MRKTNG 3000 1nd Edition Lecture 5Outline of Last LectureI. Market Segmentationa. Typesi. Demographicii. Geographiciii. Psychographic iv. Geodemographicv. Purchase behaviorvi. Loyaltyvii. User statusviii. BenefitII. Market targetinga. Approachesi. Massii. Nicheiii. Differentiatediv. 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. Typesi. Syndicated research servicesii. Marketing information systemsiii. Non-recurring research projects b. Research using primary dataV. Processa. Market research using primary dataVI. Approaches a. Primaryb. SecondaryVII. Estimating Demand VIII. Market demand methods Current LectureBarf laundry detergent (UK) market research FAILURESnuggie market research SUCCESS-Marketing research is critical to helping companies succeedTypes 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, gatheringcontinuously 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. Problem definition and research objectives2. Develop research plan3. Collect info4. Analyze info5. Present findings Non-recurring marketing research process using primary dataExploratory research- Shed light on a problem, new ideas and solutionsDescriptive 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 dataOnline Good marketing research:1. Is scientific2. Is creative3. Uses multiple methods 4. Realizes the interdependence of models and data5. Acknowledges the cost and value of info6. Maintains a healthy skepticism7. 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: 300IPhone: 250Blackberry: 200Others: 250What’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 activitySurvey 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 periodPast 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 yearsRegression 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 salespeopleExecutive judgment-Obtaining opinions regarding future sales volume from one or more executives or expertsTest marketing-Firm markets its product in a limited geographic area, measures sales, and the projects the company’s sales over a larger