Principles of Marketing Modules 4-6
cross-sectional study
a study in which people of different ages are compared with one another
Differentiation
actually differentiating the market offering to create superior customer value
CRM differs from market share in that market share is the percentage of ________ in a category that are from a particular firm.
all sales
online marketing research
collecting primary data online through internet surveys, online focus groups, web-based experiments, or tracking consumers' online behavior
Internal databases
collections of consumer and market information obtained from data sources within the company network
Segmentation
dividing the total market into smaller sectors
survey research
gathering primary data by asking people questions about their knowledge, attitudes, preferences, and buying behavior
Observational research
gathering primary data by observing relevant people, actions, and situations
experimental research
gathering primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors, and checking for differences in group responses
What are some struggles of international market research?
lack of internet, poor postal service, inability to get to interviews, cultural differences, language barriers, attitude toward market research, illiteracy
Customer Relationship Management (CRM)
managing detailed information about individual customers and carefully managing customer touch points to maximize customer loyalty
marketing analytics
the analysis tools, technologies, and processes by which marketers dig out meaningful patterns in big data to gain customer insights and gauge marketing performance
To select the best target market for a company's purposes, marketers must have an in-depth understanding of
the capabilities of their company
Big Data
the huge and complex data sets generated by today's sophisticated information generation, collection, storage, and analysis technologies
A good marketing information system balances
the information users would like to have against what they really need and what is feasible to offer
competitive marketing intelligence
the systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketing environment
Marketing Research
the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization
positioning
trying to put in the customers mind what the company has to offer
behavioral targeting
using online consumer tracking data to target advertisements and marketing offers to specific consumers
online focus groups
gathering a small group of people online with a trained moderator to chat about a product, service, or organization and gain qualitative insights about consumer attitudes and behavior
Discuss the special issues some marketing researchers face, including public policy and ethics issues
"Some marketers face special marketing research situations, such as those conducting research in small business, not-for-profit, or international situations. Marketing research can be conducted effectively by small businesses and nonprofit organizations with limited budgets. International marketing researchers follow the same steps as domestic researchers but often face more and different problems. All organizations need to act responsibly concerning major public policy and ethical issues surrounding marketing research, including issues of intrusions on consumer privacy and misuse of research findings."
Explain the importance of information in gaining insights about the marketplace and customers
"The marketing process starts with a complete understanding of the marketplace and consumer needs and wants. Thus, the company needs to turn sound consumer information into meaningful customer insights by which it can produce superior value for its customers. The company also requires information on competitors, resellers, and other actors and forces in the marketplace. Increasingly, marketers are viewing information not only as an input for making better decisions but also as an important strategic asset and marketing tool."
Decide on a value proposition
1. Differentiation 2. Positioning
Select customers to serve
1. Segmentation 2. Targeting
Marketing Research Process
DDii: 1. Define the problem and research objectives 2. Develop the research plan for collecting information 3. Implement the research plan - collecting and analyzing the data 4. Interpret and reporting the findings
marketing involves looking at the marketplace, identifying segments that are homogeneous, evaluating each segment, and deciding which segments the company is best suited to target.
Differentiated
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
MODULE 5
MODULE 5
Casual Research
Marketing research to test hypotheses about cause-and-effect relationships
focus group interviewing
Personal interviewing that involves inviting small groups of people to gather for a few hours with a trained interviewer to talk about a product, service, or organization. The interviewer "focuses" the group discussion on important issues.
Process for marketing evaluation
Size segment, evaluate growth, analyze competition
market share
a company's product sales as a percentage of total sales for that industry
ethnographic research
a form of observational research that involves sending trained observers to watch and interact with consumers in their "natural environments"
An example of product positioning and differentiation would be to ________ and ________ the competition.
analyze, evaluate
positioning
arranging for a market offering to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers
geographic segmentation
dividing a market into different geographical units, such as nations, states, regions, counties, cities, or even neighborhoods
psychographic segmentation
dividing a market into different segments based on social class, lifestyle, or personality characteristics
Behavioral Segmentation
dividing a market into segments based on consumer knowledge, attitudes, uses of a product, or responses to a product
occasion segmentation
dividing the market into segments according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item
benefit segmentation
dividing the market into segments according to the different benefits that consumers seek from the product
Market targeting (targeting)
evaluating each market segment's attractiveness and selecting one or more segments to enter
Primary research, such as focus groups and interviews, is also known as
exploratory research
The three types of research
exploratory, descriptive, causal
customer insights
fresh marketing information-based understandings of customers and the marketplace that become the basis for creating customer value, engagement, and relationships
four segmentation variables
geographic, demographic, psychographic, behavioral
goal of competitive marketing intelligence
improve strategic decision making by understanding the consumer environment, assessing and tracking competitors' actions, and providing early warnings of opportunities and threats
primary data
information collected for the specific purpose at hand
secondary data
information that already exists somewhere, having been collected for another purpose
Developing needed information
internal databases, marketing intelligence, and marketing research
Good ________, including a familiarity with the marketplace, is as important to making good marketing decisions as using the company's internal data.
marketing intelligence
undifferentiated
marketing is a targeting strategy designed to appeal to as many people as possible.
descriptive research
marketing research to better describe marketing problems, situations, or markets, such as the market potential for a product or the demographics and attitudes of consumers
Exploratory Research
marketing research to gather preliminary information that will help define problems and suggest hypotheses
small businesses and not-for-profit organizations can obtain good marketing insights through
observation or informal surveys using small convenience samples.
Designing a Customer Value-Driven Marketing Strategy
p. 171
Marketing Information System
people and procedures dedicated to assessing information needs, developing the needed information, and helping decision makers to use the information to generate and validate actionable customer and market insights
longtitudinal study
research in which the same people are restudied and retested over a long period
targeting
selecting statements to enter
immersion groups
small groups of consumers who interact directly and informally with product designers without a focus group moderator present
differentiation
standing out by creating superior customer value
Marketing Environment features
target market, marketing channels, competitors, publics, macroenvironment forces
Explain how companies use and analyze marketing info
"Information gathered in internal databases and through marketing intelligence and marketing research usually requires more analysis. To analyze individual customer data, many companies have now acquired or developed special software and analysis techniques—called customer relationship management (CRM)—that integrate, analyze, and apply the mountains of individual customer data to gain a 360-degree view of customers and build stronger the customer relationships. They apply marketing analytics to dig out meaningful patterns in big data and gain customer insights and gauge marketing performance. Marketing information has no value until it is used to make better marketing decisions. Thus, the MIS must make the information available to managers and others who make marketing decisions or deal with customers. In some cases, this means providing regular reports and updates; in other cases, it means making nonroutine information available for special situations and on-the-spot decisions. Many firms use company intranets and extranets to facilitate this process. Thanks to modern technology, today's marketing managers can gain direct access to marketing information at any time and from virtually any location."
define the marketing information system and discuss its parts
The MIS first assesses information needs. The MIS primarily serves the company's marketing and other managers, but it may also provide information to external partners. Then the MIS develops information from internal databases, marketing intelligence activities, and marketing research. Internal databases provide information on the company's own operations and departments. Such data can be obtained quickly and cheaply but often need to be adapted for marketing decisions. Marketing intelligence activities supply everyday information about developments in the external marketing environment, including listening and responding to the vast and complex digital environment. Market research consists of collecting information relevant to a specific marketing problem faced by the company. Last, the marketing information system helps users analyze and use the information to develop customer insights, make marketing decisions, and manage customer relationships."
demographic segmentation
dividing the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation