read the chapter and the case at the end of the chapter, and then answer the questions. (you have to include other resources along with the book such as articles, books, etc.)the chapter is attached:15 MARKETING
MARKETING
RESEARCH TOOLS
STP
4Ps
Product
5Cs
Customer
Company
Context
Collaborators
Competitors
Segmentation
Targeting
Positioning
Price
Place
Promotion
Managerial Checklist:
• What kinds of marketing research do we need?
• Cluster Analysis for Segmentation
• Perceptual Mapping for Positioning
• Focus Groups for Concept Testing (in New Products or Advertising)
• Conjoint for Testing Attributes (in Pricing, New Products, or Branding)
• Scanner Data for Pricing and Coupon Experiments and Brand Switching
• Surveys for Assessing Customer Satisfaction
15-1 WHY IS MARKETING RESEARCH
SO IMPORTANT?
Every marketing decision should be based on facts. Marketing research is about gathering
those facts.
The smartest marketers are always monitoring their customers, the environmental
context, their competitors’ actions, their relationships with their collaborators, their
own company strengths—the 5Cs. And the smartest marketers make decisions about
their products, place, promotion, and price—the 4Ps—based on marketing intelligence.
As Figure 15.1 indicates, marketing research methods can be used to obtain many insights
about marketing and customers.
Marketing information should be gathered constantly, so that the company can be
knowledgeable and poised for action. Customer relationship management databases are
an important example of ongoing data collection and management systems. In addition,
occasions frequently arise that require periodically pulsing the market with specific mar-
keting research projects. Whether the assessments are continuous or periodic, they require
knowledge of marketing research techniques.
256
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-202
Chapter 15 Marketing Research Tools
257
• STP
• cluster analysis for segmentation
multidimensional scaling for perceptual mapping, targeting and positioning
. 4Ps
• conjoint for new products
• Scanner data for pricing
• surveys to assess customer satisfaction with Internet as a distribution option
• experiments to verify ad testing
Figure 15.1
Examples
of Relevant
Marketing
Research
• 5Cs
secondary data to understand context
observational data to check on competitors
networks to study collaborators
• interviews to study company’s employees
surveys for customer satisfaction
Figure 15.2 depicts the typical flow in the research process, from formulating the
marketing and marketing research problem, to data collection and analysis, to reporting the
results. Data collection can take quite a number of forms, as Figure 15.3 suggests.
.
Figure 15.2
Marketing
Research
Process
.
. Define marketing, and marketing research problem
Try to answer questions with secondary data
Design primary data collection
. Sample (e.g., random sample, stratified sample by segment)
• Technique
. Qualitative: interviews, focus groups, observations and ethnographies
. Quantitative: surveys, experiments, scanner data analysis
. Instruments (e.g., questionnaire, focus group moderator guide)
• Mode of Administration (e.g., web survey, mail, personal interview)
Data collection
Data analysis
Communicate results (white paper, presentation, recommendations)
.
Kind of Data?
Definition?
Examples?
Figure 15.3
Kinds of Data
Library, online
Secondary
Primary
Advantages?
Quick & cheap to get
Can be quite precise
Already exist
Design, collect,
analyze
Focus group
surveys
Used for?
Examples?
Kind of Study?
Exploratory
Descriptive
Causal
Formulate marketing questions
Obtain large scale stats
Study effects of manipulating 4Ps
Focus groups, interviews
Surveys, scanner data
Experiments
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-202
258
Part 4 Positioning: Assessment through the Customer Lens
Marketing research is tremendously flexible; it can be used to address just about any
business question, and there are many ways to do so. This chapter focuses on six popular
techniques:
1. Cluster analysis for segmentation
2. Perceptual mapping for positioning
3. Focus groups for concept testing (in new products or advertising)
4. Conjoint for testing attributes (in pricing, new products, or branding)
5. Scanner data for pricing and coupon experiments and brand switching
6. Surveys for assessing customer satisfaction
15-2 CLUSTER ANALYSIS FOR
SEGMENTATION
A couple of MBAs who are feeling a little broke are thinking they could start an NPO
to fund young people to go to college. There are many such nonprofits, but not many
(or no particular branded ones) seem to support the goal of offsetting these costs. The team
wishes to first verify or test its assumptions by looking at people’s perceptions on these
issues. They figure there must be a segment of customers who will be sympathetic.
The results of their study are presented in Figure 15.4; it’s a typical executive summary
of a segmentation study. The segment names are catchy titles that the marketer creates to
label the segments and to summarize the qualities that the customers have in common,
e.g., people who give charitably to medical associations, the arts, environment societies, etc.
The size column reflects the proportion of customers in the database who belong to each
segment. The beneficiaries column contains the questions from the survey that each group
resonated with the most.
Segment Name
Size
Beneficiaries
Figure 15.4
Segmentation
of NPO
Supporters
Health and Medical
The Arts
Greenies
Children
Other
30%
20%
15%
10%
25%
American Cancer Society
Ballests, Museums, Operas
Nature Conservancy, World Wildlife Fund
Make-a-Wish, St. Jude’s Charity, Unicef
Religious, Local (e.g., Animal Shelter,
Food Bank)
Let’s see what’s behind the segmentation summary and how the marketers got these
results. Figure 15.5 shows the survey that gave rise to the data. The marketers asked
customers about their charitable giving behavior, as well as their opinions about higher
education—its importance in society and its cost.
Figure 15.6 contains part of the data set. For example, the first customer tends to give
money to environmental and medical causes, but not to a lot to kids’ causes, and is not
overly concerned with the price tag on colleges.
into
smaller groups of customers, where, within a group, customers are seeking similar attributes.?
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-202
Chapter 15 Marketing Research Tools
259
How important is it to support these nonprofit causes for a better society?
Not very
Very
important
Figure 15.5
Survey Used
to Interview
Customers
strongly
agree
important
Medical causes like American Heart Assn.
1 2 3 4 5 6 7
1 2 3 4 5 6 7
The arts, like ballet or museums
1 2 3 4 5 6 7
Environmental concerns, like WWF
1 2 3 4 5 6 7
Children’s charities, like Make-a-Wish
1 2 3 4 5 6 7
To what extent would you say that you agree with these statements?
strongly
disagree
Higher education is very important.
1 2 3 4 5 6 7
More college educated people make for a better
society.
1 2 3 4 5 6 7
My success in life was largely due to my going
to college.
1 2 3 4 5 6 7
People don’t really need to go to college,
1 2 3 4 5 6 7
Only the very privileged can go to university
these days.
1 2 3 4 5 6 7
Higher education is too expensive.
1 2 3 4 5 6 7
I would help sponsor a kid (not my own) to go
to college.
1 2 3 4 5 6 7
Figure 15.6
NPO DataSet
Customer
ID# Med
1 5
2 3
3 3
4 5
5
Art
4
7
Envir Kids
7 1
3 5
2 4
1 3
3 3
Imp
4
4
5
7
More Suc No Need Priv Too Exp Spons
2 4 2 1 1 1
7 3 4 1 1
3
4 2 4 7 7 4
2 2 2 4 2 7
3 4 3 3 1 3
or on or
4
Different groups look for different attributes. In these data, there are 11 variables, and, al-
though clustering techniques have no problem with processing even more variables, it is
difficult for us to imagine what 11-dimensional scatterplots look like. So in Figure 15.7, the
problem is simplified a bit.
In the left plot, we can see the pretty clear patterns of the first and third clusters, people
who support environmental concerns and people who are concerned that higher ed is so
expensive that only the privileged can attend. Customers near the origin don’t care as much
about either issue. In the next plot, we see the second cluster identified as those who sup-
port the arts and believe that education enhances society. Finally, in the plot at the right,
there seems to be a customer segment that is willing to sponsor a child through college
Altogether, the intuitions of the MBA team seem to be valid; they may be on to something
in creating an NPO to support scholarsh
and
CLUSTER ANALYSFOR
people who would be willing to help. rs Page 272 of 337 t least one segment of
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260
Part 4 Positioning: Assessment through the Customer Lens
Figure
15.7
NPO and
Beliefs Clusters
“Support
environment.”
“More college
educated people
make better society”
“Sponsor a kid”
“Support the arts”
“Expensive”
“Only privileged
go to U and higher
ed too expensive.
That’s all there is to it. Get data from your customers and process it through a clus-
ter analysis. There are many clustering techniques, so you will have to hire a marketing
researcher for the fine points. But this example shows you the essence of how to find
segments. Note, of course, that a cluster analysis helps you identify segments (and their
sizes), but it does not tell you which segment to target—that’s dealt with in Chapters 4,
14, and 16.
15-3 PERCEPTUAL MAPPING FOR
POSITIONING
Positioning studies are used to understand customer perceptions of brands in the mar-
ketplace. Marketers and executives find perceptual maps extremely appealing. They are
pictures of competing brands as well as attributes, which together offer a sense of compet-
itive strengths and weaknesses. There are two approaches to creating a perceptual map: an
attribute-based approach and multidimensional scaling (MDS).
15-3a Attribute-Based
To create a map based on attributes, customers complete a survey that looks like the one
in Figure 15.8. The customer makes two kinds of ratings: (1) How does our brand rate
on a number of attributes? (2) How important is each of these attributes? A local gym
called BeFit Gym had aspirations for growth, including expansion to multiple locations,
and their hopes and plans motivated this particular study. They solicited a positioning study
of their gym and some national chain competitors. They asked customers about their per-
ceptions regarding how well each gym fared on the bases of variety of equipment, variety
of classes, helpfulness of staff, value, and the extent to which the gym brand “reflected their
personalities.”
The analysis begins by merely simply averaging over these questions. Doing so results in
a pair of means for each attribute; e.g., there is a mean on whether the gym is good value
and a mean for how important value is to this customer.
These pairs of means are used to plot the attributes in a 2-dimensional chart, as in
Figure 15.9. The higher the mean performance on an attribute (in the first 5 ratings)
determines how far to Page 273 of 337 e plotted. The importance of the attribute
(in the second five ratings) is the coordinate on the vertical axis of the chart.
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-202
Chapter 1 Why is Marketing Management Important?
11
Video Discussion Questions
1. Describe the marketing exchange relationship between Southwest Airlines and its customers.
2. Describe the 5Cs of the marketing framework as they pertain to Southwest Airlines.
3. How does Southwest Airlines’ approach to providing a total product experience capture the marketing framework
elements of STP (segmentation, targeting, and positioning) and the 4Ps (product, price, place, and promotion)?
MINI-CASE
How to Design an Attractive Wearable
A large electronics manufacturer wishes to issue a new “wearable” The company wants to design it such that it
will make money with the purchase of the unit, of course, but that it will also make money as its customers use
it. In addition, the company would like to capture data about the customers’ profiles, in terms of their activities,
spending patterns, etc.
Wearables vary in many ways, and initially, the brand management team proposed to issue a design that looked
like a small smartphone, to be worn on the user’s wrist. Given the still relative novelty of such units, they thought
they’d charge on the high end, about $100, maybe even instituting a small annual fee. To get supplementary data,
they thought they’d issue periodic surveys, about once a quarter, via the unit or via e-mail.
The youngest marketer, newest to the team asked, “Well, that’s good for us, but how is it attractive to our cus-
tomers? Why would they want this unit-when there are plenty of others out there?” One old manager shot out
a withering look. Well, that’ll teach the young person to speak up in the meeting. But the senior-most manager
spoke up and said, “Well, you’re right, we’re only looking at it from our point of view. What would this wearable look
like that our customers would want—and that can be profitable to us?”
What would help these marketers? What steps could they take to design a wearable that would be both opti-
mally appealing to its customers (and perhaps attract new customers), as well as optimally profitable?
A wearable could vary on many parameters, such as whether it would be worn on the wrist like a watch, or
as an earbud like music headphones or smartphone speakers, or as an add-on unit to glasses. Early prototypes
suggested that while earbuds or eyeglass designs were good at capturing GPS, they weren’t as versatile in sup-
porting multiple apps, and they weren’t as precise as exercise (step) counters (for example, the head didn’t move
as distinctly as the user’s wrist while walking). That is what led the brand managers to ask the designers to create
a wrist-wearable.
Even so, there were many possibilities: Should the unit look like a small smartphone or like a nice classic wrist-
watch in design? Should the apps be accessed by touch only or should the apps also be voice-activated? Should
there be an annual licensing fee? Should they allow co-branding with affiliations (e.g., a professional sports team
or one’s college alma mater)? Which features should be recommended as the unit is designed?
This electronics firm has little experience in marketing research as well, so the older managers were uncertain
as to how to proceed. One mentioned a focus group, another suggested an ethnography, and a third mentioned
surveys. The information that is sought, as well as the method by which the information would be obtained, are
both to be determined. Naturally, the company wants to roll out the new wearable as soon as possible, so while
the research project could be well-funded, they would face time pressure and would have to be judicious in their
choice of research avenues.
Chapter 14 Customer Satisfaction and Customer Relationships
255
15 MARKETING
MARKETING
RESEARCH TOOLS
.
Marketing managers of global multinationals frequently gather customer satisfaction data from their customers
all over the world. The question is how to make sense of the data. When the Japanese customer satisfaction ratings
look higher than those in England, does that mean the Japanese customers are truly more satisfied, or is something
else going on?
Joe has a lot of experience with international data and knows the cross-cultural literature. There are known
response tendencies found in different countries. These are stereotypes, of course, but here are the generalities
typical in such data:
Some cultures are said to be “enthusiastic,” meaning that the ratings display high variance. Thus, customers
in the U.S., Brazil (and many other South American countries), France, Italy, and Australia produce data
indicating that, when customers are happy, they’re really happy and when they’re not, they’re really
most sincerely not.
Other countries, such as England and Germany, are more “reserved.”The numbers on surveys show less
variability. Ratings tend to be near the midpoint, which means customers won’t indicate liking or disliking
anything all that strongly.
Some countries (e.g., Japan and some other Asian countries) have an “acquiescence” or courteousness bias,
saying things look favorable when maybe deep down that’s not quite what they think. Thus, when the Jap-
anese ratings appear more positive, giving the impression they’re happier, it’s more likely that they’re just
being polite on the survey.
5Cs
STP
4Ps
Product
Customer
Company
Context
Collaborators
Competitors
Segmentation
Targeting
Positioning
Price
Place
Promotion
.
Managerial Checklist:
• What kinds of marketing research do we need?
• Cluster Analysis for Segmentation
• Perceptual Mapping for Positioning
• Focus Groups for Concept Testing (in New Products or Advertising)
• Conjoint for Testing Attributes (in Pricing, New Products, or Branding)
• Scanner Data for Pricing and Coupon Experiments and Brand Switching
• Surveys for Assessing Customer Satisfaction
15-1 WHY IS MARKETING RESEARCH
SO IMPORTANT?
Every marketing decision should be based on facts. Marketing research is about gathering
those facts.
The smartest marketers are always monitoring their customers, the environmental
context, their competitors’ actions, their relationships with their collaborators, their
own company strengths—the 5Cs. And the smartest marketers make decisions about
their products, place, promotion, and price—the 4Ps-based on marketing intelligence.
As Figure 15.1 indicates, marketing research methods can be used to obtain many insights
about marketing and customers.
Marketing information should be gathered constantly, so that the company can be
knowledgeable and poised for action. Customer relationship management databases are
an important example of ongoing data collection and management systems. In addition,
occasions frequently arise that require periodically pulsing the market with specific mar-
keting research projects. Whether the assessments are continuous or periodic, they require
knowledge of marketing research techniques.
256
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-202
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-202
Chapter 1 Why is Marketing Management Important?
11
Video Discussion Questions
1. Describe the marketing exchange relationship between Southwest Airlines and its customers.
2. Describe the 5Cs of the marketing framework as they pertain to Southwest Airlines.
3. How does Southwest Airlines’ approach to providing a total product experience capture the marketing framework
elements of STP (segmentation, targeting, and positioning) and the 4Ps (product, price, place, and promotion)?
MINI-CASE
How to Design an Attractive Wearable
A large electronics manufacturer wishes to issue a new “wearable” The company wants to design it such that it
will make money with the purchase of the unit, of course, but that it will also make money as its customers use
it. In addition, the company would like to capture data about the customers’ profiles, in terms of their activities,
spending patterns, etc.
Wearables vary in many ways, and initially, the brand management team proposed to issue a design that looked
like a small smartphone, to be worn on the user’s wrist. Given the still relative novelty of such units, they thought
they’d charge on the high end, about $100, maybe even instituting a small annual fee. To get supplementary data,
they thought they’d issue period…
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