine, from available secondary data, estimates of total demand for PDAs for the

Enter the answers to these questions in a written marketing plan or into the Sales Forecasting

and Controls sections of Marketing Plan Pro.

ASSIGNMENTS

Ask students to contact a local marketing research firm in the area for the purpose of an

interview regarding research techniques, methods, and the difficulties in conducting research.

Pre-approve the set of questions prepared by the students prior to the appointment. Ensure that

the students will be able to collect information from the research company regarding how

information is collected. Once it is collected, what are some of the difficulties faced by the

researcher in presenting this information to the client?

The American Airlines case shows the power of conducting marketing research before

offering a service. In small groups for an in-class discussion, have the students comment on

the case in light of the marketing research process examined in the chapter. a

Have students watch this video on the concept of “neuromarketing” and comment on whether

END–OF–CHAPTER SUPPORT

MARKETING DEBATE—What Is the Best Type of Marketing Research?

Many market researchers have their favorite research approaches or techniques, though

different researchers often have different preferences. Some researchers maintain that the only

way to really learn about consumers or brands is through in-depth, qualitative research. Others

contend that the only legitimate and defensible form of marketing research uses quantitative

measures.

Take a position: The best marketing research is quantitative in nature versus the best

marketing research is qualitative in nature.

Suggested Response

Pro: People are complex in their buying habits and purchase decision-making. Consumers, do

not always have the capacity to voice, or understand how they decide to purchase a particular

The drawbacks of quantitative research, which include selection bias, response bias, and non-

response, will always allow this type of research to be criticized for such shortcomings and

their results discounted. Qualitative research, although having its own sets of disclaimers,

closely describes the actions of consumers—that is what marketing is all about in the first

place—to get someone to purchase something.

Con: Quantitative research is the only accepted method of marketing research that can be

scientifically defended. Quantitative research methods, techniques, and modeling have

advanced substantially in recent years. Along with these advancements in techniques,

MARKETING DISCUSSION

When was the last time you participated in a survey? How helpful do you think the

information was you provided? How could the research have been done differently to make it

more effective?

Marketing Excellence: IDEO

1) Why has IDEO been so successful?

2) What is the most difficult challenge they face in conducting their research and

designing their products?

3) In the end, IDEO creates great solutions for companies that then receive all the credit.

Should IDEO try to create more brand awareness for itself? Why or why not?

Suggested Answers: Students’ answers will vary—some will say “yes” and others will

say “no.” Both sets of answers should reflect on the nature of the company, its products,

Marketing Excellence: INTUIT

Questions:

1) Why are consumer research and design thinking so critical to Intuit’s success?

2) What are the challenges Intuit faces in the near future?

3) How important are Intuit’s products for mobile devices?

DETAILED CHAPTER OUTLINE

To make the best possible tactical decisions in the short run and strategic decisions in the long

run, marketers need timely, accurate, and actionable information about consumers,

competition, and their brands. Samsung used insights to develop the campaign for the launch

of the Galaxy S III smart phone.

I. The Scope of Marketing Research

A. Marketing research is the function that links the consumer, customer, and public to

the marketer through information

i. The information is used to identify and define marketing opportunities and

problems; generate, refine and evaluate marketing actions; monitor

marketing performance; and improve understanding of marketing as a

process.

ii. Marketing research specifies the information required to address these

issues, designs the method for collecting information, manages and

implements the data collection process, analyzes the results, and

communicates the findings and their implications.

B. Importance of Marketing Insights

i. Marketing insights provide diagnostic information about how consumers

and markets behave, why we observe certain effects in the marketplace

and what that means to marketers

ii. Marketing insights can form the basis for successful marketing programs,

and gaining insights is crucial for marketing success

C. Who Does Marketing Research?

i. Most large companies have their own marketing research departments,

which often play crucial roles within the organization.

ii. Smaller companies use everyone to carry out marketing research,

including customers, and they hire research firms or use affordable

methods like:

2. Using the Internet

4. Tapping into marketing partner expertise

1. Syndicated-service research firms

3. Specialty-line marketing research firms

D. Overcoming Barriers to the Use of Marketing Research

i. Many companies still fail to use marketing research sufficiently or

correctly

ii. An example of a marketing research failure was research that predicted the

failure of Star Wars

II. The Marketing Research Process

A. Step 1: Define the Problem, the Decision Alternatives, and the Research

Objectives

i. Do not define the problem too broadly or too narrowly

B. Step 2: Develop the Research Plan

i. Develop the most efficient plan for gathering needed information

ii. Discover what it will cost to execute the plan

iii. Consider data sources

1. Secondary data – collected for another purpose; already exists

2. Primary data – freshly gathered for a specific purpose or project

iv. Consider research approaches

1. Observational research

3. Focus group research

5. Behavioral research

v. Choose research instruments

1. Questionnaires

a. Closed–end questions specify all possible answers

i. Dichotomous

ii. Multiple choice

iii. Likert

b. Open-end questions allow respondents to answer in their

own words

i. Completely unstructured

ii. Word association

2. Qualitative measures

a. ZMET

3. Technological devices

a. Galvanometers

b. Tachistoscopes

c. Eye tracking

vi. Choose a sampling plan

1. Sampling unit: whom should we survey?

2. Sample size: How many people should we survey?

3. Sampling procedure: How should we choose the respondents?

vii. Choose a contact method

2. Telephone contacts

4. Online contacts

5. Online research pros:

a. Inexpensive

6. Online research cons:

a. Samples can be small and skewed

b. Online panels and communities can suffer from excessive

turnover

c. Online market research can suffer technological problems

and inconsistencies

C. Step 3: Collect the Information

i. Most expensive and error-prone phase

ii. Need to achieve consistency is one of the biggest obstacles

D. Step 4: Analyze the Information

E. Step 5: Present the Findings

F. Step 6: Make the Decision

G. Good marketing research

i. Uses the principles of the scientific method

ii. Is creative

iii. Does not rely on one method; uses two or three to increase confidence in

the results

iv. Recognizes that data are interpreted from underlying models that guide

information sought

v. Balances cost and value of information

vi. Avoids glib assumptions/has a healthy skepticism

vii. Is Ethical

H. A marketing decision support system (MDSS) is a coordinated collection of data,

III. Measuring Marketing Productivity

A. Marketing metrics assess marketing effects

i. Help marketers quantify, compare and interpret performance

ii. Marketers choose one or more measures based on the issues they face

iii. Examples:

2. Social media presence

4. Short-term financial benefits

6. Long-term brand lift

8. Sales turnover

10. Customer awareness, attitudes and behaviors

12. Relative price premium

14. Distribution and availability

16. Perceived quality

17. Loyalty and retention

B. Marketing-mix modeling estimates causal relationships and measure how

marketing activity affects outcomes

i. Data analyzed from sources like retailer scanner data, company shipment

data, pricing, media and promotion spending data

ii. Understand/isolate effects of marketing activities and allocate or reallocate

expenditures

iii. Cons:

2. Focuses on incremental growth instead of baseline sales or long-

term effects

4. Generally fails to incorporate metrics related to competitors, trade,

or sales force

C. Marketing dashboards are a structured way to disseminate insights gleaned from

1. Customer metrics pathway

3. Cash-flow metrics pathway