Test1MRKT(Panels)

7/31/2019 Test1MRKT(Panels)

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Essentials of Marketing Research

Kumar, Aaker, Day

Essentials of Marketing

ResearchKumar, Aaker, Day

Instructors Presentation Slides


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Essentials of Marketing Research

Kumar, Aaker, Day

Chapter Six

Standardized Sources ofMarketing Data


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Essentials ofMarketing Research

Standardized Sources

Syndicated sources of marketing data:

Store audits

warehouse withdrawal services

consumer panels

scanner based systems and single sourcedata


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Motivation for using

standardized data Pipeline Effect in distribution channels

Unknown competitor actions

Store behavior unknown (i.e. promotion

execution)


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Example for packaged goods

sales: margarine brand

Margarine Sales in units for 28 w eeks

0

500

1000

1500

2000

2500

3000

3500

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4500

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

Sales

Actual Sales


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Motivation for using

standardized data

0

50100

150

200

250300

350

400

450

Week

1

Week

2

Week

3

Week

4

Week

5

Week

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Unitsales

Production

FactorySales

Retail Sales

Factory Sales Peak Retail Sales Peak


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Growth of Standardized Sources

Factors

Multitude of information users having

common information needsWhen cost of satisfying individual user's

need is prohibitive

The increasing use of scanner systems at the

check out points


8/28Essentials ofMarketing Research

Retail Store Audits

Personally record store inventories and

movements for any brand and size

Basic measurement tool in lieu of scanning

data

Common categories: Health and Beauty,

Durable, Confectionery, Liquor,

Example: Nielsen Retail Index


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Retail Store Audits

Beginning Inventory

+ Deliveries

- Ending Inventory

= Sales for Period


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Nielsen Retail Index

Biggest research company in the world

Their auditing services cover four groups

Grocery products

Drugs

Mass merchandisers

Alcoholic beverages


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Audits and Surveys:

National Market Audit

Bimonthly audit focussed on products

irrespective of the outlet carrying the

product


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Consumer Purchase Panels

Audits and scanner data do not cover:

Who buys (consumer demographics)

Frequency of purchases

Switching behavior between brands and

stores

Level of deal sensitivity


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Essentials of

Marketing Research

What is a Panel?

Representative sample

of households

Records all purchases

made over time (cross-section/time-series) Records all coupons used

Receive incentive for co-operation

ACNielsens Consumer Panel: HomescanConsists of 40,000 demographically balanced U.S.

households that use hand-held scanners to record

every bar-coded item purchased.


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Essentials of

Marketing Research

Consumer Purchase Panels

To Cover the Gap Between Warehouse WithdrawalAudits and Actual Purchases Following Methods CanBe Used

Home Audit Approach

Panel member agrees to permit an auditor to check thehousehold stocks of certain product categories at regularintervals

Mail Diary Method

Panel member records the details of each purchase andreturns the diary by mail at regular intervals


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Essentials of

Marketing Research

Advantages of Panels

Can Provide Information On

Aggregate Sales Activity

Brand SharesShifts in Buyer Characteristics

Shifts in Retail Outlets


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Essentials of

Marketing Research

Limitations of Consumer Panels

Possibility of

Selection Bias

Mortality Effect

e.g. move, illness, refusal

Testing Effectsfirst month records are discarded


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Essentials of

Marketing Research

Scanner Data

Have revolutionized grocery (and retail ) industry

Generates huge amounts of data

Main suppliers: IRI, Nielsen

Kraft Food spends more than $30 million per year

on scanner data

In comparison to survey

research: scanner datareveal actual consumer

behavior


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Essentials of

Marketing Research

Single-source Systems

Combine scanner data, panels, and TV-

measurement

Usually set up in self-containedcommunities with their own newspapers

and cable TV and are roughly representative

of the demographics of the country

A test panel of community households is

recruited and monitored

Example: BehaviorScan by IRI


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Essentials of

Marketing Research

Single-source Systems

Experiment like setting

Control of

advertising exposure in TV, newspapers, couponing

buying behavior


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Essentials of

Marketing Research

Advantages of Single Source

Systems

Availability of exclusive pre-test records

Immediate availability of test results

Ability to compare households prior to andafter exposure to the message

Ability to control settings


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Essentials of

Marketing Research

Media Related Standardized Sources

Nielsen Media Research (previously

Nielsen Television Index)

A system for estimating national TV audiencesArbitron Diary Panel

Both regional and national radio and TV panels

Starch ScoresPrint media

Multi Media and Web Services


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Essentials of

Marketing Research

Nielsen Media Research(http://www.nielsenmedia.com)

Nielsen Media Research (New York)

National People Meter Service: audience

estimates for all national programming sources,

including six broadcast networks, 41 cablenetworks.

Used by more than

100 advertising agenciesand 45 advertisers.


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Essentials of

Marketing Research

Source:

New York Times

1997


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Essentials of

Marketing Research

Roper Starch (http://www.roper.com)

Starch Ad Readership Reports measure adreadership within specific publications

Covers over 500 magazine issues and about

25,000 ads each year.

Raw readership scores (the percent of readers who

saw the ad and read the copy)

Ad is ranked against other ads in the issue.

Ad is ranked against other ads in its productcategory over the past two years.

Interviews are conducted in person

Standard demographic breakdowns


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Essentials of

Marketing Research

Expert Systems Based on Single-

source Services Since users of scanner data are flooded with

massive amounts of data, expert systems areused to help the users understand the data

quickly Examples of Expert Systems Are

Apollo Space Management Software

Cover StorySales Partner

Promotion Stimulator

Spotlight


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Essentials of

Marketing Research

Marketing Decision Support Systems

A typical marketing manager receives some or all offollowing data

Factory shipments or order

Syndicated aggregate (industry) data services

Sales reports from sales personnel

Consumer panel data

Scanner data

Demographic data

Internal cost and budget data

Purpose of MDSS is to combine marketing data fromdiverse sources into single database


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Essentials of

Marketing Research

Applications of Standardized

Sources of Data

Measuring product sales and market share:

Panels, audits, scanner data, internal records

Measuring advertisement exposure andeffectiveness:

Starch Scores, Nielsen Media Research,

Arbitron


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Essentials of

Marketing Research

Applications of Standardized Sources of Data

Measuring promotion effectiveness:

scanner data, panels

Estimation and evaluation of models

scanner data, starch scores, panels, internal records

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