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Business Intelligence > UNIT 5 > Flashcards

UNIT 5 Flashcards

1
Q

A market researcher…

A

Never replaces the decision maker. It is only a source of information

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2
Q

Information

A
  • market research
  • internal factors
  • basic parameters
  • results (sales)
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3
Q

MKT Mix Strategy

A

4ps

  • product
  • place
  • price
  • promotion
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4
Q

Strategic marketing

A

Long term- final goal

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5
Q

Operational marketing

A

Short term- tools to reach the goal

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6
Q

Market studies

A

Aim to analyze the behavior of market players and to seek new opportunities

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7
Q

Positioning studies

A

They analyze what the company’s positioning is with respect to the different competitors, according to different criteria

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8
Q

Segmentation studies

A

Through the study of consumers, they offer information about homogeneous groups (segments), their characteristics and behavior. Segmentation is basic in marketing.

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9
Q

Segmentation arises when:

A

When the market is classified by crossing at least two variables.

  1. At least one is usually related to product consumption.
  2. The rest serve to characterize
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10
Q

Consumers that work in (what market?) usually apply at least one of the following segmentation criteria:

A

Consumer or service markets

  1. Geographical segmentation
  2. Demographic segmentation
  3. Psychographic segmentation
  4. Behavioral segmentation
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11
Q

Geographic variables

A

Refers to the division of the market into geographic units such as:

  • nations
  • states
  • regions
  • cities
  • towns ++

Examples:
1. Sometimes a company’s clients are concentrated in a certain geographical area

  1. Climate influence on the needs and purchasing habits of a certain geographical region (for example companies that sell ice-cream or airconditioning)
  2. Most of the national newspapers have a regional section depending on the specific place where it is sold
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12
Q

Demographic variables

A

Customer wants, preferences, and level of use are often associated with demographic variables such as:

  • Gender: for example running shoes for women
  • Age: as in the Rocco brand, which segment their products according to age of the children
  • Rent level: Jaguar cars
  • Level of education: the existing offer of master’s courses for previously graduated students
  • Family life cycle (CVF): DINKS (double income, no kids)
  • Occupation: Elite athletes
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13
Q

Psychographic segmentation

A

Deals with aspects of mind such as motives, personality or lifestyle that help to understand many elements directly related to purchase decisions.

  • Michelin attracts its customers motivated by aspects such as safety and security
  • Other brands seek customers who seek the most sporty and risky driving
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14
Q

VALS

A

One of the best known psychographic tools.

Values, Attitudes and Lifestyles

Used by many companies during the launch of their products or to choose the appropriate channel to serve as support in communication campaigns

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15
Q

Psychographic segmentation advantages

A
  • understand customer concerns by analyzing their personalities, lifestyles and social status
  • this segmentation type is important when customization of products and services is involved
  • as it provides details about factors such as lifestyles, interests, opinions etc it is much more effective than geographic or demographic segmentation
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16
Q

The VALS- three main orientations

A

Ideals: Principle-oriented individuals: decisions made for their beliefs and not for the desire for approval

Achievements: Status-oriented individuals: Guided by the actions, approval, and opinions of others

Self expression: Action-oriented individuals: Desire to participate in social or physical activities, find variety, or face risks

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17
Q

8 definitions of VALS categories

A
  1. Innovators
  2. Thinkers
  3. Believers
  4. Achievers
  5. Strivers
  6. Experiencers
  7. Makers
  8. Survivors
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18
Q

Innovators

A
  • top of the VALS framework
  • high income and high resource individuals
  • independence is important
  • their own individual taste
  • motivated by achieving finer things in life
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19
Q

Thinkers

A
  • a well educated professional
  • high resources
  • motivated by their knowledge
  • rational decision maker consumers
  • well informed about their surroundings
    likely to accept any social change because of their knowledge level
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20
Q

Believers

A
  • difference between believers and thinkers: Thinkers make their own decisions while believers are more social in nature and hence also believe other consumers
  • lower resources
    less likely to accept innovation on their own
  • best class of word of mouth consumers
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21
Q

Achievers

A
  • mainly motivated by achievements
  • want to excel at their job as well as in their family
  • more likely to purchase a brand that has shown its success over time
  • high resource consumers
  • if any brand is rising, more likely to adopt that brand faster
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22
Q

Strivers

A
  • low resource consumer group which wants to reach some achievement
  • do not have the resources to be an achiever
  • similar values as the achiever
  • if a striver can gain the necessary resources such as high income or social status he can move on to becoming an achiever
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23
Q

Experiencers

A
  • high resources but also need a mode of self expression
  • mostly young adults
  • people who want to experience being different
  • early adopters who spend heavily on food, clothing and other youthful products and services
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24
Q

Makers

A
  • also want self expression but are limited by their resources
  • more focused towards building a better family rather than going out and actually spending higher amount of money
  • making themselves into better individuals and families becomes a form of self expression
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25
Q

Survivors

A
  • the class of consumers with the least resources
  • least likely to adopt to any innovation (due to low resources)
  • not likely to change their course of action regularly - form into brand loyal customers

Example: Old age pension earners living alone- basic necessities are important and they are least likely to concentrate on anything else

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26
Q

Behavioral segmentation

A

Analyzes variables that have to do with purchasing behavior, especially with the relationship between the consumer and the company. Behavioral segmentation is the one that is most related to the needs of consumers.

Divides the market into groups based on different aspects such as:

  • The knowledge that consumers have about the product.
  • The attitude towards the brand.
  • Usage rate /Frequency of consumption.
  • Loyalty to the company/ product
  • Moment of use.
  • Desired Benefits.
  • User categories.
  • Inclination towards the purchase.
  • Attitude with the brand/product: enthusiastic, positive, indifferent, negative and hostile.
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27
Q

Studies of demand and price

A

Its objective is to find out what is the relationship between price and demand, to what extent the market is sensitive or not to this factor.

Elasticity is basic in this context. Price Elasticity is a measure of the relationship between a change in the quantity demanded of a particular good and a change in its price. Price Elasticity of Demand (PED) is a term used in economics when discussing price sensitivity. The formula for calculating price elasticity of demand is:

Price Elasticity of Demand = % change in Quantity Demanded / % Change in Price

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28
Q

Inelastic demand

A

(Ped < 1)

If the co-efficient of price elasticity of demand <1, the demand is said to be price inelastic i.e. unresponsive to a change in price.

  • following a change in price, the total revenue earned by the producing firm will depend on the PED of its product.
  • if the coefficient of PED is <1, a rise in market price (e.g. from P1 to P2) will lead to an increase in total revenue
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29
Q

Elastic demand

A

(PED > 1)

If the co-efficient of price elasticity of demand > 1, then demand is said to be price elastic i.e. highly responsive to a change in price.

  • if demand for a product is price elastic, a supplier stands to gain extra revenue if they reduce their prices.
  • the change in quantity demanded will be proportionately higher than the reduction in price.
30
Q

Perfectly inelastic demand

A

(Ped = 0)

If the co-efficient of price elasticity of demand = zero, demand is perfectly inelastic i.e. demand does not vary with a change in price.

  • a perfectly inelastic demand curve is an extreme case for it implies that consumers are willing and able to pay any price for a product. If supply falls, equilibrium market price can rise with out any contraction in the quantity demanded.
31
Q

Quality of service studies

A

They measure the most relevant parameters related to this factor for each company in particular. There are several scales to measure the quality in each sector. Each scale includes several dimensions to analyze.

32
Q

Product studies

A

Two types of tests:

  • concept test and packaging
  • product design studies
33
Q

Concept test and packaging

A

each of which aims to assess the public’s acceptance of its object of study.

34
Q

Product design studies

A

which try to find out to what extent fits consumer preferences, and how to improve it.

35
Q

Analysis of marketing communication

A

They serve to measure the impact of communications on the knowledge, positioning and purchase intention of the brand. You can pretest, before the launch of a campaign, to expect its acceptance, or posttest, to evaluate its impact.

36
Q

Investigations on the distribution channels

A

Its objective is to analyze aspects of the channel such as which is the most suitable for the distribution of a product, what is the attitude of the members of the channel, what margin can be managed, etc. Trade marketing.

37
Q

Importance of distribution channel

A
  • timely delivery of products
  • maintain stock of products
  • provides market information
  • promotion of goods
  • provide finance
  • generates employment
  • distribution of risk
38
Q

Brand value research

A

Questions are raised such as the price that consumers are willing to pay for a brand, to calculate issues related to brand equity.

39
Q

Brand value research- low value

A

Brand features/attributes

  • price
  • selection
  • ease
40
Q

Brand value research- high value

A

Brand visuals

  • logo
  • visual elements
41
Q

Brand value research- higher value

A

Brand esteem

  • personality
  • reputation
  • sales experience
42
Q

Brand value research- highest value

A

Brand merit:

  • relationship
  • brand bundle
  • customer connection
  • purpose, cause, belief
43
Q

Analysis of potential market

A

Its objective is to analyze which portion or segments of the market are susceptible to becoming customers of the company, and what characteristics they present.

Circle- fra ytterst til innerst

1- total market
2- market potential
3- sales potential
4- actual sales

44
Q

Sources of information

A

2 classifications:

  • The primary information is not still elaborated and needs to be done through fieldwork for the current research problem
  • The secondary is already available
  • Internal: it is within the company
  • External is not.
45
Q

Sources of information- use priority

A
  1. Secondary- internal
  2. Primary- internal
  3. Secondary- external, public
    4- Secondary- external, private
  4. Primary, external
46
Q

Secondary information- advantages

A
  • Low cost
  • Faster procurement
  • Some info only available by secondary
47
Q

Secondary information- disadvantages

A 
- Exact fit:
     Information
    Scales
    Thresholds (limits)
    Validity
  • Dificulty to assess the mistakes
48
Q

Market research- process

A
  1. Problem formulation
  2. Design of the research
  3. Collecting and filtering data
  4. Analysis and interpretation
  5. Conclusions and report
49
Q

Types of market research

A
  1. According to the objective to achieve:

2. According to the info obtained

50
Q

Market research- According to the objective to achieve:

A

Exploratory (first approximation):

  • prelimenary
  • subsequent

Conclusive (Take decisions):

  • descriptive
  • causal
51
Q

Market reasearch- according to the info obtained

A

Qualitative- all exploratory

  • group meetings
  • interviews
  • projective techniques

Quantitative

  • surveys (ad hoc, omnibus, panel) - descriptive
  • observation- descriptive
  • experimentation- causal
52
Q

Qualitative market research- direct methods

A

Group meetings:

  • focus groups
  • nominal group technique
  • round table and symposia
  • role playing
  • brainstorming
  • Phillips 66
53
Q

Group meetings

A

They are a technique to obtain information used in qualitative research. It is considered a direct and unstructured method.

Through this technique we try to get a group of people to exchange their opinions, perceptions, concerns, etc., on the topic to analyze. The interaction and discussion between the different participants is may generate positive effects. The information that emerges from these meetings can be very useful.

54
Q

Focus group

A

The focus group is the group technique most used in the context of market research. In this technique, a moderator meets with a small group of people (6 - 10) to discuss a topic.

The task of the moderator is to maintain a natural environment focused on the issue for which they have met. The moderator should have a script that he should try to follow.

55
Q

Delphi

A

Through this technique the opinion of several experts is tested on a specific topic.
The methodology: sending questionnaires to the experts on the topic to analyze.
The information provided by their answers is used to redo the questionnaires, which are sent back to the same experts.
This operation is repeated until the person responsible for the investigation considers that the answers are already sufficiently defined and already provide the necessary information.
In this case it is not necessary for the experts to meet physically in the same place.

56
Q

Nominal group technique (TGN)

A

The participants, prior to the discussion, anonymously write their opinion on the topic to be discussed. Later the written ideas are discussed among all the participants and the ideas are analyzed.
Each participant elaborates a classification of the ideas that have appeared according to their criteria. This information facilitates a later analysis of the information.

57
Q

Role playing

A

: Allows the participants in the experience to adopt the role of a person involved in the study. Through this interpretation individuals show their perceptions and the difficulties with which they are usually found.

58
Q

Round table and symposiums

A

In a round table a group of experts, usually of different opinion on a topic, are exposed to one or more interviewers. Through the discussion, the contribution of knowledge and the experiences of the participants, the information generated by this technique is enriched.
For the good functioning of the experience usually appears the figure of a moderator.
In the symposia several experts present their ideas or works on the same subject.

59
Q

Brainstorming

A

Participants in a brainstorming or brainstorming, are freely expressed in relation to the topic of analysis. The ideas contributed, some of them apparently far from the study, are valued and discussed by the group.
The figure of the moderator who provides the script and direction of the experience usually appears.
The conclusions reached by this method have turned out to be very interesting. For example, in the product association with certain words, terms that have been used in subsequent promotions.

60
Q

Phillips 66

A

This technique needs a slightly larger group of participants. The individuals who will participate are divided into groups of six people. Each group analyzes independently the problem to analyze, during maximum six minutes, and contributes conclusions or ideas related to the study.
Once the groups have finished, the participants in their totality analyze the ideas contributed by each one of the groups.

61
Q

In depth interviews

A

These types of interviews are conducted to a single person by an interviewer.
In general, the interview usually lasts approximately one hour.
In this type of technique, the interviewer’s work has special relevance (To get the most out of the interview, the interviewer must be an experienced person).
There are several causes why the researcher decides to conduct an in-depth interview instead of a group meeting.
Generally, in those occasions in which the group can generate a negative influence on the individual:

  • Such is the case of those investigations that deal with very sensitive issues, and when speaking in a group, sincerity could be lost.
  • Another case is found in the analysis of topics that are socially considered sensitive or controversial. Participants of any of the group techniques may not feel comfortable when treating them in public
62
Q

The projective techniques

A

Tools used in market research for collecting of information.
They are characterized because they are indirect and unstructured methods, through which one seeks to “obtain real or tangible projections, linked to subjective aspects (not visible) of individuals, such as their perceptions, beliefs, tastes, etc.”

63
Q

Types of projective techniques

A
  1. Construction techniques
  2. Complementation techniques
  3. Association techniques
  4. Expression techniques
64
Q

Construction techniques

A

The individual receives an image related to the issue under study. The individual constructs a response in the form of history, description or dialogue.

65
Q

Complementation techniques

A

The individual must complete a situation on a presented stimulus. For example, completing an unfinished phrase or an endless story

66
Q

Association techniques

A

The participant must answer the first thing that comes to mind about the stimulus that has been presented

67
Q

Expression techniques

A

With this technique participants express their feelings and attitudes. For instance: role play. Participants are asked to assume the role of another person in a certain situation previously raised.

68
Q

Exploratory usually uses:

A

Qualitative

69
Q

Conclusive usually uses:

A

Quantitative

70
Q

Market research- quantitative

A
  • Conclusive
  • Observable facts
  • Sample: Big, representative
  • Methodology: Structured, inflexible, statistics
  • Interpretation: Objective
  • Question answers: What, how much
  • Types of results: solid, extrapolated, measurable, repetable
71
Q

Market research- qualitative

A
  • Exploratory
  • Non-observable facts
  • Sample: Small, non-representative
  • Methodology: Unstructured, flexible, psychology
  • Interpretation: Subjective
  • Question answers: Why
  • Type of results: Rich, non extrapolated, non-measurable

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