4.2 Marketing Planning Chapter 25 Part 2

Marketing Research Secondary Research A collection of data from second-hand sources. Often called “desk” research. Second-hand research should be conducted first. It is less expensive and reveal a lot of information. Primary Research A collection of first-hand data that is directly related to the researcher’s needs. Primary Research can be expensive yet specific to your needs.

Where do you get Secondary Data Government publications Local libraries and local government offices Trade organizations Market intelligence reports Newspaper reports and specialist publications Internal company records Internet

Advantages / Disadvantages of Secondary Data AdvantagesDisadvantages Typically inexpensive May be out dated Can assist with planning primary research Originally collected for another purpose so it may not entirely suitable for your purposes Can be obtained quickly Data collection methods and accuracy may be unknown Comparison of data from different sources May not be available

Primary Research Quantitative Research Research that leads to numerical results that can be analyzed and presented. The average person dines out 3X per week. Qualitative Research Research into the motivations behind buying behaviors and opinions. All fast food restaurants are cheap.

Where do you get Primary Data Qualitative Research includes: Focus Groups Small groups of people expressing their attitudes towards product, services, advertisements, or packaging.

Where do you get Primary Data Test Marketing Marketing a new product in a geographical region or city before a full-scale launch. Consumer Surveys Directly asking consumers about their opinions and preferences.

4 Issues with Surveys 1. Who to ask? You cannot ask everyone, so a SAMPLE is taken. 2. What to ask? Construct a unbiased questionnaire. 3. How to ask? Telephone, self-complete, interviews 4. How accurate is it? Assess the accuracy and validity research

Sampling Sample A group of people taking part in market research selected to represent the target market. Sampling Error Error in research caused by using a sample for data collection instead of the whole target population

Who to ASK? Random Sampling Each member of the target population has an equal chance to be selected. You should: Have a list of all the people in the target population Sequential numbers are assigned A list of random numbers are generated

Who to ASK? Stratified Sampling The target population contains many layers (men, women, children, teenagers, elderly) The sample should include representation from all the layers in the target population.

Who to ASK? Cluster Sampling If the target population is geographically diverse, clusters of samples may be taken from a few different locations instead of every location.

Who to ASK? Quota Sampling The population is segmented into mutually exclusive groups (example: women, men) If the survey was to be administered to 100 people, then 50 men and 50 women would be interviewed.

Who to ASK? Snowball Sampling The first respondent refers a friend, who refers a friend, who refers a friend. This type is likely to be biased because friends tend to have similar lifestyles and opinions.

Market Segmentation A sub-group of whole market in which consumers have similar characteristics. Hewlett-Packard sells computers for office and home use. They also make laptops for people who travel. Coca-Cola makes regular soda, diet soda, and athletic drinks.

Marketing Concepts Market: The group of potential customers who have similar needs/wants, sufficient buying power, and the willingness to give up a portion of that buying power in order to buy your product/service. The GROUP

Marketing Concepts Market Segmentation: Dividing the total market into smaller, well-defined groups with similar wants/ needs and similar key characteristics. Dividing the GROUP

Marketing Concepts Market Segment One sub-group of the many segments that belong to the whole group. Specific products and services can be targeted to a specific segment.

Marketing Concepts Target Market: The group or groups of potential customers identified as most likely to patronize the business and buy its products. Section of Group Focused on For Sales

Consumer Profile A quantified picture of the consumers of your products Proportions of age Income levels Location Gender Social class

How are markets segmented? Geographic Tastes may very by geographic location Demographic Most common way to segment Age, gender, family size, ethnic background, income, weight, job Psychographic Differences in lifestyle, hobbies, personalities, values Sports fans, athletes, fisherman, church-goers

Positioning Your Product Determining who should want to purchase your product…..placing your product in that market segment….using your marketing mix to correctly market to that target market.

Unique Selling Point (USP) The factor that makes your company’s product unique…designed to motivate customers to buy. Product: Dyson’ vacuum cleaner with cyclone technology Price: Walmart – always low prices Place: Dell Computers – first computer manufacturer to utilize Internet sales Promotion: FedEx….when it absolutely, positively has to be there overnight.