Lec 19- Marketing Research: From Customer Insights to Actions-1

Summary

This course segment delves into marketing research essentials, outlining its significance in reducing risk and enhancing decision-making. It introduces a five-step marketing research process: defining the problem, developing a research plan, collecting information, analyzing findings, and executing marketing actions. The lecture discusses challenges like researching new products, consumer reticence, and aligning intentions with behavior. It also touches on data collection methods, including secondary and primary data, and the use of observations and questionnaires.

Takeaways

• 🔍 Marketing research is a systematic process to define marketing problems and opportunities, collect and analyze information, and recommend actions to improve marketing decisions.
• 💡 Marketing insights are crucial as they provide diagnostic information about market effects and guide successful marketing strategies, such as the case with Tropicana's packaging redesign.
• 📊 Challenges in marketing research include conducting research for new products where consumers are unaware, unwillingness to share personal information, and the gap between stated intentions and actual behavior.
• 🛠️ The five-step marketing research process involves defining the problem, developing a research plan, collecting information, developing findings, and taking marketing actions.
• 🎯 Setting clear research objectives is essential to guide the marketing research and ensure the value of the research outcomes leads to actionable marketing strategies.
• 📈 Specifying constraints, identifying necessary data, and determining data collection methods are key steps in developing an effective research plan.
• 📚 Secondary data includes internal and external information already recorded, offering time and cost efficiencies but may be outdated or not specific enough for the research.
• 👀 Primary data is newly collected for the project and can be obtained through observation, questionnaires, and other sources, providing more tailored insights for marketing decisions.
• 🕵️‍♂️ Observational data can be collected mechanically, personally, or through neuromarketing methods, offering insights into consumer behavior in various contexts.
• ❓ Questionnaire data involves asking consumers about their attitudes and behaviors, using various question types like open-ended, closed, and scales for precise responses.
• 📘 The module concludes with the importance of marketing research, the five-step process model, and a brief introduction to primary data collection methods, setting the stage for further discussion in the next module.

Q & A

What is the definition of marketing research according to the script?

Marketing research is the process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions.

Why is marketing research important for marketers?

Marketing research is important for generating insights that provide diagnostic information about how and why certain effects are observed in the marketplace, which helps marketers make informed decisions.

What was the consequence of Tropicana's redesign of its orange juice packaging without adequate consumer testing?

Tropicana's redesign led to a disastrous drop in sales by twenty percent, and they had to reinstate the old package design after only a few months.

What are the three main challenges faced by marketers when conducting marketing research as mentioned in the script?

The challenges include conducting research for a new product where consumers are unaware, unwillingness of people to reveal personal information, and the discrepancy between respondents' stated intentions and actual behavior.

Can you describe the five-step marketing research process outlined in the script?

The five-step process includes defining the problem, developing the research plan, collecting relevant information, developing findings, and taking marketing actions.

What are the key elements in defining a marketing problem in the research process?

The key elements are setting research objectives and identifying possible marketing actions.

Why is it necessary to specify constraints in the research plan development step?

Specifying constraints helps in setting limitations on time and money available to solve the problem, which is crucial for the feasibility and focus of the research.

What is the difference between secondary and primary data in marketing research?

Secondary data are facts and figures already recorded prior to the project, while primary data are newly collected for the project.

How does the script differentiate between internal and external secondary data?

Internal secondary data comes from inside the firm and includes budgets, financial statements, etc. External secondary data comes from outside sources like government reports or market research companies.

What are the advantages and disadvantages of using secondary data in marketing research?

Advantages include time-saving, low cost, and greater level of detail. Disadvantages include potential outdatedness, incorrect definitions or categories for the project, and lack of specificity for the research purpose.

Can you explain the two principal ways of collecting primary data as mentioned in the script?

The two principal ways are observational data, which involves watching people's behavior, and questionnaire data, which involves asking people about their attitudes, awareness, intention, and behavior.

What are the different methods of collecting observational data mentioned in the script?

The methods include mechanical observation like TV ratings, personal methods like mystery shopping and ethnographic research, and neuromarketing methods that study brain activity in relation to marketing.

How does the script describe the process of asking people questions to gather primary data?

It involves using questionnaires to collect data through idea generation methods like individual interviews and focus groups, and idea evaluation methods that use conventional questionnaires for a large sampling of consumers.

What types of questions are used in questionnaires according to the script?

Open-ended questions allow respondents to express themselves freely, while closed or fixed alternative questions require respondents to select from a set of predetermined choices, often using different types of scales.

Outlines

00:00

📚 Introduction to Marketing Research

This paragraph introduces the concept of marketing research as a systematic process to define marketing problems and opportunities, collect and analyze information, and recommend actions. It emphasizes the importance of marketing insights in shaping successful marketing strategies, using the Tropicana packaging redesign case as an example of the consequences of ignoring consumer reactions. Challenges in marketing research, such as researching new products, consumer reluctance to share personal information, and the discrepancy between stated intentions and actual behavior, are also discussed.

05:03

🔍 The Five-Step Marketing Research Process

The second paragraph outlines a five-step approach to marketing research aimed at enhancing marketing decisions and actions. It begins with defining the problem and setting research objectives, followed by developing a research plan that includes identifying constraints, necessary data, and collection methods. The process continues with collecting relevant information, both secondary and primary, and developing findings through data analysis. The final step is taking marketing actions based on the research outcomes, with a feedback loop for continuous improvement.

10:03

📈 Understanding Data Collection for Marketing Research

This paragraph delves into the specifics of data collection in marketing research, highlighting the importance of concepts and methods. It explains the role of constraints in shaping research solutions and the necessity of identifying relevant data for marketing actions. The paragraph also discusses the significance of choosing the right methods for data collection, including sampling and statistical inference, and the importance of aligning research outcomes with potential marketing actions.

15:06

📝 Secondary and Primary Data in Marketing Research

The fourth paragraph explores the distinction between secondary and primary data in the context of marketing research. Secondary data, which includes internal and external sources, offers time-saving and cost-effective insights but may suffer from outdatedness or irrelevance. Primary data, on the other hand, is collected specifically for the project and can be obtained through various methods such as observation and questionnaires. The paragraph also touches on the advantages and disadvantages of using secondary data.

20:07

🤔 Methods of Collecting Primary Data

The final paragraph focuses on the methods of collecting primary data, which involves asking consumers questions and recording their responses. It distinguishes between idea generation methods, such as individual interviews and focus groups, and idea evaluation methods, which may involve conventional questionnaires and online surveys. The paragraph also discusses the importance of developing precise questions and the types of questions used in questionnaires, including open-ended and closed questions with various scaling techniques.

Keywords

💡Marketing Research

Marketing Research is defined as the systematic process of collecting, analyzing, and interpreting information to understand a market, its needs, and problems. In the video, it is the core process for defining marketing problems and opportunities, which is essential for making informed marketing decisions and reducing risks. The script mentions that marketing research involves defining the problem, collecting and analyzing information, and recommending actions.

💡Marketplace Insights

Marketplace Insights refer to the diagnostic information about how and why certain effects are observed in the market. These insights are crucial as they provide a deeper understanding of consumer behavior and market trends, which marketers can use to inform their strategies. The video emphasizes the importance of generating such insights, stating that they often form the basis of successful marketing programs.

💡Tropicana

Tropicana is used in the script as an example to illustrate the consequences of not adequately conducting marketing research. The company redesigned its orange juice packaging, removing the iconic image of an orange with a straw, which led to a disastrous consumer reaction and a 20% drop in sales. This example highlights the importance of testing consumer reactions through marketing research before making significant changes.

💡Five-Step Marketing Research Process

The Five-Step Marketing Research Process outlined in the video is a systematic approach to gather information and improve marketing decisions. The steps include defining the problem, developing the research plan, collecting relevant information, developing findings, and taking marketing actions. This process is iterative and may loop back to previous steps based on feedback and evaluation of results.

💡Secondary Data

Secondary Data in the context of the video refers to information that has already been collected and recorded prior to the current project. It can be internal, such as company budgets or sales reports, or external, like government reports or market research data. The script mentions the advantages of using secondary data, such as time and cost savings, and its disadvantages, like potential outdatedness or irrelevance.

💡Primary Data

Primary Data is newly collected information specifically for the project at hand. It can be obtained through various methods, including observations, questionnaires, and other sources like social media panels. The video script explains that primary data is essential for tailoring marketing strategies to the current needs and behaviors of consumers.

💡Observational Data

Observational Data is information gathered by watching consumer behavior, either through mechanical means like electronic tracking or personal methods like mystery shopping. The video script describes how this data can be collected using different techniques, including neuromarketing methods, which study consumer reactions at a subconscious level.

💡Questionnaire

A Questionnaire is a research tool used to gather primary data by asking consumers specific questions about their attitudes, awareness, intentions, and behaviors. The video script discusses different types of questionnaires, such as individual interviews and focus groups, and the importance of developing precise questions to elicit clear and unambiguous responses.

💡Idea Generation

Idea Generation is a method within the marketing research process where new concepts or ideas are created to solve a marketing problem or seize an opportunity. The video script mentions individual interviews and focus groups as common methods for generating ideas, which can then be evaluated and tested for their potential impact on the market.

💡Idea Evaluation

Idea Evaluation is the process of testing and assessing the viability of ideas generated during the research process. This step helps marketing managers to recommend actions based on consumer feedback and reactions. The video script explains that idea evaluation often involves surveys and questionnaires sent to a large sample of consumers to gauge their opinions on proposed ideas.

Highlights

Introduction to the third part of the course focusing on targeting marketing opportunities.

Explanation of marketing research as a systematic process involving problem definition, information collection and analysis, and action recommendation.

Importance of marketing research in generating insights to improve marketing decisions and reduce risks.

Case study of Tropicana's packaging redesign failure highlighting the necessity of adequate consumer testing in marketing research.

Challenges in marketing research including new product unfamiliarity, reluctance to share personal information, and the discrepancy between stated intentions and actual behavior.

The five-step marketing research process: defining the problem, developing the research plan, collecting information, developing findings, and taking marketing actions.

Setting research objectives and identifying possible marketing actions as key elements in defining the problem.

Developing specific measures of success to evaluate proposed solutions and guide different marketing actions.

Fisher-Price toy design example illustrating the application of marketing research objectives and actions.

Developing a research plan involves specifying constraints, identifying data needs, and determining data collection methods.

The significance of concepts and methods in collecting useful marketing research data.

Differentiating between secondary and primary data in the context of marketing research.

Advantages and disadvantages of using secondary data for marketing research.

Primary data collection through observation, including mechanical, personal, and neuro marketing methods.

Exploring the use of questionnaires for idea generation and evaluation in primary data collection.

The role of precise questioning in obtaining clear and unambiguous answers from respondents.

Types of questions used in questionnaires, including open-ended and closed questions with various scales.

Conclusion summarizing the importance of marketing research and the discussed steps of the research process.

Transcripts

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welcome to this course on introduction

to marketing Essentials now as you see

that we have talked about part one and

part two

and now we will start with part three

that is targeting marketing

opportunities and let us look at the

things that will be covered

the first thing that we will talk about

is the reasons for conducting marketing

research

the second thing that we will talk about

is describing the five step marketing

research approach that leads to

marketing actions

next we will explain how marketing uses

secondary and primary data and then we

will discuss the uses of observations

and questionnaires

now let us start with

the definition of marketing research

what is marketing research marketing

research is the process of defining a

marketing problem and opportunity

systematically collecting and analyzing

information and recommending actions

so

keep in mind that it is a process for

first is defining a marketing problem

and opportunity so that is in the first

itself second is systematically

collecting and analyzing information

so first is to define the marketing

problem or opportunities second is

systematic systematically collecting and

analyzing information and then the third

is recommending actions

marketers conduct marketing research to

reduce the risk of and thereby improve

marketing decisions

so this marketing research

what makes the marketing research

important

marketing research is all about

generating insights

what are marketing insights so marketing

insights provide diagnostic information

about how and why we observe certain

effects in the marketplace and what that

means to marketers so when we were

saying from marketing insights to action

so this is what marketing insights mean

diagnostic information

about

how

and why we observe some something

happening in the marketplace and

what does that means to the marketers

good marketing insights often form the

basis of successful marketing programs

for example

Tropicana

when Tropicana redesigned its orange

juice packaging dropping the iconic

image of an orange is keyword by a straw

it failed to adequately test for

consumers reaction with disastrous

results CS dot by twenty percent and

Tropicana reinstated the old package

design

after only a few months

now what are the challenges in doing a

good marketing research

so some of the challenges faced by

marketers while conducting a marketing

research include the first is conducting

a marketing research for a new product

as the people are unaware about the

product so what should we ask how to

generate insights

second is unwillingness of the people to

re to reveal the information related to

their personal lives or status which

affects the quality of research

and

the third challenge the that the

marketers May face is the lack of

consensus between the desire or

intention of the respondent to perform a

particular task

and his or her actual Behavior which

affects the reliability of the research

so these are three biggest problem in

conducting a good marketing research so

to summarize ah this the first is that

there is a new product so obviously

customers or the consumers they do not

know about this then how to conduct this

marketing and such second is people may

not be willing to share information

about ah about their personal lives or

status and then the third is

the desire or intention of this of the

respondent to perform a particular task

or her actual Behavior

so I may say that I will I will buy a

pen but I may not so that affects the

reliability of a research

now let us look at this five step

marketing research process

the systematic marketing research

approach used to collect the information

to improve marketing decisions and

actions involve five steps and is shown

in this figure that is 14.1

so this

marketing research process is a five

step process the first step of this is

to

Define the problem

so we go about

setting research objectives and then

identifying possible marketing actions

the second step is developing the

research plan specify constraints

identify data needed for marketing

action

and determine how to collect that data

the third step is to collect relevant

information obtain secondary data and

then obtain primary data

the fourth step is then to go about

developing the findings

analyze this data and then present the

findings and in step five

take marketing actions so make action

recommendations

so that is one important thing second is

implementation recommendations

and then third is to evaluate the

results now after evaluation of the

result then again this feedback process

start they it may go back to the

developing findings or to collect

relevant information or to develop a

research plan or it may go back to the

first step

so after step five

the feedback and goes to the step four

three two one so that

this process continues and other

problems they are identified and then

this this is how this process will

continue

so what happens in step one that is

Define defining the problem

so the key elements of defining a

problem are the first is set

the research objectives and second is to

identify possible marketing action

now how to go about setting the research

objectives

research objectives are specific

measurable goals the decision maker

seeks to achieve in conducting the

marketing research

if the objectives are too broad the

problem may not be researchable whereas

if they are too narrow the value of the

research results may be

seriously decreased

then identify possible marketing actions

effective decision makers develop

specific measures of success which are

criteria or standards used in evaluating

proposed solution to a problem

different research outcomes based on the

measures of success lead to different

marketing actions one test of whether

marketing research should be done is if

different outcomes will lead to

different marketing actions

if all the research outcomes lead to the

same actions the research is useless and

a waste of time and money

example the toy designers add Fisher

Price

so they conducted a marketing research

to discover how children play learn and

what they like to play with

they intended to see their response to

the original model of classic Fisher

Price toy that is the Chatter Telephone

which is a simple which is a simple

wooden phone with a dial that rang a

bell the children kept grabbing the the

receiver like the handle to pull the

phone along

behind them so the designer added Wheels

the noise maker and Isis that bobbed up

and down

now the research objective here was to

decide whether to market the old or new

telephone design

so the specific actions in case of

playing time as the measure of success

so this is measure of the success that

is the play time

the children's the children spent more

time playing with old design so this

these are the measure of a success that

is a play time and this is the possible

marketing action

now here the first option is children

spend more time playing with the old

design

and the possible marketing action is

continue with old design don't introduce

new design the second measure of success

is children spend more time playing with

the new design

and the possible marketing action is

introduce a new design and drop the old

design

the second step is to develop the

research plan so we are talking of this

the second step at this step the

researcher is expected to

you specify the constraints of the

marketing research activity identify the

data needed for marketing actions and

determine how to collect the data so

these are the three steps

that a researcher is expected to do

in this stage

so what is

specifying the constraints the

constraints in a decision are the

restrictions placed on potential

solutions to a problem

the limitations on time and money

available to solve the problem are some

of the examples of the constraints

now identify data needed for the

marketing action often marketing

research studies wind up collecting a

lot of data that are interesting but

is relevant for marketing decisions that

result in marketing actions

such an activity may result in causing

confusion to the managers and dealing

the process of the decision making

now determine how to collect the data

determining how to collect useful

marketing research data is often an

important as actually collecting the

data

so there are two key elements in

deciding how to collect the data the

first is the concept and the second is

the methods so these two are important

elements in deciding how to go about

collecting the data so what are the

concepts

what is meant by Concepts the concepts

are ideas about product or services

to find out about consumer reaction to a

potential new product marketing

researchers frequently develop

a new product concept

new product Concept in the picture or

verbal description of a product or

service The Firm might offer for sale

the next is the methods what are those

so methods are the approaches that can

be used to collect data to solve all or

part of a problem

special methods

vital to marketing are

sampling and statistical inference

marketing researchers often use sampling

by selecting a group of Distributors

customers or prospects

asking them questions and reading their

answers

as typical of all those in whom they are

interested so marketing researchers

often use sampling by selecting a group

of Distributors customers or prospects

asking them questions and treating their

answers as typical of all those in whom

they are interested they often then use

statistical inference to generalize the

results from the sample to much larger

groups of Distributors customers or

prospects to help decide on marketing

decisions and actions

now let us look at this third step that

is collecting relevant information so

this figure for that is figure 14.2

shows how the different kinds of

marketing information fit together

so we start from this left hand left

hand my left hand side so we move from

the facts and figures pertinent to this

project

now it can be the secondary or the

primary

so secondary data may include facts and

figures facts and figures already

recorded prior to this project while

primary data is facts and figures newly

collected for this project

so now the these two type of this

secondary data include internal data

that is inside the form but that was

recorded before this

this project

so that includes inputs such as budgets

financial statements

sales calls report

it also include outcomes actual sales

and customer communication

now the second type of secondary data is

the external data that is outside the

firm so countries that keep on

collecting lots of data so there is

Census Data trade Association studies

business periodicals and internet based

reports another data is primary data

so one type of primary data can be

collected through observational data

that is watching people now keep in mind

that primary data is collected for this

project

so one method of collecting data for

this project is by watching people and

there can be mechanical methods personal

methods and neuro marketing methods the

second way of collecting primary data is

through questionnaire asking people idea

generation methods and idea Evolution

methods are the two methods in this

questionnaire data the others the third

is the other source of data

for example social media panels and

experiments information technology and

data mining

so data the facts and figures related to

the problem are divided into two main

parts

one is secondary and second is primary

data what is the secondary data

secondary data are the facts and figures

that have already been recorded prior to

the project at hand

now it is again divided into two parts

internal and external secondary data

depending on whether the data comes from

inside or outside the organization

needing the research

what is

internal secondary data the internal

records of a company generally offer the

most easily accessible marketing

information so the in these internal

sources of secondary data may be divided

into two related Parts one is marketing

inputs and another is marketing outputs

this marketing input data relate to the

effort expanded to make sales these

range from sales and advertising budgets

and expenditures to sales persons calls

report

the marketing outcome data relates to

the results of the marketing efforts

so these involves billing records on

shipments from the accounting department

and communication from customers next is

the external secondary data

so it is it refers to the published data

from outside the organization and it

includes the government reports

data collected by market research

companies like the the Nielsen media

that and data by trade associations

universities and business periodicals

now there are several advantages of

secondary data the First Advantage is

the tremendous time saving because the

data has already been collected and

published or exist internally the second

is the low cost such as free or

inexpensive census reports and the third

is a greater level of details is often

available through secondary data

especially census data

but there are so several disadvantages

also

so the secondary data may be out of date

especially if there are Census Data

collected only every 10 every 10 years

so your data is already 10 years old the

definition or category might not be

quite right for a researchers project

for example the age groupings or product

categories might be wrong for this

project also because the data had been

collected for another purpose they may

not be specific enough

for this project

now the primary data are the facts and

figures

that are newly collected for this

project so primary data is divided into

observational data questionnaire data

and other sources of data

so this is what we are talking of

observing people and asking them

questions are the two principal ways to

collect new or primary data for a

marketing study what is observation data

it refers to the facts and figures

obtained by watching either mechanically

or in person how people actually behave

it can be collected by mechanical

including electronic personal or neuro

marketing methods what are these

mechanical methods of observation

collecting observation data so National

TV ratings such as those of Nelson media

research are an example of mechanical

observation data collected by a people

meter the device measures what channel

and program is tuned and who is watching

what

it then stores and transmits the viewing

information each in I2 Nelson media

research

so data are also collected on TV viewing

using less sophisticated meters or TV

Diaries a paper pencil system

in early 2012 Nelson introduced a cross

platform television ratings which

combine Nielsen existing TV ratings with

its new

online campaign ratings now what are

these personal methods of observational

data the first is mystery shopping or

representative form the company checks

on the quality and pricing of their

products and the Integrity of and

customer service provided by employees

by posing as a customer

another is ethnographic research it is a

specialized observational approach in

which Trend observers seeks to discover

subtle behavior and emotional reactions

as consumer and counter products in

their natural use environment such as in

their homes or car

the neuro marketing methods for

observing observation data means that

the global brand Expo so one Global

brand expert

that is Martin Lindstrom believe

most traditional marketing research like

focus groups and surveys is wasted

because consumers feeling towards

product and Brands reside deep within

their subconscious part of their brains

so Lindstrom most Neuroscience the study

of brain with marketing so then then it

is called as neuro marketing so asking

people primary data now let us move on

to primary data that is asking people

asking consumer questions and recording

their answers is the second principle

way of gathering information

questionnaire data these are facts and

figures obtained by asking people about

their attitudes awareness intention and

Behavior now we can divide this primary

data collection task into two

first is the idea generation method and

second is the idea

evaluation method what are the idea

generation method so first is an

individual interview it is the most

common way of collecting equation a data

to generate ideas

which involves a single researcher

asking questions to one respondent

another is focus groups informal

sessions of six to ten past present or

prospective customers in which a

moderator asks their opinions about the

firms and its competitors product how

they use these products and special

needs

they have

that this product do not address the

idea evaluation method the marketing

researchers tries to test ideas

discovered earlier to help the marketing

managers recommend marketing actions

idea evaluation methods often involve

conventional questionnaires using

personal mail telephone facts or online

email or Internet service of a large

sampling of of past present or

prospective consumers so personal

interview service enable the

interviewers

to be flexible in asking probing

question or getting reactions to visual

material but are very costly mail

surveys are usually biased because those

most likely to respond have had

especially positive or negative

experiences with the product or the

brand the advantages of online surveys

are

one is the cost is relatively minimal

and second is the turnaround time for

data collection is much quicker but the

drawback of these online surveys are

some consumers May view email service as

junk or spam

for both email and internet service

consumers can complete the survey

multiple times creating a significant

bias in the results so the same person

he is filling up questionnaire again and

again

so the foundation of all research using

questionnaire is

developing precise questions that get

clear unambiguous answers from the

respondents so different types of

questions used in questionnaire are

one is an open and ended question it

allows respondents to express opinions

idea or behavior in their own words

without being forced to choose among

Alternatives that have been

predetermined by a marketing researcher

closed or fixed alternative questions

now they require respondents to select

one or more response option from a set

of predetermined choices

so a fixed alternative question with

three or more choices use a scale

and there can be different scale one ah

scale is a semantic differential scale

which is a five point scale in which the

opposite ends

have one or two word that have opposite

meanings

another type of scale is a light cutter

scale ah scale in in which the

respondents indicate the extent to which

he or she agree or disagree with the

statement

so to conclude

in this module we discuss the importance

of the marketing research then we

introduced a five step model of

marketing research process which

includes defining the problem developing

the research plan collecting the

relevant information develop findings

and then taking marketing actions

thereafter we have discussed the first

two steps of the model and some part of

the third step that is collect the

relevant information

and then in the next module we will

continue with discussing other sources

of primary data these are the references

three books from which the material for

this module was taken thank you

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thank you

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