Transcript
MARKETING
Advertising � Objectives � Budget � Strategy � Effectives Public Relations � Role and impact � Tools Advertising Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor Advertising Developing and Advertising Programs Advertising Setting Advertising Objectives An advertising objective is a specific communication task to be accomplished with a specific target audience during a specific time Objectives are classified by primary purpose � Inform � Persuade � Remind Advertising Setting Advertising Objectives Informative advertising is used when introducing a new product category; the objective is to build primary demand Comparative advertising directly or indirectly compares the brand with one or more other brands Persuasive advertising is important with increased competition to build selective demand Reminder advertising is important with mature products to help maintain customer relationships and keep customers thinking about the product Table 15.1 Possible Advertising Objectives Advertising Setting the Advertising Budget Factors to consider when setting the budget � Product life-cycle stage � Market share � Competition and clutter � Advertising frequency � Product differentiation � Amount of profit Advertising Setting the Advertising Budget Product life-cycle stage � New products require larger budgets � Mature brands require lower budgets Market share � Building or taking market share requires larger budgets � Markets with heavy competition or high advertising clutter require larger budgets � Undifferentiated brands require larger budgets Advertising Setting the Advertising Budget Method of setting the budget � Affordable method � Percentage of sales method � Competitive parity method � Objectives and task method � Arbitrary method Advertising Developing Advertising Strategy Advertising strategy is the strategy by which the company accomplishes its advertising objectives and consists of: � Creating advertising messages � Selecting advertising media Advertising Creating the Advertising Message
Advertisements need to break through the clutter: � Gain attention � Communicate well Advertising Creating the Advertising Message Advertisements need to be better planned, more imaginative, more entertaining, and more rewarding to consumers Advertising Creating the Advertising Message Message strategy is the general message that will be communicated to consumers � Identifies consumer benefits Advertising Creating the Advertising Message Creative concept is the idea that will bring the message strategy to life and guide specific appeals to be used in an advertising campaign Characteristics of the appeals include: � Meaningful � Believable � Distinctive Advertising Creating the Advertising Message � Message execution The creative team must find the best approach, style, tone, words, and format for executing the message. Advertising Creating the Advertising Message Advertising Creating the Advertising Message Message execution also includes: � Tone � Positive or negative � Attention-getting words � Format � Illustration � Headline � Copy Advertising Selecting Advertising Media Major steps include: � Deciding on reach-frequency-impact � Selecting media vehicles � Deciding on media timing Advertising Selecting Advertising Media Reach is a measure of the percentage of people in the target market who are exposed to the ad campaign during a given period of time Frequency is a measure of how many times the average person in the target market is exposed to the message Impact is the qualitative value of a message exposure through a given medium Advertising Selecting Advertising Media Selecting media vehicles involves decisions presenting the media effectively and efficiently to the target customer and must consider the message�s: � Impact � Effectiveness � Cost Advertising Selecting Advertising Media When deciding on media timing, the planner must consider: � Seasonality � Pattern of the advertising � Continuity�scheduling within a given period Advertising Evaluating the Effectiveness and Return on Advertising Investment Communication effects indicate whether the ad and media are communicating the ad message well and should be tested before or after the ad runs Sales and profit effects compare past sales and profits with past expenditures or through experiments IS Advertising Wasteful
IS Advertising Wasteful Public Relations Public relations involves building good relations with the company�s various publics by obtaining favorable publicity, building up a good corporate image, and handling unfavorable rumors, stories, and events Public relations is used to promote product, people, ideas, and activities Public Relations Public relations department functions include: � Media relations � Product publicity � Counseling � Lobbying � Sponsor � Arranging special events Public Relations The Role and Impact of Public Relations � Lower cost than advertising � Stronger impact on public awareness than advertising Public Relations Major Public Relations Tools Principles of MARKETING Communicating Customer Value: Integrated Marketing Communications Strategy Topic Outline � The Promotion Mix � Integrated Marketing Communications � A View of the Communications Process � Steps in Developing Effective Marketing Communication � Setting the Total Promotion Budget and Mix The Promotion Mix The promotion mix is the specific blend of advertising, public relations, personal selling, and direct-marketing tools that the company uses to persuasively communicate customer value and build customer Major Promotion Tools Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor � Broadcast � Print � Internet � Outdoor Sales promotion is the short-term incentives to encourage the purchase or sale of a product or service � Discounts � Coupons � Displays � Demonstrations Public relations involves building good relations with the company�s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events � Press releases � Sponsorships � Special events � Web pages Personal selling is the personal presentation by the firm�s sales force for the purpose of making sales and building customer relationships � Sales presentations � Trade shows � Incentive programs Direct marketing involves making direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships�through the use of direct mail, telephone, direct-response television, e-mail, and the Internet to communicate directly with specific consumers � Catalog � Telemarketing Integrated Marketing Communications The New Marketing Communications Landscape
� Consumers are better informed � More communication � Less mass marketing � Changing communications technology The Need for Integrated Marketing Communications Integrated marketing communications is the integration by the company of its communication channels to deliver a clear, consistent, and compelling message about the organization and its brands A View of the Communication Process Steps in Developing Effective Marketing Communication Identifying the Target market Determining the Communication Objectives Marketers seek a purchase response that results from a consumer decision-making process that includes the stages of buyer readiness Designing a Message � AIDA Model � Get Attention � Hold Interest � Arouse Desire � Obtain Action Message content is an appeal or theme that will produce the desired response � Rational appeal � Emotional appeal � Moral appeal Message Format Designing a Message Rational appeal relates to the audience�s self-interest Emotional appeal is an attempt to stir up positive or negative emotions to motivate a purchase Moral appeal is directed at the audience�s sense of right and proper Choosing Media Personal communication involves two or more people communicating directly with each other � Face to face � Phone � Mail � E-mail � Internet chat Personal communication is effective because it allows personal addressing and feedback CHOOSING MEDIA Personal Communication Opinion leaders are people within a reference group who, because of their special skills, knowledge, personality, or other characteristics; exerts social influence on others Buzz marketing involves cultivating opinion leaders and getting them to spread information about a product or service to others in their communities Non-Personal Communication Channels Non-personal communication is media that carry messages without personal contact or feedback, including major media, atmospheres, and events that affect the buyer directly Major media include print, broadcast, display, and online media Events are staged occurrences that communicate messages to target audiences � Press conferences � Grand openings � Exhibits � Public tours Selecting the Message Source The message�s impact on the target audience is affected by how the audience views the communicator � Celebrities � Athletes � Entertainers � Professionals � Health care providers Collecting Feedback Involves the communicator understanding the effect on the target audience by measuring behavior resulting from the behavior Setting the Total Promotion Budget and Mix
Setting the Total Promotion Budget Affordable budget method sets the budget at an affordable level � Ignores the effects of promotion on sales Percentage-of-sales method sets the budget at a certain percentage of current or forecasted sales or unit sales price � Easy to use and helps management think about the relationship between promotion, selling price, and profit per unit Competitive-parity method sets the budget to match competitor outlays � Represents industry standards � Avoids promotion wars Objective-and-task method sets the budget based on what the firm wants to accomplish with promotion and includes: � Defining promotion objectives � Determining tasks to achieve the objectives � Estimating costs Shaping the Overall Promotion Mix The Nature of Each Promotion Tool Advertising reaches masses of geographically dispersed buyers at a low cost per exposure, and it enables the seller to repeat a message many times Personal selling is the most effective method at certain stages of the buying process, particularly in building buyers� preferences, convictions, actions, and developing customer relationships Sales promotion includes coupons, contests, cents-off deals, and premiums that attract consumer attention and offer strong incentives to purchase, and can be used to dramatize product offers and to boost sagging sales Public relations is a very believable form of promotion that includes news stories, features, sponsorships, and events Direct marketing is a non-public, immediate, customized, and interactive promotional tool that includes direct mail, catalogs, telemarketing, and online marketing Promotion Mix Strategies Integrating the Promotion Mix Checklist Socially Responsible Marketing Communication � Communicate openly and honestly with consumers and resellers � Avoid deceptive or false advertising � Avoid bait-and-switch advertising � Conform to all federal, state, and local regulations � Follow rules of �fair competition� � Do not offer bribes � Do not attempt to obtain competitors� trade secrets � Do not disparage competitors or their products CONSUMER BUYER BEHAVIOR Consumer Markets and Consumer Buyer Behavior Topic Outline � Model of Consumer Behavior � Characteristics Affecting Consumer Behavior � The Buyer Decision Process Model of Consumer Behavior Consumer buyer behavior refers to the buying behavior of final consumers�individuals and households who buy goods and services for personal consumption Characteristics Affecting Consumer Behavior Factors Influencing Consumer Behavior Culture is the learned values, perceptions, wants, and behavior from family and other important institutions Subcultures are groups of people within a culture with shared value systems based on common life experiences and situations � Bengalis � Gujaratis � Punjabis Social classes are society�s relatively permanent and ordered divisions whose members share similar values, interests, and behaviors � Measured by a combination of occupation, income, education, wealth, and other variables Social Factors � Family is the most important consumer-buying organization in society � The groups, family, clubs, and organizations that a person belongs to define his/her social role and status Personal Factors � Age and life-cycle stage � Profession � Economic situation � Personality and self-concept
Occupation affects the goods and services bought by consumers Economic situation includes trends in: Lifestyle is a person�s pattern of living as expressed in his or her psychographics � Measures a consumer�s AIOs (activities, interests, opinions) to capture information about a person�s pattern of acting and interacting in the environment Personality and self-concept � Personality refers to the unique psychological characteristics that lead to consistent and lasting responses to the consumer�s environment Psychological Factors Psychological Factors Motivation A motive is a need that is sufficiently pressing to direct the person to seek satisfaction Motivation research refers to qualitative research designed to probe consumers� hidden, subconscious motivations Maslow�s Hierarchy of Needs Perception is the process by which people select, organize, and interpret information to form a meaningful picture of the world from three perceptual processes � Selective attention � Selective distortion � Selective retention Learning is the change in an individual�s behavior arising from experience and occurs through interplay of: Psychological Factors Beliefs and Attitudes Belief is a descriptive thought that a person has about something based on: � Knowledge � Opinion � Faith Attitudes describe a person�s relatively consistent evaluations, feelings, and tendencies toward an object or idea Types of Buying Decision Behavior Types of Buying Decision Behavior Four Types of Buying Behavior The Buyer Decision Process/Buyer Decision Making Process Need Recognition Occurs when the buyer recognizes a problem or need triggered by: � Internal stimuli � External stimuli Information Search Sources of Information � Personal sources�family and friends � Commercial sources�advertising, Internet � Public sources�mass media, consumer organizations � Experiential sources�handling, examining, using the product Evaluation of Alternatives How the consumer processes information to arrive at brand choices Purchase Decision � The act by the consumer to buy the most preferred brand � The purchase decision can be affected by: � Attitudes of others � Unexpected situational factors Post-Purchase Decision � The satisfaction or dissatisfaction that the consumer feels about the purchase � Relationship between: � Consumer�s expectations � Product�s perceived performance � The larger the gap between expectation and performance, the greater the consumer�s dissatisfaction
Customer satisfaction is a key to building profitable relationships with consumers�to keeping and growing consumers and reaping their customer lifetime value The Buyer Decision Process for New Products Influence of Product Characteristics on Rate of Adoption ROLE OF MARKETING Role of Marketing of Financial services in the Economic Development Like Bangladesh � Increase in agricultural production � Development of foreign trade � Market development and expansion � Proper distribution � Increase in national income � Creating employment opportunity � Facilitating competition � Increase export � Increasing industrial production � Creation of new utility of product � Maintenance of economic stability � Service marketing � Development of standard of living Marketing Challenges � Technological advances � Rapid globalization � Deregulation � Privatization � Free market economy � Growing attention to social and environmental responsibilities � Greater use of marketing by nonprofit and public sector organizations � Customer empowerment Companywide Strategic Planning Setting Company Objectives and Goal Designing the Business Portfolio The business portfolio is the collection of businesses and products that make up the company Portfolio analysis is a major activity in strategic planning whereby management evaluates the products and businesses that make up the company Analyzing the Current Business Portfolio Strategic business unit (SBU) is a unit of the company that has a separate mission and objectives that can be planned separately from other company businesses � Company division � Product line within a division � Single product or bran Companywide Strategic Planning: Problems with Matrix Approaches � Difficulty in defining SBUs and measuring market share and growth � Time consuming � Expensive � Focus on current businesses, not future planning Developing Strategies for Growth and Downsizing Product/market expansion grid is a tool for identifying company growth opportunities through market penetration, market development, product development, or diversification Developing Strategies for Growth and Downsizing Product/Market Expansion Grid Strategies Developing Strategies for Growth and Downsizing Product/market expansion grid strategies Market penetration is a growth strategy increasing sales to current market segments without changing the product Market development is a growth strategy that identifies and develops new market segments for current products Product development is a growth strategy that offers new or modified products to existing market segments Diversification is a growth strategy through starting up or acquiring businesses outside the company�s current products and markets Downsizing is the reduction of the business portfolio by eliminating products or business units that are not profitable or that no longer fit the company�s overall strategy
Planning Marketing Partnering to Build Customer Relationships Value chain is a series of departments that carry out value-creating activities to design, produce, market, deliver, and support a firm�s products Value delivery network is made up of the company, suppliers, distributors, and ultimately customers who partner with each other to improve performance of the entire system Marketing Strategy and the Marketing Mix Customer-Driven Marketing Strategy Market segmentation is the division of a market into distinct groups of buyers who have distinct needs, characteristics, or behavior and who might require separate products or marketing mixes Market segment is a group of consumers who respond in a similar way to a given set of marketing efforts Customer-Centered Marketing Strategy Market targeting is the process of evaluating each market segment�s attractiveness and selecting one or more segments to enter Market positioning is the arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of the target consumer Developing an Integrated Marketing Mix Marketing mix is the set of controllable tactical marketing tools�product, price, place, and promotion�that the firm blends to produce the response it wants in the target market Managing the Marketing Effort Market Planning�Parts of a Marketing Plan Marketing Implementation Implementing is the process that turns marketing plans into marketing actions to accomplish strategic marketing objectives � Successful implementation depends on how well the company blends its people, organizational structure, decision and reward system, and company culture into a cohesive action plan that supports its strategies Marketing Department Organization Marketing Control � Controlling is the measurement and evaluation of results and the taking of corrective action as needed � Operating control � Strategic control Measuring and Managing Return on Marketing Investment Return on Marketing Investment (Marketing ROI) Return on marketing investment (Marketing ROI) is the net return from a marketing investment divided by the costs of the marketing investment. Marketing ROI provides a measurement of the profits generated by investments in marketing activities. MARKETING CHANNELS The Nature and Importance of Marketing Channels How Channel Members Add Value Intermediaries offer producers greater efficiency in making goods available to target markets. Through their contacts, experience, specialization, and scale of operations, intermediaries usually offer the firm more than it can achieve on its own. Number of Channel Levels Connected by types of flows: � Physical flow of products � Flow of ownership � Payment flow � Information flow � Promotion flow Channel Behavior and Organization Channel Behavior Marketing channel consists of firms that have partnered for their common good with each member playing a specialized role Channel conflict refers to disagreement over goals, roles, and rewards by channel members � Horizontal conflict � Vertical conflict Conventional Distributions Systems Conventional distribution systems consist of one or more independent producers, wholesalers, and retailers. Each seeks to maximize its own profits, and there is little control over the other members and no formal means for assigning roles and resolving conflict. Vertical Marketing Systems Vertical marketing systems (VMSs) provide channel leadership and consist of producers, wholesalers, and retailers acting as a unified system and consist of: � Corporate marketing systems
� Contractual marketing systems � Administered marketing systems Multichannel Distribution System Changing Channel Organization Disintermediation occurs when product or service producers cut out intermediaries and go directly to final buyers, or when radically new types of channel intermediaries displace traditional ones Channel Design Decisions Setting Channel Objectives � Targeted levels of customer service � What segments to serve � Best channels to use � Minimizing the cost of meeting customer service requirements Identifying Major Alternatives � Types of intermediaries � Number of marketing intermediaries � Responsibilities of channel members Marketing Logistics and Supply Chain Management Major Logistics Functions Warehousing Decisions � How many � What types � Location � Distribution centers Transportation affects the pricing of products, delivery performance, and condition of the goods when they arrive ANALYZING THE MARKETING ENVIRONMENT Topic Outline � The Company�s Microenvironment � The Company�s Microenvironment � Responding to the Marketing Environment The Marketing Environment The marketing environment includes the actors and forces outside marketing that affect marketing management�s ability to build and maintain successful relationships with customersMicroenvironment consists of the actors close to the company that affect its ability to serve its customers, the company, suppliers, marketing intermediaries, customer markets, competitors, and publics. The Company�s Microenvironment Actors in the Microenvironment
The Company � Top management � Finance � R&D � Purchasing � Operations � Accounting Suppliers � Provide the resources to produce goods and services � Treated as partners to provide customer value Marketing Intermediaries Help the company to promote, sell and distribute its products to final buyers Types of Marketing Intermediaries Competitors Firms must gain strategic advantage by positioning their offerings against competitors� offerings Publics Any group that has an actual or potential interest in or impact on an organization�s ability to achieve its objectives � Financial publics � Media publics
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Government publics Citizen-action publics Local publics General public Internal publics
Customers Customer is a person or organization that buys something from a shop/store or business Demographic Environment Demography is the study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics � Demographic environment is important because it involves people, and people make up markets � Demographic trends include age, family structure, geographic population shifts, educational characteristics, and population diversity � Growth in the rural population � A changing family system � The changing role of women � Increasing diversity Economic Environment Economic environment consists of factors that affect consumer purchasing power and spending patterns � Industrial economies are richer markets � survival economies consume most of their own agriculture and industrial output Natural Environment Natural environment involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities � Trends � Shortages of raw materials � Increased pollution � Increase government intervention Technological Environment � Most dramatic force in changing the marketplace � Creates new products and opportunities Political Environment Political environment consists of laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society Cultural environment consists of institutions and other forces that affect a society�s basic values, perceptions, and behaviors Responding to the Marketing Environment Views on Responding MARKETING RESEARCH AND INFORMATION SYSTEMS Chapter Objectives � Explain the importance of information � Understand marketing information systems � Outline the marketing research process � Discuss data collection techniques � Discuss special issues in market research Marketing Information Systems: System Functions � Assess information needs � Develops needed information � Information analysis � Distributes information Assessing Information Needs � Balances: � What would be liked? � What is needed? � What is feasible? � Irrelevant information � Information limitations � Costs of gathering, processing, storing, and delivering? Developing Information � Internal Data � Accounting � Manufacturing � Sales and marketing � Customer service � Research studies � Quick access, less expensive
Data warehouses and data mining Marketing Intelligence � Company personnel � Key customers � Suppliers and resellers � Government agencies � Competitive analysis � Trade associations � Internet search engines � Information companies � Market Research � Systematic design, collection and analysis � Reporting data and findings � Relevant to a specific marketing situation � Can be done internally or externally � Information Analysis � Information must be analyzed before use in decision making � Advanced statistical analysis � Analytical models Distributing Information � Right people at right time � Regular management decisions � Special situations � Fast availability Market Research Process: Defining Problem and Objectives � Exploratory research � Preliminary information � Problem definition and hypothesis suggestion � Descriptive research � Better describe marketing problems, situations, or markets � Causal research � Test hypothesis of cause and effect relationships Develop the Research Plan � Determine Specific Information Needs � Target customer characteristics � Patterns of product usage � Demand factors � Response of marketing channels � Customer reactions � Projected sales � Gather Secondary Information � Internal database sources � Company, public, and university libraries � Government and business publications � Commercial data services � On-line databases � Internet data sources � International data Advantages of Secondary Data � Less time to obtain � Lower cost than primary research � Alternate means of access to information � Benefit from resources of others Potential Problems With Secondary Data � Information may not exist � May not be: � Relevant � Accurate � Current � Impartial Market Research Process: Plan Primary Data Collection � Research Approaches � Observation � Survey
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� Experiment Observational Research � Observing relevant people, actions, situations � Mechanical observation, people meters, checkout scanners � Single-source data systems � Overcomes unwilling or unable problem � Some things not readily observed � Difficult to monitor long-term or infrequent behaviour � Survey Research � Questions about knowledge, attitudes preferences or buying behaviour � Most widely used source of primary data due to flexibility, information type collection, and sometimes quicker than other two methods � Very difficult to construct properly; Unwilling/ unable respondents; answer questions which they have no knowledge; pleasing answers � Experimental Research � Best suited for gathering causal information � Selecting matched groups of subjects � Given different experimental treatments � Variables controlled � Responses measured and recorded Contact Methods: Strengths and Weaknesses Mail Phone Personal Flexibility Poor Good Excellent Quantity of data collected Good Fair Excellent Control interviewer affects Excellent Fair Poor Control of sample Fair Excellent Fair Speed of data collection Poor Excellent Good Response rate Poor Good Good Cost Good Fair Poor Personal Interviewing � Individual � Talking with people in homes, offices, on the street, or in shopping malls ONE ON ONE � Computer interviewing or computer-assisted � Group � Focus group � Online � Electronic � Sampling Plans - three issues � What is the sampling unit? � What is the sample size? � What is the sampling procedure? Market Research Process: Types of Samples Probability Samples � Simple random sample � Known chance � Equal probability � Stratified random sample � Mutually exclusive groups � Random sample drawn Non-probability Samples � Convenience sample � Select easiest population � Judgement sample � Select for accurate response � Interviewer sets number Market Research Process: Research Instruments � Questionnaire � Question contribution � Question form � Closed-end � Open-end � Wording � Ordering � Mechanical �
� People meters � Checkout scanners � Galvanometer � Eye cameras Market Research Process: Present the Research Plan � Written Research Proposal � Management problems addressed by research � Research objectives � Information sought � Sources of secondary information � Methods of obtaining primary data � Benefits and costs Market Research Process: Implement the Research � Collect Data � Company research staff � Outside services � Most costly and error prone process � Analyze Data � Isolate important information and findings � Check accuracy and completeness � Tabulate results Market Research Process: Interpret and Report Findings � Focus on useful decision support � Clear and open � Discuss interpretation � Team approach � Ultimate decision with management Market Research Process: Other Considerations � Small Business and Non-Profit Organizations � Obtain good information through observation � Informal surveys with convenience samples � Informal focus groups � Conduct simple experiments � Secondary data is widely available � International Marketing Research � Growing due to multinationals � Partnerships and alliances � Difficulty in developing good samples � Difficulty in reaching respondents � Language translation � Consumer behaviour differences � Public Policy and Ethics � Increasing consumer resentment � Industry codes of ethics � Intrusions on consumer privacy � Misuse of research findings Marketing Information System: Developing Information � Market Research � Systematic design, collection and analysis � Reporting data and findings � Relevant to a specific marketing situation � Can be done internally or externally Market Research Process: Defining Problem and Objectives � Exploratory research � Preliminary information � Problem definition and hypothesis suggestion � Descriptive research � Better describe marketing problems, situations, or markets � Causal research � Test hypothesis of cause and effect relationships Market Research Process: Develop the Research Plan � Determine Specific Information Needs � Target customer characteristics � Patterns of product usage
� Demand factors � Response of marketing channels � Customer reactions � Projected sales � Gather Secondary Information � Internal database sources � Company, public, and university libraries � Government and business publications � Commercial data services � On-line databases � Internet data sources � International data Advantages of Secondary Data � Less time to obtain � Lower cost than primary research � Alternate means of access to information � Benefit from resources of others Potential Problems With Secondary Data � Information may not exist � May not be: � Relevant � Accurate � Current � Impartial Market Research Process: Plan Primary Data Collection � Research Approaches � Observation � Survey � Experiment � Observational Research � Observing relevant people, actions, situations � Mechanical observation, people meters, checkout scanners � Some things not readily observed � Survey Research � Questions about knowledge, attitudes preferences or buying behaviour � Most widely used source of primary data due to flexibility, information type collection, and sometimes quicker than other two methods � Very difficult to construct properly; Unwilling/ unable respondents; answer questions which they have no knowledge; pleasing answers � Experimental Research � Best suited for gathering causal information � Given different experimental treatments � Variables controlled � Responses measured and recorded Personal Interviewing � Individual � Talking with people in homes, offices, on the street, or in shopping malls ONE ON ONE � Computer interviewing � Group � Focus group � Online � Electronic � Sampling Plans - three issues � What is the sampling unit? � What is the sample size? � What is the sampling procedure? Probability Samples � Simple random sample � Equal probability � Mutually exclusive groups � Random sample drawn Non-probability Samples � Convenience sample � Select easiest population
Judgement sample � Select for accurate response Market Research Process: Research Instruments � Questionnaire � Question contribution � Question form � Closed-end � Open-end � Wording � Ordering � Mechanical � People meters � Checkout scanners � Eye cameras Market Research Process: Present the Research Plan � Written Research Proposal � Management problems addressed by research � Research objectives � Information sought � Sources of secondary information � Methods of obtaining primary data � Benefits and costs Market Research Process: Implement the Research � Collect Data � Company research staff � Outside services � Most costly and error process � Analyze Data � Isolate important information and findings � Check accuracy and completeness � Tabulate results Market Research Process: Interpret and Report Findings � Focus on useful decision support � Clear and open � Discuss interpretation � Team approach � Ultimate decision with management Topic Outline � What Is Marketing? � Understand the Marketplace and Customer Needs � Marketing Management Philosophy � Marketing Management is Demand Management � Function of Marketing � Elements of Marketing Marketing is a process by which companies create value for customers and build strong customer relationships to capture value from customers in return. [Philip Kotler & Armstrong] Marketing is a process of planning and executing the conception, pricing, promotion and distributing of ideas, goods and services to create exchanges that satisfy individual and organizational objectives. [American Marketing Association] � Customer needs, wants, and demands � Market offerings � Value and satisfaction � Exchanges and relationships � Markets Needs = Felt of deprivation Wants = Need+ Cultural and individual factors Demand = Want+ ability and willingness
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Customer Value and Satisfaction Expectations Value V=Benefit/Cost Satisfaction Product Perceived Performance and Customer Expectation PPP>CE= Highly Satisfied Customer PPP
