MKT 291 - Exam #1

market variable: channels

- B2B (business to business) - physical/digital - peer to peer - VAR, Franchise

frequent survey topics

- brand awareness - brand image - customer satisfaction - Net Promoter Score (NPS)

market variable: category

- category - subcategory - product line - form

Step 1: Gaining Consumer Insight

- create a research question - do research (exploratory, descriptive, causal)

types of primary data

- customer behavior - awareness - intention - motivation - demographics/socioeconomics - attitudes - psychographic/lifestyle

market variable: competitors

- direct - indirect - customers - suppliers

sources of External Environment information

- employee/customer feedback - consumer insight research - industry experts - census data - industry and gov. reports - social media - trade associations - magazines, newspapers, journals - annual publications - various online research and trend watch alerts

market variables

- geography - category - channels - competitors

market variable: geography

- global - national - regional - local

actors in the immediate environment

- intermediaries - employees - shareholders - customers - competitors - suppliers

marketing research process steps

1. gaining consumer insight 2. focus on exploratory research 3. focus on conducting surveys

Effective Segmentation

1. identify ways to segment the market 2. use the target market process to create a market segment, evaluate it, and develop a target market strategy 3. develop a buyer persona to better understand the targeted market segment

Brand Awareness survey

1. list the names of the first 3 brands that come to mind for x? ________ 2. Which of the following brands have you seen in retail stores? yes/no

External Environment Scanning process

1. observe what's happening in PESTLE 2. identify trends and patterns relevant to company/industry 3. interpret why this is happening 4. predict what will happen because of this trend 5. analyze how your strengths and weaknesses relate to these future changes 6. strategize how you can take advantage of opportunities and prepare for threats

7 Ps of Marketing

1. product 2. price 3. place 4. promotion 5. process 6. people 7. physical evidence ** customer is at the center pieces are independent but should all align and work together

external environment forces

PESTLE 1. Political 2. Economic 3. Social 4. Technological 5. Legal E. Environmental

exchange

a basic business function that takes place when a person or company satisfies a need by exchanging money for products or services (ex: a sale)

market segment

a group of consumers with shared characteristics and similar product needs who respond similarly to marketing efforts

marketing concept

a management orientation that focuses on identifying and satisfying consumer needs to ensure the organization's long-term profitability starting point: customer segment focus: customer needs outcome: long-term profits through customer satisfaction (ads, promos, product development, customer service)

target markets: Identifiable

a marketer can clearly identify the segments and can describe the traits/characteristics of the segments

literature search

a search for statistics and content in various journal articles, blogs, books, newspapers, or magazines for data/insight into the research subject

focus groups

a small group of individuals from whom a researcher wishes to gain insights through a structured interview process that is moderated by a facilitator

marketing

a specialized form of communication between businesses and consumers (a process that involves exchange)

Net Promoter Score (NPS)

a specific metric used to measure the experience customers have with brands "How likely is it that you would recommend [brand] to a friend or colleague?" - 9-10: promoters - 7-8: passives - 0-6: detractors NPS = (Promoter %/ Total) - (Detractor %/ Total)

employees

affect everything from product sales to customer service; sometimes responsible for the product itself

dimension

allows for the market to be measured for growth and share - market metrics: units and revenue - shopping metrics: shopper visits, avg. basket size - consumer metrics: passengers, guest nights

usage rate

based on actual or potential consumption of a product/service - light/occasional usage: target to increase sales - medium/heavy usage: target most loyal/frequent customers with current/custom product offerings - no usage: targeting those who haven't tried the product

Product

can be a good/service/idea to satisfy a customer's needs ex: product quality, packaging, color, size

competitors

can validate your product ideas, help educate a target market, and drive product innovation; powerful comps can even set the price of a certain good/service

meaningful characteristics

characteristics that are relevant in determining which consumers have similar/dissimilar product needs

Political forces

cover the stability and general state of politics in the region ex: political instability in general, trade agreements, tariff policy, tensions between domestic political groups

NPS: Promoters (9-10)

customers who are loyal enthusiasts, tend to buy more, stay in relationships with brands longer, refer friends, and provide feedback and ideas

NPS: Passives (7-8)

customers who are satisfied but not enthusiastic about the brand, vulnerable to competitive offerings

NPS: Detractors (0-6)

customers who are unhappy and can hurt your brand through negative word-of-mouth

primary data: Demographics/Socioeconomics

data that measure characteristics of consumers (income, gender, education level, marital status, social status, etc.); often reveals certain segments of consumers with strong affinity or loyalty to a brand

primary data: Attitudes

data that measure consumers' feelings, convictions, or beliefs about a brand; attitudes lead to actions ex: how do you feel about our franchise?

primary data: Intention

data that measure future, anticipated behaviors; helps marketers predict demand or future consumption ex: how often do you expect to visit our franchise in the next month

primary data: Psychographic/Lifestyle

data that measure personality traits, interests, opinions, or lifestyle characteristics of consumers; create a persona of the ideal consumer ex: do you consider yourself more of an extrovert or an introvert?

primary data: Awareness

data that measures the knowledge consumers have of brands, products, and solutions ex: how familiar are you with our fast-food franchise?

primary data: Motivation

data that measures the motives of consumers; gathered for understanding what conditions drive behavior ex: what causes you to want to visit our franchise?

suppliers

directly influence a company; depends on if their prices rise and how the quality is

market segmentation

dividing the larger market into smaller segments based on meaningfully shared characteristics and shared needs - allows marketers to market efficiently, increase ROI, & bring more value and satisfaction to customers

geographic location

dividing up the market according to consumer location - country, city/rural, zip code, pop. density, regions within the country, desert/tundra

People

encompasses the human actors who provide good/service/ideas to the customer ex: customer service, sales people, customer-facing employees

Brand Image survey

if you wanted to tell your friends about this brand, how would you describe it to them? ________

Marketing Management role

implements the marketing strategy defined by CMO in the day-to-day activities of the marketing team

Economic forces

include all factors that influence the wealth or buying power of consumers, including inflation, income, employment, interest rates, and productivity ex: GDP per country, disposable income per capita, prime interest rate, employment rate, exchange rates

Technological forces

include anything that affects innovation, including tech. advances, hardware and software capabilities, and the state of learning in general ex: computer processing speed, wireless capabilities, automation capabilities, cell phone functionality

Social forces

include demographic characteristics and the culture of the population, including cultural values and personal values; "the customer base" ex: age distribution of population, pop. growth, marital status, religion, work ethic, environmental sustainability, job mobility preferences

Legal forces

include the regulatory systems that affect business at the local, regional, national, and international levels ex: health/safety laws, antitrust laws against monopolies, intellectual property, trademark, copyright law

marketing environment

includes all of the forces that affect a company's ability to do business

Environmental forces

includes elements of climate, weather, or natural resources that affect production, purchasing, or other economic activity ex: raw materials available, weather patterns, terrain of area, natural disasters, climate (change)

immediate environment (microenvironment)

includes players (companies, people, groups, organizations) that can directly influence a company's ability to market successfully

Physical Evidence

includes the tangible elements in the place that the good/service is sold; everything someone can see, hear, smell while purchasing the product ex: signage, uniforms, decor, music

external environment (macroenvironment)

includes the uncontrollable forces that affect the company and all actors in the immediate environment that establish the surrounding context in which business is conducted

projective methods

indirect methods (usually some task) that cause study participants to reveal their feelings, thoughts, and opinions, or to express behaviors

case analyses

intensive study of representative examples (cases) of the subject under study

SWOT analysis: Strength (internal)

internal attributes of a company/product that give it a competitive advantage or superior position - can include brand equity, product features, employee training and skill set, intellectual property, industry knowledge, industry relationships, etc.

SWOT analysis: Weakness (internal)

internal deficiencies in the company/product that are potential problem areas - can include product attributes that consumers view as subpar, cash flow or funding problems, staffing or training shortcomings, etc.

depth interview

interviews with people who are knowledgeable about the general subject under investigation

shareholders

investors in a company and have a stake and influence in the decisions that are made

process

involves people, a sequence of steps or activity, inputs, data, and outcomes

psychographic segmentation

involves segmenting the market by consumer activities, values, interests, and opinions - values, beliefs, attitudes, feelings, personality, lifestyle, activities and interests, religious and political beliefs and affiliations

CMO or VP of Marketing role

leads the team and is responsible for developing the marketing strategy, ensuring it's effective and aligns with corporate objectives

customers

main focus of the company; influence purchases of other customers

primary data

new-to-the-world data collected specifically for the research project at hand - obtained by depth interviews, focus groups, case analyses, and projective methods

Marketing Research role

tasked with conducting research about customers, competitors, and the market

selling concept

tendency to focus on selling current products and services to consumers starting point: company focus: existing products outcome: short-term profits through sales volume

Price

the amount that is being charged for the good/service/idea; can be adjusted to appeal to consumer and provide value ex: discounts, bundle pricing

target marketing

the process of selecting one or more segments for focused marketing efforts desirable target markets are: Identifiable, Sizable, Stable, Accessible, and Congruent

marketing management

the process of setting marketing goals, the planning and execution of activities to meet these goals, and measuring progress toward their achievement

Marketing Operations role

the project and technology manager of the marketing team

marketing mix

the set of major categories of ingredients (building blocks of marketing) that a marketer can adjust to affect the overall marketing strategy of a product

usage situation

the way in which a person might purchase/use the product or the occasion for which a person might purchase the product ex: holidays, birthdays, time/work schedule, product usage

descriptive research

focuses on determining how often something occurs or how 2 things are related to each other - ideal for quantifying feelings, attitudes, or opinions of s specific pop. through a set of structured questions and response options

exploratory research

focuses on gaining ideas or insight that funnel broad research questions into more specific ones - qualitative data is usually collected by asking open-ended questions - yields unstructured data in the form of opinions, reasons, thoughts, or motivations - primary & 2ndary data

usage behavior

pop. is divided based on how much they use and how they use a product a. usage rate b. usage situation

secondary data

pre-existing data originally gathered for another purpose but are helpful for other research projects - no delay or cost

research question

primary goal of the marketing research effort ex: how satisfied are customers? how aware are customers of new products?

causal research

quantitative and focuses on discovering the cause-and-effect relationship between variables (often experiments)

Customer Satisfaction survey

regular ongoing surveys will reveal if satisfaction is rising/failing; research may even enable identification of unhappy customers, giving the brand an opportunity to address specific satisfaction issues

direction

reports on the trend that the market is taking around a specific or series of dimensions - prior periods: - P1M, P3M, P6M - prior year

Promotion

represents the means of communicating with the customer; any communication from a marketer to inform and persuade the customer of the product value ex: TV ads, billboards, sponsorships

Content Marketing role

responsible for creating and publishing a steady stream of new and compelling content developed specifically to capture the attention of customers and prospects

Digital Marketing role

responsible for the online marketing efforts of the team, managing the website, performing Search Engine Optimization (SEO), developing and managing pay-per-click advertising (PPS) campaigns, and managing corporate social media presence

SWOT analysis: Threats (external)

situations in the environment that could have a negative impact on the company/product

SWOT analysis: Opportunities (external)

situations that occur in the environment that a firm can take advantage of

demographic segmentation

using statistics to divide the market - age, gender, ethnicity, income, marital status, occupation, # of children

differentiation

what makes a product unique and makes it stand out to customers

primary data: Customer Behavior

gaining deep insights into why customers do things they do can help position a brand to become a leader in its chosen markets

Demand Generation role

has the responsibility of generating new business prospects, usually called "leads" in marketing terms

intermediaries

help get the product to customers and can help fulfill functions ex: wholesalers, retailers, agents, brokers, dealers

Marketing Analytics role

helps the company take advantage of all the data produced and stored about campaigns and customers; "data scientist", has technical, analytical, and communication skills

Step 1: Ways to Segment the Market

1. demographic segmentation 2. geographic location 3. psychographic segmentation 4. usage behavior

designing a survey

1. reexamine the research question 2. specify what info the survey must collect 3. identify who should take the survey 4. develop the questions to ask 5. create "dummy" tables to show how you will use the data 6. devise a way to recruit people to take the survey 7. build and test the survey 8. field the survey; publish it or communicate it to the targeted pop.

data mining

the process of searching or "mining" for insights from the patterns, trends, and relationships within sets of data

Process

the flow of activities involved in providing good/service/ideas to the customer; a system of actions must occur to get the good from starting point to end consumer ex: service blueprint, standard set for points in process, supply chain, content creation, layout

Place

the means of getting the good/service/idea to the customer; how the customer can find the product and how it's distributed ex: store shelf, company website, Amazon

marketing research

the process of collecting and analyzing information from and about consumers to influence marketing strategy and decisions

environmental scanning

the process of gathering and interpreting data in the immediate and external environments to identify possible opportunities and threats and to develop strategic plans from them