EXAM 2 MARKETING Chapter 5 Marketing Research marketing problem Process of designing gathering analyzing and reporting information that may be used to solve a o i e product development pricing studies customer satisfaction assessments distribution analysis promotion effectiveness studies In other words STUDIES ASSESSMENTS ANALYSIS Origin 1980s TQM Movement Total Quality Movement o Customer Orientation Research to find customer reaction to product Research to compare product to competitors Research to find problems with product Importance o Gives managers answers to important questions empirical quantitative Decreasing customer defection by 5 increases profits by 25 100 U S firms lose half of their customers every 5 years 1 unhappy customer tells 9 12 others It is 5 times as costly to attract new customers than to retain old ones o It s the foundation for marketing strategy decisions Research strategy Cluster Analysis statistical analysis technique that identifies customer segments It identifies group of customers with similar characteristics Measuring price sensitivity importance of quality and on time delivery o Can then target groups with highest probability of purchasing their product Types of Research Studies o Applied Research Designed to solve a specific problem usually for a specific company i e consulting i e treat or cure a specific disease o Basic Research To extend knowledge i e how did the universe begin i e why consumers complain and why they do not o i e McDonald s complaints Marketing Research Process o Problem Definition Problems are mostly unseen Must research carefully the problem definition Often research must go beyond the obvious and visible Research Problem Problem well defined is half solved Manager interviews Expert interviews Secondary data Qualitative research o Exploratory helps in problem solving as it allows researcher to better define problem by looking at it first hand o Research Design Types of Data Secondary Data information collected for a purpose other than the research at Primary Data information that has been collected specifically for the research at hand objectives at hand Approaches Exploratory describes less structured data collection methods o Focus groups flexible group discussion of a product ad concept Trading cards Packaging salad dressing Chromebook o Observation o Secondary source Descriptive describes characteristics of a population o Surveys mail telephone online personal interview o Cross tabs o regression Experimental causal identifies cause and effect between variables o Sampling the Population o experiments Population units individuals of interest to researchers for specific study Sample limited number chosen to represent total population Sampling selecting representative units Probability random sampling stratified sampling Nonprobability Quota o Data Gathering Human interviews focus groups Machine scanner data Self report customer surveys Keys bias depth accuracy resources o Data Analysis Cross Tabs good way to compare two variables Pivot tables in excel age and gender variables Sales with advertising price service Poorest billion don t move up as quickly o Report Preparation Prepare report o Poor saving for shoes o Middle saving for bike o Rich saving for car flying Regression technique used to predict dependent variable with one or more independent Chapter 6 Segmentation and Positioning Target Market group of people organizations which a business creates and maintains a marketing mix designed to satisfy the needs of the members Market Segment group with similar characteristics and similar product needs Market Segmentation dividing total market into groups with similar product needs o To make sense of a huge market o Idea is that firms can use their marketing mix to tailor products for segments o Power to INCREASE market share new products and DECREASE cost avoiding wasteful spending Targeting firms develop new products or reposition to target lucrative groups of consumers o Orchestra to younger crowds Through youtube E T o Olive Garden new menu Targeting Strategies marketing mix o Undifferentiated homogeneous market similar needs Entire market is target market 1 i e restaurant grand opening celebration o Differentiated two or more segments more than one marketing mix i e restaurant college crowd cheap family crowd kid friendly elderly senior discounts o Concentrated single marketing segment 1 marketing mix single sites i e restaurant convenient location to residents within 10 miles Different Target markets but owned by the same company Old Navy Gap Banana Republic Dating site for people who like tattoos Target Market people that like tattoos Having extended product lines that target distinct groups of customers o Anheuser Busch owns many many different beers monster hurricane etc o Disney resorts theme parks restaurants cruises o Crest 20 different toothpastes Segmentation Bases o Demographics Describe characteristics of a population o Geographic o Psychographics o Behavioristic Region city size urban rura Personality motives lifestyle Usage volume benefits loyalty price sensitivity Use Related Segmentation o Usage Rate heavy medium light none o Awareness Status unaware aware interested enthusiastic o Brand Loyalty none some strong Value and Lifestyle Survey VALS o Helps classify customers based on psychological characteristics correlated with purchasing behavior and related to key demographics Nielsen provides market research and target marketing offers Prism zip code lookup a segmentation tool which helps when choosing a store location etc Forecasting Market Demand Sales Forecast o Amount of product a company expects to sell during period at specified level of marketing activities o Methods Time Series Analysis using historical sales data to discover patterns Trend Analysis using aggregate sales data from many years to determine general Cycle Analysis analyzing sales for 3 5 years to assess consistent fluctuations Seasonal Analysis analyzing daily weekly or monthly sales to assess seasonal trends influences Regression Analysis Predicting sales based on finding relationship between past sales and one or more independent variables o Also requires use of historical sales data o Can t use for new products o Useful precise association between variables established and when historical data is extensive Target Market Making product available to buyers in one or more test areas and measuring purchases and consumer responses o
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