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Final Exam Review.pdf

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Department
Marketing
Course
MKT 100
Professor
Marla Spergel
Semester
Fall

Description
MKT100 FINAL EXAM REVIEW Fall 2012 PRODUCT LIFE CYCLE -PLC defines the stages that new products move through as they enter, get established in, and ultimately leave the marketplace and thereby offers marketers a starting point for their strategy planning  Introduction Stage o Usually starts with a single firm o Innovators are the ones to try the new offering o Initial losses due to its high start-up costs and low levels of sales revenue  Growth Stage o Growing number of product adopters, rapid growth in industry sales and increase in competitors and available product versions o Market more segmented and preferences more varied = increase of potential for new markets o Early majority consumers enter o Firms attempt to reach new consumers by studying their preferences and the goal is to ride the rising sales trend and firmly establish the firm’s brand o Industry Shakeout: firms that have not established a stronghold in the market deciding to exit  Maturity Stage o Characterized by the adoption of the product by the late majority and intense competition among firms o Marketing costs increase as the firms defend their market share & face intense competition on price o At the later phase of this stage, the market has become saturated and all potential customers have already adopted the product o Strategies for Extending the PLC  Entry into new markets or market segments  Due to highly saturated market, firms may attempt to enter new geographical markets, international markets  Simply product design change  Development of new products  Decline Stage o Firms position themselves for a niche segmentation of diehard consumers or those with special needs o Firms may completely exit the market o Few laggards enter the market  Shape of the PLC o In theory, bell-shaped with regard to sales and profits o In reality, each product has its own individual shape NEW PRODUCT ADOPTION PROCESS Product Development Process  Idea Generation -Development of viable new product ideas o Internal Research and Development  R&D departments of the firm’s own have scientists who work to solve complex problems and develop new ideas MKT100 FINAL EXAM REVIEW Fall 2012  The product development costs are quite high and new product has a good chance of being a technological or market breakthrough o Licensing  Firms buy the rights to use the technology or ideas through a licensing agreement.  Saves the high costs of in-house R&D, but the firm is banking on a solution that already exists o Brainstorming  Group works together to generate ideas  In a brainstorming session, no idea can be immediately accepted or rejected, best ideas or the combination of ideas are determined at the end of the session from the members’ votes o Competitors’ Products  Reverse Engineering: involves taking apart a competitor’s product, analyzing it, and creating an improved product that does not infringe on the competitor’s patents o Customer Input  85% of all B2B product ideas come from customers  One successful approach is to analyze lead users.  Concept Testing o The process in which a concept statement that describes a product is presented to potential buyers or users to obtain reactions o Concept: brief written description of a product or service o Concept testing helps the developer estimate the sales value, make changes to enhance the product and determine if the idea is worth further development  Product Development o Entails a process of balancing various engineering, manufacturing, marketing and economic considerations to develop a product o Prototype: first physical form or service description of a new product, still in rough or tentative form o Alpha Testing: attempt to determine whether a product will perform according to its design and whether it satisfies the need for which it was intended o Beta Testing: having potential customers examine a product prototype in a real-use setting to determine its functionality, performance, potential problems and other issues  Market Testing o Premarket Testing  Conducted before a product is brought to market to determine how many customers will try and then continue to use it  One popular example is Nielsen BASES o Test Marketing  Introduces a new product or service to a limited geographical area prior to a nation launch  Test marketing costs more and takes longer than premarket tests  Firm can study actual consumer behaviour  Many firms use BehaviourScan to improve the probability of success and it utilizes consumer panel data collected passively at the point of sale in stores  Product Launch o Requires tremendous financial resources and extensive coordination of all aspects of marketing mix o Promotion o Price o Place MKT100 FINAL EXAM REVIEW Fall 2012 o Timing  Evaluation of Results o Critical postlaunch review to determine what additional resources are needed to the marketing mix o Three interrelated factors: 1. Its satisfaction of technical requirements 2. Customer acceptance 3. Its satisfaction of the firm’s financial requirements Adoption Cycle Diffusion of Innovation: process by which the use of an innovation spreads throughout a market group over time and over various categories of adopters  Helps marketers understand the rate at which consumers are likely to adopt a new product  Helps identify potential markets  Five Groups of Purchasers o Innovators  Those buyers who want to be first to have the new product or service  Enjoy taking risks, highly knowledgeable, and are not price sensitive  Firms that invest in the latest technology to make the firm more efficient are also innovators  Innovators are crucial to the success as they help the product gain market acceptance o Early Adopters  Don’t like as much risk as innovators  Wait and purchase after careful review  Represent 13.5% of all buyers  Crucial for bringing the other three buyer categories o Early Majority  34%  New products/services can be profitable when this large group buys them  Tend to wait until the bugs are worked out  The number of competitors in the marketplace has reached its peak at this point, giving them many choices o Late Majority  Product has achieved full market potential and sales tend to level off and decline o Laggards  16%  Avoid change and rely on traditional products until they are no longer available  May never adopt a certain product or service  Factors Affecting Product Diffusion o Relative Advantage  If a product is perceived to be better than its substitutes, then the diffusion will be relatively quick o Compatibility o Observability  When products are easily observed, the benefits or uses are easily communicated which enhances the diffusion process o Complexity and Trialability  Products that are less complex are easy to try and will diffuse more quickly MKT100 FINAL EXAM REVIEW Fall 2012 AIDA A common model of the series of mental stages through which consumers move as a result of marketing communications. (Awareness leads to interest, which leads to desire, which leads to action.)  Awareness o Potential customer’s ability to recognize or recall that the brand name is a particular type of product or service o Aided recall: consumers recognize the brand when its name is presented o Top-of-mind awareness: highest level of awareness, brand has a prominent place in people’s memories that triggers a response without any thought put in  Interest o Good communication to increase interest level o Marketers ensure the ad’s message includes attributes that are of interest for the target audience  Desire o Goal: move the consumer from “I like it” to “I want it”  Action o The ultimate goal of any marketing communication  Lagged effect: delayed response to a marketing communication campaign TYPES OF COMPETITION - In a monopoly, one firm provides the product or service in a particular industry which results in a less price competition - Oligopolistic competition is when only a few firms dominate a market o Firms typically change their prices in reaction to competition to avoid upsetting a stable competitive environment o Price war occurs when two or more firms compete primarily by lowering prices - Monopolistic competition occurs when many firms sell closely related but not homogeneous products and is the most common form - Pure competition occurs when different companies sell commodity products that consumers perceive as substitutable; price set according to the laws of supply and demand ADVERTISING OBJECTIVES  Informative Advertising: communication used to create and build brand awareness, with the ultimate goal of moving the consumer through the buying cycle to purchase o Helps determine some important early stages of a PLC, when consumers have little info about the specific product o Retailers use this ad to tell consumers about an upcoming sales event or he arrival of their new merchandise  Persuasive Advertising: communication used to motivate consumers to take action o Growth and early maturity stage of the PLC; competition most intense and acceleration of the market’s acceptance of the product o In later stages of PLC this type of ad can be used to reposition an established brand by persuading to change existing perceptions of the product  Reminder Advertising: communication used to remind consumers of a product or to prompt repurchases, especially for products that have gained market acceptance and are in the maturity stage of their life cycle o Maturity stage especially for products that gained market acceptance MKT100 FINAL EXAM REVIEW Fall 2012 BRAND -Branding provides a way for a firm to differentiate its product offerings from those of its competitors and can be used to represent the name of a firm and the entire product mix, single line or a single item  Value Branding for the Customer and the Marketer  Brand facilitate purchasing -brands enable customers to differentiate one firm from another -brands are easily regonized and help consumers make decisions  Brand establishes loyalty -over time, customers learn to trust certain brands -companies can maintain great depth in their product lines  Brands protect from competition and price competition -brands with more establishments and a more loyal customer base are not threatened by competition  Brands reduce marketing costs -firms can spend relatively less on marketing itself  Brands are assets -legally protected through trademarks and copyrights -constitute a unique ownership for the firm  Brands impact market value -the value of a brand can be calculated by assessing the earning potential of the brand over the next 12 months  Brand Equity -the set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service  Brand Awareness -measures how many consumers in the market are familiar with the brand and what it stands for -marketers create brand awareness through repeated exposure of the various brand elements  Perceived Value -relationship between the product or service's benefits and its cost  Brand Associations -mental links that consumers make between a brand and its key product attributes -firms develop a personality for the brand which refers to a set of human characteristics associated with a brand, which has symbolic or self-expressive meanings for consumers  Brand Loyalty -occurs when a consumer buys the same brand's product or service repeatedly over time rather than buying from multiple suppliers within the same category -CRM (customer relationship management) provides loyal customers with rewards and points -loyal customers are less sensitive to price -marketing costs are lowered -high-level of loyalty insulates the firm from competitors Branding Strategies  Brand Ownership MKT100 FINAL EXAM REVIEW Fall 2012  Three basic strategies: manufacturer or national brands, private-label or store brands, and generic brands -Manufacturer brands: owned and managed by manufacturer. Majority of brands in Canada -Private-Label: brands developed and marketed by a retailer and available only from that retailer. Common in supermarkets, drugstores, and discount stores -Generic: a product sold without a brand name, typically in commodities markets  Naming Brands and Product Lines  Corporate or Family: the use of a firm’s own corporate name to brand all of its product lines and products  Corporate and Product Line Brands: use of a combination of family brand name and individual brand name to distinguish a firm’s products  Individual Brands o Allow a company to compete within one category  Choosing a Name 1. Descriptive and suggestive of benefits and qualities associated with the product 2. Easy to pronounce, recognize and remember 3. Be able to register the brand name as a trademark and legally protect it 4. Easy to translate into other languages (for global markets)  Brand Extension -the use of the same brand name for new products being introduced to the same or new markets -Advantages  Brand name is already well established  If the brand is known for high quality, the perception will carry over  Marketing costs are lower  When used for complementary products, a synergy exists between the two  Successful brand extensions can result in cross category trial and boost sales -Brand dilution: occurs when a brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold In order to prevent the negative consequences related to brand extensions, firms should:  Carefully evaluate the fit between the product class of the core brand and that of the extension  Carefully evaluate consumer perceptions of the attributes of the core brand and seek out similar attributes for the extension  Refrain from extending the brand name to too many products  Consider whether the brand extension will be distanced  Cobranding -practice of marketing two or more products together, on the same package or promotion  Enhances consumers’ perception of product quality  Can be a prelude to an acquisition strategy  Risks: customers of each brand can be different, brand owners cannot resolve financial disputes & firms may change their priorities  Brand Licensing -contractual arrangement between firms, whereby one firm allows another to use its brand name, logo, symbols, or characters in exchange for a negotiated fee  Licensor (firm that provides the right to use its brand) receives royalty payments from the licensee  Effective form of attracting visibility for the brand and thereby building brand equity while generating additional revenue  Risks: dilution of its brand equity through overexposure & improperly valuing MKT100 FINAL EXAM REVIEW Fall 2012 ETHICAL -Competition Bureau enforces the Competition Act -CRTC (Canadian Radio-television and Telecommunications Commission) controls advertising industry and governs broadcast media and licensing -Food and Drugs Act prohibits the advertising or selling of unsafe or misbranded foods, cosmetics and drugs -The Consumer Packaging and Labelling Act requires manufacturers, packers and distributors to disclose full info about the product  Puffery: legal exaggeration of praise, stopping just short of deception, lavished on a product  Stealth marketing: strategy used to attract consumers that employs promotional tactics which deliver a sales message in unconventional ways, often without the target knowing that the message even has a selling intent  Viral Marketing: marketing phenomenon that encourages people to pass along a marketing message to other potential customers Business ethics: refers to a branch of ethical study that examines ethical rules within a commercial context Marketing ethics: those ethical problems that are specific to the domain of marketing Ethical climate: set of values within a marketing firm, or in the marketing division of any firm, that guides decision making behaviour CSR (Corporate Social Responsibility): refers to the voluntary actions taken by a company to address the ethical, social and environmental impacts of its business operations and the concerns of its stakeholders Framework for Ethical Decision Making 1. Identify the issues 2. Gather information and identify stakeholders 3. Brainstorm and evaluate alternatives 4. Choose a course of action Integration of Ethics into Marketing Strategy  Planning Phase o Introduce ethics by simply including ethical statements in the firm’s mission statement  Implementation Phase  Control Phase o Managers must be evaluated on their actions from an ethical perspective SWOT SWOT analysis that assess both the internal environment with regard to its strengths, and weaknesses and the external environment in terms of its opportunities and threats Additionally, firms should assess CDSTEP (culture, demographics, technology, economic and politics) CHANNELS OF DISTRIBUTION Distribution Channel: institutions that transfer the ownership of and move goods from the point of production to the point of consumption Supply Chain Management: set of approaches and techniques firms employ to efficiently and effectively integrate their suppliers, manufacturers, warehouses, stores and transportation intermediaries into a seamless value chain MKT100 FINAL EXAM REVIEW Fall 2012 Manufacturer -> Wholesaler -> Retailer Logistics Management: integration of two or more activities for the purpose of planning, implementing, and controlling the efficient flow of raw materials, in-process inventory, and finished goods from the point of origins to the point of consumption  Designing Distribution Channels o Channel Structure -Direct Distribution: manufacturers dealing with consumers directly -Indirect Distribution: one or more intermediaries are involved -Multichannel Distribution: or hybrid / both direct and indirect -Customer Expectations: retailer wants to know which manufacturers its customer wants to buy o Distribution Intensity number of channel members to use at each level of the supply chain -intensive distribution: designed to get products into as many outlets as possible -exclusive distribution: strategy of granting exclusive rights to sell to one or very few retail customers so no others can sell the particular brand -selective distribution: between the intensive and exclusive distribution strategies MANAGING DISTRIBUTION CHANNELS -vertical marketing systems: supply chain in which members act as a unified system 1. administered: no common ownership and no contractual relationship but dominant chain member controls 2. contractual: independent firms at different levels of the supply chain join together through contracts to obtain economies of scale and coordination #franchising is the most common form 3. corporate: parent company has complete control and can dictate the priorities and objectives of the supply chain LOGISTICS MANAGEMENT: MAKING INFO FLOW Flow 1 (Customer to Store) Flow 2 (Store to Buyer) Flow 3 (Buyer to Manufacturer) Flow 4 (Store to Manufacturer) Flow 5 (Store to Distribution Centre) MKT100 FINAL EXAM REVIEW Fall 2012 -Data Warehouse -Electronic Data Interchange (EDI): computer to computer exchange of business documents from a retailer to a vendor and back Managing Supply Chains through Strategic Relationship strategic relationship (partnership relationship): supply chain relationship that members are commited to maintaining long term,investing in opportunities that are mutually beneficial -requirements for successful strategic relationships: mutual trust, open communication, credible commitments, common goals LOGISTICS MANAGEMENT: MAKING MERCHANDISE FLOW -Inbound Transportation: dispatcher (person who coordinates deliveries to distribution centres) is involved -Receiving and Checking: receiving is the process of recording the receipt of merchandise and checking is process of going through the goods upon receipt to ensure they arrived -Storing and Cross-Docking #Traditional: warehouse in which merchandise is unloaded from trucks and placed on racks #Cross-Docking: vendors ship merchandise prepackaged in the quantity required #Combination -Getting Merchandise Floor Ready: merchandise that's ready to be placed on the selling floor immediately -Shipping Merchandise to Stores: -Inventory Management through Just-in-Time Systems #JIT inventory system (Quick-response; QR in retail): designed to deliver less merchandise on a more frequent basis than traditional ANSOFFS MATRIX The Ansoff Growth matrix is another marketing planning tool that helps a business determine its product and market growth strategy. Ansoff’s product/market growth matrix suggests that a business’ attempts to grow depend on whether it markets new or existing products in new or existing markets. The output from the Ansoff product/market matrix is a series of suggested growth strategies which set the direction for the business strategy. These are described below: Market penetration MKT100 FINAL EXAM REVIEW Fall 2012 Market penetration is the name given to a growth strategy where the business focuses on selling existing products into existing markets. Market penetration seeks to achieve four main objectives:  Maintain or increase the market share of current products – this can be achieved by a combination of competitive pricing strategies, advertising, sales promotion and perhaps more resources dedicated to personal selling  Secure dominance of growth markets  Restructure a mature market by driving out competitors; this would require a much more aggressive promotional campaign, supported by a pricing strategy designed to make the market unattractive for competitors  Increase usage by existing customers – for example by introducing loyalty schemes A market penetration marketing strategy is very much about “business as usual”. The business is focusing on markets and products it knows well. It is likely to have good information on competitors and on customer needs. It is unlikely, therefore, that this strategy will require much investment in new market research. Market development Market development is the name given to a growth strategy where the business seeks to sell its existing products into new markets. There are many possible ways of approaching this strategy, including:  New geographical markets; for example exporting the product to a new country  New product dimensions or packaging: for example  New distribution channels (e.g. moving from selling via retail to selling using e-commerce and mail order)  Different pricing policies to attract different customers or create new market segments Market development is a more risky strategy than market penetration because of the targeting of new markets. Product development Product development is the name given to a growth strategy where a business aims to introduce new products into existing markets. This strategy may require the development of new competencies and requires the business to develop modified products which can appeal to existing markets. A strategy of product development is particularly suitable for a business where the product needs to be differentiated in order to remain competitive. A successful product development strategy places the marketing emphasis on:  Research & development and innovation  Detailed insights into customer needs (and how they change)  Being first to market MKT100 FINAL EXAM REVIEW Fall 2012 Diversification Diversification is the name given to the growth strategy where a business markets new products in new markets. This is an inherently more risk strategy because the business is moving into markets in which it has little or no experience. For a business to adopt a diversification strategy, therefore, it must have a clear idea about what it expects to gain from the strategy and an honest assessment of the risks. However, for the right balance between risk and reward, a marketing strategy of diversification can be highly rewarding. SEGMENT/TARGET/POSITIONING STRATEGIES The Segmentation-Targeting-Positioning Process  Establish Overall Strategy or Objectives  Segmentation Bases This step develops descriptions of the different segments, their needs, wants and characteristics which helps better understand the profile of the customers Geographic Segmentation  Grouped by country, region, climate or topography.  Adjustments to meet the needs of smaller geographic groups Demographic Segmentation  Easily measured, objective characteristics as age, gender, income, education, race, occupation, etc. Psychographic Segmentation  Delves into how consumers describe themselves allowing people to describe themselves by using those characteristics that help them choose how they occupy their time  Self-Values: life goals; a component of psychographics that refers to overriding desires that drive how a person lives life. (self-respect, self-fulfillment, a sense of belonging) Self-Concept: image a person has of himself or herself Lifestyles: the way a person lives life to achieve goals VALS: most widely used psychographic system owned and operated by Strategic Business Insights. Enables firms to identify target segments and the underlying motivations Behavioural Segmentation  Groups consumers based on the benefits they derive from products or services, their usage rates, their user status, and loyalty  Benefit Segmentation: looks at the benefits customers derive from products or services  Loyal Segmentation: strategy of investing in retention and loyalty initiatives to retain the firm's most profitable customers Multiple Segmentation Methods MKT100 FINAL EXAM REVIEW Fall 2012  Geodemographic Segmentation Grouping of consumers on the basis of a combination of geographic, demographic, and lifestyle characteristics PSYTE Cluster: grouping of all neighbourhoods in Canada into 60 different lifestyle clusters Useful for retailers because customers typically go to stores close to their neighbourhoods  Evaluate Segment Attractiveness Descriptive Criteria  Identifiable Determining who is within the market to meet their needs  Reachable Or Accessible through persuasive communication and product distribution  Responsive For a segmentation to be successful, the customers in the market must react similarly or positively to the firm's offering  Substantial and Profitable Measuring size and growth potential Straightforward Calculation: Segment Profitability = (segment size x segment adoption percentage x purchase behaviour x profit margin percentage) - fixed costs  Select Target Market Key factor is the marketer's ability to pursue an opportunity. Undifferentiated Segmentation Strategy: firm can use it if the product or service is perceived to provide the same benefits to everyone Differentiated Segmentation Strategy: a strategy through which a firm targets several market segments with a different offering. Helps obtain a bigger share of the market and increase the market for the products overall Concentrated (Niche) Segmentation Strategy: marketing strategy of selecting a single, primary target and focusing all energies on providing a product to fit that market's needs Micromarketing (One-to-One Marketing): extreme form of segmentation that tailors a product or service to suit an individual customer's wants or needs  Mass Customization: practice of interacting on a one-to-one basis with many people to create custom-made products or services; providing one-to-one marketing to the masses  Identify and Develop Positioning Strategy Positioning: mental picture that people have about a company and its products or services relative to competitors Positioning is what determines the consumers' preference and preference is when consumers want a company's brand and will not accept substitutes A positioning strategy is realized by communicating particular messages such as a positioning statement which expresses how a company wants to be perceived by consumers Value  Popular positioning method because the relationship of price to quality is among the most important considerations  Other value-based strategies could emphasize that consumers are offered the best product or service but may pay a premium price Product Attributes MKT100 FINAL EXAM REVIEW Fall 2012  Focuses on the attributes most important to the target market Benefits and Symbolism  Emphasizes the benefits and the psychological meaning of the brand to consumers Competition  Firms can choose to position their products or services head-to-head against a specific competitor.  Differentiation strategy by going after less competitive, smaller market niche Market Leadership  Leadership helps consumers perceive the business as setting the standards of the industry Positioning by Using Perceptual Mapping Perceptual Map: displays, in two or more dimensions, the position of products or brands in the consumer's mind Ideal Point: the position at which a particular market segment's ideal product would lie on a perceptual map Five Steps to derive a Perceptual Map 1. Determine consumers' perceptions and evaluations of the product or service in relation to competitors 2. Identify competitor's positions 3. Determine consumer preferences 4. Select the position 5. Monitor the positioning strategy Repositioning  Not an easy task because consumers' perceptions do not change readily  Major advantage is that it strengthens the brand by allowing the company to keep core customers while drawing new ones to the brand.  Brand Repositioning A strategy in which marketers change a brand's focus to target new markets or realign the brand's core emphasis with changing market preferences EXTERNAL (PEST) Social Trends 1. Greener Consumers o Green Marketing: involves a strategic effort by firms to supply custoemers with environmentally friendly merchandise o By offering environmental responsibility, green products add value 2. Marketing to Children o One big issue regards the fact that child obesity has doubled in Canada in the past 20 years 3. Privacy Concerns MKT100 FINAL EXAM REVIEW Fall 2012 4. The Time-Poor Society Technological Advances technological changes that have contributed to the improvement of the value of both products and services in the past few decades Economic Situation economic changes that affect the way consumers buy merchandise and spend money 1. Inflation refers to the persistent increase in the prices of goods and services 2. Foreign currency fluctuation changes in the value of a country’s currency relative to the currency of another country; can influence consumer spending 3. Interest Rates represent the cost of borrowing money 4. Recession period of economic downturn when the economic growth of the country is negative for at least a couple of consecutive quarters Political/Legal Environment Comprises political parties, government organizations, and legislation and laws that promote or inhibit trade and marketing activities RESEARCH Marketing Research A set of techniques and principles for systematically collecting, recording, analyzing and interpreting data that can aid decision makers involved in marketing goods, services or ideas  Helps reduce some of the uncertainty under which the marketers operate  Provides a crucial link between firms and their environments, which enables firms to be customer-oriented  Firms can anticipate and respond quickly to competitive moves  Identify emerging opportunities and new and improved ways of satisfying consumer needs and wants THE MARKETING RESEARCH PROCESS 1. Define the Research Problems and Objectives a. Three major sources of poor design i. Basing research on irrelevant research questions ii. Focusing on research questions that research cannot answer iii. Addressing research question to which the answers are already known 2. Define the Research Project a. Researchers identify the type f data needed and determine the type of research necessary to collect it i. Two purposes of identifying data MKT100 FINAL EXAM REVIEW Fall 2012  Determining the relative market share  Assessing the extent to which the firm’s market position will improve, stay the same or deteriorate b. Sources i. Secondary Data  Census data, information from trade associations, the internet, books, journals, magazine reports and newspapers  Often begins with a review of the relevant internal and external secondary data  Syndicated data: data available for a fee from commercial research firms ii. Primary Data data collected to address the specific research needs/questions currently under investigation (focus groups, in-depth interviews and surveys)  Major advantage: can be tailored to fit the research question  Disadvantage: info is more costly, takes longer  Reliability: extent to which the same result is achieved when a study is repeated under identical situations  Validity: extent to which a study measures what it is supposed to measure  Sample: segment or subset of the population that adequately represents the entire population of interest  Sampling: process of picking up a sample 3. Collect Data a. Exploratory research attempts to begin to understand the phenomenon of interest; also provides initial information when the problem lacks any clear definition; often qualitative  Projective techniques type of qualitative research in which subjects are provided a scenario and asked to express their thoughts and feelings about it  Observation an exploratory research method that entails examining purchase and consumption behaviours through personal or video camera scrutiny  Ethnography: observational method that studies people in their daily lives and activities in their homes, work and communities  In-depth interviews technique in which trained researchers ask questions, listen to and record he answers and then pose additional questions to clarify or expand on a particular issue  Provide a historical context for the phenomenon of interest especially with industry experts or experienced consumers, communicate how people really feel about a product or service at a individual level, and the results can be used to develop surveys  Relatively expensive and time-consuming MKT100 FINAL EXAM REVIEW Fall 2012  Focus groups technique in which a small group of persons comes together for an in-depth discussion about a particular topic, with the conversation guided by a trained moderator using an unstructured method of inquiry  Gather qualitative data about initial reactions to a new or existing product or service, opinions about different competitive offerings or reaction to marketing stimuli  Social media  Provide insights into what consumers are saying about the firm’s own products or the competitor’s products b. Conclusive research provides the information needed to confirm preliminary insights, which managers can use to pursue appropriate courses of action; often quantitative -Enables researchers to test their hypothesis -Hypothesis: statement or proposition predicting a particular relationship among multiple variables that can be tested through research -Techniques  Experiments type of quantitative research that systematically manipulates one or more variables to determine which variable has a casual effect on another variable  Survey systematic means of collecting information from people that generally uses a questionnaire  Most popular, more cost-effective than others  Prone to incomplete data as consumers might not answer some q’s, not recall or give answers that the researchers want  Unstructured questions and structured questions  Scanner type of quantitative research that uses data obtained from scanner readings of UPC codes at checkout counters  Panel type of quantitative research that involves collecting information from a group of consumers over time; data collected may be from a survey or a record of purchases 4. Analyze Data Data: raw numbers or other factual information of limited value Information: data that has been organized, analyzed, interpreted and converted into a useful form for decision makers -must be able to analyze and interpret the data in an ob
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