New or Just Improved? CD’S Airbags (cars) iPhone Nissan Titan Internet Scanning Equipment For stores Artificial Hearts Flat Screen TV Target Kennel Inn My Shirt

Marketing Research Finding solutions to problems through carefully designed studies involving consumers.

Steps in Marketing Research

Types of Research Studies  Surveys  Focus Groups  Observation  Experiment

Activity Issue: A top athletic shoe manufacturer finds out that is it ranked in the top 5 for people over 25, but that it is not ranked in the top 5 for people under 25. How can this manufacturer (using the 5 steps in Marketing Research) plan a way to improve its ranking among the younger people?

Marketing Mix – 4 P’s All parts are very important! One more so that others – product – If the products is not what you want – the other parts do not matter. Must carefully plan each product to best meet customer needs.

Parts of a Product Basic product – simplest form Product features – additions and improvements Options – choices in features Brand Name – unique identification Packaging – protection and security Guarantee/Warranty – build customer confidence

New Product Planning is… Costly – Several million dollars Time-Consuming – Several years Lots of people – Ideas, production, marketing, analyzing cost, forecasting sales

Steps in New Product Planning are… 1.Idea Development 2.Idea Screening 3.Strategy Development 4.Production and Financial Planning 5.Limited Production and Test Marketing 6.Full scale Production

Services Activities that are consumed at the same time they are produced.

Products Tangible – Things you can see – Things you can touch Services Intangible – No physical form Inseparable – Is used as it is being produced Perishable – Cannot be stored for later Heterogeneous – Differences is the quality of service