C H A P T E R C H A P T E R 5 5 Marketing- Information Management Marketing- Information Management 5.1 The Need for Speedy Information 5.2 The Marketing Research Process 5.3 Managing the Information PHOTO AT LEFT ß NUBOARD MEDIA SPORTS PROMOTION Copyright 2008 Thomson Learning, Inc. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Licensed to: angela_ly[email protected].pa.us
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
C H A P T E RC H A P T E R
55 Marketing-InformationManagement
Marketing-InformationManagement
5.1 The Need for SpeedyInformation
5.2 The MarketingResearchProcess
5.3 Managing theInformation
PHOTO
ATLEFT�
NUBOARD
MEDIA
SPORTS
PROMOTIO
N
Copyright 2008 Thomson Learning, Inc. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part.
How It’s DoneMarketing research is a problem-solving tool
that helps focus decision making. The process,
which must be ongoing, repeated frequently,
and revised often, involves seven steps.
1. Discover and define the problem
2. Analyze current conditions
3. Develop the process for data collection
4. Collect the data
5. Analyze and report the data
6. Determine a solution to the problem
7. Implement and evaluate the results
1. Discover and Define the Problem Albert Einstein is quoted as saying,
‘‘The formulation of the problem is often more essential than its solution.’’
Marketing research is planned around the need to make a decision that will
solve a problem. The research that needs to be conducted is defined by the
decision or problem that needs to be resolved. According to William G.
Zikmund, in his book Exploring Marketing Research, there are three degrees of
research related to problem definition.
l Exploratory research is conducted when a business is unaware of the
exact problem. For example, fewer people are watching a TV show,
but the network does not know why. Exploratory research can include
desk research, where reports of other completed research are used to
help define the problem. Exploratory research is expected to lead to
further research once the problem is defined.
l Descriptive research is used when the business is aware of the
problem that needs to be solved. For example, if a group wants to start
a new professional soccer team, it needs to know if there will be a
sufficient fan base to support the team.
l Causal research is used to determine cause-and-effect relationships
when the problem is already clearly defined. For example, if a sports
team’s marketing department does not know which of two team logos
and colors will motivate fans to buy more team merchandise, research
can help determine the effect of each alternative.
2. Analyze Current Conditions Analysis might include examining sales
volume and customer data to understand current conditions. If sales of
merchandise related to team uniforms and logos have slowed while season
ticket sales are high, the team may need to take a look at changing the
uniform. If team merchandise sales are very high, a change might slow sales.
3. Develop the Process for Data Collection There are a number of ways to
conduct marketing research, including observation and conducting a survey.
When trying to decide whether to switch team uniforms, the marketers
could have the team wear each of the uniforms for one-half of a game and
observe the fans’ reaction. Another method would be to develop a written
questionnaire or survey and ask the fans to respond.
�GETTYIM
AGES/PHOTODISC
TimeOutTimeOutA Likert scale is amethod of sum-marizing and rat-
ing respondents’attitudes. Afterreading a com-ment, the personresponding will indi-cate the degree towhich he or she agreesor disagrees with thestatement. This is usuallydone on a five-pointscale---strongly disagree,disagree, neither agreenor disagree, agree, orstrongly agree.
THEMARKETING RESEARCH PROCESS Lesson 5.2 127
Copyright 2008 Thomson Learning, Inc. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part.
sample. Nielsen uses 10,000 households as the representative sample of the
109.6 million U.S. households with televisions. A top-rated show is one that
is watched by the most people in a sample during the show’s time slot.
Nielsen collects the data using an electronic box connected to the television.
Each viewer in the household has a separate button on a remote control
that, when activated, records the show being watched and attributes it to the
household member by age and gender.
Another ACNielsen division is Nielsen Sports, which identifies households
by their interest in professional sports. Using 125,000 households that make
up a consumer panel, the service is able to link a household’s interest in
professional sports to its purchases of specific brands and products and even
to specific stores where household members shop. The information allows
professional sports teams to closely target their fans with marketing efforts.
Cookies Anyone?Nielsen households serve voluntarily as part of the sample, but personal data
are often collected from consumers when they are not even aware that it is
happening. Electronic marketers gather information about visitors to their
web sites through the use of cookies. A cookie is a small data file that is
placed on the hard drive of a web site visitor that collects and reports data on
the visitor. The cookie tracks how often the computer is used to visit the site,
where visitors go within the site, which ads they view and click on, where they
clicked from to get to the site, and so forth. Knowing customers’ interests and
habits allows companies to better focus on what customers want.
Consumer PrivacyDecisions based on data can help customers make the right choices and
businesses become more successful, but data must be collected and used
When customers use a credit or debit card to make a
transaction, information about the customer is collected.
The customer’s name and credit card number, the custom-
er’s personal identification number (PIN), the type of pur-
chase, the items purchased, and the
amount of the purchase are some of the
data collected as the transaction is pro-
cessed. According to industry rules,
retailers are not supposed to trace or
store personal cardholder data such as
PIN numbers in their computer systems.
According to a warning issued in 2006 by
Visa to its client companies, some older
and or misconfigured versions of software
made by Fujitsu Transaction Solutions, Inc.
may be inadvertently storing customer data, including the
PIN numbers, used in debit card transactions. The stored
personal data could be putting bank customers at risk
should the information be accessed by hackers or other-
wise fall into the wrong hands. The stored data could
potentially be used to access customers’ bank and credit
card accounts.
Think Critically
1. Do marketing researchers, credit card companies,
and retailers have an obligation to protect their
customers’ personal data? Why or why not?
2. How might it impact a retail store if it became
known that its customers’ data were not properly
secured?
TimeOutTimeOutMost writtenresearch reportsinclude a sectioncalled an execu-tive summary.
This summary islocated near the
front of the report andis usually only one pagelong. It highlights themost important pointsof the research, andwhen well written, willentice the reader todelve further into theresearch report.
134 Chapter 5 MARKETING-INFORMATIONMANAGEMENT
Copyright 2008 Thomson Learning, Inc. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part.
Review Marketing ConceptsWrite the letter of the term that matches each definition. Some terms will
not be used.
1. Surveys of people’s opinions
2. A small number representative of a large
group
3. Staff employees who work with external
research agencies
4. The range of prices charged for a cate-
gory of merchandise
5. Gathering information specifically
focused on a single target market
6. Repeat customers who are completely
loyal to a company’s products
7. Research used to determine cause-and-
effect relationships when a problem is
already clearly defined
8. Determined by dividing the number of times an ad is clicked on by
the number of times the ad is shown
9. A small data file that is placed on the hard drive of a web site visitor
that collects and reports data on the visitor
10. Research conducted by an independent company that is offered for
sale to everyone in an industry
Circle the best answer.
11. When sales of a product are declining and the business does not know
why, it will conducta. syndicated researchb. exploratory researchc. descriptive researchd. causal research
12. The first step in marketing research involvesa. defining the problemb. analyzing current conditionsc. collecting datad. none of the above
13. The differences between marketing research and market research includea. marketing research is focused on a very specific target marketb. marketing research involves a much broader scopec. market research can be applied to a number of marketing problemsd. all of the above
a. causal research
b. click-through rate
c. client-sideresearchers
d. cookie
e. data mining
f. descriptive research
g. desk research
h. engaged customers
i. exploratory research
j. market research
k. polls
l. price points
m. sample
n. syndicated research
138 Chapter 5 MARKETING-INFORMATIONMANAGEMENT
Copyright 2008 Thomson Learning, Inc. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part.
LONGER LIFESPANS EQUALSMALLER INHERITANCESAmericans are living longer andconsuming their savings. Babyboomers, counting on inheritancesto supplement their retirementsavings, should look for alternativeplans. A recent report by the Centerfor Retirement Research at BostonCollege found that 43 percent ofworkers risk being unable to main-tain their standard of living forretirement.
Experts believe that more than$40 trillion will be transferred fromone generation to another over thenext 60 years. Boomers are expectedto inherit $7 trillion to $10 trillion.The greatest percentage of inheri-tance will go to individuals whohave a net worth of $450,000 ormore. By the end of 2004, about19 percent of boomers—born from1946 to 1964—had received aninheritance. The median amount ofinheritance was $49,000.
Planning for RetirementThe 90 and above age group isincreasing. More individuals areenjoying longer years of retirementand are deservingly spending savingsto enjoy life. Fidelity Investmentsestimates that a 65-year-old coupleretiring today will need about$200,000 to cover health costs thatare not covered by Medicare. The
average cost of a nursing home is$60,000 per year in many cities.
Boomers come from families thatwere relatively large. Parents ofchildren born from 1946 to 1964had an average of 3.5 children,resulting in a smaller inheritancefor each child after dividing it up.Inheritance is a very sensitive topic.Baby boomers must plan savingsthat will meet their standard ofliving for retirement. Maintaining alifestyle of travel and entertainmentthroughout the retirement years willrequire smart financial planning.
Think Critically
1. Why should baby boomers notcount on inheritance as a majorpart of their financial wellbeing?
2. What can the travel and tourismindustry do to attract the busi-ness of a growing senior citizenpopulation?
3. What message does this casesend to individuals who want tomaintain their lifestyle afterretirement?
4. Because individuals are livinglonger, what kinds of insuranceshould they consider buying toprotect their savings andinvestments?
142 Chapter 5 MARKETING-INFORMATIONMANAGEMENT
Copyright 2008 Thomson Learning, Inc. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part.
TRAVEL AND TOURISM MARKETINGMANAGEMENT TEAMDECISIONMAKING EVENTThe American population is livinglonger and enjoying longer years ofretirement. Many senior citizensload up RVs and move to warmerlocations for the winter.
Many retirees still want to main-tain residences in the North wheretheir family lives. The Best of BothWorlds has retirement communitiesthroughout the United States, en-abling individuals to have two resi-dences during the year. Individualscan enjoy the North in the summerand the South in the winter. Residentsmust be at least 55 years old andcannot have children currently livingin the household. Each retirementcommunity is a self-contained com-munity, complete with a supermarket,exercise facilities, club house, golfcourse, bank, drug store, medicalservices, and other important retailestablishments.
The Best of Both Worlds is a rela-tively new concept for retirementcommunities. The price for bothresidences is less than the cost of twosimilar single households. All main-tenance services are included in theprice of the condominiums. Resi-dents have the peace of mind thatboth homes are maintained andsecure at all times.
Because The Best of Both Worlds isa new concept for retirement living,you have been hired to develop amarketing promotional plan to cap-ture the attention of senior citizens.You must select the forms of adver-tising and promotion that will bemost effective for the target market.
Your team has 30 minutes toorganize a marketing promotionalstrategy for The Best of Both Worlds.You may use notes and a laptopcomputer for your presentation. Youwill have ten minutes to present yourproposal, and the judge has an addi-tional five minutes to ask questions.