MARKETING RESEARCHStrategic Marketing

WARM-UPList the five steps in the

Market Research Process.

Define Primary & Secondary Sources

Give an Example of Each

MARKETING RESEARCH

Five step process:1. Define the problem

2. Obtain Data1. Primary 2. Secondary

3. Analyze Data

4. Recommend Solutions to the Problem

5. Apply the Results

TWO TYPES OF RESEARCH Basic Research

Done to expand the limits of knowledge Not done in relationship to a problem

Applied Research Conducted when a decision must be made about a specific problem

Example:Should McDonald’s add pasta to its menu?What price should Proctor & Gamble sell Crest Whitestrips?

SCIENTIFIC METHOD

Analysis and Interpretation of empirical evidence

(facts from observation or experimentation)

to confirm or disprove conceptions

Example: If I take an aspirin, my headache will go

away

MARKETING RESEARCH Marketing research supports Marketing Concept

The marketing concept is Not Product-Oriented Is Consumer-Oriented Focuses on long term profitability

Customer Relationship Marketing (CRM) Emphasis on maintaining long-term relationship with loyal customers

Total Quality Management (TQM) Focus is on integrating customer-driven quality throughout the organization

STAGES IN WHICH YOU DEVELOP & IMPLEMENT A MARKETING STRATEGYIdentify & evaluate opportunities

The Opportunities of a SWOT Analysis

Examples:

Mattel Toys investigates desires for play experiences

Home cooking is on the decline. Purchase of precooked home replacement meals is on the rise.

Number of investors trading stock on the Internet is growing.

STAGES IN WHICH YOU DEVELOP & IMPLEMENT A MARKETING STRATEGYAnalyze Market Segments & Select Target Markets

Cadillac investigates buyers’ demographic characteristics

MTV, monitoring demographic trends, learns the Hispanic audience is growing rapidly

Sears learns women, age 25-54 with average household income of $38,000, are core customers. Targets this market with "The Good Life at a Great Price. Guaranteed. Sears."

STAGES IN WHICH YOU DEVELOP & IMPLEMENT A MARKETING STRATEGYPlan & Implement a Marketing Mix

Price: Safeway does a competitive pricing analysis

Place: Caterpillar Tractor Co. investigates dealer service program.

Product: Oreo conducts taste test, Oreo cookie vs. Chips Ahoy

Promotion: Consumers recognizing Burger King’s “Have it your way” campaign

STAGES IN WHICH YOU DEVELOP & IMPLEMENT A MARKETING STRATEGYAnalyze Marketing Performance

Comparing Market Share from this year to last year

Did Brand Image change after new advertising? Kmart Case Study

BRAND IMAGE: CAN IT BE SAVED?

KMARTKmart is a discount chain store that has always been easily accessible in most urban areas More popular with African-American & Hispanic populations Started layaway program based on demographic being served Known for “Attention Kmart Shoppers” & Blue Light Specials

In January, 2002; Kmart filed for Chapter 11 Bankruptcy CEO Chuck Conaway cheated investors Closed more than 300 stores Laid off 34,000 workers

KMARTAttempted to redesign themselves by

Lime Green & Grey Layout Wider Aisles, Better Lighting, Signs with city name

Purchased SEARS in 2004

2006: Orange & Brown Prototype Shelves were lowered

KMART Weaknesses

Low marketing budget Low success rates in Suburban areas Negated Middle-Class demographic Seen as dirty, cluttered, & unkept

In December 2011, Kmart & Sears closed over 100 locations

A New Jersey store was selling expired medicine & baby formula

COMPARING MARKETING BUDGET

2011 2010

Walmart $622 Million $873 Million

Target $683 Million $639 Million

Kmart $215 Million $221 Million

KMART REBRAND In April, 2013 Kmart attempted to reconnect with America’s Urban Youth

Commercials 1984 Kmart Commercial “We’ve Got It Good” 1998 KMART (Rosie O’Donnel & Penny Marshall) 2001 Kmart Commercial “Blue Light Always” Ship your pants Big Gas Yo Mama

Da Rich Kidzz “My Limo” Selena Gomez Partnering with Univision on Mexican Game Show

Improv Parody “Knicker” Commercial

KMART REBRAND Examining Kmart’s Marketing Efforts

Kmarts Brand broken down by year (1985, 2000)

Define their target market

SWOT Analysis of Kmart

Can Kmart Re-Brand Themselves? Give 3 reasons supporting answer.

STAGES IN WHICH YOU DEVELOP & IMPLEMENT A MARKETING STRATEGYPerformance-Monitoring research

Research that regularly provides feedback for evaluation and control

Indicates things are or are not going as planned

Research may be required to explain why something “went wrong”

DETERMINING WHEN TO CONDUCT MARKET RESEARCH

Is Sufficient

Time Available

Yes Information already on-hand

inadequate?

Is decision of strategic or tactical important?

Does the information

value exceed the research

cost?

YesConduct

MarketingResearch

Do Not Conduct Market Research

No No No No

Time Constraint

s

Availability of Data

Nature of the

Decision

Benefits v. Costs

Yes

SURVEY MUST BE….Valid: Questions asked must measure what was intended to

Reliable: Research technique produces nearly identical results in repeated trials.

Types of questions: Open-Ended: Respondents construct response Forced-Choice: Respondents choose response from list of answers.