Lecture 4; The role of Marketing Research Flashcards
Key lessons from the Kraft CMO video
- It is crucial to always understand the consumers perspective. Particularly when change is happening, be that economic, environmental or social change
- Seeing things through the consumers eyes allows companies to adapt their products rapidly to align with their consumers’ needs and wants.
- Companies can get insight into their consumers perspective through many types of market research, a classic example is a focus group
What is the example of going the ‘extra mile’ Mary Beth West used in the Kraft CMO video.
- The example used was calculating the median income of their target consumers, and then going further by figuring out on average how much disposable income they have available to spend in a week
What can Kraft do with information they gathered?
- Kraft can adjust the marketing of their products and reframe the values of their brand to better suit and relate to their target consumers in a time of economic difficulty.
What is the key takeaway of the Kraft CMO video?
- By having a deep understanding of who their consumers are, what they want, why they want it, where they stand economically, and how they feel about the brand, companies can adjust their marketing approach and capitalise on the factors affecting consumer behaviour.
What are the 4 main business orientations?
- Production orientation
- Product orientation
- Sales orientation
- Market Orientation (Best for Long-Term Success)
Characteristics of Production orientation
- Focus is on production and distribution efficiency
- Own operations become obsession
Characteristics of Product orientation
- Focus is on continuous product improvement
- Ignores changing markets and environments
Characteristics of Sales orientation
- Focus in on finding and converting prospects.
- Emphasis is on transactions, not relationships
Characteristics of Market orientation
- Focus is on the customer.
- Goal is understanding the needs and wants of customers
Why is a market oriented approach important to businesses according to Liu et al (2002)
“Market orientation is significantly important in enabling firms to understand the market place and develop appropriate product and service strategies to meet customer needs, wants and requirements”
What is the need for Market Orientation?
- Consumer’s needs, preferences, demands and expectations change over time
- Technology is continually changing
- Structure of competition changes
- As such, companies MUST change.
- Market Orientation = makes change seamless and manageable.
What is the challenge for marketers?
- Understand what customers want?
- Understand why they want it?
- Understand how consumers go about choosing
- Understand where they buy?
- Attitudes
- How much they pay / are willing to pay?
What is a misinformed view of Market Research?
- Perception that it is an invasion of privacy.
Why, according to Riston (2016) is market research important to market oriented companies?
If you are market oriented, you don’t just do research, you depend on it because you know nothing. Riston (2016)
Research is formalised….
curiosity. It is poking and prying with a purpose
Define market research according to Wilson 2012
“The collection, analysis and communication of information undertaken to assist decision making in marketing
Marketing research is vital to develop….
A marketing strategy that delivers value to customers
What is the market research process?
- Identification of the problem
- Formulation of research needs/brief
3a. Selection of research agency/ provider
Or
3b. Creation of research design/choice of method
- Collection of secondary data
- Collection of primary data
- Analysis of data
- Preparation and presentation of research findings and recommendation
What are effective marketing decisions based on?
- Information on customers
*Information on other organisations / competitors
*Information on the marketing environment.
What are the two sources of information?
- Primary data
- Secondary data
What are the benefits of secondary data?
- Faster to collect
- Less costly vs primary data
What are the drawback of secondary data?
- Availability; Applicability; Accuracy
- Was collected for some other purpose
What are the benefits of primary data?
- Relevant to specific research question at hand
- More typically accurate and up to date
- Allows researchers to control the study’s focus and depth tailoring methodology to the precise needs of the research.
What are the drawbacks of primary data?
- Expensive
- Time consuming
- Collection can be complex, requiring specialized skills and resources
- Risk of bias
- Data collection process could influence responses of participants.
- Researchers own preconceptions can affect the interpretation of data
