ISC 321 - Quiz 1

Marketing Concept

The birth of idea: “The need of producers should be considered only with regard to meeting the needs of consumers” -Adam Smith

The Evolution of Marketing Concept

1920s: Production Concept - Can we produce the product?

1930s: Sales Concept - Can we sell the product?

After WWII Marketing Concept - What do consumers want?

Today: ‘Right Principles’

Providing the right products/services to the right people

• at the right place + the right time, using the right promotion techniques

What does the marketing concept rely upon?

Marketing Research! To define market segments, their size, and their needs

• to satisfy consumer needs, managers make decisions about the controllable parameters of the marketing mix

Marketing Mix

the unique blend of products/service, pricing, promotion, and distribution strategies designed to meet the needs of a specific group of consumers

4ps: Product, price, place, promotion (5ps w/ Participation-customer engagement)

• Promotion: sales promo, advertising, public relations, direct marketing

• Place: channels, market coverage, assortment, location, inventory, transport

• Product: features, quality, branding, packaging, services, warranties

• Price: price strategy, pricing, allowances, discounts, payment terms

Integrated Marketing Communications (IMC)

the process of using a promotional mix in a unified way so that a systematic communication effect is created = ISC

• 4 Promotional Mix = Marketing Comms: Advertising, PR, Sales Promo, Direct Marketing

Marketing Research

the planning, collection, and analysis of data relevant to the marketing decision-making and the communication of the insights to management

3 functions:

• Descriptive

• Diagnostic

• Predictive

Descriptive Function

To gather and present statements of facts

ex: addressing

• What is the historic sales trend in the industry?

• What are consumers’ attitudes and beliefs toward a product?

ex: Oscar Mayer-heard (through marketing research) plenty from consumers about what they disliked about its former bacon packaging

• Oscar Mayer Center Cut Bacon was introduced: a new “Stay-Fresh Reclosable Tray”

Diagnostic Function

to explain data or actions

ex: addressing - what was the impact on sales when the Oscar Mayer package design was changed? How can product/service offerings be altered to better serve customers and potential customers?

• Heinz: kids eat over 5 billion oz of ketchup each year, decided that heavy users (kids) should have a lot to say (via marketing research) about how to make ketchup fun

• Heinz listened and watched kids using ketchup, resulting in a new bottle design and name selection, Heinz EZ Squirt Ketchup

Predictive Function

to specify how to use descriptive and diagnostic research findings to predict the results of a planned marketing decision

• ex: addressing how can the company best take advantage of opportunities as they arise in the ever-changing marketplace

• Bonobos-most brands typically only make mens shorts in general sizes like s,m,l, xl

• Bonobos “core shorts” is sized numerically, hitting both odd and even waist sizes from 28-40 inches, can also pick length (7 or 9 inch), for a wide variety of different, almost custom fits

How these marketing functions can go together?

Descriptive Function: find what happened (reactive to a problem)

ex: UK has a lack of branding power; weaker than benchmarked institutions

Diagnostic Function: Find why and how from data (reactive to a problem)

ex: UK is represented by different units using different and old logos

Predictive Function: decided what to do next and what would happen next? (proactive; taking an opportunity)

ex: UK needs a new logo to present its strong and coherent brand

Marketing Research: Basic

• Theory - or model-building (general)

• to expand the frontiers of knowledge

examples:

• Maslow’s Hierarchy of Needs

• Product Life Cycle

Applied Research

• problem solving (specifics)

• to improve a situation through a solution from applied research

example: ANAR Foundation

• problem- how to raise awareness of their phone number to help children and adolescents at risk

• Solution- interactive + customized public images (ex: child abuse report)

When is Marketing Research important?

• understand ever-changing trends in the marketplace

• take advantage of opportunities (proactive)

• protect from a prospective/actual problem (reactive)

• point to brand touch points on multiple platforms (ex: social media, UGC)

When Marketing Research is not necessary?

• when decision - making information already exists

• when you have a lack of resources

• when it was poor timing

• when costs outweigh benefits

• when there’s no agreement on what’s needed

Primary Research

to solve the problem under investigation

• very involved, high cost, long time, collecting data by yourself, is done after secondary research

• it’s your own research

• when secondary did not offer answers to your research questions

Secondary Research

to be relevant to the problem under investigation

• rapid and easy, low cost, short time, data collection done by others

• should be done before conducting your own (primary research)

• serving as a guiding light when you find a direction for your primary research (developing your research objectives)

Secondary Research - Internal Sources

examples:

• sales person’s call reports

• annual report

• customer profiles — the creation of database marketing + data mining discovers a hidden pattern

External Sources

check outside resources available paid or free

example:

• Government reports (ex: US Census)

• Trade association research (ex: IAB, AAAAs)

• Syndicated research (Pew Research Center, MRI+, Mintel Academics)

• Business periodicals (Advertising Age, PRSSA)

Secondary Research - Advantages

• less expensive + faster

• helpful to clarify and redefine a problem/opportunity

• providing important insights for primary research (ex: research objectives)

• contributions to the development of the survey questionnaire

Secondary Research - Disadvantages

• lack of availability - might not be any available data on your topic

• Lack of relevance - data might be distant or outdated

• Inaccuracy - might be biased (w/ or w/o intention), questionnaire source (external vs. internal)

• Insufficiency - not enough to bring a closure to a problem

First thing to do in your primary research

Identification of problem/opportunity

• specify your primary research through small-sized research (rather than assuming your directions)

• secondary research

• exploratory research: Focus group interview (FGI), Short Interview, Pilot Study (mini study)

Primary Research - Qualitative

• observation

• in-depth interview

• FGI

• Projective Techniques

• Case Study

• Pilot Study

Primary Research - Quantitative

• observation

• survey

• experiment

• content analysis

Primary Research - Advantages

• control over the research process

• specific results

Primary Research - Disadvantages

• cost

• time consuming

Step 1: The first thing to do when you conduct own/primary research?

• identify major problems/opportunities

• specify them with informational needs — secondary research results are helpful

• Necessary to justify the need for your research and clarify the direction of your research

The need for your research

=How can I help my client with my research?

The direction of your research

=What kind of research should I conduct?

What is the goal of my research?

Developing research objectives

• done based on the precise info addressing major problems/opportunities

• done after finding the need for your research and developing your research roadmap

• consider the “so what” questions of your topic

• Develop multiple (usually 3) objectives

Scenario: Your company plans to develop a new ready-to eat lunch product for school children

two research objectives:

1.) To understand how school children evaluate your current lunch products

2.) (in class brainstorm) — ex: understand location, what foods children like the most, etc.

Step 2: Create the research design — Descriptive Studies (ex: survey)

• answers the question who, what, when, where and how

• help the research select variables for a casual study

Step 2: Create the research design — Casual Studies (ex: survey)

• Examine whether an independent variable causes/affects a dependent variable

Step 3: Select the Research Method - Survey

• (quantitative)

• descriptive

• obtain pre-existing facts and opinions

Step 3: Select the Research Method - Content Analysis

• (quantitative)

• descriptive

• ISC content (non human samples)

Step 3: Select the Research Method - Experiments

• (quantitative)

• casual

• testing stimuli

Step 3: Select the Research Method - Focus Group

• (qualitative)

• descriptive

• motivation study

Step 4: Select the Sample Procedure

• identify who will be your samples

• decide a sample size (how many)

• be cautious of a sampling error

-use either a probability or non-probability method

-probability methods are always preferred

Step 5: Collect the Data

• in-person, phone, mail, online… and more

• commercial services (ex: Amazon Mturk, SONA) and tools (ex: Qualtrics, Survey Monkey) available

Step 6: Analyze the data

• use a qualitative and/or quantitative analysis

• different tools available (ex: excel and SPSS for quantitative analyses)

• Qualtrics for your project!

• interpret findings and draw conclusions from data

Step 7: Write a report

• data-based

• implications for the client

• ethical consideration

• revisit research objectives

• audience-friendly

Is secondary data always collected by others?

Yes! Secondary data is always collected by others

Is an experiment an example of qualitative or quantitative research?

an experiment is an example of quantitative research

Qualitative Research

• characterized by absence of empirical measurements to describe attitudes, perceptions, behaviors, or performance

• more subjective evaluations

sample size: small

info from each respondent: a lot

question techniques: open-ended, probing

main instrument: discussion guide, ex: FGI guide

types of analysis: subjective, interpretive

degree of republic-ability: low

type of research: usually exploratory

examples: in-depth interview, FGI, observation

Quantitative Research

• conducted to obtain empirical measurements of attitudes, perceptions, behaviors, or performance

• more objective evaluations

sample size: large

info from each respondent: relatively small

question techniques: multiple-choice

main instrument: questionnaire, ex: survey questionnaire

type of analysis: statistical, empirical

degree or republic-ability: high

type of research: descriptive or causal

examples: survey, experiment, content analysis

Qualitative + Quantitative: Recent Trend - Combining both

Qualitative research led to well-conceived quantitative research that verified the demand for the new product

• Client: the detergent company (the maker of Woolite and Lysol)

• FGI result said: glasses washed in a dishwasher tended to become clouded and stained

• they need a survey: to determine the extend of the perceived “staining” problem among households and dishwashers

when combining both: qualitative research led to well-conceived qualitative research that verified the demand for the new product

• survey result verified: consumer dissatisfaction with how their glasses looked after the numerous rounds in the dishwasher

• consumer willingness to pay a reasonable price to find a solution

taken together: the company introduced a dishwasher detergent that protects glassware from mineral corrosion

Qualitative research - advantages (over quantitative)

cost: usually (not always) more cost efficient

• fast turnaround

• easy to set up

-Obtain in-depth interviews about consumer motivations and feelings

-improve the efficiency of quantitative research

Qualitative Research - Disadvantages (over quantitative)

• less representative respondents

• lack of highly skilled researchers (ex: professional FGI moderators)

• not able to detect an overall trend in the marketing mix

• limited contribution to find a decision

Qualitative Research Type

• in-depth personal interview

• focus group interview (FGI) (popular)

• projective techniques

More: observations (usually by ethnographers)

• case studies

In-depth interviews

• Unstructured one-to-one interviews

• the second most popular form of qualitative research

• no group pressure on study participants

• better with confident, emotional, or embarrassing topics than FGI

• able to acquire details about complicated behaviors

• need an interviewer thoroughly trained in the skill of probing and eliciting detailed answers to each question

Probe is important! Probe as much as possible

• can you tell me more? would you be able to elaborate on that?

In-depth interview - advantages + disadvantages

advantages

• flexibility

• confidentiality

• purity

• depth of information

• portability

• individual focus

disadvantages

• cost

• time

• potential for sample problems

FGI

• group of 8-12 participants who are led by a moderator in a discussion on particular topics or concepts

• emphasis on getting people to talk about the subject in a group setting

• most frequently qualitative research method

goal: to understand and lear what people say and why

• to find out how consumers evaluate about a product, idea, or performance

• how it fits into their lives

• what emotions/intentions that consumers have

What are group dynamics matter in FGI?

• interaction among people in a group

• more talkative due to the stimulation by others

• stimulate free and spontaneous discussions (group pressures matter, too)

• most people feel comfortable (more than in-depth interview)

Popularity of FGI?

why?

• limited knowledge on statistic-based research

• able to see what consumers actually do and ask why/how

Main users:

• research firms

• ad agencies

• consumer good companies

Planning FGI - 1.)Preparation

Recruiting Participants:

• 8-12 respondents

• qualified respondent (through pre-screening)

• avoid repeat “professional” respondents

Focus Group Facilities:

• conference room with a one-way mirror

• conference table and chairs

• audio-video equipment

Planning FGI - 2.) Select a moderator

the moderator should be able to:

• conduct a group properly

• have good biz skills

• create rapport

rapport=bridge between people’s everyday life and clients interest

moderator=bridge builder

Bad moderator:

• leading rather than guiding

• being too knowledgeable

• trying to be a comedian

• being a poor listener

• being too rigid with the discussion guide

• focusing on individuals rather than the group

Planning a FGI - 3.) Develop a discussion guide

• written outline of topics to be covered during FGI (AKA, aligning them with RQs)

• consider depth vs. length

• can be flexible in an actual FGI

Planning a FGI - 4.) Conduct FGI

length: about 90 mins (no more than 2hrs)

order:

• introduction: rapport, rules of FGI

• general topic discussion: easy & quick to answer

• specific topic discussion: logical flow/probing & follow up questions

• close

Use the inverted pyramid shape for the FGI Q flow - Introduction

• Consent for a recording/observational process

• Provide a casual, relaxed, & informal setting

• create rapport at the beginning

• Be honest; tell the truth

• Discussion rules (specific strategies with in-class exercise):Take one at a time - Don’t dominate the discussion - Talk in any order - Listen to others

Use the Inverted Pyramid Shape for the FGI Q flow: Qs about bread

General attitude toward bread

• Eating more/less bread now, compared to a few years ago? Explore reasons.

• Disadvantages of bread, compared to other foods?

• Foods bread goes with best? Why?

• Usage/purchase of bread

• When/where is bread consumed most often?

• Types of bread used most frequently?

• Likes/dislikes of each type of bread?

• Brands preferred? Why these brands? Vary by family members?

Use the Inverted Pyramid Shape for the FGI Q flow: Qs about dieting + diet bread

Bread consumption when dieting

• Changes in bread consumption related to dieting? Why?

• Types of bread eaten when dieting, if any reasons?

• Roles of bread in dieting

• Attitude toward diet bread/brands

• Awareness of diet breads/brands?

• Experience with diet bread/brands

• Satisfaction with each brand?

• Why like or not like? Brand perceptions?

• Important factors/product attributes associated with preferred brands?

Use the Inverted Pyramid Shape for the FGI Q flow: Qs about the clients product and ads

Reaction to “LESS” diet product samples

• Overall reactions to each bread

• - Reaction to taste, texture/mouth feel?

• - Reaction to slide shape/thickness?

• - Reaction to loaf shapes and size?

• - Reaction to color and smell?

• Show and discuss “Less” ad concepts

• Overall reaction to each concept

• Likes/dislikes for each concept?

• Main idea for each concept?

• Believability?

Planning a FGI 5.) Analyze Results

Prep - Make data accurate and searchable – e.g., Audio/video recording, a written transcript, automated transcript options

• use thematic analysis

• the most common form of analysis in qualitative research

• look for themes that reoccur in narratives and summarize the main themes using quotations from the evidence as support

Thematic Analysis’s 3-Steps:

1.) Transcribe and get familiar with the data

• the transcribed texts (ex: Zoom recording) become the primary source material for the subsequent thematic analysis

• familiarize themselves with it by reading it several times

2.) Code the text based on what it is about

• code them with a short but descriptive that represents the essence of a response -tip: color code or highlight responses

3.) Group codes into major themes

• group codes with major trends and patterns (AKS. themes)

• ensure that each theme has enough data to support the theme and is distinct

• consider merging together similar themes and removing themes that don’t have enough data to back them up

• provide examples (using “quote”) to illustrate each theme

What does focus group data do for research?

focus group data puts the human touch back into research

• a dialogue between real people and textual analysis by a flesh-and-blood expert (thats you)

• once you’ve got an accurate transcript of your FGI, your most powerful tool is your brain

FGI Advantages + Disadvantages

Advantages:

• quicker, easier, and cheaper

• group dynamics

• spontaneous response

• consensus and debate

• chance to observe consumers

• chance to text a product/ad

Disadvantages

• dominant participant

• group pressure

• immediacy and understandability may mislead

• may not be typical customers

• human bias (moderator/interpreter)

New Trend - Online FGI

Advantages:

• no geographical constraints

• able to recruit people not available for traditional focus groups (doctors, layers, etc)

• less time constraints and lower costs

• moderators can carry on side constraints

Disadvantages

• technical challenges - digital divide, online access

• lack of general control over the respondent’s environment

• not able to directly test touch and smell

• difficult to capture emotions

Projective Technique

Quantitative research usually done by consumer psychologists, not typical market researchers

• an unstructured, indirect form of questioning that encourages respondents to project their underlying motivations, beliefs, attitudes, or feelings regarding the issues of concern

why?

• reluctance

• defense mechanisms

• inability to reveal feelings

Projective Techniques - challenges (not for group project)

• require highly trained interviewers

• require skilled interpreters

• a serious risk of interpretation bias

• tend to be expensive

• engage people in unusual behavior

• non representative sample

Comparison of 3 qualitative research methods

Projective techniques - type

1.) Word association - ask to say the first word that comes to mind after hearing a word

2.) Sentence and story completion - ask to complete a set of incomplete sentence or story; the most useful and reliable

ex: The last time I eat M & M ______________ The typical people who eat M & M are ______ Chocolate bars are better snacks than Cookies because ____________________

3.) Cartoon test - fills in the dialogue of a cartoon character; highly versatile

4.) Photo or picture spots - respondent sorts photos of different types of people

• identifies brand images by projecting user images

• trademarked technique by BBDO Worldwide

5.) Consumer Drawings - respondents draw what they are feeling or how they perceive an object

• reveals unconscious motivations and perceptions

• ⭐️ interpretation bias is high - common with children

6.) Third-person technique- ask questions in terms of others, typical consumers, or most people

• to minimize “social desirability bias” and social pressure

• suitable for sensitive and stigmatized topics

— why don’t most people recycle?

— why do typical college students binge-drink?

Do you use projective techniques on class project?

NO, these are useful for tapping respondents deepest feelings, however DO NOT USE them in your project