MKT EXAM 2, Craig Martin CH. 5, 7, 13

Marketing Research

The systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of marketing opportunities

Marketing Information System

a framework for the day to day managing and structuring of information gathered regularly from sources inside and outside the organization.

5 step marketing research process

1. Define the problem. 2. Design the research project. 3. Collect the data. 4.Interpert Research Findings. 5. Report research findings.

Define the problem

problems/ issues usually result from

a. deviation from a normal function (unusual drop or increase in sales)

b. Failure to attain objectives (don't meet goals)

Design Research Project

Design a hypothesis (guess the cause)

Types of Research

descriptive, exploratory, experimental

Exploratory Research

marketing research to gather preliminary information that will help define problems and suggest hypotheses.. no hypothesis, get more info.

descriptive research

marketing research to better describe marketing problems, situations, or markets, such as the market potential for a product or the demographics and attitudes of consumers

experimental research

research designed to discover causal relationships between various factors

Validity

a research study is measuring what it is supposed to be measuring, asking the right questions

Types of Data

secondary data and primary data

(organizations in US typically use secondary data over primary)

secondary data

collected inside or outside the organization for a purpose other than the current problem.

primary data

observed, recorded, or collected directly from respondents specifically for the current problem (usually only used if they can't find any pre-existing data)

Methods of Collecting Primary Data

Survey questionnaire..

mail survey, telephone survey, online or email survey,

personal interview survey,

a. in home, door to door interview,

b. focus group interview,

c. shopping mall intercept interview

Survey Question Development

Dichotomous (2 options) question

Multiple Choice questions (3 or more)

Open Ended Question

Sampling

The process of selecting representative units from a total population

Population

all units of interest to research

Sample

A limited number of units chosen to represent the characteristics of a total population

Consumer Problem Solving

a. routinized response behavior

b. limited problem solving

c. extended problem solving (opposite of routinized.)

routinized response behavior

A consumer decision-making process used when buying frequently purchased, low-cost items that require very little search-and-decision effort

limited problem solving

when a consumer is willing to put some effort into deciding the best way to satisfy a need

extended problem solving

a purchase decision process during which the consumer devotes considerable time and effort to analyzing alternatives; often occurs when the consumer perceives that the purchase decision entails a lot of risk

expensive, infrequently purchased, spends lots of time making decision

ex: cars, jewelry, house

5 step consumer buying decision process

1. Problem recognition

2. Information search

3. Evaluation of alternatives

4. Purchase

5. Post-purchase evaluation

1. Problem Recognition

a difference between a desired state and an actual condition

what i don't have vs. what I have

2. Information Search

the customer examines their own memory and knowledge about the product or service, gathered through past experiences.

Or they seek information outside their personal knowledge base to help make the buying decisions

internal search

An information search in which buyers search their memories for information about products that might solve their problem

external search

An information search in which buyers seek information from sources other than their memories

does someone else know what to do?

evoked set (consideration set)

group of products consumers will consider buying as a result of information search

3. Evaluate Alternatives

What are the advantages and disadvantages of each alternative?

evaluate criteria

Objective and subjective product characteristics that are important to a buyer

cost, convenience, time

4. Purchase

to buy

(don't always get to this point, because either can't afford it, or not the initial problem that we thought was wrong)

5. Post Purchase Behavior

satisfaction, dissatisfaction, loyalty, cognitive dissonance

cognitive dissonance

post purchase doubt, psychological tension or anxiety

organizations usually give warranties or guarantees to prevent

Possible influences on the decision process

situational, psychological, social

situational influences

Influences that result from circumstances, time, and location that affect the consumer buying decision process

physical surroundings, social surroundings.

physical surroundings

include decor, sounds, aromas, lighting, weather, and configurations of merchandise or other materials surrounding the stimulus object

social surroundings

the other individuals present in the particular situation

1. workers

2. shoppers whom you don't know

3. shoppers who you're with

time perspective

how quickly do i need the product

purchase reason

who will my purchase impact?

antecedent states

Features of the individual person that are not lasting characteristics, such as momentary moods or conditions

psychological influences

Factors that in part determine people's general behavior, thus influencing their behavior as consumers

social influences (long term)

roles, family, reference groups, opinion leaders, social classes

service

intangible product involving a deed, performance or effort that cannot be physically possessed

75% of jobs in U.S. besides farming

6 major differences between services and physical goods

1. intangibility

2. inseparability

3. perishability

4. heterogeneity

5. Client based relationships

6. consumer contact

Intangibility

the inability of services to be touched, seen, tasted, heard, or felt in the same manner that goods can be sensed

services are difficult to promote

Inseperability

services are produced and consumed at the same time

Perishability

time dependent; most cases, can not be stored for future use

heterogeneity

variation in quality

a. different companies

b. same company, different service provider

c. same company, same service provider

client-based relationships

interactions that result in satisfied customers who use a service repeatedly over time

more loyal to our services than physical goods

Customer contact

relationship with service provider

service quality

customers' perceptions of how well a service meets or exceeds their expectations

How do consumers evaluate service quality

important question for service providers

Customer Evaluation of Service Quality

search qualities, experience qualities, credence qualities

search quality

tangible attributes that can be judged before the purchase of a product

experience quality

a characteristic that can be assessed only after use

credence quality

a characteristic that consumers may have difficulty assessing even after purchase because they do not have the necessary knowledge or experience

nonprofit marketing

Marketing activities conducted to achieve some goal other than ordinary business goals such as profit, market share, or return on investment

doesn't mean free, any extra money gets invested

3 biggest employers in BG are nonprofit

WKU

Medical Center

School systems

How is non profit marketing different?

1. beneficiaries: students, communities

2. Difficult to evaluate performance

3. Can be controversial (religion, politics)

non profit target markets

Client public: direct consumer of the product (WKU = students)

General public: indirect consumer of the product.

(employers, community, family)