FOM-Lecture-7.pptx

Managing Marketing
Information to Gain
Customer Insights
Part-2

Technological
devices
People meters
Checkout
scanners
Neuro-
marketing
Marketing Research
Research Instruments
Developing Marketing Information

1- 3
Copyright © 2012 Pearson Education, Inc.
Publishing as Prentice Hall
Qualitative Measures
 Word association
 Asks subjects what words come to mind when they hear the
brand’s name.
 Projective techniques
 Give people an incomplete stimulus & ask them to complete it.
 Visualization
 Requires people to create a collage from magazine photo or
drawings to depict their perceptions.
 Brand personification
 Ask subjects what kind of person they think of when the brand in
mentioned.
 Laddering
 A series of increasingly more specific “why” questions.

1- 4
Technological Devices
 Galvanometers
 Measure the interest or emotions aroused by exposure to specific ad or
picture.
 Tachistoscope
 Flashes an ad to a subject with an exposure interval that range from less
than one hundredth of a second to several seconds.
 Eye cameras
 Study respondents eye movements to see where their eyes land first, how
long they linger on a given item.

1- 5
Technological Devices…
 Audiometers
 Attached to TV sets in participating
homes record when the set on & to
which channel is tuned.
 GPS
 Global Positioning System – How many
billboards a person may walk by or
drive by during a day.

1- 6
Sampling Plan
 Sampling unit:
 Who is to be surveyed?
 Sample size:
 How many people should be surveyed?
 Sampling procedure:
 How should the respondents be chosen?
Step 2: Develop the Research
Plan…

1- 7
Types of Samples
 Probability Samples
 Simple random
 Every member of the population
has an equal chance of selection.
 Stratified random
 The population is divided into
mutually exclusive groups i.e. age
group & random sample drawn
from each group.
 Cluster
 The population is divided into
mutually exclusive groups i.e. city
blocks the researcher draws a
sample of the group.
 Nonprobability Samples
 Convenience
 The researcher selects the most
accessible population members.
 Judgment
 The researcher selects population
members who are good prospects for
accurate information.
 Quota
 The researcher find & interviews a
prescribed number of people in each
of several categories.

1- 8
Contact Methods
 Mail questionnaire
 Telephone interview
 Personal interview
 Online interview
Step 2: Develop the Research
Plan…

Marketing Research Strengths and
Weakness of Contact Methods
Mail Telephone Personal Online
Flexibility Poor Good Excellent Good
Quantity of data
collected
Good Fair Excellent Good
Control of
interviewer effects
Excellent Fair Poor Fair
Control of sample Fair Excellent Good Excellent
Speed of data
collection
Poor Excellent Good Excellent
Response rate Poor Poor Good Good
Cost Good Fair Poor Excellent

 Focus Groups
 Six to 10 people
 Trained moderator
 Challenges
 Expensive
 Difficult to generalize from small group
 Consumers not always open and honest
Marketing Research
Contact Methods

Internet
surveys
Online
panels
Online
experiments
Online focus
groups
Marketing Research
Online Contact Methods

Advantages
• Low cost
• Speed
• Higher response rates
• Good for hard to reach
groups
Marketing Research

Disadvantages
• Small samples
• Skewed samples
• Technological problems
• Inconsistencies
Marketing Research

1- 14
 The data collection phase of marketing research is generally the
most expensive and the most prone to error.
 Data collection methods are rapidly improving thanks to technology.
Step 3: Collect the Information

1- 15
 The next to last step in the process is to extract findings by
tabulating the data and developing frequency distributions.
Step 4: Analyze the Information

1- 16
 As the last step, the researcher present findings relevant to major
marketing decisions facing management.
Step 5: Present the findings

Collecting the information
Processing the information
Analyzing the information
Interpret findings
Draw conclusions
Report to management
Marketing Research
Implementing the Research Plan
Developing Marketing
Information

1- 18
What is Customer Relationship
Management?
CRM is the process of carefully managing detailed information
about individual customers and all customer touch points to
maximize customer loyalty.

Customer
purchases
Sales force
contacts
Service and
support calls
website visits
Satisfaction
surveys
Credit and
payment
interactions
Research
studies
Customer Relationship Management
Touch points
Analyzing and Using Marketing
Information

1- 20
Framework for CRM
 Identify your prospects and customers.
 Differentiate customers by needs and value to your company.
 Interact with individual customers to improve your knowledge about
their individual needs & to build strong relationship.
 Customize products, services and messages to each customer.

1- 21
CRM Strategies
 Reduce the rate of customer defection.
 Increase the longevity of the customer relationship
 Enhance the growth potential of each customer through “share of
wallet” cross selling, & up-selling.
 Making low profit customers move profitable or terminating them.
 Focusing more effort on high-profit customers.

1- 22
Customer Retention- A tale from real
life
 Acquisition of customers can cost 5 times more than
retaining current customers.
 The average company loses 10% of its customers each
year.
 A 5% reduction to the customer defection rate can
increase profits by 25% to 85%.
 The customer profit rate increases over the life of a
retained customer.

1- 23
Database Key Concepts
 Customer
database
 Database
marketing
 Mailing list
 Business
database
 Data warehouse
 Data mining

1- 24
Using the Database
 To identify prospects
 To target offers
 To deepen loyalty
 To reactivate customers
 To avoid mistakes

1- 25
Don’t Build a Database When
 The product is a once-in-a-lifetime purchase
 Customers do not show loyalty
 The unit sale is very small
 The cost of gathering information is too high

1- 26
Perils of CRM
 Implementing CRM before creating a customer
strategy
 Rolling out CRM before changing the organization to
match
 Assuming more CRM technology is better
 Stalking customers

Information distribution involves entering information into
databases and making it available in a time-useable manner
 Intranet provides information to employees and other
stakeholders
 Extranet provides information to key customers and suppliers
Distributing and Using Marketing
Information

Marketing Research in Small Businesses and
Nonprofit Organizations
International Market Research
Other Marketing
Information Considerations

Public Policy and Ethics
• Customer privacy
• Misuse of research findings
Other Marketing Information
Considerations

Bibliography
 Principles of Marketing by Philip Kotler & Gary Armstrong
Fifteenth Edition, Published by Prentice Hall
 Marketing Management – A South Asian Perspective
by Philip Kotler, Kevin Lane Keller, Abraham Koshy &
Mithileshwar Jha, 13th Edition, Published by Pearson
Education, Inc.
 Principles and Practices of Marketing by Jobber, D. 4th
edition, McGraw Hill International.
 Principles of Advertising & IMC by Tom Duncan 2nd
Edition, Published by McGraw-Hill Irwin.

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