BCOR 2400 1st EditionExam # 2 Study Guide Chapters: 8 - 13Chapter 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 Market2. 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 dataThese 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. quantityMarketing 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 another3. 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 significant4. Develop findings- data analysis-Analyze data-Present findings5. 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 extrapolationAnecdotal/intuitive--- Analytical/RigorousChapter 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 segmentII. 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 pointSegments 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 targetsIV: 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 attributesChapter 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 productsII. 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 failures1. Insignificant points of difference2. Incomplete market and product definition before product development starts3. Too little market attractiveness4. Poor execution of the marketing mix5. Poor product quality or sensitivity to customer need on critical factors6. Bad timing (Too soon or too late to