Marketing Research-q2 Type of Research

8/6/2019 Marketing Research-q2 Type of Research

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MARKETING RESEARCH

M.B.A Marketing Management 2nd Year

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Q2. A leadin g computer manufacturing company plans to operate sales

promotion schemes for its modified laptop. Suggest suitable sales

promotion strategies(both push and pull strategy). Also examine what

type of research you can deploy for measuring its success


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MARKETING RESEARCH


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Marketing is the activity, set of institutions, and processes for

creating, communicating, delivering, and exchanging offerings that

have value for customers, clients, partners, and society at large.

Marketing seems to mean different things to different people, but

in reality marketing is a complex and robust activity that

encompasses many different skills, competencies and people. It is

a very exciting and rewarding field that offers a marketer the

chance to explore his own interests and develop strengths in areas

he may have never considered.

Marketers must satisfy these constituents by marketing products

and services so that they fulfill customer needs/wants and attain

their clients/partners goals. There is also an ethical question

about the role of the marketer to protect society at large by

refusing to misrepresent features/benefits or hide the negative

aspects of a product or service. True marketers think of long -

term, strategic goals, and trying to make a quick buck at the

expense of others is not how you attain these objectives. The

important elements of marketing are:

y Marketing focuses on the satisfaction of customer needs,wants and requirements.

y The philosophy of marketing needs to be owned by everyonefrom within the organization.

y Future needs have to be identified and anticipated.y There is normally a focus upon profitability, especially in

the corporate sector. However, as public sector organizations

and not-for-profit organizations adopt the concept of

marketing, this need not always be the case.

yMore recent definitions recognize the influence of marketingupon society.


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MARKETING RESEARCH


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Marketing Mix:

The marketing mix is probably the most famous marketing term. Itselements are the basic, tactical components of a marketing plan.

Also known as the Four P's, the marketing mixelements are price,

place product and promotion.

The concept is simple. Think about another common mix - a cake

mix. All cakes contain eggs, milk, flour, and sugar. However, you

can alter the final cake by altering the amounts of mix elements

contained in it. So for a sweet cake add more sugar. It is the

same with the marketing mix. The offer you make to you customer

can be altered by varying the mix elements. So for a high profile

brand, increase the focus on promotion and desensitize the weight

given to price. Another way to think about the marketing mix is to

use the image of an artist's palette. The

marketer mixes the prime colours (mix elements) in different

quantities to deliver a particular final colour. Every hand

painted picture is original in some way, as is every marketing mix

4 Ps of Marketing Mix

y Producty Pricey Placementy Promotion

Product: Product refers to tangible, physical products, as well as

services. Your product based tactics link back to your overall

strategy - if your strategy is market penetration, then there may

be little need to do anything to the product. However if you have

chosen product development or diversification, then a certainamount of research and development, and product design will be

needed. Some product decisions to be made are:

y Brand namey Functionalityy Styling


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y Qualityy Safetyy Packagingy Repairs and Supporty Warrantyy Accessories and servicesy

Price

Price refers to how much you will charge for your product or

service. Pricing is one of the most important factors when

deciding your marketing tactics, which could involve the

following:

y Skimming low market penetration, high pricing strategy forpremium products

y Comparable pricing if you are not the market leader,competitors will have set a price expectation which can be

followed

y Market penetration strategy deliberately low pricing inorder to enter or control a market quickly.Some pricing

decisions to be made include:

y Overall pricing strategy (skim, penetration, etc.)y Suggested retail pricey Volume discounts and wholesale pricingy Cash and early payment discountsy Seasonal pricingy Bundlingy Price flexibilityy Price discrimination

Place:

Place refers to where customers can obtain your product or

service. Place decisions to be made include:

y Distribution channels


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y Market coverage (inclusive, selective, or exclusivedistribution)

y Specific channel membersy Inventory managementy Warehousingy Distribution centersy Order processingy Transportationy Reverse logistics

Promotion:

Promotion refers to the communication of information about the

product service with the goal of generating a positive response.

Promotion is much more than just advertising - this is the

discipline of marketing communications. Promotion decisions

include:

y Promotional strategy (push, pull, etc.)y Advertisingy Personal selling & sales forcey Sales promotionsy Public relations & publicityy Marketing communications budget

Sale:

A sale is the act of selling of products or services in return for

money or other compensation. It is an act of completion of a

commercial activity. It forms an integral part of commercial

activity. As a practical implementation of marketing it often

forms a separate grouping in a corporate structure, employingseparate specialist operatives known as salesmen. The successful

communication of the necessary information that encourages an

individual to make a purchase is the responsibility of the sales

person or the sales engine (e.g. internet, vending machine etc).

Because of the natural reluctance of human beings to part company

with


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something they currently own in exchange for something that MIGHT

make their life better, the role of the salesman is often linked

with excessive behavior and overstatement of productcharacteristics.

The primary function of sales is to find and close leads, turning

prospective customers into actual ones. From a marketing point of

view, selling is one of the methods of promotion used by

marketers. Other promotional techniques include advertising, sales

promotion, publicity, and public relations.

Forms of selling include:

yDirect Sales - involving face-to-face contact

o retail or consumero door-to-door or travelling salesmano business-to-business

y Indirect - human-mediated but with direct contacto telemarketing or telesaleso mail-order

y Electronico web B2B, B2Co EDI

y Agency-basedo consignmento multi-level marketingo sales agents (real estate, manufacturing)

Sales Promotion : Sales promotion is any initiative undertaken by

an organisation to promote an increase in sales, usage or trial of

a product or service. Sales promotions are varied. Often they are

original and creative, and hence a comprehensive list of all

available techniques is virtually impossible (since original sales

promotions are launched daily!). Here are some examples of popular

sales promotions activities. The main objective of sales promotion

is to increase sales. However, there are also some other

objectives of sales promotion. The objectives are:

i. To introduce new products


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ii. To attract new customers and retain the existing ones

iii. To maintain sales of seasonal products

iv.To meet the challenge of competition

(i)To introduce new products: Have you ever heard about

distribution of free samples?

Perhaps you know that many companies distribute free samples while

introducing new

products. The consumers after using these free samples may develop

a taste for it and buy

the products later for consumption.

(ii) To attract new customers and retain the existing ones: Sales

promotion measures

help to attract or create new customers for the products. While

moving in the market,

customers are generally attracted towards the product that offers

discount, gift, prize, etc

on buying. These are some of the tools used to encourage the

customers to buy the goods.

Thus, it helps to retain the existing customers, and at the same

time it also attracts some new

customers to buy the product.

(iii) To maintain sales of seasonal products: There are some

products like air conditioner,

fan, refrigerator, cooler, winter clothes, room heater, sunscreen

lotion, glycerin soap etc.,

which are used only in particular seasons. To maintain the sale of

these types of products

normally the manufactures and dealers give off-season discount.

For example, you can buy

air conditioner in winter at a reduced price. Similarly you may

get discount on winter clothes

during summer.

(iv) To meet the challenge of competition: Todays business faces

competition all the time.

New products frequently come to the market and at the same time

improvement also takes place. So sales promotion measures have


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become essential to retain the market share of the seller or

producer in the product-market.

Tools of Sales Promotion

To increase the sale of any product manufactures or producers

adopt different measures like

sample, gift, bonus, and many more. These are known as tools or

techniques or methods of sales promotion. Let us know more about

some of the commonly used tools of sales promotion.

(i) Free samples: You might have received free samples of shampoo,

washing powder, coffee

powder, etc. while purchasing various items from the market.

Sometimes these free samples

are also distributed by the shopkeeper even without purhasing any

item from his shop.

These are distributed to attract consumers to try out a new

product and thereby create new

customers. Some businessmen distribute samples among selected

persons in order to

popularize the product. For example, in the case of medicine free

samples are distributed

among physicians, in the case of textbooks, specimen copies are

distributed among teachers.

(ii) Premium or Bonus offer: A milk shaker along with Nescafe, mug with

Bournvita, toothbrush with 500 grams of toothpaste, 30% extra in a

pack of one kg. are the examples of premium or bonus given free

with the purchase of a product. They are effective in inducing

consumers to buy a particular product. This is also useful for

encouraging and rewarding existing customers.

(iii) Exchange schemes:It refers to offering exchange of old product

for a new product at aprice less than the original price of the product. This is useful

for drawing attention to product

improvement. Bring your old mixer-cum-juicer and exchange it for

a new one just by

paying Rs.500 or exchange your black and white television with a

colour television are


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MARKETING RESEARCH


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various popular examples of exchange scheme .

(iv) Price-off offer: Under this offer, products are sold at a price

lower than the original price.

Rs. 2 off on purchase of a lifebouy soap, Rs. 15 off on a pack of

250 grams of Taj Mahal

tea, Rs. 1000 off on cooler etc. are some of the common schemes.

This type of scheme is

designed to boost up sales in off-season and sometimes while

introducing a new product in

the market.

(v) Coupons:Sometimes, coupons are issued by manufacturers either

in the packet of a product

or through an advertisement printed in the newspaper or magazineor through mail. These

coupons can be presented to the retailer while buying the product.

The holder of the coupon

gets the product at a discount. For example, you might have come

across coupons like,

show this and get Rs. 15 off on purchase of 5 kg. of Annapurna

Atta. The reduced price

under this scheme attracts the attention of the prospective

customers towards new or

improved products.

(vi) Fairs andExhibitions: Fairs and exhibitions may be organised

at local, regional, national

or international level to introduce new products, demonstrate the

products and to explain

special features and usefulness of the products. Goods are

displayed and demonstrated

and their sale is also conducted at a reasonable discount.

International Trade Fair in New Delhi at Pragati Maidan, which

is held from 14th to 27th November every year, is a wellknown

example of Fairs and Exhibitions as a tool of sales promotion .


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(vii) Trading stamps:In case of some specific products trading

stamps are distributed among

the customers according to the value of their purchase. The

customers are required to

collect these stamps of sufficient value within a particular

period in order to avail of some

benefits. This tool induces customers to buy that product more

frequently to collect the

stamps of required value.

(viii) Scratch and win offer: To induce the customer to buy a

particular product scratch and

win scheme is also offered. Under this scheme a customer scratch

a specific marked area

on the package of the product and gets the benefit according to

the message written there.

In this way customers may get some item free as mentioned on the

marked area or may

avail of price-off, or sometimes visit different places on special

tour arranged by the

manufacturers.

(ix) Money Back offer:Under this scheme customers are given

assurance that full value of the

product will be returned to them if they are not satisfied afterusing the product. This creates

confidence among the customers with regard to the quality of the

product. This technique is particularly useful while introducing new products in the

market.

Importance of Sales Promotion

The business world today is a world of competition. A business

cannot survive if its products do not sell in the market. Thus,

all marketing activities are undertaken to increase sales.

Producers may spend a lot on advertising and personal selling.

Still the product may not sell. So incentives need to be offered

to attract customers to buy the product. Thus, sales promotion is

important to increase the sale of any product. Let us discuss the

importance of sales promotion from the point of view of

manufacturers and consumers.


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Some examples of sales promotion schemes:

(a) Buy-One-Get-One-Free (BOGOF) - which is an example of a self-

liquidating promotion. For example if a loaf of bread is priced at

$1, and cost 10 cents to manufacture, if you sell two for $1, you

are still in profit - especially if there is a corresponding

increase in sales. This is known as a PREMIUM sales promotion

tactic.

(b) Customer Relationship Management (CRM) incentives such as

bonus points or money off coupons. There are many examples of CRM,

from banks to supermarkets.

(c) New media: Websites and mobile phones that support a salespromotion. For example, in the United Kingdom, Nestle printed

individual codes on KIT-KAT packaging, whereby a consumer would

enter the code into a dynamic website to see if they had won a

prize. Consumers could also text codes via their mobile phones to

the same effect.

(d) Merchandising: additions such as dump bins, point-of-sale

materials and product demonstrations.

(e) Free gifts: e.g. Subway gave away a card with six spaces for

stickers with each sandwich purchase. Once the card was full theconsumer was given a free sandwich.

(f) Discounted prices e.g. Budget airline such as EasyJet and

Ryanair, e-mail their customers with the latest low-price deals

once new flights are released, or additional destinations are

announced.

(g) Joint promotions between brands owned by a company, or with

another company's brands. For example fast food restaurants often

run sales promotions where toys, relating to a specific movie

release, are given away with promoted meals.

(h)Free samples e.g. tasting of food and drink at sampling points

in supermarkets. For example Red Bull (a caffeinated fizzy drink)

was given away to potential consumers at supermarkets, in high

streets and at petrol stations.


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(i) Vouchers and coupons, often seen in newspapers and magazines,

on packs.

Push and pull strategies - two approaches for promotion:

Promotional strategies to get your product or service to market

can be roughly divided into two separate camps.

1. Push strategy: A push promotional strategy involves taking the

product directly to the customer via whatever means to ensure the

customer is aware of your brand at the point of purchase.

"Taking the product to the customer"

Examples of push tactics

y Trade show promotions to encourage retailer demandy Direct selling to customers in showrooms or face to facey Negotiation with retailers to stock your producty Efficient supply chain allowing retailers an efficient supplyy Packaging design to encourage purchasey Point of sale displays

2. Pull strategy: A pull strategy involves motivating customers to

seek out your brand in an active process. "Getting the customer to

come to you"

Examples of pull tactics

y Advertising and mass media promotiony Word of mouth referralsy Customer relationship managementy Sales promotions and discounts

The origin of these two terms refers to the supply chain and how

the demand for the product is generated.


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Push strategy explained:

The term 'push strategy' describes the work a manufacturer of a

product needs to perform to get the product to the customer. This

may involve setting up distribution channels and persuading middlemen and retailers to stock your product. The push technique can

work particularly well for lower value items such as fast moving

consumer goods (FMCGs), when customers are standing at the shelf

ready to drop an item into their baskets and are ready to make

their decision on the spot. This term now broadly encompasses most

direct promotional techniques such as encouraging retailers to

stock your product, designing point of sale materials or even

selling face to face. New businesses often adopt a push strategy

for their products in order to generate exposure and a retail

channel. Once your brand has been established, this can beintegrated with a pull strategy.

Pull strategy explained

'Pull strategy' refers to the customer actively seeking out your

product and retailers placing orders for stock due to direct

consumer demand. A pull strategy requires a highly visible brand

which can be developed through mass media advertising or similar

tactics. If customers want a product, the retailers will stock it

- supply and demand in its purest form and this is the basis of a

pull strategy. Create the demand, and the supply channels willalmost look after themselves.

From the point of view of manufacturers: Sales promotion is

important for manufacturers because

i. It helps to increase sales in a competitive market and thus,

increases profits;

ii. It helps to introduce new products in the market by drawing

the attention of

potential customers;iii. When a new product is introduced or there is a change of

fashion or taste of

consumers, existing stocks can be quickly disposed off;

iv. It stabilizes sales volume by keeping its customers with them.

In the age of competition it is


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quite much possible that a customer may change his/her mind and

try other brands. Various incentives under sales promotion schemes

help to retain the customers.

From the point of view of consumers: Sales promotion is important

for consumers because

i. The consumer gets the product at a cheaper rate;

ii. It gives financial benefit to the customers by way of

providing prizes and sending them to

visit different places;

iii. Tthe consumer gets all information about the quality,

features and uses of different products;

iv. Certain schemes like money back offer creates confidence in

the mind of customers about

the quality of goods; and

v. It helps to raise the standard of living of people. By

exchanging their old items they can use

latest items available in the market. Use of such goods improves

their image in society.

Marketing Research is the function that links the consumer,

customer, and public to the marketer through information,

information used to identify and define marketing opportunities

and problems; generate, refine, and evaluate marketing actions;

monitor marketing performance; and improve understanding of

marketing as a process. Marketing Research is systematic problem

analysis, model building and fact finding for the purpose of

important decision making and control in the marketing of goods

and services.

Marketing Research is a well-planned, systematic process which

implies that it needs planning at all the stages. It uses

scientific method. It is an objective process as it attempts to

provide accurate authentic information. Marketing Research is

sometimes defined as the application of scientific method in the

solution of marketing problems.Marketing Research plays a very

significant role in identifying the needs of customers and meeting

them in best possible way. The main task of Marketing Research is

systematic gathering and analysis of information.


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Marketing Research is essential for strategic market planning and

decision making. It helps a firm in identifying what are the

market opportunities and constraints, in developing and

implementing market strategies, and in evaluating the

effectiveness of marketing plans.Marketing Research is a growing

and widely used business activity as the sellers need to know more

about their final consumers but are generally widely separated

from those consumers. Marketing Research is a necessary link

between marketing decision makers and the markets in which they

operate. Marketing Research includes various important principles

for generating information which is useful to managers. These

principles relate to the timeliness and importance of data, the

significance of defining objectives cautiously and clearly, and

the need to avoid conducting research to support decisions already

made.

Types of Marketing Research: Marketing research is conducting to

know the customers opinion, it can be done pre-production, post-

production or re launch of the product. Marketing research

varies from scale to large scale depends upon the company

willingness to gather in-depth information. Marketing research is

mainly catergorises into two types.

1. Quantitative Research

2. Qualitative Research

Quantitative Research: This type of research mainly deal in

numbers, number of tools are used to gather information from

audience such as surveys, different type of media, stores audit

and etc. Quantitative research is commonly used and getting

popularity day by day because of variety of tools are available in

the market. This approach is less expensive and takes less time as

compared to Qualitative research, that the reason more companies

opting this method as marketing research method.

Qualitative Research: This method is more than dealing in

numbers, requires more expertise to perform this type of marketing

research. Types of qualitative research include focus groups and

observational studies. Focus groups gather a small number of

respondents together to discuss topics yielded by the research


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questions. A moderator leads the discussion and helps keep

discussion lively and focused around the research questions.

Hybrid Research: Organization can use both research types in

their marketing research to get more accurate


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Marketing Research-q2 Type of Research