MKTG ch8 ch9

8-1Describe the characteristics of markets and market segments.

A market is composed of individuals or organizations with the ability and willingness to make purchases to fulfill their needs or wants. A market segment is a group of individuals or organizations with similar product needs as a result of one or more common characteristics.

Explain the importance of market segmentation.

Before the 1960s, few businesses targeted specific market segments. Today, segmentation is a crucial marketing strategy for nearly all successful organizations. Market segmentation enables marketers to tailor marketing mixes to meet the needs of particular population segments. Segmentation helps marketers identify consumer needs and preferences, areas of declining demand, and new marketing opportunities.

Describe the bases for segmenting business markets.

Business markets can be segmented on two general bases. First, businesses may segment markets based on company characteristics, such as customers' geographic location, type of company, company size, and product use. Second, companies may segment customers based on the buying processes those customers use.

Explain how CRM can be used as a targeting tool.

Companies that successfully implement CRM tend to customize the goods and services offered to their customers based on data generated through interactions between carefully defined groups of customers and the company. CRM relies on four things to be successful: personalization, time savings, loyalty, and technology. Although mass marketing will probably continue to be used, the advantages of CRM cannot be ignored.

market segmentation

From a marketing perspective, market segments can be described as somewhere between the two extremes. The process of dividing a market into meaningful, relatively similar, and identifiable segments, or groups, The purpose of market segmentation is to enable the marketer to tailor marketing mixes to meet the needs of one or more specific segments.

Discuss alternative strategies for selecting target markets.

Marketers select target markets using three different strategies: undifferentiated targeting, concentrated targeting, and multisegment targeting. An undifferentiated targeting strategy assumes that all members of a market have similar needs that can be met with a single marketing mix. A concentrated targeting strategy focuses all marketing efforts on a single market segment. Multisegment targeting is a strategy that uses two or more marketing mixes to target two or more market segments.

multisegment targeting strategy

a strategy that chooses two or more well-defined market segments and develops a distinct marketing mix for each

concentrated targeting strategy

a strategy used to select one segment of a market for targeting marketing efforts

sample

a subset of the population

mall intercept interview

a survey research method that involves interviewing people in the common areas of shopping malls

competitive intelligence (CI)

an intelligence system that helps managers assess their competition and vendors in order to become more efficient and effective competitors

niche

one segment of a market

market

people or organizations with needs or wants and the ability and willingness to buy

mystery shoppers

researchers posing as customers who gather observational data about a store

universe

the population from which a sample will be drawn

ethnographic research

the study of human behavior in its natural context; involves observation of behavior and physical setting

social media monitoring

the use of automated tools to monitor online buzz, chatter, and conversations

ch 9

9-1Define marketing research and explain its importance to marketing decision making 9-2Describe the steps involved in conducting a marketing research project 9-3Discuss the profound impact of the Internet on marketing research 9-4Describe the growing importance of mobile research 9-5Discuss the growing importance of scanner-based research 9-6Explain when marketing research should be conducted 9-7Explain the concept of competitive intelligence

Six steps are involved when segmenting markets

: (1) selecting a market or product category for study; (2) choosing a basis or bases for segmenting the market; (3) selecting segmentation descriptors; (4) profiling and evaluating segments; (5) selecting target markets; and (6) designing, implementing, and maintaining appropriate marketing mixes.

target market

A group of people or organizations for which an organization designs, implements, and maintains a marketing mix intended to meet the needs of that group, resulting in mutually satisfying exchanges

9-1Define marketing research and explain its importance to marketing decision making.

Marketing research is a process of collecting and analyzing data for the purpose of solving specific marketing problems. Practically speaking, marketers use marketing research to improve the decision-making process, trace problems, serve customers, gauge the value of goods and services, understand the marketplace, and measure customer service efforts. marketing research

9-4Describe the growing importance of mobile research.

Mobile survey traffic now accounts for approximately 30 percent of interview responses. Mobile surveys are designed to fit into the brief cracks of time that open up when a person waits for a plane, is early for an appointment, commutes to work on a train, or stands in a line. Marketers strive to engage respondents in the moment because mobile research provides immediate feedback when a consumer makes a decision to purchase, consumes a product, or experiences some form of promotion. Mobile research has also expanded into qualitative research. Using an app, respondents can participate in bulletin board and research community discussions.

primary data

information collected for the specific purpose at hand

computer-assisted self-interviewing

interviewing method in which a mall interviewer intercepts and directs willing respondents to nearby computers where each respondent reads questions off a computer screen and directly keys his or her answers into the computer

undifferentiated targeting strategy

a marketing approach that views the market as one big market with no individual segments and thus uses a single marketing mix

Perceptual Mapping

a means of displaying or graphing, in two or more dimensions, the location of products, brands, or groups of products in customers' minds

closed-ended question

an interview question that asks the respondent to make a selection from a limited list of responses

open-ended question

an interview question that encourages an answer phrased in the respondent's own words

computer-assisted personal interviewing

an interviewing method in which the interviewer reads questions from a computer screen and enters the respondent's data directly into the computer

nonprobability sample

any sample in which little or no attempt is made to get a representative cross section of the population

9-5Discuss the growing importance of scanner-based research.

A scanner-based research system enables marketers to monitor a market panel's exposure and reaction to such variables as advertising, coupons, store displays, packaging, and price. By analyzing these variables in relation to the panel's subsequent buying behavior, marketers gain useful insight into sales and marketing strategies.

9-6Explain when marketing research should be conducted.

Because acquiring marketing information can be time-consuming and costly, deciding to acquire additional decision-making information depends on managers' perceptions of its quality, price, and timing. Research, therefore, should be undertaken only when the expected value of the information is greater than the cost of obtaining it. A customer relationship management system is integral to analyzing, transforming, and leveraging customer data.

Describe the bases commonly used to segment consumer markets.

Five bases are commonly used for segmenting consumer markets. Geographic segmentation is based on region, size, density, and climate characteristics. Demographic segmentation is based on age, gender, income level, ethnicity, and family life cycle characteristics. Psychographic segmentation includes personality, motives, and lifestyle characteristics. Benefits sought is a type of segmentation that identifies customers according to the benefits they seek in a product. Finally, usage segmentation divides a market by the amount of product purchased or consumed.

9-7Explain the concept of competitive intelligence.

Intelligence is analyzed information, and it becomes decision-making intelligence when it has implications for the organization. By helping managers assess their competition and vendors, competitive intelligence (CI) leads to fewer surprises. CI is part of a sound marketing strategy, helps companies respond to competitive threats, and helps reduce unnecessary costs. competitive intelligence (CI)

Explain how and why firms implement positioning strategies and how product differentiation plays a role.

Positioning is used to influence consumer perceptions of a particular brand, product line, or organization in relation to competitors. The term position refers to the place that the offering occupies in consumers' minds. To establish a unique position, many firms use product differentiation, emphasizing the real or perceived differences between competing offerings. Products may be differentiated on the basis of attribute, price and quality, use or application, product user, product class, competitor, or emotion. Some firms, instead of using product differentiation, position their products as being similar to competing products or brands. Sometimes products or companies are repositioned in order to sustain growth in slow markets or to correct positioning mistakes.

Discuss the criteria for successful market segmentation.

Successful market segmentation depends on four basic criteria: (1) a market segment must be substantial and have enough potential customers to be viable; (2) a market segment must be identifiable and measurable; (3) members of a market segment must be accessible to marketing efforts; and (4) a market segment must respond to particular marketing efforts in a way that distinguishes it from other segments.

9-3Discuss the profound impact of the Internet on marketing research.

The Internet has simplified the secondary data search process. Internet survey research is surging in popularity. Internet surveys can be created rapidly, are reported in real time, are relatively inexpensive, and are easily personalized. Often, researchers use the Internet to contact respondents who are difficult to reach by other means. The Internet can also be used to conduct focus groups, to distribute research proposals and reports, and to facilitate collaboration between the client and the research supplier.

behavioral targeting (BT)

a form of observation marketing research that combines a consumer's online activity with psychographic and demographic profiles compiled in databases

9-2Describe the steps involved in conducting a marketing research project.

The marketing research process involves several basic steps. First, the researcher and the decision maker must agree on a problem statement or set of research objectives. Social media and big data may be helpful in this pursuit. The researcher then creates an overall research design to specify how primary data will be gathered and analyzed. Before collecting data, the researcher decides whether the group to be interviewed will be a probability or nonprobability sample. Field service firms are often hired to carry out data collection. Once data have been collected, the researcher analyzes them using statistical analysis. The researcher then prepares and presents oral and written reports, with conclusions and recommendations, to management. As a final step, the researcher determines whether the recommendations were implemented and what could have been done to make the project more successful.

management decision problem

a broad-based problem that uses marketing research in order for managers to take proper actions

scaled-response question

a closed-ended question designed to measure the intensity of a respondent's answer

neuromarketing

a field of marketing that studies the body's responses to marketing stimuli

field service firm

a firm that specializes in interviewing respondents on a subcontracted basis

convenience sample

a form of nonprobability sample using respondents who are convenient or readily accessible to the researcher—for example, employees, friends, or relatives

cross-tabulation

a method of analyzing data that lets the analyst look at the responses to one question in relation to the responses to one or more other questions

product differentiation

a positioning strategy that some firms use to distinguish their products from those of competitors

observation research

a research method that relies on four types of observation: people watching people, people watching an activity, machines watching people, and machines watching an activity

probability sample

a sample in which every element in the population has a known statistical likelihood of being selected

InfoScan

a scanner-based sales-tracking service for the consumer packaged-goods industry

cannibalization

a situation that occurs when sales of a new product cut into sales of a firm's existing products

central-location telephone (CLT) facility

a specially designed phone room used to conduct telephone interviewing

scanner-based research

a system for gathering information from a single group of respondents by continuously monitoring the advertising, promotion, and pricing they are exposed to and the things they buy

executive interview

a type of survey that involves interviewing businesspeople at their offices concerning industrial products or services

frame error

an error that occurs when a sample drawn from a population differs from the target population

sampling error

an error that occurs when a sample somehow does not represent the target population

random error

an error that occurs when the selected sample is an imperfect representation of the overall population

measurement error

an error that occurs when there is a difference between the information desired by the researcher and the information provided by the measurement process

repositioning

changing consumers' perceptions of a brand in relation to competing brands

secondary data

data previously collected for any purpose other than the one at hand

marketing research problem

determining what information is needed and how that information can be obtained efficiently and effectively

positioning

developing a specific marketing mix to influence potential customers' overall perception of a brand, product line, or organization in general

focus group

seven to ten people who participate in a group discussion led by a moderator

research design

specifies which research questions must be answered, how and when the data will be gathered, and how the data will be analyzed

market segment

subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs. At one extreme, we can define every person and every organization in the world as a market segment because each is unique. At the other extreme, we can define the entire consumer market as one large market segment and the business market as another large segment. All people have some similar characteristics and needs, as do all organizations.

big data

the exponential growth in the volume, variety, and velocity of information and the development of complex, new tools to analyze and create meaning from such data

marketing research

the process of planning, collecting, and analyzing data relevant to a marketing decision

marketing research objective

the specific information needed to solve a marketing research problem; the objective should be to provide insightful decision-making information