4.2 Marketing Planning

Chapter 25

Part 2

Marketing Research Secondary Research

A collection of data from second-hand sources. Often called “desk” research.

Second-hand research should be conducted first. It is less expensive and reveal a lot of information.

Primary Research A collection of first-hand data that is directly related to the

researcher’s needs. Primary Research can be expensive yet specific to your

needs.

Where do you get Secondary Data Government publications Local libraries and local government offices Trade organizations Market intelligence reports Newspaper reports and specialist publications Internal company records Internet

Advantages / Disadvantages of Secondary Data

Advantages Disadvantages

Typically inexpensive May be out dated

Can assist with planning primary research

Originally collected for another purpose so it may not entirely suitable for your purposes

Can be obtained quickly Data collection methods and accuracy may be unknown

Comparison of data from different sources

May not be available

Primary Research Quantitative Research

Research that leads to numerical results that can be analyzed and presented.

The average person dines out 3X per week.

Qualitative Research Research into the motivations behind buying

behaviors and opinions.All fast food restaurants are cheap.

Where do you get Primary Data Qualitative Research

includes:

Focus GroupsSmall groups of people expressing their attitudes towards product, services, advertisements, or packaging.

Where do you get Primary Data Test Marketing

Marketing a new product in ageographical region or city before a full-scale launch.

Consumer Surveys Directly asking consumers

about their opinions and preferences.

4 Issues with Surveys1. Who to ask?

You cannot ask everyone, so a SAMPLE is taken.

2. What to ask?Construct a unbiased questionnaire.

3. How to ask?Telephone, self-complete, interviews

4. How accurate is it?Assess the accuracy and validity research

Sampling Sample

A group of people taking part in market research selected to represent the target market.

Sampling Error Error in research caused by using a sample for

data collection instead of the whole target population

Who to ASK? Random Sampling

Each member of the target population has an equal chance to be selected.

You should: Have a list of all the people in the target

population Sequential numbers are assigned A list of random numbers are generated

Who to ASK? Stratified Sampling

The target population containsmany layers (men, women, children, teenagers, elderly)

The sample should include representation from all the layers in the target population.

Who to ASK? Cluster Sampling

If the target population is geographically diverse, clusters of samples may be taken from a few different locations instead of every location.

Who to ASK? Quota Sampling

The population is segmented into mutually exclusive groups (example: women, men)

If the survey was to be administered to 100 people, then 50 men and 50 women would be interviewed.

Who to ASK? Snowball Sampling

The first respondent refers a friend, who refers a friend, who refers a friend.

This type is likely to be biased because friends tend to have similar lifestyles and opinions.

Market Segmentation A sub-group of whole market in which

consumers have similar characteristics.

Hewlett-Packard sells computers for office and home use. They also make laptops for people who travel.

Coca-Cola makes regular soda, diet soda, and athletic drinks.

Marketing Concepts

Market: The group of potential customers who have similar needs/wants, sufficient buying power, and the willingness to give up a portion of that buying power in order to buy your product/service.

The GROUP

Marketing Concepts Market

Segmentation:

Dividing the total market into smaller, well-defined groups with similar wants/ needs and similar key characteristics.

Dividing the GROUP

Marketing Concepts Market Segment

One sub-group of the many segments that belong to the whole group. Specific products and services can be targeted to a specific segment.

Marketing Concepts

Target Market:

The group or groups of potential customers identified as most likely to patronize the business and buy its products.

Section of Group Focused on For Sales

Consumer Profile A quantified picture of the consumers of

your products Proportions of age Income levels Location Gender Social class

How are markets segmented? Geographic

Tastes may very by geographic location

Demographic Most common way to segment

Age, gender, family size, ethnic background, income, weight, job

Psychographic Differences in lifestyle, hobbies, personalities, values

Sports fans, athletes, fisherman, church-goers

Positioning Your Product Determining who should want to purchase

your product…..placing your product in that market segment….using your marketing mix to correctly market to that target market.

Unique Selling Point (USP) The factor that makes your company’s

product unique…designed to motivate customers to buy. Product: Dyson’ vacuum cleaner with cyclone

technology Price: Walmart – always low prices Place: Dell Computers – first computer

manufacturer to utilize Internet sales Promotion: FedEx….when it absolutely,

positively has to be there overnight.