Marketing PPT

Benchmarking

• Comparing the quality of the organization’s goods, services, or processes with high-performing competitors as a part of an effort to address Total Quality Management

Degree of Centralization

• Centralized Organizations– Authority is concentrated at the top level– Very little delegation to lower levels

• Decentralized Organizations– Decision making authority is delegated as far

down the chain of command as possible

Organizing Marketing Activities

• Organization– Centralized– Decentralized

• Structure– Function– Product– Region – Type of Customer

The Marketing Control Process

• Establishing performance standards, evaluating actual performance by comparing it with standards and reducing the differences between desired & actual performance1. Establishment of performance standards2. Evaluation of actual performance relative to

established standards3. Corrective action, if necessary

Chapter 3

The Marketing Environment

The Marketing Environment

• Environmental Scanning– The process of collecting information about forces

in the marketing environment• Environmental Analysis – The process of assessing and interpreting the

information gathered through environmental scanning

– How you deal with the information collected during the

Environmental Forces

• Competitive • Political• Technological• Sociocultural• Legal & Regulatory• Economic

Competitive Forces

• Most firms have competition– Brand (Intra-Type): Firms that market products with similar

features & benefits to the same customers at similar prices– Product (Intra-Type): Firms that compete in the same

product class but market products with different features, benefits & prices

– Generic (Inter-Type): Firms that provide very different products that solve the same problem or satisfy the same basic customer need

– Total Budget Competitors: Firms that compete for the limited financial resources of the same customer

Selected Characteristics of Competitive Structures

• Chart

Economic Forces

• The Business Cycle: A pattern of economic fluctuations that has four stages– Prosperity– Recession– Depression– Recovery

The Business Cycle

Buying Power & Income

• Buying Power: Resources such as money, goods, and services, that can be traded in exchange

• Income: the amount of money received through wages, rents, investments, pensions, and subsidy payments

• Disposable income: after-tax income• Discretionary Income: Disposable income

available for spending and saving after an individual has purchased the basic necessities

Political Forces

• The book muddles political and legal forces• Enactment of legislation• Legal decisions interpreted by courts through

civil & criminal cases• Influence of regulatory agencies• Marketers– Adjust to conditions– Influence the process through contributions and

lobbying

Marketing Research & Information Systems

Chapter 5

Marketing Research

• The systematic design, collection, interpretation, and reporting of information to help marketers solve specific marketing problems or take advantage of marketing opportunities

Benefits of Marketing Research

• Facilitates strategic planning• Assesses opportunities/threats• Ascertains potential for success• Helps determine feasibility of a strategy• Improves marketer’s ability to make decisions

Question

• How important is marketing research to a firm’s success?

• Do you think it is worth it to pay an outside organization to help?

The Marketing Research Process

1. Locating and defining

issues or problems

2. Designing the research

project

3. Collecting data

4. Interpreting

research finding

5. Reporting research findings

Step 1: Locating & Defining Problems or Research Issues

• Focus on uncovering the nature and boundaries of a situation– The first sign of a problem is a departure from

normal or expected results (for example, via the CONTROL mechanism in marketing strategy)

• Define the problem• Research will often be in-depth

Step 2: Designing the Research Project

• Research Design– An overall plan for obtaining the info needed to

address a research problem or issue• Hypothesis– An informed guess or assumption about a certain

problem or set of circumstances– Accepted or rejected hypotheses act as conclusion

for the research effort

Types of Research

• Exploratory Research – Conducted to gather more information about a

problem or to make a tentative hypothesis more specific • How are consumers’ car buying habits changing?

• Conclusive Research– Designed to verify insights through objective

procedures and to help marketers in making decisions• What percentage of consumers will consider an electric car

purchase?

Continued…

• Descriptive Research– Used to clarify the characteristics of certain phenomena to solve a

particular problem• Demands prior knowledge• Assumes problem is clearly defined• May require statistical analysis

– How are consumers gathering information to assist in car buying?• Experimental Research

– Research that allows marketers to make casual inferences about relationships

– Provides strong evidence of cause & effect– Need a dependent variable and independent variable(s) in order to

set-up research project

Reliability and Validity

• Reliability – A condition existing when a research technique

produces almost identical results in repeated trails• Validity– A condition existing when a research method

measures what it is supposed to measure

Step 3: Collecting Data

• Primary Data– Is observed, recorded, or collected directly from

respondents– Is collected to address a specific problem that

cannot be answered by secondary data alone• Secondary Data– Is compiled both inside and outside the organization– Is for some purpose other than the current

investigation

Methods of Collecting Primary Data

• Population – All the elements, units, or individuals of interest to

researchers for a specific study• Sample– A limited number of units chosen to represent the

characteristics of the population• Sampling– The process of selecting representative units from

a total population