MRKTNG 3000 1nd Edition Lecture 5 Outline of Last Lecture I Market Segmentation a Types i Demographic ii Geographic iii Psychographic iv Geodemographic v Purchase behavior vi Loyalty vii User status viii Benefit II Market targeting a Approaches i Mass ii Niche iii Differentiated iv Individualized III Positioning Outline of Current Lecture These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute IV Market research a Types i Syndicated research services ii Marketing information systems iii Non recurring research projects b Research using primary data V Process a Market research using primary data VI Approaches a Primary b Secondary VII Estimating Demand VIII Market demand methods Current Lecture Barf laundry detergent UK market research FAILURE Snuggie market research SUCCESS Marketing research is critical to helping companies succeed Types of marketing research Syndicated research services Marketing information systems Non recurring research project i e study of consumers perceptions toward hospital strategic alliance A marketing information system that analyzes and assesses marketing information gathering continuously from sources inside and outside the organization Timely marketing information provides basis for decisions such as product development or improvement pricing packaging distribution media selection and promotion Where are databases used Casinos electronically monitor the slot machine usage of slot club members Samsonite uses info from product registration cards 1 5 million per year and incoming calls to its 800 number Kraft General Foods collects the names and preferences of consumers who mail in coupons Privacy Issues Up to 110 million to US had data stolen from Target databases late last year Marketing research process 1 2 3 4 5 Problem definition and research objectives Develop research plan Collect info Analyze info Present findings Non recurring marketing research process using primary data Exploratory research Shed light on a problem new ideas and solutions Descriptive research ascertain magnitudes Casual research test cause and effect relationships and hypothesis Research approaches Primary data Focus groups Observational Survey Experiment Secondary data sources Internal Sources sales reports etc Government publications most popular is the US Census Periodicals and books Commercial data Online Good marketing research 1 2 3 4 5 6 7 Is scientific Is creative Uses multiple methods Realizes the interdependence of models and data Acknowledges the cost and value of info Maintains a healthy skepticism Is ethical Estimating demand Industry sales Market share Individual product sales industry sales expressed in or in units Example What is IPhone s US Market share Droid 300 IPhone 250 Blackberry 200 Others 250 What s in a forecast Based on your specific marketing plan Expressed I either dollars or unites sold Typically covers a 1 year period Market demand methods Market factor analysis Demand for a product is assumed to be related to the behavior of certain sales activity Survey of buyer intentions A sample of current or potential customers are asked how much of a particular product they would buy at a given price during a specified future time period Past sales and trend analysis A flat percentage increase is applied to the volume achieved last year or to the average volume of the past few years Regression analysis using a trend to forecast sales Sales force composite Bottom up method consisting of collecting estimates of sales for the future period from all salespeople Executive judgment Obtaining opinions regarding future sales volume from one or more executives or experts Test marketing Firm markets its product in a limited geographic area measures sales and the projects the company s sales over a larger area