2. BHO1171 – Session 4 Slide 2
Why marketers need metrics
Are metrics meaningful?
Marketing managers need measurement to
assess and guide their marketing actions.
Marketing metrics let managers know how
the brand and business is performing; and
marketing metrics can provide diagnostic
information on how to improve things.
4. BHO1171 – Session 4 Slide 4
A system of marketing metrics
Why measure market-based assets?
To understand and correctly evaluate the longer-
term effects of marketing activity.
They are also needed to evaluate brand
performance
• Because some marketing activity may potentially erode
these assets, and so erode future sales, while still
generating acceptable sales and/or profits today.
5. BHO1171 – Session 4 Slide 5
A system of marketing metrics
Marketing metrics describe:
• Brands’ activities in the market; for example new
product launches, price increases, changes in pack size,
and so on
• How the market is reacting to these changes; for
example how buyers are buying, at what prices, and so
on
• How brand’s market-based assets are holding up
Marketing Metrics give you a baseline
Which can be used to make checks and balances
10. BHO1171 – Session 4 Slide 10
Behavioural metrics
Sales
How many units did you sell?
Market share
Proportion of market using your brand
Market penetration
Proportion of products sold in category
Purchase frequency
How often do consumers buy your brand?
Share of category requirements (SCR)
Of an average consumer’s purchases in a time period,
what proportion were for your brand?
12. BHO1171 – Session 4 Slide 12
Behavioural metrics
Solely (100%) loyal customers
Defection rate
Customer complaints and recommendations
Some of this data can be gathered using
loyalty programmes such as
Flybuys/Airmiles/Nectar
16. BHO1171 – Session 4 Slide 16
Customer profile metrics
Customer profile metrics describe customers
Used to help marketers identify and reach all the
different buyers in a brand’s category
They include metrics such as a customer’s
gender, age or income.
Marketers need to understand
Who their different buyers are
Where they live
What media they consume
How, when and where they shop.
17. BHO1171 – Session 4 Slide 17
Marketing activity metrics
It’s important to measure what marketing
activities the company is actually doing.
Necessary for the firm to keep track of its
marketing investment.
18. BHO1171 – Session 4 Slide 18
Physical availability metrics
Making a brand as easy to notice and buy as
possible
Physical availability allows a consumer to buy and
consume a product or service, so physical
availability metrics include:
• Number of distribution points
• House of opening
• Geographical coverage of distribution points
• Geographical coverage of delivery points
• Number of display points in store
• Number of shelves devoted to the brand.
19. BHO1171 – Session 4 Slide 19
Marketing benchmarks
Need to use other brands as a benchmark for
your brand’s performance on marketing
metrics
But don’t forget to account for:
The Duplication of Purchase (DoP) Law
The Double Jeopardy Law
21. BHO1171 – Session 4 Slide 21
The central role of market research
Market research is used to understand
What consumers know and think,
How they behave
How a company’s efforts are being received
Opportunities for growth
Market research allows us to:
Identify marketing opportunities and problems
Evaluate marketing actions
Monitor marketing activities
Monitor market performance
23. BHO1171 – Session 4 Slide 23
Commissioning research—the brief
Research objectives describe what the research
will achieve in broad terms.
Examples could include:
• Determine the market potential for a new car-sharing
service in Kuwait.
• Benchmark the level of customer satisfaction among our
Malaysian customers.
• Identify how our brands are perceived in relation to our
competitors.
A study has one overarching research objective and
two or three smaller objectives or questions.
Good research objectives are linked to marketing
objectives
25. BHO1171 – Session 4 Slide 25
Commissioning research—the brief
Research providers develop a research
proposal in response to the brief
How they would conduct the research
the methods they would employ
the costs involved
A typical proposal discusses what sort of raw
data is required and provides a few different
options for conducting the research.
27. BHO1171 – Session 4 Slide 27
Six stages of the research process
1 • Identifying the research objectives
2 • Determining information required
3 • Research design
4 • Fieldwork
5 • Data preparation and analysis
6 • Report and communicate results
28. BHO1171 – Session 4 Slide 28
Six stages of the research process
1 • Identifying the research objectives
2 • Determining information required
3 • Research design
4 • Fieldwork
5 • Data preparation and analysis
6 • Report and communicate results
29. BHO1171 – Session 4 Slide 29
Identifying the Research Objectives
Most important but difficult
If you define it wrong, you get the answer wrong!
Define problems, not symptoms
Eg. How do we stop customers defecting vs why
do customers defect vs how many customers are
defecting
30. BHO1171 – Session 4 Slide 30
Develop a plan
How will you answer the question?
I.e., what methodology is appropriate?
Who will do the work?
Internal versus external consultants
Should you use a global Agency?
• TNS, ACNeilsen etc
31. BHO1171 – Session 4 Slide 31
Secondary data
Data collected for some purpose other than the
current research problem at hand. It may be past
research projects, company records, industry
reports or any other information that can be
used to assist with the current research problem.
It comes from two key sources—internal and
external data.
• Internal—past research projects, sales figures, marketing
intelligence information.
• External—statistics, academic and industry publications
32. BHO1171 – Session 4 Slide 32
Knowledge of buyer behaviour
It’s important to have knowledge of patterns
that can be seen in different types of data
And understand the marketing science laws that
apply to them.
This knowledge provides a framework
To both analyse and interpret your data
Will provide potential explanations for the
patterns you may see.
33. BHO1171 – Session 4 Slide 33
Six stages of the research process
1 • Identifying the research objectives
2 • Determining information required
3 • Research design
4 • Fieldwork
5 • Data preparation and analysis
6 • Report and communicate results
34. BHO1171 – Session 4 Slide 34
Ways to get information
Exploratory
Informs real nature of the problem, suggests possible
solutions / new ideas
Descriptive
Seeks to quantify demand
Causal
Tests a cause-and-effect relationship
A tongue in cheek look at how marketing
research might help new products - Shreddies
35. BHO1171 – Session 4 Slide 35
Six stages of the research process
1 • Identifying the research objectives
2 • Determining information required
3 • Research design
4 • Fieldwork
5 • Data preparation and analysis
6 • Report and communicate results
36. BHO1171 – Session 4 Slide 36
Golden Paradigms
Quantitative research deals with numbers and
answers how many, how much or how often
Qualitative research deals with
feelings, attitudes and behaviours
37. BHO1171 – Session 4 Slide 37
Qualitative and quantitative Methods
Qualitative Data
Provides in-depth, rich-in-
detail information about
the motives of respondents
and their thoughts and
feelings.
It tends to be focused on
identifying what issues
exist, rather than estimating
how much of a behaviour
exists.
Quantitative Data
Provides specific numerical
information from a
representative, usually
large, sample of
respondents.
It is structured, usually as a
pre-written questionnaire
with checklists or response
scales, so it can be analysed
using statistical techniques.
40. BHO1171 – Session 4 Slide 40
e.g. Qualitative - Observation
Observation is as you would expect
A market research literally observes behavior
E.g., Lund University observation study of
supermarket shopping behavior
42. BHO1171 – Session 4 Slide 42
e.g. Quantitative - Surveys
Most commonly done:
Online
Computer Assisted Telephone Interviewing (CATI)
Face to face
• E.g. Roy Morgan Research
43. BHO1171 – Session 4 Slide 43
Six stages of the research process
1 • Identifying the research objectives
2 • Determining information required
3 • Research design
4 • Fieldwork
5 • Data preparation and analysis
6 • Report and communicate results
44. BHO1171 – Session 4 Slide 44
Populations and samples
A population is the group of people to be studied.
Eg. Consumers planning to buy a new car in next 3 months
A sample is the group of respondents you research
from the population.
Populatio
n
Sample
47. BHO1171 – Session 4 Slide 47
Six stages of the research process
1 • Identifying the research objectives
2 • Determining information required
3 • Research design
4 • Fieldwork
5 • Data preparation and analysis
6 • Report and communicate results
48. BHO1171 – Session 4 Slide 48
What Affects the Quality of Research?
Reliability
Extent to which research
techniques are free from
error
Validity
Representativeness
Extent to which research
measures what it was
intended to measure
Extent to which research
participants are similar to
the larger group
49. BHO1171 – Session 4 Slide 49
Data Analysis & Interpretation
Great care required
Don’t over interpret
Managers will often pressure for a “yes” or “no”
answer
Can use quantitative and qualitative packages
SPSS vs QSR
50. BHO1171 – Session 4 Slide 50
Analysis methods
Multivariate analysis
Complex
Not always necessary
Limitations of statistical significance tests
Alternative is to do descriptive analysis
Identify patterns in the data
Significant sameness and many sets of data
51. BHO1171 – Session 4 Slide 51
Six stages of the research process
1 • Identifying the research objectives
2 • Determining information required
3 • Research design
4 • Fieldwork
5 • Data preparation and analysis
6 • Report and communicate results
53. BHO1171 – Session 4 Slide 53
Presenting Data
Round to whole numbers
no decimal places.
Sort tables by meaningful numbers
In order of magnitude rather than alphabetical order.
Use averages or medians to highlight trends
Indicate totals where appropriate
Especially where numbers add up to 100 per cent.
Use a story line
One sentence that summaries what the reader should
take away from the table or graph.
When presenting this table you may wish to ask students what this means. It is quit likely that Apple has increased its customer satisfaction score simply because it increased market share dramatically, making it more salient to customers.
An example of a marketing metric relating to the bottom point is top of mind recall or recall of brand attributes. Sales may be artificially kept high with sales, so superficially at least all may look well. However, if the brand is not being thought of (as in brand equity is declining), then long term there could be major issues.
