marketing research & strategic applications

Marketing Research &Strategic Applications

March 2, 2011

Prepared by Meczka Marketing/Research Consulting, Inc.

Marketing Research & Strategic ApplicationsMarch 2, 20112

Marketing Research

A process of obtaining informationconcerning customer’s attitudes or behavior

toward concepts, products, or services

to support marketing.

What better way to learn, than to ask and listen?

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Business Does Not Know Its Customers. That’s Why We Better Listen!

Never have so many, spent so much time and money to understand so little about their core customer.

“Half of my marketing dollars are wasted. I just don’t know which half.”

Compound this with half of the advertising dollars wasted, maybe ¼ efficiency?

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Efficiency of Advertising/Marketing Spend

Efficie ncy?25%

M arke ting D ollars Was te d

25%

Adve rtis ing D ollars Was te d

50%

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K I S S

Marketing Research is not “survey says”. Keep It Simple and Straightforward. Cost effective research mandates a direct no frills

questioning sequence. Define exactly what needs to be learned to aid in

the decision process or meet the objective.

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Marketing Research Procedures/Strategy

Define Decisions to be made Information required Analysis required Decision criteria Appropriate methodology Appropriate sample Implement Analyze Report Review

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Two Types of Marketing Research

1. PRIMARY RESEARCH – Do It Yourself

2. SECONDARY RESEARCH – Somebody already did it

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Two Types of Marketing Research

1. PRIMARY RESEARCH – Do It Yourself

• Conducted for the proprietary, sole, exclusive use of an organization

• Developed to meet the specific needs of the entity for which the research is conducted

• The information obtained generally becomes the sole, exclusive property of the client sponsoring the primary research

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Two Types of Marketing Research

2. SECONDARY RESEARCH – Somebody already did it

Information that is available to the general public for a very nominal cost, if any.

Examples – Trades association data, census data, share of market data, internet, government

Once in the public domain, primary research becomes secondary research.

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Cost Effective Research Requires Standardization

Construct the questionnaire and ask questions in a consistent, accepted, easily understood format.

Virtually all questions are in the public domain. Virtually all scales are in the public domain. Virtually all analytical methods are in the public

domain. Utilize what is known, proven and accepted as the

standard.

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Cost Effective Research Uses Available Data and Resources

Awareness of available secondary public domain data will aid in controlling research cost.

Awareness of existing for-purchase data will also aid in controlling research cost.

Only conduct primary research after exhausting all existing available data.

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Two Types of Primary Research

1. QUALITATIVE

2. QUANTITATIVE

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I. QUALITATIVEListen Talk Learn

No empirical measurement Smaller sample size Can not be projected Discussion guide Feelings/subjective

Qualitative Research

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Qualitative ResearchListen, Talk, and Learn

Focus groupso (General Market)

Motivation researcho (What are the “hot” buttons?)

Depth interviews, 1-on-1’s, Dyads, Triadso (What is the primary motivator?)

Blue Ribbon Panelso (Best Customers)

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Qualitative Research

Four common elements of qualitative research

1. Multiple respondents performing together

2. Interaction of participants

3. Presence of a moderator

4. Discussion outline

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Uses For Qualitative Research

1. To generate hypotheses that can be further tested quantitatively.

2. To generate information helpful in structuring consumer questionnaires.

3. To provide overall background information on a product category.

4. To get impressions on new product concepts for which there is little information available.

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Uses For Qualitative Research

5. To stimulate new ideas about older products.

6. To generate ideas for new creative concepts.

7. To interpret previously obtained quantitative results.

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II. QUANTITATIVEAsk, Listen, Count, Learn Empirical evaluations of attitudes, behavior,

performance, activities Developed from a sample that is representative

of a larger universe If sampled correctly, quantitative results can be

projected to the respective universe from which the sample was drawn

Structured questionnaire Number oriented

Quantitative Research

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Quantitative ResearchAsk, Listen, Count, and Learn

• Behavioral studiesWhy do they come to my store?

• Attitudinal studiesWhat do they like about my store?

• Advertising copy researchDoes my advertising communicate what is in my store?

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Quantitative ResearchAsk, Listen, Count, and Learn

• Product testingDoes the new concept/idea/product meet the needs of the intended user?

• Show TestingWhat types of items do they seek/prefer?

• Life-style researchWill they change trips to mid week from weekend?

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Examples of Quantitative Research

Mail SurveysTelephone Surveys

Self Administered SurveysPersonal Interviews

E-Mail InterviewsInternet Interviews

Personal Intercept with Telephone CallbackComment Cards

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Comparison of Data Collection Methods

Personal Telephone Mail Internet

Collection Cost High MediumLow Very Low

Time Required MediumLow High Very Low

Budget Required Small MediumLarge Very Low

Data Quantity Per Respondent High MediumLow Low to Med

Reaches Wide Sample No Maybe Yes Yes

Reaches Special Location Yes Maybe No Yes

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Relative Cost Index

1

8

16

24

0

5

10

15

20

25

Internet Mail Telephone Personal

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Comparison of Data Collection Methods

Personal Telephone Mail Internet

Interaction/Respondents Yes Yes No Possible

Interviewer Bias High MediumNone None

Non-response Bias Low Low High High

Sample Size Bias Low MediumHigh High

Visual Stimuli Yes No Maybe Maybe

Interviewer Training Yes Yes No Maybe

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Pareto Principle Applies

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% of Tracked Play Accounted For by % of Members

1%

13%

1%

24%

3%

38%

4%

46%

7%

59%

14%

76%86%

24%

0%

20%

40%

60%

80%

100%

104 + 76 - 103 50 - 75 40 - 49 26 - 39 12 - 25 Le ss than12

% of Customers % Tracked

Visits Per Year

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% of Tracked Play Accounted For by % of Members

14%

76%

86%

24%

0%

20%

40%

60%

80%

100%

12 or M ore Le ss than 12

% of Customers % Tracked

Visits Per Year

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Beware of Biases That May Void All Research

Method selection Question design Non response Interviewer Order Sampling Analytical Reporting

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A Question on One TopicStructured Four Different Ways

OPEN-ENDEDWho would you like to see elected Governor in this year's election?

CLOSE-ENDED RATINGHow well do you think each of these candidates would perform if elected Governor? 1. Meczka Poor Fair Good Excellent2. Gilbert Poor Fair Good Excellent3. Smith Poor Fair Good Excellent4. Jones Poor Fair Good Excellent

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CLOSE-ENDED WITH UNORDERED RESPONSE CHOICES Which of these four candidates would you most like to see elected Governor? (CIRCLE YOUR ANSWER.)

MECZKAGILBERTSMITHJONES

PARTIALLY CLOSE-ENDED

Who would you like to see elected Governor? (CIRCLE NUMBER OF YOUR ANSWER.) 1 MECZKA2 GILBERT3 SMITH 4 JONES5 OTHER (PLEASE SPECIFY) _________________

A Question on One TopicStructured Four Different Ways

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Attitude Scales

Thurstone• Respondents mark all statements with which they agree.

Likert-type• 1 2 3 4 5

Strongly StronglyDisagree Disagree Undecided Agree Agree

Guttman (Forced choice)• I would rather eat pizza than sushi. Yes ( ) No ( )

Semantic Differential• Uses a pair of extreme adjectives.

For me __________Not for me For families______ Not for families

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Basic Report /The Executive Overview

What We Were Trying To Learn

What We Did

What We found

What We Recommend

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Too Little Knowledge is Dangerous

Research done incorrectly with too small samples or bias responses will lead to erroneous

conclusions.

It is better not to do anything and guess than to initiate and implement an incorrect research plan.