Bell Ringer

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