LTR Marketing Exam 2

Defining Objectives and Research Needs

The first step in marketing research, where marketers identify what they need to learn and determine what information and data are required to make informed decisions.

Designing the Research

The stage in marketing research where marketers plan how to collect the needed data, including choosing the research methods (surveys, interviews, observations) and deciding how to measure and analyze the information.

Collecting the Data

The stage in marketing research where information is gathered from primary sources (like surveys or interviews) or secondary sources (like reports or databases) based on the research plan.

Analyzing the Data and Developing Insights

Converting data into information that is useful in making more effective marketing decisions

Developing and Implementing an Action Plan

The final stage in marketing research where findings are summarized, presented, and used to make marketing decisions or take actions based on the research results.

Secondary Data

Data that is readily available. Examples include Census data, sales invoices, Internet information, books, journal articles, and syndicated data.

Syndicated Data

Data available for a fee from commercial research firms

Scanner Data

A type of quantitative research that uses data obtained from scanner readings of UPC labels at checkout counters

Panel Data

A type of quantitative research that involves collecting information from a group of consumers, organized into panels, over time

Qualitative Research

Research that focuses on understanding people’s thoughts, feelings, and motivations through non-numerical data such as interviews, focus groups, or observations.

Quantitative Research

Research that collects and analyzes numerical data to identify patterns, measure relationships, or test hypotheses using methods like surveys, experiments, or statistical analysis.

Observation (Primary Data Technique)

researchers systematically watch and record consumer behavior in its natural environment to gather insights without direct interaction

Surveys

A systematic means of collecting information from people using a questionnaire

Experiments

Primary Data Analysis Example

Self-actualization

What is the highest level of need in Maslow's hierarchy, which involves achieving one's full potential and seeking personal growth?

Ethical Survey Practices

Avoiding questions the respondent cannot easily or accurately answer (e.g., "How much money did you spend on groceries last month?")

Double-Barreled Question (Avoidance)

Refers to more than one issue with only one set of responses (e.g., "Do you like to shop for clothing and food?")

Leading Question (Avoidance)

Steers respondents to a particular response, irrespective of their true beliefs (e.g., "BMW is the safest car on the road, right?")

One-Sided Question (Avoidance)

Presents only one side of the issue (e.g., "Fast food is responsible for adult obesity: Agree/Disagree")

Experimental Research (An Experiment)

A type of quantitative research that systematically manipulates one or more variables to determine which variables have a causal effect on other variables

Advantage of Secondary Research

Saves time in collecting data because they are readily available

Disadvantage of Secondary Research

May not be precisely relevant to information needs, or the information may not be timely

Advantage of Primary Research

Specific to the immediate data needs and topic at hand; offers behavioral insights generally not available from secondary research

Disadvantage of Primary Research

Costly and time-consuming; requires more sophisticated training and experience

Data Warehousing

Data that is stored in large computer files

Data Mining

The practice of examining large amounts of data to discover useful patterns, correlations, and insights for better decision-making.

The 5 Vs of Big Data

The set of characteristics that define Big Data (listed in Exhibit 10.10)

Marketing Analytics

The process of collecting, measuring, and analyzing marketing data to evaluate performance, identify insights, and guide decision-making.

Descriptive Analytics Tools

Help firms organize, tabulate, and depict their available data, usually in easy-to-understand reports, tables, and charts

Predictive Analytics Tools

Rely on historically available data to forecast the future, such as product sales or churn rate reduction

Prescriptive Analytics Tools

Analyses that use simulations and optimization techniques to find the most effective or best result

Active Analytics Tools

Artificial intelligence algorithms used to analyze input gathered from various databases including data from the Internet of Things (IoT)

Core Customer Value

The basic problem-solving benefits that customers are seeking

Consumer Products

Products and services used by people for their personal use

Product Mix

Includes all the firm’s products and services

Product Line

Associated items that consumers tend to use together or think of as part of a group

Cannibalization

When sales of the company’s new product/brand takes away sales from the company’s existing product/brand

Segmenting, Targeting, Positioning

What does STP stand for?

Brand Equity

The value a brand adds to a product or service, based on consumer perceptions, brand loyalty, and recognition.

Brand Awareness

the extent to which consumers are familiar with a brand's identity and products

Component of Brand Equity (2)

Perceived Value

Brand Associations

Reflect the mental and emotional links that consumers make between a brand and its key product attributes (like a logo, color, slogan, or famous personality)

Brand Loyalty

Occurs when a consumer buys the same brand’s product or service repeatedly over time rather than buying from multiple suppliers

Brand Extension

Strategy related to using an existing brand name on a new product in a different category

Line Extension

Strategy related to adding items within an existing product line

Brand Dilution

Occurs when the brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold

Co-Branding

Benefits participating brands by attracting the consumers of one brand to the others

Brand Licensing

A contractual arrangement whereby one firm allows another to use its brand name, logo, symbols, and/or characters in exchange for a negotiated fee

Brand Repositioning

A strategy in which marketers change a brand’s focus to target new markets or realign the brand’s core emphasis with changing market preferences

Diffusion of Innovation

The process by which the use of an innovation spreads throughout a market group over time and across categories of adopters

Pioneers

New product introductions, especially new-to-the-world products that create new markets

First Movers

The first firm to create the market or product category

Relative Advantage

Reverse Engineering (Idea Generation)

Take apart product, analyze product, create improved product that doesn’t infringe on patents

Lead User (Customer Input)

Innovative product users who modify existing products according to their own ideas to suit their specific needs

Concept Testing

The process in which the concept is presented to potential buyers or users to obtain their reactions

Alpha Testing

Testing of a prototype conducted within the firm

Beta Testing

Testing of a prototype conducted with potential consumers

Test Marketing

Introduces the offering to a limited geographical area prior to a national launch; it is a mini product launch and is typically more expensive than premarket tests

Product Life Cycle (PLC)

Defines the stages that products move through as they enter, get established in, and ultimately leave the marketplace

Introduction Stage (PLC)

Characterized by initial losses due to high start-up costs and low levels of sales revenues; typical consumers are innovators

Growth Stage (PLC)

Characterized by rapid growth in industry sales and increasing number of competitors; typical consumers are early adopters and early majority

Maturity Stage (PLC)

Characterized by intense competition for market share; adoption occurs by the late majority; sales are at their peak

Functional Needs

Pertain to the performance of a product or service

Psychological Needs

Pertain to the personal gratification consumers associate with a product and/or service

Internal Locus of Control

Consumers believe they have some control over the outcomes of their actions, generally leading to more search activities

Determinant Attributes

Product or service features that are important to the buyer and on which competing brands or stores are perceived to differ

Compensatory Decision Rule

Assumes that the consumer trades off one characteristic against another, such that good characteristics compensate for bad characteristics

Noncompensatory Decision Rule

The consumer chooses a product or service based on one characteristic or subset of a characteristic, regardless of the values of its other attributes

Postpurchase Cognitive Dissonance

An internal conflict that arises from an inconsistency between two beliefs or between beliefs and behavior

Reducing cognitive dissonance

Build realistic expectations; demonstrate correct product use; stand behind the product with guarantees; encourage customer feedback; or periodically contact customers

Market Positioning

Defining the marketing mix variables so that target customers have a clear, distinctive, desirable understanding of what the product does or represents in comparison with competing products

Value Proposition

Represented by the benefits that a firm provides but that its competitors do not

Geographic Segmentation

Organizes customers into groups on the basis of where they live (country, region, areas within region)

Demographic Segmentation

Groups consumers according to easily measured, objective characteristics such as age, gender, and income; it is the most common and easy to measure segmentation method

Psychographic Segmentation

Method that delves into how consumers actually describe themselves, based on self-values, lifestyle, and self-concept

Behavioral Segmentation

Divides customers into groups based on how they use the product or service

Relative Advantage

The degree to which a product or innovation is perceived as better than existing alternatives or the idea it replaces.

Compatibility

The degree to which an innovation fits with the values, experiences, and needs of potential adopters.

Observability

The degree to which the results or benefits of an innovation are visible and easily noticed by others.

Complexity and Trialability

The degree to which an innovation is easy to understand and use, and can be tried or tested on a limited basis before full adoption.

Relative Advantage, Compatibility, Observability, and Complexity and Trialability

RCOC

Idea Generation, Concept Testing, Product Development, Market Testing, Product Launch, Evaluate Results

ICPMPE

Identifiable ,Sustainable, Responsive, Reachable, Profitable

ISRRP

Need Recognition, Information Search, Alternative Evaluation, Purchase and Consumption, Post-purchase

NIAPP

Internal R&D, R&D consortia, Licensing, Brainstorming, Outsourcing, Competitor’s Products, and Customer’s Input

IRLBOCC