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TURNING MARKETING

INFORMATION INTO ACTION

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Marketing research questions asked in test screenings Marketing research questions asked in test screenings of movies and how they are usedof movies and how they are used

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• What Marketing Research Is and Does• A Means of Reducing Risk and Uncertainty

• Why Good Marketing Research is Difficult

THE ROLE OF MARKETING RESEARCH

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• Steps in Making Effective Decisions 1. Define the problem 2. Develop the research plan 3. Collect relevant information 4. Develop findings 5. Take marketing actions

THE ROLE OF MARKETING RESEARCH

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Marketing research processMarketing research process

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• Ask the “right” question - management

• Set the Research Objectives

• Identify Possible Marketing Actions Measures of success

STEP 1: DEFINE THE PROBLEM

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• Specify Constraints

• Identify Data needed for Marketing Actions

• Determine How to Collect Data• Concepts

• Methods Probability sampling Nonprobability sampling Statistical inference

STEP 2: DEVELOP THE RESEARCH PLAN

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STEP 3: Types of marketing informationTypes of marketing information

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• Secondary Data• Internal Secondary Data

• External Secondary Data

• Advantages and Disadvantages of Secondary Data

STEP 3: COLLECT RELEVANT INFORMATION

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• Primary Data• Observational Data

STEP 3: COLLECT RELEVANT INFORMATION

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Nielsen People MeterObservational data

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Nielsen ratings of the top 10 national television Nielsen ratings of the top 10 national television programs from Jan 28, 2002 to Feb 3, 2002programs from Jan 28, 2002 to Feb 3, 2002

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Nielsen//NetRatings of the top 10 Internet websites from Nielsen//NetRatings of the top 10 Internet websites from Jan 21, 2002 to Jan 27, 2002Jan 21, 2002 to Jan 27, 2002

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• Primary Data • Questionnaire Data

STEP 3: COLLECT RELEVANT INFORMATION

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Typical problems in wording questionsTypical problems in wording questions

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• Primary Data • Panels and Experiments

• Advantages and Disadvantages of Primary Data

STEP 3: COLLECT RELEVANT INFORMATION

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• Using Information Technology to Trigger Marketing Actions• The Marketing Manager’s View of

Sales “Drivers”

STEP 3: COLLECT RELEVANT INFORMATION

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Product and brand drivers: factors that influence salesProduct and brand drivers: factors that influence sales

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• Using Information Technology to Trigger Marketing Actions• Key Elements of an Information System

• The Challenge in Mining Marketing Data

• Data Mining: A New Approach to Searching the Data Ocean

STEP 3: COLLECT RELEVANT INFORMATION

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How marketing researchers and managers use information How marketing researchers and managers use information technology to turn information into actiontechnology to turn information into action

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• Analyze the Data

• Present the Findings

STEP 4: DEVELOP FINDINGS

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• Identify the Action Recommendations

• Implement the Action Recommendations

• Evaluate the Results

STEP 5: TAKE MARKETING ACTIONS

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• Basic Forecasting Terms• Market or Industry Potential

• Sales or Company Forecast

• Two Basic Approaches to Forecasting• Top-Down Forecast

• Buildup Forecast

MARKET AND SALES FORECASTING

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Buildup approach to a two-quarter sales forecast for Buildup approach to a two-quarter sales forecast for Apple Computer productsApple Computer products

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• Specific Sales Forecasting Techniques Surveys of Knowledgeable Groups

Survey of buyers’ intentions forecast Salesforce survey forecast Jury of executive opinion forecast Survey of experts forecast

MARKET AND SALES FORECASTING

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Linear trend extrapolation of sales revenues of Xerox Linear trend extrapolation of sales revenues of Xerox made at the start of 1999made at the start of 1999