MARK3000 - Test 2

marketing research

set of techniques and principles for systematically collecting, recording, analyzing, and interpreting data that can aid decision makers involved in marketing goods, services, and ideas

Step 1 - marketing research process

1. Define objectives & research needs

Step 2 - marketing research process

2. Design the research

Step 3 - marketing research process

3. Collecting the data

Step 4 - marketing research process

4. Analyzing data and collecting insights

Step 5 - marketing research process

5. Developing & implementing an action plan

secondary data

pieces of information that have already been collected from other sources and usually are readily available

primary data

data collected to address specific research needs

inexpensive secondary data

* free / inexpensive
* ex: census data, info from trade associations, reports published in magazines

why is __inexpensive__ secondary data NOT adequate?

relevance of data collected might not fit the research question at hand, and data found on the internet may not be accurate

syndicated secondary data

* purchasable for a fee
* these types of data providers offer info on shifting brand preferences & product usage in households, often gathered from scanner and panel data

2 types of syndicated secondary data

scanner data & panel data

scanner data

a type of syndicated external secondary data used in quantitative research that is obtained from scanner readings of UPC codes at check-out counters

panel data

information collected from a group of consumers, organized into panels, __over time__

information

organized, analyzed, interpreted data that offer value to marketers

data warehouse

large computer files that store millions or even billions of pieces of individual data

data mining

the use of a variety of statistical analysis tools to uncover previously unknown patterns in the data stored in databases or relationships among variables

\
__sifting__ through all data points about all customers and making sense from it

churn

the number of consumers who stop using a product or service, divided by the average number of consumers of that product or service

big data

data sets that are too large and complex to analyze with conventional data management and data mining software

qualitative research

informational research methods, including observation, following social media sites, in depth interviews, focus groups, and projective techniques

quantitative research

structured responses that can be statistically tested to confirm insights and hypotheses generated via qualitative research or secondary data

observation

an exploratory research method that entails examining purchase and consumption behaviors through personal or video camera scrutiny

virtual community

online networks of people who communicate about specific topics

sentiment mining

data gathered by evaluating customer comments posted through social media sites such as Facebook and Twitter

in depth interview

an exploratory research technique in which trained researchers ask questions, listen to and record the answers, and then pose additional questions to clarify or expand on a particular issue

\
limited number, somewhat unstructured, time-consuming & costly

focus group interview

A research technique in which a small group of persons (usually 8 to 12) comes together for an intensive discussion about a particular topic, with the conversation guided by a trained moderator using an unstructured method of inquiry.

the 5 v’s of big data:

volume, variety, velocity, veracity, and value

big data - volume

* data in large quantities
* terabytes to exabytes of existing data to process

big data - variety

* data in many forms
* qual & quan obtained from different media formats

big data - velocity

* data moving quickly
* streaming data, requiring milliseconds to seconds to respond

big data - veracity

* data in doubt
* trustworthiness of data due to accuracy and reliability

big data - value

* data into money
* usefulness of data compared to its cost

characteristics of marketing analysis - marketing decisions

* making marketing mix decisions
* determining which segments to target
* understanding & managing customer segments
* creating micro-segmentation strategies at a local level

characteristics of marketing analysis - tools & methods

* descriptive, predictive, & prescriptive analytics tools
* churn / churn rate
* active analytics tools

survey

a systematic means of collecting information from people that generally uses a questionnaire

questionnaire

A form that features a set of questions designed to gather information from respondents and thereby accomplish the researchers' objectives; questions can be either unstructured or structured.

unstructured questions

open-ended questions that allow respondents to answer in their own words

structured questions

close-ended questions for which a discrete set of response alternatives, or specific answers, is provided for respondents to evaluate

experimental research

A type of conclusive and quantitative research that systematically manipulates one or more variables to determine which variables have a causal effect on another variable.

biometric data

digital scanning of the physiological or behavioral characteristics of individuals as a means of identification

bottom line of ethics of collecting info on consumers

marketing research should be used only to produce unbiased and factual info (AMA principles)

facial recognition software

used to detect individuals from video frames/digital images (ex: Kelloggs recording participants and looking for reactions to different ads)

neuromarketing

process of examining consumers’ brain patterns to determine responses to marketing communications or products to develop marketing tactics / strategies

social media research

monitoring blogs, online communities, and sentiment mining

sentiment mining

__sifting__ through all phrases said to see if it generates the intended buzz

experiments

changing a variable and analyzing results, usually changing one of the 4 P’s and looking at either sales/awareness, field or lab

types of surveys

telephone interviews, mail and internet surveys, mail intercept interviews, in person interviews

issues with surveys

interviewer bias (may change person’s response to questions) and potential consumer unwillingness to participate

likert scale

givng consumer categories and a scale to rate them on

semantic differential

survey options that are on opposite ends of the spectrum

ex: excellent ------ awful

types of questions to avoid

leading, double barreled, jargon/inappropriate terminology, and q’s where the consumer can’t answer, improperly worded q’s

sampling frame

device or list from which the potential respondents are selected

simple random sampling

letting software randomly generate the sample

systematic random sampling

taking every nth person to be in the sample

stratified random sampling

splitting the sample into groups, then taking random ppl in those groups using ether systematic or simple random sampling

convenience sample

where you get people to be a part of a sample without randomizing, just by chance

product

anything that is of value to a consumer and can be offered through a voluntary marketing exchange

core customer value

the basic problem solving benefits that consumers are seeking

actual product

the physical attributes of a product including the brand name, features/design, quality level, and packaging

associated services (augmented product)

the non-physical attributes of the product including product warranties, financing, product support, and after-sale service

consumer product

products and services used by people for their personal use

specialty products/services

products or services toward which the customer shows a strong preference and for which he or she will expend considerable effort to search for the best suppliers

shopping products/services

those for which consumers will spend time comparing alternatives such as apparel, fragrances, and appliances

convenience products/services

those for which the consumer is not willing to spend any effort to evaluate prior to purchase

unsought production/ services

products or services consumers either do not normally think of buying or do not know about

product mix

the complete set of all products offered by a firm

product lines

groups of associated items, such as those that consumers use together or think of as part of a group of similar products

breadth

number of product lines offered by a firm, also known as variety

depth

number of categories within a product line

cannibalize

the negative impact on a firm’s sales, profits, or market share when one product closely competes w/ a similar product offered by the same company

what do brands include?

name, URLs, logos & symbols, characters, slogans, jingles/sounds

advantages of brands

* facilitate purchases
* establish loyalty
* protect from competition & price competition
* are assets
* reduce marketing costs
* impact market value

brand equity

set of assets + liabilities linked to a brand that aadd to/subtract fro the value provided by the product/service

5 components of brand equity

perceived value, brand associations, brand loyalty, and brand love(lovemark), brand awareness

brand equity - perceived value

the relationship between a product's or service's benefits and its cost - how do retailers create value for consumers?

brand equity - brand awareness

Measures how many consumers in a market are familiar with the brand and what it stands for; created through repeated exposures of the various brand elements (brand name, logo, symbol, character, packaging, or slogan) in the firm's communications to consumers.

brand equity - brand association

the mental links that consumer make between a brand and its key product attributes; can involve a logo, slogan, or famous personality

brand equity - brand loyalty

occurs when a consumer buys the same brand's product or service repeatedly over time rather than buying from multiple suppliers within the same category

brand equity - brand love (lovemark)

“loyalty beyond reason”

consumers are passionate about a brand

manufacturer/national brands

brands owned and managed by the same manufacturer

ex: Kraft, Nike, Coca-Cola, KitchenAid, Sony

retailer/store brands

Products developed by retailers. Also called private-label brands.

ex: “smartly” by Target

family brand

a firm's own corporate name used to brand its product lines and products

individual brands

the use of individual brand names for each of a firm's products

brand extension

use of same brand name for new products being introduced to the same or new markets

line extension

use of the same brand name within the same product line and represents an increase in a product line's depth

brand dilution

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

co-branding

the practice of marketing two or more brands together, on the same package or promotion

brand licensing

a contractual arrangement between firms, whereby one firm allows another to use its brand name, logo, symbols, 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

5-year old test

 if you can describe the packaging to a 5 year old and they find it in a store, then you’ve succeeded in package design & marketing. congrations

functions of packaging

contain & protect, promote, facilitate storage, use, and convenience, facilitate recycling, provide information

primary package

the packaging the consumer uses, such as the toothpaste tube, from which he or she typically seeks convenience in terms of storage, use, and consumption

secondary package

the wrapper or exterior carton that contains the primary package and provides the UPC label used by retail scanners; can contain additional product information that may not be available on the primary package

sustainable packaging

product packaging that is ecologically responsible

advantages of packaging/labeling strategy

* offers of promotional tool (ex: “new” or “improved”)
* changes/updates can attract new target markets and/or appear more up-to-date, also make customers believe they are receiving smth tangible in return for higher prices even when the product is untouched
* highlight benefits of products to consumers (really good communication tool)

why do firms create new products?

1. changing customer needs
2. market saturation
3. managing risk through diversity
4. fashion cycles
5. improving business relationships

market saturation

without new products, the value of the firm will ultimately decline

managing risk through diversity

firms can create a broader portfolio of products, helping them diversify their risk & enhance firm value better than a single product can

fashion cycles

most sales come from new products since fashion trends have short life cycles (like apparel, arts, books, and software markets)

improving business relationships

new products can function to improve relationships with suppliers