Essential Consumer Insights: Marketing Research Explained

School

Arizona State University**We aren't endorsed by this school

Course

MKT 300

Subject

Marketing

Date

Dec 11, 2024

Pages

Uploaded by JusticeShark2948

Section 6 –Consumer Insight Study Guide•Marketing Research–Purposes, benefits, uses–Consumer Insight •Marketing Research Process –Reliability, validity, representativeness–Research design•Primary vs. Secondary Data•Exploratory vs. Descriptive vs. Explanatory–Examples of each

Section 6 –Consumer Insight Study Guide•Marketing Research Process –Measurement Scales–Open- vs. Closed-ended Questions•Dichotomous, Multiple Choice, Likert Scales, Semantic Differential Scales–Probability Samples•Stratified vs. Cluster–Non-Probability Samples•Convenience, Purposive, Snowball, Quota•Brand and Category Analysis (BDI and CDI)

Marketing Research•The systemic design, collection, analysis, and reporting of information to help marketers solve specific marketing problems and take advantage of marketing opportunities

purpose of marketing researchgathering and presenting _______ statements____________ dataprovide insight to develop ideas or hypotheses for potential quantitative researchdiagnosticdescriptiveexploratory

benefits of market researchdetermine strategy feasibilityoptimize marketing miximprove quality of decisionsrecognize market opportunitiesbetter understand changing customer attitudesretain customers better by understanding needsmeasurement of market potentialdetermination of market characteristicsmarket share analysiscompetitive product studiesnew product acceptancemedia researchassessment of advertising effectiveness

is perceived meanings of data collected from the study of consumer behavior.Customer InsightAttractRetain

Consumer Insight…about my brand? Competitor’s brand?What do customers think……buy my brand?Why do customers……consumer expectations?The opportunities?The threats?What are……make brand choices?How do customers…

market research processDefine the ProblemDesign the ResearchConduct the ResearchAnalyze the dataAddress the problem12345

step 1: problem definitionwhat are we trying to find out?is it a problemor a symptom?what is the research question?“If I had but one hour to save the world, I would spend 55 minutes defining the problem.”–Albert Einstein

step 1: problem definitionMarketing Research ___________Marketing Research ___________Management Decision ProblemDetermining what information is needed and how that information can be obtained efficiently and effectively.The specific information needed to solve a marketing research problem;the objective should provide insightful decision-making information.A broad-based problem that requires marketing research in order for managers to take proper actions

step 2: designing the research projectThe research design is an overall plan for obtaining information needed to test a ____________________Which research questions must be answered?How and will data be gathered?How will the data be analyzed?

step 2: designing the research project__________the research technique produces almost identical results in repeated trials_________the research method measures what it is supposed to measureRepresentativethe sample is similar to the population we’re interested inWe must design in a such a way that the data we collect will be…

step 2: designing the research projectResearch QuestionPrimary DataSecondary Data•Information collected ________ specific to your purpose•Surveys, interviews, experiments•Information _________collected •Census data, internet sourcesTypes of Research Data

Research Design CategoriesResearch QuestionExploratoryDescriptiveDiagnostic/ ExplanatorySheds light on problem -suggest solutions or new ideas (focus groups)Determines magnitudeTests hypotheses about cause-and-effect relationships step 2: designing the research project

step 2: designing the research projectResearch QuestionObservationEthnographyInterviewsSurveysExperiments•Field/natural •LabResearch Design Categories____________________________ExploratoryDescriptiveDiagnostic/ Explanatory

The study of human behavior in its ________________; it can involve immersion into the physical setting to interact with the study’s participantsEthnographic Researchstep 2: designing the research project

Measurement ScalesExampleYes-No; Male-FemaleIndicate level of education: High School, Some college, Bachelors, Graduate degreeIntervalTemperatureIs 80otwice as hot as 40o?Measurement of distance/lengthstep 2: designing the research project

step 2: designing the research project•Open-ended questions•unstructured, word association, sentence completion•Closed-ended questions•_______________ (e.g. true/false; yes/no)•Multiple choice•Scaled response questions•Likert scale–Importance and rating scales•Semantic differential scale

•Likert scale:What are your opinions of the following musical groups:Extremely ExtremelyNegativeNeutral PositiveTaylor Swift1 2 3 4 5 6 7 Billie Eilish1 2 3 4 5 6 7 Drake1 2 3 4 5 6 7Post Malone1 2 3 4 5 6 7All autotuned music1 2 3 4 5 6 7step 2: designing the research project

Sample PlanProbability Samples•Random–every member in the population has an equal chance of selection•Stratified–divide population into mutually groups and random samples are drawn from each group •Cluster–divide population into mutually groups and random clusters are drawn to samplestep 3: conduct the research

Sample PlanNonprobabilitySamples•Convenience–Select the easiest population members to sample•Purposive–Researcher judges if subject fits their _________•Snowball –___________ help researcher find additional subjects who have characteristics of interest•Quota–Researcher finds a prescribed number of subjects across several categoriesstep 3: conduct the research

step 4: data analysis and interpretationWhat does the data tell us?Descriptive StatisticsGroupDifferencesHypothesisTesting

step 5: address the problemrecommendationsexecutive summarytechnical report limitationsnext stepsTake an objective look at survey findings

Marketing Research ExamplesGoogle analytics:page performance + user behavior analysisGoogle tag manager: user engagementGoogle optimize: A/B testing and analysisGoogle data studio: dashboard creation for reporting

Marketing Research Examples1. Conversions: How effective were we at moving students through the funnel (from lead to application)2. Traffic: Did we see an increase in traffic due to the changes we made?3. Page performance: Did we decrease our overall bounce rate and how do we determine if more time spent on a page results in more leads?4. Engagement: Did the user spend time engaging with this new design or piece of content?5. Surveys, polls, recordings: What group of pages did a user visit before making a decision to move forward? What personas visit our website?6. SEO: Did we improve our overall organic traffic to the website or did we improve our overall keyword rankings?

Brand and Category AnalysisPercentage of ________ consumed by the segmentPercentage the segment is of the total marketBDI =X 100Brand Development Index

BDI and CDI Segmentation Analysis•If you are in a group of five students responsible for a group project, you are 20% of the group; your pre-set expectations are that all five members contribute exactly equally, or 20% each–For those group members that contribute morethan 20%, their Index Number will be greater than 100–For those group members that contribute lessthan 20%, their Index Number will be less than 100–For those group members that contribute exactly20%, their Index Number will be 100 (they’ve performed exactly as expected)

BDI and CDI Segmentation Analysis•Ask yourself, what is the expectation of this segment?•Performing exactly as expected–A segment of 20% is consuming 20%–Index number = 100 = *exactly* as expected•Performing greater than expected–A segment of 20% is consuming 60%–Index number = 300 (300 = three times as much as expected)•Performing less than expected–A segment of 20% is consuming 10%–Index number = 50 (50 = half as much as expected)

Segmentation Analysis•Let's say that there are 20 finance majors in my class of 100 students. I've found that my class consumed 200 meals at Chipotle in a month and that 80 of those Chipotle meals were consumed by finance majors. What's the BDI for Chipotle and finance majors?•Numerator: % of brand that the segment purchases = 80/200 = 40% •Denominator: % of population that the segment represents = 20/100 = 20%•BDI = (40%/20%) x 100 = 200

Brand and Category AnalysisPercentage of ________________ consumed by the segmentPercentage the segment is of the total marketCDI =X 100Category Development Index

Sample Questions•There are 1,000 lawyers in the Phoenix area, of these 300 are located in Tempe. The 1,000 lawyers purchased 100 sport utility vehicles last year. 15 of the 100 SUVs were purchased by Tempe lawyers. What's the CDI (same thing as BDI, just for a product category instead of a brand) for SUVs purchased by lawyers in Tempe?•Numerator: % of product category that the segment purchases = 15/100 = 15% •Denominator: % of population that the segment represents = 300/1,000 = 30%•CDI = (15%/30%) x 100 = 50

Brand and Category AnalysisThe market usually represents good sales potential for both the product and the brandThe category isn’t selling well but the brand is; may be a good market in which to advertise but should be monitored for sales declineHigh CDILow CDIBoth the product category and the brand are doing poorly; not likely to be a good place to advertiseHigh BDILow BDI