Standardized Sources of Marketing Data

1

Marketing Research

Aaker, Kumar, Day

Ninth Edition

Instructor’s Presentation Slides

http://www.drvkumar.com/mr9/

Marketing Research 9th Edition Aaker, Kumar, Day

http://www.drvkumar.com/mr9/2

Chapter Six

Advertisingdata

Sales data

Surveys

Marketingdata

Standardized Sources of Marketing Data



Growth of Standardized Sources

Contributing 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



Audits and Surveys: National Market Audit

Bi-monthly audit focused on products irrespective of the

type of outlet carrying the product



Retail Store Audits

Every 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 visit

Beginning inventory + deliveries – ending inventory = sales



Nielsen Retail Index

Nielsen’s auditing services cover four reporting groups:

Grocery products

Drugs

Other merchandise

Alcoholic beverages



Contents of a Nielsen Store Audit Report

Sales

Distribution

Selling prices

Retailer support

Media advertising

Special analyses



Consumer Purchase Panels

To 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 intervals

Mail Diary Method

Panel member records the details of each purchase and returns the

diary by mail at regular intervals



Advantages of Consumer Panels

Can provide information on aggregate sales activity, brand

shares, shifts in buyer characteristics and types of retail outlets

Knowledge of sequence of purchases makes it possible to

analyze:

Heavy buyers and their characteristics

Brand-switching rates and the extent of loyal buying

Cumulative market penetration and repeat purchase rates for new

products



Limitations of Consumer Panels

Selection Bias

Mortality Effect

Testing Effects



Scanner Services

Benefits of Scanner-Based Audit Services:

High degree of accuracy

Time saving

Ability to study very short time periods of sales activity



Scanner Services (cont.)

Weekly results from scanner service



Weekly results from scanner service

Scanner Services (cont.)



Applying Scanner Data



RFID

Radio 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

The ability to change the information on the tag

The ability to transmit all the information on the chip to a

scanner without clear line of sight



Single-source Systems

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 for recording exposure to programming and

specific commercials

Each member is provided an identification card for

presenting at scanner-equipped stores



Process of Scanner Data Collection by IRI

IRI



Advantages and Disadvantages of Single Source Systems

Advantages

Availability of extensive pre-test records

Immediate availability of test results

Ability to compare purchases of households prior to and after

exposure to the message

Ability to control settings

Disadvantages

Can track purchases only at stores equipped with scanners

No information on whether viewers actually watch or just leave

the TV on

Chance of biased results



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:

Information Resources, Inc.

Apollo Space Management Software

Cover Story

Sales Partner

A. C. Nielsen Promotion Stimulator

Spotlight

Sales Advisor



Media Related Standardized Sources

Nielsen Television Index (NTI)

National T.V. audiences

Arbitron Diary Panel

Both regional and national radio and TV panels

Starch Scores

Print media

Multi Media Services

Magazine, TV, newspaper, radio (Simmons Service)



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 telecast

Share – Percent of households that have a TV set that is tuned to

a specific program at a specific time

Cost of a commercial

Number of target audience deliveredCPM =

A Nielsen viewing diary



Media-related Standardized Sources (cont.)

Mechanics No wire connections Wired directly to TV and VCR tuners

Research Methods

Data retrieved by reading UTCP codes

Telephone connections used to return data

Method of Data Collection

User logs in/out before and after watching TV

User punches numerical code into data-entry device

Reputation Media measurement business serving the radio industry

Foremost in TV ratings

SMART PEOPLE METER



Applications of Standardized Data Sources

Measuring Ad Exposure and Effectiveness

1. Starch scores

2. NTI

3. Arbitron

4. Multimedia services

Measuring Promotion Effectiveness

1. Scanner data

2. Diary Panels

Estimation and Evaluation of Models

1. Scanner data

2. Starch scores

3. Diary panels

4. Internal records

Measuring Product Sales and Market Share

1. Diary panels

2. Retail audits

3. Scanner data

4. Internal records

5. NAICS

Documents

Standardized Sources of Marketing Data