MKT-315 Ch. 2 Marketing Research & Strategy Notes PDF

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Notes for MKT-315 Ch. 2: Marketing Research & Strategy...

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MKT-315 Ch. 2 Marketing Research & Strategy Notes Introduction ● Marketing Research- process of analyzing data about a company’s product/service Importance of Marketing Research ● Understand the nature & characteristics of markets served ● Identify specific groups of customers their needs & wants ● Assess the current situation of the business within the marketplace Categories of Marketing Data ● Market- Competition, economic shifts, tech trends, available opportunities ● Audience- Consumer buying habits, demand estimation, price sensitivity ● Firm- Strengths & Weaknesses, current perceptions & positions Market Research Process ● Involves: Demographics, trends, buying habits, competition, industry environment ● Marketing Research helps organizations find opportunities & evaluate business decisions using data ● 5 step marketing research process: - Identify the Problem- setting research objectives & identifying the possible outcomes - Develop Research Plan- specifying any restrictions, identifying data needed for marketing, & best way to collect data 2 kinds of data collection: Secondary Data- existing sources of data/info Primary Data- collects new data/info - Conduct Research- understand the entire landscape of the problem; Qualitative or Quantitative Data - Analyze Data & Report Findings- from collected data, analyze & draw conclusions from presented data - Take Action- developing specific marketing strategies & tactics to implement action on problem Secondary and Primary Data Research ● Data Collection- gathering information in a way to answer market research ?s ● Secondary Data- research data already collected by another business; relevant to answer research questions Cons of secondary: Too much info available, data out-of-date, bad credible sources

● Primary Data- info collected directly from the researcher’s own efforts; answers specific questions to fill gaps from secondary data Cons of primary: High-cost expense, time-consuming, only narrow perspective Code of Ethics in Marketing Research ● Invasion of Privacy- one of the most serious ethical considerations in marketing ● Most customers do not understand the extent that a company uses this info to reach customer w/ very targeted & specific info ● Code of Marketing Research Standards- promotes ethical culture in marketing research profession where honesty, professionalism, fairness & confidentiality combines to support profession’s success Market Segmentation ● Market Segmentation- dividing of entire available market into groups of consumers w/ similar characteristics ● Primary purpose of segmentation: provide deeper understanding of current customer & business’s prospective customers ● 3 variables of Modern Market Segmentation: - Geographic - Household-demographic - Lifestyle variables ● 2 used segmentation systems: - PRIZM- uses available census data & based on assumptions that similar households naturally group together - VALS- segments consumers based on their attitudes towards risk/status ● Both PRIZM & VALS help understand demographic & lifestyle characteristics of each customer segment 4 General Approaches of Segment Market ● Geographic- narrows market by where consumers are located ● Demographic- narrows market by characteristics of consumers; age, gender, income ● Psychographic- narrows segments of market by how consumer acts/think; personality, social status, values ● Behavioral- narrows segments of market by what consumers do; certain occasions, loyalty status, usage rate ● Once the market is broken up into focus groups, next step is specific target segment ● Target Market- segment of population selected by company to direct marketing efforts

Emotional Factors in Buying Decisions - Fear - Greed - Guilt - Anger - Flattery/ Sex Appeal Market-Product Grid ● Market-Product Grid- framework that matches market segments & their relative size to spot underserved needs; Helps identify primary & secondary markets Marketing Research Techniques ● 2 types of techniques: - Qualitative Research- understands consumer’s reasoning & behavior; gleaning thoughts, opinions; identifies right questions to ask - Quantitative Research- answers questions that is communicated through numbers/statistics; surveys, analytics; helps make marketing decisions ● Analytics occur largely online & most shown represented by codes placed Neuromarketing ● Neuromarketing- applying concept of neuroscience to marketing EX: Track eye movements, study of imaging of the brain ● Provides understanding of consumer behavior by looking at reactions & decision making from consumer’s unconscious level Data Collection Methods - Mail- widely used collection method for surveys & other forms of research - Telephone- used for short surveys and one-on-one interviews - In-Person- used in focus groups, interviews, observational/physiological research - Online Resources- preferred collection data method for low cost, quick performance, & instant analysis - Mobile Devices- innovative way to collect data through technology Differentiation & Positioning ● Differentiation- creating points of difference in the mind of consumers to stand out from competitors ● Positioning- owning a unique & compelling spot in the mind of consumer’s mind different from competitors ● Positioning Statement- declaration of a product, service, or brand’s uniqueness in the market

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4 key elements of Positioning Statement: Target Market- group of consumers which product/service is aimed Category- describes specific market where business is conducted Brand Promise- promise made to a consumer Reason to Believe- company’s core values & brand attributes that either individually or as a group form a unique selling proposition ● Repositioning- changing the place a product occupies in consumer’s mind relative to competitive products Perceptual Map ● Perceptual Map- tool that visualizes competitive landscape & spotting positioning opportunities; uses 2-3 variables to graph position of brand from competitors...