MRKTNG 3000 Edition 1st Exam 1 Study Guide Lectures 6 13 Chapters 2 3 7 Lecture 6 September 16 Marketing Research Types of Marketing Research o Syndicated research services o Marketing information systems Consists of people equipment and procedures to gather sort analyze evaluate and distribute needed timely and accurate information to marketing decision makers o Marketing intelligence systems Or decision support systems o Non recurring research projects E g study of consumers perceptions toward hospital strategic alliance Databases come in many forms o Las Vegas casinos electronically monitor the slot machine usage of slot club members o Samsonite uses information from product registration cards 1 5 million per year and incoming calls to its 800 number o Kraft General Foods collects the names and preferences of consumers who mail in coupons o American Express can trace every purchase made with its cards since 1991 to the individual cardholders Non recurring MR Process Using Primary Data o Exploratory Research Sheds light on problem suggest solutions or new ideas o Descriptive research Ascertain magnitudes Compare company s profile to competitors o Casual Research Test cause and effect relationships Tests hypotheses about cause and effect relationships Research Approaches Primary Data o Observational Recording of behavior Ex River rafting trip o Focus Group Exploratory research find out about something o Survey Most common o Behavioral o Experimental Lab very controlled but not real Field more realistic less controlled Secondary Data Sources o Data already collected o Should always be relied on first Internal Sources Government Publications Periodicals and Books Commercial Data On Line Associations Business Information Estimating Demand o What is market share Individual product sales industry sales Demand Forecasting o Estimating sales of product during future time period o Sales Forecast Based on specific marketing plan Expressed in dollars of product units Typically covers a 1 year period Estimating Future Demand o Market Factor Analysis Demand for a product is assumed to be related to the behavior of certain sales activity Ex 2010 new car sales used to predict Goodyear s 2014 replacement tire sales o Survey of Buyers Intentions A sample of current or potential customers are asked how much of a particular product they would buy at a given price during a specified future time period o Past Sales Analysis A flat percentage increase is applied to the volume achieved last year or to the average volume of the past few years o Composite of Sales Force Opinion Sales Force Composite A bottom up method consisting of collecting estimates of sales for the future period from all salespeople o Expert Opinion Executive Judgment obtaining opinions regarding future sales volume from one or more executives Only use if there is no better way to forecast Ex air defense systems o Market Test Method Test Marketing A firm market sits product in a limited geographic area measures sales and then projects the company s sales over a larger area Lecture 7 September 18 Non Profit Marketing U S Nonprofit Services o Over 1 million organizations Generate 1 1 trillion in revenue each year Account for about 7 of all employment o Many types Arts culture humanities Education Religious Cause based groups Big Brothers Big Sisters The Food Bank Targeting o Unlike businesses Non profits are mission based Customer satisfaction not necessarily responsible for financial support consumers of non profit product service Not necessarily responsible for financial support Greater need to target multiple constituencies E g university students parents legislature employers etc Two general targeted groups Those served e g students churchgoers cancer researchers Donors financial and volunteers The Food Bank Strategy o Providing multiple reasons to give Communicate constituency need The number of children who go hungry is staggering Targeting Communitarians Devout segments Communicate efficiency of serving constituency Over 98 of donations go to needy 15 lbs of food for every 1 Targeting Investors Communitarians segments Using Partnerships The indirect appeal using others to get donations o Provides another self interest reason o Provides fresh message Using Publicity Letting people know who the good guys are Targeting Communitarians Socialites Donor Benefits o Personal Feel good about oneself by giving volunteering to a good cause o Social Belong to donor group invited to special events or get special privileges o Functional Reduce future costs Tax benefits o Experiential fun fundraising events Valuable enjoyable volunteer experience Chapter 2 Marketing Research Process and Systems for Decision Making Marketing Research o The process by which information about the environment is generated analyzed and interpreted for use in marketing decision making o It is an aid to decision making NOT a substitute for it Even the most carefully executed research can be fraught with errors Marketing research does not forecast with certainty what will happen in the future Should make decisions in light of own knowledge and experience The Marketing Research Process o Purpose of the Research At the end of this stage managers and researchers should agree on The current situation involving the problem to be researched The nature of the problem The specific question or questions the research is designed to investigate o Plan of the Research Spells out the nature of the research to be conducted and includes an explanation of such things as the sample design measures and analysis techniques to be used 3 critical issues that influence the research plan are Whether primary or secondary data are needed Whether qualitative or quantitative research is needed Whether the company will do its own research or contract with a marketing research specialist Primary vs Secondary data Primary data data collected specifically for the research problem under investigation Secondary data data that have previously been collected for other purposes but can be used for the problem at hand o Cheaper than primary data Qualitative vs Quantitative research Qualitative research typically involves face to face interviews with respondents designed to develop a better understanding of what they think and feel concerning a research topic such as brand name a product a package or an advertisement o Often used in early stages of investigating a topic to get more information and