MRKTNG 3000 1nd Edition Exam 2 Study Guide Lectures 5 10 Lecture 5 February 17 Introduction to market research What are the types of market research How is it done Why is it important The types of market research are syndicated research services non recurring research projects and marketing information systems Marketing information systems analyze assess marketing information provides basis for decisions such as product development pricing packaging etc Marketing research process 1 Problem definition and research objectives 2 Develop research plan 3 Collet info 4 Analyze info 5 Present findings 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 research surveys experiments Secondary data Internal sources government publications periodicals and books commercial data online Good marketing research 1 Is scientific 2 3 4 5 6 7 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 Market demand Estimated using industry sales and market share individual product sales industry sales Methods Market factor analysis demand for a product is assumed to be related to the behavior of certain sales activities Survey of buyer intentions 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 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 Lecture 6 February 19 Non profit marketing why is it needed What makes it different from business marketing The non profit sector is growing and requires a different marketing perspective than that for business Non profit sector includes over 1 million organizations that generate 1 1 trillion in revenue each year accounting for 7 of all employment There are many types of non profits including arts education religion etc Targeting Unlike businesses non profits are mission based and customer satisfaction is not necessarily the only goal Customers of non profit product service are not necessarily responsible for financial support Non profit marketing has a greater need to target multiple constituencies university students patents legislature employers etc Two general target groups Those served and donors Lecture 7 February 26 Heuristics attribute sets correlational inferences and biases what are they How do they apply to marketing Evaluation of alternatives attribute sets universal set retrieval set evoked set choice Correlational inferences Associations positives or negatives between two attributes Country of origin effect if something is produced in a certain country it must be good or bad Germany good beer and cars England bad food Heuristics and biases Heuristics used to ease cognitive effort Representativeness stereotyping bias in which prior probabilities are ignored Ex Ad shows mom fixing Ovaltine for kids who chorus more Ovaltine please Bias occurs if viewers believe Mothers care about the health of their kids so Ovaltine must be healthy Ovaltine actually isn t good for kids lots of sugar Availability bias tendency to use info that is most readily available Ex Consumers considering fast food or beer alternatives that have been recently advertised Anchor and adjustment first information becomes basis anchor from which we adjust based on new info we often don t adjust enough Most common example in marketing Using retail sticker price as an anchor for determining what is a good value Sales Infomercial pricing Lecture 8 March 3 Materialism sustainability and corporate social responsibility what are they and how do they apply Materialism devotion to material needs and desires to the neglect of spiritual matters a way of life opinion or tendency based entirely on material interests Marketing and materialism Marketing does not create needs Marketing research is conducted to find unserved needs before product is developed and promoted Marketing promotes materialism Macro effects of promotion leads to focus on possessions happiness view Sustainable development What is it About Balancing economic growth and social needs with the natural environment Ensuring that growth in the present does not adversely sacrifice future opportunities Sustainability within a local area and at a global level Challenges in sustainable development 1 Inherit complexity of the problem balancing short term private benefits with long term interests Over focus on one area may have significant negative Solutions require long running transformational changes Common definition e g whether development through industrialization itself should be referred to as sustainable 2 Conflicting interests Balancing short term private benefits with a long term interest Balancing self interest with the interests of others Corporate interests National interest Personal interests Interest groups with varying perspectives and agendas 3 Post modernization emerging factors Corporate Social Responsibility CSR The way firms integrate social environment and economic concerns into their values culture decision making strategy and operations in a transparent and accountable manner and thereby establish better practices within the firm create wealth and improve society External markets for virtue Some customer segments may reward CSR initiatives while others don t Benefit segmentation CSR most important vs price most important Favorable response to CSR profitability Dependent on fit between consumer values firm values and specific issue initiative Must be seen as authentic Characteristics of socially responsible consumers Purchasing based on firms corporate social responsibility CSR performance Recycling Avoidance and use reduction of products based on their environmental impact Marketing and CSR How does marketing