Marketing Management

Dawn Iacobucci

2010 South-Western, a part of Cengage Learning

Marketing Research Tools

Chapter 13
Marketing Framework
Marketing Research

Every marketing decision should be

based on facts

Marketing research is about gathering

those facts

Marketing information should be

gathered constantly
Examples of Marketing Research
Marketing Research Process
Kinds of Data
Seven Popular Techniques

1. Cluster analysis for segmentation

2. Perceptual mapping for positioning
3. Focus groups for concept testing
4. Conjoint for testing attributes
5. Scanner data for pricing and coupon
experiments and brand switching
6. Surveys for customer satisfaction
7. Network methods to identify opinion
leaders in buzz marketing
Cluster Analysis

Clustering methods form groups within

groups of customers, similar with regard
to what the group is seeking and
different across groups in that each
group looks for slightly different attributes

Cluster analysis helps marketers identify

segments
Example: JavaHouse Survey

Ranks could have also been used

Example: JavaHouse Data
Example: JavaHouse Clusters
Discussion Question

Look at the charts below. Can you

describe cluster C1 and C4?
Example: JavaHouse Segments

Cluster analysis helps you identify

segments and their size
Perceptual Mapping

Positioning studies are used to

understand how customers view you in
the marketplace
Perceptual maps assist in positioning
Perceptual maps offer a sense of competitive
strengths and weaknesses

Two approaches
Attribute-based approach
Multidimensional scaling (MDS)
Attribute Based

Customers complete a survey

Attribute Based

Simple averages are taken over the

questions resulting in a pair of means for
each attribute

The pairs of means are used to plot the

attributes in a two-dimensional space
Example: Hotel Perceptual Map

How well the hotel

is doing on an
attribute is how far
to the right the
attribute is plotted
Attribute
importance is how
far to the top of
the chart the
attribute is plotted
Discussion Questions

What does the hotel do well?

What is the most important attribute?
On what attribute might the hotel want to
cut its spending?
Multidimensional Scaling

Customers complete a survey

Example: MDS for Hotels

Plot results

Similar hotels are

close together

Different hotels
are farther apart
Example: MDS for Hotels

Attributes are added

Ideal points can also be added
If a hotel could have just the right set of
features to make you perfectly happy, what
combination of features would those be?
Map can be used to identify opportunities
Discussion Questions

Which hotels are most similar?

What is hotel 3s strengths?
Which segment is underserved and what
combination of attributes would be
attractive to this segment?
Focus Groups

Exploratory technique where 8 to 10

consumers discuss products and
competitors products
Usually 3 to 4 groups are conducted

Not good for predicting marketplace

response
Best to follow up focus groups with a survey
Focus Groups

Focus group moderator

Starts with introductions and easy questions
Proceeds to key client questions
Keeps the discussion going
Brings out quieter members
Controls overbearing members, etc.

When the discussion dwindles the next

topic is introduced
Usually lasts 1.5 hours
Focus Groups

Sessions are usually taped and often

transcribed

Observers jot down impressions

Moderator is usually hired to interpret

results and draw conclusions
Other Qualitative Techniques

Although surveys deliver large sample

sizes and numbers, qualitative methods
offer rich, deep understandings of
customers motivations
Employing secret shoppers
Watching consumers make choices in store
Conducting ethnographies
Conjoint Analysis

Conjoint studies are run to understand

how consumers make trade-offs
What do customers really want if they cant
have all the features and a cheap price

Used in new product design, brand & line

extensions, pricing, branding, etc.
Example: Airline

Consumers are asked to rate or rank the

following eight combinations from most
to least preferred
Example: Airline

One flyers data

Example: Airline

Regression is run
on the data
Club, upgrade, and
fee are predictors
Consumer
judgment is the
criterion

Fees are the most

important feature,
club membership is
the least important
Discussion Question

What decision about the new airline

offering might you make given the
following?
Scanner Data

When stores scan purchases, they know

What you bought
How much of everything you bought
What brands you bought
How much you paid for everything
What you bought previously
If you scan your loyalty card

This data can be supplemented by

competing brands, sales, consumer
panel data, etc.
Scanner Data

Scanner data can be used to

Forecast demand
Watch responses to marketing mix changes
Watch responses to marketplace changes
Scanner-Experiment

Manipulate something (price, etc.)

Control everything else (assumption)
Change in sales attributable to
manipulation
High internal validity
Scanner-Naturalistic Observation

Do not manipulate but constantly monitor

More difficult to attribute changes in
sales to one action
High external validity
Scanner

Scanner data can be utilized to examine

brand switching
What brand did you buy this time?
Is it the same as the brand you bought last
time?
Scanner Data

Scanner data can be used for field

experiments
Price, packaging, ads, etc. can be tweaked
in one market or one store in one town
Subsequent sales are compared with those
in the control market or stores

Provides clean test of the ROMI of a

particular marketing mix lever
Surveys

Write questions
Pre-test them
Have sample of customers take survey
Example: Survey Questions

Satisfaction
How would you rate the service you just
received at our car dealership
How did your visit at our hotel seem to
you?
Repurchase
How likely is it you would fly with our airline
again for your next travels?
Word of Mouth
I am going to tell my friends to come to this
restaurant
Surveys

Surveys should be short

Enhances response rate
Responses should be confidential
Responses should not be used for
subsequent sales opportunities
Respondents can be consumers or B2B
customers
Surveys can be administered in person,
over the phone, via fax, on the Web
Surveys-Factor Analysis

Factor analysis is utilized to simplify

variables

Factor analysis examines strong and

weak correlations to identify underlying
factors common to the responses
Example: JavaHouse

Correlation Matrix
Example: JavaHouse

From 11 survey questions to 3 factors

Discussion Question

Can you develop an appropriate name

for Factor 1 below?
Network Methods

Social network methods can be used to

study patterns of buzz

Study patterns of interconnected actors

Ties vary. They can be communications,
money exchanges, friendships, etc.
Ties can vary in strength
Ties can be asymmetric

Identify those with influence

Discussion Question

Can you describe the difference in

relationships between Engineer 2 and IT
and Engineer 2 and Marketing 1?
Market Research Online

The advantages of online surveys are

speed and costs

However, internet penetration is not

100%
Samples may not be representative
Online Data Sources
Discussion Questions

Why would marketers want to conduct

marketing research?

Which type of research would you

conduct when trying to decide upon a
concept for a new product? What about
customer satisfaction?