Marketing Theory and Practice/Market Research Flashcards
Give some definitions of marketing.
AMA definition:
Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, marketers, and society at large
American Marketing Association(2007)
CIM’s Definition of Marketing
“Marketing is the management process responsible for identifying, anticipating and satisfying customer requirements profitably”
CIM (2005)
Kotler and Armstrong
“We define marketing as a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others”
Armstrong,G. and Kotler, P. (2007)
What are the core concepts of marketing?
Needs, wants and demands>Marketing offers (products, services and experiences)>Value and Satisfaction>Exchange, transactions and relationships>Markets and it returns to the beginning and continues to circle around.
Define marketing needs and wants
- Basic Needs are the things humans must have to keep them alive
- Advanced needs – social interaction self-fulfillment
- Wants are how humans would like to fulfill those needs
Discuss the Marketing Concept according to Blankson and Cheng, (2005)
“The marketing concept holds that the key to organizational success is through the determination and satisfaction of the needs, wants and aspirations of target markets
These must be pursued more effectively and efficiently than that of competitors and with the intention of achieving profitability and/or satisfying objectives.
In other words, the marketing concept states that if a business is to achieve profitability and/or satisfy its objectives, the entire organization must be oriented towards satisfying consumer needs, wants, and aspirations”
Discuss the marketing orientation according to Narver and Slater, 1990.
Market orientation is defined as “the business culture that most effectively and efficiently creates the necessary behaviors for the creation of superior value for customers” (p. 20). Three possible ways: Customer orientation competitor orientation and Interfunctional coordination.
Discuss customer orientation
Customer commitment activities Creation of customer value Understanding customer needs Measuring customer satisfaction Offering after sales service
Discuss competitor orientation
Salespeople share competitor information
Responding rapidly to competitors’ actions
Top managers discuss competitors’ strategies
Targeting opportunities for competitive advantage
Discuss Interfunctional Co-ordination
Sharing information among functions
Integrating all functions in strategy
Contribution of all functions to customer value
Sharing resources with other functions.
What are the Characteristics of Market Orientated Organisations?
More results oriented, employee oriented,
Professional, open, loosely controlled, and pragmatic
Characterised by the basic features of marketing,
Learning organisation,
Committed to marketing,
Will know about their markets (customers and competitors),
Will know about market orientation and act on it,
The better their relative quality will be, the more market orientated they are,
Good at collecting and disseminating market information
Successful launching new products and services.
Kasper 2001
How to measure marketing orientation
[1] we are committed to our customers,
[2] we create value for our customers,
[3] we understand customer needs,
[4] we are concerned with customer satisfaction,
[5] our employees share competitor information,
[6] we respond rapidly to competitors’ actions,
[7] management is concerned with competitive strategies. Heiens and Pleshko, (2011)
Discuss the links between the marketing concept and business strategy and performance and the research behind this
Positive links between marketing concept and business strategy and performance including return on assets, organizational learning and ability to rapidly respond to environmental changes, new product innovation and success. Blankson et al 2001
American Research found a link between marketing orientation and performance.
Studies in UK and Ireland market orientation and firm performance - uncertain
Define orientation
Philosophical concepts to the marketplace have guided and continue to guide organizational activities.
What are the five different concepts?
1.The Production Concept
2.The Product Concept
3.The Selling Concept
4.The Marketing Concept
5.The Societal Marketing Concept
Kotler, P.(2000)
What are the characteristics of the production concept?
Producing more, selling high volumes, controlling costs and production efficiency. E.g. Ford and Ryanair
What are the characteristics of the selling orientation?
Aggressive sales and promotion to sell whatever the organisation, wants to make or distribute. Sellers’ needs come first, and products are ‘pushed’, Ethos – if the price is low enough, customers will buy the product whether they like it or not.
Production concept - how does it create success?
Production oriented firms generally technologically proficient.
Emphasis on product development, success is achieved by producing technically advanced or high quality products, which then have to be sold in sufficient quantities and at a price that makes a satisfactory profit.
Esslemont and Lewis (1991)
What behaviours does Andreasen say in 2012 that marketing can apply to?
Start a behavior Switch a behavior Stop a behavior Not start a behavior Continue a behavior Increase a behavior Decrease a behavior
Define Market Research
The systematic gathering, recording, and analyzing of data with respect to a particular market, where market refers to a specific customer group in a specific geographic area (Marketing Power)
The gathering and analysis of data relating to market places or customers; any research which leads to more market knowledge and better-informed decision-making. (CIM)
Explain Branthwaite and Patterson, 2012’s discussion of the approaches to consumer research
Qualitative Interrogative Data Collection = Classic qualitative-focus groups, IDI’s
Qualitative Observational Data Collection = Semiotics ethnography
Quantitative Interrogative Data Collection = Classic Quantitative Surveys
Quantitative Observational Data Collection = Social Media Monitoring
What are the stages of the market research process?
Set objectives Define research Problem Assess the value of the research Construct a research proposal Specify data collection method Specify techniques of measurement Select the sample Collection of the data Analysis of results final report presenting the findings
Explain Market Research Step 1: Design the Problem
Decide what is the management decision Formulate an explicit research objective to guide the marketing research effort. Develop a series of research questions. Identify the target market and context Outline the underlying assumptions
Explain Market Research Step 2: Design Research
It depends on the objectives. It can be either secondary or primary.
What are the issues with secondary research?
May not exist in the required form Expensive Impartially Accurate current
Discuss Primary Research
Generally provides qualitative data
Qualitative data are described in terms of quality (that is, ‘informal’ or relative characteristics such as warmth and flavour)
Exploratory Research tools include Interviews, Focus Groups, Case Studies, Ethnography refers to the qualitative description of human social phenomena, based on months or years of fieldwork and Observation.
Discuss Descriptive Research
Generally provides quantitative data:
Utilizes large sample of participants as base
Cross-sectional design involves the systematic collection of quantitative information from one or more samples of respondents at one point in time
Longitudinal design tracks the responses of the same sample of respondents over time
Discuss Causal Research
Attempts to understand cause-and-effect relationships
Factors that might cause a change are independent variables while the variables that are affected are dependent variables
Experimental design allows researchers to control possible explanations for the effect
What is Step 3 of the Market Research Process?
Choose the Method for Collecting Primary Data
What are the two main methods of collecting primary data and what are some of the methods they include?
Communication Mail questionnaires Telephone interviews Face-to-face interviews Online questionnaires
Observation
Personal
Mechanical
What are the advantages and disadvantages of mail questionnaires?
Advantages
Respondents feel anonymous
Low cost
Good for ongoing research
Disadvantages
Slow return speed
Low response rates typical
Inflexible questionnaire
Length of survey is limited
What are the advantages and disadvantages of telephone interviews?
Advantages
Fast
High flexibility in questioning
Low cost
Limited interviewer bias
Disadvantages
Decreasing levels of cooperation
Limited questionnaire length
Consumers screen calls
What are the advantages and disadvantages of face-to-face interviews?
Advantages
Flexibility of questioning
Long questionnaires possible
Can help explain questions
Can use visuals
Disadvantages
High cost
Interviewer bias possible
Time requirements are high
What are the advantages and disadvantages of online questionnaires?
Advantages
Instant data collection Flexible question patterns Low cost No interviewer bias Access regardless of geographic location
Disadvantages
Unclear who is responding
No assurance of honesty
Limited questionnaire length
Limitations inherent with self-selected samples
What are the two types of observation?
Personal Observation and Mechanical Observation
Discuss data quality
Validity - extent to which the research measures what it was intended to measure
Reliability - extent to which research measurement techniques are free of errors
Representativeness - extent to which consumers in the study are similar to the target of interest
What are the two types of samples?
Probability samples
• each member of the population has an equal and known chance of being included in the sample
• allows for inferences to be made about the population
Non-probability samples
• unequal chance of being included in the sample
• limits inferences to the population
What are the types of profitability samples?
Simple random sample
• a sample chosen randomly, in which each member of the population has the same probability of being chosen.
Systematic random sample
• a sample that is selected with numerical regularity
Stratified sample
• also sometimes called proportional or quota random sampling,
• involves dividing your population into homogeneous subgroups and then taking a simple random sample in each subgroup.
What are the types of non-probability samples?
Convenience sample
• the selection of units from the population is based on easy availability and/or accessibility
• The trade-off made for ease of access to sample is the representativeness of the sample
Quota sample
• some similarity to stratified sampling
• But the selection of respondents within strata is non-random,
• left to the interviewer.
What is step 5 of the market research process?
Collect the Data - this is the implementation phase
What is involved in analysing and interpreting the data (Step 6 - Market Research Process)?
- Enter, clean, and code data
- Choose appropriate techniques for analysis
- Interpret analysis
Step 7 of the Market Research Process needs to consider the audience. Yes/No
Yes
What are the sections in the Market Research Statement?
Executive summary A description of research methods Discussion of results Limitations of study Conclusions and recommendations
What do decisions makers want from market research?
Maintains client confidentiality
Is honest
Is punctual
Is flexible
Delivers according to project specifications
Provides high quality output
Is responsive to the client’s needs
Has high quality-control standards
Is customer oriented in interactions with client
Keeps the client informed throughout the project
What are the trends in market research?
On-line surveys
On-line information – chat rooms, blogs, on-line communities
(Online) Research tools
Web 2 – users can interact with each other and change website content
Define MKIS
A computer based system developed specifically to process and provide marketing information, (Li, McLeod and Rogers, 2001).
Function of MKIS is to provide information to enhance the decision making process (Ashill and Jobber, 2002)
Discuss MKIS
Assessing Information Needs • Volume • Price • Who will be using the information and for what Data identification and acquisition Internal Data • Relatively Cheap and easy to access • May not always be accurate and up to date • May not fit with marketing objectives Market Research • Specialist Studies Market Intelligence • Information from a firm’s environment
What are the issues with MKIS?
• Timeliness of data
• Source of data
• Turing data into information
• Information overload
• Ethics and legality of information storage
• Understand the difference between Decision Support Systems and MKIS
○ Coordinated collection of data, procedures and techniques, with supporting software by which an organization gathers and interprets relevant information from business and environment and turns it into a basis for marketing decisions
