MKTG TEST 2

Advantages of questionnaires

- Cheap, quick and easy - Little involvement of the researcher - Anonymous - easy to interperet

Importance of market segmentation for companies

- allow companies to allocate resources more efficiently - helps companies find niche segment to avoid head on competition

benefits of branding for manufacturers/sellers

- brand serves as a basis of differentiation from competitors - helps foster customer loyalty - reduce amount of promotion required - each brand name represents a valuble intangible asset

benefits of branding for consumers

- brand simplifies buyers decision process - brand can satisfy the need for status

Disadvantages of observation research

- cannot observe some things - time consuming, expensive - hard to interperet

Disadvantages of individual interviews

- more expensive - time consuming - difficult to interpret - small sample size due to high cost

Survey research

- often generates bot qualitative and quantitative data

Observation Research

- used for gathering exploratory research - gathering primary data by observing people, actions, and situations

Positioning

-Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers -ability to influence consumer perception regarding a brand or product relative to competitors

Advantages of focus group interviews

-Relatively fast -Easy to execute -Inexpensive -Numerous topics can be discussed (unlike surveys) -Multiple insights can be gained

Positioning map

-a graphical illustration of consumers' perceptions of competing products within an industry - plot brand personality and price

Advantages of ethnography

-deep insights - contextual understanding 3. flexibility 4. generated new theories

How can a company position its brand

1. Attributes (quality, features, style, design) 2. Benefits (comfort, convenience) 3. Beliefs and Values (freedom and adventure, pleasure)

Marketing Research Process

1. Defining the problem and research objectives 2. Developing the research plan for collecting information 3. Implementing the research plan - collecting and analyzing the data 4. Interpreting and reporting the findings

4 categories of segmentation variables (DGBP)

1. Demographic 2. Geographic 3. Psychographic 4. Behavioristic

Characteristics of a good USP

1. Important 2. Distinctive 3. communicable 4. pre-emptive 5. affordable 6. profitable

Factors when deciding product features

1. Profitability 2. feature fatigue

Disadvantages of ethnography

1. Time consuming 2. subjective/ bias 3. ethical concerns 4. Intrusive

Four main targeting strategies *UDCM*

1. Undifferentiated mass marketing 2. Differentiated segmented marketing 3. Concentrated niche marketing 4. Micro (local) marketing

4 major branding decisions

1. brand positioning 2. brand name selection 3. brand sponsorship 4. brand development

Three different categories of products

1. consumer products 2. industrial products 3. organizations, person, places, ideas

4 types of consumer products

1. convenience products 2. shopping products 3. specialty products 4. unsought products

3 non-probability sampling methods

1. convenience sampling 2. judgement sampling 3. quota sampling

3 types of research objectives

1. exploratory 2. descriptive 3. causal

4 brand development stratgeies

1. line extension 2. brand extension 3. multi brands 4. new brands

Four major sponsorship options

1. manufactured sponsorship brand 2. reseller sponsorship brand 3. licensed brand 4. co-sponsored brand

3 methods for collecting primary research data

1. observation 2. survey 3. Experiment

2 dimensions of product quality

1. performance / quality level 2. conformance/quality consistency

5 decisions for an individual product

1. product attributes 2. branding 3. packaging 4. labeling 5. product support services

How to choose a targeting strategy

1. product variability 2. market variability 3. social responsibility

Examples of survey research

1. questionnaires 2. interviews

3 probability sampling methods

1. simple random sampling 2. stratified random sampling 3. cluster sampling

How to do market segmentation Step 1

1. start with one variable

How to do market segmentation Step 2

2. outline all possible values of this variable

How to do market segmentation Step 3

3. use segmentation table to show how this variable divides the large market into multiple smaller and distinct segments

How to do market segmentation Step 4

4. check whether the first variable gives an effective segmentation

How to do market segmentation Step 5

5. If 1st variable does NOT give an effective segmentation pick new and repeat steps 1-4

Variable in market segmentation

A feature or factor that has 1+ possible values EX: Gender, age group

Demographic

Age, gender, income, education, occupation, family size, ethnicty

Quota Sampling

An interviewer or researcher selects a sample that reflects the characteristics of the whole population. Same number of people from each group

Social Responsibility

Are there underserved consumers

Descriptive research

Describe a problem, situation, or market in an accurate and structured way Findings ae conclusive - followed up with causal research

What is 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

Importance of market segmentation for consumers

Helps different consumers get what they need/want - helps companies understand needs/wants of consumers - helps companies customize their market offerings

Co-sponsored brand (MOST RISKY)

Manufacturer puts both its own brand name and someone else's brand name on product (co-branded credit cards)

Manufactured Sponsored Brand

Manufacturer puts their own brand name on its product (Nike, apple)

Causal Reserach

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

packaging

Materials used to wrap or protect goods.

Sampling

Selecting a segment of the whole population to represent the whole population

Disadvantages of questionnaires

Subjects may misinterpret/misunderstand questions Researcher doesn't know the accuracy or motivation of the subject Not good for measuring behaviors that are objective or need to be observed May have low response rates

Licenses Brand

The manufacturer pays another brand to put that brands name/logo on manufacturers product (disney themed brand)

Probability Sampling

The selection is based on the principal of randomization

Distinct in market segmentation

The variable used for market segmentation has more than one possible value and these variables do NOT overlap EX: Athletic footwear for different groups

Differentiation

actually differentiating the market offering to create superior customer value

Advantages of differentiated segmented marketing

allows company to capture various types of customers, and can even charge a higher price

What is a product

anything that can be offered to a market for attention, acquisition, or consumption and can satisfy a need or want

Product style

appearance of a product

labeling

attaching information on a products package, providing product details, usage instructions, supporting brands recognition

Advantages of observation research

can generate new and unexpected insights

product variability

can the market offering be easily varied for different consumers

Advantages of undifferentiated mass marketing

cheap, easy

Concentrated niche marketing

company focuses on serving one or few niche segments

Undifferentiated mass marketing

company ignores individual differences and goes after the whole market with the same market offering

Differentiated segmented marketing

company serves different segments with different market offerings

Disadvantages of differentiated segmented marketing

costs extra money to develop additional products and to promote them

qualitative Data

descriptive data

brand extension

develop products of a new category using the existing brand name

Line extension

develop products of new styles / appearances, ingredients or flavors within the existing product category using the existing brand name

Disadvantages of undifferentiated mass marketing

difficult to satisfy everyone need/want with the same market offering

Cluster sampling

divide the total population into smaller groups than use simple random sampling of select number of groups

Stratified random sampling

divide the total population into smaller groups than use simple random sampling to select a number of members (in proportion to group size) from each group

market variability

do different consumers want different versions of the market offering

Simple random sampling

each member of the population has an equal chance of being included in the sample

Disadvantages of micro (local) marketing

expensive, takes time, difficult to build/maintain a clear consistent identity

Exploratory Research

gather preliminary information that will help define the problem and suggest hypotheses. Results are tentative. followed up with descriptive research

Advantages of concentrated niche marketing

generally less competition, highly profitable

Product Design

how a product is conceived, planned, and produced

Primary Data

information collected for the specific purpose at hand

Secondary Data

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

Multibrands

introducing additional brands using different brand names in the same category

shopping products

items for which the consumer compares several alternatives on criteria such as price, quality, or style promoted by both the producers and resellers

specialty products

items that the consumer makes a special effort to search out and buy carefully targeted promotion,, exclusive distribution

Convenience products

items that the consumer purchases frequently, conveniently, and with a minimum of shopping effort frequent purchases, widespread distribution

Psychographic

lifestyle, self-concept, self-values

Reseller sponsored brand

manufacturer lets resellers put their brand names on its products (walmart greta value)

New Brands

new brand name, new product category

Quantitative data

numerical data

Marketing research

process of collecting vital information about a company's target audience, market, and competition

Unsought products

products that potential customers don't yet want or know they can buy, aggressive advertising, personal selling

Advantages of individual Interviews

provide the opportunity for unexpected insights in some of the same ways as observational research

Behavioral

purchase behavior, usage rate, benefits sought, user status

Geographic

region. climate, population density, rural/urban

Advantages of micro (local) marketing

satisfy each individual consumer or each local consumer segment

convenience sampling

select population members that are easy to obtain information from

Disadvantages of concentrated niche marketing

smaller pie, higher risk

Disadvantages of focus group interviews

social conformity

Micro (local) marketing

tailors the market offering for each individual consumer or each local consumer segment

brand equity

the effect of knowing a brand name of a product on consumers evaluation of the product

Judgement Sampling

the researcher uses his/her own judgement in choosing the subjects

Ethnography

the study of human cultures through firsthand observation