Exam 2 Review Dr Mike Brady MAR3023 Exam 2 Review Sheet Marketing Research process of designing gathering analyzing and reporting information that may be used to solve a marketing problem o Origins of market research 1980s TQM Movement Deming Juran Customer Orientation research to find customer reactions comparison to competitor s product and find problems with product gives managers answers to important questions customer defection dilemmas o Market research is the means by which firms acquire information about customers applied research solving problems consulting usually for a specific company and basic research designed to extend knowledge of marketing all these informs the strategic decisions they make o Marketing is far more empirical quantitative than most people believe Customer firm relationships through the dating paradigm break up emails discontinued services Some people also believe complaining is not worth it nothing will come of it Two Types of Data o Secondary Data information that has been collected for a purpose other than the research at hand Ex Hotels com Rate My Professor o Primary Data information that has been gathered specifically for the research objectives at hand Twitter conversations between customer and company Approaches to a Market Research Study o Exploratory describes less structured data collection methods example focus groups Flexible group discussions comments o Experimental identifies cause and effect between variables Types of Marketing Research Studies applied vs basic o Applied solving problems consulting usually for a specific company o Basic designed to extend knowledge of marketing Bad service and complaining McDonald s example Only some complaints are filed only a fraction of those are dealt with Marketing Research Process o Problem Definition need to define the problem well use exploratory research o The Research Design exploratory info less structured focus groups secondary info descriptive surveys describes population statistics and casual correlation and causation o Experiment Results more rewards or no rewards greater chance of participation small reward lowest participation and effort Segmentation Targeting Positioning and Repositioning o Make sense of a huge market by segmenting it Dividing the market into several groups and subgroups with unique needs and wants Firms can use the 4 P s to create product to fulfill the needs o Firms go about segmenting markets through cluster analysis Target groups of buyers that match the competitive advantage Divide market into different markets o Targeting firms will develop new products to target lucrative groups of consumers NFL to women Undifferentiated one product good for everyone Differentiated two or more segments Different products to different consumers Concentrated individuals are their own marketing segment Customizing Dell computers hair cuts o Companies that target distinct groups of customers Amhesier Busch Crest Disney o Forecasting Marketing Demand the amount of a product a company expects to sell during a specific period at a specified level of marketing activities Use a time series analysis using historical sales data to discover patterns in the firm s sales Consistent fluctuations general trends and seasonal influences Regression analysis predicting sales based on finding a relationship between past sales and an independent variables o Perceptual Mapping done with multidimensional scaling MDS Idea is to position objects in a multidimensional space according to their similarities or customer preferences o Repositioning St John s fashion company old ladies to Angelina Jolie Understanding Buyer Behavior o High involvement careful consideration when purchasing example skydiving Low involvement less expensive less associative risk o Customers can be irrational in their decision making and it s likely to happen during low involvement Tend to buy orange and black candy during Halloween etc o Routinized Habitual Decision Making Coca Cola drinker for life always chooses coke Limited Problem solving moderate amount of time for information gathering familiar with product class not the brand Restaurants clothes Extended problem solving gain as much information as possible Ex choosing a college o Internal Versus External Search Internal search Scanning our own memory banks for information about product alternatives Requires prior experience repeat purchase External search Obtaining product information from advertisements friends or observing others o Consideration Evoked Set Products already in memory the retrieval set plus those prominent in the retail environment o Product Selection Mental rules of thumb that lead to a speedy decision Heuristics higher price higher quality Wine Cars Watches o Dis satisfaction an emotional reaction to the purchase decision o Cognitive Dissonance a buyer s doubts shortly after a purchase about whether o Maslow s Hierarchy Physiological needs safety needs social needs esteem the decision was the right one needs and self actualization needs o Influences of decisions situational ex physical surrounding mood psychological ex perception motives eg Maslow and social influences ex roles family opinion leaders Reaching Global Markets o Understanding cultural differences and nuances in dialets are keys to effectively entering a new global market cultural meanings word meanings in the UK vs US Nike culturally offended Ireland and UK with black and tan shoe Coca o Success in global market don t try and change another culture s habits adapt to Cola name translated incorrectly etc PDA is illegal in Dubai etc the local tastes o Sociocultural Forces Language interpretation difficulties Economic Forces market changes Political Legal and Regulatory Forces Tariffs Embargos Quotas Trade etc BRICS Brazil Russia India China South Africa are forcing many Ethical and Social Responsibility Forces Situational Ethics Corruption Bribes Market Entry Competitive Forces Global Competition is Increasing Technological Forces Use of internet advertising mobile technology etc o Adaptation Modifying elements of the marketing program to accommodate specific customer requirements in individual foreign markets o Ex auto making in the US adaption at McDonalds o Standardization Efforts to make marketing program elements uniform so as to target entire regions of countries or even the global marketplace with a similar product or service o Ex Nike shoes Rolex watches o Global Market Entry
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