MKT 291 - Exam #1
market variable: channels
- B2B (business to business) - physical/digital - peer to peer - VAR, Franchise
frequent survey topics
- brand awareness - brand image - customer satisfaction - Net Promoter Score (NPS)
market variable: category
- category - subcategory - product line - form
Step 1: Gaining Consumer Insight
- create a research question - do research (exploratory, descriptive, causal)
types of primary data
- customer behavior - awareness - intention - motivation - demographics/socioeconomics - attitudes - psychographic/lifestyle
market variable: competitors
- direct - indirect - customers - suppliers
sources of External Environment information
- employee/customer feedback - consumer insight research - industry experts - census data - industry and gov. reports - social media - trade associations - magazines, newspapers, journals - annual publications - various online research and trend watch alerts
market variables
- geography - category - channels - competitors
market variable: geography
- global - national - regional - local
actors in the immediate environment
- intermediaries - employees - shareholders - customers - competitors - suppliers
marketing research process steps
1. gaining consumer insight 2. focus on exploratory research 3. focus on conducting surveys
Effective Segmentation
1. identify ways to segment the market 2. use the target market process to create a market segment, evaluate it, and develop a target market strategy 3. develop a buyer persona to better understand the targeted market segment
Brand Awareness survey
1. list the names of the first 3 brands that come to mind for x? ________ 2. Which of the following brands have you seen in retail stores? yes/no
External Environment Scanning process
1. observe what's happening in PESTLE 2. identify trends and patterns relevant to company/industry 3. interpret why this is happening 4. predict what will happen because of this trend 5. analyze how your strengths and weaknesses relate to these future changes 6. strategize how you can take advantage of opportunities and prepare for threats
7 Ps of Marketing
1. product 2. price 3. place 4. promotion 5. process 6. people 7. physical evidence ** customer is at the center pieces are independent but should all align and work together
external environment forces
PESTLE 1. Political 2. Economic 3. Social 4. Technological 5. Legal E. Environmental
exchange
a basic business function that takes place when a person or company satisfies a need by exchanging money for products or services (ex: a sale)
market segment
a group of consumers with shared characteristics and similar product needs who respond similarly to marketing efforts
marketing concept
a management orientation that focuses on identifying and satisfying consumer needs to ensure the organization's long-term profitability starting point: customer segment focus: customer needs outcome: long-term profits through customer satisfaction (ads, promos, product development, customer service)
target markets: Identifiable
a marketer can clearly identify the segments and can describe the traits/characteristics of the segments
literature search
a search for statistics and content in various journal articles, blogs, books, newspapers, or magazines for data/insight into the research subject
focus groups
a small group of individuals from whom a researcher wishes to gain insights through a structured interview process that is moderated by a facilitator
marketing
a specialized form of communication between businesses and consumers (a process that involves exchange)
Net Promoter Score (NPS)
a specific metric used to measure the experience customers have with brands "How likely is it that you would recommend [brand] to a friend or colleague?" - 9-10: promoters - 7-8: passives - 0-6: detractors NPS = (Promoter %/ Total) - (Detractor %/ Total)
employees
affect everything from product sales to customer service; sometimes responsible for the product itself
dimension
allows for the market to be measured for growth and share - market metrics: units and revenue - shopping metrics: shopper visits, avg. basket size - consumer metrics: passengers, guest nights
usage rate
based on actual or potential consumption of a product/service - light/occasional usage: target to increase sales - medium/heavy usage: target most loyal/frequent customers with current/custom product offerings - no usage: targeting those who haven't tried the product
Product
can be a good/service/idea to satisfy a customer's needs ex: product quality, packaging, color, size
competitors
can validate your product ideas, help educate a target market, and drive product innovation; powerful comps can even set the price of a certain good/service
meaningful characteristics
characteristics that are relevant in determining which consumers have similar/dissimilar product needs
Political forces
cover the stability and general state of politics in the region ex: political instability in general, trade agreements, tariff policy, tensions between domestic political groups
NPS: Promoters (9-10)
customers who are loyal enthusiasts, tend to buy more, stay in relationships with brands longer, refer friends, and provide feedback and ideas
NPS: Passives (7-8)
customers who are satisfied but not enthusiastic about the brand, vulnerable to competitive offerings
NPS: Detractors (0-6)
customers who are unhappy and can hurt your brand through negative word-of-mouth
primary data: Demographics/Socioeconomics
data that measure characteristics of consumers (income, gender, education level, marital status, social status, etc.); often reveals certain segments of consumers with strong affinity or loyalty to a brand
primary data: Attitudes
data that measure consumers' feelings, convictions, or beliefs about a brand; attitudes lead to actions ex: how do you feel about our franchise?
primary data: Intention
data that measure future, anticipated behaviors; helps marketers predict demand or future consumption ex: how often do you expect to visit our franchise in the next month
primary data: Psychographic/Lifestyle
data that measure personality traits, interests, opinions, or lifestyle characteristics of consumers; create a persona of the ideal consumer ex: do you consider yourself more of an extrovert or an introvert?
primary data: Awareness
data that measures the knowledge consumers have of brands, products, and solutions ex: how familiar are you with our fast-food franchise?
primary data: Motivation
data that measures the motives of consumers; gathered for understanding what conditions drive behavior ex: what causes you to want to visit our franchise?
suppliers
directly influence a company; depends on if their prices rise and how the quality is
market segmentation
dividing the larger market into smaller segments based on meaningfully shared characteristics and shared needs - allows marketers to market efficiently, increase ROI, & bring more value and satisfaction to customers
geographic location
dividing up the market according to consumer location - country, city/rural, zip code, pop. density, regions within the country, desert/tundra
People
encompasses the human actors who provide good/service/ideas to the customer ex: customer service, sales people, customer-facing employees
Brand Image survey
if you wanted to tell your friends about this brand, how would you describe it to them? ________
Marketing Management role
implements the marketing strategy defined by CMO in the day-to-day activities of the marketing team
Economic forces
include all factors that influence the wealth or buying power of consumers, including inflation, income, employment, interest rates, and productivity ex: GDP per country, disposable income per capita, prime interest rate, employment rate, exchange rates
Technological forces
include anything that affects innovation, including tech. advances, hardware and software capabilities, and the state of learning in general ex: computer processing speed, wireless capabilities, automation capabilities, cell phone functionality
Social forces
include demographic characteristics and the culture of the population, including cultural values and personal values; "the customer base" ex: age distribution of population, pop. growth, marital status, religion, work ethic, environmental sustainability, job mobility preferences
Legal forces
include the regulatory systems that affect business at the local, regional, national, and international levels ex: health/safety laws, antitrust laws against monopolies, intellectual property, trademark, copyright law
marketing environment
includes all of the forces that affect a company's ability to do business
Environmental forces
includes elements of climate, weather, or natural resources that affect production, purchasing, or other economic activity ex: raw materials available, weather patterns, terrain of area, natural disasters, climate (change)
immediate environment (microenvironment)
includes players (companies, people, groups, organizations) that can directly influence a company's ability to market successfully
Physical Evidence
includes the tangible elements in the place that the good/service is sold; everything someone can see, hear, smell while purchasing the product ex: signage, uniforms, decor, music
external environment (macroenvironment)
includes the uncontrollable forces that affect the company and all actors in the immediate environment that establish the surrounding context in which business is conducted
projective methods
indirect methods (usually some task) that cause study participants to reveal their feelings, thoughts, and opinions, or to express behaviors
case analyses
intensive study of representative examples (cases) of the subject under study
SWOT analysis: Strength (internal)
internal attributes of a company/product that give it a competitive advantage or superior position - can include brand equity, product features, employee training and skill set, intellectual property, industry knowledge, industry relationships, etc.
SWOT analysis: Weakness (internal)
internal deficiencies in the company/product that are potential problem areas - can include product attributes that consumers view as subpar, cash flow or funding problems, staffing or training shortcomings, etc.
depth interview
interviews with people who are knowledgeable about the general subject under investigation
shareholders
investors in a company and have a stake and influence in the decisions that are made
process
involves people, a sequence of steps or activity, inputs, data, and outcomes
psychographic segmentation
involves segmenting the market by consumer activities, values, interests, and opinions - values, beliefs, attitudes, feelings, personality, lifestyle, activities and interests, religious and political beliefs and affiliations
CMO or VP of Marketing role
leads the team and is responsible for developing the marketing strategy, ensuring it's effective and aligns with corporate objectives
customers
main focus of the company; influence purchases of other customers
primary data
new-to-the-world data collected specifically for the research project at hand - obtained by depth interviews, focus groups, case analyses, and projective methods
Marketing Research role
tasked with conducting research about customers, competitors, and the market
selling concept
tendency to focus on selling current products and services to consumers starting point: company focus: existing products outcome: short-term profits through sales volume
Price
the amount that is being charged for the good/service/idea; can be adjusted to appeal to consumer and provide value ex: discounts, bundle pricing
target marketing
the process of selecting one or more segments for focused marketing efforts desirable target markets are: Identifiable, Sizable, Stable, Accessible, and Congruent
marketing management
the process of setting marketing goals, the planning and execution of activities to meet these goals, and measuring progress toward their achievement
Marketing Operations role
the project and technology manager of the marketing team
marketing mix
the set of major categories of ingredients (building blocks of marketing) that a marketer can adjust to affect the overall marketing strategy of a product
usage situation
the way in which a person might purchase/use the product or the occasion for which a person might purchase the product ex: holidays, birthdays, time/work schedule, product usage
descriptive research
focuses on determining how often something occurs or how 2 things are related to each other - ideal for quantifying feelings, attitudes, or opinions of s specific pop. through a set of structured questions and response options
exploratory research
focuses on gaining ideas or insight that funnel broad research questions into more specific ones - qualitative data is usually collected by asking open-ended questions - yields unstructured data in the form of opinions, reasons, thoughts, or motivations - primary & 2ndary data
usage behavior
pop. is divided based on how much they use and how they use a product a. usage rate b. usage situation
secondary data
pre-existing data originally gathered for another purpose but are helpful for other research projects - no delay or cost
research question
primary goal of the marketing research effort ex: how satisfied are customers? how aware are customers of new products?
causal research
quantitative and focuses on discovering the cause-and-effect relationship between variables (often experiments)
Customer Satisfaction survey
regular ongoing surveys will reveal if satisfaction is rising/failing; research may even enable identification of unhappy customers, giving the brand an opportunity to address specific satisfaction issues
direction
reports on the trend that the market is taking around a specific or series of dimensions - prior periods: - P1M, P3M, P6M - prior year
Promotion
represents the means of communicating with the customer; any communication from a marketer to inform and persuade the customer of the product value ex: TV ads, billboards, sponsorships
Content Marketing role
responsible for creating and publishing a steady stream of new and compelling content developed specifically to capture the attention of customers and prospects
Digital Marketing role
responsible for the online marketing efforts of the team, managing the website, performing Search Engine Optimization (SEO), developing and managing pay-per-click advertising (PPS) campaigns, and managing corporate social media presence
SWOT analysis: Threats (external)
situations in the environment that could have a negative impact on the company/product
SWOT analysis: Opportunities (external)
situations that occur in the environment that a firm can take advantage of
demographic segmentation
using statistics to divide the market - age, gender, ethnicity, income, marital status, occupation, # of children
differentiation
what makes a product unique and makes it stand out to customers
primary data: Customer Behavior
gaining deep insights into why customers do things they do can help position a brand to become a leader in its chosen markets
Demand Generation role
has the responsibility of generating new business prospects, usually called "leads" in marketing terms
intermediaries
help get the product to customers and can help fulfill functions ex: wholesalers, retailers, agents, brokers, dealers
Marketing Analytics role
helps the company take advantage of all the data produced and stored about campaigns and customers; "data scientist", has technical, analytical, and communication skills
Step 1: Ways to Segment the Market
1. demographic segmentation 2. geographic location 3. psychographic segmentation 4. usage behavior
designing a survey
1. reexamine the research question 2. specify what info the survey must collect 3. identify who should take the survey 4. develop the questions to ask 5. create "dummy" tables to show how you will use the data 6. devise a way to recruit people to take the survey 7. build and test the survey 8. field the survey; publish it or communicate it to the targeted pop.
data mining
the process of searching or "mining" for insights from the patterns, trends, and relationships within sets of data
Process
the flow of activities involved in providing good/service/ideas to the customer; a system of actions must occur to get the good from starting point to end consumer ex: service blueprint, standard set for points in process, supply chain, content creation, layout
Place
the means of getting the good/service/idea to the customer; how the customer can find the product and how it's distributed ex: store shelf, company website, Amazon
marketing research
the process of collecting and analyzing information from and about consumers to influence marketing strategy and decisions
environmental scanning
the process of gathering and interpreting data in the immediate and external environments to identify possible opportunities and threats and to develop strategic plans from them