Essentials of Marketing Research                                                 Kumar, Aaker, Day
Essentials of MarketingResearch
Kumar, Aaker, DayKumar, Aaker, Day
Instructor’s Presentation SlidesInstructor’s Presentation Slides
Essentials of Marketing Research                                                 Kumar, Aaker, Day
Chapter Six
Standardized Sources ofMarketing DataStandardized Sources ofMarketing Data
Essentials of Marketing Research                                                 Kumar, Aaker, Day
Standardized Sources
Syndicated sources of marketing data:
FStore audits
Fwarehouse withdrawal services
Fconsumer panels
Fscanner based systems and single sourcedata
Essentials of Marketing Research                                                 Kumar, Aaker, Day
Motivation for usingstandardized data
F“Pipeline Effect” in distribution channels
FUnknown competitor actions
FStore behavior unknown (i.e. promotionexecution)
Essentials of Marketing Research                                                 Kumar, Aaker, Day
Example for packaged goodssales: margarine brand
Essentials of Marketing Research                                                 Kumar, Aaker, Day
Motivation for usingstandardized data
Factory Sales Peak
Retail Sales Peak
Essentials of Marketing Research                                                 Kumar, Aaker, Day
Growth of Standardized Sources
Factors
FMultitude of information users havingcommon information needs
FWhen cost of satisfying individual user'sneed is prohibitive
FThe increasing use of scanner systems at thecheck out points
Essentials of Marketing Research                                                 Kumar, Aaker, Day
Retail Store Audits
FPersonally record store inventories andmovements for any brand and size
FBasic measurement tool in lieu of scanningdata
FCommon categories: Health and Beauty,Durable, Confectionery, Liquor,
FExample: Nielsen Retail Index
Essentials of Marketing Research                                                 Kumar, Aaker, Day
Retail Store Audits
Beginning Inventory
+Deliveries
-Ending Inventory
=Sales for Period
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Essentials of Marketing Research                                                 Kumar, Aaker, Day
Nielsen Retail Index
FBiggest research company in the world
FTheir auditing services cover four groups
uGrocery products
uDrugs
uMass merchandisers
uAlcoholic beverages
Essentials of Marketing Research                                                 Kumar, Aaker, Day
Audits and Surveys:National Market Audit
FBimonthly audit focussed on productsirrespective of the outlet carrying theproduct
Essentials of Marketing Research                                                 Kumar, Aaker, Day
Consumer Purchase Panels
Audits and scanner data do not cover:
FWho buys (consumer demographics)
FFrequency of purchases
FSwitching behavior between brands andstores
FLevel of deal sensitivity
Essentials of Marketing Research                                                 Kumar, Aaker, Day
What is a “Panel”?
FRepresentative sampleof households
FRecords all purchasesmade over time (cross-section/time-series)
FRecords all coupons used
FReceive incentive for co-operation
FACNielsen’s Consumer Panel: “Homescan”Consists of 40,000 demographically balanced U.S.households that use hand-held scanners to recordevery bar-coded item purchased.
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Essentials of Marketing Research                                                 Kumar, Aaker, Day
Consumer Purchase Panels
To Cover the Gap Between Warehouse WithdrawalAudits and Actual Purchases Following Methods CanBe Used
FHome Audit Approach
uPanel member agrees to permit an auditor to check thehousehold stocks of certain product categories at regularintervals
FMail Diary Method
uPanel member records the details of each purchase andreturns the diary by mail at regular intervals
Essentials of Marketing Research                                                 Kumar, Aaker, Day
Advantages of Panels
Can Provide Information On
uAggregate Sales Activity
uBrand Shares
uShifts in Buyer Characteristics
uShifts in Retail Outlets
Essentials of Marketing Research                                                 Kumar, Aaker, Day
Limitations of Consumer Panels
Possibility of
FSelection Bias
FMortality Effect
–e.g. move, illness, refusal
FTesting Effects
–first month records are discarded
Essentials of Marketing Research                                                 Kumar, Aaker, Day
Scanner Data
FHave revolutionized grocery (and retail ) industry
FGenerates huge amounts of data
FMain suppliers: IRI, Nielsen
FKraft Food spends more than $30 million per yearon scanner data
FIn comparison to surveyresearch: scanner datareveal actual consumerbehavior
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Essentials of Marketing Research                                                 Kumar, Aaker, Day
Single-source Systems
FCombine scanner data, panels, and TV-measurement
FUsually set up in self-containedcommunities with their own newspapersand cable TV and are roughly representativeof the demographics of the country
FA test panel of community households isrecruited and monitored
FExample: BehaviorScan by IRI
Essentials of Marketing Research                                                 Kumar, Aaker, Day
Single-source Systems
FExperiment like setting
FControl of
–advertising exposure in TV, newspapers, …
–couponing
–buying behavior
Essentials of Marketing Research                                                 Kumar, Aaker, Day
Advantages of Single SourceSystems
FAvailability of exclusive pre-test records
FImmediate availability of test results
FAbility to compare households prior to andafter exposure to the message
FAbility to control settings
Essentials of Marketing Research                                                 Kumar, Aaker, Day
Media Related Standardized Sources
FNielsen Media Research (previouslyNielsen Television Index)
uA system for estimating national TV audiences
FArbitron Diary Panel
uBoth regional and national radio and TV panels
FStarch Scores
uPrint media
FMulti Media and Web Services
Essentials of Marketing Research                                                 Kumar, Aaker, Day
Nielsen Media Research(http://www.nielsenmedia.com)
FNielsen Media Research (New York)
–National People Meter Service: audienceestimates for all national programming sources,including six broadcast networks, 41 cablenetworks.
–Used by more than100 advertising agenciesand 45 advertisers.
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Essentials of Marketing Research                                                 Kumar, Aaker, Day
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Source:
New York Times
1997
Essentials of Marketing Research                                                 Kumar, Aaker, Day
Roper Starch (http://www.roper.com)
FStarch Ad Readership Reports measure adreadership within specific publications
FCovers over 500 magazine issues and about25,000 ads each year.
FRaw readership scores (the percent of readers whosaw the ad and read the copy)
FAd is ranked against other ads in the issue.
FAd is ranked against other ads in its productcategory over the past two years.
FInterviews are conducted in person
FStandard demographic breakdowns
Essentials of Marketing Research                                                 Kumar, Aaker, Day
Expert Systems Based on Single-source Services
FSince users of scanner data are flooded withmassive amounts of data, expert systems areused to help the users understand the dataquickly
FExamples of Expert Systems Are
uApollo Space Management Software
uCover Story
uSales Partner
uPromotion Stimulator
uSpotlight
Essentials of Marketing Research                                                 Kumar, Aaker, Day
Marketing Decision Support Systems
FA typical marketing manager receives some or all offollowing data
uFactory shipments or order
uSyndicated aggregate (industry) data services
uSales reports from sales personnel
uConsumer panel data
uScanner data
uDemographic data
uInternal cost and budget data
Purpose of MDSS is to combine marketing data fromdiverse sources into single database
Essentials of Marketing Research                                                 Kumar, Aaker, Day
Applications of StandardizedSources of Data
FMeasuring product sales and market share:
–Panels, audits, scanner data, internal records
FMeasuring advertisement exposure andeffectiveness:
–Starch Scores, Nielsen Media Research,Arbitron
Essentials of Marketing Research                                                 Kumar, Aaker, Day
Applications of Standardized Sources of Data
Measuring promotion effectiveness:
scanner data, panels
Estimation and evaluation of models
scanner data, starch scores, panels, internal records