market intelligence lecture

BM2502 Market Intelligence

Nanyang Business School Prof. SHI Hongyan

Week 1

Brief Introduc@on

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PHD in Business Administra@on, University of Illinois at Urbana-‐Champaign

May 2011

Brief Introduc@on

•  My contact informa@on: – Office: S3-‐B1A-‐32 – Email: [email protected] – Phone: 6790-‐4718

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My Approachability

•  Consulta@on Hours: – Mondays/Tuesdays 2:30pm-‐5:30pm

•  In-‐class project @me •  AYer-‐class •  Extra @me before final exam •  S@ll extra @me needed: appointment via email

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Agenda

•  Syllabus

•  Group Forma@on

•  Introduc@on to Marke@ng Research (Chapter 1)

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Course Descrip@on

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Marke@ng Research Projects

conduc@ng

evalua@ng

WHY? WHO? WHEN? HOW? WHAT?

Course Objec@ves

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Marke@ng Research Projects

HOW? WHAT? •  Iden@fy problems

•  Research ques@ons •  Research design •  Collect data •  Analyze data •  Offer informa@on

Basic Marke+ng Research: Interna+onal Edi+on, 4/e

Author : Malhotra, Naresh

Publisher: Pearson

ISBN : 9780132570183

Required Course Material

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Course Assessment

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Components Marks Individual/Group

In-Press Articles 5 Individual

In-Class Quizzes 5 Individual

Participation 10 Individual

Group Project Part I 15 Group

Group Project Part II 15 Group

MCQ Test 20 Individual

Final Exam 30 Individual

Total 100

In-‐Press Ar@cles (5 marks)

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•  2 out of 3 opportuni@es

•  Ar@cle published in popular/business press or online

•  Related to contents covered in previous weeks

•  One page, double-‐spaced

•  Summary of the ar@cle plus demonstra@on on relevance

•  Hard-‐copy submission at the beginning of the class

In-‐Class Quizzes (5 marks)

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•  Short quiz on the material from previous class

•  Good prac@ce for the exams

Class Par@cipa@on (10 marks)

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Your Engagement

Key insights

Asking ques@ons

Disagreeing with…

Following up…

Group projects

Sharing your in-‐press ar@cle

Project Part I (15 marks)

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Project Part II (15 marks)

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Project Parts I & II

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More detailed instruc@ons will be provided along the semester.

MCQ Test (20) and Final Exam (30)

•  One MCQ Test: –  Closed-‐book – Week 7 Wednesday –  Contents from textbook, lectures, and class discussions –  Chapters 1 to 8 (Tenta@ve)

•  Final Exam –  Closed-‐book –  Exam week –  Chapters 9 onwards (Tenta@ve) –  Details about format will be given later.

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Course Roadmap

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Expecta@ons and Policies

1)  Communica@on: –  Important announcements in class/via email –  Check emails regularly –  Access NTULearn regularly

2)  Alendance: 3)  Grade Queries: 4)  Technology:

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5) Academic Integrity Not knowing what is involved in maintaining academic integrity does not

excuse academic dishonesty. Plagiarism will be heavily penalized; if proven guilty, students will be

assigned a “zero” mark for the piece of assessment in ques@on and/or a fail grade for the subject.

h8p://academicintegrity.ntu.edu.sg/

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6) Group Work Grades adjusted based on peer evalua@on No free-‐ride Report problem

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General Teaching Method

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When work can be done in class, why should we waste extra @me aYer class?

*  Specific examples -‐> abstract concepts -‐> specific applica@ons *  Blocks of slides, within each block, different perspec@ves

*  What will I do? *  Class @me alloca@on *  Approachable *  AYer-‐class summary

*  What will you do? *  Class par@cipa@on (your engagement) *  Group projects

Efficient and Effec@ve

Group Forma@on

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Project I: 4-‐5 members in each team Project II: 2-‐3 members in each team

What is Marke@ng?

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What is Marke@ng Intelligence?

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Business Intelligence

Financial Intelligence Marke@ng Intelligence

Marke@ng Research Customer Rela@onship Marke@ng/Database

Marke@ng

(… acquire new customers, and sa@sfy and retain exis@ng customers in a profitable manner)

Need for Marke@ng Intelligence

•  Apple Inc.

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Chapter 1: Introduc@on to Marke@ng Research

How Men and Women Fly Differently

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How Men and Women Fly Differently

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hlp://live.wsj.com/video/how-‐men-‐and-‐women-‐fly-‐differently/2CE3449C-‐161F-‐4440-‐91DB-‐DE567DE3686A.html

window seat aisle

shade pulled down/up

Checks or carries on a bag

She curls up in a ball to avoid contact; he sits with his elbows and legs splayed out

Why would one care? Who would care?

He Carries On, She Likes to Check by: Sco8 McCartney Nov 29, 2012 Wall Street Journal

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QUESTIONS: 1. (Introductory) From an airline perspec@ve, list and describe at least three differences between men and women. 2. (Advanced) Besides the marke@ng research methods that are men@oned in the ar@cle, describe an addi@onal marke@ng research study that you would recommend for iden@fying the dis@nc@ve preferences of men vs. women, either in the airline or housework product categories. 3. (Advanced) Iden@fy an industry or product category other than air travel that could benefit from similar research insights about differences between men and women. Explain.

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Application to Contemporary Issues (Fig 1.10) International Social Media Ethics (Fig 1.11)

ïTable 1.1

Defini+on of Marke+ng Research ( Fig 1.2) A Classifica+on of Marke+ng Research (Fig1.3)

Marke+ng Research Process (Fig 1.4) The Role of Marke+ng Research in Decision Making (Fig 1.5)

The Decision to Conduct Marke+ng Research (Fig 1.6) Marke+ng Research Industry (Fig. 1.7)

Selec+ng a Research Supplier Careers in Marke+ng Research

The Role of Marke+ng Research in MIS and DSS (Fig 1.8 & Fig 1.9)

Marke+ng Research and Compe++ve Intelligence

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Opening example

•  Details of the example will be used throughout the learning of different concepts in this chapter

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How Reebok Fits Shoes

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Analysis of Secondary data

Increase Of Health club memberships

Focus groups Step aerobics is a new popular fitness ac@vity

Survey Health club members spending less @me in the clubs

How Reebok Fits Shoes

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Who did the marke@ng research?

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In-‐house marke@ng research specialists External suppliers

What is Marke@ng Research? (LO1)

Marke@ng research is the systema@c and objec@ve –  iden@fica@on, (REEBOK: iden@fy ways to increase market share)

–  collec@on, (REEBOK: secondary data, focus groups, survey) –  analysis, –  dissemina@on, and –  use of informa@on (REEBOK: redesign its product line)

for the purpose of improving decision making related to the –  iden@fica@on and –  solu@on of problems and opportuni@es in marke@ng.

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Classifica@on of Marke@ng Research (LO2)

Problem Identification Research •  Research undertaken to help identify problems which are

not necessarily apparent on the surface and yet exist or are likely to arise in the future. Examples: market potential, market share, image, market characteristics, sales analysis, forecasting, and trends research.

Problem Solving Research •  Research undertaken to help solve specific marketing

problems. Examples: segmentation, product, pricing, promotion, and distribution research.

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Figure 1.3 A Classifica@on of Marke@ng Research

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Marketing Research

Problem- Identification

Research

•  Market Potential Research •  Market Share Research •  Image Research •  Market Characteristics

Research •  Forecasting Research •  Business Trends Research

Problem- Solving

Research

• Segmenta@on Research

• Product Research • Pricing Research

• Promo@on Research

• Distribu@on Research

Problem-‐Solving Research

SEGMENTATION RESEARCH

•  Determine the basis of segmentation

•  Establish market potential and responsiveness for various segments

•  Select target markets •  Create lifestyle profiles:

demography, media, and product image characteristics

PRODUCT RESEARCH

•  Test concept •  Determine optimal product

design •  Package tests •  Product modification •  Brand positioning and

repositioning •  Test marketing •  Control score tests

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Problem-‐Solving Research (Cont.)

PRICING RESEARCH

•  Pricing policies •  Importance of price in brand

selection •  Product line pricing •  Price elasticity of demand •  Initiating and responding to

price change

PROMOTIONAL RESEARCH •  Optimal promotional budget •  Sales promotion relationship •  Optimal promotional mix •  Copy decisions •  Media decisions •  Creative advertising testing •  Evaluation of advertising

effectiveness •  Claim substantiation

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0.00% APR

Problem-‐Solving Research (Cont.)

DISTRIBUTION RESEARCH Determines… •  Types of distribution •  Attitudes of channel members •  Intensity of wholesale & resale coverage •  Channel margins •  Location of retail and wholesale outlets

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The Marke@ng Research Process (LO3)

Step 6: Preparing and Presen+ng the Report

Step 5: Preparing and Analyzing Data

Step 4: Doing Field Work or Collec+ng Data

Step 3: Formula+ng a Research Design

Step 2: Developing an Approach to the Problem

Step 1: Defining the Problem

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The Marke@ng Research Process (Figure 1.4 )

Step 6: Preparing and Presen+ng the Report (Chapter 19)

Step 5: Preparing and Analyzing Data (Chapters 15 to 18)

Step 4: Doing Field Work or Collec+ng Data (Chapter 14)

Step 3: Formula+ng a Research Design (Chapters 3 to 13)

Step 2: Developing an Approach to the Problem (Chapter 2)

Step 1: Defining the Problem (Chapter 2)

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Defini@on and Process

•  Iden@fica@on of informa@on needed

•  Collec@on of data

•  Analysis of data •  Dissemina@on of results •  Use of informa@on

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•  Step 1: define the problem

•  Step 2: develop an approach to the problem

•  Step 3: formulate a research design

•  Step 4: fieldwork or collect data

•  Step 5: prepare and analyze data

•  Step 6: Prepare and present the report

The Role of Marke@ng Research in Marke@ng Decision Making

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Uncontrollable Environmental

Factors • Economy • Technology • Competition • Laws and

Regulation • Social and

Cultural Factors • Political Factors

Assessing Information

Needs

Customer Groups •  Consumers •  Employees •  Channel Members •  Suppliers

Marketing Research

Marke+ng Managers •  Market Segmenta@on • Marke@ng Programs •  Target Market Selec@on • Performance and Control

Controllable Marketing Variables

•  Product •  Pricing •  Promotion •  Distribution

Marketing

Decision Making

Providing Information

hlp://www.youtube.com/watch?v=WpldYJ3sSIo

Timothy Prestero: Design for people, not awards

Figure 1.6 The Decision to Conduct Marke@ng Research

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Does the management have a positive attitude towards

research?

Is additional information needed to make the decision?

Are enough resources available to collect additional information and

implement the findings?

Is the decision of strategic or tactical importance?

Does the value of additional information exceed the cost of research?

Conduct Marketing Research

Do Not Conduct

Marketing Research

Yes

Yes

Yes

Yes

Yes

No

No

No

No

No

Marke@ng Research Suppliers & Services (LO4)

� Internal suppliers � External suppliers

– Full-‐service suppliers •  Syndicated services •  Standardized services •  Customized services •  Internet services

– Limited-‐service suppliers •  Field services •  Focus groups and Qualita@ve services •  Technical and Analy@cal services •  Other services 49

Research Suppliers

Internal

Limited Service Full Service

External

Other Services

Analytical Services Customized

Services

Syndicated Services

Internet/ Social Media

Services

Field Services

Qualitative Services

Figure 1.7 Marke@ng Research Industry: Suppliers and Services

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Rank 2009 2008 Organization Headquarters Parent

country Web site

(www.)

No. of Countries

with Subsidiaries/

Branch Offices

Global Revenue

(USD millions)

Percent of global

revenue from

outside home

country (%)

1 1 The Nielsen Co. New York U.S. Nielsen.com 100 4,628.0 50.3

2 2 Kantar London & Fairfield, Conn. U.K. Kantar.com 80 2,823.2 75.0

3 3 IMS Health Inc. Norwalk, Conn. U.S. Imshealth.com 75 2,189.7 63.4

4 4 GfK SE Nuremberg Germany Gfk.com 59 1,622.8 74.1

5 5 Ipsos Group SA Paris France Ipsos.com 64 1,315.0 89.8

6 6 Synovate London U.K. Synovate.com 62 816.4 85.0

7 7 SymphonyIRI Chicago U.S. Symphonyiri.com 8 706.3 37.5

8 8 Westat Inc, Rockville, Md. U.S. Westat.com 1 502.4 -

9 9 Arbitron Inc. Columbia, Md. U.S. Arbitron.com 2 385.0 1.5

10 10 INTAGE Inc. Tokyo Japan Intage.co.jp 3 368.6 1.7

Table 1.1 TOP 10 GLOBAL RESEARCH ORGANIZATIONS

Chapter 1 -‐ 51

Criteria for Selec@ng a Research Supplier

•  What is the reputation of the supplier? •  Do they complete projects on schedule? •  Are they known for maintaining ethical standards? •  Are they flexible? •  Are their research projects of high quality? •  What kind and how much experience does the supplier have? Has

the firm had experience with projects similar to this one? •  Do the supplier's personnel have both technical and non-technical

expertise? •  Can they communicate well with the client? •  Competitive bids should be obtained and compared on the basis of

quality as well as price. 52

Careers in Marke@ng research

•  www.marketresearchcareers.com •  Job details/responsibili@es •  Job-‐oriented

•  What should you learn from this course? •  Importance of analy@cal skills

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Careers in Marke@ng Research

•  Career opportunities are available with marketing research firms (e.g., Nielsen, Burke, Inc., M/A/R/C)

•  Careers in business and non-business firms and agencies with in-house marketing research departments (e.g., Procter & Gamble, Coca-Cola)

•  Advertising agencies (e.g., BBDO International, Ogilvy & Mather, J. Walter Thompson, Young & Rubicam)

•  Positions: vice president of marketing research, research director, assistant director of research, project manager, field work director, statistician/data processing specialist, senior analyst, analyst, junior analyst, and operational supervisor

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Selected Marke@ng Research Career Descrip@ons

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• Part of company’s top management team • Directs company’s en@re market research opera@on • Sets the goals & objec@ves of the marke@ng research department

Vice President of Marke+ng Research

• Also part of senior management • Heads the development and execu@on of all research projects

Research Director

• Administra@ve assistant to director • Supervises research staff members

Assistant Director of Research

• Responsible for design, implementa@on, & research projects

Senior Project Manager

Selected Marke@ng Research Career Descrip@ons (Cont.)

• Handles details in execu@on of project • Designs & pretests ques@onnaires • Conducts preliminary analysis of data

Analyst

• Secondary data analysis • Edits and codes ques@onnaires • Conducts preliminary analysis of data

Junior Analyst

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• Serves as expert on theory and applica@on on sta@s@cal techniques

• Oversees experimental design, data processing, and analysis

Sta+s+cian/Data Processing

• Handles selec@on, training, supervision, and evalua@on of interviewers and field workers

Fieldwork Director

•  Par@cipates in the development of projects •  Carries out execu@on of assigned projects •  Coordinates the efforts of analyst, junior analyst, & other personnel in the development of research design and data collec@on

•  Prepares final report

Senior Analyst

Prepara@on for a Career in Marke@ng Research

� Take all the marke@ng courses you can. � Take courses in sta@s@cs and quan@ta@ve methods. � Acquire Internet and computer skills. Knowledge of

programming languages is an added asset. � Take courses in psychology and consumer behavior. � Acquire effec@ve wrilen and verbal communica@on

skills.

� Think crea@vely. Crea@vity and common sense command a premium in marke@ng research.

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Interna@onal Marke@ng Research

•  International marketing research should be sensitive to differences in customs, communication, and culture.

•  The environment in the countries or international markets that are being researched influences the way the six steps of the marketing research process should be performed.

•  These environmental factors include marketing, government, legal, economic, structural, informational, technological, and sociocultural factors.

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Marke@ng research and Social Media

•  Starbucks: the star of social media – My Starbucks Idea (MSI) (mystarbucksidea.force.com)

– Get ideas and feedback (request for free wireless) – On average, one in three sugges@ons are implemented

– Facebook page, Twiler, YouTube, Flickr

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Marke@ng Research & Social Media

•  All social media share certain common characteristics that make them very relevant as a domain for conducting marketing research.

•  Social communities open up new avenues for understanding, explaining, influencing and predicting the behaviors of consumers in the marketplace.

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Marke@ng Research & Social Media (Cont.)

Limita+ons of Social Media � While the standard for objec@vity is high for journalists,

expecta@ons about objec+vity among bloggers and other social media users are lower.

�  Social media users may not be representa+ve of the target popula@on in many marke@ng research applica@ons.

�  Social media as a source of samples suffers from at least two biases: from self-‐selec+on and from advocacy.

�  Yet, as long as these limita@ons are understood, insights from social media analysis can uncover useful informa+on that can inform marke@ng decisions.

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Marke@ng Research & Social Media (Cont.)

Social Media Summary We advocate the use of social media as an addi+onal domain in which to conduct marke@ng research to supplement and complement, but not to replace, the tradi@onal ways in which research is conducted.

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Ethics in Marke@ng Research

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Client

Public

Respondents

Marke+ng Researcher

Figure 1.11 Stakeholders in Marke@ng Research: An Ethical Perspec@ve

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Overview of Ethical Issues in Marke@ng Research

I. Problem defini@on

–  Using surveys as a guise for selling or fundraising –  Personal agendas of the researcher or client –  Conduc@ng unnecessary research

II. Developing an approach

–  Using findings and models developed for specific clients or projects for other projects

–  Solici@ng proposals to gain research exper@se without pay –  Inaccurate repor@ng

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Overview of Ethical Issues in Marke@ng Research (Cont.)

III. Research Design

–  Formula@ng a research design more suited to the researcher's rather than the client's needs

–  Using secondary data that are not applicable or have been gathered through ques@onable means

–  Disguising the purpose of the research –  Solici@ng unfair concessions from the researcher –  Not maintaining anonymity of respondents –  Disrespec@ng privacy of respondents –  Misleading respondents –  Disguising observa@on of respondents

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III. Research Design (Cont.)

–  Embarrassing or puxng stress on respondents –  Using measurement scales of ques@onable reliability & validity –  Designing overly long ques@onnaires, overly sensi@ve ques@ons, piggybacking

–  Using inappropriate sampling procedures and sample size

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IV. Field Work

–  Increasing discomfort level of respondents –  Following unacceptable field work procedures

V. Data Prepara@on and Analysis

–  Iden@fying and discarding unsa@sfactory respondents –  Using sta@s@cal techniques when the underlying assump@ons are violated

–  Interpre@ng the results and making incorrect conclusions and recommenda@ons

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VI. Report Prepara@on and Presenta@on

–  Incomplete repor@ng –  Biased repor@ng –  Inaccurate repor@ng

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Main Managerial Take-‐aways

•  Classifica@on of marke@ng research:

•  Marke@ng research with Social Media:

•  Marketing research alone does not guarantee success, the intelligent use of marketing research is the key to business achievement.

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Next class

•  First opportunity to submit in-‐press ar@cle

•  Class @me

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market intelligence lecture

Documents