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Jaron Warmack posted Feb 1, 2018 9:27 PM
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Primary or Secondary
Ranking
Market Research & Justification
s
1
5. Demographic breakdown of Scadona’s population by sex,
age, gross income, education, disposable income, family size,
and occupation (Cost = $2,000)
I chose this one as first because I think this is one of the most
important items to consider before breaking into a market. The
product is targeted towards a specific group, and if the
population does not contain an adequate number of people then
the venture is pointless. This information is secondary becuase
this was pulled from outside resources.
s
2
7. Report of fifteen-year summary of economic trends in the
area, shopping centers, occupations, disposable income,
clothing sales, and specialty shops (Cost = $1,800)
Looking at trends in a specific area is very important when
deciding to enter a market. This secondary source of
information was able to be pulled without conducting specific
research for this project, but is necessary in understanding if a
new business could thrive in that market.
s
3
10. List of all current useable retail space openings in the
area with rental rate per square foot, turnover rate for that spot
and shopping center, population within one square mile with
income ranges, housing values, occupations, ages and family
sizes (Cost = $2,400)
Location is key in deciding where to put a new business, you
want to be close enough to other businesses to drive
competition, but not too close where you start cannibalizing a
market. This secondary data research is considered as such
because it is able to be gathered from outside specific reaserch.
s
4
1. A list of the gross sales figures of all existing women’s
fitness spas in Scadona for the last two years (Cost = $400)
Understanding how profitiable like businesses can give you a
taste to see if your business has the chance to be successful.
This is secondary data because the information would be public
record and is not specific to this exact project.
s
5
2. Map of the Scadona area showing major traffic routes,
current shopping centers and types of stores, and locations of
current fitness spas. (Cost = $1,500)
This secondary research goes back to the available locations
point that was made earlier. Location is very important,
especially when it comes to fitness clubs. You want to be in
close proximity to both residential and work areas.
p
6
6. Mail survey of 300 subscribers to women’s magazines,
questioning their fitness awareness, need for complete fitness
services, amount of money spent on fitness activities annually,
frequency of patronage of fitness spas (Cost = $5,000)
This piece of primary data can really get your customers
invovled. You are asking women about their habits so that you
can better customize an experience for a customer. This is
primary because it is customized for this project with a specific
objective.
p
7
4. Telephone survey of 500 randomly selected households in
the area designed to determine consumers' familiarity with your
company name, interest in spas like this, and awareness of other
spas and their advertising (Cost = $5,000)
This is primary research because it is customized to this project.
It is slightly more personal and allows you to get an
understanding of brand awareness and penetration in a market.
p
8
8. Focus group report of twelve people concerning attitudes
toward prices of fitness services, services expected of a spa,
appropriate atmosphere, type of personnel, and seasonal
changes (Cost = $2,800)
These types of primary reaserch are important to really
understand your target market and their needs. In focus groups
you can ask specific questions and get real time answers. You
can also tailor follow-ups to these participants. It also gives
these potential customers a first glimpse at the product and get
them excited and spread the news about the new business.
s
9
3. Color-coded map of the area showing home and commercial
property values (Cost = $1,000)
This is secondary data because it is easily accessed by the
public. I think it is important because you can better gauge
areas of prosperity.
s
10
9. List of all organizations, clubs, and restaurants that cater
to the in-crowd and their manager's names (Cost = $800)
While I ranked this last, I do think there is value in this
secondary reasearch. Word of mouth marketing is very
important, especially with the strong prescense of social media.
When the public is informed about a new service and can
experience it to its fullest they will share their experiences with
their friends which can drive more business. THis is secondary
becuase it is not specific to this project and can be pulled from
outside sources.
I think doing this exercise was very interesting and important
for a few reasons. First, before I started I thought that my most
important rankings would be primary resources, but as I was
going through the research I kept putting the secondary first.
Secondly, cost is a huge difference between primary and
secondary research. Primary is much more expensive, but that
makes more sense because these types of research are more
tailored for a specific end use.
less
What are the purpose and functions of human resource
management, and why are they important to ALL managers?
For this discussion activity, your scavenger hunt will consist of
finding an example of where an organization and management
excelled in taking care of and motivating employees, and then
provide an example or experience where an organization failed
in this area. Remember these examples can come from any
organization. If you do find applicable information on your own
organization while working on this discussion, use it where
applicable in your own SWOT analysis. These examples can be
from current events, historical instances, or classic examples, in
video or print.
Conduct a web search seeking two examples of where you
believe an organization’s human resource department has
performed exceptionally well or failed terribly in motivating
employees and creating an environment where employees want
to be loyal and stay with the organization.
· Discuss what you found during your web search.
· Provide a description of how effective motivational techniques
can and do affect all managers and organizations.
Chapter 5
Market Segmentation
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
14 e
Market Segmentation
Process of dividing a market into groups of similar consumers
and selecting the most appropriate group for the firm to serve
Target market: Group or segment a company selects to serve
2
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Figure 5.1 - A Model of The Market Segmentation Process
3
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Delineate The Firm’s Current Situation
Firms must do a complete situational analysis when embarking
on a new or modified marketing program
Aids in determining objectives, opportunities, and constraints to
be considered when selecting target markets and developing
marketing mixes
Intended to be a reminder of tasks to be performed prior to
marketing planning
4
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Determine Consumer Needs and Wants
Successful marketing strategies depend on discovering and
satisfying consumer needs and wants
Consumer needs and wants are translated into operational
concepts at a strategic level
5
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Divide Markets on Relevant Dimensions: Priori Versus Post
Hoc Segmentation
Marketing manager decides on the appropriate basis for
segmentation in advance of doing any research on a market
Priori segmentation
People are grouped into segments on the basis of research
findings
Post hoc segmentation
6
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Divide Markets on Relevant Dimensions: Relevance of
Segmentation Decision
Selecting appropriate dimensions requires:
Managerial expertise
Managerial experience
Previous research
Purchase trends
Managerial judgment
Consideration and research of sought benefits
7
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Divide Markets on Relevant Dimensions: Bases for
Segmentation
Benefit segmentation: Focuses on satisfying needs and wants by
grouping consumers on the basis of the benefits they are
seeking in a product
Psychographic segmentation: Focuses on consumer lifestyles as
the basis for segmentation
VALS: Psychographic approach
Stands for values and lifestyles
8
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
VALSTM Framework and Segments
Vertical dimension segments people based on the degree to
which they are innovative and have resources
Horizontal dimension represents primary motivations for buying
9
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Figure 5.4 - VALSTM Framework and Segments
10
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Geodemographic Segmentation
Identifies specific households in a market by focusing on local
neighbourhood geography
Creates classifications of actual, addressable, mappable
neighbourhoods where consumers live and shop
Nielsen PRIZM
11
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Develop Product Positioning
Positioning strategies used
Focusing on the superiority to competitive products
Based on use or application
Targeting particular types of product users
Relativity to a product class
Pitching directly against particular competitors
12
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Positioning Map
Visual depiction of consumer perceptions of competitive
products, brands, or models
Used to investigate how to position a product
Constructed by:
Surveying customers about various product attributes
Developing dimensions and a graph indicating the relative
position of competitors
13
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Figure 5.6 - Positioning Map for Automobiles
14
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Decide Segmentation Strategy
Not to enter the market
Segment but to be a mass marketer
Market to one segment
Market to more than one segment and design a separate
marketing mix for each
15
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Criteria for Segmentation
Viable segments must be:
Measurable - Firms must be capable of measuring its size and
characteristics
Meaningful - Should have sufficient sales and growth potential
to offer long-run profits
Marketable - Can be reached and served by the firm in an
efficient manner
16
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Design Marketing Mix Strategy
Selection of target market and designing the market should go
hand in hand
Marketing mix decisions are made in conjunction with target
market selection
17
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Chapter 2
Marketing Research: Process and Systems for Decision Making
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
14 e
Marketing Research
Process by which information about environment is generated,
analyzed, and interpreted
Aids decision making and is not a substitute for it
Reduces risks associated with managing marketing strategies
Vital for investigating the effects of various marketing
strategies after implementation
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Figure 2.1 - The Five Ps of the Research Process
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Purpose of the Research
Determines why research is needed and what it is to accomplish
By the end of this stage managers and researchers should agree
on:
Current situation involving the problem to be researched
Nature of the problem
Anything specific the research is designed to investigate
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Plan of the Research
Details the nature of the research including:
Explanation of sample design and measures
Analysis techniques to be used
Critical issues are whether:
Primary or secondary data are needed
Qualitative or quantitative data are needed
Company will conduct its own research or contract with a
marketing research specialist
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Primary versus Secondary Data
Primary data: Collected specifically for the research problem
under investigation
Secondary data: Previously collected data that could be used for
the problem at hand
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Figure 2.2 - Common Types of Information Available in a
Secondary Data Search
Source: Joseph F. Hair, Jr., Mary Wolfinbarger Celsi, David J.
Ortinau, and Robert P. Bush, Essentials of Marketing Research,
3rd ed. (Burr Ridge, IL: McGraw-Hill Education, 2013), p. 53
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
7
Qualitative Research
Involves face-to-face interviews with respondents
Designed to develop a better understanding of what they think
and feel concerning a research topic
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Types of Qualitative Research
Focus groups: Involve discussions among a small number of
consumers led by an interviewer
Designed to generate insights and ideas about products and
brands
Long interviews: Conducted by an interviewer with a single
respondent for several hours
Designed to find out how individuals perceive products and are
influenced by them
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Quantitative Research
Involves systematic procedures designed to obtain and analyze
numerical data
Types
Observational research: Involves watching people and recording
relevant facts and behaviors
Survey research: Involves the collection of data by means of a
questionnaire
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Quantitative Research
Experimental research: Involves manipulating one variable and
examining its impact on other variables
Mathematical modeling: Involves developing equations to
model relationships among variables
Investigates the impact of various strategies and tactics on sales
and brand choices
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Comparison of Data Collection Methods Used in Marketing
ResearchMethodAdvantages DisadvantagesFocus groupsDepth
of information collected
Flexibility in use
Relatively low cost
Data collected quicklyRequires expert moderator
Questions of group size and acquaintanceships of participants
Potential for bias from moderator
Small sample sizeMail surveysCost-effective per completed
response
Broad geographic dispersion
Ease of administration
Data collected quicklyRefusal and contact problems with certain
segments
Limited depth of response
Difficult to estimate nonresponse biases
Resistance and bias in collecting income, financial data
Lack of control following mailing
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Comparison of Data Collection Methods Used in Marketing
ResearchMethodAdvantages DisadvantagesTelephone
surveysCentralized control of data collection
More cost-effective than personal interviews
Data collected quicklyResistance in collecting income, financial
data
Limited depth of response
Disproportionate coverage of low-income segments
Abuse of phone by solicitors
Perceived intrusivenessPersonal
(in-depth)
interviewsMore depth of response than telephone interviews
Generate substantial number of ideas compared with group
methodsEasy to transmit biasing cues
Not-at-homes
Broad coverage often infeasible
Cost per contact high
Data collection time may be excessive
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Comparison of Data Collection Methods Used in Marketing
ResearchMethodAdvantages DisadvantagesProjective
techniquesUseful in word association tests of new brand names
Less threatening to respondents for sensitive topics
Can identify important motives underlying choicesRequire
trained interviewers
Cost per interview highMall interceptsFlexibility in collecting
data, answering questions, probing respondents
Data collected quickly
Excellent for concept tests, copy evaluations, other visuals
Fairly high response ratesLimited time
Sample composition or representativeness is suspect
Costs depend on incidence rates
Interviewer supervision difficult
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Comparison of Data Collection Methods Used in Marketing
ResearchMethodAdvantages DisadvantagesInternet
surveysInexpensive, quickly executed
Visual stimuli can be evaluated
Real-time data processing possible
Can be answered at convenience of respondentResponses must
be checked for duplication, bogus responses
Respondent self-selection bias
Limited ability to qualify respondents and confirm responses
Difficulty in generating sample frames for probability
samplingObservationCan collect sensitive data
Accuracy of measuring overt behaviors
Different perspective than survey self-reports
Useful in studies of cross-cultural differencesAppropriate only
for frequently occurring behaviors
Unable to assess opinions of attitudes causing behaviors
May be expensive in data-collection-time costs
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Company versus Contract Research
Many marketing research firms, advertising agencies, and
consulting companies do marketing research on a contract basis
Considerations
Schedules for task completion
Exact responsibilities of all involved parties
Cost
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Performance of Research
Preparing for data collection and actually collecting them
Depends on:
Type of research selected
Type of data needed
Cardinal rule - Obtain and record the maximal amount of useful
information subject to the constraints of time, money, and
respondent privacy
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Processing of Research Data
Preparation of data for analysis and their actual analysis
Includes editing and structuring data, and coding them for
analysis
Analysis techniques depend on:
Nature of the research question
Design of the research
Interpreting and assessing the research results is critical
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Preparation of Research Report
Research report - Complete statement of everything done in a
research project
Write-up of all stages
Strategic recommendations from the research
Limitations of the research
Clear and unambiguous report with respect to what was done
and recommended
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Figure 2.4 - Eight Criteria for Evaluating Marketing Research
Reports
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Limitations of the Research Process
Test marketing: Measures new product sales on a limited basis
Competitive retaliation and other factors are allowed to operate
freely
Future sales potential can be estimated
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Limitations of Test Marketing Study Results
Test market areas are not representative of the market
Sample size and design are incorrectly formulated
Pretest measurements of competitive brand sales are not made
or are inaccurate
Test scores do not give complete support to the study
Test market products are advertised or promoted beyond a
profitable level
Effects of factors that influence sales are ignored in the
research
Test-market period is short to determine whether the product
will be repurchased
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Marketing Information Systems
Marketing decision support system - Coordinated collection of
data, tools, and techniques involving both computer hardware
and software
Popular form of marketing information system
Used to gather and interpret relevant information for decision
making
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Marketing Decision Support Systems: Requirements
Database management software
Sorts and retrieves data from internal and external sources
Model base management software
Contains routines for manipulating data
Dialog system
Permits marketers to explore databases and use models to
produce information
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Marketing Decision Support Systems: Design
Design handles information from both internal and external
sources
Internal information - Sales records, inventory data, or
expenditure data
External information - Changes in environment that could
influence marketing strategies
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Chapter 2
Marketing Research: Process and Systems for Decision Making
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
14 e
Marketing Research
Process by which information about environment is generated,
analyzed, and interpreted
Aids decision making and is not a substitute for it
Reduces risks associated with managing marketing strategies
Vital for investigating the effects of various marketing
strategies after implementation
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Figure 2.1 - The Five Ps of the Research Process
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Purpose of the Research
Determines why research is needed and what it is to accomplish
By the end of this stage managers and researchers should agree
on:
Current situation involving the problem to be researched
Nature of the problem
Anything specific the research is designed to investigate
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Plan of the Research
Details the nature of the research including:
Explanation of sample design and measures
Analysis techniques to be used
Critical issues are whether:
Primary or secondary data are needed
Qualitative or quantitative data are needed
Company will conduct its own research or contract with a
marketing research specialist
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Primary versus Secondary Data
Primary data: Collected specifically for the research problem
under investigation
Secondary data: Previously collected data that could be used for
the problem at hand
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Figure 2.2 - Common Types of Information Available in a
Secondary Data Search
Source: Joseph F. Hair, Jr., Mary Wolfinbarger Celsi, David J.
Ortinau, and Robert P. Bush, Essentials of Marketing Research,
3rd ed. (Burr Ridge, IL: McGraw-Hill Education, 2013), p. 53
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
7
Qualitative Research
Involves face-to-face interviews with respondents
Designed to develop a better understanding of what they think
and feel concerning a research topic
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Types of Qualitative Research
Focus groups: Involve discussions among a small number of
consumers led by an interviewer
Designed to generate insights and ideas about products and
brands
Long interviews: Conducted by an interviewer with a single
respondent for several hours
Designed to find out how individuals perceive products and are
influenced by them
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Quantitative Research
Involves systematic procedures designed to obtain and analyze
numerical data
Types
Observational research: Involves watching people and recording
relevant facts and behaviors
Survey research: Involves the collection of data by means of a
questionnaire
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Quantitative Research
Experimental research: Involves manipulating one variable and
examining its impact on other variables
Mathematical modeling: Involves developing equations to
model relationships among variables
Investigates the impact of various strategies and tactics on sales
and brand choices
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Comparison of Data Collection Methods Used in Marketing
ResearchMethodAdvantages DisadvantagesFocus groupsDepth
of information collected
Flexibility in use
Relatively low cost
Data collected quicklyRequires expert moderator
Questions of group size and acquaintanceships of participants
Potential for bias from moderator
Small sample sizeMail surveysCost-effective per completed
response
Broad geographic dispersion
Ease of administration
Data collected quicklyRefusal and contact problems with certain
segments
Limited depth of response
Difficult to estimate nonresponse biases
Resistance and bias in collecting income, financial data
Lack of control following mailing
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Comparison of Data Collection Methods Used in Marketing
ResearchMethodAdvantages DisadvantagesTelephone
surveysCentralized control of data collection
More cost-effective than personal interviews
Data collected quicklyResistance in collecting income, financial
data
Limited depth of response
Disproportionate coverage of low-income segments
Abuse of phone by solicitors
Perceived intrusivenessPersonal
(in-depth)
interviewsMore depth of response than telephone interviews
Generate substantial number of ideas compared with group
methodsEasy to transmit biasing cues
Not-at-homes
Broad coverage often infeasible
Cost per contact high
Data collection time may be excessive
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Comparison of Data Collection Methods Used in Marketing
ResearchMethodAdvantages DisadvantagesProjective
techniquesUseful in word association tests of new brand names
Less threatening to respondents for sensitive topics
Can identify important motives underlying choicesRequire
trained interviewers
Cost per interview highMall interceptsFlexibility in collecting
data, answering questions, probing respondents
Data collected quickly
Excellent for concept tests, copy evaluations, other visuals
Fairly high response ratesLimited time
Sample composition or representativeness is suspect
Costs depend on incidence rates
Interviewer supervision difficult
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Comparison of Data Collection Methods Used in Marketing
ResearchMethodAdvantages DisadvantagesInternet
surveysInexpensive, quickly executed
Visual stimuli can be evaluated
Real-time data processing possible
Can be answered at convenience of respondentResponses must
be checked for duplication, bogus responses
Respondent self-selection bias
Limited ability to qualify respondents and confirm responses
Difficulty in generating sample frames for probability
samplingObservationCan collect sensitive data
Accuracy of measuring overt behaviors
Different perspective than survey self-reports
Useful in studies of cross-cultural differencesAppropriate only
for frequently occurring behaviors
Unable to assess opinions of attitudes causing behaviors
May be expensive in data-collection-time costs
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Company versus Contract Research
Many marketing research firms, advertising agencies, and
consulting companies do marketing research on a contract basis
Considerations
Schedules for task completion
Exact responsibilities of all involved parties
Cost
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Performance of Research
Preparing for data collection and actually collecting them
Depends on:
Type of research selected
Type of data needed
Cardinal rule - Obtain and record the maximal amount of useful
information subject to the constraints of time, money, and
respondent privacy
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Processing of Research Data
Preparation of data for analysis and their actual analysis
Includes editing and structuring data, and coding them for
analysis
Analysis techniques depend on:
Nature of the research question
Design of the research
Interpreting and assessing the research results is critical
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Preparation of Research Report
Research report - Complete statement of everything done in a
research project
Write-up of all stages
Strategic recommendations from the research
Limitations of the research
Clear and unambiguous report with respect to what was done
and recommended
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Figure 2.4 - Eight Criteria for Evaluating Marketing Research
Reports
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Limitations of the Research Process
Test marketing: Measures new product sales on a limited basis
Competitive retaliation and other factors are allowed to operate
freely
Future sales potential can be estimated
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Limitations of Test Marketing Study Results
Test market areas are not representative of the market
Sample size and design are incorrectly formulated
Pretest measurements of competitive brand sales are not made
or are inaccurate
Test scores do not give complete support to the study
Test market products are advertised or promoted beyond a
profitable level
Effects of factors that influence sales are ignored in the
research
Test-market period is short to determine whether the product
will be repurchased
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Marketing Information Systems
Marketing decision support system - Coordinated collection of
data, tools, and techniques involving both computer hardware
and software
Popular form of marketing information system
Used to gather and interpret relevant information for decision
making
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Marketing Decision Support Systems: Requirements
Database management software
Sorts and retrieves data from internal and external sources
Model base management software
Contains routines for manipulating data
Dialog system
Permits marketers to explore databases and use models to
produce information
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Marketing Decision Support Systems: Design
Design handles information from both internal and external
sources
Internal information - Sales records, inventory data, or
expenditure data
External information - Changes in environment that could
influence marketing strategies
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Chapter 5
Market Segmentation
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
14 e
Market Segmentation
Process of dividing a market into groups of similar consumers
and selecting the most appropriate group for the firm to serve
Target market: Group or segment a company selects to serve
2
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Figure 5.1 - A Model of The Market Segmentation Process
3
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Delineate The Firm’s Current Situation
Firms must do a complete situational analysis when embarking
on a new or modified marketing program
Aids in determining objectives, opportunities, and constraints to
be considered when selecting target markets and developing
marketing mixes
Intended to be a reminder of tasks to be performed prior to
marketing planning
4
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Determine Consumer Needs and Wants
Successful marketing strategies depend on discovering and
satisfying consumer needs and wants
Consumer needs and wants are translated into operational
concepts at a strategic level
5
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Divide Markets on Relevant Dimensions: Priori Versus Post
Hoc Segmentation
Marketing manager decides on the appropriate basis for
segmentation in advance of doing any research on a market
Priori segmentation
People are grouped into segments on the basis of research
findings
Post hoc segmentation
6
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Divide Markets on Relevant Dimensions: Relevance of
Segmentation Decision
Selecting appropriate dimensions requires:
Managerial expertise
Managerial experience
Previous research
Purchase trends
Managerial judgment
Consideration and research of sought benefits
7
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Divide Markets on Relevant Dimensions: Bases for
Segmentation
Benefit segmentation: Focuses on satisfying needs and wants by
grouping consumers on the basis of the benefits they are
seeking in a product
Psychographic segmentation: Focuses on consumer lifestyles as
the basis for segmentation
VALS: Psychographic approach
Stands for values and lifestyles
8
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
VALSTM Framework and Segments
Vertical dimension segments people based on the degree to
which they are innovative and have resources
Horizontal dimension represents primary motivations for buying
9
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Figure 5.4 - VALSTM Framework and Segments
10
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Geodemographic Segmentation
Identifies specific households in a market by focusing on local
neighbourhood geography
Creates classifications of actual, addressable, mappable
neighbourhoods where consumers live and shop
Nielsen PRIZM
11
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Develop Product Positioning
Positioning strategies used
Focusing on the superiority to competitive products
Based on use or application
Targeting particular types of product users
Relativity to a product class
Pitching directly against particular competitors
12
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Positioning Map
Visual depiction of consumer perceptions of competitive
products, brands, or models
Used to investigate how to position a product
Constructed by:
Surveying customers about various product attributes
Developing dimensions and a graph indicating the relative
position of competitors
13
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Figure 5.6 - Positioning Map for Automobiles
14
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Decide Segmentation Strategy
Not to enter the market
Segment but to be a mass marketer
Market to one segment
Market to more than one segment and design a separate
marketing mix for each
15
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Criteria for Segmentation
Viable segments must be:
Measurable - Firms must be capable of measuring its size and
characteristics
Meaningful - Should have sufficient sales and growth potential
to offer long-run profits
Marketable - Can be reached and served by the firm in an
efficient manner
16
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Design Marketing Mix Strategy
Selection of target market and designing the market should go
hand in hand
Marketing mix decisions are made in conjunction with target
market selection
17
Copyright © 2015 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written
consent of McGraw-Hill Education.
Week 3 discussion board post:
·
· MARKETING RESEARCH
This week you are the owner/developer of a chain of fitness
spas called C’est Si Bon, targeted at adult women. You are
interested in the possibility of opening four new stores in
Scadona, a city of 600,000 people that is located 1,000 miles
from your current concentration of fourteen stores. You know
nothing about Scadona except that it seems to be a good place
for expansion. You contact a market research firm in Scadona
to get information about the city, about the competition, and so
on. The firm gives you the information in Table 1, which
includes both primary and secondary research and their prices.
1) Identify what type of research you feel each of the 10 items
would be (P = primary; S = secondary). Be able to justify your
decisions.
2) Next rank the ten types of information listed in the order
you think they should be handled when making decisions about
the new market area. Rank them in descending order from 1 to
10, with 1 being most important. In your discussion justify
your ranking.
Table 1
1. A list of the gross sales figures of all existing women’s
fitness spas in Scadona for the last two years (Cost = $400)
2. Map of the Scadona area showing major traffic routes,
current shopping centers and types of stores, and locations
of current fitness spas. (Cost = $1,500)
3. Color-coded map of the area showing home and commercial
property values (Cost = $1,000)
4. Telephone survey of 500 randomly selected households in
the area designed to determine consumers' familiarity with your
company name, interest in spas like this, and awareness of other
spas and their advertising (Cost = $5,000)
5. Demographic breakdown of Scadona’s population by sex,
age, gross income, education, disposable income, family size,
and occupation (Cost = $2,000)
6. Mail survey of 300 subscribers to women’s magazines,
questioning their fitness awareness, need for complete fitness
services, amount of money spent on fitness activities annually,
frequency of patronage of fitness spas (Cost = $5,000)
7. Report of fifteen-year summary of economic trends in the
area, shopping centers, occupations, disposable income,
clothing sales, and specialty shops (Cost = $1,800)
8. Focus group report of twelve people concerning attitudes
toward prices of fitness services, services expected of a spa,
appropriate atmosphere, type of personnel, and seasonal
changes (Cost = $2,800)
9. List of all organizations, clubs, and restaurants that cater
to the in-crowd and their manager's names (Cost = $800)
10. List of all current useable retail space openings in the
area with rental rate per square foot, turnover rate for that spot
and shopping center, population within one square mile with
income ranges, housing values, occupations, ages and family
sizes (Cost = $2,400)
Video: https://www.youtube.com/watch?v=xiImi5k9Ges

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Example postJaron Warmack posted Feb 1, 2018 927 PMSub.docx

  • 1. Example post Jaron Warmack posted Feb 1, 2018 9:27 PM Subscribe Primary or Secondary Ranking Market Research & Justification s 1 5. Demographic breakdown of Scadona’s population by sex, age, gross income, education, disposable income, family size, and occupation (Cost = $2,000) I chose this one as first because I think this is one of the most important items to consider before breaking into a market. The product is targeted towards a specific group, and if the population does not contain an adequate number of people then the venture is pointless. This information is secondary becuase this was pulled from outside resources. s 2 7. Report of fifteen-year summary of economic trends in the area, shopping centers, occupations, disposable income, clothing sales, and specialty shops (Cost = $1,800) Looking at trends in a specific area is very important when deciding to enter a market. This secondary source of information was able to be pulled without conducting specific research for this project, but is necessary in understanding if a new business could thrive in that market.
  • 2. s 3 10. List of all current useable retail space openings in the area with rental rate per square foot, turnover rate for that spot and shopping center, population within one square mile with income ranges, housing values, occupations, ages and family sizes (Cost = $2,400) Location is key in deciding where to put a new business, you want to be close enough to other businesses to drive competition, but not too close where you start cannibalizing a market. This secondary data research is considered as such because it is able to be gathered from outside specific reaserch. s 4 1. A list of the gross sales figures of all existing women’s fitness spas in Scadona for the last two years (Cost = $400) Understanding how profitiable like businesses can give you a taste to see if your business has the chance to be successful. This is secondary data because the information would be public record and is not specific to this exact project. s 5 2. Map of the Scadona area showing major traffic routes, current shopping centers and types of stores, and locations of current fitness spas. (Cost = $1,500) This secondary research goes back to the available locations point that was made earlier. Location is very important, especially when it comes to fitness clubs. You want to be in close proximity to both residential and work areas. p
  • 3. 6 6. Mail survey of 300 subscribers to women’s magazines, questioning their fitness awareness, need for complete fitness services, amount of money spent on fitness activities annually, frequency of patronage of fitness spas (Cost = $5,000) This piece of primary data can really get your customers invovled. You are asking women about their habits so that you can better customize an experience for a customer. This is primary because it is customized for this project with a specific objective. p 7 4. Telephone survey of 500 randomly selected households in the area designed to determine consumers' familiarity with your company name, interest in spas like this, and awareness of other spas and their advertising (Cost = $5,000) This is primary research because it is customized to this project. It is slightly more personal and allows you to get an understanding of brand awareness and penetration in a market. p 8 8. Focus group report of twelve people concerning attitudes toward prices of fitness services, services expected of a spa, appropriate atmosphere, type of personnel, and seasonal changes (Cost = $2,800) These types of primary reaserch are important to really understand your target market and their needs. In focus groups you can ask specific questions and get real time answers. You can also tailor follow-ups to these participants. It also gives these potential customers a first glimpse at the product and get
  • 4. them excited and spread the news about the new business. s 9 3. Color-coded map of the area showing home and commercial property values (Cost = $1,000) This is secondary data because it is easily accessed by the public. I think it is important because you can better gauge areas of prosperity. s 10 9. List of all organizations, clubs, and restaurants that cater to the in-crowd and their manager's names (Cost = $800) While I ranked this last, I do think there is value in this secondary reasearch. Word of mouth marketing is very important, especially with the strong prescense of social media. When the public is informed about a new service and can experience it to its fullest they will share their experiences with their friends which can drive more business. THis is secondary becuase it is not specific to this project and can be pulled from outside sources. I think doing this exercise was very interesting and important for a few reasons. First, before I started I thought that my most important rankings would be primary resources, but as I was going through the research I kept putting the secondary first. Secondly, cost is a huge difference between primary and secondary research. Primary is much more expensive, but that makes more sense because these types of research are more tailored for a specific end use. less What are the purpose and functions of human resource
  • 5. management, and why are they important to ALL managers? For this discussion activity, your scavenger hunt will consist of finding an example of where an organization and management excelled in taking care of and motivating employees, and then provide an example or experience where an organization failed in this area. Remember these examples can come from any organization. If you do find applicable information on your own organization while working on this discussion, use it where applicable in your own SWOT analysis. These examples can be from current events, historical instances, or classic examples, in video or print. Conduct a web search seeking two examples of where you believe an organization’s human resource department has performed exceptionally well or failed terribly in motivating employees and creating an environment where employees want to be loyal and stay with the organization. · Discuss what you found during your web search. · Provide a description of how effective motivational techniques can and do affect all managers and organizations. Chapter 5 Market Segmentation Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 14 e Market Segmentation Process of dividing a market into groups of similar consumers and selecting the most appropriate group for the firm to serve Target market: Group or segment a company selects to serve 2
  • 6. Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Figure 5.1 - A Model of The Market Segmentation Process 3 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Delineate The Firm’s Current Situation Firms must do a complete situational analysis when embarking on a new or modified marketing program Aids in determining objectives, opportunities, and constraints to be considered when selecting target markets and developing marketing mixes Intended to be a reminder of tasks to be performed prior to marketing planning 4 Copyright © 2015 McGraw-Hill Education. All rights reserved.
  • 7. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Determine Consumer Needs and Wants Successful marketing strategies depend on discovering and satisfying consumer needs and wants Consumer needs and wants are translated into operational concepts at a strategic level 5 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Divide Markets on Relevant Dimensions: Priori Versus Post Hoc Segmentation Marketing manager decides on the appropriate basis for segmentation in advance of doing any research on a market Priori segmentation People are grouped into segments on the basis of research findings Post hoc segmentation 6 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 8. Divide Markets on Relevant Dimensions: Relevance of Segmentation Decision Selecting appropriate dimensions requires: Managerial expertise Managerial experience Previous research Purchase trends Managerial judgment Consideration and research of sought benefits 7 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Divide Markets on Relevant Dimensions: Bases for Segmentation Benefit segmentation: Focuses on satisfying needs and wants by grouping consumers on the basis of the benefits they are seeking in a product Psychographic segmentation: Focuses on consumer lifestyles as the basis for segmentation VALS: Psychographic approach Stands for values and lifestyles 8 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written
  • 9. consent of McGraw-Hill Education. VALSTM Framework and Segments Vertical dimension segments people based on the degree to which they are innovative and have resources Horizontal dimension represents primary motivations for buying 9 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Figure 5.4 - VALSTM Framework and Segments 10 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Geodemographic Segmentation Identifies specific households in a market by focusing on local neighbourhood geography Creates classifications of actual, addressable, mappable neighbourhoods where consumers live and shop Nielsen PRIZM 11
  • 10. Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Develop Product Positioning Positioning strategies used Focusing on the superiority to competitive products Based on use or application Targeting particular types of product users Relativity to a product class Pitching directly against particular competitors 12 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Positioning Map Visual depiction of consumer perceptions of competitive products, brands, or models Used to investigate how to position a product Constructed by: Surveying customers about various product attributes Developing dimensions and a graph indicating the relative position of competitors 13
  • 11. Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Figure 5.6 - Positioning Map for Automobiles 14 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Decide Segmentation Strategy Not to enter the market Segment but to be a mass marketer Market to one segment Market to more than one segment and design a separate marketing mix for each 15 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Criteria for Segmentation
  • 12. Viable segments must be: Measurable - Firms must be capable of measuring its size and characteristics Meaningful - Should have sufficient sales and growth potential to offer long-run profits Marketable - Can be reached and served by the firm in an efficient manner 16 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Design Marketing Mix Strategy Selection of target market and designing the market should go hand in hand Marketing mix decisions are made in conjunction with target market selection 17 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Chapter 2
  • 13. Marketing Research: Process and Systems for Decision Making Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 14 e Marketing Research Process by which information about environment is generated, analyzed, and interpreted Aids decision making and is not a substitute for it Reduces risks associated with managing marketing strategies Vital for investigating the effects of various marketing strategies after implementation Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Figure 2.1 - The Five Ps of the Research Process Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Purpose of the Research Determines why research is needed and what it is to accomplish
  • 14. By the end of this stage managers and researchers should agree on: Current situation involving the problem to be researched Nature of the problem Anything specific the research is designed to investigate Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Plan of the Research Details the nature of the research including: Explanation of sample design and measures Analysis techniques to be used Critical issues are whether: Primary or secondary data are needed Qualitative or quantitative data are needed Company will conduct its own research or contract with a marketing research specialist Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Primary versus Secondary Data Primary data: Collected specifically for the research problem under investigation Secondary data: Previously collected data that could be used for
  • 15. the problem at hand Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Figure 2.2 - Common Types of Information Available in a Secondary Data Search Source: Joseph F. Hair, Jr., Mary Wolfinbarger Celsi, David J. Ortinau, and Robert P. Bush, Essentials of Marketing Research, 3rd ed. (Burr Ridge, IL: McGraw-Hill Education, 2013), p. 53 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 7 Qualitative Research Involves face-to-face interviews with respondents Designed to develop a better understanding of what they think and feel concerning a research topic
  • 16. Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Types of Qualitative Research Focus groups: Involve discussions among a small number of consumers led by an interviewer Designed to generate insights and ideas about products and brands Long interviews: Conducted by an interviewer with a single respondent for several hours Designed to find out how individuals perceive products and are influenced by them Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Quantitative Research Involves systematic procedures designed to obtain and analyze numerical data Types Observational research: Involves watching people and recording relevant facts and behaviors Survey research: Involves the collection of data by means of a questionnaire
  • 17. Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Quantitative Research Experimental research: Involves manipulating one variable and examining its impact on other variables Mathematical modeling: Involves developing equations to model relationships among variables Investigates the impact of various strategies and tactics on sales and brand choices Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Comparison of Data Collection Methods Used in Marketing ResearchMethodAdvantages DisadvantagesFocus groupsDepth of information collected Flexibility in use Relatively low cost Data collected quicklyRequires expert moderator Questions of group size and acquaintanceships of participants Potential for bias from moderator Small sample sizeMail surveysCost-effective per completed response Broad geographic dispersion Ease of administration Data collected quicklyRefusal and contact problems with certain segments Limited depth of response
  • 18. Difficult to estimate nonresponse biases Resistance and bias in collecting income, financial data Lack of control following mailing Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Comparison of Data Collection Methods Used in Marketing ResearchMethodAdvantages DisadvantagesTelephone surveysCentralized control of data collection More cost-effective than personal interviews Data collected quicklyResistance in collecting income, financial data Limited depth of response Disproportionate coverage of low-income segments Abuse of phone by solicitors Perceived intrusivenessPersonal (in-depth) interviewsMore depth of response than telephone interviews Generate substantial number of ideas compared with group methodsEasy to transmit biasing cues Not-at-homes Broad coverage often infeasible Cost per contact high Data collection time may be excessive Copyright © 2015 McGraw-Hill Education. All rights reserved.
  • 19. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Comparison of Data Collection Methods Used in Marketing ResearchMethodAdvantages DisadvantagesProjective techniquesUseful in word association tests of new brand names Less threatening to respondents for sensitive topics Can identify important motives underlying choicesRequire trained interviewers Cost per interview highMall interceptsFlexibility in collecting data, answering questions, probing respondents Data collected quickly Excellent for concept tests, copy evaluations, other visuals Fairly high response ratesLimited time Sample composition or representativeness is suspect Costs depend on incidence rates Interviewer supervision difficult Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Comparison of Data Collection Methods Used in Marketing ResearchMethodAdvantages DisadvantagesInternet surveysInexpensive, quickly executed Visual stimuli can be evaluated Real-time data processing possible Can be answered at convenience of respondentResponses must be checked for duplication, bogus responses Respondent self-selection bias Limited ability to qualify respondents and confirm responses Difficulty in generating sample frames for probability
  • 20. samplingObservationCan collect sensitive data Accuracy of measuring overt behaviors Different perspective than survey self-reports Useful in studies of cross-cultural differencesAppropriate only for frequently occurring behaviors Unable to assess opinions of attitudes causing behaviors May be expensive in data-collection-time costs Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Company versus Contract Research Many marketing research firms, advertising agencies, and consulting companies do marketing research on a contract basis Considerations Schedules for task completion Exact responsibilities of all involved parties Cost Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Performance of Research Preparing for data collection and actually collecting them Depends on: Type of research selected
  • 21. Type of data needed Cardinal rule - Obtain and record the maximal amount of useful information subject to the constraints of time, money, and respondent privacy Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Processing of Research Data Preparation of data for analysis and their actual analysis Includes editing and structuring data, and coding them for analysis Analysis techniques depend on: Nature of the research question Design of the research Interpreting and assessing the research results is critical Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Preparation of Research Report Research report - Complete statement of everything done in a research project Write-up of all stages Strategic recommendations from the research Limitations of the research
  • 22. Clear and unambiguous report with respect to what was done and recommended Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Figure 2.4 - Eight Criteria for Evaluating Marketing Research Reports Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Limitations of the Research Process Test marketing: Measures new product sales on a limited basis Competitive retaliation and other factors are allowed to operate freely Future sales potential can be estimated Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 23. Limitations of Test Marketing Study Results Test market areas are not representative of the market Sample size and design are incorrectly formulated Pretest measurements of competitive brand sales are not made or are inaccurate Test scores do not give complete support to the study Test market products are advertised or promoted beyond a profitable level Effects of factors that influence sales are ignored in the research Test-market period is short to determine whether the product will be repurchased Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Marketing Information Systems Marketing decision support system - Coordinated collection of data, tools, and techniques involving both computer hardware and software Popular form of marketing information system Used to gather and interpret relevant information for decision making Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written
  • 24. consent of McGraw-Hill Education. Marketing Decision Support Systems: Requirements Database management software Sorts and retrieves data from internal and external sources Model base management software Contains routines for manipulating data Dialog system Permits marketers to explore databases and use models to produce information Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Marketing Decision Support Systems: Design Design handles information from both internal and external sources Internal information - Sales records, inventory data, or expenditure data External information - Changes in environment that could influence marketing strategies Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 25. Chapter 2 Marketing Research: Process and Systems for Decision Making Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 14 e Marketing Research Process by which information about environment is generated, analyzed, and interpreted Aids decision making and is not a substitute for it Reduces risks associated with managing marketing strategies Vital for investigating the effects of various marketing strategies after implementation Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Figure 2.1 - The Five Ps of the Research Process Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 26. Purpose of the Research Determines why research is needed and what it is to accomplish By the end of this stage managers and researchers should agree on: Current situation involving the problem to be researched Nature of the problem Anything specific the research is designed to investigate Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Plan of the Research Details the nature of the research including: Explanation of sample design and measures Analysis techniques to be used Critical issues are whether: Primary or secondary data are needed Qualitative or quantitative data are needed Company will conduct its own research or contract with a marketing research specialist Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Primary versus Secondary Data Primary data: Collected specifically for the research problem
  • 27. under investigation Secondary data: Previously collected data that could be used for the problem at hand Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Figure 2.2 - Common Types of Information Available in a Secondary Data Search Source: Joseph F. Hair, Jr., Mary Wolfinbarger Celsi, David J. Ortinau, and Robert P. Bush, Essentials of Marketing Research, 3rd ed. (Burr Ridge, IL: McGraw-Hill Education, 2013), p. 53 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 7 Qualitative Research Involves face-to-face interviews with respondents Designed to develop a better understanding of what they think and feel concerning a research topic
  • 28. Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Types of Qualitative Research Focus groups: Involve discussions among a small number of consumers led by an interviewer Designed to generate insights and ideas about products and brands Long interviews: Conducted by an interviewer with a single respondent for several hours Designed to find out how individuals perceive products and are influenced by them Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Quantitative Research Involves systematic procedures designed to obtain and analyze numerical data Types Observational research: Involves watching people and recording relevant facts and behaviors Survey research: Involves the collection of data by means of a questionnaire
  • 29. Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Quantitative Research Experimental research: Involves manipulating one variable and examining its impact on other variables Mathematical modeling: Involves developing equations to model relationships among variables Investigates the impact of various strategies and tactics on sales and brand choices Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Comparison of Data Collection Methods Used in Marketing ResearchMethodAdvantages DisadvantagesFocus groupsDepth of information collected Flexibility in use Relatively low cost Data collected quicklyRequires expert moderator Questions of group size and acquaintanceships of participants Potential for bias from moderator Small sample sizeMail surveysCost-effective per completed response Broad geographic dispersion Ease of administration Data collected quicklyRefusal and contact problems with certain
  • 30. segments Limited depth of response Difficult to estimate nonresponse biases Resistance and bias in collecting income, financial data Lack of control following mailing Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Comparison of Data Collection Methods Used in Marketing ResearchMethodAdvantages DisadvantagesTelephone surveysCentralized control of data collection More cost-effective than personal interviews Data collected quicklyResistance in collecting income, financial data Limited depth of response Disproportionate coverage of low-income segments Abuse of phone by solicitors Perceived intrusivenessPersonal (in-depth) interviewsMore depth of response than telephone interviews Generate substantial number of ideas compared with group methodsEasy to transmit biasing cues Not-at-homes Broad coverage often infeasible Cost per contact high Data collection time may be excessive
  • 31. Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Comparison of Data Collection Methods Used in Marketing ResearchMethodAdvantages DisadvantagesProjective techniquesUseful in word association tests of new brand names Less threatening to respondents for sensitive topics Can identify important motives underlying choicesRequire trained interviewers Cost per interview highMall interceptsFlexibility in collecting data, answering questions, probing respondents Data collected quickly Excellent for concept tests, copy evaluations, other visuals Fairly high response ratesLimited time Sample composition or representativeness is suspect Costs depend on incidence rates Interviewer supervision difficult Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Comparison of Data Collection Methods Used in Marketing ResearchMethodAdvantages DisadvantagesInternet surveysInexpensive, quickly executed Visual stimuli can be evaluated Real-time data processing possible Can be answered at convenience of respondentResponses must be checked for duplication, bogus responses Respondent self-selection bias
  • 32. Limited ability to qualify respondents and confirm responses Difficulty in generating sample frames for probability samplingObservationCan collect sensitive data Accuracy of measuring overt behaviors Different perspective than survey self-reports Useful in studies of cross-cultural differencesAppropriate only for frequently occurring behaviors Unable to assess opinions of attitudes causing behaviors May be expensive in data-collection-time costs Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Company versus Contract Research Many marketing research firms, advertising agencies, and consulting companies do marketing research on a contract basis Considerations Schedules for task completion Exact responsibilities of all involved parties Cost Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Performance of Research Preparing for data collection and actually collecting them
  • 33. Depends on: Type of research selected Type of data needed Cardinal rule - Obtain and record the maximal amount of useful information subject to the constraints of time, money, and respondent privacy Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Processing of Research Data Preparation of data for analysis and their actual analysis Includes editing and structuring data, and coding them for analysis Analysis techniques depend on: Nature of the research question Design of the research Interpreting and assessing the research results is critical Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Preparation of Research Report Research report - Complete statement of everything done in a research project Write-up of all stages
  • 34. Strategic recommendations from the research Limitations of the research Clear and unambiguous report with respect to what was done and recommended Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Figure 2.4 - Eight Criteria for Evaluating Marketing Research Reports Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Limitations of the Research Process Test marketing: Measures new product sales on a limited basis Competitive retaliation and other factors are allowed to operate freely Future sales potential can be estimated Copyright © 2015 McGraw-Hill Education. All rights reserved.
  • 35. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Limitations of Test Marketing Study Results Test market areas are not representative of the market Sample size and design are incorrectly formulated Pretest measurements of competitive brand sales are not made or are inaccurate Test scores do not give complete support to the study Test market products are advertised or promoted beyond a profitable level Effects of factors that influence sales are ignored in the research Test-market period is short to determine whether the product will be repurchased Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Marketing Information Systems Marketing decision support system - Coordinated collection of data, tools, and techniques involving both computer hardware and software Popular form of marketing information system Used to gather and interpret relevant information for decision making
  • 36. Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Marketing Decision Support Systems: Requirements Database management software Sorts and retrieves data from internal and external sources Model base management software Contains routines for manipulating data Dialog system Permits marketers to explore databases and use models to produce information Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Marketing Decision Support Systems: Design Design handles information from both internal and external sources Internal information - Sales records, inventory data, or expenditure data External information - Changes in environment that could influence marketing strategies Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 37. Chapter 5 Market Segmentation Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. 14 e Market Segmentation Process of dividing a market into groups of similar consumers and selecting the most appropriate group for the firm to serve Target market: Group or segment a company selects to serve 2 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Figure 5.1 - A Model of The Market Segmentation Process 3 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 38. Delineate The Firm’s Current Situation Firms must do a complete situational analysis when embarking on a new or modified marketing program Aids in determining objectives, opportunities, and constraints to be considered when selecting target markets and developing marketing mixes Intended to be a reminder of tasks to be performed prior to marketing planning 4 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Determine Consumer Needs and Wants Successful marketing strategies depend on discovering and satisfying consumer needs and wants Consumer needs and wants are translated into operational concepts at a strategic level 5 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Divide Markets on Relevant Dimensions: Priori Versus Post
  • 39. Hoc Segmentation Marketing manager decides on the appropriate basis for segmentation in advance of doing any research on a market Priori segmentation People are grouped into segments on the basis of research findings Post hoc segmentation 6 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Divide Markets on Relevant Dimensions: Relevance of Segmentation Decision Selecting appropriate dimensions requires: Managerial expertise Managerial experience Previous research Purchase trends Managerial judgment Consideration and research of sought benefits 7 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 40. Divide Markets on Relevant Dimensions: Bases for Segmentation Benefit segmentation: Focuses on satisfying needs and wants by grouping consumers on the basis of the benefits they are seeking in a product Psychographic segmentation: Focuses on consumer lifestyles as the basis for segmentation VALS: Psychographic approach Stands for values and lifestyles 8 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. VALSTM Framework and Segments Vertical dimension segments people based on the degree to which they are innovative and have resources Horizontal dimension represents primary motivations for buying 9 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Figure 5.4 - VALSTM Framework and Segments 10
  • 41. Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Geodemographic Segmentation Identifies specific households in a market by focusing on local neighbourhood geography Creates classifications of actual, addressable, mappable neighbourhoods where consumers live and shop Nielsen PRIZM 11 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Develop Product Positioning Positioning strategies used Focusing on the superiority to competitive products Based on use or application Targeting particular types of product users Relativity to a product class Pitching directly against particular competitors 12
  • 42. Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Positioning Map Visual depiction of consumer perceptions of competitive products, brands, or models Used to investigate how to position a product Constructed by: Surveying customers about various product attributes Developing dimensions and a graph indicating the relative position of competitors 13 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Figure 5.6 - Positioning Map for Automobiles 14 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
  • 43. Decide Segmentation Strategy Not to enter the market Segment but to be a mass marketer Market to one segment Market to more than one segment and design a separate marketing mix for each 15 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Criteria for Segmentation Viable segments must be: Measurable - Firms must be capable of measuring its size and characteristics Meaningful - Should have sufficient sales and growth potential to offer long-run profits Marketable - Can be reached and served by the firm in an efficient manner 16 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Design Marketing Mix Strategy Selection of target market and designing the market should go
  • 44. hand in hand Marketing mix decisions are made in conjunction with target market selection 17 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Week 3 discussion board post: · · MARKETING RESEARCH This week you are the owner/developer of a chain of fitness spas called C’est Si Bon, targeted at adult women. You are interested in the possibility of opening four new stores in Scadona, a city of 600,000 people that is located 1,000 miles from your current concentration of fourteen stores. You know nothing about Scadona except that it seems to be a good place for expansion. You contact a market research firm in Scadona to get information about the city, about the competition, and so on. The firm gives you the information in Table 1, which includes both primary and secondary research and their prices. 1) Identify what type of research you feel each of the 10 items would be (P = primary; S = secondary). Be able to justify your decisions. 2) Next rank the ten types of information listed in the order you think they should be handled when making decisions about the new market area. Rank them in descending order from 1 to 10, with 1 being most important. In your discussion justify your ranking.
  • 45. Table 1 1. A list of the gross sales figures of all existing women’s fitness spas in Scadona for the last two years (Cost = $400) 2. Map of the Scadona area showing major traffic routes, current shopping centers and types of stores, and locations of current fitness spas. (Cost = $1,500) 3. Color-coded map of the area showing home and commercial property values (Cost = $1,000) 4. Telephone survey of 500 randomly selected households in the area designed to determine consumers' familiarity with your company name, interest in spas like this, and awareness of other spas and their advertising (Cost = $5,000) 5. Demographic breakdown of Scadona’s population by sex, age, gross income, education, disposable income, family size, and occupation (Cost = $2,000) 6. Mail survey of 300 subscribers to women’s magazines, questioning their fitness awareness, need for complete fitness services, amount of money spent on fitness activities annually, frequency of patronage of fitness spas (Cost = $5,000) 7. Report of fifteen-year summary of economic trends in the area, shopping centers, occupations, disposable income, clothing sales, and specialty shops (Cost = $1,800) 8. Focus group report of twelve people concerning attitudes toward prices of fitness services, services expected of a spa, appropriate atmosphere, type of personnel, and seasonal changes (Cost = $2,800) 9. List of all organizations, clubs, and restaurants that cater to the in-crowd and their manager's names (Cost = $800) 10. List of all current useable retail space openings in the area with rental rate per square foot, turnover rate for that spot and shopping center, population within one square mile with income ranges, housing values, occupations, ages and family sizes (Cost = $2,400)