Page 144 - Marketing Management

CONDUCTING MARKETING RESEARCH | CHAPTER 4 121

accounting packages didn’t: they solved finance and 10 customers bought your product because of word-of-
tax problems in a simple, easy-to-use manner. Intuit had mouth that’s a pretty powerful tool. . . So engaging with
recognized correctly that simplicity was the key, not in- our customers directly is part of our DNA and communi-
depth accounting analysis. By 1995, the firm held a cating with customers on a timely basis is critical. And
70 percent market share, and Microsoft tried to purchase that timely basis now is instantaneous.”
it for $2 billion. However, the Justice Department blocked Recently, Intuit has increased its presence on social
the deal as anticompetitive and the buyout collapsed. media Web sites such as Twitter, Facebook, and LinkedIn.
From 1995 to 1997, Intuit’s stock tumbled 72 percent Just 12 weeks after the firm integrated a small-business
and forced the company to refocus its strategic efforts. It Web site with these social networks, sales of QuickBooks
turned to the growing power of the Internet, online bank- increased 57 percent. To measure the viral success of this
ing capabilities, and valuable input from its customers to site, Intuit identified bloggers who either wrote their own
develop new product versions, which in turn improved the stories or picked up stories originally posted by a few influ-
company’s stock value and market position throughout ential bloggers who were given a special preview. Intuit
the 2000s. classified each blog post according to velocity (whether it
Intuit spends a significant amount of time and took a month or happened in a few days), share of voice
money—approximately 20 percent of net revenues—on (how much talk occurred in the blogosphere), voice quality
consumer research each year. It is critical for Intuit to know (what was said and how positive or negative it was), and
exactly how customers use and feel about their products sentiment (how meaningful the comments were).
due to the fast-paced nature of technology, shifting con- In 2008, Intuit earned $3.1 billion in revenue, primarily
sumer needs, and the competitiveness of its industry. Intuit from Quicken, QuickBooks, and TurboTax sales. The
conducts several levels of research and invites consumers company now employs over 8,000 people, mostly in the
and businesses to participate in a variety of ways. United States, and is planning to expand internationally.
During a Site Visit, Intuit researchers visit the individ- It continues to acquire companies, such as personal
ual’s home or office to observe and learn exactly how its finance Web site Mint.com in 2009, that will help it in
products are used and can be improved in the true work growth areas such as solutions for mobile devices. Intuit
environment. A Lab Study invites consumers to one of believes that expanding its mobile solutions will encour-
Intuit’s U.S. research labs to test out new products and age younger consumers to turn to the company for their
ideas. During a Remote Study, consumers are interviewed finance and tax software. Growth will also come from
over the phone and often asked to view new design con- previous Microsoft Money customers. In 2009, Microsoft
cepts over the Internet. The company also conducts an announced it would discontinue its Money product line
ongoing extensive research study with the Institute for the after an 18-year battle with Quicken. The victory was a
Future, to learn more about the future trends affecting rare win against the software giant and one that should
small businesses. Intuit uses what it learns not only to pro- provide great opportunity for Intuit.
duce improved versions of its products each year, but also
to better understand the next generation of financial and
tax software, such as solutions for mobile devices. Questions
Demand for Intuit’s products is seasonal, and its mar- 1. Elaborate on Intuit’s use of customer research. Why
keting efforts are typically concentrated around tax prepara- did it work so well for the company?
tion time—November through April. During that time, Intuit
2. Could anything go wrong for Intuit now that it has
develops promotions with original equipment manufactur-
beaten out Microsoft? Why or why not?
ers (OEMs) and major retailers. It promotes its products
through a number of marketing efforts including direct mail, 3. How should Intuit gauge the results of its research
Web marketing, print, radio, and television ads. among younger consumers with mobile devices?
While Intuit’s marketing campaigns have evolved over
Sources: Intuit, 2008 Annual Report; Karen E. Klein,“The Face of Entrepreneurship in 2017,”
the years, it was clear early on that positive word of mouth
BusinessWeek, January 31, 2007; Intuit,“Intuit Study: Next-Gen Artisans Fuel New Entrepreneurial
and exceptional customer service are its most effective Economy,” February 13, 2008; Michael Bush,“How PR Chiefs Have Shifted Toward Center of
marketing tools. Harry Pforzheimer, chief communications Marketing Departments,” Advertising Age, September 21, 2009; Jon Swartz,“More Marketers Use
Social Networking to Reach Customers,” USA Today, August 28, 2009; Mark Johnson and Joe
officer and marketing leader, explained, “It’s a little harder
Sinfield,“Focusing on Consumer Needs Is Not Enough,” Advertising Age, April 28, 2008; “Intuit CEO
to measure but when you know that roughly eight out of Sees Growth in Mobile, Global Markets,” Associated Press, September 23, 2009.