MKT 360 Chapter 1

Communication Technologies

Basically everyone is always "connected" today. Meaning we know the place, time, distance, and everything else. Decreases in information acquisition, storage, access, and transmission costs.

Global Marketing Research

It is becoming increasingly global as more and more firms take advantage of markets that have few, if any, geographic boundaries. It is becoming more common in emerging economies.

Identifying and Evaluating Opportunities

Monitoring the competitive environment for signals indicating a business opportunities is one job that marketing research performs. Simply understanding the trends in consumer behavior can help with this. This could even be tracking weather trends. This can help managers recognize problems and identify opportunities for enriching marketing efforts. It can motivate a firm to take action to address consumer desires in a way that is beneficial to both the customers and the firm. And lastly, it can identify changes in customers needs, uses, and demand for products.

Distribution (Place) Research

Studies aimed at selecting retail sites or warehouse locations in support of the distribution channel. They examine things like "just-in-time" ordering systems, or exclusive distribution.

Scientific Method

This is the way researchers go about using knowledge and evidence to reach objective conclusions about the real world.

Marketing research process:

1. Idea and theory development 2. Problem definition 3. Information gathering 4. Analyzing data 5. Communicating the findings and their implications.

Developing and implementing strategy involves these 4 stages:

1. Identifying and evaluating market opportunities. 2. Analyzing market segments and selecting target markets. 3. Planning and implementing a marketing mix that will provide value to customers and meet organizational objectives. 4. Analyzing firm performance.

There are 4 types of strategic management orientations that provide a common theme for decision making

1. Product Orientation 2. Production Orientation 3. Market Orientation 4. Stakeholder Orientation

Marketing Channel

A network of interdependent institutions that perform the logistics necessary for consumption to occur. Some channels are very short and involve only a producer and a consumer, and some are very long involving many transportation wholesale and retail firms.

Dynamic Pricing

An example would be cardinals tickets getting more expensive because they are in a playoff race. Or Miami Marlins tickets getting cheaper because they suck and never fill the stadium.

Supply Chain

Another term for a channel of distribution, which means the link between suppliers and customers.

Package Testing

Assesses size, color, shape, ease of use, and other attributes of the package.

Online Sentiment Analysis

using data indicating the total positive or negative mentions of a brand on the internet to assess and understand the strength of the brand.

Production Oriented

This means that the firm prioritizes efficiency and effectiveness of the production processes in making decisions. Here, input from engineers and accountants becomes important as the firm seeks to drive costs down. They are usually very large firms manufacturing products in very large quantities resulting in good economies of scale. Marketing research may take a backseat during this orientation.

Geo-demographics

This refers to information describing the demographics profile of customers in a particular geographic region. Once the company knows the geo-demographics of a market segment, it can effectively communicate with those customer by choosing media that reach that particular profile. For example: Architectural digest is a magazine that is read predominately by consumers with very high social status in the most exclusive ZIP codes in the U.S.

Product Testing

This reveals a product prototype's strengths and weaknesses or determines whether a finished product performs better than competing brands or according to expectations.

Brand-Name Evaulation

This studies and investigates whether a name is appropriate for a product.

Product Research

This takes many forms and includes studies designed to evaluate and develop new products and to learn how to adapt existing product lines. Product testing, concept testing, brand-name evaluation, and package testing are all used.

The determination of the need for marketing research centers on:

-Time contraints -The availablity of data -The nature of the decision -Benefits versus costs

Things we must focus on:

-What do we sell. (not only the benefits, but the emotional benefits) -How do customers view our company. (Does starbucks compete more directly with other coffee makers or maybe like a lounge) -What does our company/product mean. (Do people have a real knowledge of what we are selling) -What do consumers desire. (How can the company make the lives of the consumers better?)

Marketing Research

The application of the scientific method in searching for the truth about marketing phenomena. A lot of the tools we use are adapted from other scientists. A test market is a great example of a field experiment. This refers to a broader connotation and is all the aspects in general terms and can be referred to as basic research. Research applications include defining marketing opportunities and problems, generating and evaluating marketing ideas, monitoring performance, and generally understanding the marketing process.

Isolation VS Cross-Functionality of Marketing A Firm

The marketing concept stresses a cross-functional perspective to achieve consumer orientation and long-term profitability. The walls between the areas of the firm illustrate a lack of cross-functionality and, consequently, a lack of market orientation. The firm without barriers between the functions where marketing personnel work cross-functionally with other areas to achieve long-term profitability.

Prior Knowledge/Discovery or idea --> Research questions/hypothesis --> Hypothesis testing (observation) --> Conclusions

The scientific method steps

Product Orientation

They prioritize decision making in a way that emphasises technical superiority of their offerings. Thus, input from technicians and experts are very important in making critical decisions. The goal is to make the firm sees as the best products available.

Stakeholder Orientation

They recognize that multiple parties are affected by firm decisions. When a company makes a decision to change a product line based on marketing research, that decision affects customers, employees, and their families; the owners of the company and even society in general.

Relationship Marketing

This communicates the idea that a major goal of marketing is to build long-term relationships with the customers contributing to their success.

Basic Marketing Research

This does not address the needs of a specific organization and does not typically address a specific business decision. This expands marketing knowledge in general and not at solving a particular business problem. A great deal of this research addresses the ways in which retail atmosphere influences consumer's emotions and behavior. This helps us understand how much the physical place creates value for consumers.

Concept Testing

This exposes potential customers to a new product idea to judge the acceptance and feasibility of the concept.

Promotion Research

This investigates the effectiveness of advertising, coupons, sampling, discounts, public relations, and other sales promotions. A/B testing is often used in these campaigns.

Pricing Research

This involves trade off. The strategy involves finding the amount of monetary sacrifice that best represents the value customers perceive in a product after considering various market constraints.

Market Research

This is a very specific purpose for 1 particular company. It can be considered an "applied research"

Applied Marketing Research

This is conducted to address a specific marketing decision for a specific firm or organization. If Green Mountain Coffee is trying to decide what other beverages could be profitably sold through its pod system, this would be the approach to use. The research that identifies the best segments to approach with its new products is this.

Marketing Concept/orientation

This is the central idea in modern marketing thinking that focuses more on how the firm provides value to customers than on the physical product or production process. They spend the most time on marketing research and tend to outperform their rivals. They must: 1. Be customer oriented (all firm decisions are made with a conscious awareness of their effect on the consumer. 2. Emphasize long-run profitability rather than short term profits or sales volume 3. Adopt a cross-functional perspective, meaning that marketing is integrated across other business functions.

Promotion

This is the communication function of the firm responsible for informing and persuading buyers.