Chapter Four

Managing Marketing Information to Gain

Customer Insights

Chapter 4- slide 1
 Learning Objectives
Topic Outline

• Marketing Information and Customer Insights

• Assessing Marketing Information Needs
• Developing Marketing Information
• Marketing Research
• Analyzing and Using Marketing Information
• Other Marketing Information Considerations

Chapter 4- slide 2
 Marketing Information and
Customer Insights
Customer Insights are:
• Fresh and deep insights into customers
needs and wants and the marketplace
• Difficult to obtain
– Not obvious
– Customer’s unsure of their behavior
• Better vs. more information
– Pepsi’s servers take in a stunning six million
public conversations a day
https://www.youtube.com/watch?v=JvG2_JYJT1o

Chapter 4- slide 3
 Marketing research
The systematic design, collection, analysis, and
reporting of data relevant to a specific marketing
situation facing an organization.
– Example, insights into customer motivations,
purchase behavior, and satisfaction

Chapter 4- slide 4
Steps in the Marketing Research Process

Chapter 4- slide 5
Defining the Problem and Research
Objectives

• Define research problem

• Agree on research objectives
• Exploratory research (e.g. focus groups)
• Descriptive research (large groups, e.g.
questionnaires)
• Causal research (e.g. test marketing)

Chapter 4- slide 6
Chapter 4- slide 7
 Developing the Research Plan
• Determine the exact information needed
• Develop a plan for gathering it
• Present the plan to management
• Sources of data (secondary data and/or primary
data)
• Research approaches (Observation (Ethnographic) ,
Planning Survey, Experiment)
Primary • Contact methods (Telephone, Mail, Personal, Online)
Data
Collection • Sampling plans
• Instruments (Questionnaires, Mechanical
Instruments)

Chapter 4- slide 8
 Written Research Plan

Management problem

Research objectives

Information needed

How the results will help

management decisions

Budget

Chapter 4- slide 9
 Developing the Research Plan

Secondary data consists of information that

already exists somewhere, having been
collected for another purpose

Chapter 4- slide 10
 Secondary Data

Advantages Disadvantages

Cost Current

Speed Relevant

Could not get

Accuracy
data otherwise

Impartial

Chapter 4- slide 11
Chapter 4- slide 12
 Developing the Research Plan

Primary data consists of information

gathered for the specific purpose at hand

Chapter 4- slide 13
 Research Approaches

Observational research involves gathering

primary data by observing relevant people,
actions, and situations
Ethnographic research involves sending
trained observers to watch and interact
with consumers in their natural
environment

Chapter 4- slide 14
 Research Approaches

Survey research is the most widely used

method and is best for descriptive
information—knowledge, attitudes,
preferences, and buying behavior
• Flexible
• People can be unable or unwilling to answer
• Gives misleading or pleasing answers
• Privacy concerns

Chapter 4- slide 15
Chapter 4- slide 16
 Research Approaches
Experimental research
• Gathering primary data by selecting
matched groups of subjects, giving them
different treatments, controlling related
factors, and checking for differences in
group responses.
– best for gathering causal information—cause-
and-effect relationships
https://www.youtube.com/watch?v=XpaOjMXyJGk
Dove Real Beauty Sketches | You’re more beautiful than you think (3 mins)

Chapter 4- slide 17
 Contact Methods

• Focus Groups
– Six to 10 people
– Trained moderator
– Challenges
• Expensive
• Difficult to generalize from small
group
• Consumers not always open and
honest

Chapter 4- slide 18
 Marketing Research
Examples of Online Contact Methods

Online
Internet Online
marketing
surveys panels
research

Online
Online Click-stream
focus
experiments data
groups

Chapter 4- slide 19
 Marketing Research
Online Research

Advantages
• Low cost
• Speed
• Higher response rates
• Good for hard to reach groups

Disadvantages
• Not everyone is “online”
• Spam
Chapter 4- slide 20
 Strengths and Weakness of Contact Methods

Mail Telephone Personal Online

Flexibility Poor Good Excellent Good
Quantity of Good Fair Excellent Good
data collected
Control of Excellent Fair Poor Fair
interviewer
effects
Control of Fair Excellent Good Excellent
sample
Speed of data Poor Excellent Good Excellent
collection
Response Poor Poor Good Good
rate
Cost Good Fair Poor Excellent

Chapter 4- slide 21
 Sampling Plan

Sample is a segment of the population selected

for marketing research to represent the
population as a whole
– Who is to be studied?
– How many people should be studied?
– How should the people be chosen?
• Probability Sample
• Nonprobability sample

Chapter 4- slide 22
 Marketing Research Sampling Plan – Types of Samples

Probability Sample
Simple random sample Every member of the population has a known and equal
chance of selection
Stratified random sample The population is divided into mutually exclusive groups
and random samples are drawn from each group
Cluster (area) sample The population is divided into mutually exclusive groups
and the researcher draws a sample of the groups to
interview.

Nonprobability Sample
Convenience sample The research selects the easiest population members
Judgment sample The researcher uses their judgment to select population
members
Quota sample The researcher finds and interviews a prescribed number
of people in each of several categories

Chapter 4- slide 23
 Research Instruments

Questionnaires
• Most common
• Administered in person, by phone,
or online
• Flexible
• Research must be careful with
wording and ordering of questions

Chapter 4- slide 24
 Research Instruments—Questionnaires

• Closed-end questions include all possible

answers, and subjects make choices among
them
– Provide answers that are easier to interpret
and tabulate
• Open-end questions allow respondents to
answer in their own words
– Useful in exploratory research

Chapter 4- slide 25
 Research Instruments

Checkout
scanners

Nielsen Media People Neuro-

Research
(TV, satellite)
meters marketing

Mechanical
devices

Chapter 4- slide 26
Implementing the Research Plan |
Interpreting and Reporting
Collecting the information
Processing the information
Analyzing the information
Interpret findings
Draw conclusions
Report to management

Chapter 4- slide 27
 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.

Chapter 4- slide 28
 Distributing and Using Marketing
Information

Information distribution involves entering

information into databases and making it
available in a time-useable manner
• Intranet provides information to
employees and other stakeholders
• Extranet provides information to key
customers and suppliers

Chapter 4- slide 29
 Other Marketing Information
Considerations

Public Policy and Ethics

• Customer privacy
• Misuse of research findings

Chapter 4- slide 30