Transcript Marketing Research

UNIT REVISION:
tips and guidance
for the exam
Lecture 11
Karen Knibbs
Marketing Practice – U14210
Learning objectives
By the end of this session students should be able to:-
Understand the format of the exam
 Reminder of key learning points
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Revision tips!
Identify sources of further help /
information for revision
Date: Wednesday 18th May
16:00-17:30 – be there early!
2
Exam format
Choose 2 essay questions
from a choice of 5
questions
 1 ½ hours
 Exam mark accounts for
60% of the final mark for
the unit as a whole


3
+ 40% from assessed
presentations
Get more marks by:
• Write answer plans
in notes first
• Apply any relevant
theory/models
• Use as many
examples from
companies to
illustrate your answer
as much as possible
What we’ve covered this
semester…
4
New Definition of Marketing?
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“The strategic business function that
creates value by stimulating, facilitating
and fulfilling customer demand. It does
this by building brands, nurturing
innovation, developing relationships,
creating good customer service and
communicating benefits. By operating
customer-centrically, marketing brings
positive return on investment, satisfies
shareholders and stakeholders from
business and the community, and
contributes to positive behavioural
change and a sustainable business
future.’” Charles (2007)
 New elements of
“definition”
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Creating value
Building brands
Nurturing innovation
Developing relationships
Good customer service
Communicating benefits
ROI and shareholder
value
Stakeholders
Sustainability
Broad Areas of Change &
Developments
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Marketing now not a management function
Expansion of marketing into new areas – e.g. ecommerce, social media, mobile apps, NFP, SME
Increasing complexity of marketing roles
Attitudes towards marketing
Ethics, sustainability , consumerism , CSR and social
aspects
• But some areas do not appear to be covered by the suggested
new definition:
 Services
 Technology
 Globalisation
MR definition summary
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Market Research aims to describe and
analyse markets (size, structure, growth etc)
Strictly speaking, Marketing Research is
broader than Market Research
Marketing Research covers a much broader
range of topics - customers, products,
competitors, channels, suppliers etc
Current marketing situation or
AUDIT
Should include:
 Market situation
 Competitive situation
 Macro environment situation
• (PESTLE)
Product situation
 Price situation
 Promotion situation
 Place (distribution) situation
Internal
External
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Internal
&
External
Situation Audit
External
Factors
Macro Environment
Political
Economic
Social/Cultural
Technological
Legal
Environmental
(CSR/Green/Ethics)
Micro Environment
Competitors
Suppliers
Distributors
Customers/Market
Trends
Internal
Factors
Position
Financial Situation
Market Position
Operations
Marketing Research
Products
Pricing
Selling and Distribution
Advertising and Sales
Promotion
Capability
Organizational
Structure
Management and
Workforce
Capability for Change
Balanced Scorecard
10
Kaplan & Norton, (1992)
Customer Orientation and CRM
 Move to customer orientation has lead to a need to
understand customer’s needs better
 Improvements in technology have driven
organisations’ ability to gain and hold more
information about consumers
 Combined together, these have lead to the growth of
Customer Relationship Management (CRM)
Role of CRM
 To identify those customers that are most
valuable to the organisation
 To segment the organisation’s customers in the most
useful way, e.g., by demographics, needs, value
 To retain the customers that are most valuable to the
organisation
How CRM is Carried Out
 Relationships are based on (among other things)
knowledge of the other party, in this case the
customer
 For organisation this means building and applying a
picture of your customers
 Generally this means using direct marketing
 Also known as;
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Database marketing
Direct and database marketing
Data driven marketing
Downside of CRM
 Building a database is not always worthwhile, if;
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The product is a once in a lifetime or very long term purchase,
e.g. house
Where there is little loyalty shown to the product
Where the unit sale is very low, e.g., Heinz at Home
Where the cost of gathering data is too high
 Can be difficult to get everyone to be customer centred
 Not all customers want a relationship with organisations
 Sometimes assumptions are false, e.g., sometimes loyal
 customers get more expensive to serve as they get more
demanding
Global information
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 Business globalisation is increasing the
demand for accurate local and regional
information on the new markets to be
entered.
 Research needs to cover everything from
cultural issues to consumer behaviour and
competitive activity.
Pros and Cons of Using
Technology
Entry & Substitution Barriers
Reduced:
•Less need for physical assets
•More difficult to protect adv.
•New entrants in many industries
•Easier substitution
Suppliers
New
Entrants
Industry
Rivalry
Supplier Power Reduced:
•Raises bargaining power over
suppliers
•Wider information available
•Internet procurement gives equal
market access
Rivalry Increased:
•Reduced differentiation
•Increased price competition
•Wider geographic market
•Lower variable costs hence more
discounting
Substitutes
Buyers
Buyer Power Increased:
•Wider information available
•Reduces switching costs
•Bargaining power shifts to end
users
•Powerful channels eliminated
Porter (2001)
Technology and Marketing
Technology has affected marketing in a
number of ways. For example;
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Products
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Increasing speed, acceptance and
expectation of innovation
Promotion
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Increasing media fragmentation
Increased opportunities for information
capture and manipulation
Technology and Marketing
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Place
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New distribution channels
Price
New technology becomes
cheaper and more accessible,
both B2C and B2B
 Use of technology allows prices
of various offerings to be
decreased
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Brand Management
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A brand “consists of any name, design,
style, words, or symbols, singly or in
combination, that
distinguish one
product from another in the eyes
of
the customer.” (Brassington & Pettitt, 2006, P.301)
Needs to be something that can’t easily
be copied by competitors
This serves as a sensory stimuli, a cue
for the audience to attach to their
experiences of products
Brassington & Pettitt (2006)
Brand Management Terms
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Trade Mark
 A brand name symbol or logo protected by law for
the owners
sole use
 Trade Marks Act 1994 allows registration of
smells, sounds, product shapes and packaging
 Includes Coca-Cola bottle, Toblerone
Directline insurance Advert
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Brand Mark
 The elements of visual identity made up of design
and
symbols, not words
 Also protectable by law
 E.g., Lloyds TSB black horse, Apple’s apple
Brassington & Pettitt (2006)
Branding Strategy
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Brand extension
 Using an established brand to introduce a new
product
 E.g., Mars ice cream, easyHotel
Sub-brand
 A type of brand extension linking a new brand with
an existing brand
 E.g., Diet Coke
Parent brand
 A brand that produces a brand extension
Family brand
 A parent brand with a number of extensions
Kotler & Keller, (2006)
Branding Strategy
Brand extensions can be divided into two broad
types;
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(Product) line extension
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Use parent brand to brand a new product aimed at a
new
market segment within the product category
already served by parent brand, such as through
different flavours, etc..,
(Product) category extension
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Parent brand is used to enter a different product
category than the one already served
Honda Impossible Dream
Kotler & Keller (2006)
Rationale for planning
to develop systematic, long-term thinking
 to create an organised approach
 to develop specificity & consistency
 to get agreement from colleagues & support
from non-marketers
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• common goals and mutual benefits
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to identify sources of competitive advantage
The Strategic Marketing Planning
Process
Adapted from Morgan (1991), cited in Baines et al, p317
Problems with planning
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Companies become obsessed with the process or
technique rather than the actual content and delivery of
the plan!!
Unreliable or insufficient market research data can make
plans flawed from beginning!
 New companies
• too busy?
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Small companies
• not important/ no skills/ restrictive?
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Mature companies
• Unnecessary / cumbersome?
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Fast changing markets
• not useful / responsive?
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However all organisations should plan!
Influences Shaping Organisational
Buying Behaviour
Baines, Fill & Page, (2008)
Characteristics of
organisational markets (from Principles)
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Fewer buyers
Larger buyers
Closer suppliercustomer
relationships
Geographically
concentrated buyers
Derived demand
Inelastic demand
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Fluctuating demand
Professional purchasing
Several buying
influences
Direct purchasing
Reciprocity
Leasing / Contractual
Agreements
Summary of Differences
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Consumers often:
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Businesses often:
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Purchase goods and
services alone, which meet
individual or family needs
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Buy on impulse or switch
supplier with minimal
processes
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Experience minor irritation if
supply fails
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Accept the stated price
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Purchase goods and
services, as part of a team, to
meet specific business needs
Use formalised, lengthy
purchasing policies and
processes
Find switching supplier
difficult
Experience major problems if
supply fails
Negotiate on price
Further reading suggestions:
All chapters from core texts as per
unit handbook
 Additional recommended reading as
per unit handbook
 Previous lectures (files on victory)
 Further reading suggestions as per
previous lectures.
 Self-test section of student website
accompanying the core textbook.
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