process of planning, collecting, and analyzing data relevant to a marketing decision
Who provides marketing research?
producers, ad agencies, marketing research companies
Project approach (to marketing research)
addresses a specific problem or opportunity, more focused, in a finite time period
ex. Frank Luntz – estate tax vs. death tax, global warming vs. climate change
Systems approach (to marketing research)
provides marketing information on a consistent basis, used internally, broad general purpose
ex. sales report
Marketing Information System (MIS)
A set of procedures and methods for the regular, planned collection, analysis, and presentation of information for use in making marketing decisions
ex. Sales analysis reports
When NOT to use Project approach (to marketing research)
when results are unactionable,
when managers cant agree on what info they need
when the info already exists
when research is unethical
language, talk to people about the problem
numbers, x causes y
the problem the research hopes to analyze, should be well defined and structured from beginning
ex. Why are store revenues so low?
Discovery oriented decision problem
what is going on? (what/why)
Strategy oriented decision problem
How do we best address this? (more about implementation)
a restating of decision problem in research terms
Ex. This: Why are store revenues so low?
Turned to this: Among the possible explanations for why store revenues are low, what is the most likely culprit?
Types of research
qualitative, small scale
Examples of exploratory research
ex. how often do you go to these sites?
Examples of Descriptive Research
Types of Descriptive Research
Longitudinal, cross sectional
fixed sample of elements repeated over time, seeing if there’s change over time
Cross Sectional Research
single point in time, research time and contextually dependent – Most common
quantitative, cause and effect
examples of causal research
a situation with exact conditions, control of variables other than x and y is maximized
a situation with fluid conditions, control of variables other than x and y is challenging
what YOU have collected
adv – fits with research problem, timely, accurate, complete
dis – time and money costs, harder to get
can be obtained by either communication or observation
what OTHERS have collected
You should start with this – usually used for exploratory research
adv – saves time/money
dis – hard to answer a specific research question
internal (from your own company) or external (like Nielson or Axiom)
what is reality? does it exist in one or many forms?
ex. is there an obesity crisis? what is obesity?
what is the overriding goal of research? verstein (complete understanding)
Is knowledge time and contextually dependent? What is causality? What does the design look like?
ex. what is beauty? What is wealth?
The Contingency Approach
methods aren’t comparable, cant answer the same questions with the same research
The Interdisciplinary Approach
either method can answer the same question, approaches tap into different dimensions of the same phenomenon
The Relativist Approach
phenomenon will keep changing based on culture changing, research is time and contextually dependent, no absolute truth
driven by epistemological approach
studies culture from within, a little biased, voice of participant
ex. can be done using depth interviews
voice of researcher, saying what the person meant
Open ended question
An interview question that encourages an answer phrased in respondent’s own words.
respond in our own words
Closed ended question
An interview question that asks
the respondent to make a selection from a limited list of responses.
Scaled response question
A closed-ended question
designed to measure the intensity
of a respondent’s answer.
range of intensity
a subset from a large population
research will only apply to them
The population from which a sample will be drawn
A sample in which every element in the population has a known statistical likelihood of being selected.
A sample arranged so that every element of the population has an equal chance of being selected.
Non Probability Sample
Any sample in which little or no attempt is made to get a representative cross-section of the population.
A form of nonprobability sample using respondents who are convenient or readily accessible to the researcher.
ex. using students for marketing research at belmont
way to analyze data, looks at the statistical difference between 2 groups
way to analyze data, model of fit between multiple groups
sorta looks like this picture, want ratio numbers to go up to infinity
more power with infinity
analysis of variance, difference between 2 groups,
less power with categorical
Types of Errors
Measurement, Sampling, Frame, Random
Error when there is a difference between the information desired and the information provided by research
helps avoid measurement analysis
Error when a sample somehow does not represent the target population.
Error when a sample drawn from a population differs from the target population.
Error because the selected sample is an imperfect representation of the overall population.
1. People or organizations with
2. needs or wants that can be satisfied by the product
3. and with the ability and
4. the willingness to buy that offerings within that category.
subgroup of people who share some of the same characteristics that cause them to have similar product needs
Criteria for successful segmentation
1. Substantial (it will provide a profitable market share)
2. Identifiable and Accessible (done through research)
4. Mutually exclusive and collectively exhaustive
process of dividing the market into meaningful, relatively similar, identifiable segments or groups.
Bases for segmentation
Value Based (what ppl need) and Profile Based (demographics, etc.)
Not mutually exclusive (can put user based with occasion based)
Benefit Based Segmentation
[Part of Value Based Segmentation]
segmentation based on benefits of the offerings
ex. leaf car
Occasion Based Segmentation
[Part of Value Based Segmentation]
segmentation based on usage occasion
Bases for Profile-Based Segmentation
Demographics (age, gender, etc)
Geography (climate, terrain, urban/rural, etc.)
Psychographic Profile (personality traits, lifestyle, motives)
Behavioral Profile (consumer behavior towards a product)
segmentation based on consumers usage
80/20 principle – 80% of profit made from 20% of customers
identify segmented groups and develop one to one message for them (separate marketing mix for each segment)
Mass Marketing (undifferentiated) targeting strategy
A marketing approach that views the market as one big market with no individual segments and thus requires a single marketing mix.
adv – cost savings
dis – lacks innovation, more susceptible to competition
usually used for staple goods like foods
ex. snickers, milk, credit card
Concentrated Targeting Strategy
A strategy used to select one segment of a market for targeting efforts.
adv – concentrated, strong positioning
dis – segments too small
Multisegment Targeting Strategy
A strategy that chooses two or more well-defined market segments and develops a distinct marketing mix for each.
(most companies do this)
adv – greater financial success
dis – high cost of marketing, cannibalization
when you steal customers from yourself
ex. creating a new kind of cheerios makes old cheerios customers buy new kind instead of old kind
One-To-One Targeting Strategy
An individualized marketing method that utilizes customer information to build long-term, personalized, and profitable relationships with each customer.
Can be done much easier today with social media (using info from Axiom, etc.)
ex. put your own image on your credit card
should deliver superior value to customers
Types of Positioning Statements
Comparative Positioning Statement
Compares product to something else
ex. Gatorade is a smart beverage choice for athletes because it rehydrates, replenishes, and refuels
in ways water can’t.
This isnt allowed in all countries
Noncomparative Positioning Statement
does not compare product to something else, just lists benefits
ex. Gatorade is a smart beverage choice for athletes because it rehydrates, replenishes, and refuels.
use as a tool for rebranding, can see your position in the market and figure out where you want to be.