MKT 230 1st EditionExam # 2 Study Guide Lectures: 7-12Chapter 5 (Lectures 7-8)1.What is market research?a. Market Research is the systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of marketing opportunities.2.Why is market research important?a. It helps to make sure that the company doesn’t fail at their marketing efforts, facilitate strategic planning, it helps companies assess their opportunities and threats, helps determine feasible strategy, and improve the ability to make decisions.3.What is the process of market research? Explain the steps.a. Locate and define issues or problems (very important)i. Define the problem, identify what you are doing and whyb. Design the research project.i. Come up with an overall plan for obtaining information needed to address a research problem or issuec. Collect datai. Involves primary and secondary datad. Interpret research findingi. Put data in table format and then analyze. People need to understand theresults and relate them to a context that permits effective marketing decision makinge. Report research findingsi. Prepare a formal, written document with a clear and objective presentation. Point out deficiencies in data and consider the intended audience.4.What is validity?a. Does the experiment measure what it is supposed to be measuring? Does it ask the right questions to the right people at the right time?5.What is reliability?a. Will the experiment have consistent results? There needs to be almost identical results in repeated trials.6.What are the different sampling formats?a. Probability sampling: technique in which every element in a population being studied has a known chance of being selected for study. An example of this wouldbe studying college students in Illinois, every college student has potential for being selectedi. Random sampling: probability sampling in which all units in a population have an equal chance of appearing in a sample.ii. Stratified sampling: a type of probability sampling where the population is divided into groups according to a common attribute and a random sample is chosen within each group.b. Nonprobability Sampling: Sampling technique in which there is no way to calculate the likelihood that a specific element of a population being studied will be chosen. An example of this would be choosing people that are the typical college age but having no way to tell if they are actually college students.i. Quota sampling: a technique where researchers divide the population into groups and then arbitrarily chose the participants of each group, like choosing people by gender, zip code, income, etc.7. Explain the different data types.a. Primary Data: data collected directly from respondents. It is collected to address specific problems that cannot be answered by secondary data aloneb. Secondary Data: data that is complied both inside and outside of the organization. It can include things like the census, Internet databases, etc. 8.What are the different data sources?a. Government sources like the census, trade associations and shows, newspapers, magazines, video, audio news programming, and corporate information9. What are the different survey types?a. Mail, telephones, online surveys, personal interviews (door-to-door /in-home, focus-groups, customer advisory boards, telephone, shopping-mall intercept)10. What is the definition of marketing information systems?a. Marketing Information Systems (or MIS) is a framework for managing and structuring information gathered from internal and external sources11. What is the purpose for it?a. It helps firms utilize the Internet more effectively12. What is the importance of marketing information systems?a. This technology will help firms conduct marketing research quicker, easier, and more accurately than before.Chapter 6 (Lecture 9-11)1.What are target markets?a. A target market is a group that we put together marketing mix for; a group of people or organizations that a business creates and maintains a marketing mix specifically designed to satisfy the needs of group members.2.What is market segmentation?a. Market segmentation is the process of dividing a total market into groups with relatively similar product needs to design a marketing mix that matches those needs. This allows firms to better develop a marketing mix that satisfies a small portion of a heterogeneous market.3.Explain the difference between differentiated and undifferentiated segmentation?a. Differentiated segmentation targets at least two different market segments and used a different marketing mix for each of them.b. Undifferentiated segmentation is targeted at a homogeneous market and they use a single marketing mix for them.4.Define psychographic variables; give some examples.a. Can be hard to find sometimes because it requires extensive research that requires a lot of time and money. Some psychographic variables are personality attributes, motives, and lifestyles5.List and describe the 5 steps to target marketing.a. Identify the appropriate targeting strategyi. Choosing between undifferentiated, concentrated, and differentiated targeting strategies.b. Determine which segmentation and variables to usei. Choosing to look at demographic, psychographic, geographic or behavioristic variables. c. Develop a marketing segment profilei. Looks at similarities among potential customers within a segment and differences among people in different segmentsd. Evaluate relevant market segmentsi. Assess competition already in the segments and estimating costs of takingproduct to market and maintaining the right marketing mixe. Select specific target marketsi. Determine which approach is best. If a company fails to identify the correct target market it can lead to low sales a financial losses6.What is product positioning?a. Product positioning is creating and maintaining a concept of a product in a customer’s mind. For example, when most people think of a fast and cheap placeto grab lunch they will think of McDonald’s because that company has spend a lot of time and money to position themselves that way7.What is product repositioning? Why and how is it done?a. Product repositioning is attempting to change how people think of a certain company. It is done for various reasons, like updating the company’s image, or changing because of new competitors. It can be done through changes in price ordistribution, changing