8
Consumer
Insight
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C HAPTER O BJECTIVES
1. How do companies use the information
they get from consumer interactions?
2. What is marketing research? How does
it help decision makers make better
decisions?
3. What is a marketing information
system? How does it help to establish,
develop, and maintain customer
relationships?
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 8-2
O BJECTIVE 1
How do companies use the
information they get from
consumer interactions?
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D
Consumer insight is perceived
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F
I
meanings of data collected from the
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E study of consumer Which one
D
should I buy?
behavior.
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C USTOMER I NSIGHT
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X
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L
A
I
N
E
D
Data Insight
Customer insight is taking the
raw data gained from research Attract Retain
and turning it into insight that
will allow the company to attract
and retain customers.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 8-5
C ONSUMER I NSIGHT
A Customer insight is about asking the right questions.
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P
What do customers think…
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…about my brand? Competitor’s brand?
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D
Why do customers…
…buy my brand?
What are…
…consumer expectations?
The opportunities?
The threats?
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O BJECTIVE 2
What is marketing research?
How does it help decision
makers make better decisions?
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Marketing Research is the
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E
F
gaining and analysis of information
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N
E
used to identify and define marketing
D
opportunities that connect consumers
to marketers.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 8-8
M ARKET R ESEARCH
E Research falls into two categories: pure and applied.
X Marketing research is applied because it seeks to find
P
answers to practical problems.
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A Applied Research
I Why are sales declining?
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E Where to open new
D bakery?
How many potential customers?
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M ARKET R ESEARCH
A
P
P Make Identify
L Better Opportunities
I decisions (and Threats)
E
D
Conducting market research allows
managers to make better decisions, as
well as identify opportunities and
threats. Companies also use market
research to monitor the ongoing
performance of their business.
The findings from these type of studies Monitor Performance
can often uncover problems before they
begin to show up in lower sales volume.
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 8-10
T HE M ARKET R ESEARCH P ROCESS
A
P
These are the five steps in
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1 Define the Problem
the market research process.
I Each step will be covered in
E
D 2 Design the Research the following slides.
3 Conduct the Research
4 Analyze the Data
5 Address the Problem
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D EFINE THE P ROBLEM
A
P “If I had but one hour to save
P the world, I would spend 55
L
minutes defining the problem.”
I
E – Albert Einstein
D
What do you want to learn?
Is it cost effective?
Will the results matter?
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T YPES OF R ESEARCH D ATA
A
P Research Question
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E
D
Secondary Data Primary Data
• Primary data – Information that is collected to
address a current research question.
• Secondary data – Information that has
previously been collected for another purpose.
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R ESEARCH D ESIGN C ATEGORIES
A
P
P
L Research Question
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E
D
Exploratory Descriptive Explanatory
Why do How often do What happens if
consumers consumers shop for we increase the
purchase brand groceries and where price?
X? do they shop?
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R ESEARCH D ESIGN C ATEGORIES
A Based on the questions to be answered, the
P researcher will need to determine the type of research
P design.
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I • Exploratory research is used to identify new areas
E for study and is useful in narrowing broad research
D
questions into smaller areas for future research.
• Descriptive research is used to describe marketing
variables such as who, what, when, etc.
• Explanatory research seeks to understand the
relationship between independent and dependent
variables.
• Experiments are often used in this type of research design.
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R ESEARCH T YPES
A
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P
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Research Types
I
E
D
Qualitative Quantitative
• Focus Groups Surveys
• Interviews
• Ethnographic
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D
E
F Once the research design has been determined, the
I
N researcher will then decide whether to use qualitative or
E quantitative research.
D
• Qualitative research are those techniques which gain
information by observing people.
• Qualitative research includes focus groups, interviews,
and ethnographic studies.
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• Focus groups involve bringing members of the population
of interest together in small groups to openly discuss a
D predetermined topic.
E • A skillful moderator is needed to keep the discussion
F
I
on track.
N • Structured interviews are conducted one-on-one between
E a trained interviewer and an individual.
D
• Discussions are centered around a set of
predetermined topics. Depending on the research
question.
• Ethnographic research is an observational technique
where a trained researcher immerses themselves into a
specific environment.
• This type of research may include watching
consumers at home, as they shop, or during any other
area of interest.
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C ONDUCT THE R ESEARCH
A
P Non-sampling Error
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L
I
E
D
Collect Data
Validity and Reliability
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C ONDUCT THE R ESEARCH
A The first step in conducting the research is to collect data.
P Even if every step has been taken correctly up to this point,
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L • The data collection step can invalidate your results.
I • Problems can occur in the transfer of the raw data
E
from surveys to computer databases. Mis-keyed
D
information, omitted pages, etc. can create
destruction on findings.
• Sampling error refers to the difference between the
results that your findings show and the actual results.
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A NALYZE THE R ESEARCH
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P
P
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I
E
D
Descriptive Statistics
Statistical Analysis
Group Differences
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A DDRESS THE P ROBLEM
A
P
P Write Report of Findings
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I
E
D
Conclusive Findings
Recommendations
Write for the Intended
Reader
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A DDRESS THE P ROBLEM
A
P • The final step in the market research process is to
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L
write a research report that addresses the initial
I problem that was outlined at the beginning.
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D • The report should be written with the intended
reader in mind. Not everyone in the organization will
have the knowledge of the market research that the
author does.
• The report should provide conclusive findings that
came out of the research; specific
recommendations should also be provided.
Often.
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O BJECTIVE 3
What is a marketing information
system? How does it help to
establish, develop, and maintain
customer relationships?
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall 8-24
A Marketing Information
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E
F
I System is a series of steps that
N
E
D include collection, analysis, and
presentation of information for use in
making marketing
decisions.
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M ARKETING I NFORMATION S YSTEMS
E
X Internal
P Company Data
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A
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N
E Market Intelligence
D Systems
Decision-
Support Data
Marketing Research
Systems
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M ARKETING I NFORMATION S YSTEM
A
P
P
L • A marketing information system functions much
I like a management information system except in
E support of the marketing activity.
D
• A management information system is a set of
procedures and methods for the regular, planned
collection, analysis, and presentation of information
for use in making management decisions
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Internal company data include everything from order
D status, stock levels, and production schedules to
E financial performance, human resource status, direct-
F mail redemption details, and Web site click-through
I details.
N
E • These seemingly separate pieces of data can be
D
combined to influence a wide range of marketing
decisions, including product pricing, advertising
copywriting, distribution partner selection, and
packaging changes.
A marketing intelligence system is a system that
gathers, processes, assesses, and makes available
marketing information in a format that allows the
marketing activity to function more effectively.
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D A marketing decision-support system is the software
E used to connect marketing activities to the company’s
F databases. This system provides the critical data that
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allows a manager to analyze and model different
E scenarios or “what if” statements.
D
The marketing research system is the collection of all
the information conducted through marketing research;
the information is more specific than the market
intelligence system.
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M ARKETING I NFORMATION S YSTEM
A
P
P
L Customer
I
E
D Relationship
Management
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M ARKETING I NFORMATION S YSTEM
A • A customer relationship management system is
P similar to a marketing information system. A
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L
marketing information system, however, goes
I deeper, as it looks at more than just the customers.
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D • Customer Relationship Management (CRM) system.
includes the activities that are used to establish,
develop, and maintain customer relationships.
• Marketing information systems also take in
information from discussion forums, blogs, and other
social media so as to detect changes in customer
(and non-customer) perceptions about the company
and its products.
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VISUAL SUMMARY
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