Chapter 12

Secondary research is ...

often free and quick No need to design questions and gather info yourself

Written Plan

specific details about your target market Present and near-future situation, including competitors Identify differential advantage May include financial projections

Differential Advantage

The characteristic that separates one company from another in product, price, promotion, and/or distribution. Pricing (prestige pricing) Place or location Product Promotion(clever advertisement)

Secondary Research

Information already collected for some other purpose than the current problem or questions.

Dichotomous questions (yes/no)

Questions that have only two possible choices; for example, "Have you shopped here before?"

Market Segmentation

The process of dividing the market into groups that have somewhat homogeneous needs for a product or service.

Close-ended questions

They can limit the info you get

Close-ended questions

They make it much easier to compare groups and to statistically analyze

Primary Data

It is very specific to problem solving information is extremely current Take some more time and money to gather it Marketing research firms can do this for you

Secondary data is ...

always a good starting point for research

Observation/(Ethnographic research)

data gathered by simple observation - seeing what consumers do, rather than asking them

Open-ended questions

Can help you find new niches to perfect your product or service Provide data that are more difficult to tabulate

Indirect Competition

Companies that provide alternatives that are dissimilar to your product/ service that consumers might choose to meet a similar need; eg, indirect competition for Coca-Cola includes any other company that provides items to quench thirst.

Categorical questions (nominal)

Uses predetermined groups to choose from like age, race...

Marketing Plan

a systematic written plan of all phases of marketing for a business, including information on the product, price, and distribution and promotion strategy, as well as a clear identification of the target market and competition

Direct Competition

Other companies that make a similar product or provide a similar service; eg, direct competition for Coca-Cola includes all other soft drink providers.

Prestige Pricing

People will pay more for a particular name brand because of the perceived benefits

BOT

A Web-based program that uses artificial intelligence techniques to automate tasks such as searches.

Survey

A data-collection method using a questionnaire...collected... in person (interview) on phone (phone survey) on paper (mail survey) on the Internet (internet survey)

Sales Forecasting

Knowing what your sales will be Companies often base sales forecasts on historical sales, but new companies cannot do that

Primary Research

New information collected to solve a problem at hand or answer current questions.

Open-ended questions

Questions that allow respondents to express themselves as they choose; for example, "What do you like about this book?"

Categorical questions (nominal)

Questions that are answered by selecting the proper category; for example, "What is your ethnicity? White, African American, Hispanic, Asian, American Indian, Other."

Scalar questions (ordinal) (close-ended)

Questions that are answered by some sort of scale; for example, "On a scale of 1 to 5, how do you like this book?"

Marketing Research

Systematic collection and interpretation of data to support future marketing decisions. Can verify the size of the potential market Specific numbers and hard facts give entrepreneurs confidence that a plan will work

Focus Group

form of data gathering from a small group led by a moderator

Secondary Data

information already collected for some other purpose than the current problem

Concentrated

A marketing strategy in which a marketer selects one specific group of consumers and designs a marketing mix specifically for that group.

Differentiated

A marketing strategy in which a marketer selects two or more distinct groups of consumers and designs specific marketing mixes to meet each group's needs.

Undifferentiated

A marketing strategy that uses no segmentation; assumes that all consumers have virtually identical needs and can be reached by the same marketing mix.