Creating and capturing value + marketing research

marketing

process by which individuals and groups obtain what they need and want through creating and exchanging products of value with others

purpose of marketing

1. to connect consumers with products and services that satisfy their needs.

2. It involves understanding consumer needs, delivering value, and fostering relationships to increase sales and brand loyalty.

3. Promote & Communicate – Inform customers about the product through advertising and branding.

4. Drive Business Growth – Increase sales, revenue, profit, and market share.

marketing process

1. understand the market place and customer wants and needs

2. design customer driven marketing strategy

3. construct integrated marketing program that delivers superior value

4. building profitable relationships

5. capture value from customers to create profit and consumer equity

demand

• wants backed by purchasing power

• quantity of a product or service that consumer is willing and able to buy at a given price at a given time

exchanges

act of obtaining an object by offering something in return

transactions

trade of values(goods or services) between people

relationship

long term connection with internal and external stakeholders

customer value

benefit a customer gains from owning and using a product vs. the cost of purchasing the product

customer satisfaction

level of happiness customer feels when a product’s actual performance meets or exceeds their expectations

types of customer value

1. functional value

2. monetary value

3. social value

4. psychological value

functional value

solution an offer provides to the customer

monetary value

price paid is relative to perceived worth of an offering

social value

extent to which owning a product or engaging in a service allows customer to connect with others

psychological value

extent to which a product allows consumers to express themselves or enhances their emotional well being

market offering

products, services, experiences that satisfy wants and needs

market

all actual and potential buyers and sellers of a good or service

market management orientation

approach that a business adopts when it comes to managing its marketing activities and strategies

product orientation

focuses on quality, features and innovation of a product

• consumers will get products that offer quality, performance, and innovative features

production orientation

focuses on making products efficiently and making them available at low costs, assuming customers will purchase them cause they are affordable and available

selling orientation

focuses on actively promoting and selling a product or service

marketing orientation

focuses on understanding customers needs and wants and delivering superior satisfaction compared to compertitors

social marketing orientation

focuses on creating goods or services that not only satisfy customer needs and wants but they also contribute positively to societal welfare, and company interests in the short run

customer relationship management
(CRM)

a strategy for managing a company's interactions with current and potential customers.

building customer relationship

1. CRM

   1. customer value

   2. customer satisfaction

   3. customer relationship tools

2. changing nature of customer relationship

   1. selective and deeper relationship with certain customers

   2. consumer generated marketing

3. partner relationship management

   1. partners inside firm and marketing partners outside the firm

capturing value from customers

• customer loyalty and retention

  • repeat purchases

• growing share of customer

  • number of products customers can buy

• building customer equity

  • strengthening long term customer relations

• strategies

  • loyalty programs, discounts, promotions

Customer equity

total profit a business earns from its customers over time.

marketing research

systematic design, collection, analysis and reporting of data relevant to specific marketing situation firm is facing

role of marketing research

• it helps in decision making but it does not replace

3 roles:

• descriptive role

• diagnostic role

• predictive role

descriptive role

gathering and presenting factual statements

ex: customer attitude towards product

diagnostic role

explaining data

ex:impact on sales when packaging changes

predictive role

addressing the question “ what if”

ex: what will happen to market share if price is increased by 10%

functions of marketing research

• understanding customer needs and preferences

• identifying marketing opportunities

• evaluating competitors

• measuring market effectiveness

• reducing risks

why managers use marketing research

• helps reduce risks in new product launches

• able to identify strengths and weaknesses of a product

• helps in decision making about pricing, distribution method and advertising method

• provide insight into customer preferences to help keep existing customers

weaknesses of market reasearch

• can contain erros

• does not always predict the future accurately

• data can be misinterpreted or outdated

• decision making should consider experience and external factors

marketing research process

1. defining problem and research objectives:

   • define research purpose clearly

   • marketing managers and researches must work together and agree on research objectives

2. developing research plan:

   • decide type of data to collect(primary&secondary)

   • decide research method(observation, survey, experiment)

   • decide method of data analysis( qualitative & quantitative)

   • decide sampling size and method

   • plan for costs, time, resources to use

3. implementing research plan:

   • gather raw data

   • prep for data analysis

   • identify relationship and patterns

   • cardinal rule of collecting data

4. interpreting and reporting findings

   • assess results by finding relationship between variables or differences between groups

   • findings are reported in a clear and strategic manner

primary data

collected for the first time for a specific research problem

• Questionnaire

• Interview

• Observation

• focus group

advantages of primary data

• To find out about completely new markets

• information gathered will provide direct answers to the questions the business is asking.

• info is up to date

disadvantages of primary data

• costly especially for new business

• time consuming

• • Newly formed businesses have no customers yet to gain important data from.

secondary data

pre existing data collected for another purpose

advantages secondary data

• cheap

• quick to obtain

• allows for comparison across different sources

• Large samples are often used, which increases accuracy and reliability.

disadvantages secondary data

• might be outdated

• might not be relevant to current research problem

• might not be available for new product development

• Big data is so vast that it is not easy to analyze and to make useful for an individual business. 

• data collection method and accuracy may be unknown

Qualitative data

non-numerical information that provides insights into consumer behaviors, motivations, opinions, and emotions. 

• face-to-face interviews like focus groups, observation, and long interviews, without mathematical concern.

Quantitative data

numerical data that can be measured, counted, and analyzed statistically. 

• systematic procedures to obtain data like experiments and mathematical modeling, using questionnaires as data collection tools.

Probability Sample

• simple random sampling

• systematic random sampling

• stratified

• cluster.

Non-probability Sample

• convenience

• quota

• judgment.

cardinal rule of collecting data

obtain and record as much useful data as possible, but within the limits of time and money.

Processing research data includes

preparation of data for analysis and analyze them.

Responsibilities of the researcher

• Preserving respondent privacy

• Avoid mental stress for respondents

• Avoid using dangerous equipment or techniques

• Avoid deception

• Provide guidance on the research usage

• Provide confidentiality

Software Support for Data Analysis

• Database management software – for sorting and retrieving data

• Model base management software – to manipulate data

• A dialog system that allows for exploration of data and produces information for decision making.

• Stata

• SPSS

• Excel