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Reseach&Information - Marketing Research&...

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Unformatted text preview: Marketing Research & Information How do organizations listen to customers? The Value of Information is Determined By: The decision maker's ability and willingness to act on the information The accuracy of the information The level of indecisiveness removed The potential variation in possible outcomes The level of risk tied to a decision The competitive edge gained The cost of the information in time and money 2005 Box Box Office Champs Summer 2008Office Champs $318 mil. $227 mil. $316 mil. $219 mil. $505 million Source: http://www.boxofficemojo.com/yearly/chart/?yr=2008&p=.htm Market Research & Movies Concept tests of plots, casting, etc.. Screenings Testing in isolated markets Awareness tests HSX.com Marketing Information System vs. People and processes that provide needed information to marketing decision makers on an ongoing basis. Once designed, automatically provided Market Research Systematic process for uncovering key knowledge needed for a specific marketing management decision. Provided based on a special request Market Information Systems Example: Information from a Marketing Information System Daily sales volumes Number of product coupons redeemed Sales force performance in L.A. Region Number of renewed magazine subscriptions Consumer Price Index updates Ratio of sales hits per outbound call Considerations in Building a Marketing Information System Types of decisions each manager makes Types of information required to make decisions Types of information managers already receive Types of special studies periodically requested. Type of information each manager would like to have, but can't Frequency / Format Data analysis programs Market Research Marketing Research Process Define the problem (or research objective) 1. Develop the research plan 2. Collect and analyze the data 3. Develop findings and recommendations 4. Conduct followup 1. - Finding the Information -Secondary Data Pros: > Inexpensive > Quick to Obtain Cons: > May not fully meet your needs - Finding the Information Primary Data Pros: > Can potentially market insights Cons: > Requires time > Will likely require $ Avery Denison's new Quick Peel New product research included focus groups and observation research. Priced between $199 $289. Value proposition is machine pays for itself in 22 hours based on a temp at $20 per hour doing a mailing. Data Gathering Options for Surveys Cost (per contact) Telephone Mail Personal Interviews Internet Medium Low High Low Data Quantity Good Fair Excellent Good Response Rate Fair Poor Good Good Use focus groups to gain insights into the following: How consumers feel Why certain opinions are held Plan and design of further research Plan and design of marketing mix elements Don't use focus groups for the following: To project information onto a population To gain accurate information about individuals Focus Group Criticisms: Participants will remain guarded when discussing sensitive topics before others. Groups can yield false positives proposals may make sense and generate positive reaction, but not work in the market. Organizing and conducting focus groups require time and money. Sampling Plans Non-probability samples vs. Probability samples The key to selecting which approach to use is the management decision to be made Methods for Analyzing Buyer Preferences: Concept Tests and Conjoint Analysis Concept Tests Presents product idea and then, through a survey or interview, gauges level of interest Examples I would definitely buy I would probably buy I might or might not buy I would probably not buy I would definitely not buy I would use more than once per day I would use once per day I would use more than once per week I would use once per week I would use once per month I would never use Concept Tests Example How important are the following hotel factors to you? Very Important Room size Free Breakfast Pool Exercise Room InRoom Computer Access Not Important Conjoint Analysis Assumes that a product can be broken down into individual attributes. Applies to a variety of analytical procedures developed to estimate individual preferences from overall product judgements. To work, respondents are asked to provide preference judgements for different product attributes, and then mathematical analysis is used to "tease out" the individual's underlying value system. Source: Derived from Robert Dolan, "Conjoint Analysis: A Managers Guide, Harvard Business School, 1990 Conjoint analysis helps us to determine a consumer's value system. Recreation Options >> Ex Ro erci om se Po o l 200 Room Sq Footage 58 54 70 75 67 82 Rank 5 Rank 2 Rank 4 Rank 1 300 400 = Rank 6 Rank 3 The lowest rank is assigned a 0, the next lowest a 1, the next a 2, and so on: Recreation Options >> Ex Ro erci om se Po o l 200 Room Sq Footage 1 0 3 1.33 4 2 5 3.67 Average = 2.5 Average = 1.0 Average = 4.0 300 400 Average = Customer product preferences can then be calculated in the following manner: 400 sq. feet + pool = 4.00 + 3.67 = 7.67 200 sq. feet + pool = 2.50 + 3.67 = 6.17 400 sq. feet + exercise room = 4.00 + 1.33 = 5.33 300 sq. feet + pool = 1.00 + 3.67 = 4.67 200 sq. feet + exercise room = 2.50 + 1.33 = 3.83 300 sq. feet + exercise room = 1.00 + 1.33 = 2.33 How Conjoint Analysis Can Help You Can determine the importance of different product attributes what properties should your product have? Can aide in the selection of target markets which market segment(s) is likely to find your offer appealing. Can estimate the relative value of a product in the marketplace which products in the market are going to be the most successful? Marketing Research Challenges Question is beyond the respondent's base of knowledge. Question is too sensitive a topic. Respondents may not even be aware of their true reasons for behaving a certain way. Creative Market Research Approaches Keeping a journal Interpretation of vague images Look at a picture and tell a story Fill in cartoon balloons Complete the sentence Creative Market Research Approaches List 1 List 2 1 pound hamburger 1 pound hamburger 2 loaves bread 2 loaves bread Carrots Carrots 1 can Rumsford Baking 1 can Rumsford Baking Powder Powder Nescafe Instant Coffee Maxwell House (drip ground) Coffee 2 cans peaches 2 cans peaches Formal Market Research: Basic Types Direct Observation Experimentation Analysis of Purchase Data Survey Research Focus Groups Individual interviews ...
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