Thank you for submitting your first assessment in our course! You have a good start on your discussion of the driving forces affecting REI's success. Further discussion is needed though to address all criteria.
Please see my detailed feedback below for areas where you could add more detail to achieve a distinguished level of performance or still need to elaborate on and refer to the additional resources I included below as you make revisions. Please highlight your changes to ensure I will not overlook any of your changes.
COMPETENCY: Examine the basic marketing models for a business or organization.
CRITERION: Explain how characteristics of the U.S. economy affect a company's retail operations.
DISTINGUISHED
PROFICIENT
BASIC
NON-PERFORMANCE
Basic
Identifies characteristics of the U.S. economy that affect a company's retail operations, but does not explain their significance.
Faculty COMMENTS: “
You have a good start on addressing this criterion by focusing on how rei is performing in the us capitalism! Before making any revisions to your content, please refer to our course textbooks or baird (2016) for a brief explanation of how the us retailers can be impacted by the us economy, then tailor your content to discuss how specific characteristics of the us economy impact rei specifically and what possible marketing steps rei could make to protect themselves from any negative impact.
CRITERION: Explain how characteristics of the global economy affect a company's retail operations.
DISTINGUISHED
PROFICIENT
BASIC
NON-PERFORMANCE
Basic
Identifies characteristics of the global economy that affect a company's retail operations, but does not explain their significance.
Faculty Comments:“
You have a good start on this criterion by mentioning "the fluctuation in economies globally affects the general revenue of the organization yearly". Please discuss the specific indicators or characteristics of the global economy that impact rei. Start your reflection on this topic by reading lesonsky (2012)and his explanation of how the global economy can impact us businesses.
”
CRITERION: Explain how characteristics of the legal and regulatory environment affect a company's retail operations.
DISTINGUISHED
PROFICIENT
BASIC
NON-PERFORMANCE
Basic
Identifies characteristics of the legal and regulatory environment that affect a company's retail operations, but does not explain their significance.
Faculty Comments:“
Good job mentioning "the different taxation policies" as impacting rei globally! Please elaborate on your discussion to further discuss how the changing regulations and laws impact rei's operations and what specific marketing changes rei could make to minimize their impact. As a secondary source of information in addition to our course resources, please access moreno (2014) as well to gain a foundational understanding of how the regulatory environment could impact us businesses in general, then tailor your content to analyze rei specifically in your section.
Thank you for submitting your first assessment in our course! You .docx
1. Thank you for submitting your first assessment in our course!
You have a good start on your discussion of the driving forces
affecting REI's success. Further discussion is needed though to
address all criteria.
Please see my detailed feedback below for areas where you
could add more detail to achieve a distinguished level of
performance or still need to elaborate on and refer to the
additional resources I included below as you make revisions.
Please highlight your changes to ensure I will not overlook any
of your changes.
COMPETENCY: Examine the basic marketing models for a
business or organization.
CRITERION: Explain how characteristics of the U.S. economy
affect a company's retail operations.
DISTINGUISHED
PROFICIENT
BASIC
NON-PERFORMANCE
Basic
Identifies characteristics of the U.S. economy that affect a
company's retail operations, but does not explain their
significance.
Faculty COMMENTS: “
You have a good start on addressing this criterion by focusing
on how rei is performing in the us capitalism! Before making
any revisions to your content, please refer to our course
textbooks or baird (2016) for a brief explanation of how the us
retailers can be impacted by the us economy, then tailor your
content to discuss how specific characteristics of the us
economy impact rei specifically and what possible marketing
steps rei could make to protect themselves from any negative
impact.
CRITERION: Explain how characteristics of the global
2. economy affect a company's retail operations.
DISTINGUISHED
PROFICIENT
BASIC
NON-PERFORMANCE
Basic
Identifies characteristics of the global economy that affect a
company's retail operations, but does not explain their
significance.
Faculty Comments:“
You have a good start on this criterion by mentioning "the
fluctuation in economies globally affects the general revenue of
the organization yearly". Please discuss the specific indicators
or characteristics of the global economy that impact rei. Start
your reflection on this topic by reading lesonsky (2012)and his
explanation of how the global economy can impact us
businesses.
”
CRITERION: Explain how characteristics of the legal and
regulatory environment affect a company's retail operations.
DISTINGUISHED
PROFICIENT
BASIC
NON-PERFORMANCE
Basic
Identifies characteristics of the legal and regulatory
environment that affect a company's retail operations, but does
not explain their significance.
Faculty Comments:“
Good job mentioning "the different taxation policies" as
impacting rei globally! Please elaborate on your discussion to
further discuss how the changing regulations and laws impact
rei's operations and what specific marketing changes rei could
make to minimize their impact. As a secondary source of
information in addition to our course resources, please
access moreno (2014) as well to gain a foundational
3. understanding of how the regulatory environment could impact
us businesses in general, then tailor your content to analyze rei
specifically in your section.
”
CRITERION: Explain how characteristics of technological
forces affect a company's retail operations.
DISTINGUISHED
PROFICIENT
BASIC
NON-PERFORMANCE
Proficient
Explains how characteristics of technological forces affect a
company's retail operations.
Faculty Comments:“
Great job discussing how technology impacts rei's operations!
How could rei utilize the technological changes to their
advantage from a marketing perspective?
”
COMPETENCY: Relate the importance of an integrated
marketing program to the economic impact of a business.
CRITERION: Explain how secondary sources of information
can be used in developing an integrated marketing plan.
Basic
Identifies secondary sources of information as a component of
developing an integrated marketing plan.
Faculty Comments:“
Good start on this criterion! What specific secondary sources of
information would be useful for rei and what are some of their
limitations?
”
CRITERION: Analyze the value of secondary sources of
information to business economic success.
DISTINGUISHED
PROFICIENT
BASIC
NON-PERFORMANCE
4. Basic
Describes the value of secondary sources of information to
business economic success, but does not explain their
significance.
Faculty Comments:“
Good job discussing how secondary sources of information can
be valuable for a business! What value do the secondary sources
you selected bring to rei?
”
Chapter 9:
Industrial Recruitment
When business and government bargains…
A Review of Various Economic TheoriesLevel of
FocusEconomic Theories that
Address the Focus
Global
Classical economics
Neo-classical economic (supply side)
Marxist economics
Country
Mercantile economics
Neo-mercantile economics
(state corporatism)
Demand-side economics (Keynesian)
Dependency theory economics
Regional
5. Cluster (location) economics
Municipal entrepreneurism
Cluster Theory
Clusters are geographic concentrations of interconnected
companies, specialized suppliers, firms in related industries,
and associated institutions in a particular field that compete but
also cooperate.
They draw more customers to the area.
Because of proximity in clusters, new ideas are quickly
transferred (copied) and refined or reinvented, leading to further
innovation.
Because of the reputation and vitality of clusters, they tend to
draw in not only more customers, but also new businesses.
Wine Region Example
1. Wine
tastings
2. Wine
specialization
3. Improved
critical mass
Leads to
Higher wages
Economic
dynamism
6. Government’s role
remove obstacles, relax constraints;
support resources such as necessary infrastructure;
support human capital development such as education and
training programs;
assist export promotion;
encourage local R & D efforts;
sponsor forums to bring cluster participants together;
encourage industrial parks;
sponsor independent testing or certification if it is useful.
Political Context of Local Economic Development
There is not a single perspective on growth.
Local preferences can vary significantly, and range from ‘any-
growth-at-any-cost,’ all the way to ‘fighting-all growth-at-any-
cost.’
We look at three perspectives.
Pro-Growth Model
A pro-growth model is a coalition interested in the development
and re-development of land.
is interested in raising the aggregate value of land by increasing
the overall development of land or the intensification of its use.
Land intensification means converting farm and open space to
residential and commercial, or lower class housing to high rises
or “high-class” commercial.
7. Economic growth may be focused on blight; when it is, it is
called redevelopment.
Blight is
A concentration of buildings that are in serious decay or unsafe
and that often have serious building code violations,
Poor real estate values, high vacancy rates, and numerous
abandoned buildings and lots.
Land use patterns that reduce incentives for renovations or new
development because of an excess of bars, liquor stores, or
other businesses that cater exclusively to adults, and that tend
to encourage public safety problems,
Absence of neighborhood grocery stores and businesses that
support residents,
High crime rates, and/or
Residential overcrowding.
Role of government is generally especially
important when blight is the target of growth.
“Growth Machine”
When there is a powerful and successful pro-growth group that
dominates the policy, administrative, and business agendas, it is
often called a “growth machine.” A true growth machine
includes:
large public entrepreneurs connected to the community who
want to sponsor new development,
a generally supportive public of new development, and
a strong support base in government (especially the city council
or board of supervisors).
8. Question: Which of the following cities demonstrated the
strongest characteristics of a “growth machine” in the recent
economic boom?
Claremont, built-out college town
San Marino, built-out city with beautiful homes
Redlands, a college town that prides itself on being a small city
Beverly Hills
Victorville, a high-desert city eager to expand
Range of Growth Within “Pro-Growth”
Balanced economic development model: focuses on following
comprehensive plans, restraining zoning ordinances for all but
the most well considered cases, and ensuring that infrastructure
and other costs are fully included in the planning approval
process.
“Boom model”: Rapid and relatively unrestrained growth, which
leads to large economic swings of local investment. Weak
regulation and planning.
A Slow and No Growth Model
The slow growth model is supported by coalitions interested in
slowing or stopping various types of development because the
effects of fast growth are considered too negative.
Slow/No growth advocates worry about sprawl, traffic
congestion, environmental degradation, insufficient
infrastructure, excessive cost shifting to current tax payers for
9. development projects, and degradation of existing communities
by downgrading current use, among others.
Close up look at one slow growth concern: Sprawl
Sprawl, in the narrower sense, refers to the lax use of land.
The National Trust for Historic Preservation calls sprawl
“poorly planned, low-density, auto-oriented development that
spreads out from the center communities.”
Sprawl takes many forms
Traditional Urban Sprawl: Close-in LA
Town homes, low apartment buildings, residential homes with
small yards
Low Density Sprawl
residential homes with large lots
Commercial Strip Sprawl
businesses line streets and signage is prominent
Scattered Sprawl
occasional homes and business scattered across open landscape
People drive more in sprawling communities, and have a heavier
environmental set of issues to contend with
10. Sprawl is an expensive model to maintain well
No-growth
variant
The no-growth model is a specialized case which is created by a
coalition interested in stopping all growth to the degree
possible. No-growth models tend to be promulgated in fully
built-out areas, especially when they are historical districts,
cities that are already highly desirable, and areas undergoing
gentrification in which modern and mass structures are not
wanted.
A no-growth model can still encourage replacement and
upgrades, but do so very selectively.
Smart Growth:
A Rational Compromise?
Smart Growth Is a public-private approach to managing growth
that emphasizes growth through careful planning.
A definition of smart growth is “an urban planning and
transportation theory that concentrates growth in the center of a
city to avoid urban sprawl; and advocates compact, transit-
oriented, walkable, bicycle-friendly land use, including mixed-
use development with a range of housing choices” (Daniels
11. 2001).
The recommended practices of smart growth include:
high density, mixed land use,
strong use of planning with clustered development and
protection of agricultural and open space (such as the use of
“urban growth boundaries”),
full costing and implementation of infrastructure at beginning
of construction,
integration of affordable housing and social equity concerns,
traffic grids allowing for alternate routes,
more emphasis on non-automotive means including pedestrian
walkways and bike paths,
narrower streets
California and Smart Growth
CA has sought to strengthen planning. First, in 1963, it created
the Local Agency Formation Commission (LAFCO) to oversee
city incorporations, annexations, and creation of special
districts. A part of this was the requirement for comprehensive
planning by established cities.
Currently, the State’s Commission for Local Governance for the
21st Century sets out five principles for California's growth,
including:
the requirement for regional perspectives,
the requirement for greater efficiency of land use,
greater public investment,
fiscal reform, and
adherence to equity considerations.
But success by Smart Growth advocates has been partial
because Californians love their cars and residential styles
Successes do include: higher standards for cars and gas in
12. terms of pollution reduction, modest attempts to increase mass
transit (with very modest results in most cases), increased use
of planning and zoning to diminish sprawl somewhat,
reinvestment in downtowns, promotion of infill projects to keep
areas aesthetically pleasing and viable
Smart Growth in Pictures
Infill buildings and lamp posts added; street resurfaced
Street trees, light rail, bike lanes added
The Factors Determining the Bargaining Positions of Business
Government sets up standard business conditions that apply
across-the-board to all businesses.
But what if business wants “special” conditions and has a lot to
offer a governmental area?
Although government tries to deal with all business in the same
general way, when larger commercial ventures arise, there are
strong reasons to adjust local requirements.
Reasons for each sector to bargain
Public Sector
Public interest
Tax revenue (especially high-producing tax generating
13. businesses)
Jobs (low and high end)
Low-income housing
High-end housing
Amenities
Environmental protection
Private Sector
Corporate interest
New business opportunities
Tax breaks
Guaranteed income streams (partnerships)
Assistance with infrastructure improvements
Special assistance…
Three major factors that affect the bargaining relationship and
the amount of leverage that business and government each has:
market conditions: cyclical and local circumstances or forces
that make cities more or less appealing to private investors for
financial reasons
political conditions: the political process through which public
sector decisions that can affect economic development
the planning system: relationships and methods used by
government to regulate the marketplace and substantially affect
bargaining power
Market Conditions
When a jurisdiction is poorly off in the long-run, or is
experiencing a downturn, conditions are especially good for
business to bargain.
14. On the other hand…
When a jurisdiction is well-off, it has far less incentive to
accommodate business.
Political Conditions
When voters are not paying attention, business has more
opportunity to strike favorable deals with politicians and
administrators.
On the other hand…
Political conditions become negative for business when there is
an active citizen base that scrutinizes all government deals,
even those deals that may seem advantageous at first glance.
Also, when there is a lot of political competition between
parties, or among local candidates, bargains with business may
be heavily scrutinized for competitive political advantage.
Planning System
The leverage that business has is much enhanced when
government is not tightly organized. In the US, which has a
federal system, local governments have a good deal of
autonomy, and that creates both a lot of zoning variation as well
as a lot of competition among jurisdictions.
On the other hand…
In unitary states (e.g., Europe, Japan, Singapore), or where a
strong land planning culture predominates, business advantage
is generally far less in bargaining.
Question: Winter Park
A very high-end retailer wants to locate in the greater Orlando
area (Orange County, Florida. How favorable are the market
conditions, political conditions, and planning system for the
retailer to locate in the City of Winter Park?
Market conditions: There are many locations in the region in
15. which to locate businesses in general, and thus a lot of
competition. Winter Park is a particularly “fashionable”
address and there is, in general, a great demand to locate in this
particular city by high-end businesses. Orlando’s reputation as
an address has improved over the years, and Winter Park is not
as well known as other high-end cities across the country.
Political conditions: The citizens of this wealthy community
are extremely engaged in civic affairs. Because the citizens
were displeased with the local power company, they recently
used an option to purchase it.
Planning system: As with most American urban areas, Orange
County, Florida, allows its cities to compete with relatively
little intervention. In fact, sometimes the County quietly
competes with the cities, too, for low cost and cost-intensive
businesses.
Mark along the spectrum how favorable or unfavorable the
bargaining position is for a retailer who wants to locate in
Winter Park in this scenario?Favorable to the
retailerUnfavorable to the retailerMarket conditionsPolitical
conditionsPlanning system conditions
Mark along the spectrum how favorable or unfavorable the
bargaining position is for a retailer who wants to locate in
Winter Park in this scenario?Favorable to the
retailerUnfavorable to the retailerMarket conditionsPolitical
conditionsPlanning system conditions
Example of Bargaining Success:
The Mission Inn—The 1880s to 1930s (the good years)
16. Hard times set in…
Great Depression
It was sold by the family in 1956.
Rise of Las Vegas
Bought by City in 1976 to save building
Used for a variety of purposes including student housing!
Major effort to redevelop the property starting 1985
Developer 1 with city: $30 million was not enough!
Developer 2 and 3: failed attempts
Developer 4: Duane Roberts and success; reopened in 1992
Recent return to success looks like…
Example of Bargaining Excess:
Indianapolis and the United Airlines Maintenance Hub
in 1989 when United Air Lines announced that it was creating a
17. new maintenance hub that would employ 7,000 people and
would result in hundreds of millions in new investment.
Ninety localities investigated the option
The competition was so fierce that United Airlines then made
the bids secret and delayed the decision so the competition
could play out.
Ultimately, the lucky city was Indianapolis, a city eager to
bring high-end mechanics jobs to the area. Hurrah!
Good bargaining conditions for UA.
Market: Indianapolis desperate and business could be flexible in
locale
Political conditions: Citizens wanted and politicians
inexperienced
Planning system: 90 cities competing, driving up the required
government investment
(The city and state put $300 million into the deal.)
At its height, the facility employed less than 3,000, rather than
the expected 7,500 employees.
The rent of $700,000 was a fraction of the cost of the bond
repayment at $14,000,000 a year.
United Airlines declared Chapter 11 bankruptcy in 2002, and
soon announced that it would be closing the facility
United was able to renege on its bond obligations due to
bankruptcy restructuring
The city, which had co-signed because the investment was on
city land, could not.
While the city and its airport now fully own the massive
maintenance facility and they rent out parts of it, it will likely
always be vastly underutilized, employing hundreds rather than
thousands, and financially act a drain.
Moral of the story: Like all business ventures, economic
development is subject to failure as much as success. Quality of
18. ideas, practical planning, and good implementation are critical
success. From the government perspective, not all economic
development is necessarily good or appropriate.
How Government Should Be Protecting the Public Interest
Create a clear project plan
Reduce incentives for dysfunctional competition among
governments
Allow regional authorities a larger share in major initiatives
Depoliticize the process when contracts and bidding are in
motion
Ensure administrative competence
Know who you are dealing with
Eliminate and revise an outdated economic development policy
The Strategies that Business Can Use to Increase Its Success in
Bargaining with Government
Know the local factors affecting business advantages and
disadvantages in bargaining.
Determine strategic trade-offs and win-win prospects, related to
both the community philosophy and status of bargaining
leverage.
Spend the time necessary to meet and get to know the local
players.
Integrate a CRS perspective into the planning process as both an
ethical necessity and pragmatic advantage.
Be prepared to adapt the plan.
PRINT
BUSINESS PLANS VERSUS MARKETING PLANS
Some of the Web sites and other research resources you might
19. visit in this course refer to a business plan, rather than
a marketing plan. Although those two types of plans are related,
and both are very important to growing a business, they are not
one in the same. It is important for you to understand the
function of each type of plan, so you can focus on the proper
aspects for your assessments in this course.
The Business Plan
A business plan outlines and defines a business, and identifies
the goals and objectives for the organization. Think of it as
providing the big picture, or the overall scope of the company.
It includes all aspects of the organization, including the
objectives and strategies set for use in a specific timeframe. An
overall business plan includes several sections, such as the:
· Executive Summary.
· Business Description.
· Market Strategies.
· Competitive Analysis.
· Design and Development Plan.
· Operations and Management Plans.
· Financial Components.
The Marketing Plan
By contrast, a marketing plan is a subset of the overall business
plan. It focuses specifically on how the organization will seek
new customers. It outlines the detailed marketing activities for
the organization. Marketing plans include explanations of how
the company will get customers to buy its products and services.
Marketing plans also present methods for getting the message
out to the organization’s target market. Some sections
commonly appearing in a marketing plan include:
· Products and Services, and Your Unique Selling Proposition.
· Pricing Strategy Sales or Distribution Plan.
· Advertising and Promotions Plan.
In this course, we will look specifically at the marketing
plan portion of the overall business plan. Please keep this in
mind and look specifically for the marketing sections of the
plans you study throughout this course, including the plans
20. provided to you as examples, the plans from the recommended
Web site resources, and plans you research on your own. Be
careful to limit your focus in order to address the proper content
for this course.
Market Environment and Research Scoring Guide
CRITERIA
NON-PERFORMANCE
BASIC
PROFICIENT
DISTINGUISHED
Explain how characteristics of the U.S. economy affect a
company's retail operations.
Does not identify characteristics of the U.S. economy that affect
a company's retail operations.
Identifies characteristics of the U.S. economy that affect a
company's retail operations, but does not explain their
significance.
Explains how characteristics of the U.S. economy affect a
company's retail operations.
Explains how characteristics of the U.S. economy affect a
company's retail operations and specifies potential marketing
changes needed based upon emerging trends in this
environmental factor.
Explain how characteristics of the global economy affect a
company's retail operations.
Does not identify characteristics of the global economy that
affect a company's retail operations.
Identifies characteristics of the global economy that affect a
company's retail operations, but does not explain their
significance.
Explains how characteristics of the global economy affect a
company's retail operations.
Explains how characteristics of the global economy affect a
21. company's retail operations and specifies potential marketing
changes needed based upon emerging trends in this
environmental factor.
Explain how characteristics of the legal and regulatory
environment affect a company's retail operations.
Does not identify characteristics of the legal and regulatory
environment that affect a company's retail operations.
Identifies characteristics of the legal and regulatory
environment that affect a company's retail operations, but does
not explain their significance.
Explains how characteristics of the legal and regulatory
environment affect a company's retail operations.
Explains how characteristics of the legal and regulatory
environment affect a company's retail operations and specifies
potential marketing changes needed based upon emerging trends
in this environmental factor.
Explain how characteristics of technological forces affect a
company's retail operations.
Does not identify characteristics of technological forces that
affect a company's retail operations.
Identifies characteristics of technological forces that affect a
company's retail operations, but does not explain their
significance.
Explains how characteristics of technological forces affect a
company's retail operations.
Explains how characteristics of technological forces affect a
company's retail operations and specifies potential marketing
changes needed based upon emerging trends in this
environmental factor.
Explain how secondary sources of information can be used in
developing an integrated marketing plan.
Does not identify secondary sources of information as a
component of developing an integrated marketing plan.
Identifies secondary sources of information as a component of
developing an integrated marketing plan.
Explains how secondary sources of information can be used in
22. developing an integrated marketing plan.
Explains how secondary sources of information can be used in
developing an integrated marketing plan and assesses the
limitations of the identified sources.
Analyze the value of secondary sources of information to
business economic success.
Does not describe the value of secondary sources of information
to business economic success.
Describes the value of secondary sources of information to
business economic success, but does not explain their
significance.
Analyzes the value of secondary sources of information to
business economic success.
Analyzes the value of secondary sources of information to
business economic success and assesses potential limitations of
these sources for this purpose.
Market Environment and Research
Defining Marketing
Marketing is generally described as "the process of creating,
distributing, promoting, and pricing goods, services, and ideas
to facilitate satisfying exchange relationships with customers in
a dynamic environment" (Pride & Ferrell, 2000). Examine the
Consumer Position diagram. This is a classic diagram of the
positioning of the consumer, elements of the marketing mix, and
the marketing environment.
The marketing mix lies at the core of a marketing strategy.
Understanding and tracking the marketing environment is a
critical marketing function, focusing on the customer as the
center of the organization's attention. The organization can, and
usually does, adjust its products, pricing, promotion, and place
(distribution) to meet consumer needs and to react to external
forces.
Product, pricing, promotion, and place are commonly referred to
23. as "the four Ps."
1. Product: The product variable deals with the development of
products and services that address consumer needs and wants.
This includes product names, brand decisions, warranties, and
other services associated with the product.
2. Place: Products and services must be made available to
consumers when and where they need them. Marketing decisions
in this area include inventory levels, distribution methods, retail
outlet decisions, and wholesaler agreements.
3. Price: Marketing decisions regarding the pricing of products
and services include an evaluation of the value the consumer
receives in exchange for money, discount promotions, and
overall pricing objectives and positioning.
4. Promotion: Promotion includes sales activity, advertising,
public relations, training materials, and other communication
tools for the marketer.
Assessment 1 Context
BUS-FP3030 Assessment 1 Context
1
Panache: Some consider panache to be the fifth "P." Panache is
that creative element derived from a truly integrated marketing
plan that really sets an idea apart. For example, the introduction
of Legg's Panty Hose a number of years ago had such successful
panache that it forever changed the way products of this kind
are marketed. Legg's introduced new packaging (the egg
container), new place (in grocery stores where women shopped
every week, as opposed to department stores), new low pricing,
and terrific promotion. Another innovative example is the Dell
Computers direct-to-consumer model. The introduction of this
distribution model also set a new standard that others have had
to follow.
Given the competitive nature of virtually every market these
days, the successful marketing plan must truly be an integrated
one; one in which each element supports the message being
24. communicated by the other. For example, it is difficult to
charge a high price for a product and then channel it through
non-exclusive distribution that will ultimately diminish its
value in the customer's mind. For this reason, Mont Blanc pens,
priced at about $100, are sold in few retail outlets. Coca-Cola,
on the other hand, attempts to make its product available in
practically every corner of the Earth, in some form or another
(vending, grocery, convenience, restaurants, and so forth.). The
Coca-Cola company is not as concerned about price as Mont
Blanc is.
Conducting Market Research
Market research is defined as the process of systematically and
objectively gathering information to aid in making marketing
(and other) decisions. The process includes specifying which
information is required, designing the method of collection,
managing collection, analyzing the data, and effectively
communicating the findings and their implications. Numerous
tools are available for each business to make the marketing
research process simple and easy. For example, registration
cards, customer mailing lists, Web sites, and e- mail newsletters
can all help an organization stay connected to its customer base.
All organizations practice the market research process; some are
just more formal about it than others. The owner of a small sole
proprietorship may pay close attention to what his or her
customers are saying every day and use that to make
adjustments in how business is done. A consumer-products giant
like Proctor and Gamble may spend millions to identify new
products or new markets that will allow it to maintain sales
growth and, in some instances, market dominance. Proctor and
Gamble has a number of entries in the clothing detergent market
and is always looking for ways to improve that position.
There are two types of market research: secondary data research
and primary data research. Secondary data are data that you can
locate in previous studies or other published sources, while
primary data include interviews, mail surveys, phone surveys,
and focus groups (discussion groups of between 10 and 12
25. participants, each led by a moderator). Marketers typically
prefer having the opportunity to communicate directly with
customers through primary research.
Each of these two methodologies has its advantages and
disadvantages. Telephone interviews, focus groups, mall
interviews, mail surveys, and Internet surveys can all provide
the necessary information for research. The key to any
successful research effort will be to choose the method that best
and most cost-effectively meets the research objectives.
Telephone interviews are fast and inexpensive. The biggest
problem researchers face is customer willingness to answer
calls and participate in the survey for a few minutes. Most
consumers have become very skeptical about this process,
suspecting that we are trying to be
Assessment 1 Context
BUS-FP3030 Assessment 1 Context
2
sold something over the telephone. This kind of survey works
well with simple questions and answers that provide the
customers' perspective in a clear and concise manner.
Focus groups, on the other hand, provide a lot of leeway in
probing into customers' mindsets and attitudes. In this setting,
customers will interact with each other as well as the moderator,
uncovering thoughts and beliefs in the discussions. Focus
groups are expensive to set up, and it can be difficult to get the
right consumer mix, but they provide very valuable insights.
In-depth interviews also provide excellent insight into the
issues being addressed. These are also difficult to set up. Mall-
intercept interviews generate a lot of data that can, in turn, be
comprehensive, yet tough to interpret. For certain market
segments, the target market may be impossible to reach with
this kind of method. Trade shows are often used to reach
specific populations (such as physicians) and will even entice
them with a gift of some kind. With the right kind of survey, the
26. information provided might well be worth the cost of a small
gift.
Mail and Internet surveys are fast and easy. The marketer,
however, loses control over who responds. For homogeneous
groups, such as a student population or members of an
association, these are excellent tools that provide timely
information. For large groups, the expectation lies in the
response rate of the group being polled; only a small percentage
will take the time to complete the survey. If the number meets
what is needed for statistical validity, the sample can be of
enormous value.
Internet surveys have the advantage of being very fast and easy
for the consumer to execute. This format is expected to
represent the future of market research, with the marketers'
primary effort focused on getting the respondent to the survey
site. The data provided then becomes instantly accessible and
easy to collate.
Reference
Pride, W., & Ferrell, O. (2000). Marketing: Concepts and
strategies. New York, NY: Houghton/Mifflin.
Assessment 1 Context
BUS-FP3030 Assessment 1 Context
3
Context
Before you begin analyzing and applying principles of
marketing, consider that there are two important perspectives on
the marketing field:
1. That of a professional marketer working on reaching a
targeted market.
2. That of interested consumers, each a part of a different target
markets; each inundated with marketing messages.
You make this distinction so that you can more closely analyze
what marketing means and how to tell good plans and ideas
27. from the bad ones.
The Assessment 1 Context document contains important
information related to the following topics:
· Defining Markets.
· Conducting Market Research.
Questions to consider
To deepen your understanding, you are encouraged to consider
the questions below and discuss them with a fellow learner, a
work associate, an interested friend, or a member of the
business community.
· Based on your research of an organization:
. How does the organization's positioning in the marketplace
compare to its competitors?
. How are its product lines similar or different?
. If you consider a particular product category, such as outdoor
apparel, how do the marketing strategies compare?
. How does this relate to the target market segments for these
companies?
Increasingly, social media sites are utilizing and sharing
consumer information that many people consider private, such
as their geographic location and their purchasing preferences.
This has resulted in some controversy for organizations like
Apple and Google.
· How can marketing departments utilize consumer information
from social media to benefit their companies and their
customers, while also taking into account privacy concerns?
Required Resources
The following resources are required to complete the
assessment.
Capella Resources
Click the links provided to view the following resources:
· REI Case Study – Research Guide.
. In this course, you will complete two assessments based on a
case study of REI. This guide is intended to provide you with a
starting point for your research.
Internet Resources
28. Access the following resources by clicking the links provided.
Please note that URLs change frequently. Permissions for the
following links have been either granted or deemed appropriate
for educational use at the time of course publication.
· REI. (2013). Retrieved from http://www.rei.com.
Suggested Resources
The following optional resources are provided to support you in
completing the assessment or to provide a helpful context. For
additional resources, refer to the Research Resources and
Supplemental Resources in the left navigation menu of your
courseroom.
Capella Resources
Click the links provided to view the following resources:
· Assessment 1 Context.
· Business Plans Versus Marketing Plans.
Library Resources
The following e-books or articles from the Capella University
Library are linked directly in this course:
· Ruskin-Brown, I. (2006). Mastering marketing (2nd ed.).
London, GBR: Thorogood Publishing.
· McDonald, M., & Wilson, H. (2011). Marketing plans: How to
prepare them, how to use them (7th ed.). Hoboken, NJ: Wiley.
· Kermally, S. (2004). Gurus on marketing. London, GBR:
Thorogood Publishing.
· Clark, K. (2000, June). Feeling the heat. Chain Store Age,
76(6), 60–62.
Course Library Guide
A Capella University library guide has been created specifically
for your use in this course. You are encouraged to refer to the
resources in the BUS-FP3030 – Fundamentals of Marketing and
Sales Library Guide to help direct your research.
Internet Resources
Access the following resources by clicking the links provided.
Please note that URLs change frequently. Permissions for the
following links have been either granted or deemed appropriate
29. for educational use at the time of course publication.
· Marketing Power, Inc. (2013). American Marketing
Association. Retrieved from
http://www.marketingpower.com/Pages/default.aspx
· Hoover's, Inc. (2013). Hoovers. Retrieved from
http://www.hoovers.com
· The Ad Age Group. (2014). AdvertisingAge. Retrieved from
http://adage.com
· Direct Marketing Association. (2013). DMA: Advancing and
protecting responsible data-driven marketing. Retrieved from
http://thedma.org
· Concept Marketing Group Inc. (2013). Concept Marketing
Group. Retrieved from http://www.marketingsource.com
Tutorials: You are encouraged to use the following resources.
· KnowThis LLC. (2013). KnowThis.com. Retrieved from
http://www.knowthis.com/index.php.
· KnowThis LLC. (2013). How to write a marketing
plan. Retrieved from http://www.knowthis.com/principles-of-
marketing-tutorials/how-to-write-a-marketing-plan
. For the focus of this assessment, you may want to examine the
following sections of the How to Write a Marketing
Plan tutorial from the site's Principles of Marketing Tutorials
list. Part 1 (Purpose and Mission) and Part 2 (Situational
Analysis) are recommended.
Secondary Marketing Resources: The following Web sites are
recommended as secondary sources for your research on the REI
case study.
· National Sporting Goods Association. (2013). NSGA.
Retrieved from https://www.nsga.org/
· Sports and Fitness Industry Association.
(2013). SFIA. Retrieved from http://www.sfia.org
· Internet Archive. (2013). Wayback machine. Retrieved from
http://archive.org/web/web.php
Books
· Lamb, C. W., Hair, J. F., & McDaniel, C. (2019). MKTG
12 (12th ed.). Boston, MA: Cengage Learning. Available in the
30. courseroom via the VitalSource Bookshelf link.
· Ries, A., & Trout, J. (1994). The 22 immutable laws of
marketing. New York, NY: Harper Business. Available in the
courseroom via the VitalSource Bookshelf link.
Instructions
Case studies are a very effective way of applying business
concepts to a real-world situation and that approach will be
used for this activity. For this assessment, consider that you
work as a marketing analyst for a consulting firm and that your
manager asked you to develop a case study for the executive
team of the organization in the case. That executive team will
use your analysis and recommendations in their business
planning.
Preparation
For this assessment, refer to the REI Case Study – Research
Guide, linked in the Resources under the Required Resources
heading. In addition, conduct independent research to develop a
case study based on REI.
Your research resources should include the REI organization's
Web site, but you are also expected to use information about
REI that has been gathered by organizations that are devoted to
marketing research. These organizations are referred to
as secondary sources. A short list of secondary sources is
provided for you in the REI Case Study – Research Guide. Use
these sites to get your research started. You are encouraged to
explore further secondary sources.
Conduct your research on REI, focusing on the following topics:
· How does the current U.S. economy affect REI retail
operations? Specify potential marketing changes needed based
upon emerging trends in this environmental factor.
· How does the current global economy affect REI retail
operations? Specify potential marketing changes needed based
upon emerging trends in this environmental factor.
· What types of legal and regulatory forces affect REI in the
United States? Specify potential marketing changes needed
based upon emerging trends in this environmental factor.
31. · What types of social and culture trends affect REI? Specify
potential marketing changes needed based upon emerging trends
in this environmental factor.
· What types of technology changes affect REI? Specify
potential marketing changes needed based upon emerging trends
in this environmental factor.
Organizational Profile Development
Based on your research, develop an organizational profile for
REI's marketing environment, analyzing the key environmental
factors of the U.S. economy, global economy, legal and
regulatory environment, socio-cultural forces, and technological
forces.
· Identify three or more of the secondary sources of information
available for conducting market research on REI.
· Develop a short analysis of the value of these secondary
sources, specifically in gathering information on REI.
. How might these secondary sources be used to develop an
integrated marketing plan? What are the limitations of the
identified sources?
. How valuable would their information be in developing a
marketing plan that would contribute to the company's economic
success? What are potential limitations of these sources for this
purpose?
Based on your executive audience, your case study should be
well organized and written in clear, succinct language. Follow
APA rules for attributing sources that support your analysis and
conclusions.
Academic Integrity and APA Formatting
As a reminder related to using APA rules to ensure academic
honesty:
1. When using a direct quote (using exact or nearly exact
wording), you must enclose the quoted wording in quotation
marks, immediately followed by an in-text citation. The source
must then be listed in your references page.
2. When paraphrasing (using your own words to describe a non-
original idea), the paraphrased idea must be immediately
32. followed by an in-text citation and the source must be listed in
your references page.