BCOR 2400 1st Edition Exam 2 Study Guide Chapters 8 13 Chapter 8 I Marketing Research the planning gathering and analysis of information in order to make more informed marketing decisions thereby reducing risk 50 new businesses fail within 5 years 75 of new consumer packaged goods products fail Technical risk Cane we make the app People risk Will the key players stay together Financial risk Can we keep the company well financed Market risk Can we get the dogs to eat the dog food Most dangerous risk II Marketing Research process 1 Define the problem building block of marketing research ex bus to show Identify possible actions Measure of success action standard Actions might include changing Advertising Message Product features Promotional offer Pricing Target Market 2 Develop the research plan Specify constraints Time money confidentiality access Identify data needed for marketing actions What specifically do I need to help make the decision in front of me select a winning concept Determine how to collect data 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 In person vs over the phone Focus group vs immersion ethnography Quality vs quantity Marketing research 3 techniques Exploratory research To gain understanding about a vague issue Descriptive research To find frequency that something occurs or indentify a relationship Casual research Determine impact of one factor on another 3 Collect relevant information Secondary data already exists Internal Sales data Customer feedback Service data complaints Web traffic patterns External Sources can be public or private Census bureau Trade associations Business media Syndicated research Scanner data Primary data newly collected Qualitative Idea generation methods exploratory research Researcher engages with the subject through conversation or observation Mystery shopper Ethnographic research Interviews focus groups Quantitative Idea evaluation methods descriptive research Research that can be summarized numerically statistically Surveys questionnaires Sampling methods Probability sampling Everyone in a given population has an equal chance of being surveyed from sample to population Statistical inference from sample to population Projectable a margin of error Non probability sampling Bias non representative in the group of people you are surveying Informative not projectable Statistical inference Using a probability sample to make generalizations about a larger population Question formats Open ended questions Closed end or fixed alternative questions Dichotomous questions Semantic differential questions Likert scale questions Experiments In descriptive research the independent variables are measured In experimental research the independent variables are manipulated Independent variable the cause Dependent variable the result Test markets Test vs control Promotion Pricing New products Cannibalization Statistical significant 4 Develop findings data analysis Analyze data Present findings 5 Take Marketing Actions Research finding Marketing action Add more sales reps to a territory Develop new product concepts in response to unmet needs Customize product offers based on predictive analytics e g Target III Sales Forecasting Judgments of the decision maker Direct forecast Lost horse forecast Surveys of knowledgeable groups Survey of Buyers intentions forecast Sales force survey forecast Statistical methods Trend extrapolation Linear Trend extrapolation Anecdotal intuitive Analytical Rigorous Chapter 9 I Market Segmentation Splitting potential customers in a market into different groups or segments within which customers share a similar level of interest in the same or comparable set of needs satisfied by a distinct marketing proposition they response similarly to a specific mix of the 4Ps If a segment responds similarly to the 4P s it leads to high marketing efficiency We want homogeneity within a segment II Segmentation strategies No segmentation very heterogeneous Highly segmented very homogenous within each segment but smaller segments One product and multiple market segments Same product slight variation to all segments ex baseball magazines Multiple products and multiple segments pasta sauce Risk of cannibalization arises at some point Segments of one mass customization Offer the same thing to everyone but allow them to customize their needs Amazon Google III Market Segmentation process Step 1 Grouping customers into segments Done through intuition and judgment or via rigorous quantitative research Criteria logic for creating segments Potential for increased profit Similarity of needs within a segment Difference of needs between segments Potential of a marketing action to reach a segment Basis for defining segments Geographic state city urban rural Demographic age ethnicity children health condition Psychographic attitudes eco lifestyle active innovator Behavioral heavy user business traveler dollar store shopper Step 2 Group products to be sold into categories Step 3 Develop a market product grid Step 4 Select target markets Step 5 Take marketing actions to reach targets IV Product positioning How we want the consumer to think of our brand Generating perceptual maps a means of displaying how a product or brand lives in the mind of the consumer Identify key attributes Chapter 10 I Types of Products Consumer B2C Sold to consumers Convenience frequent purchase little effort Shopping lots of comparisons Specialty special effort to find it Unsought item you may not really want Business products B2B Industrial Sold to another business Often derived demand Components Support products II New product a continuum Newness the consumer s perspective The degree of newness affects the amount of learning effort consumers exert to use the product Type of innovation Continuous new flavor Dynamically continuous touch screen keyboard Discontinuous apple TV Marketing reasons for new product failures 1 Insignificant points of difference 2 Incomplete market and product definition before product development starts 3 Too little market attractiveness 4 Poor execution of the marketing mix 5 Poor product quality or sensitivity to customer need on critical factors 6 Bad timing Too soon or too late to market 7 No access to buyers fail to gain distribution III New product development process Step 1 New product strategy Seize an opportunity fill a gap Where are there