Standardized Sources of Marketing Data

Marketing ResearchAaker, Kumar, Leone and Day Twelfth EditionInstructor’s Presentation SlidesChapter Six2Standardized Sources of Marketing DataAdvertisingdataSales dataSurveysMarketingdataMarketing Research 12th Edition Growth of Standardized SourcesMultitude of information users having common information needsWhen cost of satisfying individual user's need is prohibitiveThe increasing use of scanner systems at the check out points3Contributing Factors:Marketing Research 12th Edition Audits and Surveys: National Market AuditBi-monthly audit focused on products irrespective of the type of outlet carrying the product4Retail Store AuditsEvery two months a team of auditors from a research firm visits a sample of stores to count the inventory on hand and record deliveries to the store since the last visitBeginning inventory DeliveriesClosing inventory SalesMarketing Research 12th Edition Nielsen Retail IndexNielsen’s auditing services cover four reporting groups:Grocery productsDrugsOther merchandiseAlcoholic beverages5Contents of a Nielsen Store Audit ReportSalesDistributionSelling pricesRetailer supportMedia advertisingSpecial analysesMarketing Research 12th Edition Consumer Purchase PanelsTo cover the gap between store audits/warehouse withdrawal services and actual purchases, two methods of data collection are used: Home Audit Approach Panel member agrees to permit an auditor to check the household stocks of certain product categories at regular intervalsMail Diary Method Panel member records the details of each purchase and returns the diary by mail at regular intervals6Marketing Research 12th Edition Advantages & Limitations of Consumer Panels7AdvantagesCan provide information on aggregate sales activity, brand shares, shifts in buyer characteristics and types of retail outletsKnowledge of sequence of purchases makes it possible to analyze:Heavy buyers and their characteristicsBrand-switching rates and the extent of loyal buyingCumulative market penetration and repeat purchase rates for new productsLimitationsSelection BiasMortality EffectTesting EffectsMarketing Research 12th Edition Scanner ServicesBenefits of Scanner-Based Audit Services:8High degree of accuracyTime savingAbility to study very short time periods of sales activityMarketing Research 12th Edition Scanner Services (cont.)9Weekly results from scanner serviceWeekly results from scanner serviceApplying scanner dataMarketing Research 12th Edition RFIDRadio Frequency Identification Technology may replace the bar codes. Utilizes a tiny silicon chip to store information; a small transmitter then sends this information to a scanner.Advantages over UPC: The ability to store more information than an 11-digit bar codeThe ability to change the information on the tagThe ability to transmit all the information on the chip to a scanner without clear line of sight10Marketing Research 12th Edition Single-source SystemsUsually set up in self-contained communities with their own newspapers and cable TV and are roughly representative of the demographics of the countryA test panel of community households is recruited and monitored for recording exposure to programming and specific commercials Each member is provided an identification card for presenting at scanner-equipped stores11Marketing Research 12th Edition Process of Scanner Data Collection by IRI12Marketing Research 12th Edition The process of scanner data collection by IRI.SOURCE: Information Resources, Inc.Advantages and Disadvantages of Single Source SystemsAdvantages Availability of extensive pre-test recordsImmediate availability of test resultsAbility to compare purchases of households prior to and after exposure to the messageDisadvantagesCan track purchases only at stores equipped with scannersNo information on whether viewers actually watch or just leave the TV onChance of biased resultsNationwide generalization questionnableQuality of the findings13Marketing Research 12th Edition Expert Systems Based on Single-source ServicesSince users of scanner data are flooded with massive amounts of data, expert systems are used to help the users understand the data quicklyExamples of Expert Systems Are:Aldata. Apollo Space Management SoftwareNielsenPromotion StimulatorSpotlightSales Advisor14Marketing Research 12th Edition Media Related Standardized SourcesNielsen Television Index (NTI)National T.V. audiencesArbitron Diary PanelBoth regional and national radio and TV panelsStarch ScoresPrint mediaMulti Media ServicesMagazine, TV, newspaper, radio (Simmons Service)15Marketing Research 12th Edition Nielsen Television Index (NTI)Rating – Percent of all households that have at least one TV set turned to a program for at least 6 of every 15 minutes that the program is telecastShare – Percent of households that have a TV set that is tuned to a specific program at a specific timeCost efficiency represents a television program’s ability to deliver the largest target audience at the smallest cost. A cost per thousand (CPM) calculation is computed as 16Marketing Research 12th Edition Applications of Standardized Data Sources1717Measuring Promotion EffectivenessScanner DataDiary PanelsMeasuring Ad Exposure & EffectivenessStarch ScoresNTIArbitronMultimedia ServicesMeasuring Product Sales & Market ShareDiary PanelsRetail AuditsScanner DataInternal RecordsNAICSEstimation & Evaluation of ModelsScanner DataStarch ScoresDiary PanelsInternal RecordsMarketing Research 12th Edition 18End of Chapter Six