Essentials of Marketing Research

1. Essentials of Marketing Research Kumar, Aaker, Day Instructor’s Presentation Slides Essentials of Marketing Research Kumar, Aaker, Day

2. Chapter Six Standardized Sources of Marketing Data Essentials of Marketing Research Kumar, Aaker, Day

3. Standardized Sources Syndicated sources of marketing data: • Store audits • warehouse withdrawal services • consumer panels • scanner based systems and single source data Essentials of Marketing Research Kumar, Aaker, Day

4. Motivation for using standardized data • “Pipeline Effect” in distribution channels • Unknown competitor actions • Store behavior unknown (i.e. promotion execution) Essentials of Marketing Research Kumar, Aaker, Day

5. Example for packaged goods sales: margarine brand Essentials of Marketing Research Kumar, Aaker, Day

6. Motivation for using standardized data Factory Sales Peak Retail Sales Peak Essentials of Marketing Research Kumar, Aaker, Day

7. Growth of Standardized Sources Factors • Multitude of information users having common information needs • When cost of satisfying individual user's need is prohibitive • The increasing use of scanner systems at the check out points Essentials of Marketing Research Kumar, Aaker, Day

8. 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 Essentials of Marketing Research Kumar, Aaker, Day

9. Retail Store Audits Beginning Inventory + Deliveries - Ending Inventory = Sales for Period Essentials of Marketing Research Kumar, Aaker, Day

10. Nielsen Retail Index • Biggest research company in the world • Their auditing services cover four groups • Grocery products • Drugs • Mass merchandisers • Alcoholic beverages Essentials of Marketing Research Kumar, Aaker, Day

11. Audits and Surveys: National Market Audit • Bimonthly audit focussed on products irrespective of the outlet carrying the product Essentials of Marketing Research Kumar, Aaker, Day

12. 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 Essentials of Marketing Research Kumar, Aaker, Day

13. 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 • ACNielsen’s Consumer Panel: “Homescan”Consists of 40,000 demographically balanced U.S. households that use hand-held scanners to record every bar-coded item purchased. Essentials of Marketing Research Kumar, Aaker, Day

14. Consumer Purchase Panels To Cover the Gap Between Warehouse Withdrawal Audits and Actual Purchases Following Methods Can Be Used • Home Audit Approach • Panel member agrees to permit an auditor to check the household stocks of certain product categories at regular intervals • Mail Diary Method • Panel member records the details of each purchase and returns the diary by mail at regular intervals Essentials of Marketing Research Kumar, Aaker, Day

15. Advantages of Panels Can Provide Information On • Aggregate Sales Activity • Brand Shares • Shifts in Buyer Characteristics • Shifts in Retail Outlets Essentials of Marketing Research Kumar, Aaker, Day

16. Limitations of Consumer Panels Possibility of • Selection Bias • Mortality Effect • e.g. move, illness, refusal • Testing Effects • first month records are discarded Essentials of Marketing Research Kumar, Aaker, Day

17. 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 data reveal actual consumer behavior Essentials of Marketing Research Kumar, Aaker, Day

18. Single-source Systems • Combine scanner data, panels, and TV-measurement • Usually set up in self-contained communities 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 Essentials of Marketing Research Kumar, Aaker, Day

19. Single-source Systems • Experiment like setting • Control of • advertising exposure in TV, newspapers, … • couponing • buying behavior Essentials of Marketing Research Kumar, Aaker, Day

20. Advantages of Single Source Systems • Availability of exclusive pre-test records • Immediate availability of test results • Ability to compare households prior to and after exposure to the message • Ability to control settings Essentials of Marketing Research Kumar, Aaker, Day

21. Media Related Standardized Sources • Nielsen Media Research (previously Nielsen Television Index) • A system for estimating national TV audiences • Arbitron Diary Panel • Both regional and national radio and TV panels • Starch Scores • Print media • Multi Media and Web Services Essentials of Marketing Research Kumar, Aaker, Day

22. 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 cable networks. • Used by more than100 advertising agencies and 45 advertisers. Essentials of Marketing Research Kumar, Aaker, Day

23. Source: New York Times 1997 Essentials of Marketing Research Kumar, Aaker, Day

24. Roper Starch (http://www.roper.com) • Starch Ad Readership Reports measure ad readership 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 product category over the past two years. • Interviews are conducted in person • Standard demographic breakdowns Essentials of Marketing Research Kumar, Aaker, Day

25. Expert Systems Based on Single-source Services • Since users of scanner data are flooded with massive amounts of data, expert systems are used to help the users understand the data quickly • Examples of Expert Systems Are • Apollo Space Management Software • Cover Story • Sales Partner • Promotion Stimulator • Spotlight Essentials of Marketing Research Kumar, Aaker, Day

26. Marketing Decision Support Systems • A typical marketing manager receives some or all of following 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 from diverse sources into single database Essentials of Marketing Research Kumar, Aaker, Day

27. Applications of Standardized Sources of Data • Measuring product sales and market share: • Panels, audits, scanner data, internal records • Measuring advertisement exposure and effectiveness: • Starch Scores, Nielsen Media Research, Arbitron Essentials of Marketing Research Kumar, Aaker, Day

28. Applications of Standardized Sources of Data • Measuring promotion effectiveness: • scanner data, panels • Estimation and evaluation of models • scanner data, starch scores, panels, internal records Essentials of Marketing Research Kumar, Aaker, Day