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Chapter 4Marketing research involves knowing the…- Environment- Competition- Customer o Customer insights: fresh understandings of customers and the marketplace derived from marketing information that becomes the basis for creating customer value and relationships Why is it so hard for marketing managers to get customer insights?- Too much of the wrong type of information, not enough of the right kind- Information is too dispersed in firm- Information control = personal power- Vital information arrives too late- No way to check for accuracy or confirmMarketing information system (MIS)- People, equipment, and procedures to gather, sort, analyze, and distribute needed, timely, and accurate information to marketing decision makers to help generate and validate actionable customer and market insightso These plans are expensive and time consuming to create, so they needto have a purposeo A good MIS balances the information users would like to have against what they really need and what is feasible to offer- Reasons for MISo Directs the right information to the right place in order to make timely decisionso Balances desired information with cost/feasibility to obtaino Centralizes responsibility for marketing information gatheringo Converts raw data to useful information- Sources of informationo Internal company datao Competitive marketing intelligence Publicly available sources such as…- External/acquired databaseso US censuso Government agencieso DMVo Data mining: meta analysis of transactions to profile/tract consumer behavioro Market research: the systematic design, collection, analysis, and reporting of data relevant to a specific market situation facing an organization It functions as an aid to decision making, but does not make thedecision Market research model:- Purpose: Defining the problem and research objectives.Involves both manager and researcher.o Exploratory researcho Descriptive researcho Causal research- Plan: Developing the research plan for collecting information o Secondary datao Primary data Research approaches:- Observational - Survey- Experimental  Contact methods:- Mail, telephone, personal interviewing, focus groups- Online marketing research Sample: a segment of the population selected for marketing research to represent the entire population Research instruments:- Questionnaires- Mechanical instruments- Performance: Implementing the research plan – collecting and analyzing the data- Processing: Interpreting and reporting the findingsAnalyzing and using marketing information- Customer relationship management (CRM): managing detailed information about individual customers and carefully managing customer touch points to maximize customer loyalty- Distributing and using marketing informationo Intranetso Extranets Chapter 6Market segmentationProcess of dividing the market into smaller segments of buyers with common needs,wants or problems that respond similarly to marketing actions or tailored offerings- Segmenting consumer marketso Geographic: nations, states, regions, counties, cities, neighborhoodso Demographic: age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, generationo Psychographic: social class, lifestyle, personalityo Behavioral: occasions, benefits, user status (nonusers, ex-users, potential users, first-time users, regular users), usage rate, loyalty status- Segmenting business marketso Geographico Demographico Behavioralo Operating characteristicso Purchasing approacheso Situational factorso Personal characteristics- Segmenting international marketso Geographic locationo Economic factorso Political and legal factorso Cultural factors- Requirements for effective segmentation (MASDA):o Measurable: can be measuredo Accessible: can be effectively reached and servedo Substantial: segments are large or profitable enough to serveo Differentiable: segments are conceptually distinguishable and respond differently to different marketing mix elements and programso Actionable: effective programs can be designed for attracting and serving the segments Market targetingThe process of evaluating each market segment’s attractiveness and selecting one ormore segments to enter- Target market: a set of buyers sharing common needs or characteristics that the company decides to serveo Selecting target market segments Undifferentiated (mass) marketing: when a firm ignores market segment differences and goes after the whole market with one offer Differentiated (segmented) marketing: firm decides to target several market segments and designs separate offers foreach Concentrated (niche) marketing: firm goes after a large share of one or a few segments or nichesTargetingbroadly Micromarketing: tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments. It includes local marketing and individual marketing.- Local marketing: tailoring brands and promotions to the needs and wants of local customer segments – cities,neighborhoods, and even specific stores- Individual marketing: tailoring products and marketing programs to the needs and preferences of individual customerso Choosing a targeting strategy With limited resources, concentrated marketing is best Undifferentiated is more suited for uniform products Differentiated or concentrated works best for products that vary in design Market variability: if most buyers have the same tastes, buy thesame amounts, and react similarly to marketing efforts then undifferentiated marketing is appropriate Competitors marketing strategies are also important. If competition uses concentrated marketing, using undifferentiated marketing would be bado Socially responsible target marketing: don’t target vulnerable or disadvantaged customers with controversial or potentially harmful productsDifferentiationDifferentiating the market offering to create superior customer value- Value proposition: how a company creates differentiated values for targeted segments and what positions it wants to occupy in those segmentsPositioningArranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers- Product position: the way a product is defined by customers on important attributes. It is the place the product occupies in the customer’s mind relativeto competing products- Perceptual positioning maps: Targeting narrowl-

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NU MKTG 2209 - Chapter 4

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