Marketing 409 Exam 2 TAMU

What is marketing research?

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

What are the steps in marketing research? (5)

define the problem, design the research project, collecting data, interpreting research findings, reporting research findings

What happens in the first step of the marketing research process? (Define the problem) (4)

Launch Study

-focus on building a perspective

-find dimensions of problem

-broad (exploratory)

-Narrow (decision oriented)

What happens during Kraft and Data collection?

Want more sales on a product

-collected data about listeners of certain radio stations

-wanted to put ads on stations with target market at certain times

What to look for when evaluating the quality of secondary data sources (3)

bias, validity, reliability

Methods of primary data? (3)

observation, experiments, focus groups

What happens with a focus group? (3)

Moderator directs discussion, links with other types of research, paid & recorded

How to start a questionnaire construction? (2)

Decide what info you want to know and develop ideal model

What happens when designing the research project? (2) (Steps in research)

design overall plan for getting info needed to address problem & develop hypothesis

Exploratory Research?

to gather more info about a problem or to make a tentative hypothesis more specific

Descriptive Research?

to clarify characteristics of something to solve a problem

Causal Research?

Assuming that X causes Y

Primary Data

observed/recorded directly from subjects

Secondary Data

compiled inside and outside of organization for some other purpose besides current study (less favorable, more convenient)

Internal Sources of Secondary Data

from inside the company but taken from past marketing activity

External Sources of Secondary Data

from outside the company

Collecting primary data takes ____________ to process than collecting secondary data

more time

Probability Sampling

every element in population has known chance of being selected for study

Stratified Sampling

divides population into groups according to attribute, then random sample from each group

Non-probability Sampling

no way to calculate a persons chance of being chosen

Quota Sampling

divides population into groups and then arbitrarily choose people from each group

***only sampling people that wear glasses when researching frames

What is the biggest problem facing the research industry?

nonresponse

Disadvantages of mail surveys? (2)

low response rate & misleading results

****people who take the time are more educated with higher income

Advantages (3) and Disadvantages (2) of Phone Surveys?

A:

-less effort

-quick

-can gain rapport

D:

-not many participate

-no visual aid

Personal Interview Survey (4)

face to face, flexible, rapport, long=more info

Customer Advisory Boards

small group of actual customers act as sounding boards for new ideas

Questionnaire Construction

questions should be clear, easy, and focused

Start out easy and less personal to build rapport

Pilot Test

give survey to part of group you will survey to show flaws

Common Mistake in questionnaire construction?

asking questions that the researcher wants to find out but doesn't get useful info

Marketing Info Systems (MIS)

framework for managing/structuring info gathered from multiple sources

-gives continuous info

Marketing Decision Support Systems (MDSS)

customized computer software that helps decision making

Marketing Research Association

develop codes of conduct and guidelines for ethical marketing research

Cookies

can store strings of text in users computer to help customize website use but can have privacy issues

Issues with international Marketing Research?

Must take socio-cultural, economic, political, effects into account--can change data

2 Pronged approach to international marketing research

1. detailed search/analysis of secondary data to understand environment and focus issue

2. field research with many methods

Brand

name, term, sign used to identify the products of one seller

Brand name

spoken part of brand

-important that it doesnt become generic name bc it wont differentiate it

Brand mark

sign or logo

trademark

legal designation of exclusive use of brand

value of branding

eliminates randomness in product selection & makes repeated purchases easier

Brand loyalty

customers favorable attitude towards a specific brand and likelihood of consistent purchases

Example of need for brand loyalty?

toyota had safety issues and customers didnt leave

Brand Recognition

when you consider a brand as possible substitute when your brand isnt available

*lowest of brand loyalty

Brand Preference

Definite loyalty, seek out the brand but will accept substitute if not available

Brand Insistence

Strongest Brand loyalty, wont buy substitute, not very common

Brand Equity

marketing and financial value associated with brands strength

Major Elements of Brand Equity (4)

1. brand name and awareness-leads to familiarity

2. brand loyalty-reduces vulnerability

3. brand associations-like characters

4. perceived brand quality

Manufacturer Brands

actual manufacturer puts their brand on product

*ford trucks

good when you want complete control of brand

Private Distributor Brands

retailer puts brand on

*kenmore at sears

Generic Brand

no brand

for people who are price sensitive, undifferentiated products, economic downturn

A name brand should...(4)

1. be easy to remember

2. suggest intended use

3. suggest specific traits of product

4. avoid negative connotation

hierarchy of protection for brands (5)

1. fanciful

2. arbitrary

3. suggestive

4. descriptive

5. generic (not protected)

individual brands

each product has a different name

easier to aim specific brand names at specific market segments

Family brands

take brand name and use across different products

*heinz ketchup, pickles, soup

Advantages/Disadvantages of family branding?

A:

-gives familiarity to consumer with name recognition

-helps introduce new products

D:

-if one product fails then negative connotation can rub off

Brand Extension Branding

using existing name for new and improved products

*Miller has Miller Light, Miller Ice

Co-Branding (def & examples)

Using 2 different brands for one product

*Ford Expeditions

*kraft lunchables

*Oscar Meyer and Kraft cheese

Co-Branding

uses trust and confidence already in other brands, when fails both deemed as failures, must complement each other in consumer mind

Brand Licensing

agreement between 2 companies where 1 company allows another company to use its brand on its products for licensing fee

*licensee responsible for all costs of the product

Advantages and disadvantages of brand licensing?

A:

-extra revenue, free publicity, trademark protection

D:

-lack of control of manufacturing, can hurt company name, can confuse consumers

Packaging

prevents product tampering, can deter shop lifters, can offer convienience (individual kleenex packets)

Packaging considerations

-buyers willing to pay but limited

-cost

-tamper resistant

-consistency

-promotion

-color

-meets needs of seller

-environmentally responsible

Family Packaging?

consistency of packaging within organization to promote overall company image

altering packaging

marketing strategy if old packaging is out of style

secondary use packaging

marketing strategy

has a purpose other than original use

*butter container used to store leftovers

Category consistent packaging

packaged in line with packaging processes of category

*ketchup and mustard all have usual packaging

innovative packaging

using unique items that adds to use of product

*like cap on sports bottles

multiple packaging

more than one product in the package

handling improved packaging

changing packaging to make it easier to handle in distributions

criticisms of packaging

functional problems, doesn't work well, safety issues, can be deceptive

labeling can be used for...(4)

1. identification

2. promotion

3. information

4. legal purposes

part of package or separate

Universal Product Code (UPC)

on labeling a barcode that identifies product and is used for inventory and pricing

nutrition labeling act 1990

requires FDA to review food labeling and packaging

concerns over labeling

green labeling, made in US (is it??), is it really cholesterol free

Product line extentions

take product and extend it to meet slightly different needs

-low risk change, can capitalize of familiar brand name

KEEPS OLD PRODUCT IN THE MIX

Product Modification

modify product and delete old one

(quality, feature, and aesthetic)

Quality modification of product

make more durable or reliable

(better materials or engineering)

Issues with quality modification of product

costs more (will customers pay?)

do customers care?

can they see a difference?

Feature/Functional Modification of product

makes product easier to use, or more versatile or safer

*lawn mowers

Idea generation in product generation

try to develop pool of new product ideas

-usually have someone in charge

-can come from customers, salesmen, execs, research, competitors

Slow Hunch

new product innovation, takes long time to become accessible/useful, collide with each other to form full ideas

Aesthetic Modification of product

makes product more appealing to senses

*coke changing flavors

Steps of new product generation

1. idea generation

2. screening

3. concept testing

4. business analysis

5.product development

6. test marketing

7. commercialization

Screening in product generation

asses idea of new product

-does it meet company mission?

-can company's resources make it?

Concept testing in product generation

test concept in group of potential customers (focus groups or interviews)

Business analysis in product generation

review product with what it would cost, sales, and profits

product development in product generation

create physical product

-is the idea feasible? economic?

Test marketing in product generation

release into certain stores and monitor sales

(test cities should have alot of people and competitors)

Highest risk for companies?

not innovating

wont survive if mix doesnt adapt to needs of customers

Product differentiation

elements that distinguish one product from another

(create products so customers can see them as different)

3 aspects of product differentiation

quality, design, features

product quality and features differentiation

traits allow a product to act as expected in satisfying customer needs

-differs between consumers and some put more emphasis on price

parts of product quality (2)

level of quality, consistency of quality

Product design-differentiation

how a product is conceived, planned and produced

*one of best competitive advantages

Styling (product design)

physically how the product looks

determines how fast it sells

product features

specific traits that allow a product to perform tasks

*nike walking shoe, running

Usually, more features means...

higher price

Product support services

customer services that include human or mech efforts by company

adds value to product, delivery, instillation, etc

Product positioning

Creating and maintaining certain concepts of a product in a customers mind

*crest fights cavities

Marketing segmentation and positioning

when segmentation is used, positioning happens automatically