MRKTNG 3000 1st EditionExam # 1 Study Guide Lectures: 6 – 13Chapters 2,3 &7Lecture 6 (September 16)Marketing Research- Types of Marketing Researcho Syndicated research serviceso 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 systemso 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 memberso Samsonite uses information from product registration cards (1.5 million per year)and incoming calls to its 800 numbero Kraft General Foods collects the names and preferences of consumers who mail in couponso American Express can trace every purchase made with its cards since 1991 to theindividual cardholders- Non-recurring MR Process Using Primary Datao Exploratory Research Sheds light on problem – suggest solutions or new ideaso Descriptive research Ascertain magnitudes Compare company’s profile to competitorso Casual Research Test cause-and-effect relationships. Tests hypotheses about cause-and-effect relationships.- Research Approaches – Primary Datao Observational Recording of behavior Ex. River rafting tripo Focus-Group Exploratory research-find out about somethingo Survey Most commono Behavioralo Experimental Lab- very controlled, but not real Field- more realistic, less controlled- Secondary-Data Sourceso Data already collectedo Should always be relied on first Internal Sources Government Publications Periodicals and Books Commercial Data On-Line- Associations- Business Information- Estimating Demando What is market share? Individual product sales/industry sales- Demand Forecastingo Estimating sales of product during future time periodo Sales Forecast Based on specific marketing plan Expressed in dollars of product units Typically covers a 1-year period- Estimating Future Demando 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 saleso 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 systemso 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 Serviceso Over 1 million organizations Generate $1.1 trillion in revenue each year Account for about 7% of all employmento Many types Arts/culture/humanities Education Religious Cause-based groups- Big Brothers Big Sisters- The Food Bank- Targetingo 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 Strategyo 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 donationso Provides another “self-interest” reasono Provides fresh message Using Publicity- Letting people know “who the good guys are”- Targeting Communitarians, Socialites- Donor Benefitso Personal Feel good about oneself by giving/volunteering to a good causeo Social Belong to donor group, invited to special events or get special privilegeso Functional Reduce future costs Tax benefitso Experiential “fun” fundraising events Valuable/enjoyable volunteer experienceChapter 2Marketing Research: Process and Systems for Decision Making- Marketing Researcho 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 Processo 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 investigateo 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