chapter 1 textbook

Question 1

marketing

Answer 1

an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders

Question 2

Exchanging services for money→

Answer 2

two parties involved and each has the potential to deliver value to the other

Question 3

To accomplish goals

Answer 3

firms have adopted the marketing concept which requires a consumer orientation, goal orientation and a systems orientation

Question 4

Consumer orientation

Answer 4

firms strive to identify the people most likely to buy their product (target market) and to produce a good or service that will meeds the needs of the target market vs competition
Rely the info back to the firm→ without the feedback, the firm is not consumer oriented

Question 5

goal orientation

Answer 5

firm mist be consumer oreibatted only to the extent that it also accomplishes corporate goals.

Question 6

system orientation

Answer 6

creating systems to monitor the external environment and deliver the desired marketng mix to the target market

Question 7

The insightful nature of marketing research

Answer 7

Can give companies much needed insight into their customer needs and wants
Ex of porter airlines: they looked at their target market and then created a brand based on this

Question 8

The external marketing environment

Answer 8

The marketing mix must altered because of changes in the enviornment
There wil be new businesses and some will leave
Managers can control the marketing mix but they cant control elements in the external enviornment that continually mould and reshape the target market
You cant plan the future
Marketing research is important for understanding the environment → can help find new opportunities
Marketing researchers are tapping into these huge streams of data to find out what people think about their product and also of competitors
Researchers are creating profiles of persons online and using this data to target
Researchers tap online communtiws to build new products and services
50% of canadians have a social networking profile, older people are more behind

Question 9

Marketing research plays two key roles in the marketing system:

Answer 9

1) its part of the marketing intelligence feedback process so it provides decision makers with data on the effectiveness of the current marketing mix and allows for changes. 2) marketing research is the primary tool for exploring new opportunities in the marketplace. Segmentation research and new product research help identify the most lucrative opportunities for a firm.

Question 10

Marketing research defined

Answer 10

Marketing research is the planning, collection, and anal- ysis of data relevant to marketing decision-making and the communication of the results of this analysis to management.

Question 11

Marketing research can be viewed as playing three functional roles:

Answer 11

descriptive, diag- nostic, and predictive

Question 12

descriptive

Answer 12

includes gathering and presenting statements of fact.–> What are the historical sales trends in the industry? What are consumers’ attitudes and beliefs toward a product? What are consumers’ consumption habits? Such research is crucial for keeping up with consumers’ changing needs and wants.

Question 13

diagnostic

Answer 13

wherein data and/or actions are explained.

Question 14

predictive

Answer 14

how can the firm best take advantage of opportunities as they arise in the ever changing marketplace?
Ex: for consumer demand for sustainable products is this a fad or long term trend?

Question 15

The unrelenting drive for quality and customer satisfaction

Answer 15

Quality and customer satisfaction are very important
The type of Quality needs to matter to the customers or it will be a waste of effort, there needs to be a

Question 16

return on quality :

Answer 16

1) the quality being delivered is the quality desired by the target market
2) the added quality must have a positive impact on profitability

Question 17

The Paramount importance of keeping Existing Customers

Answer 17

Strong link between customer satisfaction and loyalty
Customer retention pays big dividends for firms → due to repeat sales and referrals, revenues and market share growth
The ability to retain customers is based on understanding their needs which comes from market research ex: british airways research found first class customers wanted to sleep so the adjusted their on flight food services to before take off and after they had landed

Question 18

Understanding the ever changing marketplace

Answer 18

Marketing research helps managers understand trends in the marketplace and opportunities
Internet marketing research is efficient and quick
Internet research helped Canada post corporation launch and improve its venture one initiative→ using a database of more than 300000 customers they were able to design a website and adapt its services to make it easier for businesses

Question 19

The Proactive Role of marketing research

Answer 19

Proactive management allters the marketing mix to fit newly emerging patterns in economics, social and competitive environments, whereas reactive management waits for change to have a major impact on the firm before deciding tot ake action
The marketing environment is scene as a threat when there is a reactive stance and an opportunity when the firm takes a proactive stance
Marketing research plays a key role in proactive management by allowing managers to anticipate changes in the market → and design goodes to meet those needs
A proactive manager ot only examines emerging markets but also seeks through planning to develop a long run marketing strategy for the firm → this guides the long term use of teh firms resources based on the firm’s existing and internal capabilities

Question 20

Applied research

Answer 20

Applied research is done to better understand the market , to find out what strategy failed or to reduce uncertainty

Question 21

basic research

Answer 21

Basic or pure research attempts to expand knowledge, aimed at a specific problem
Basic research is conducted to validate an existing theory or learn more about something
In the long run basic research helps understand more about the world in which we live, but does not help for the short run
Most basic research is applied by universities and applied research is undertaken by businesses
Basic research example: researchers examined how consumers deal with the trade off between protecting themselves from making poor decisions while shopping or interacting in the marketplace and trusting various info → what was found was that those who believe the world is fair and just have difficulty making decisions in the marketplace
Basic research is particularly important to high tech companies but basic research can be very long term and must focus on solving real world problems

Question 22

3 categories of marketing research studies

Answer 22

1) programmatic research:
2) selective research:
3) evaluative research:

Question 23

1) programmatic research:

Answer 23

Conducted to develop marketing options through market segmentation, market opportunity analysis, or consumer attitude and product usage studies
arises from management’s need to obtain a market over- view periodically

Question 24

2) selective research:

Answer 24

used to test decision alternatives
ex) testing concepts for new products, testing advertising copy, test marketing)
Conducted after several viable options have been identified by programmatic research
Selective research can be required at any stage of marketing process

Question 25

3) evaluative research:

Answer 25

done to assess program performance
Includes tracking advertising recall, doing organizational image studies, and examining customer attitudes on a firm’s quality of service.
Need arises when effectiveness and efficiency of marketing programs must be evaluated

Question 26

Typical programmatic research questions:

Answer 26

Has its target market changed? How?
Does the market exhibit any new segmentation opportunities?
Do some segments appear to be more likely candidates than others for the firm’s marketing efforts?
What new product or service opportunities lie in the various segments?

Question 27

Decision to conduct marketing research

Answer 27

Should not automatically call for applied marketing research
Best not to conduct research in many situations

Question 28

when not to conduct marketing research

Answer 28

Lack of resources: organization may lack the funds to do research, or they may be insufficient to implement any decision resulting from the research
Research results not useful: Some types of marketing research studies measure lifestyle and personality factors of steady and potential customers, which may or may not be of some use
Opportunity has passed: useless to do research if product is in late maturity or declining stage of its life cycle.
Decision has already been made: Research is redundant or misused to justify pre-made decisions
Managers cannot agree on what they need to know to make a decision: research should not be undertaken until objectives are specified
Decision-making information already exists: Sufficient prior knowledge makes further research unnecessary
Costs of conducting research outweigh the benefits: Willingness to acquire additional decision-making information depends on a manager’s perception of its quality, price, and timing

Question 29

Costs of conducting research outweigh the benefits: 2 determinants

Answer 29

2 important determinants: profit margin and market size
New products with large profit margins = greater potential benefits
New product opportunities in large markets = offer greater potential benefits than smaller markets