mktg1001 wk6 - Marketing Principles This week… Chapter 4...

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Unformatted text preview: Marketing Principles This week… Chapter 4 g Information System Marketin Marketing Research Video CB + MR uick Overview of Exam Q MKTG1001: Semester 1 Where are we? Operating in a dynamic environment: Its position within the industry and the influences of macro change The firm Using its know ledge of consumers (From consumer b ehaviour and market researc h/information) Develop an appropriate strategy (Strengths: resources, brands, (Considering the 3C’s and the products, finance, culture) environment) Select a target market/s and set positioning (And then proceeds to implementation 4Ps/7Ps) MKTG1001: Semester 1 A Mini Case Study t’ channel new ‘direc A insurance for car MKTG1001: Semester 1 Large market survey, via a questionnaire MKTG1001: Semester 1 Car insurance firm Easy to get, hard to keep, low margins Too loyal, won’t switch, captured T/M Hard to get, easy to keep, good margins Resistance to switch, prefer large firms MKTG1001: Semester 1 Different Marketing Mix Shoppers = Best price/deal Basic product Low Price Standard Process MKTG1001: Semester 1 Who cares = Easy/convenience Premium product High price Assisted Process MKTG1001: Semester 1 Figure 4.1 Reorganized Internal records Marketing intelligence Information analysis Marketing research MKTG1001: Semester 1 Internal Records Ongoing sales results Accounting reports Customer database Marketing campaigns Feedback from sales people Customer complaints Direct marketing results Reseller information Loyalty programs MKTG1001: Semester 1 Goals of Loyalty Programs Collect lots of customer data MKTG1001: Semester 1 Marketing Intelligence Competitor promotions, advertising Competitor products Competitor pricing MKTG1001: Semester 1 Industry Retailers, reports, trade distributors shows Media Annual releases, reports articles Consultants Job interviews Information Analysis Internal records •Sales when we advertise Marketing intelligence •Sales when competitors bring out new products Marketing research MKTG1001: Semester 1 Information analysis •Sales per type of customer •Profitability when we discount Through information analysis can work out the following MKTG1001: Semester 1 Development of market models MKTG1001: Semester 1 What does a bank know about you? Your age? Your address? Your social class? Your accounts and balances? Frequency and type of purchases? Your lifestyle? Your responsiveness to offers/campaigns? MKTG1001: Semester 1 When is MR conducted? How long will it take? Can we wait? Will our competitors find out about our plans? What are the implications of getting it wrong? Can we use existing and available information instead? MKTG1001: Semester 1 Are we a r isk-taking or conserv ative firm? Are we experienced in this type of decision? Can I use the MR as ‘insurance’ for a poor decision What’s the cost/benefit trade-off Market Research Process Define problem and objectives Develop the research plan Implement the research MKTG1001: Semester 1 Interpret and report the research (and solve problem) Vague, unclear Measure, define Relationship MKTG1001: Semester 1 Determine the Research Design Research Design A plan that specifics what information marketers will collect and what type of study they will undertake Secondary Data Data that have been collected for some purpose other than the problem at hand (INTERNAL RECORDS INTELLIGENCE, ANALYSIS, PREVIOUS MR STUDIES) MKTG1001: Semester 1 Primary Data Data from NEW research specifically conducted to help in making THIS decision (TAILORED MR PLAN) Experiment (Testing) Case study Experience survey Projective technique MKTG1001: Semester 1 Secondary data Provides Qualitative Information Thoughts/attitudes/emotions Soft information Deeper understanding “I love to see the auditions with people who think they can sing but are really bad” Helps understand the MKTG1001: Semestereason r1 Measures/statistics Hard information Top-level information 40% of 18-25 year olds watch Australian Idol Gives the number of viewers Focus groups Basically a p iscussion grou d Usually done in person over about 90 minutes Has a discussion guide, but is unstructured MKTG1001: Semester 1 Uses 6-10 consumers discussing topics (with a moderator) Moderator tries to get good interaction Often only 4-8 gr oups (so around50 peo ple in total) Used when the proble m is unclear or when ‘emotional’ informati on is required Usually group is recorded and the client sits behind a glass panel In-depth interview Long discussions with one consumer at a time Used when discussing private information Typically gets quite detailed info on that consumer only Used to explore a range of topics to get a general idea only MKTG1001: Semester 1 Usually a 1st MR phase only This could be money, sex, or medical conditions Case Study Conducting a f detailed review o a another firm OR revious campaign p It’s like benchmarking (making a measured comparison) MKTG1001: Semester 1 Need to look for a similar problem Depends on the availability of a su itable case study Experience Survey Talking to people with experience May be management of external advisors Helps clarify thinking or identify other possibilities Usually a 1st MR phase only MKTG1001: Semester 1 Quite unstructured and could be a regular task More common/easier for larger firms with more staff/mgt Projective Techniques We have seen in movies with the inkblot test Using indirect questions Tries to ‘uncover’ true feelings and motivations MKTG1001: Semester 1 Thematic apperception tests Fancy name for perceiving theme/message ft ust be so M bread te picture Cu Isn’t that sweet MKTG1001: Semester 1 Bad pare nt s The poor g should be irl in bed Give her a better me al Sentence Completion • People who drive a BMW are... • Some people go to McDonalds every day because... • The best part about shopping is... MKTG1001: Semester 1 Surveys Asking the same questionnaire to lots of people Can be via net, mail, phone or in person MKTG1001: Semester 1 Usually uses answers with set responses and a few openended questions Provides statistic results Often survey 200300 consumers Used when measures are required Some real life experiences Length of questionnaires Reliability of information Respondent behaviour Interviewer error MKTG1001: Semester 1 Watching consumers Observation Personally, via camera, machine, phone Can be simply counting people (e.g. Mall) Or could be reviewing their staff interaction “Your call may be recorded for training purposes” MKTG1001: Semester 1 Or could be observing their instore actions Or their actions with a product TV People Meters TV ratings based on physical device in homes Sample selected by survey Phone confirmation MKTG1001: Semester 1 5,000 homes X people watching Mystery Shoppers Pretend to be normal customers ASSESS Sales skills Waiting times Staff appearance Product knowledge Store appearance Overall service MKTG1001: Semester 1 Experiment (test mktg) Implementing a to mktg mix change lt determine the resu Might change price or use a new style ad or have a product variation te ically gets qui Typ n rate real info o accu ur rket’s behavio the ma MKTG1001: Semester 1 Little bit like “trial and error” Usually don e in real life, bu t can be te s te d in a p retend environmen t Used to confirm relationships and build market models The Willie Wonka Problem? The original movie was simply a promotional vehicle for a new chocolate bar to be launched by the Quaker Oats Company But the chocolate melted on the shelves in the stores and the product was withdrawn MKTG1001: Semester 1 Mail – For/Against el Respondents fe be nonymous (can a bad as well) Low cost Good for ongoing research MKTG1001: Semester 1 Slow return speed Low response rates (or segment bias) Length of survey is limited Inflexible questionnaire Phone – For/Against Limited interviewer bias Lower cost Faster igh flexibility in H ) stioning (CATI que MKTG1001: Semester 1 Consumers screen calls Decreasing levels of cooperation Limited qu estionnai re length Face-to-Face – For/Against Longer quest ionnaires possible Flexibility of questioning Can use visuals Can help explain questions MKTG1001: Semester 1 Higher cost Interviewer bias possible Takes greater time Online – For/Against n ollectio c tant data Ins Low cost No interview er Access regardless of geographic location MKTG1001: Semester 1 bias Unclear who is responding No assurance of honesty e Limited questionnair length Limitations with self-selected samples A Poor Questionnaire? This is a questionnaire for McDonalds. Your help is appreciated. 1. Which is the first fast food restaurant you can think of? 2. Do you eat at fast food restaurants often? 3. Do you think that fried fast food is unhealthy? 4. Why do you think that McDonald’s food is so tasty? 1. How old are you? 1. Do you recall seeing any ads for McDonalds in January? MKTG1001: Semester 1 Types of poor/biased questions MKTG1001: Semester 1 Frequency Tables • Why do you like lectures? Been barred from the casino 55% I just love lectures 25% Nothing good on TV 10% I have nowhere else to go 10% TOTAL 100% MKTG1001: Semester 1 Cross-tabulation – start with two separate tables Average – credit or higher Average – pass or lower 50% 50% Study 10 hrs pw + Study 0-9 hrs pw MKTG1001: Semester 1 40% 60% And then combine together Study 10 hrs Study 0-9 hrs pw pw TOTAL Average – credit or higher Average – pass or lower 10% 40% 50% 30% 20% 50% TOTAL 40% 60% 100% MKTG1001: Semester 1 Correlation Correlation = co-relation = relationship th fers to the streng Re the relationship of n two variables betwee Purchases Age Health Study Time Grades Time at uni Fun Uni Degree MKTG1001: Semester 1 Brand Liking Income Regression Analysis Regression attempts to create a model Uses several variables to predict another variable MKTG1001: Semester 1 Regression Analysis A statistical model is created • Uni Grades = 3 X study hours – 2 X lectures attended + 2.4 X assignment effort + 0.2 uni degree + 0.3 IQ + 150 X luck MKTG1001: Semester 1 Main decisions with need to make MKTG1001: Semester 1 The sample (who should we talk to) The general population (anyone) Retailers Consumers in one target market Specific experts (in or outside the firm) Our sales people Consumers in several target markets MKTG1001: Semester 1 Sampling Methods Equal chance of being selected MKTG1001: Semester 1 Selected for a reason Non-probability Methods MKTG1001: Semester 1 Probability Methods (Phone e.g.) MKTG1001: Semester 1 Sample Size Consideration • The larger the sample size, the more accurate the result (but more $’s) • ‘Do you like McDonald’s food?’60% = Yes Sample Size 50 250 500 1,000 2,500 MKTG1001: Semester 1 Possible Low 46% 54% 56% 57% 58% Possible High 74% 66% 64% 63% 62% Key Points from Video • Range of MR techniques focus groups, surveys, ethnography, observation • Challenges of ‘blizzard of brands’ (perception) • Need a close connection to them and lifestyle • Understand them for strategies to make $’s • Various CB issues group influence, brand personality + self-concept • Group influence via opinion leaders • MKTG1001: Semester ongoing MR Need for 1 ...
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