Bell Ringer

List some reasons why you think that some new businesses have almost immediate success while others fail miserably.The main idea:

Successful companies must be able to understand the needs and wants of customers. Marketing research provides information to help a business plan, solve problems and make decisions regarding its products and services.

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Marketing Information Systems

Marketing Co-Op: Chapter 28.1

Define Marketing Research

The process and

methods used to gather

information, analyze it,

and report findings

related to marketing

goods and services

What is it used for?

Identify opportunities in

marketing

Solve marketing problems

Implement marketing plans

Monitor marketing performance

and effectiveness

Company’s can use the research to:

Determine customer attitudes and preferences

Test product features

Determine market size and growth potential

Learn about competitors

Determine buying cycles

Understand company’s public perception

Why is Market Research Important

If businesses don’t pay attention to

marketing research they could make costly

marketing mistakes about:

What products to produce

What price to sell product for

Who will buy the product

How to promote the product

Who uses Marketing Research?

Individual Businesses

Various manufacturers

Wholesalers

Retailers

Local, state and federal governments

Non-profit organizations

Lean Cuisine

Marketing Research Example: Stouffers:13 years doing research

before starting Lean Cuisine They studies consumers interest and

health dieting They studied panelist to determine

what people liked/disliked about their healthy meals

When they launched the Lean Cuisine line it was a major success with $125 Million in sales in the first year

Marketing Information Systems

Define: What is database marketing?

A process of designing, creating and managing customer

lists

Identify: What data should be included in

marketing information systems?

Customer profile data, company records, competitors

records

Analyze: What are some uses for customer lists?

Locating, selecting and targeting customers with special

programs

Database Marketing

Database marketing, or customer relationship management, is the process of designing creating and managing consumer lists

Database marketing lists are developed from the following: Face-to-face sales Direct mail Telephone or email purchases Service requests Website visits

What do companies do with this information?

The information collected about consumers is

stored in computer databases

Example: American Express

Their database includes what customers buy, where

they buy it, where they dine out and how much

money they spend

The company uses this info to send their card

members special customized offers on products,

hotels, restaurants, etc

Using Technology to Gather Information

Customer Loyalty Programs

Many businesses use loyalty

programs

The program offers discounts and

other rewards to shop at a

specific retailer

Companies use the loyalty to

cards to compile information in

their databases

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Types, Trends, and Limitations of

Marketing ResearchMarketing Co-Op 28.2

Quantitative vs. Qualitative

Quantitative

Answers questions has to “how many” or “how much”

Relies heavily on questionnaires to obtain info

Qualitative

Focuses on small number of people

Answers questions as to “why” or “how”

Attitude Research

Also known as opinion

research -designed to

obtain info on how

people feel

For example: Best Buy

Geek Squad Calling after service to

see how satisfied the customer was with their service

Market Intelligence

Concerned with: the location and size of a market the competition segmentation within the market for a

particular product

Data is used to assemble a profile of: Present and potential customers Competition The overall industry

Helps define target markets for particular products and services

Media Research

Also know as advertising research Determines the effectiveness of various media to

advertise a good or service Can be conducted before or after a media campaign Media Research measures:

Audience – number of people exposed to the media Frequency – number of times a viewer is exposed to the

media Reach – percentage of the target audience that sees

the media Ratings – total number of audience impressions

delivered over a set period of time

Product Research

Evaluates a products design, packaging

and usage

Information is also collected about

competitors products

Product and packaging is designed, tested,

and changed if needed

Limitations of Marketing Research

The amount of information that

is gathered is limited by the

amount of money and time a

company can afford to spend

Test markets may give

feedback, but it doesn’t mean

they will buy the product later