kot57578_ch04

kot57578_ch04 - IN THIS CHAPTER, WE WILL ADDRESS THE...

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IN THIS CHAPTER, WE WILL ADDRESS THE FOLLOWING QUESTIONS: 1. What constitutes good marketing research? 2. What are good metrics for measuring marketing productivity? 3. How can marketers assess their return on investment of marketing expenditures? 4. How can companies more accurately measure and forecast demand?
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101 t. Louis-based Build-A-Bear Workshop has cleverly capitalized on the “kiddie-craft” trend in children’s toys as well as the trend for interactive entertainment retailing. Instead of making pottery or play jewelry, the chain, with more than 160 stores in the United States, Canada, the United Kingdom, Japan, Denmark, and Korea, allows kids (and adults too) to design their own teddy bears and other stuffed animals, com- plete with clothing, shoes, and accessories. The chain boasts an average of over $500 per square foot in annual revenue, double the U.S. mall average. Ten percent of sales in 2003 came from hosting nearly 100,000 parties at a cost to customers of approximately $250 for two hours, which includes a stuffed animal for each child. Build-A-Bear has created a database on 9 mil- lion kids and their households by inviting customers to register their bears: S A Build-A-Bear Workshop customer leaving the store. CHAPTER 4 ::: CONDUCTING MARKETING RESEARCH AND FORECASTING DEMAND four >>> In addition to monitoring a changing marketing environment, mar- keters also need to develop specific knowledge about their partic- ular markets. Good marketers want information to help them inter- pret past performance as well as plan future activities. Marketers need timely, accurate, and actionable information on consumers, competition, and their brands. They need to make the best possi- ble tactical decisions in the short run and strategic decisions in the long run. Discovering a consumer insight and understanding its marketing implications can often lead to a successful product launch or spur the growth of a brand.
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102 PART 2 > CAPTURING MARKETING INSIGHTS < By including a barcode inside the bear, the company can reunite the owner with the bear if it gets lost. The database allows Build-A-Bear to contact customers by surface and e-mail with gift certificates, promotions, and party reminders. 1 In this chapter, we review the steps involved in the marketing research process. We also consider how marketers can develop effective metrics for measuring marketing productivity. Finally, we outline how marketers can develop good sales forecasts. ::: The Marketing Research System Marketing managers often commission formal marketing studies of specific problems and opportunities. They may request a market survey, a product-preference test, a sales forecast by region, or an advertising evaluation. It is the job of the marketing researcher to produce insight into the customer’s attitudes and buying behavior. We define marketing research as the system- atic design, collection, analysis, and reporting of data and findings relevant to a specific market- ing situation facing the company. Marketing research is now about a $16.5 billion industry glob- ally, according to ESOMAR, the World Association of Opinion and Market Research Professionals.
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This note was uploaded on 04/02/2008 for the course MKT 302 taught by Professor Peloso during the Spring '08 term at ASU.

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kot57578_ch04 - IN THIS CHAPTER, WE WILL ADDRESS THE...

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