Unit-1 - Marketing Concepts

7/28/2019 Unit-1 - Marketing Concepts

1/109

SEMESTER - II

UNIT - I


2/109

Marketing

Definition:

Marketing is the management process that identifies,

anticipates and satisfies customer requirements

profitably

- The Chartered Institute of Marketing(CIM)

The right product, in the right place, at the right time,and at the right price

- Adcock et al

Marketing is the human activity directed at satisfying human needs and wants through an

exchange process- Kotler 1980

Marketing is a social and managerial process by which individuals and groups obtain what

they want and need through creating, offering and exchanging products of value with

others

- Kotler 1991


3/109

Marketing

Implications of marketing

Who are our existing / potential customers?

What are their current / future needs?

How can we satisfy these needs?

Can we offer a product/ service that the

customer would value?

Can we communicate with our customers?

Can we deliver a competitive product of

service?

Why should customers buy from us?


4/109

A Market Consists of

Prospective buyers willing and able to purchase the existing or potential

offering of an organization.

Focus onBuyers

Effective

Demand

Offeringrather than

product or service

Market Share


5/109

Successful marketing requires:

Profitable

Offensive (rather than defensive)

Integrated

Strategic (is future orientated)Effective (gets results)

Hugh Davidson 1972

choosing and targeting appropriate customers

positioning your offering

interacting with those customers

controlling the marketing effort

continuity of performance

The marketing concept


6/109

Core Concepts of Marketing

Product or Offering

Value and Satisfaction

Needs, Wants, and Demands

Exchange and Transactions

Relationships and Networks

Target Markets & Segmentation

Marketing Channels

Supply Chain

Competition

Marketing Environment


7/109

Simple Marketing System

Industry

(a collection

of sellers)

Market

(a collection

of Buyers)

Goods/services

Money

Communication

Information


8/109

Manufacturermarkets

Services,money

Governmentmarkets

Services,money

Services

Services,money

Taxes

Taxes,goods

Taxes,goods

Taxes,goods

Money Money

Consumermarkets

IntermediarymarketsGoods, services

Goods, services

Resources Resources

Resourcemarkets

Money Money

Structure of Flows


9/109

Types of Markets


10/109

Co-marketing (Collaborate marketing)

Co-marketing (Collaborate marketing) is a marketing practice where two companies cooperate with

separate distribution channels, sometimes including profit sharing. It is frequently confused with co-promotion.

Cross-marketing describes the practice where two individual entities companies exchange marketing channels for

mutual benefit. No new product, service or brand is created here.
http://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Companyhttp://en.wikipedia.org/wiki/Distribution_(business)http://en.wikipedia.org/wiki/Profit_(economics)http://en.wikipedia.org/wiki/Co-promotionhttp://en.wikipedia.org/wiki/Cross-marketinghttp://en.wikipedia.org/wiki/Companyhttp://en.wikipedia.org/wiki/Companyhttp://en.wikipedia.org/wiki/Cross-marketinghttp://en.wikipedia.org/wiki/Cross-marketinghttp://en.wikipedia.org/wiki/Cross-marketinghttp://en.wikipedia.org/wiki/Co-promotionhttp://en.wikipedia.org/wiki/Co-promotionhttp://en.wikipedia.org/wiki/Co-promotionhttp://en.wikipedia.org/wiki/Profit_(economics)http://en.wikipedia.org/wiki/Distribution_(business)http://en.wikipedia.org/wiki/Companyhttp://en.wikipedia.org/wiki/Marketing


11/109


12/109


13/109

MOTIVATION

QUALITY

INTERNALMARKETING

TRAINING


14/109


15/109


16/109

The Four Ps

Marketing

Mix

Product

Price Promotion

Place

Customer

Solution Customer Cost Communication

Convenience


17/109

Production Concept

Product Concept

Selling Concept

Marketing Concept

Consumers prefer products that arewidely available and inexpensive

Consumers favor products thatoffer the most quality, performance,

or innovative features

Consumers will buy products only if

the company aggressivelypromotes/sells these products

Focuses on needs/ wants of targetmarkets & delivering value

better than competitors

Company Orientations Towards the Marketplace


18/109

MarketIntegratedmarketing

Profits throughcustomer

satisfaction

Customerneeds

(b) The marketing concept

FactoryExisting

products

Selling and

promotion

Profits through

sales volume

Startingpoint Focus Means Ends

(a) The selling concept

Customer Delivered Value


19/109

Customers

Front-line people

Middle Management

Top

Management

Traditional Organization Chart


20/109

Customer-Oriented Organization Chart

Customers

Front-line people

Middle management

Top

manage-

ment


21/109

Evolving Views of Marketings Role


22/109

Marketing Functions

Producers Consumers

Financing

PricingMarketing-Information Management

Product/Service Management

Promotion

Distribution

Selling


23/109

Marketing Functions


24/109

Market-Oriented Strategic Planning

Objectives

Skills

Resources

Opportunities

Profit

and

Growth

Marketing Planning


25/109

Strategic-Planning, Implementation, and Control Process

Measuringresults

Diagnosingresults

Takingcorrective

action

ImplementationPlanning

Corporateplanning

Divisionplanning

Businessplanning

Productplanning

Organizing

Implementing

Control


26/109


27/109

The Boston Consulting Groups Growth-Share Matrix


28/109


29/109


30/109

Market Attractiveness: Competitive- Position Portfolio Classification


31/109

Market Attractiveness:

Competitive- Position Portfolio Classification


32/109

Three Intensive Growth Strategies: Ansoffs

Product/Market Expansion Grid

4. Diversification

2. Market

development

New

markets

1. Marketpenetration

Existingmarkets

Existingproducts

3. Productdevelopment

Newproducts

"Penetration is a measure of brand or category popularity. It is defined as the number of people who

buy a specific brand or a category of goods at least once in a given period, divided by the size of the

relevant market population."


33/109

Marketing management process

Analysis/Audit - where are we now?

Objectives - where do we want to be?

Strategies - which way is best?

Tactics - how do we get there? (Implementation - Getting there!)

Control - Ensuring arrival

Why is marketing planning necessary?

Systematic futuristic thinking by

management

better co-ordination of a companys

efforts

development of performance standards

for control

sharpening of objectives and policies

better prepare for sudden

developments

managers have a vivid sense of

participation

Criticisms of marketing planning

Formal plans can be quickly overtaken by

events

Elements of the plan my be kept secretfor no reason

gulf between senior managers and

implementing managers

the plan needs a sub-scheme of actions

Objectives of the marketing plan

Acts as a roadmap

assist in management control and

monitoring the implementation of

strategy informs new participants in the plan of

their role and function

to obtain resources for implementation

to stimulate thinking and make better

use of resources

h d f h


34/109

The contents and structure of the

marketing plan

The executive summary

table of contents

situational analysis and target market

marketing objectives

marketing Strategies

marketing tactics

schedules and budgets

financial data and control

Cautionary notes for effective

planning

Dont blindly rely on mathematical and

statistical calculations. Use your judgementas well

Dont ever assume that past trends can be

exploited into the future forever

if drawing conclusions from statistical data,

make sure the sample size is sufficientlylarge

Behavioural planning problems

Planning recalcitrance: resistance and non-co-operation by managers in planning

fear of uncertainty in planning: a lack of

comfort in planning activities

political interests in planning activities:resource bargaining, padding ofrequirements, and avoidance of consensus

planning avoidance: compliance rather thancommitment to planning

Standard Planning Framework

Analysis - where are we now? Objectives - where do we want to

be?

Strategies - which way is best?

Tactics - how do we ensure arrival?

Control - are we on the right track?


35/109

Marketing

Strategy

Tactical

Decisions

Implementing the

Marketing Mix

Monitoring

Results

Internal

FactorsExternal Factors

Adaptation of

strategy/tactics

The Marketing Implementation Process

Implementation


36/109

Activities to establish and build customer relationships

Need for long term relationships

UACCA (Unawareness, Awareness,

Comprehension, Conviction, Action) - expensive

in promotional terms

Build sales to existing customers

Improving service quality

Auditing the fulfilment of customer needs

Cause a cultural change to a marketing Orientation.

Relationship marketing

The consistent application of up-to-dateknowledge of individual customers toproduct and service design.

Not mass marketing. Aimed at individual. Customer retention not attraction

Long term, ongoing relationships

Regular customer contact

Spirit of trust

l li d k i


37/109

Total Quality and Marketing

Quality is what customers say it is.

J.M.Juran and TQM

zero defects Right time

continuous improvement

Statistical process control (SPC)

Just In Time (JIT)

Quality Assurance e.g ISO 9000

Managing the organisation /

stakeholder interface

External and internal relationships

Accountability of managers Marketer projects an image and style

Ethical responsibilities towardsconsumers

Social responsibility

dangerous products e.g. cigarettes

dishonest marketing and promotion

the abuse of power

the availability of information

Implementation problems

Internal problems e.g change ofmanagement

External problems e.g. changing competition

Poor planning

Poor intelligence

Poor execution


38/109

MCKINSEYS 7S FRAMEWORK


39/109


40/109

The Marketing Environment and

Competitor Analysis

1. PESTEL analysis

2. SWOT analysis

3. Five forces analysis

The Marketing Environment and Competitor Analysis


41/109

The Marketing Environment and Competitor Analysis

PESTLE stands for - Political, Economic, Sociological, Technological, Legal,

Environmental. The term PESTLE has been used regularly in the last 10 years

and its true history is difficult to establish. Various other similar acronymshave been used including ETPS, STEP, PEST, and STEEPLE (Ethical)

Environmental


42/109

li i l/l l / i l i


43/109

Political/legal / Legislation Factors

Monopolies legislation

Environmental protection laws

Taxation policy Employment laws

Government policy

Others..

Economic Factors

Inflation

Employment

Disposable income Business cycles

Energy availability and cost

Others..

Socio-Cultural factors

Demographics

Distribution of income

Social mobility

Lifestyle changes

Consumerism

Levels of education

Others..

Technological Factors

New discoveries and innovations

Speed of technology transfer Rates of obsolescence

Internet

Information technology

Others..

SWOT l i


44/109

SWOT analysis

Fi f l i


45/109

Threat of

substitutes

Potential

entrants

Threat of

entrants

Suppliers

Bargaining

power

Substitutes

Buyers

Bargaining

power

COMPETITIVE

RIVALRY

Five forces analysis


46/109

Micro & Macro Environmental Analysis


47/109

Macro-environmental Forces

World trade enablers

Economic power

Rise of trade blocs

International monetary crises

Use of barter & countertrade

Move towards market economies Global lifestyles

Opening of new markets

Emerging transnational firms

Cross-border strategic alliances Regional ethnic & religious conflict

Global branding


48/109

Demographic Environment

Worldwide Population Growth

Population Age Mix

Ethnic Markets

Household Patterns

Educational Groups

Geographical Shifts in Population

Shift from Mass Market to Micro markets

Ethnic origin has been defined as a

group of people who share a

common descent, a sense of

collective identity and usually ashared cultural heritage and tradition

(Crysdale and Bettie, 1973).


49/109

Economic Environment

Income Distribution

Subsistence economies

Raw-material-exporting economies

Industrializing economies

Industrial economies

Savings, Debt, &Credit Availability

N t l E i t


50/109

NaturalEnvironment

Higher PollutionLevels

Increased Costsof Energy

Shortage ofRaw Materials

Changing Role

of Government

Natural Environment

Issues in the Technological Environment


51/109

Accelerating Pace

of Change

Unlimited Opportunities

for Innovation

Increased

Regulation

Issues in the TechnologicalEnvironment

Varying

R & D Budgets

Issues in the Technological Environment

Political Legal Environment


52/109

Political-Legal

Environment

Increased

Legislation

Special-Interest

Groups

Political - Legal Environment


53/109

Social/Cultural Environment

Of

Organizations

Of

Nature

Of

Oneself

Of

Society

Of

the Universe

Of

OthersViews

That Express

Values

Buyer Behaviour


54/109

Buying Behavior

The decision processes and actions of people involved in buying andusing products.

Consumer Buying Behavior

The decision processes and purchasing activities of people whopurchase product for personal or household use and not for businesspurposes,

Buyer Behaviour

Age

Stage in family life cycle

Occupation

Economic circumstances Lifestyle

social influence variables

family background

reference groups

roles and status

Demographic Factors


55/109

Types of buyer behaviour

1. Complex buyer behaviour - High Involvement (e.g. PC, New House)

2. Dissonance-reducing behaviour - Anxiety after purchase.(Eg. Diamond Ring)

3. Habitual buying behaviour e.g. salt - little difference4. variety seeking behaviour - Significant brand differences e.g soap powder

1. For any new idea, there is a group ofinnovators. Innovators are defined as the first 5-

10% of the people who first adopt any given idea.

2. The next group, the early adopters are about 10-15% of us. These people are the

trend-setters.

3. The early majority (about 30% of us) wait a little longer to make our decision.

4. The late majority (another 30% of us) wait still longer to get on the band wagon.

5. The last group, the laggards, (about 20% of us) are true traditionalists.

Five Types of Buyer Behavior

The Buying Decision Process
http://clientmagnetsblog.com/buyer-behaviour.phphttp://clientmagnetsblog.com/buyer-behaviour.php


56/109

The Consumer Buying Process

Marketing Inputs

Product

Price

Promotion

Place

ConsumerPurchase Decisions

Product Choice

Location Choice

Brand Choice

Other Choices

Psychological Inputs

Culture

Attitude

Learning

Perception

Recognition of the need e.g a new PC

Choice of involvement level (time and effort justified) e.g. two week ends

Identification of alternatives e.g. Dell, Apple

Evaluation of alternatives I.e. price, customer service, software support,printer/scanner package

Decision - choice made

Action

Post-purchase behaviour : Types:1. Positive and 2. Negative Post Purchase Behaviour


57/109

MASLOWS HIERARCHY OF NEEDS

Influences on the Buying Decision Process


58/109

Influences on the Buying Decision Process

Mood of

Consumer

Purchase

Reason

Time

Dimension

Social

Surroundings

Physical

Surroundings

Situational

Influences

fl h ( d)


59/109

Influences on the Buying Decision Process (contd)

Psychological

Influences

Perception

MotivesLifestyle

Personality and

Self-ConceptLearning

Attitudes


60/109

Social Influences on the Buying Decision Process

Culture

and

Subcultures

Social

Classes

Digital

Networks

Opinion

Leaders

Reference

Groups

Family

Influences

Roles

Social

Influences

Organisational Buyer Behaviour


61/109

Organisational Buyer Behaviour

The decision-making process by which formal organisations establish the need for

purchased products and services, and identify, evaluate, and choose among alternative

brands and suppliers

- Kotler and Armstrong 1989

Characteristics of organisational buyer behaviour

Organisation purpose

Derived demand

Concentrated purchasing

Direct dealings

Specialist activities

Multiple purchase influences


62/109

Consumer Problem Solving Strategies

Consumer

Buying

Behaviors

Routinized

Response

Limited

Problem

Solving

Extended

Problem

Solving

Impulse

Buying

MARKET SEGMENTATION


63/109

MARKET SEGMENTATION

Definition

Dividing a market into distinct groups

with distinct needs, characteristics, orbehavior who might require separateproducts or marketing mixes.

Steps in Market Segmentation, Targeting,and Positioning (STP)


64/109

Steps in Segmentation


65/109

Steps in Segmentation,

Targeting, and Positioning

1. Identify Basesfor Segmenting the Market

2. Develop Profilesof Resulting Segments

3. Develop Measuresof Segment Attractiveness

4. Select TargetSegment(s)

5. Develop Positioning

for Each Target Segment

6. Develop MarketingMix for Each Target Segment Market

Positioning

MarketTargeting

Market Segmentation


66/109

Bases for Segmenting Business Markets

Bases

for Segmenting

Business

Markets

DemographicsPersonalCharacteristics

SituationalFactors

OperatingCharacteristics

PurchasingApproaches

Bases for Segmenting Consumer Markets


67/109

Bases for Segmenting Consumer Markets

Geographic

Demographic

Age, gender, family size andlife cycle, or income

Psychographic

Social class, lifestyle,or personality

Behavioral

Occasions, benefits,uses, or responses

Nations, states,regions or cities

Market Segmentation


68/109

Market Segmentation

Geographic Segmentation Variables Demographic Segmentation Variables


69/109

World Region or CountryCountry RegionCityCity orMetro SizeNeighborhoodDensityClimate

Geographical segmentationMarketing mixes are customizedgeographically

g p g

Most popular typeDemographics are closely related toneeds, wants and usage rates

AgeGenderFamily sizeFamily life cycleIncomeEthnicityOccupation

EducationReligionGenerationNationalityBehavioral Segmentation Variables

Lifestyle, social class, and personality-based segmentation

OccasionsBenefitsUser StatusUser RatesLoyalty StatusReadiness StageAttitude Toward the Product

Psychographic segmentationdivides a market into differentgroups based on social class,lifestyle, or personalitycharacteristics.

Psychographic Segmentation

Using Multiple Segmentation


70/109

Bases: Geodemographics

Bases for Segmenting International Markets


71/109

Bases for Segmenting International Markets

Political/Legal

Cultural Inter market

EconomicGeographic

International Markets

Segmenting International Markets


72/109

Geographic segmentation

Location or region

Economic factors

Population income or level of economic development

Political and legal factors

Type / stability of government, monetary regulations, amount of bureaucracy, etc.

Cultural factors

Language, religion, values, attitudes, customs, behavioral patterns

Segmenting Business Markets

Demographic segmentation

Industry, company size, location

Operating variables

Technology, usage status, customer capabilities

Purchasing approaches

Situational factors

Urgency, specific application, size of order

Personal characteristics

Buyer-seller similarity, attitudes toward risk, loyalty

Requirements for Effective Segmentation


73/109

q g

Size, purchasing power, profilesof segments can be measured.

Segments must be effectivelyreached and served.

Segments must be large orprofitable enough to serve.

Measurable

Accessible

Substantial

Differential

Actionable

Segments must respond

differently to different marketingmix elements & actions.

Must be able to attract and servethe segments.

Evaluating Market Segments


74/109

Segment Size and GrowthPotential

Sales, profitability andgrowth rates

Segment StructuralAttractiveness

Competition,

substitute products,

buyers & supplierpower, new entrants(Porters Five Forces)

Company Objectives and

Resources Core competencies

What business do wewant to be in?


M k t P f P tt


75/109

Market Preference Patterns

Levels of Market Segmentation


76/109

Targeting Segments - Overview

g


77/109

Ignores segmentation opportunities

Undifferentiated (Mass) Marketing


78/109

Differentiated (Segmented) Marketing

Targets severalsegments and designs

separate offers for

each.

Coca-Cola (Coke, Sprite,

Diet Coke, etc.)

Procter & Gamble

(Tide, Cheer, Gain,Dreft, etc.)

Toyota (Camry, Corolla,

Prius, Scion, etc.)

Ni h M k ti


79/109

Niche Marketing

Targets one or a couple small segments

Niches have very specialized interests


80/109

Tailoring products and marketing programs to suitthe tastes of specific individuals and/or locations.

Micromarketing

Benefits of


81/109

Market Segmentation

1. Identifies opportunities for new product development

2. Helps design marketing programs most effective for reaching

homogenous groups of buyers

3. Improves allocation of marketing resources

Target Marketing


82/109


Segment size and growth Segment structural attractiveness

Level of competition

Substitute products

Power of buyers Powerful suppliers

Company objectives and resources

Target Marketing Strategies

Market Targeting


83/109

g g

Choosing a Market-Coverage Strategy

CompanyResources

ProductVariability

Products Stagein the Product Life Cycle

MarketVariability

CompetitorsMarketing Strategies

Choosing a Target-

Marketing Strategy

Requires Consideration of:

Company resources The degree of product variability

Products life-cycle stage

Market variability

Competitors marketing

strategies

Market Targeting


84/109

Market TargetingEvaluating Market Segments

Segment Size and Growth Analyze sales, growth rates and expected profitability.

Segment Structural Attractiveness Consider effects of: Competitors, Availability of Substitute

Products and, the Power of Buyers & Suppliers.

Company Objectives and Resources Company skills & resources relative to the segment(s).

Look for Competitive Advantages.

Patterns of Target Market Selection:


85/109

Product x Market Matrices

Positioning


86/109

Positioning

The place the product occupies in

consumers minds relative to competing

products.

Typically defined by consumers on the

basis of important attributes.

Choosing a Positioning Strategy:

Identifying possible competitiveadvantages -- many potentialsources of differentiation exist:

Products

Services

Channels

People

Image

Positioning for Competitive

Advantage

Marketers must: Plan positions to giveproducts the greatestadvantage

Develop marketing mixesto create plannedpositions

P i i i E l


87/109

To (target segment and need)our(brand)is a

(concept)that (point-of-difference).

Positioning Example

To busy mobile professionals who need to always be in the

loop, Blackberry is a wireless connectivity solution that allows

you to stay connected to people and resources while on the go

more easily and reliably than the competing technologies.

Steps to Choosing and Implementing


88/109

Steps to Choosing and Implementing

a Positioning Strategy

Step 1. Identifying a set of possible competitiveadvantages: Competitive Differentiation.

Step 2. Selecting the right competitiveadvantage.

Step 3. Effectively communicating anddelivering the chosen position to the market.

P iti i St t


89/109

Competitive advantages Points of Parity

Points of Difference => Differentiation

Positioning results from differentiation andcompetitive advantages.

Positioning may change over time.

Positioning Strategy

Positioning for Competitive Advantage: Strategies


90/109

os o g o o pe e d a age S a eg es

Against a

Competitor

Usage

Occasions

Away from

Competitors

Product

Attributes

Product

Class

Benefits

Offered

Users

B

A

ED

CHG

F

Selecting the Right Competitive Advantages


91/109

Criteria

forDeterminingWhich

Differencesto

PromoteAffordable Superior

Profitable

Preemptive

Distinctive

Important

Communicable

Developing Competitive Differentiation


92/109

Developing Competitive Differentiation

Product Service

Personnel Image

Areas for CompetitiveDifferentiation

Positioning Strategy Process


93/109

Positioning Strategy Process

Positioning StrategyStatement

Technology and TotalProduct Roadmap

Partnerships

Total Product

Assets

(Functional) Programs

Business Model

Market Entry CustomerSegment Critical Need and

Total ProductRequirements

Company Total ProductSolutions Potential

Differentiators

Competitors Total ProductSolutions Potential

Differentiators

CompanyDifferentiator

Barriers toAdoption

MarketDrivers

Customer/End-User Problem(s)Definition

MissionStatement

Applications

Technology

Enablers Customer Segments

Critical Needs

Company Product/

Service Match

Market Entry Customer Segment

Roadmap and Market SegmentLeadership Roadmap

Market Segment

Product/MarketCategory

Market Vision

Market/Customer

Segmentation Competitive Differentiation Strategy Evidence

Positioning Both Company and Product


94/109

Positioning Both Company and Product

CompanyPositioning Strategy

Market Technology

Product Company

Product #1 Technology

Functions/Benefits


Functions/Benefits


Functions/Benefits

Positioning Errors


95/109

Under-positioning: Not positioning strongly enough.

Over-positioning: Giving buyers too narrow a picture of the product.

Muddled Positioning:

Leaving buyers with a confused image of the product.

Positioning Errors

What is MKIS?


96/109

The components of a computerised MKIS

Data Bank

MKIS

MKIS (MIS) is a set of procedures and methods for the regular, planned collection, analysis

and presentation of information for use in marketing decisions

- American Marketing Association

Data Bank

StatisticalBank

Displayunit

MarketingManager

The components of a computerised MKIS

1. Data bank - raw data e.g historical sales data, secondary data

2. Statistical bank - programmes to carry-out sales forecasts, spending projections

3. A model bank - stores marketing models e.g Ansoffs matrix, Boston Matrix

4. Display unit - VDU and keyboard

A marketing intelligence system is a set of procedures and sources used by managers to

obtain everyday information about developments in the marketing environment.


97/109

Steps to Quality Marketing Intelligence Train sales force to scan for new developments

Motivate channel members to share intelligence

Hire external experts to collect intelligence

Network externally

Utilize a customer advisory panel

Utilize government data sources

Purchase information

Sources of Competitive Information

Independent customer goods and service review forums

Distributor or sales agent feedback sites

Combination sites offering customer reviews and expert opinions

Customer complaint sites

Public blogs

Demand


98/109

Market

Demand

Company

Demand

Estimating Current Demand

1. Total Market Potential

2. Area Market Potential

3. Industry Sales

4. Market Share

Estimating Future Demand1. Survey of Buyers Intentions

2. Composite of Sales Force Opinion

3. Expert Opinion

4. Past Sales Analysis

5. Market Test Method

Marketing Research


99/109

the systematic gathering, recording and analysing of data about problems relating to the

marketing of goods and services

- AMA (American Marketing Association)

Terminology of Marketing Research

1. Primary data - collected firsthand

2. Secondary data - already exists, desk research

3. Quantitative research - statistical basis

4. Qualitative research - subjective and personal

5. Sampling - studying part of a population to learn about the whole

The Marketing Research Process

1. Set objectives

2. Define research Problem

3. Assess the value of the research

4. Construct a research proposal5. Specify data collection method

6. Specify techniques of measurement

7. Select the sample

8. Data collection

9. Analysis of results

10. Present in a final report


100/109

Good Marketing Research: Is scientific


101/109

Is creative Uses multiple methods

Realizes the interdependence of models & data

Acknowledges the cost & value of information Maintains healthy skepticism

Is ethical

Marketing Research Techniques

Interview

face-to-face

telephone

postal questionnaire

Attitude measurement

cognitive component (know/believe about an act/object)

affective component (feel about an act/object) cognitive component (behave towards an object or act)

Projective techniques

sentence completion

psychodrama (yourself as a product)

friendly Martian (what someone else might do)

Lik l (5 P i S l )

Marketing Research Techniques continues


102/109

Likert scale (5 Points Scale)

strongly agree

agree

neither agree nor disagree disagree

strongly disagree

Semantic differential scales - differences between words e.g. practical v impractical

Group discussion and focus group

Postal research questionnaires

Diary panels - sources of continuous data

In-home scanning - hand-held light pen to scan barcodes

Telephone research

Observation home audit

direct observation

In-store testing

Research Approaches


103/109

Research Approaches

Behavioral

Focus-group

Survey

Experimental

Observational

Defining the Problem & Research Objectives


104/109

Defining the Problem & Research Objectives

ExploratoryResearch

DescriptiveResearch

CausalResearch

Test cause- and-effectrelationships.

Tests hypotheses about cause-and-effect relationships.

Sheds light on problem -suggest solutions or

new ideas.

Ascertain magnitudes.

Forecasting and Demand Measurement

How can we measure


105/109

How can we measure

market demand?

Potential market

Available market Target market

Penetrated market

Estimating Future

Demand

Survey of Buyers Intentions Composite of Sales Force

Opinions

Expert Opinion

Past-Sales Analysis

Market-Test Method

India

A Vocabulary for Demand Measurement


106/109

y

Market Demand

Market Forecast

Market Potential

Company Demand

Company Sales Forecast

Company Sales Potential

Making a


107/109

Sales Forecast

1. Market potential (M)

2. Proportion of market you are Targeting (T)

3. Extent of market Coverage (C)

4. Number ofUnits expected to sell per customer during the

year (U)

5. Average Price per unit (P)

Sales Forecast is a function of:

Sales Forecast = M x T x C x U x P

Making a Sales Forecast


108/109

g

Example

Total number of potential buyers = 1 Million

Target Market (25%) = x 0.25

Market Coverage (75%) = x 0.75

Units purchased per year (20) = x 20

Average Price ($10) = x $10

Forecasted Sales = $ 37.5 Million


109/109

Documents

Unit-1 - Marketing Concepts