Marketing-Information Management Standard 3 Sutherland, Herriman High

Scenario One of the largest American sports shoe manufacturers wants to introduce its new, best-selling shoe in overseas markets. A famous basketball player in the United States wears the shoe, and a commercial shows him shooting hoops in locations around the world. The commercial is aired in three European countries and translated into each country’s official language. However, sales are disappointingly low. What went wrong?

Answer Even though the ad has a global focus, it does not have a global appeal, at least not in Europe. Careful market research would have shown that basketball is not as popular in Europe as it is in the United States. Few people purchased the shoe because few people related to the associated sport.

Marketing-Information Management Gathering, storing, and analyzing information, customers, trends, and competing products

Marketing Research Why Conduct Research??? Marketing Research – the systematic gathering, recording, and analysis of data about issues relating to marketing products and services -American Marketing Association Determine consumers’ attitudes and preferences Test product features Determine market size Learn about competitive products Determine buying cycles

Consumers accept only one out of every ten new products introduced into the market place; therefore, gaining information about consumers likes and dislikes is important. Stouffer’s spent almost 13 years doing marketing research and development before starting it’s Lean Cuisine line. They studied consumers’ interests in health and dieting. They conducted panels to find out what dieters liked and did not like about diet food. The product was a giant success, with more than $125 million in sales after the first year of national distribution.

The Marketing Research Process Define the Problem Obtain Data Analyze the Data Recommend Solution Apply the Results

Step 1. Define the Problem Business identifies a research question and the information that is necessary to answer it For Example: A resort wants to know if its staff, services and facilities are meeting the needs of the guests. It needs to get information so it can continually improve its services.

Step 2. Obtain Data Primary Data – Data obtained for the first time and used specifically for the particular problem or issue under study. Secondary Data – Data already collected for some purpose other than the current study.

Ways to collect Primary Data Surveys – Internet, telephone, face-to-face, focus groups, panels, etc. Observation – Secret shoppers, store cameras, watching customers reaction to products, etc. Experiment – Taste tests, test marketing, or product sampling. Hypothesis based.

Secondary Data Sources Internal Company Records – Sales charts, info on where customers live, top selling products, etc. Internet Sources – Society trends, data from a variety of research, etc. Government Reports – U.S. Census, Department of Commerce data, employment reports, etc. Professional & Trade Organizations – Wall Street Journal, National Restaurant Association, etc.

Which one is Primary or Secondary? A personal interview response to a cereal design A U.S. government demographic report Statistics from the SBA on the number of small business startups IBM’s five-year sales figures Marketing research by Proctor and Gamble for a new dishwashing liquid A jewelry store’s customer buying record Census data from the state of Utah An opinion research poll conducted by IBM for a new computer it plans to introduce A survey conducted in a supermarket by a representative of a new ice cream manufacturer

Step 4. Recommending Solutions to the Problem Step 3. Analyze the Data Data Analysis – the process of compiling, analyzing, and interpreting the results of data collection Step 4. Recommending Solutions to the Problem Conclusions Drawn from your research Recommendations need to be clear and well supported

Step 5. Applying the Results After research has been completed and changes have been made, a business needs to carefully monitor results. Are they successful? Do changes need to be made?

Marketing Strategy Marketing Strategy – A statement (implicit or explicit) of how a brand or product line will achieve its objectives. The strategy provides decisions and direction regarding variables such as the segmentation of the market, identification of the target market, positioning, marketing mix elements, and expenditures. A marketing strategy is usually an integral part of a business strategy that provides broad direction to all functions. -American Marketing Association Marketing Strategy – A marketing strategy identifies target markets and sets marketing mix choices that focus on those markets.

Marketing Strategy examples NIKE - Over the past three years Nike has decreased its spending in TV and Print advertising by 40% and is shifting resources into the digital realm. http://management.fortune.cnn.com/2012/02/13/nike-digital-marketing/ McDonalds – With the sluggish economy McDonald’s is stressing value to grow guest count and coax customers into buying regular-price items. http://nrn.com/article/mcdonalds-stress-value-marketing-strategy

Marketing Plan Marketing Plan – A formal, written document that directs a company’s activities for a specific period of time. -Marketing Essentials Marketing Plan Marketing Mix Market Strategy Business Goals