Unit 8 Flashcards
Define marketing research.
A function that links the consumer, customer, and public to the marketer through information - information used to define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process.
Define marketing.
Creating, communicating, and delivering goods or services to meet consumer needs and organizational objectives.
Which three areas does the collection of information via marketing research fall into?
- Market analysis
- Product research
- Consumer analysis
Define market analysis.
Creating, communicating, and delivering goods or services to meet consumer needs and organizational objectives.
Define product research.
Produces information about how people perceive product attributes.
Define consumer analysis.
The monitoring of consumer behaviour changes (tastes, preferences, lifestyles) so that marketing strategies can be adjusted accordingly.
What are the two areas of marketing research?
- Information is collected about customers, competitors, and conditions in the market
- Information collected is housed in a database where it can be reviewed and managed on an ongoing basis in order to use the information in a manner that maximizes the value of customers
Define reliability.
Refers to similar results being achieved if another research study were undertaken under similar circumstances.
Define validity.
Refers to a research procedure’s ability to actually measure what it is intended to measure.
Define decision support system (DSS).
An interactive information system that marketers can use to obtain and manipulate them in the decision-making process.
Define exploratory research.
A preliminary form of research that clarifies the nature of a problem through the use of informal analysis. This informal analysis is often referred to as the funnelling process.
Define funnelling.
The process of dividing a subject into manageable variables so that specifically directed research can be conducted
Accomplished by means of a thorough situation analysis.
Define situation analysis.
Collecting information from knowledgeable people inside and outside the organization and from secondary sources.
Define descriptive research.
Research designed to describe basic characteristics of variables.
Define casual (explanatory) research.
Research designed to identify cause-and-effect relationships among variables.
What are the steps in the market research process?
- Problem awareness
- Exploratory research
- Quantitative research
- Analyze & interpret
- Recommend & interpret
Describe the problem awareness step.
- Pinpoint challenge, issue, opportunity that needs further understanding
- Identify research objectives
Describe the exploratory research stage.
- Obtain richer information
- Identify key variables - key points, customer bases, etc
- Inform research strategy
Define secondary data.
Data that have been compiled and published for purposes other than that of solving the specific problem under investigation, yet may have some significance to its resolution.
Available from sources both internal and external to the company.
What are internal data sources?
Data sources available within the organization (eg. customer profiles, sales analysis reports, etc)
What are external data sources?
Available through published sources outside of the organization (eg. government, commercial, academia)
Define online databases.
A public information database accessible to anyone with proper communication facilities.
Define directory databases.
A commercial database that provides quick information about a company (eg. size, sales, location, and number of employees).
Define primary research.
Data collected and recorded for the first time to resolve a specific problem, usually at a high cost to the sponsoring organization. Data is specific and qualitative in nature.
Define qualitative.
Non-numerical, descriptive information. Collected from small samples in a controlled environment, the data results from questions concerned with why people behave as they do and from in-depth questioning of the participants.
Data is typically gathered from focus group interviews .
What are focus groups?
Small group of participants (usually 8 to 10) that meet with a trained moderator for a discussion.
What are online bulletin boards?
Private online forums where participants log on at own convenience and respond to questions posed by researchers (usually 15-30 participants).
What is social listening?
- Monitor social media channels for mentions of your brand (social monitoring)
- Analyze/organize online conversation and information
- -> Metrics and analytics (eg. how many likes, views did the post get)
- -> Social media sentiment (eg. what kind of emotion was expressed when sharing the post, reactions and emotional element to brand, etc)
Describe the quantitative research step.
- Refine objectives to form research question
- Identification of hypotheses (statement of predicted outcomes)
- Hypothesis should be formed from research found in exploratory research
- Collection of numerical data from larger samples using structured formats
Define research objectives.
Statements that outline what the research is to accomplish.
Define hypothesis.
Statements of predicted outcomes that are confirmed or refuted by the data collected.
Define sample.
A representative portion of an entire population used to obtain information about that population.
Define population.
A group of people with certain age, gender, or other demographic characteristics.
Define sampling.
Process through which a subset of individuals is taken from a larger population.
Define sampling frame.
A listing that can be used for reaching a population.
What are the steps for developing a representative sample?
- Define the population
- Identify the sampling frame
- Determine the type of sample
- Determine the sample size.
What are the types of sample?
- Probability sample
- Non-probability sample
Define probability sample.
A sample in which the respondents have a known or equal chance of selection and are randomly selected from across the country.
Define non-probability sample.
The respondents have an unknown chance of selection, and their being chosen is based on such factors as convenience for the researcher or the judgement of the researcher.
What is convenience sampling?
Researchers will collect data from people who are the most accessible to them.
What are some data collection methods?
- Surveys
- Observations
- Survey panels
- Experiments
Define survey research.
Data collected systematically through some form of communication with a representative sample by means of a questionnaire.
Define fixed-response questioning.
Questionnaire used for a large sample that contains predetermined questions and a choice of answers that are easily filled in by the respondent or interviewer.
Define structured survey.
Follows a planned format: screening questions at the beginning, central-issue questions (those dealing with the nature of the research) in the middle, and classification (demographic) questions at the end.
Define unstructured survey.
Gives researcher some leeway in determining how the questions are asked; questions may be of an open-ended nature.
What are some types of surveys?
In-person (interview), telephone, mail, email, online.
Define observation research.
A form of research in which the behaviour of the respondent is observed and recorded.
Define ethnographic research.
The study of human behaviour in a natural setting.
Describe a survey panel.
Large sample of respondents that voluntarily complete questionnaires on a regular basis.
What is the difference between longitudinal data collection and cross-sectional data collection?
Longitudinal –> data is collected over a long period.
Cross-sectional –> data is collected at only one point of time and then not reassessed.
Define experimental data.
Research in which one of more factors are manipulated under controlled conditions (DV), while other elements remain constant (IV), so that respondents’ reactions can be evaluated.
Define test marketing.
Placing a product for sale in one or more representative markets to observe performance under a proposed marketing plan.
What are three benefits of test marketing?
- Allows the organization to observe consumers’ reactions to the product
- Enables alternative marketing strategies to be evaluated
- Helps determine the characteristics of consumers who will buy the product when launched regionally or nationally
Define quantitative.
Collected using a structured procedure and a large sample, the data provides answers to questions concerned with what, when, who, how many, and how often. Research attempts to translate feelings, attitudes, and opinions into numbers and percentages.
Define mugging.
Fraudulent marketing under the guise of interviewing, in which sellers pretend to be conducting a marketing research interview.
Define concept test.
The presentation of a product idea in some visual form, with a description of the basic product characteristics and benefits, in order to get customers’ reactions to it.
What is the criteria for deciding which survey technique to use?
- Nature of information sought
- Cost and time
- Respondent
Define editing.
In marketing research, a stage when completed questionnaires are reviewed for consistency and completeness.
Define data transfer.
A process whereby data from a marketing research questionnaire are transferred to a computer.
Define tabulation.
Counting the various responses for each question and arriving at a frequency distribution.
Define frequency distribution.
In a survey, the number of times each answer was chosen for a question.
Define cross-tabulation.
Comparison and contrast of the answers of various subgroups or of particular subgroups and the total response group.
Describe the analyze & interpret stage.
- Statistically analyze the collected data
- Synthesize and simplify
- Address the guiding hypothesis
Define data analysis.
The evaluation, in market research, of responses on a question-by-question basis, a process that gives meaning to the data.
Define data interpretation.
Relating accumulated data to the problem under review and to the objectives and hypotheses of the research study.
Describe the recommend & interpret step.
- Prepare a report to communicate the research findings
- Include recommendations that address the marketing problem and research objectives
- Continue to monitor
Define cross-selling.
Customer campaign that includes selling related products and services.
Define up-selling.
Customer campaign that includes selling more expensive products and services.
What are the four segmentation alternatives?
- Mass marketing
- Market segmentation
- Niche marketing
- Direct marketing
Define mass marketing.
The use of one basic marketing strategy to appeal to a broad range of consumers without addressing any distinct characteristics among them.
Define market segmentation.
The division of a large market (mass market) into smaller homogeneous markets (targets) on the basis of common needs and/or similar lifestyles.
Define niche marketing.
Targeting a product line to one particular sub-segment of a segment and committing all marketing resources to the satisfaction of that sub-segment.
Define direct marketing.
A situation in which unique marketing programs are designed specifically to meet the needs and preferences of individual customers.
Define behavioural targeting.
A database-driven marketing system that tracks a consumer’s behaviour to determine his or her interests and then serves ads to that person relevant to those interests.
Define geo-targeting.
The practice of customizing an advertisement for a product or service to a specific market based on the geographic location of potential buyers.
Define location-based targeting.
An effort to integrate consumers’ location information into a marketing strategy.
Define mass customization.
The creation of systems that can produce products and personalize messages to a target audience of one.
Define brand democratization.
A situation in which the customer can interact with a brand, giving the customer some control over the marketing of a brand (as in online user-generated content).
What are high yield segments?
Groups of people who are the most receptive to thee campaign and are the most profitable because they are the most likely to purchase your product.
What are the three steps of segmentation?
- Identifying market segments
- Selecting the market segments that offer the most potential
- Positioning the product so that it appeals to the target market
What are some key trends?
- The Aging Population
- Social Responsibility
- New Household Formations
- Ethnic Diversity
Define target-market profile.
Describes the ideal customer around which the marketing strategy will be devised and delivered.
Define demographic segmentation.
The division of a large market into smaller segments based on combinations of age, gender, income occupation, education, marital status, household formation, and ethnic background.
Define psychographic segmentation.
Market segmentation based on the activities, interests, and opinions of consumers.
Define geographic segmentation.
The division of a large geographic market into smaller geographic or regional units.
Define geodemographic segmentation.
The isolation of dwelling areas through a combination of geographic and demographic information, based on the assumption that people seek out residential neighbourhoods in which to cluster with their lifestyle peers.
Define micro-marketing.
The development of marketing strategies on a regional or local basis, giving consideration to the unique needs of a small group of highly targeted customers.
Define behaviour response segmentation.
The division of buyers into groups according to their occasions for use of a product, the benefits they require in a product, the frequency with which they use the product, and their degree of brand loyalty.
Describe the occasions for use variable.
Marketers using the occasion-for-use segmentation strategy show how the product can be used on various occasions.
Describe the benefits sough variable.
Benefit segmentation is based on the premise that different consumers try to gratify different needs when they purchase a product.
Describe the usage rate variable.
- Marketers will conduct research to distinguish the characteristics of a heavy user from those of a medium or light user
- An 80/20 rule usually applies
- 80% of a product’s sales volume comes from 20% of its users (heavy users)
- Marketers try to attempt the profile of the heavy users and then attract more of them
Describe the loyalty response variable.
- The degree of brand loyalty a customer has also influences segmentation strategy
- Some customers are simply more brand loyal than others; they will not switch others
- If marketers can identify the characteristics of brand-loyal users and what motivates them to buy a particular brand, then strategies can be developed to attract users with similar characteristics and tendencies
Define positioning.
Designing and marketing a product to meet the needs of a target market, and creating the appropriate appeals to make the product stand out from the competition in the minds of customers.
What does positioning involve?
- Designing and marketing a product to meet the needs of a target market
- Creating the appropriate appeals to make the product stand out from the competition in the minds of the target market (through marketing mix activities)
What is a positioning statement?
The positioning strategy statement includes the essential benefits offered to customers and the desired image or brand personality the brand hopes to instill in the customer’s mind.
What is a positioning map?
A visual representation of the place that a product occupies within a category that is created on basis of customer perceptions (perceptual maps). The product is plotted in relation to competitors.
Define head-on positioning.
A marketing strategy in which one brand is presented as an equal or better alternative to a competing brand.
Define brand leadership positioning.
Brands that are market leaders can use their large market share to help position themselves in the minds of consumers.
Define product differentiation positioning.
Product differentiation is a strategy that focuses on the unique attributes or benefits of a product.
Define technical innovation positioning.
Technical innovation is often more important for a company as a whole than for individual products ; companies position themselves as a leading edge of technology.
Define lifestyle positioning.
- The product is positioned to “fit in” or match the lifestyle of the user, or to appeal to potential users on the basis of satisfying esteem needs
- Brand messages appeal to consumers on an emotional level and are delivered using sex, love, fear, and adventure
Define repositioning.
Changing the place a product occupies in the consumer’s mind, relative to competitive products.
What are two reasons to reposition?
- The marketing activities of a direct competitor may change
- The preferences of the target market may change
