MAR3023.docx - MAR3023 Chapter 5 What is marketing research why is it important Firm of the day Flowers food a 3.75 billion company that operates 46

MAR3023.docx - MAR3023 Chapter 5 What is marketing research...

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MAR3023 Chapter 5 What is marketing research & why is it important? Firm of the day Flowers food: a 3.75 billion company that operates 46 bakeries. Owns all of the bread brands at Publix. (almost all of them) Located: 35 miles from tally (in Thomasville) Marketing research: process of designing, gathering, analyzing, and reporting information that may be used to solve a marketing problem Used to drive profits. ( engine behind marketing- information companies use to create the products people want to buy) Customer satisfaction survey - assessments. (most common way) Number one way we gather marketing research information. Minivan - focus group with moms. Moms designed the vehicle Waiting time: increased wait times can signal higher quality: people are looking for a longer waiting time because it is a sign of quality, social signal Unknown waits seem longer than known waits Explained waits seem shorter Customers choose slow short lines over fast long lines, even if the wait time is the same Where did it come from? 1980: ( ask customers what they want and what they need) TQM Movement (deming & juran) Customer orientation: Research to fine customer reaction to product Research to compare product to competitors Research to find problems with product Now: A: BIG data (drives profits) Customer orientation: Predict customer behavior Profile entire customer journey Personalize and customize product experiences Why is it important:
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Gives mangers answers to important questions If you decrease customer defection by 5% you can increase profits by 25-100% One unhappy customer tells 9-12 others; one happy customer tells 1-5 Its five times as costly to attract new customers than it is to retain old ones The probability of selling to an existing customer is 14 times higher than a new one Gives new ideas It’s the foundation for marketing strategy decisions Cluster analysis: statistical analysis technique that identifies customer segments The researcher measures things like price sensitivity and importance of quality and on time delivery Cluster analysis identifies groups (segments) of customers that have similar characteristics Six distinct consumer segments: FOOD ELITES: (16%) an informed consumer, concerned with every step along the path from field to fork FRIENDS OF THE FARM: (17%) generally older (45+), midwestern white male and a staunch supporter of American faming BAGE WEARERS: (14%) a well-educated, high income consumer group who are outspoken and informed about global issues RIGHT CHOICERS: (20%) this middle aged, middle income consumer uses simple rules as a guide to more healthful eating PASSIVE EATERS: (15%) a young (under 35) lower income consumer who just doesn’t have the interest to take the time to create a meal KID FLUENCED: (18%) thrives on their ability to provide food for their family, they let their children influence their food purchasing decisions Types of research 1. Applied research- research designed to solve a specific problem- usually for a specific
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