Class Notes (995,771)
CA (574,526)
Ryerson (31,992)
MKT (1,422)
MKT 100 (989)
Lecture

MKT 100 Lecture Notes - Focus Group, Trade Secret, Confidence Interval

5 Pages
136 Views
Summer 2011

Department
Marketing
Course Code
MKT 100
Professor
Paul Finlayson

This preview shows pages 1-2. Sign up to view the full 5 pages of the document.
Module 4: Understanding Buyer Behaviour
Researching Customers
private information - firm profits f/ unique info and insights it has about production techniques and trade
secrets
trade secret - insight a business has about the behaviour of customers not common knowledge (Internet) =
driver of competitive success and profitability
imp consumer research activity is track customer saftisf survey, research studies
learning about demand = market efficiency
The Typical Market Research Process
o Problem Definition/ Question to be Answered
o Research Design
Exploratory research
wants additional information (internal records, customer
complaints, financial analysis trends and discussion with
distributors and suppliers) before undertaking further research.
The entrepreneur who launched the OXO Good Grips line of
kitchen tools presented in Module 6 undertook exploratory
research. He talked to retail buyers about their satisfaction with
existing kitchen tools.
Descriptive Research
used to describe customers, either small numbers of customers in-
depth (qualitative research), or large numbers by survey research
(quantitative research). This research gathers descriptive profiles
of customers and measures customer satisfaction, studies product
use, and segments customers.
Repeated study of the same customers over time is called
longitudinal research. This is best for measuring changing demand
(changing customer preferences as discussed in Module 1).
Cause and Effect Research
Used to explore the questionDoes X cause Y?”
For example: the effects of price decreases on sales
o the effect of a customer relationship campaign on
o increasing customer profitability, or
o the effect of TV advertising campaign spending on sales
(such as presented in Module 9 Advertising.xls and next
slide)
Qualitative Research – designer research faster and better
Customer Visits
oIn B2B the customer visit needs to be arranged by the sales
representative so they lead the initiative. No going behind
the back of sales. Their commissions depend on customer
trust and goodwill.
o10 to 20 random chosen customers should be visited
including those who are leaders in adopting new
www.notesolution.com
Module 4: Understanding Buyer Behaviour
technology. 10-20 reduces an extreme atypical customer
opinion having too much influence in later decisions.
oListen to how the customer talks about the product or
service. It tells you how they think about the benefits, what
problems they have, and how to improve product features
and design. You should adopt the customers’ words and
metaphors.
oDo not treat the visit as a sales call. Do not engage in
disparaging the competition. Instead, be open to their
innovations that can be quickly imitated.
oObserve the product in use in every situation. Photograph
innovative customer adaptation of your product, package, or
service to improve its performance in a particular usage
situation. This may suggest a new design feature.
oTwo or three team members should make the visit together.
In the car or on the plane back, time spent talking while the
memory is fresh is invaluable. Shared expectations,
perceptions, and insights are best when made soon after the
customer visit. Team members will discover what they did
not notice and thus learn from each other to become better
listeners and observers.
Focus groups
most common consumer research method used today. It consists of
a group of six to 12 people who focus on a particular question or
issue in a free-wheeling discussion for about two hours.
It is used to test products, product concepts and ad campaigns.
Bank of America got theKeep the Change” name for its new
product from a focus group (see M6).
It is good to have other management in attendance as new
questions can be passed to the moderator.
If you can, conduct focus groups until no new insights surface: this
usually takes about 3-4 focus groups.
Take the concept of focus groups a step further with experts
recruited to participate in high level product development focus
groups.
oConsumer surveys
A Probability Sample
A probability sample is a sample where all respondents in the
population or segment to be studied have a known (nonzero)
chance of being chosen from the population/segment being studied.
A random sample is a probability sample where respondents are
randomly chosen from a complete list of the population. Typical
samples range in size from 400 to 1,000 participants.
www.notesolution.com

Loved by over 2.2 million students

Over 90% improved by at least one letter grade.

Leah — University of Toronto

OneClass has been such a huge help in my studies at UofT especially since I am a transfer student. OneClass is the study buddy I never had before and definitely gives me the extra push to get from a B to an A!

Leah — University of Toronto
Saarim — University of Michigan

Balancing social life With academics can be difficult, that is why I'm so glad that OneClass is out there where I can find the top notes for all of my classes. Now I can be the all-star student I want to be.

Saarim — University of Michigan
Jenna — University of Wisconsin

As a college student living on a college budget, I love how easy it is to earn gift cards just by submitting my notes.

Jenna — University of Wisconsin
Anne — University of California

OneClass has allowed me to catch up with my most difficult course! #lifesaver

Anne — University of California
Description
Module 4: Understanding Buyer Behaviour Researching Customers • private information - firm profits f/ unique info and insights it has about production techniques and trade secrets • trade secret - insight a business has about the behaviour of customers not common knowledge (Internet) = driver of competitive success and profitability • imp consumer research activity is track customer saftisf survey, research studies • learning about demand = market efficiency • The Typical Market Research Process o Problem Definition/ Question to be Answered o Research Design Exploratory research • wants additional information (internal records, customer complaints, financial analysis trends and discussion with distributors and suppliers) before undertaking further research. • The entrepreneur who launched the OXO Good Grips line of kitchen tools presented in Module 6 undertook exploratory research. He talked to retail buyers about their satisfaction with existing kitchen tools. Descriptive Research • used to describe customers, either small numbers of customers in- depth (qualitative research), or large numbers by survey research (quantitative research). This research gathers descriptive profiles of customers and measures customer satisfaction, studies product use, and segments customers. • Repeated study of the same customers over time is called longitudinal research. This is best for measuring changing demand (changing customer preferences as discussed in Module 1). Cause and Effect Research • Used to explore the question “Does X cause Y?” • For example: the effects of price decreases on sales o the effect of a customer relationship campaign on o increasing customer profitability, or o the effect of TV advertising campaign spending on sales (such as presented in Module 9 Advertising.xls and next slide) Qualitative Research – designer research faster and better • Customer Visits o In B2B the customer visit needs to be arranged by the sales representative so they lead the initiative. No going behind the back of sales. Their commissions depend on customer trust and goodwill. o 10 to 20 random chosen customers should be visited including those who are leaders in adopting new www.notesolution.com Module 4: Understanding Buyer Behaviour technology. 10-20 reduces an extreme atypical customer opinion having too much influence in later decisions. o Listen to how the customer talks about the product or service. It tells you how they think about the benefits, what problems they have, and how to improve product features and design. You should adopt the customers’ words and metaphors. o Do not treat the visit as a sales call. Do not engage in disparaging the competition. Instead, be open to their innovations that can be quickly imitated. o Observe the product in use in every situation. Photograph innovative customer adaptation of your product, package, or service to improve its performance in a particular usage situation. This may suggest a new design feature. o Two or three team members should make the visit together. In the car or on the plane back, time spent talking while the memory is fresh is invaluable. Shared expectations, perceptions, and insights are best when made soon after the customer visit. Team members will discover what they did not notice and thus learn from each other to become better listeners and observers. Focus groups • most common consumer research method used today. It consists of a group of six to 12 people who focus on a particular question or issue in a free-wheeling discussion for about two hours. • It is used to test products, product concepts and ad campaigns. • Bank of America got the “Keep the Change” name for its new product from a focus group (see M6). • It is good to have other management in attendance as new questions can be passed to the moderator. • If you can, conduct focus groups until no new insights surface: this usually takes about 3-4 focus groups. • Take the concept of focus groups a step further with experts recruited to participate in high level product development focus groups. o Consumer surveys A Probability Sample • A probability sample is a sample where all respondents in the population or segment to be studied have a known (nonzero) chance of being chosen from the population/segment being studied. • A random sample is a probability sample where respondents are randomly chosen from a complete list of the population. Typical samples range in size from 400 to 1,000 participants. www.notesolution.com Module 4: Understanding Buyer Behaviour • The primary advantage of random samples is that they greatly reduce the potential for sampling error in the results. • In addition, sampling is much more cost effective
More Less
Unlock Document

Only pages 1-2 are available for preview. Some parts have been intentionally blurred.

Unlock Document
You're Reading a Preview

Unlock to view full version

Unlock Document

You've reached the limit of 4 previews this month

Create an account for unlimited previews.

Already have an account?

Log In


OR

Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit