Principles of Marketing Modules 4-6

cross-sectional study

a study in which people of different ages are compared with one another

Differentiation

actually differentiating the market offering to create superior customer value

CRM differs from market share in that market share is the percentage of ________ in a category that are from a particular firm.

all sales

online marketing research

collecting primary data online through internet surveys, online focus groups, web-based experiments, or tracking consumers' online behavior

Internal databases

collections of consumer and market information obtained from data sources within the company network

Segmentation

dividing the total market into smaller sectors

survey research

gathering primary data by asking people questions about their knowledge, attitudes, preferences, and buying behavior

Observational research

gathering primary data by observing relevant people, actions, and situations

experimental research

gathering primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses

What are some struggles of international market research?

lack of internet, poor postal service, inability to get to interviews, cultural differences, language barriers, attitude toward market research, illiteracy

Customer Relationship Management (CRM)

managing detailed information about individual customers and carefully managing customer touch points to maximize customer loyalty

marketing analytics

the analysis tools, technologies, and processes by which marketers dig out meaningful patterns in big data to gain customer insights and gauge marketing performance

To select the best target market for a company's purposes, marketers must have an in-depth understanding of

the capabilities of their company

Big Data

the huge and complex data sets generated by today's sophisticated information generation, collection, storage, and analysis technologies

A good marketing information system balances

the information users would like to have against what they really need and what is feasible to offer

competitive marketing intelligence

the systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketing environment

Marketing Research

the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization

positioning

trying to put in the customers mind what the company has to offer

behavioral targeting

using online consumer tracking data to target advertisements and marketing offers to specific consumers

online focus groups

gathering a small group of people online with a trained moderator to chat about a product, service, or organization and gain qualitative insights about consumer attitudes and behavior

Discuss the special issues some marketing researchers face, including public policy and ethics issues

"Some marketers face special marketing research situations, such as those conducting research in small business, not-for-profit, or international situations. Marketing research can be conducted effectively by small businesses and nonprofit organizations with limited budgets. International marketing researchers follow the same steps as domestic researchers but often face more and different problems. All organizations need to act responsibly concerning major public policy and ethical issues surrounding marketing research, including issues of intrusions on consumer privacy and misuse of research findings."

Explain the importance of information in gaining insights about the marketplace and customers

"The marketing process starts with a complete understanding of the marketplace and consumer needs and wants. Thus, the company needs to turn sound consumer information into meaningful customer insights by which it can produce superior value for its customers. The company also requires information on competitors, resellers, and other actors and forces in the marketplace. Increasingly, marketers are viewing information not only as an input for making better decisions but also as an important strategic asset and marketing tool."

Decide on a value proposition

1. Differentiation 2. Positioning

Select customers to serve

1. Segmentation 2. Targeting

Marketing Research Process

DDii: 1. Define the problem and research objectives 2. Develop the research plan for collecting information 3. Implement the research plan - collecting and analyzing the data 4. Interpret and reporting the findings

marketing involves looking at the marketplace, identifying segments that are homogeneous, evaluating each segment, and deciding which segments the company is best suited to target.

Differentiated

Market Segmentation

Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs

MODULE 5

MODULE 5

Casual Research

Marketing research to test hypotheses about cause-and-effect relationships

focus group interviewing

Personal interviewing that involves inviting small groups of people to gather for a few hours with a trained interviewer to talk about a product, service, or organization. The interviewer "focuses" the group discussion on important issues.

Process for marketing evaluation

Size segment, evaluate growth, analyze competition

market share

a company's product sales as a percentage of total sales for that industry

ethnographic research

a form of observational research that involves sending trained observers to watch and interact with consumers in their "natural environments"

An example of product positioning and differentiation would be to ________ and ________ the competition.

analyze, evaluate

positioning

arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers

geographic segmentation

dividing a market into different geographical units, such as nations, states, regions, counties, cities, or even neighborhoods

psychographic segmentation

dividing a market into different segments based on social class, lifestyle, or personality characteristics

Behavioral Segmentation

dividing a market into segments based on consumer knowledge, attitudes, uses of a product, or responses to a product

occasion segmentation

dividing the market into segments according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item

benefit segmentation

dividing the market into segments according to the different benefits that consumers seek from the product

Market targeting (targeting)

evaluating each market segment's attractiveness and selecting one or more segments to enter

Primary research, such as focus groups and interviews, is also known as

exploratory research

The three types of research

exploratory, descriptive, causal

customer insights

fresh marketing information-based understandings of customers and the marketplace that become the basis for creating customer value, engagement, and relationships

four segmentation variables

geographic, demographic, psychographic, behavioral

goal of competitive marketing intelligence

improve strategic decision making by understanding the consumer environment, assessing and tracking competitors' actions, and providing early warnings of opportunities and threats

primary data

information collected for the specific purpose at hand

secondary data

information that already exists somewhere, having been collected for another purpose

Developing needed information

internal databases, marketing intelligence, and marketing research

Good ________, including a familiarity with the marketplace, is as important to making good marketing decisions as using the company's internal data.

marketing intelligence

undifferentiated

marketing is a targeting strategy designed to appeal to as many people as possible.

descriptive research

marketing research to better describe marketing problems, situations, or markets, such as the market potential for a product or the demographics and attitudes of consumers

Exploratory Research

marketing research to gather preliminary information that will help define problems and suggest hypotheses

small businesses and not-for-profit organizations can obtain good marketing insights through

observation or informal surveys using small convenience samples.

Designing a Customer Value-Driven Marketing Strategy

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Marketing Information System

people and procedures dedicated to assessing information needs, developing the needed information, and helping decision makers to use the information to generate and validate actionable customer and market insights

longtitudinal study

research in which the same people are restudied and retested over a long period

targeting

selecting statements to enter

immersion groups

small groups of consumers who interact directly and informally with product designers without a focus group moderator present

differentiation

standing out by creating superior customer value

Marketing Environment features

target market, marketing channels, competitors, publics, macroenvironment forces

Explain how companies use and analyze marketing info

"Information gathered in internal databases and through marketing intelligence and marketing research usually requires more analysis. To analyze individual customer data, many companies have now acquired or developed special software and analysis techniques—called customer relationship management (CRM)—that integrate, analyze, and apply the mountains of individual customer data to gain a 360-degree view of customers and build stronger the customer relationships. They apply marketing analytics to dig out meaningful patterns in big data and gain customer insights and gauge marketing performance. Marketing information has no value until it is used to make better marketing decisions. Thus, the MIS must make the information available to managers and others who make marketing decisions or deal with customers. In some cases, this means providing regular reports and updates; in other cases, it means making nonroutine information available for special situations and on-the-spot decisions. Many firms use company intranets and extranets to facilitate this process. Thanks to modern technology, today's marketing managers can gain direct access to marketing information at any time and from virtually any location."

define the marketing information system and discuss its parts

The MIS first assesses information needs. The MIS primarily serves the company's marketing and other managers, but it may also provide information to external partners. Then the MIS develops information from internal databases, marketing intelligence activities, and marketing research. Internal databases provide information on the company's own operations and departments. Such data can be obtained quickly and cheaply but often need to be adapted for marketing decisions. Marketing intelligence activities supply everyday information about developments in the external marketing environment, including listening and responding to the vast and complex digital environment. Market research consists of collecting information relevant to a specific marketing problem faced by the company. Last, the marketing information system helps users analyze and use the information to develop customer insights, make marketing decisions, and manage customer relationships."

demographic segmentation

dividing the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation