Section B - Using Information To Develop The Rationale For A Marketing Campaign Flashcards
What is a market
A market is where buyers and sellers meet to exchange good and services. Each market grows because there is a want or need to be fulfilled
What are the needs and wants of a market
- needs are good and services that we require eg. Food, shelter, health
- wants are good and services that are not necessary but we have a desire or wish for eg. Phone
marketing is all about turning a want into a need
What is market intelligence
Gathering data from different sources which is analysed and evaluated to identify trends
One way to gather market intelligence is through market research
What are the purposes of researching information
- to identify target markets
- to identify the competition
- to identify size, structure and trends in the market
(Size will help determine whether it’s a mass or niche market,structure helps you decide which language/tone to use and where to advertise for your demographic, trends so that you know how when and why customers buy)
Marketing campaigns can fail without reliable research done in…
- past business performance
- current business performance
- competition
Define validity
The process of ensuring data is valid by using original sources or tracing sources back to their original point
Define subjective
Based on personal opinions and interpretations. Analyses are not possible to validate
Define objective (judgement)
A judgement which is not influenced by personal opinions or point of view, nether biased or prejudiced, and can be validated
What is primary research
Primary research involves gathering data that has not been collected before
Give examples of internal primary research data sources
- sales figures for the business’ own products
- customer data held on a central database
Give examples of external primary research methods
- questionnaires and surveys
- interviews and focus groups
- observation and trials
methods of primary research
Give pros and cons to a questionnaire
Advantages:
- Free to do
- Reach people quickly
- Respondent anonymity
- Data accuracy
- Help understand the customer
- Fast results
- Easy to do and set up
- Can make specific questions for the business
- Closed questions
Disadvantages:
- may give dishonest answers
- may be reluctant to answer sensitive questions.
- may not understand the questions or may interpret them differently
- Questionnaires may neglect emotions and other important aspects of the research topic.
- Questionnaires may not be accessible to all respondents
methods of primary research
Give pros and cons to postal surveys
Advantages:
- People can share their thoughts and opinions in the comfort of their homes
- There is no pressure on respondents.
- There is complete privacy.
Disadvantages:
- Can be costly regarding stamp prices
- Respondent needs incentive to return questionnaire
- Low response rate
Cannot control who completed questionnaire
methods of primary research
Give pros and cons to telephone interviews
Advantages:
- Cost effectiveness and ease of conducting
- Convenience and time saving
- Respondents remain more anonymous than in a personal interview
- Can be done anywhere
- Detailed answers
Disadvantages:
- No body language shown
- Respondents can hang up at any time or not answer the call
- Interviews tend to be shorter
- Distractions and background noise can affect the quality of the interview
methods of primary research
Give pros and cons to personal interviews
Advantages:
- can adapt the questions, probe for more details, and clarify any doubts.
- can observe and interpret the body language and facial expressions of the interviewee.
- can choose a suitable place and time for the interview and avoid distractions.
- can ensure that all the questions are answered and avoid missing data.
Disadvantages:
- Interviewer bias
- Reluctance of interviewee to provide confidential information
- Personal biases on the part of the interviewer can impact the evaluation process, leading to a less objective assessment of candidates
- Time-consuming
methods of primary research
Give pros and cons to focus groups/consumer groups
Advantages:
- They allow participants to interact and express their views in detail
- They help businesses understand customer preferences and improve products and services
- They provide diverse and rich data that can confirm or complement other methods
Disadvantages:
- They may not be representative of the larger population or other groups.
- Opinions may be influenced by facilitator or moderator bias, or by dominant or dishonest participants.
- They may be time consuming and costly to organize and analyze.
methods of primary research
Give pros and cons to observation
Advantages:
- Simplest method
- Obtains more accurate, reliable and objective data
- Useful to know the current behaviour
Disadvantages:
- Could overestimate or underestimate or miss some important aspects.
- Observation has little control over factors that may affect the data
- Observation is a costly and time-consuming
- requires specific instruments or devices
- Observation does not provide any opportunity to learn past or future behavior
methods of primary research
Give pros and cons to trials
Advantages:
- gathering reliable evidence more quickly
- Get feedback directly from the consumer and insights on strengths and insights
- Prior to product launch
Disadvantages:
- Opinions could be dishonest or influenced by others
- Costly as there is the cost of making the product and giving it away
What is competitive advantage
It is what sets the business apart from its competitors eg USP
Give pros and cons to primary research
Pros:
- more specific to your needs
- up to date
- flexible
Cons:
- long time to do
- expensive
- biased
Define secondary research
Research that has already been conducted
What are the internal secondary research data sources
- loyalty cards
- previous sales figures
- business data on customer
What are the external secondary research methods
- internet research
- reports
- government statistics
- trade journals
- media sources
What are the limitations of secondary research
- info may be old
- info may be biased to promote a cause
- collection methods may have been unreliable
What are trade journals
A trade magazine that targets a specific industry or trade group
internal secondary research data sources
Give advantages and disadvantages to loyalty cards
Advantages:
- boosts brand awareness
- increase in loyal customers
- more money coming in
Disadvantages:
- costs of production
internal secondary research data sources
Give advantages and disadvantages to previous sales figures
Advantages:
- can compare sales and see if you need more money
- can help predict future sales
Disadvantages:
- may not be accurate
- doesn’t take in unexpected events
- outdated
internal secondary research data sources
Give advantages and disadvantages to business data on customer
Advantages:
- helps a business tailor their target market
- can see what is popular
Disadvantages:
- customers may be lost due to data collection
external secondary research methods
Give advantages and disadvantages to internet research
Advantages:
- save money on research
- easy to access
- faster research process
- high accessibility
Disadvantages:
- may not be accurate
- Could be outdated
external secondary research methods
Give advantages and disadvantages to reports
Advantages:
- useful insight to helps with growth and management
Disadvantages:
- time consuming to make
- expensive to research
- difficult to understand
- may be biased
external secondary research methods
Give advantages and disadvantages to government statistics
Advantages:
- covers a large population
- reliable
- updated regularly
- easy and quick access
Disadvantages:
- it’s biased as the government is political
external secondary research methods
Give advantages and disadvantages to trade journals
Advantages:
- can help you improve the business
- helps you track and monitor progress
- trusted source of info
Disadvantages:
- time consuming
- quite complicated
external secondary research methods
Give advantages and disadvantages to media sources
Advantages:
- clear structure and easy to use
- good customer engagement
- free
Disadvantages:
- could be inaccurate info
- could be time consuming
- could be biased
research
What is the importance of validity
information collected must be valid so needs to be checked by using original sources or tracing sources back to their original point.
To check validity results can be tested to check if similar results would be obtained if another group containing different respondents or a different set of data points were used.
For example, would similar results be obtained if the study was done again with 50 different people?
research
What is the importance of reliability
Makes sure the method of data gathering leads to consistent results.
research
What is the importance of appropriateness
the question to ask of a research project is whether the collection of data and methods are appropriate.
Researchers would need to be certain their research activities are ethical and there is no risk of harm to anyone involved. Permission may sometimes be needed eg observation of children.
research
What is the importance of currency (think of this as current/up-to date, not money)
the data needs to be up to date and current to ensure that results are both valid and reliable. Past data is important, especially when looking at trends, but the “age’ of the data needs to be noted.
research
What is the importance of cost
Any form of research carries a cost regardless of whether any materials are required. The time it takes and any travel involved attracts a cost. For a business, the cost is not only people’s time but also the potential loss of any revenue while the research is undertaken.
types of data
What is quantitative data
this data concerns numbers which can be analysed mathematically and/or presented graphically. This data can include sales figures, market values etc.
Ways of collecting this type of data is by questionnaire and surveys. Gathering and interpreting quantitative data is a quick process.
The analysis of quantitative data can be validated and therefore produce objective results.
types of data
What is qualitative data
this data is subjective and often open-ended. It can involve interviews with customers or focus groups or invite respondents to add reasons or comments to surveys. Results usually provide a wide range of answers based on personal experience, feelings and expectations. A qualitative question might ask you why you bought a specific product and allow you to provide an open answer.
This kind of research can be used to:
> Find out how customers perceive an organisation or brand
> Understand how changes in price, or other variables, might affect consumer spending decisions
> Investigate customer preferences, interests, aspirations, tastes and other variables.
What is a “rationale”
The basic reason or explanation for doing something
What should the rationale include
Should include the focus, methods, and means for conducting the study and the outcome being sought.
What forms can data come in
- images
- observations
- audio and video recordings
- reports
- case studies
What does data type analysis involve
Involves breaking down the data into smaller and smaller particles to explore meaning and find patterns and trends to establish the headline information
What further sources may you need to satisfy the reliability or sufficiency of the data gathered in order to support the marker research and validate its results
- Government statistics
- national economic statistics
- global statistics
- academic research articles and journals
A thorough evaluation aims to…
Find holes in the research by rigorously testing the robustness of the entire study.
What methods can be used to ensure a thorough evaluation is done
- involving others and asking them to evaluate the findings
- questioning its sufficiency and accuracy
- assessing what works well and what needs improving
- questioning what the information does not tell you
- identifying improvements
What is an Extension strategy
A way in which a firm can prolong its product life cycle. They involve changing the product slightly so it has a fresh appeal to the target market or appeals to a new market.
Eg. BOGOF, new flavours, different sizes
What are the stages of the product life cycle? Draw it out and explain what happens in each stage
(Search for image)
Stages:
1. Introduction - when a new product enters the market and becomes known to consumers
2. Growth - it continues to gain popularity and generate revenue. It’s becomes more well known and trending
3. Maturity - it becomes well established in the market and there is no need for promotion due to high popularity
4. Saturation - the product reaches its max market share and experiences a slow down in sales
5. Decline - a product dissolves as a result of decreased growth and lower demand and therefore is removed from the market
What are 2 ways of extending the life cycle of a product
- Extension strategies
- Selling in a new market
