week 5 – february 9, 2004 market research (review) why people buy product life cycle fm20611 –...

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  • Week 5 February 9, 2004Market Research (Review)Why People BuyProduct Life CycleFM20611 Marketing II

    FM20611 Marketing II

  • Basics of Market ResearchCollectGather from sourcesAnalyzeStatisticsInterpretTheorizeSystematicConsistentRandomRelevant!Collect, analyze, and interpret in a systematic manner data relevant to a particular marketing question

    FM20611 Marketing II

  • Primary DataOriginal information (usually) Collected for a specific studyCan be very expensive

    FM20611 Marketing II

  • Survey Methods: Telephone StudyMost popular methodExpensivePeopleComputersTollsVery fast and accurate (+- 3%)Missing: Unlisted phone numbersMay be an important part of marketTV overnights nightly polls

    FM20611 Marketing II

  • Survey Methods: Personal SurveyIn person, at location often at a mallCan be least expensiveDo it yourselfVery focused single locationBias problemsPeople can be suspiciousAnswer what they think you want to hearMake up answers

    FM20611 Marketing II

  • Survey Methods: Focus GroupsGather small representative group to ask detailed questionsLog session get to know betterUsually compensate participantsSponsor is frequently not knownObservers hidden behind one-way mirror

    FM20611 Marketing II

  • Survey Methods: Mail SurveyMuch slower 10 days to get 80% of those who respondSingle-digit % response rate typicalMost people throw awayPayment doesnt helpSelfish reasons increase response ratese.g. after-stay hospital surveyQuestions must be worded very carefullyAnonymous and non-threatening

    FM20611 Marketing II

  • SampleRepresentative number of people from a specific universeEveryone has equal chance of selection (i.e. it must be random to be useful)Can be surprisingly small and still be useful

    FM20611 Marketing II

  • Other Sources of Primary DataCustomer check-outSupermarket discount cardsRadio ShackIn-store observationSuccessful buyers always on floorPost-sale survey formsWarranty formsPacked with delivery CrutchfieldNegative form why didnt you buyNewsletter feedback forms

    FM20611 Marketing II

  • Secondary DataAlready existing or published data gathered by someone else or for another purpose

    FM20611 Marketing II

  • Secondary Sources: Census Bureau Part of U.S. Dept of CommercePopulation Census (every 10 years)Constitutional requirementApportionmentShort or long formInfo by localeWebsite: http://www.census.gov/

    FM20611 Marketing II

  • Business CensusEvery 5 years ending in 2 & 7NAICS (North American Industry Classification SystemAs of 2002SIC (Standard Industrial Classification)Old System233-Womens & Juniors Outerwear Mfg234-Womens & Childrens Undergarments236-Girls & Infants Outerwear562-Womens RTW RetailersOne business may fall into multiple categories

    FM20611 Marketing II

  • Prospect/Mailing Listszapdata.com prospect lists, mailing listsinfousa.com mailing lists

    FM20611 Marketing II

  • Other Sources of Secondary DataTrade AssociationsLocal Planning AuthorityZoningOnline Search

    FM20611 Marketing II

  • Test MarketingSmall batch of product produced specifically to test sales, advertising, pricing, and dealer/customer reaction in a typical settingArrangement with retailersGuaranteed profitSlotting feesPeoria, Illinois, Marion, IndianaDemographics mirror entire countryDownside of Test MarketingCompetitors learn of productMay try to spoil test

    FM20611 Marketing II

  • PrototypesHand-built samples of productSolicit early opinionsTake orders at trade shows

    FM20611 Marketing II

  • Consumer Behavior (i.e. Why People Buy)Maslows Hierarchy of Needs (Loosely)

    FM20611 Marketing II

  • Meeting NeedsBasic Drives:HungerThirstSexShelterProtectionGainful EmploymentReward MotivesComfortEasePleasureEgo MotivesSelf-imageStatusFitnessEducationOwnershipImitationPowerSomething newEcology considerations

    FM20611 Marketing II

  • Consumer AttitudesFormed byPast personal experiencesInformation from othersClose friendsOpinion leadersSportsCelebritiesReviewsExperts

    FM20611 Marketing II

  • Consumer Attitudes IIStrongly HeldAvoid conflicting informationCompetitorsRelated toEgoValue System/ReligionFamilyWeakly HeldLittle ego relationship to itemChanged more easily

    FM20611 Marketing II

  • Attitude RevisitedABC ModelAffectHow a consumer feels about a productBehaviorAn intention to do something (buy)CognitionBeliefs a consumer has about a product

    FM20611 Marketing II

  • Attitude HierarchiesThe Standard Learning HierarchyThe Experiential HierarchyThe Low-Involvement Hierarchy

    FM20611 Marketing II

  • Consumer ProblemsAll selling is problem solvingSmall ProblemsMore likely for consumer to identify with personallyAntiperspirantsCleaningLarge ProblemsHarder for people to relateHappens to other peopleSlowly increasingInsurance AdsIve fallen and I cant get up

    FM20611 Marketing II

  • Consumer Decisions: Expensive ItemsDecision usually made at homeConsult with partnerMore complexTime consumingSeveral visitsTake-home materials/brochuresDecision-oriented website

    FM20611 Marketing II

  • Consumer Decisions:Regular PurchasesDecision made at shelfOr at couponsWithout much thoughtNo other materialsInformational website

    FM20611 Marketing II

  • Consumer Decisions: Impulse PurchasesDecision made at point of saleInfluenced byDisplayPriceConvenienceNovelty

    FM20611 Marketing II

  • Product Adoption StagesAwarenessCant buy what you dont know aboutInterestSeek more informationEvaluationWeigh pros & consConsider effectivenessFulfill a need?Solve a problem?

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  • Product Adoption - continuedTrialBuy if inexpensiveTry if expensiveMay not buy if cant tryDecisionReturnPurchase

    FM20611 Marketing II

  • Product Adoption - continuedConfirmationConsumer usually supports decision by not paying attention to negativesReminders on packaging and even product800 numbersWebsiteHangtagsLabels

    FM20611 Marketing II

  • Product Life-Cycle

    FM20611 Marketing II

  • BCG Matrix

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  • Next ClassFeb 16th:Midterm ReviewMidterm

    FM20611 Marketing II