Kotler Keller Marketing Management 14e Conducting M arketing - PDF document

Phillip Kevin Lane Kotler • Keller Marketing Management • 14e Conducting M arketing Research ١

Discussion Questions 1. What constitutes good marketing research? 2. What are the best metrics for measuring marketing productivity? 3. How can marketers access their return on investment of marketing expenditures? Slide 3 of 22 M arketing Research S ystem M arket Research How and why Customer and market Insight Slide 4 of 22 ٢

M arketing Research The systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing the company. Over $28 billion was spent on marketing research in 2007. Creative Research M eans Check out rivals Internet sources Rivals M arketing partners Student projects Slide 6 of 22 ٣

M arketing Research Process Slide 7 of 22 Step 1: Define the Problem Focused inquiry • Specify decision alternatives • State research objectives -What is the top 10 Satellite channels viewed by Jordanians? Will passengers pay $25 for internet on a direct flight between Chicago and Tokyo? Slide 8 of 22 ٤

Step 2: Develop the Research Plan Research Approaches • Observation • Focus groups • Surveys • Behavioral data • Experiments Data Sources • Secondary data • Primary data Research instrument • Questionnaires Sampling plan • Qualitative measures Contact method • Technological devices Slide 9 of 22 Step 3: Collect the Information Most Online surveys expensive step Most prone to errors Telephone surveys Interviews In-home surveys Slide 10 of 22 ٥

Step 4: Analyze the Information Develop summary measures Compute averages Statistical analysis / decision models Slide 11 of 22 Step 5: Present the Findings Transform raw data into insight Present information in clear and compelling fashion Slide 12 of 22 ٦

Step 6: M ake the Decision Research Decisions Research should guide decisions, not be used to support decisions already made. Slide 13 of 22 Types of Research shed light on the real nature of the Exploratory problem and to suggest possible solutions or new ideas it seeks to quantify demand, such as how many first-class Descriptive passengers would purchase in- flight Internet service at $25 its purpose is to test a cause-and- Causal effect relationship Slide 14 of 22 ٧

Questionnaire Do’s and Don’ts • • Ensure questions are free Avoid negatives of bias • Avoid hypotheticals • M ake questions simple • Avoid words that could be • M ake questions specific misheard • • Avoid jargon Use response bands • • Avoid sophisticated words Use mutually exclusive categories • Avoid ambiguous words • Allow for “other” in fixed response questions Slide 15 of 22 Pros and Cons of Online Research Advantages Disadvantages • Inexpensive • Small samples • Fast • Skewed samples • Accuracy of data • T echnological problems • Versatility • Inconsistencies Slide 16 of 22 ٨

What is a M arketing Decision Support S ystem (M DSS)? • A marketing decision support system is a coordinated collection of data, systems, tools, and techniques with supporting hardware and software by which an organization gathers and interprets relevant information from business and environment and turns it into a basis for marketing action. Slide 17 of 22 Barriers Limiting the Use of M arketing Research • A narrow conception of the research • Uneven caliber of researchers • Poor framing of the problem • Late and occasionally erroneous findings • Personality and presentational differences My experience - Satellite channels viewers in Jordan - Political participation in political life Slide 18 of 22 ٩

M arket Research Can Fail a science fiction film 1970 whether to back the film The film would fail Rewards $4.3 Billions The reason is concentration on information not insight Slide 19 of 22 Characteristics of Good M arketing Research 1. Scientific method 2. Research creativity 3. M ultiple methods 4. Interdependence of models and data 5. Value and cost of information 6. Healthy skepticism 7. Ethical marketing Slide 20 of 22 ١٠

Measuring Marketing productivity (1) Marketing metrics to assess marketing effects and (2) Marketing-mix modeling to estimate causal relationships and measure how marketing activity affects outcomes. Slide 21 of 22 What are M arketing M etrics? M arketing metrics are the set of measures that helps marketers quantify, compare, and interpret marketing performance. Slide 22 of 22 ١١

M arketing M etrics External Internal • • Awareness Awareness of goals • • M arket share Commitment to goals • • Relative price Active support • • Number of complaints Resource adequacy • • Customer satisfaction Staffing levels • • Distribution Desire to learn • • Total number of Willingness to change customers • Freedom to fail • Loyalty • Autonomy Slide 23 of 22 What is M arketing-M ix M odeling? M arketing-mix models analyze data from a variety of sources, such as retailer scanner data, company shipment data, pricing, media, and promotion spending data, to understand more precisely the effects of specific marketing activities. M arketers can conduct multivariate analyses, such as regression analysis, to sort through how each marketing element influences marketing outcomes such as brand sales or market share. Slide 24 of 22 ١٢

M arketing M easurement Pathway Slide 25 of 22 M arketing Dashboard Slide 26 of 22 ١٣

Sample Customer-Performance Scorecard M easures • % of new customers to average # • % of lost customers to average # • % of win-back customers to average # • % of customers in various levels of satisfaction • % of customers who would repurchase • % of target market members with brand recall • % of customers who say brand is most preferred Slide 27 of 22 M arket Survey Questionnaire ١٤

Question Types - Dichotomous In arranging this trip, did you contact American Airlines?  Yes  No Slide 29 of 22 Question Types – M ultiple Choice With whom are you traveling on this trip?  No one  Spouse  Spouse and children  Children only  Business associates/ friends/ relatives  An organized tour group Slide 30 of 22 ١٥

Question Types – Likert Scale Indicate your level of agreement with the following statement: Small airlines generally give better service than large ones.  Strongly disagree  Disagree  Neither agree nor disagree  Agree  Strongly agree Slide 31 of 22 Question Types – Semantic Differential American Airlines Large … … … … … … … … … … … … ...… … .Small Experienced… … … … … … … .… .Inexperienced M odern… … … … … … … … … .… ..Old-fashioned Slide 32 of 22 ١٦

Question Types – Importance Scale Airline food service is _____ to me.  Extremely important  Very important  Somewhat important  Not very important  Not at all important Slide 33 of 22 Question Types – Rating Scale American Airlines’ food service is _____.  Excellent  Very good  Good  Fair  Poor Slide 34 of 22 ١٧

Question Types – Intention to Buy Scale How likely are you to purchase tickets on American Airlines if in-flight Internet access were available?  Definitely buy  Probably buy  Not sure  Probably not buy  Definitely not buy Slide 35 of 22 Question Types – Completely Unstructured What is your opinion of American Airlines? Slide 36 of 22 ١٨

Question Types – Word Association What is the first word that comes to your mind when you hear the following? Airline ________________________ American _____________________ Travel ________________________ Slide 37 of 22 Question Types – Sentence Completion When I choose an airline, the most important consideration in my decision is: __________________________________________ __________________________________________ __________________________________________ __________________________________________ __________________________________________ ______________________________. Slide 38 of 22 ١٩

Question Types – Story Completion “I flew American a few days ago. I noticed that the exterior and interior of the plane had very bright colors. This aroused in me the following thoughts and feelings.” Now complete the story. ________________________________________ ________________________________________ ________________________________________ ________________________________________ _______________ Slide 39 of 22 Research Sampling Plan • Sampling unit: Who is to be surveyed? • Sample size: How many people should be surveyed? • Sampling procedure: How should the respondents be chosen? Slide 40 of 22 ٢٠

For Review • What constitutes good marketing research? • What are the best metrics for measuring marketing productivity? • How can marketers assess their return on investment of marketing expenditures? Slide 41 of 22 ٢١