Principles of Marketing Chapters 5, 6

Marketing research
process of planning, collecting, and analyzing data relevant to a marketing decision
Who provides marketing research?
producers, ad agencies, marketing research companies
Project approach (to marketing research)
addresses a specific problem or opportunity, more focused, in a finite time period

ex. Frank Luntz – estate tax vs. death tax, global warming vs. climate change

Systems approach (to marketing research)
provides marketing information on a consistent basis, used internally, broad general purpose

ex. sales report

Marketing Information System (MIS)
A set of procedures and methods for the regular, planned collection, analysis, and presentation of information for use in making marketing decisions

ex. Sales analysis reports

When NOT to use Project approach (to marketing research)
when results are unactionable,
when managers cant agree on what info they need
when the info already exists
when research is unethical
Qualitative data
language, talk to people about the problem
Quantitative data
numbers, x causes y
Decision problem
the problem the research hopes to analyze, should be well defined and structured from beginning

ex. Why are store revenues so low?

Discovery oriented decision problem
what is going on? (what/why)
Strategy oriented decision problem
How do we best address this? (more about implementation)
Research Problem
a restating of decision problem in research terms

Ex. This: Why are store revenues so low?
Turned to this: Among the possible explanations for why store revenues are low, what is the most likely culprit?

Types of research
exploratory
descriptive
causal
Exploratory research
qualitative, small scale
Examples of exploratory research
secondary research
Depth interviews
Focus groups
Case analyses
Descriptive research
quantitative,
ex. how often do you go to these sites?
Examples of Descriptive Research
questionnaires
Types of Descriptive Research
Longitudinal, cross sectional
Longitudinal study
fixed sample of elements repeated over time, seeing if there’s change over time
Cross Sectional Research
single point in time, research time and contextually dependent – Most common
Causal research
quantitative, cause and effect
examples of causal research
experiments
market tests
Lab experiment
a situation with exact conditions, control of variables other than x and y is maximized
Field experiment
a situation with fluid conditions, control of variables other than x and y is challenging
Primary Data
what YOU have collected

adv – fits with research problem, timely, accurate, complete
dis – time and money costs, harder to get

can be obtained by either communication or observation

Secondary Data
what OTHERS have collected
You should start with this – usually used for exploratory research

adv – saves time/money
dis – hard to answer a specific research question

internal (from your own company) or external (like Nielson or Axiom)

Ontological Assumption
what is reality? does it exist in one or many forms?

ex. is there an obesity crisis? what is obesity?

Axiological Assumption
what is the overriding goal of research? verstein (complete understanding)
Epistemological Assumption
Is knowledge time and contextually dependent? What is causality? What does the design look like?

ex. what is beauty? What is wealth?

The Contingency Approach
methods aren’t comparable, cant answer the same questions with the same research
The Interdisciplinary Approach
either method can answer the same question, approaches tap into different dimensions of the same phenomenon
The Relativist Approach
phenomenon will keep changing based on culture changing, research is time and contextually dependent, no absolute truth

driven by epistemological approach

Emic Analysis
studies culture from within, a little biased, voice of participant

ex. can be done using depth interviews

Etic analysis
voice of researcher, saying what the person meant
Open ended question
An interview question that encourages an answer phrased in respondent’s own words.

respond in our own words

Closed ended question
An interview question that asks
the respondent to make a selection from a limited list of responses.

multiple choice/ranking

Scaled response question
A closed-ended question
designed to measure the intensity
of a respondent’s answer.

range of intensity

Sample
a subset from a large population

research will only apply to them

Universe
The population from which a sample will be drawn
Probability Sample
A sample in which every element in the population has a known statistical likelihood of being selected.
RANDOM
Random Sample
A sample arranged so that every element of the population has an equal chance of being selected.
Non Probability Sample
Any sample in which little or no attempt is made to get a representative cross-section of the population.
NOT RANDOM
Convenience Sample
A form of nonprobability sample using respondents who are convenient or readily accessible to the researcher.

ex. using students for marketing research at belmont

T-Test
way to analyze data, looks at the statistical difference between 2 groups
Chi-Square
way to analyze data, model of fit between multiple groups
Regression
Regression
sorta looks like this picture, want ratio numbers to go up to infinity

more power with infinity

ANOVA
analysis of variance, difference between 2 groups,

less power with categorical

Moderator variable
multiplication
Mediation Variable
subtraction
Types of Errors
Measurement, Sampling, Frame, Random
Measurement Error
Error when there is a difference between the information desired and the information provided by research
Reliability analysis
helps avoid measurement analysis
Sampling Error
Error when a sample somehow does not represent the target population.
Sampling Error
Error when a sample drawn from a population differs from the target population.
Random Error
Error because the selected sample is an imperfect representation of the overall population.
Market
1. People or organizations with
2. needs or wants that can be satisfied by the product
3. and with the ability and
4. the willingness to buy that offerings within that category.
Market Segment
subgroup of people who share some of the same characteristics that cause them to have similar product needs
Criteria for successful segmentation
1. Substantial (it will provide a profitable market share)
2. Identifiable and Accessible (done through research)
3. Responsive
4. Mutually exclusive and collectively exhaustive
Market Segmentation
process of dividing the market into meaningful, relatively similar, identifiable segments or groups.
Bases for segmentation
Value Based (what ppl need) and Profile Based (demographics, etc.)

Not mutually exclusive (can put user based with occasion based)

Benefit Based Segmentation
[Part of Value Based Segmentation]

segmentation based on benefits of the offerings

ex. leaf car

Occasion Based Segmentation
[Part of Value Based Segmentation]

segmentation based on usage occasion

Bases for Profile-Based Segmentation
Demographics (age, gender, etc)
Geography (climate, terrain, urban/rural, etc.)
Psychographic Profile (personality traits, lifestyle, motives)
Behavioral Profile (consumer behavior towards a product)
User-Based segmentation
segmentation based on consumers usage

80/20 principle – 80% of profit made from 20% of customers

Targeting
identify segmented groups and develop one to one message for them (separate marketing mix for each segment)
Mass Marketing (undifferentiated) targeting strategy
A marketing approach that views the market as one big market with no individual segments and thus requires a single marketing mix.

adv – cost savings
dis – lacks innovation, more susceptible to competition

usually used for staple goods like foods
ex. snickers, milk, credit card

Concentrated Targeting Strategy
A strategy used to select one segment of a market for targeting efforts.

adv – concentrated, strong positioning
dis – segments too small

Multisegment Targeting Strategy
A strategy that chooses two or more well-defined market segments and develops a distinct marketing mix for each.

(most companies do this)

adv – greater financial success
dis – high cost of marketing, cannibalization

ex. Cheerios

Cannibalization
when you steal customers from yourself

ex. creating a new kind of cheerios makes old cheerios customers buy new kind instead of old kind

One-To-One Targeting Strategy
An individualized marketing method that utilizes customer information to build long-term, personalized, and profitable relationships with each customer.

Can be done much easier today with social media (using info from Axiom, etc.)
ex. put your own image on your credit card

Value Proposition
should deliver superior value to customers
Types of Positioning Statements
Comparative, noncomparative
Comparative Positioning Statement
Compares product to something else

ex. Gatorade is a smart beverage choice for athletes because it rehydrates, replenishes, and refuels
in ways water can’t.

This isnt allowed in all countries

Noncomparative Positioning Statement
does not compare product to something else, just lists benefits

ex. Gatorade is a smart beverage choice for athletes because it rehydrates, replenishes, and refuels.

Perceptual Mapping
use as a tool for rebranding, can see your position in the market and figure out where you want to be.