MAR3023 TEST 2 Ch 5 6 7 9 Prof Brady CHAPTER 5 Marketing research designing gathering analyzing and reporting information used to solve marketing problems ORIGINS TMQ movement 1980 s total quality movement by Deming and Juran customer oriented economy NOT a transaction oriented economy looked at customer reactions and compared products between companies Marketing is empirical and quantitative cluster analysis identifies customer segments ex fauxumerism enjoying to pretend to buy things pinterest etc applied research research that is done to solve a specific problem ex ALS ice bucket challenge basic research background basic academia research Marketing Research Process 1 Problem definition exploratory qualitative research secondary data information used that is already out there for another purpose basic research primary data specific data found to solve the problem applied research 2 Research Design 3 Sampling Population exploratory less structured data collection methods secondary info qualitative ex focus groups descriptive who what when where why how Characteristics of a population Ex surveys casual cause and effect experiments probablilty sampling every element in the population has a chance at being sampled Random all units have equal chance Stratified pop Is divided into units random sampling from each unit nonprobability sampling no way to calculate who will be selected Quota divide population into groups and arbitrarily choose 4 Data Gathering 5 Data Analysis can be done through a human machine or self reported statistical interpretation analysis of what is typical and what deviates from the average regression predicts dependent variable with one or more independent variables Cannot be used for new products allows companies to predict demands 6 Report Preparation communicate research findings formally CHAPTER 6 Market Segmentation dividing the market into smaller groups cluster analysis this is how you segment markets targeting targeting lucrative groups of consumers target consumers with a high competitive advantage ex for a company who cares highly about its distribution techniques target customers who are also interested highly in distribution techniques ex NFL targeting women Undifferentiated one for all entire market is the target for the product Differentiated two for two organization targets two or more segments with a different marketing mix for each segment Concentrated one for one organization targets a single market segment using one mix ex Dell personal computers How To Segment Markets demographically geographically psychographics lifestyle behavioristic usage SRI consulting company and VALS VALS value and lifestyle survey once a consumer takes it it tells them what marketing segment they belong too GeoVals maps that show the marketing segments consumers belong too both VALS and GeoVALS make marketing dollars more efficient Nielsen s Marketing Company Claritas and Prism it is a geo demographic segmentation tool that is more specific than VALS Forecasting Marketing Demand Sales Forecast Time Series Analysis using historical sales to discover patterns cycle analysis 3 5yrs trend analysis over 5 years seasonal analysis over days weeks etc Test Markets expensive and time consuming technique where organizations roll out a test product in a place like Jacksonville for example in the US where the demographic in that city is a good mirror image of the entire nations demographic Positioning maintaining a products image for its segments it is done through multidimensional scaling MDS Ex perceptual map w x and y axis lucrative segments exist where market segments most closely overlap the product made to fit that segment Market Strategy Segment Target Position Reposition CHAPTER 7 Involvement leads to irrationality High Involvement purchased after careful consideration Risky products Ex skydiving low involvement purchased with little consideration Less expensive products and less risk Irrationality Consumers are not always rational Dan Ariely academic scholar studying irrationality ex people bought more Mars bars in 1997 when NASA went to Mars Problem Solving High involvement extended problem solving Low involvement limited problem solving impulse buying routinizing Routinizing Habitual Decision Making choices made with little conscious effort ex choosing Coke every time Market Strategy spend money on familiarizing consumer with brand Limited Problem Solving requires moderate amount of time for info gathering The consumer is familiar with the product class but not the brand ex pricking restaurants clothes Extended Problem Solving consumer gains as much info as possible from both internal memory and external advertising etc sources ex choosing a college Market Strategy give consumer A LOT of information All of the above problem solving tells the company how to advertise to the consumer Consumer Decisions 1 Problem recognition buyer becomes aware that they have a problem 2 Info Search Internal memory search and external advertising web word of mouth experts or opinion leaders search 3 Evaluate Alternatives a Evoked Set or Retrieval dress products already in your memory plus those prominent in retail environment i Ex candy bars my evoked set is milkyway snickers and 4 Product selection most consumers are cognitive misers don t like to kitkat think heuristics mental shortcut which leads to a speedy decision ex country of origin price quality 5 Post Purchase reaction to purchase cognitive dissonance buyers remorse buyers doubts shortly after purchase Influence on Decisions Situational ex mood Psychological ex Maslows Hierarchy of Needs how consumers prioritize what they need Food water is at bottom and self actualization is at top Social Influences ex opinion leaders CHAPTER 9 Culture understand different cultures dialects prior to entering market so that you can successfully take a product overseas Entering Global Market 4 modes stage 1 no exporting stage 2 export via independent reps stage 3 establishment of one or more sales internationally stage 4 establish international production manufacturing Approaches to International involvement Trading companies links buyers and sellers in different countries Licensing requires a license to pay commissions on sales supplies used in manufacturing Franchising form of licensing franchiser grants a franchisee rights to market product Outsourcing contracting noncore operations with an organization that specializes in those operations
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