Market Research Ian, Katon and Tylin

Develop Effective Product and Services Chapter 10 Section 2

Create and Improve Products 1. Most new products that you see in advertisements are not even new at all. a. Most of the products seen in ads are just changed b. Most new products are not even introduced to the public 2. Marketing Research – Finding solutions to problems and through carefully designed studies involving consumers. 3. Marketing Research Steps 1. Define the marketing problem 2. Study the situation 3. Develop a data collection procedure 4. Gather and analyze information 5. Propose a solution

Types of Research a. Secondary research – Analyzing existing information gathered for another purpose but used to solve a current problem. Primary research – Studies carried out to gather new information specifically directed to current problem. i. Surveys – Gather information from people with planned set of questions ii. Focus Groups – Small number of consumers take part in a group discussion, while a group leader identifies areas of agreement and disagreement to develop ideas. iii. Observations – Collect information by recording the actions of consumers instead of asking them iv. Experiment – Two carefully controlled alternatives to subjects in order to determine which is preferred or has better results. II. Product Planning

Parts of a Product a. Product – Everything a business offers to satisfy a customer’s needs. b. Basic Product – The simplest form of a product i. Not unique, often available from most companies c. Product Features – Additions to the basic product d. Options – When customers are given different choices of features e. Brand Name – Provides unique identification for a company’s products use easier g. Guarantee, or Warranty – If product does not meet customer expectations or breaks, the company will repair, replace or refund the item.

2. Product Planning Procedures a. New product planning is costly and time consuming b. Companies set procedures for how to produce and release a product

Idea Development Creative process, ideas come from scientists, salespeople, surveys and other employees. Most ideas are improvements to existing products

Idea Screening Companies encourage the development of a large number of new product ideas. Ideas are then evaluated to see if idea will be successful. And liability questions are asked.

Strategy Development When an idea is workable, a target market is located, and studied. There must be a need for the product. Prices are compared

Production and Financial Planning Company identifies what will be needed to make the product. Facilities, equipment, and people all go under consideration. Develops financial plan.

Limited Production and Test Marketing Company produced a limited quantity of the product, and tests it in small part of the market. Observes feedback from consumer.

Full Scale Production Once all preceding steps have been accomplished, the product moves to full scale production. Company continues to research production and sales, and insure that financial standards are being met. Competitors are also watched.

Services 1. What is a Service? a. Services are activities that are consumed at the same time they are produced. b. Services are intangible – No physical form 2. Service marketing strategy is similar to product strategy, but with two steps: a. Identify target markets b. Develop a marketing mix that appeals to the market Services are… Inseparable - consumed at same time they are produced Person or technology producing the service must be available when and