Course Introduction,

Backward Market Research, Market

Research Ethics

Market Intelligence
Julie Edell Britton
Session 1
August 7, 2009

Todays Agenda

Course Overview: The Big Picture

Some course details
Responsibilities & Ethics
Introduction to Backward Market Research

Who am I?
Education: Ph.D., M.S., Graduate School of Industrial
Administration, Carnegie-Mellon University; B.A. University
of Nebraska in math
Teaching: Fuqua in 1980, CRM, Mkt Intelligence,
Consumer Behavior, Statistics, Mkting Mgmt,
Research: Consumer cognitive and emotional response to
marketing actions
Favorite Sports: Duke Basketball, Nebraska Football
(American), Soccer
Family: Married with 6 children, aged 20 29; 3 boys, 3
girls, 2 grandchildren and 2 cats

Who are You?

Name
City
Company
Job Function
Family
What you do for fun

Todays Agenda

Course Overview: The Big Picture

Some course details
Responsibilities & Ethics
Introduction to Backward Market Research

John Doerr - PC Guru

There are basically four risks we have to confront in
each deal. There is technical risk: Can we split the
atom? There is people risk: Will the key players on
the team stay together? There is financial risk: Can
we keep the company well financed? And there is
market risk: Can we get the dogs to eat the dog
food? The most dangerous of these risks is market
risk. Removing market risk is expensive were
risk takers but we will take a technology risk over a
market risk any day of the week.
(Perkins & Perkins, 1999, The Internet Bubble, p. 74)

Market Intelligence: 3 Skills

Backward market research:
Imagine the end of the process
Identify analysis to support choice among
alternatives and determine what information /
variables would be needed for the analysis
Get the data needed for the analysis
Analyze data & make recommendation

Getting data & judging its quality

Tools for classic marketing problems

3 Key Skills
Backward market research (1,2)
Getting data, judging its quality & analyzing (2-6)
Analysis frameworks for classic marketing
problems

Conjoint analysis for new product forecasting (7)

Segmentation (8)
Promotion Analysis (9)
Simulated Test Markets (9,10)

This course is designed

for users of market intelligence in consulting,
marketing management, entrepreneurship,
finance
help you avoid drowning in data
help you become a more sophisticated user by
assuming role of research provider and by
providing practice as evaluator of research
improve your ability to use imperfect information
to make decisions

decisions relating to
Segmentation: choosing a base, analysis
New products:
Beginning with exploratory (e.g., focus groups)
Scientific methods for new product concept
screening: surveys, conjoint analysis,
simulated test markets

Pricing
Promotion

Todays Agenda

Course Overview: The Big Picture

Some course details
Responsibilities & Ethics
Introduction to Backward Market Research
Set up Southwestern Conquistador Beer
case

Class Tools
Readings Course Pack
Cases Almost every class
Text Essentials of Marketing
Research, 2nd Edition,
Kumar, Aaker and Day (KAD)
Data Analysis SPSS Statistics 17.0

TA for Market Intelligence

Stephen Spiller
(SPSS Help)

Assignments
Submit using online submission tool on the
platform.
Follow submission deadlines on the platform.
Major Team Cases: WEMBA A, WEMBA C
Daily cases:
Team cases: Southwestern Conquistador Beer
and WEMBA B
Individual or Team (or Team Subset) - all others

Grading
Class participation (10%)
Use your tent card daily.
Be in class and prepared every day
I will cold-call.
Email me if you will be absent or unable to prepare for a class
I will avoid calling on you one day during the term.

Minor cases (15%)

Southwestern Conquistador Beer with your team, National Insurance,
Colgate Oral Care, WEMBA B with your team, IBM Global Mobile
Computing, and Nestle Refrigerated Foods: Contadina Pizza and Pasta

Major team cases (40%) WEMBA A and WEMBA C

Midterm exam (35%) To be taken between Sessions 6 and 7 by 9/16
Fuqua Grade Distribution for electives:
no more than 30% SP, 45% HP, and at least 25% P, LP, and F.

Honor Code Violations

Lying: Lying includes, but is not limited to, communicating
untruths in order to gain an unfair academic advantage.
Cheating: Cheating includes, but is not limited to, using
unauthorized materials to complete an assignment; copying
the work of another person; unauthorized providing of
material or information (e.g., proprietary course information)
to another person; using the work of another without giving
proper credit (e.g., plagiarism); and working on course
material outside of the time constraints imposed by the
instructor.

Honor Code Violations

Stealing: Stealing includes, but is not limited to,
taking the property of another member of the Duke
Community without permission, defacing or
vandalizing the property of Duke University.
Failure to Report: Any party having knowledge of
an Honor Code violation without reporting it will be
considered an accessory to the violation and
subject to penalty if found guilty.

Honor Code Applied to

Marketing Intelligence
Graded exams, cases, assignments
Dont consult old exams and cases or
solutions or people who have done them
Put your name on cases submitted by your
team only if you contributed materially to
the solution

Class Schedule
Sat. 8/8 - Problem definition & information needs, Secondary data
Hypothesis formulation & elementary data analysis and reporting.
Read: KAD Ch 4, 5, 12 (pp. 361-366) and Whats Behind the Numbers?
Case Discussion Southwestern Conquistador Beer
Fri. 8/21 - Database hypothesis testing exercise, Identifying customer
needs, SPSS Tutorial
Read: KAD pp. 384-390, The Elaboration Model. (pp. 402-403), Review
SPSS online Tutorial and Help Session handout.
Sat. 8/22 - Intro to survey research, Measurement
Read: KAD pp. 178-191; 197-202; 209-229; 247-266; and Comparative
Advertising: Measurement Scales and Data Analysis
Case Discussion - National Insurance
Fri. 9/4 Focus Groups, Questionnaire design, Survey sampling
Read: KAD pp. 283-290; 306-316; Conducting the Focus Group, and
Thoughts on Qualitative Research
Case Discussion Colgate Oral Care Focus Group

Class Schedule
Sat. 9/5 Causal Research and Experiments
Read: KAD pp. 97-101
Case Discussions Milan Foods SPSS Sampling Assignment (no
slides) and Wall Street Journal/ Harris Interactive Survey of MBA
Program Recruiters (no slides)
Fri. 9/25 New Product Concept Screening and Conjoint Analysis
Read: Factorial Designs, pp. 357-359 and Conjoint Analysis: A
Managers Guide
Case Discussion WEMBA B and Entitle Direct Title Insurance (no
slides)
Sat 9/26 Market Segmentation
Read: Segmenting Markets including the appendix
Case discussions Cola Exercise and IBM Mobile Computing

Class Schedule
Fri. 10/9 Regression analysis for promotion analysis, Debrief WEMBA
C Case, Simulated Test Markets
Read: Regression Analysis Applied to Sales Promotion, and Its
Better to Fly a Simulator Than Crash the Real Thing
Sat 10/10 Course Wrap-Up
Case discussions Nestle Refrigerated Foods: Contadina Pasta
and Pizza (A)
Other Important Dates
9/3 8 pm Colgate Case Slides Due
9/16 8 pm Mid-Term Exam Due
9/20 8 pm WEMBA A Team Case Write-up Due
9/24 8 pm WEMBA B Team Case Slides Due
9/25 10 pm IBM Global Mobile Computing Case Slides Due
10/8 10 pm WEMBA C Team Case Write-up Due
10/10 8 am Nestle: Contadina Pasta Case Slides Due

Questions

Todays Agenda

Course Overview: The Big Picture

Some course details
Responsibilities & Ethics
Introduction to Backward Market Research

Responsibilities
3 Parties in the Research Process:
Client (User, Sponsor)
Supplier (Market Research Firm, Provider)
Respondent (Customer, Subject)

Respondents Rights (for primary research)

Privacy (informed consent)

Safety
Be informed of research purpose
Learn of research results

Clients Responsibilities
To respondents:
avoid using respondent list for sales leads
avoid deception (no sugging or frugging)

To suppliers
Avoid dishonesty (free-riding)
Provide accurate inputs to research

To business partners, investors, colleagues:

Decision research, not advocacy research
Non-zero value of information

Nonzero Value of Information

Many managers use
Market Research the
way a drunk uses a
light pole more for
support than
illumination

Decision Research =
Nonzero Value of Information

Suppliers Responsibilities
Client confidentiality
Freedom from conflict of interest
Proper execution of research
Technically sound
Limitations disclosed
Meet time and $ budget agreed upon

Approaches to Ethics
Deontological versus Consequentialist
You are the market research director of a
pharmaceutical company, and the
executive director suggests to you that
company interviewers telephone
physicians under the name of a fictitious
market research agency. The purpose of
the survey is to help assess the perceived
quality of the companys products.

Ethical Dilemma 3
John Rider is the Senior VP at ESPN The Magazine.
His background is in publishing, running Spin and
Rolling Stone magazines, each of which is targeted
at young male readers. He describes the process of
designing and launching ESPN The Magazine. He
chose age as a strategic basis for segmentation and
chose to design a sports magazine for 18-34 year
old men. The key to his strategy is the fact that he is
actually selling to two markets readers of sports
magazines and advertisers. Most of his revenue is
to come from the latter. Advertisers will pay a
premium to have a highly targeted vehicle to reach

Ethical Dilemma 3 (Cont.)

the young male audience. For this all-important
advertiser market, ESPN The Magazine is more
attractive if it loses older customers and builds
circulation among young men. The other mix
element that these advertisers are sensitive to is
respectability. Sports magazines are
respectable. The alternative, highly targeted
vehicles for reaching young men tend to be notso-respectable music and sex magazines. Thus,
ESPN The Magazine would deliver the benefits
these advertisers sought.

Ethical Dilemma 3 (cont.)

He is convinced of the ESPN The Magazine concept,
but his bosses at ESPN are skeptical. Rider reports
that he used relatively little research in launching his
magazine. He relied on syndicated research showing
the aging characteristics of the Sports Illustrated
franchise, he ran focus groups, and he did very limited
concept testing in which he showed the mock-up
magazine to target readers. He confides that this
limited research was more for his bosses consumption
than for his own enlightenment. Sometimes you do a
research study to convince your bosses that you are
right.

Ethical Dilemma 1
Jim Horsky, a marketing manager at Bell
Atlantic wanted to develop a logical
portfolio of access solutions for a Custom
Select offering: The manager and internal
research supplier sought to build a model
that allows Bell Atlantic to simulate revenue
and profit streams for all permutations of
price and access combinations being
considered, thus enabling the selection of
the profit-maximizing solution. The process

Ethical Dilemma 1 (cont.)

was to identify 5 research suppliers and ask
them to bid on the project. Typically, Bell
Atlantic would ask 2-3 suppliers to bid, but
Horsky had several new managers on board
and he wanted to train them to develop their
ability to manage the research process. The
suppliers each developed bids and research
proposals, all of which were presented to
Bell Atlantic managers back-to-back in a
single grueling day.

Ethical Dilemma 2
Bell Atlantic develops long term
relationships with research suppliers. A key
research supplier drops Bell Atlantic and
takes a large account with Sprint.

Conclusions
Understand the ethical responsibilities of the client (thats you!)
and recognize behaviors that might amount to a failure to
honor those responsibilities.
Understand what behaviors are not unethical, though they
seem on the surface to clash with an ethical responsibility.
Generate creative solutions to ethical dilemmas that serve
your ethical principles while still doing what seems to be in the
best interest of ones firm.
Key is often whether the other parties are informed of facts that would cause
them to change their investment in activities with you, the client.

Unethical behavior can produce negative consequences for

the client and the firm in the long run.

Recap
This course is for users of market research
Lots of moving parts, but platform will help
you keep track of things
Responsibilities & Ethics
Recognize affected parties, Seek 3rd alternative
when apparent ethical conflicts arise

Next time: SWC Beer, Backward Market

Research, Secondary data, Hypotheses
formulation