Marketing study guide for test 2 Marketing Research process of designing gathering analyzing and reporting information that may be used to solve a marketing problem o What is Marketing Research 1 Pricing Strategy 2 Customer Satisfaction o Origins of marketing research TQM movement Deming Juran Juran s quality handbook and the TQM movement focused on customer orientation research to find customer reaction to product research to compare product to competitors and research to find problems with product o Why is marketing research important 1 Gives managers answers to important questions 2 Foundation for marketing strategy decisions o Marketing is far more empirical quantitative than most believe Examples Cluster analysis statistical analysis technique that identifies customer segments in a market that have similar characteristics Two types of data o Secondary Data information that has been collected for a purpose other than the research at hand Wikipedia rate my professor o Primary Data information that has been gathered specifically for the research objectives at hand Scientific data surveys Approaches to a Market Research Study o o Exploratory describes less structured data collection methods Used in the design to clarify the problem Focus groups observations secondary source o Descriptive describes the characteristics of a population Generally associated with surveys Who buys what they buy when where and how much Surveys regression Experimental identifies cause and effect between variables Causation and correlation Experiments Types of Market Research Studies Consulting o Applied research designed to solve specific problems usually for a specific company o Basic research designed to extend knowledge of marketing phenomena How do firms court potential customers Reasons customers leave firms How can firms most effectively break up with customers Marketing research process 1 Problem definition Qualitative research helps in problem solving as it allows the researcher to better define the problem by getting a look at it firsthand Two types of data involved primary and secondary Approach to the study either exploratory descriptive experimental Either mail telephone online or personal interview surveys 2 Research design 3 Sampling 4 Data Gathering 5 Data Analysis 6 Report Preparation called segments Segmentation Targeting Positioning and Repositioning o Market segmentation is the process of dividing up a market into smaller groups Segments are designed to have similar wants and needs The idea is that the firms can use their marketing mix to tailor products for the different segments o How do firms go about segmenting markets Cluster analysis firms can then plot the segments against their core competencies and target the groups with the most sales potential Segmentation has the power to both increase market share through the introduction of new products and decrease cost through avoiding wasteful spending on unattractive market segments Targeting strategies Undifferentiated entire market is target market 1 marketing mix o o Differentiated two or more segments more than 1 marketing mix Single mass market One approach for all Several well defined markets Different approaches for each Concentrated single market segment 1 marketing mix single sites Single well defined market One approach for the particular market o Segmentation bases Demographics Describes characteristics of a population gender age ethnicity education religion Example IPhone Geographic Region city size urban rural religion Example McDonald s Personality motives lifestyles Psychographics Behavioristic Usage volume benefits loyalty price sensitivity o Forecasting Sales forecast The amount of a product a company expects to sell during a specific period at a specified level of marketing activities Forecasting methods can be scientific or arbitrary and vary in complexity and expense Depends on costs products market characteristics time span purpose of forecast historical sales data and many other variables Time Series Analysis using historical sales data to discover patterns in the firm s sales such as Trend analysis Using aggregate sales data from many years to determine general trends Cycle analysis Analyzing sales for three to five years to assess consistent fluctuations Seasonal analysis Analyzing daily weekly or monthly sales to assess seasonal influences Regression Analysis Predicting sales based on finding a relationship between past sales and one or more independent variables Also requires the use of historical sales data Cannot be used for new products Test Market Making a product available to buys in one or more test areas and measuring purchases and consumer responses Effective at estimating sales of new products Time consuming and expensive The process of developing and maintaining a product image in the minds of consumers A product s position results from customers perceptions of a product s attributes relative to those of competing products Perpetual Mapping Created with multidimensional scaling MDS Idea to position objects e g firms products in a multidimensional space according to their relative similarities or customer preferences Products can be positioned according to ratings on both objective and perceived measures Through segmentation the market can be divided into several groups with similar characteristics A market segment is a homogeneous group of customers with similar needs wants values and buying behavior Target marketing involves selecting certain segments for emphasis Positioning is creating an image reputation or perception in the minds of the consumers about the organization o Positioning o ALTOGETHER Understanding Buyer Behavior Two levels of involvement o High involvement product Purchased only after careful consideration Tend to be visible to others risky and or expensive Low involvement products Products that tend to be less expensive and have less associated risk o Customers can be irrational in their decision making when involvement is low Social influences can impact this irrationality For example individual coupon users are often looked at as cheap or poor but the website groupon eliminates that effect o Problem solving strategies Routinized habitual decision making Choices made with little or no conscious effort Limited Problem Solving Requires a moderate amount of time for information gathering Extended Problem Solving The consumer tries to gain as much information as possible from both
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