MBA 706 - Module 4 (Chp 7 & Chp 8)

Describe the five-step marketing research approach that leads to marketing actions.

1. Define the problem- set the research objectives, identify possible marketing actions 2. Develop the research plan- specify constraints, identify data needed for marketing actions, determine how to collect data 3.Collect relevant info-obtain secondary data, obtain primary data 4. Develop findings- Analyze the data, present the findings 5. Take marketing actions- make action recommendations, implement action recommendations, evaluate results

Market Segmentation

Involves aggregating prospective buyers into groups, or segments, that (1) have common needs and (2) will respond similarly to a marketing action.

Identify the reason for conducting marketing research.

Reduce risk; used to obtain information to determine consumer demand

Explain how marketing uses secondary and primary datasd

Secondary data- facts and figures already recorded prior to the project(internal & External) Primary data- facts and figures newly collected for the project. (Observational, questionnaire, other sources)

80/20 rule

a concept that suggests 80 percent of a firm's sales are obtained from 20 percent of its customers

Market-Product grid

a framework to relate the market segments of potential buyers to products offered or potential marketing actions

product differentiation

a marketing strategy that involves a firm using different marketing mix actions to help consumers perceive the product as being different and better than competing products

Predictive Modeling

based on statistical models that use data mining and probability analysis to foretell outcomes

sales forecast

consists of the total sales of a product that a firm expects to sell during a specified time period under specified environmental conditions and its own marketing efforts.

measures of success

criteria or standards used in evaluating proposed solutions to the problem

Preceptual map

displays, in two or more dimensions, the position of products or brands in the consumer's mind to enable a manager to see how they perceive competing products or brands, as well as the firm's own product or brand

questionnaire data

facts and figures obtained by asking people about their attitudes, awareness, intentions, and behaviors

observational data

facts and figures obtained by watching how people actually behave, using mechanical, personal, or neuromarketing data collection methods

primary data

facts and figures that are newly collected for the project

secondary data

facts and figures that have already been recorded prior to the project at hand

information technology

includes all of the computing resources that collect, store, and analyze data

product repositioning

involves changing the place a product occupies in a consumer's mind relative to competitive products.

Customer Lifetime Value (CLV)

represents the financial worth of a customer to a company over the course of their relationship

Constraints

restrictions placed on potential solutions to a problem

Data

the facts and figures related to the project that are divided into two main parts: secondary data and primary data

product positioning

the place a product occupies in consumers' minds based on important attributes relative to competitive products

data mining

the practice of examining large databases to find statistical relationships between consumer purchasing patterns and marketing actions

Marketing Research

the process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions

usage rate

the quantity consumed or patronage (store visits) during a specific period. Frequency marketing focuses on usage rates.