Marketing Info 2

Marketing Research

An activity that inks the consumer and public to the marketer through information, used to identify and define marketing opportunities and problems; generate, refine and evaluate marketing options; monitor marketing performance; and improve understanding of marketing as a process

Step 1: Define the Problem

Hard to define what exactly it is. Specify the research objectives, define the consumers interest, identify relevant contextual factors.

Step 2: Develop Research Plan

Consider the best approach to collect the data we need to solve our problem by developing this. Specify what info is needed. Determine what types of research may be used to learn this info. Present the plan to management and get their buy in.

Exploratory Research

An initial, open ended investigation used to clarify vague problems, discover new customer trends and build early hypotheses before launching formal, data heavy studies.

Descriptive Research

A structured research method used to measure and record the characteristics, behaviors or preferences of a defined consumer group or market segment without manipulating any variables.

Probability sampling → Simple random sampling

Ex) every 5th student gets selected

Non probability sampling → Convenience sample

Ex) People easily accessible to us, friends, family.

Step 4: Analyzing Data

We have collected the data, and now we must convert this raw Fata into info marketers can understand that will help solve the problem

Step 3: Collect Data

It can be primary or secondary.

Step 5: Present Results and Take Action

A formal report is created for marketing decision makers; includes a summary of the finding and recommendations to address the problem. Should be clear and understandable using the appropriate data and visuals to present the info; infographics and charts

Secondary Data

Data previously collected for other purposes than the current research project, but is useful at the problem identification stage.

Panel Data

Group of consumers, ask the same set of questions over a longer period of time (10 years) to look at how consumer needs change over time.

Environmental Scanning

Looking at whats going on outside of your company that could impact your company

Secondary Data Examples

Internal data baes, U.S. census, gov’t agencies, trade associations, media sources, commercial databases

Predictive Analytics

Trying to predict consumers moves for the future

Unsupervised Learning Model

Algorithm learns your past behavior to find patterns

Supervised Learning Model

Teaching an algorithm to look for a specific outcome based on historical behavior

Primary Data

Collected to address our research needs; qualitative or quantitative

Focus Groups

Small group led by a moderator to discuss a topic; in person or online. 6-8 ppl

Depth Interviews

Researcher talks to one participant at a time, asking open-ended questions; useful for determining consumer attitudes, but time consuming. In person, over the phone or online

Semi-Structured Interview

Respondents are asked to write a short essay response to specific open-ended questions

Ethnographic Research

Watching and interacting with people in their natural environment; can be online (netography) or in person

Surveys

Asking a series of questions to prove answers to who, what, where, why and how questions; mostly online

Reliability

Will we get the same results if we conduct research again?

Validity

Are enough people involved in the research to represent the target market?

Experiments

Changing 1 or more variables to determine which most effects the outcome

Observations

Watching peoples actions and tracking relevant behavior.

Mystery Shoppers

People there to observe employees

Behavioral Targeting

Tracking where people go and their behaviors when shopping. (Ex following a person around target as they shop)

Social Media and Data Mining

Going online and looking at people’s reactions to things

Goods

Tangible products with physical dimensions and qualities

Services

Intangible products that can’t be touched, weighed or measure like a hotel

Ideas

Intangible products that represent thoughts or optinions

Experiences

Products that are difficult to observe until consumed. Ex) vacation, cruise

New to the Market

Products that have never been seen and create a new market of consumers; make up the smallest percentage of all enw products.

New-Category Entries

Products that are new to the company but not new to the market; help firms compete

Product Line Extensions

Products that extend and add to a companies established product line; very common in the market

Product Line

A group of related products marketed by the same firm

Revamped Products

Products with new packaging, different features, and updated designs and functions

Stage 1: New-Product Strategy Development

Must align product development with the overall marketing strategy; this helps determine the direction to take when developing a new product

Step 2: Idea Generation

Once stage 1 is established, a set of product concepts is generated to identify potential new products. Few of these ideas will ever become products, only 1 out of 100 ever make it.

Stage 3: Idea Screening

Evaluate product ideas to determine how each fits in the new product strategy; may ideas will be rejected at this stage.

Stage 4: Business Analysis

Once the idea has passed the screening stage, we must determine its profitability. Estimate costs, identify sales price (What price are consumers willing to buy this) and estimate product demand.

Stage 5: Product Development

Find out if the product can be produced in a way that meets both customer needs and profit goals; prototype.

Primary packaging

What we see on the shelf. Represents company’s brand image to the consumer.

Secondary packaging

Used by retailers and shippers. How easy it is to store/move the product.

Stage 6: Test Marketing

Introduce the new product to a limited market to test consumer response. These are selected by how well they match the target market for the product based on demographics, income levels and lifestyles.

Stage 7: Product Launch

If the product passes test marketing, we are ready to produce it for the market place.

Very High Risk

Product fails to sell, meet needs/wants of customers and are dangerous or defective.

High Risk

Quality is not up to customer standards, not accepted well in market place

Moderate Risk

Supplier cost savings aren’t achieved. Competitors copy products.