Marketing Exam 2

What is the marketing information system?

A system designed to collect, assess, evaluate, and distribute marketing information to managers in a timely way.

4 components of market research

Relevant, timely, efficient, exact

What does it mean for marketing research to be efficient?

The value of the research must be more than the cost of acquiring it

Phase 1 of the marketing research process

Specify objectives and required information

Phase 2 of the marketing research process

Design collection method

Phase 3 of the marketing research process

Carry out collection process

Phase 4 of the marketing research process

Analyze results

Phase 5 of the marketing research process

Communicate results

Secondary source of information

Pre-existing information

Secondary internal information

Data from other parts of the company or previous marketing research

Secondary external information

publications or statistical sources

Primary information

Information being generated by the company for the first time

Primary internal information

Generated by an in house research team

Primary external

Hiring a firm to conduct qualitative/quantitative procedures

Quantitative methods are

structured approaches

Order of sources when a company needs information

internal secondary, external secondary, primary sources

Instant methods for gathering quantitative data

Ad hoc survey, Omnibus survey, observation

Ad Hoc survey

Cold calling or going up to people on the street

Omnibus survey

Renting a space and asking people to come in to complete the survey

Periodical methods of gathering quantitative data

Panels and experiments

Direct methods of gathering qualitative data

In-depth interviews, focus groups, expert interviews

Indirect method for gathering qualitative data

Projective techniques

Projective Techniques examples

word association or incomplete sentence tests

Weighted distribution definition

% of stores that a product is sold in, weighted by the importance of outlets

Weighted distribution focuses on

Quality

Numerical distribution definition

% of stores that the product is sold in

Numerical distribution focuses on

Reach

Weighted average price of sales

Sales $/units sold

Penetration

Proportion of consumers who have purchased a category/brand in a given time period

Relative penetration

The penetration of one brand within the market

Relative penetration formula

Brand penetration/Category penetration

Frequency

Number of times each household purchases a brand per year

Average purchase

Average quantity that a household buys per purchase

What does a word association test tell you?

What do people think of when they hear your brand name

Product

Anything that can be offered to a consumer

Service

A product that consists of intangible activities, benefits, or satisfactions

Products and services are becoming more

Commoditized

Levels of product concept

Benefits basics, Formal aspects, Additional aspects

What are the benefits/basics

The features of your product that satisfies a need

Formal aspects

Label, brand, quality, packaging

Additional aspects

Delivery, maintenance, warranty, etc.

Convenience products

Frequent purchases with little comparison and purchase effort

Selective purchase products

Less frequent purchases, high comparison and purchase effort

Specialty products

unique features or brands for which significant groups of people will put in significant purchase effort

Unsought products

Products that a consumer does not normally think about or does not know about

Examples of unsought products

Life insurance, funeral services

Brand concept

Anything that allows consumers to identify a product and differentiate it from competitors

Packaging

product container

Labels

Communicate brand, describe attributes, provide promotions

How to communicate market leadership in packaging?

High quality materials

Functions of label

Communicate brand and information

Product range

set of products/lines that an organization offers

Product lines

Set of products with common characteristics

Range Breadth or amplitude

Number of lines in the portfolio

Range Length

Sum of all products

Line depth

Number of products in a line

Models

Different sizes/variants within one products

Coherence of lines

Relationship between product lines

Specialized portfolio

Few lines with great depth

non-specialized portfolio

many lines with little depth

vertical axis of BCG matrix

Market growth rate

Horizontal axis of BCG matrix

relative market share

Star

High growth, High market share

Cash Cow

Low growth, High market share

Question mark

High growth, low market share

Dog

Low growth, old market share

Relative market share

company share divided by largest competitor’s share

Decisions made with BCG matrix

Grow, sustain, reduce