MKT473 Exam # 1 Study Guide Lectures: 1 ,2,3,5,6Chapter 1Marketing Concept - Is a business philosophy based on consumer orientation, goal orientation, and systems orientation Consumer orientation: The identification of and focus on the people or firms most likely to buy a product (their target market) and the production of a good or service that will meet their needs most effectively. Goal orientation: A focus on the accomplishment of corporate goals; a limit set on consumer orientation. Return on investment. Systems orientation: The creation of systems to monitor the external environment and deliver the desired marketing mix to the target market Marketing Mix- The 4 P’s Product, Price, Promotion, Place. Marketing Research- The planning, collection, and analysis of data relevant to marketing decision-making and the communication of the results of this analysis to management. o Descriptive function: The gathering and presentation of statements of facts. Ex: describing a process of how to open a package of bacon o Diagnostic function: The explanation of data or actions. Ex: impact of sales with changing the bacon package.o Predictive function: Specification of how to use descriptive and diagnostic research to predict the results of a planned marketing decision. Ex: Take advantage of what the next thing is, like low carb then Kraft came out with South Beach Diet productsTwo types of marketing researchApplied vs. Basic research o Applied: Research aimed at solving a specific, pragmatic problem- better understanding of the marketplace, determination of why a strategy or tactic failed, or reduction of uncertainty in management decision making. o Basic: Research aimed at expanding the frontiers of knowledge rather than solving a specific, pragmatic problem. - Applied can be:o Programmatic: research conducted to develop marketing options through market segmentation, market opportunity analyses, or consumer attitude and product usage studies. o Selective: Research used to test decision alternatives.o Evaluative: Research done to assess program performance. When is it the right time to do marketing research?- Resources are lacking o Organization may lack the money o Results you can not implement from research- Research results would not be usefulo Information hard to obtain and target - Opportunity has passed- The decision has already been made o They aren’t considering changing what they decided on they just want to affirm the decision. MSI (Marketing Science Institute) Scott McDonald (VIDEO)- Cannot predict what would happen when iPhone came out and what it would do to the market. Especially with the apps being able to use. - People have their phones with them everywhere and look at them in the checkout line instead of magazines and other things. - Survey on phone to conduct researcho Formatting issues o Location information can be gainedo Knows what your preferences are when searching on phone - Machines being used more than people in some areaso Machines processing data automatically Chapter 2Structure of marketing research industry 1. Information Usersi. Client organizationsii. Governmentsiii. Media companies iv. Retailers and wholesalers Example of client firm: corporate marketing research departments- Usually small, fewer than 10 employees- Generally don’t initiate- Brand managers go to them- Generally have little budget control 2. Research Suppliers- Mostly big players, such as Neilsen (a syndicated service firm) – See discussion on their services o Provides measurement services for TV, online and mobile. o For TV there is measurement of national TV and local TV audiences- Custom or Ad hoc Research firms o Companies that carry out customized marketing research to address specific projects for corporate clients o Thousands of these, local, may or may not specializeo Majority are small, 10 or fewer employees o Often do one-of-a-kind projectso There are some big ones, e.g., Market Facts, Burke Research…- Syndicated (often what we think of as secondary research sources)o Big, e.g., AC Neilson (see above)o Collect ongoing data (called syndicated data) and sell to users and ad agencies o Generally media audience & product movement data. It is often generico But they will do custom work too…- Limited Function Research Firms o Specialize in a technique or set of techniques (e.g., focus groups) or in an industry (e.g., healthcare) or topical area (e.g., customer satisfaction studies)o Research panel: a group of individuals who agree to participate in a series of research studies over time3. Supplier service firms - Field service firms o Collect data only, i.e., in the field o Often has numerous satellite officeso Typical sequence of activities undertaken by a typical field service company Client contact Interviewer training Interviewing status reports Quality control Ship to client - Sampling firms (includes panel data firms, e.g., Harris Interactive; Zoomerang)- Software firms (e.g., SPSS, SAS, or Qualtrics)(will also host surveys)- Other service companiesCorporate marketing research (internal vs external clients) - External clients o Vendors (strategic partnering)  Strategic partnering: An alliance formed by two or more firms with unique skills and resources to offer a new service for clients, provide strategicsupport for each firm, or in some other manner create mutual benefits. o Franchisees (e.g., mystery shopping or to support new programs)- Internal clients o Marketing managers/new product developmento Top management strategic planning o Others (e.g., finance departments, HR (survey employees)o Rewards for employees, court casesEthics Marketing Research Ethics- Issues of fairness (across individuals or companies), doing what is right, not cheating or stealing, the golden rule.Research Supplier Ethics- Low ball pricing o Quoting an unrealistically low price to secure a firm’s business and then using some means to substantially raise the price - Allowing subjectivity in (e.g., advocacy studies) - Abusing respondents (examples??) o Lengthy interviews - Selling unnecessary research - Violating client confidentiality - Black box branding (proprietary materials, overclaiming)Client Ethics- Suggesting bids when supplier has been predetermined - Requesting bids to obtain free advice and methodology - Making false promises - Requesting proposals without authorizationRetailer