Market Research & Marketing Final

8/3/2019 Market Research & Marketing Final

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Market Research&

MarketingPresented by

Priyanka Jana

Parthasarathy


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ContentsO Introduction

O Quality in the marketing function of leading organizationsO Customer satisfaction versus customer loyaltyO Field intelligenceO Customer behaviour conceptsO Market researchtools and techniquesO

American customer satisfaction indexO Competitive evaluation by field studiesO Linking customer satisfaction results to customer loyalty analysis

and to processes

O Market research for new and modified productsO Marketing and quality-related activities

O Quality improvement in marketingO Quality measurement in marketingO Benchmarking for quality in marketingO Case study of HATHAIAMMAN Textiles


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IntroductionO Marketing:- It is a term which defines the two subjects

one who wish to buy the product & one who wish to

sell the product.

O Quality related issues associated with the marketingfunction is divided into 2 parts:-

O Market research for quality

O Quality activities with in themarketing function


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Quality in marketing function of leading

organizationTwo frameworks are helpful-O 1. StrategicThe concept of strategic quality planning apply to the

marketing function. This diagram focuses on the strategy ofcustomer-driven marketing and quality and the sales customer.

O 2. Tactical-We can identify the steps the marketing function musttake to improve customer satisfaction. The steps are:

O Understand customer requirements.O Indentify Marketings products and processes.O Match customer requirement to marketings products and processes.O Eliminate ineffective products and processes.O Improve the remaining processesO Add new marketing processes as requiredO Review the processes for each new productO Improve the customer buying processO Involve employees in marketing quality


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Customer satisfaction versus customerloyalty

Customer loyalty

1. What customers do-buying decisions.

2.Customer expects to buy primarily from one or

two suppliers in the future

3. Company identifies key customers and delights

them.

4. Company measures satisfaction with all aspects

of interaction with key customers and also their

intention to repurchase.

5.Company also analyzes and learns the reasons for

lost customer

6. Company continuously adds value by creating

new products based evolving needs of key

customers.

Customer Satisfaction

1. What customer sayopinion about a

product.

2.Customer expects to buy from several

suppliers in future

3. Company aims to satisfy a broad spectrumof customers

4. Company measures satisfaction primarily

with the product for spectrum of customers.

5. Company measures satisfaction primarily

for the current customer.

6. Company emphasizes staying competitive

on quality for a spectrum of customers.


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Customer satisfaction versus customerloyalty

O Level of satisfaction for customer loyalty:-Satisfaction still result in a significant loss of newsales.

O Economic Worth of a Loyal Customer:-Thesales revenue from a loyal customer measuredover the period of repeat purchases can bedramatic


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Variation of Deflection Rates

Depends upon NPV


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Spreadsheet


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Relationship between Loyalty &

Satisfaction


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Field Intelligence

Concept of field intelligence:-The term field intelligence will be the label for allinformation on product use.

Sources of Field Intelligence Information:-To develop and market its products, an organization

requires information about quality in the marketplace.


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Sources of Field Intelligence

O Dissatisfied customersCustomer who silently switch to a competitor's

Example : changing one net wok to another network

O

NoncustomersInformation on the needs and attitude of people who are not

customerExample : Insurance policy awareness among customer

O Product dissatisfaction beyond the warrantyperiod

The warranty period is passed , the feedback ofinformation from customer is stopped , thus the company lacksinformation about the product.


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Analysis of Available Field Intelligence

O Decline in Sales

It is by join effort among marketing ,quality &other department to draw a conclusion

O Field ComplaintsAnalyzing information on customer complaints

O Salespersons Reports

This report makes changes in the products


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O Data from Customers1. Information from customers consists not only of

complaints but can include other information on quality

2. These data systems become a gold mine of informationfor the manufacturers of the equipment.

O Government ReportsGovernments are increasingly involved in

product evaluation, mainly intheir capacity as regulators.example : reporting on tests conducted to evaluate the safety of

automotive vehicles


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O The InternetThe wide variety of information that

provides another input on industry intelligence

O Sale of Spare Parts

This report is used to identify quality of theproduct

O Reasons for Incomplete UseThe data are not in a form useful to

product development and other functions.


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Planning for Field Intelligence

O Formulate the problem

O Determine the research design

O Design the data collection methods and forms

O Design the sample and collect the data

O Analyse and interpret the data

O Prepare the research report


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Customer behaviour conceptsO Customer Needs:-

Physiological needs, eg:-safety, social, ego &self-fulfillment

Psychological needs, eg:- achievement, order& autonomy

Useful to distinguish between stated needs &real needs.

O Customer Expectations:-

anticipated characteristics

performance of the goods or service

O Customer Satisfaction:-

degree to which the customer believesthatthe expectations are met or exceeded by thebenefits received


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Customer behaviour concepts

O Customer Perception:-

impression made by the product.perception occurs after a customer selects,

organizes, and interprets information on theproduct.

O Spectrum of Customer:-A customer who is affected by theproduct or process.

3 categories of customers:-1. External customers:- Both current & potential

2. Internal customers

3. Suppliers as customers


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Market ResearchTools and TechniquesO Telephone Calls to Customers:-The customers are called &

asked for impression on the quality of the item the purchase.Eg:-a hospital calls a sample of discharged patients & asks for opinions aboutthe stay in the hospital.

O Visits to Individual Customers :-These visits are not made in

responses to complains but are designed to learn aboutcustomer experience with the product.

Eg:- a manufacturer of car wax held discussions with customer to learn howcustomers evaluated quality of wax.

O Arrangements with Individual Customers:- Establishing aspecial arrangement with a customer in a simple & effectiveway to obtain information.

Eg:-a electronics manufacturer does this with some customers in each of severalindustries.


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Market ResearchTools and Techniques

O Focus groups:-To better understand customer perceptions ofits products, a food company sponsors meeting of smallgroups of customers to discuss product requirements.

Eg:-

O Mail Surveys:- A questionnaire is developed listing variousattributes of the product. Space is provided for other comments& suggestions.

Eg:- a bank uses a questionnaire to probe 20 attributes of serviceby asking customers about the relative importance of theattributes & the degree of satisfaction.


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Competitive Evaluations by field

studiesO The ultimate evaluation of quality is made

by user under the conditions of the market

place.

O These evaluation aim to discover theusers viewpoints on fitness for use,& also

to provide a comparison to competitors.


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American customer satisfaction index

O

ACSI is a national indicator of customer evaluations of goodsand services.

O The American Customer Satisfaction Index (ACSI) is aneconomic indicator that measures the satisfaction of consumersacross the U.S.economy.

O ACSI Score calculation:

((X1-1)*W1 + (X2-1)*W2 + (X3-1)*W3)/9*100

Where,

The 0-100 ACSI score is calculated with the following formula, using thearithmetic mean for each question from the N total responses for thatcompany (X1, X2, X3), along with the standardized and normalized partialleast squares factor loading (or weight) for each question as calculatedwithin the ACSI structural equation model (W1, W2, W3)
http://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Economic_systemhttp://en.wikipedia.org/wiki/Economic_systemhttp://en.wikipedia.org/wiki/United_States


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American customer satisfaction index

O Basic models for ACSI:-

O Perceived quality

O Customer expectations

O Perceived valueO Customer satisfaction

O Customer complaints

O Customer retention


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Linking customer satisfaction results tocustomer loyalty analysis

O Ask about Repurchase Intention:-The bottom linesatisfaction measure of customer satisfaction is the extend ofrepeat purchases.

O Track Retention and Loyalty information:- Track & disputeinformation on customer retention & customer loyalty.

O Assure Understanding of results:-Assure that marketresearch results are understood & acted upon by line

managers in product development , operations & other areas.

O Present Results for action:-Present the results in a formatthat stimulates action . Graphing the market research resultscan be helpful.


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Linking customer satisfaction results to

customer loyalty analysis

O Link Results to processes : Link the satisfaction results tooperational processes or to specific activities.

O Analyse Complaints:-Use complaints as an indicator ofpotential customer defections.

O Analyse Competitive studies:-Analyse Competitive studieson quality to identify differences in satisfaction that are likely

to result in customer defections.

O Determine the Resources for Defections:-Conductcustomer research to determine the reasons for defections


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Market Research For New And ModifiedProducts

O Definition:-The need of Market Research is to discovermarket opportunities for new products, and link marketresearch results to new product development.

Steps in the marketplace :

O Identify user needs and quantify user views:-understanding needs of the customer requires and also analysingthe present use of the product.

O Analyse the present use of the product:- collecting and

analysing all avalaible information on current Product usageExample:-Goodyear has developed a smart tire whichcontains a microchip that collects and analyzes air pressuredata.


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Market Research For New And ModifiedProducts

O Analyse the total system of use:-documenting all of thesteps, analysing them, and identifying opportunities for newproduct development.

Example:-construction of new houses

O Discover market opportunities for new products:-Theopportunities for improvement span the full range of customeruse from initial receipt through operation and maintenance.

O Link market research results to new productdevelopment:-In-depth market research results provide anessential input to new product development (NPD).


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Quality activities within the Marketing Function

O Quality in sales activities :Customer RelationshipProcess(CRP):-Every business has a process for working withcustomers, i.e., a customer-relationship process (CRP). Mostorganizations never define or analyse that process, but someare using quality principles and tools to define, study, and

document their CRPs.

O Advertising of Quality:-Customer satisfaction is the result ofthe comparison between customer expectations and theperformance delivered.

O Objective Evidence. Advertising based on objective productand quality data is widely used for industrial products and, forconsumer products.


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Quality activities within the

Marketing FunctionO Warranty : Industrial Products:- A warranty is a form of

assurance that products are fit for use or, if defective, that thecustomer will receive some extent of compensation.

O Warranty : Consumer Products:- Consumer productwarranties are either full or limited. The term full warrantyrefers to the consumers rights, not to the portion of thephysical product that is covered by the warranty, i.e., it doesnot have to cover the entire product.

O Role of Marketing Function during the Launching of New

Products:- Even with superior field intelligence and productdevelopment, the final test of the new product can be madeonly in the marketplace. Before mass producing anddistributing the product on a nationwide basis, manycompanies use the concept of a test market.


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Marketing and Quality-Related Activities

Marketing activity Quality-related activity

Launching new products Conducting a test market to identify

product weaknesses and weaknesses in

the marketing plan.

Labeling Ensuring that products conform to label

Claims

Advertising Ensuring that label information is

accurate and complete

identifying the product features that will

persuade customers to purchase a

product

Assistance to customers Presenting quality-related data to help

in product selection customers evaluate alternative products

Assistance to merchants Providing merchants with quality-related

information for use by salespeople.

Preparation of sales contact Defining product requirements on

performance, other technical

requirements, and level of quality

Defining requirements on execution of acontract plan, submission of specified

documentation during contact.

Defining warranty provisions.

Defining incentive provisions on quality

and reliability.

Order entry and filling Applying quality improvement concepts

to reduce lead time or reduce errors.


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Quality improvement in marketing

The marketing function has opportunitiesfor identifying and acting upon chronic quality-relatedproblems within marketing. Improvement of the cyclein an individual company should start with charting thedetailed process steps and applying appropriate

quality improvement tools.

Quality measurement in marketingAs in other applications of quality

measurement, the measurements should have acustomer focus, provide for both evaluation ofperformance and feedback for self-control, and includeearly, concurrent, and lagging indicators ofperformance.


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Benchmarking for quality in

marketingIdentical questionnaires are sent to

ones own customer and to customers of

competitors. Data are gathered for variousservice processes (e.g., billing, installation)and the best rating for each becomes thebenchmark for that process.


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Company ProfileHATHAIAMMAN TEXTILES

1. Manufacturing products

2. Marketing status of the company3. Over take of fabrics4. Role in 20025. Techniques of the company6. Market research7. Conclusion


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Product PortfolioO Garment produced : briefs

O Fabric Type:160 gsm single jersey

O Brand Name : feather

O Fabric design : jacquard stripes

O Fabric content:80% cotton/20% polyester


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Manufacturing PortfolioO In the year 1995 , the company

manufactured briefs with jacquard designwhich was first of its kind in tirupur

O The fabric was designed from theCAMBOR machine which was importedfrom United Kingdom


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Initial Market Set-upO Response was appreciated

O Could not invest on machinery , hence thefabric was supplied to Crystal , a leadingunderwear brand.

O Crystal had good Marketing techniquesand invested on the Machinery for bulkproduction


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Reasons For FailureO No proper investment on marketing

O Good demand but no supply

O No Proper Retailing

O Cost was high

O Targeted all set of people from lower , middle andUpper class people


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ComebackO A comeback with a new product on the

year 2002.

O The product was launched based on theprocess of Bench Marking with JOCKEYas the main competitor.

O Targeted new set of audiences


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MARKET STRATEGYO The finishing method for the fabric was

given for such a soft feel

O They targeted people only of the UpperMiddle class and Middle Class

O The worked upon a strategy , such that

the manufactured product was similar toJockey but less expensive


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Analysing.How????

O A questionnaire was prepared such that

the audience could give time forcomparison.

O The company wanted to target theaudience , who think the question IS

JOCKEY WORTH?


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Elementary QuestionsO Why you are buying jokey ?

O Being Indian why didn't you buy Indian goods?

O Are you sure jockey is doing Anti Microbial Finish?

O Will you buy the garment which is similar to jockeywith low price?


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Final Datum

Parameters Feather Jockey

Brand

Value 60% 40%

Nationality 45% 55%

Quality 10% 90%

Price 50% 50%


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Whole Sale DealersO The product was launched with the

following retailers

1.RENGARITHI ENTERPRISES-TIRUPUR

2.WILLIKONS TRADING-CHENNAI

3.JOHN & CO LTD-BANGALORE


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End ResultO Found a huge demand in the product

O Sales Increased by 6%

O Audiences preferred FEATHER instead ofJOCKEY.

O Good Customer Response.


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ReferencesO Jurans Quality handbook-5th edition


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Market Research & Marketing Final

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