MGM Exam 2 Study Guide
MGM Exam 2 Study Guide 301
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This 7 page Study Guide was uploaded by Alex on Sunday April 3, 2016. The Study Guide belongs to 301 at University at Buffalo taught by Dr. Dick in Spring 2016. Since its upload, it has received 212 views. For similar materials see Marketing in Business, management at University at Buffalo.
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Date Created: 04/03/16
MGM Exam 2 Study Guide Uses for Marketing Research: o Environmental Scanning – understanding the different environment of the market (micro, macro, etc.) o Demand Forecasting – How much to produce to satisfy demand o Segmentation – knowing how to advertise to a wide variety of audience o Market Tracking – E.g.: IRI; uses consumer panels to monitor purchases. See how often products are purchased (sales inc./dec.) o New Product Testing – 50% of all new products fail test to see consumer thoughts, the more test = greater chance for success. o Ad. Pre-Testing – machines that track eye contact (old way), new way is done using a laptop o Product Positioning – where the product stands from the perspective of the consumer (market segment) o Test Marketing – more test, more chance for success. Can test any aspect of product. Five Step Approach: o Define the Problem: research is no good without a defined problem. Find out why there’s an issue because there can be so many causes need to be specific o Develop the Research Plan: Formulation (surveys, focus groups, respondents, etc. o Collect Relevant Information o Develop Findings/Recommendations: develop solutions/suggestions through data analysis; different causes show different results o Evaluate Results/Take Action: Implementation new approaches Marketing Information System Classification: integrated decision support system Specific data learned from outside organization Data specifically learned inside organization Extra data learned outside organization Extra data learned inside organization External Internal r a n o r e a S i P Types of External Primary Research: o Exploratory: more open-minded Observation Depth Interviews (more expensive) Focus Groups o Descriptive: Observation: Personal Automated Survey: Mail Phone Personal Internet Critical Factors: Population, Sample, Response Rate, Representativeness, & Error (Bias) o Casual: Experiments: isolate variables Lab Testing Field (Test Marketing): Product Formulation, Advertising Campaign, Pricing, & Packaging Key Concepts: Manipulation – manipulate independent variable & measure effect on dependent variable Control – why sales may have changed STP Marketing: forms the basis of how we market today o Segmentation – breaking customers up into groups based upon characteristics/traits/qualifications Segments – a group of customers, existing and potential, with common needs, values, and responsiveness to marketing variables (pick out those more important/significant to mission) o Targeting – pick segments/groups to focus on o Positioning – target market; how to make us standout to the target market Market Segmentation – Market place with many different people, and you try to find patterns or groups of similar people Segmentation Criteria: o Measurability – finding a way to test the sample(s) o Reachability – how to get the message across to the targeted segment(s) Self Selection – Variety of products for demographic E.g. – Sports Illustrated; primarily for those into sports, but find advertisements for other products (such as cars/cameras) that the segment may have interest in Selective Targeting – People interested in particular products E.g. – Canon Camera catalog; only people seriously into photography are looking at that o Profitability – which segment would create a larger profit than any other? o Distinctiveness Across – relevant distinctions according to the segments – must be important to them o Similarity Within – segments/groups should have a similarity/common denominator o Differential Response – people need to have different responses/opinions otherwise no reason to create segments Differential Response to Marketing Variables: o Price Elasticity – is the segment responsive to price changes or not? Inelastic – price does not respond proportionally Elastic – price responds, but may not always be as much as anticipated o Concept of differential response applies to ALL controllable marketing variables (4 P’s: Price, Product, Promotion, Place) Measurability: General Specific Objective Demographic/Socio- Past Purchases Economic Status (SES) Subjective Activities, Interests, Benefits Sought Opinions (AIO) Demographic/SES: gender, age, income, occupation, ethnicity, & region o Not the best test, but is the easiest to obtain o Indexing = (% in Designated Market Areas (DMA) ÷ % in USA) X 100% Part-over-whole National Avg. = 100% Product Usage: o Product Class (Heavy Half) – top/bottom half of groups by ‘x’% buy products (class) o 80/20 Rule – 80% of business profit comes from 20% of households (big buyers/customers) o Brand Loyalty Benefits Sought – segment on the basis of what benefits are important o What the customer is looking for when buying a product Usage Situation (Occasion-Based Benefit Segmentation): o E.g. – Excedrin Migraine v. Excedrin PM; One is meant for migraines, while the other is meant to assist in sleeping while relieving pain o E.g. – Athletic Shoes; there are those for running, those for basketball, tennis, etc. Targeting (4 strategies): o Mass Marketing – No segmentation really, the market is a mesh; everybody is looked at the same o Concentration/”niche” Marketing – segment the population, choose 1 segment and serve their needs very well (E.g. – Rolex; only for the wealthy – there is no cheap Rolex) o Multi-Segment Marketing – selecting a few segments (E.g. – Canon; expensive cameras for photographers & those for people who just want pictures) o Mass Customization – mass produce, but customize for individuals (E.g. – Nike, Dell, M&Ms) o Other Considerations in Targeting Segments include: expected size/growth, competition, majority fallacy, cost, & compatibility Market Fallacy – always go after the biggest segment (usually isn’t the best approach because a lot of bigger competition will more likely than not beat you) “Blindly pursuing the largest segment” Compatibility – doesn’t alienate other segments Product Positioning: “the location a brand occupies in a consumer’s mind (e.g., a perceptual map) relative competitors” o Perceptual Map – shows how customers view your brand (go to notes from previous lecture) o Points of Parity: “features/benefits deemed necessary by consumers for a brand to be viable entry in the product category” E.g. – to be a lawn mower, it must cut grass o Points of Difference: “unique (desirable) brand features/benefits that differentiate it from other competitors in the product category” E.g. – Apple; has iMessage Approaches to Product Positioning: o Product Feature – what is involved in a product o Product Benefit – what you expect from the product o User Category – determine types of users o Other Brand – how they compare to competition o Product Category – pick market section for product (E.g. – 7Up Soda example from class) o Specific Use – make a product for a particular situation Product Strategy: o Three Levels of Product: Core – the way you think about a product, the central function of a product (a lawn mower cuts grass) Expected – what’s expected of product (reliability, warranty, price, customer service, etc.); tangible/intangible benefits Augmented – competitive/how to get to the top by either out-doing the competition or offer more than customer expectation o Features v. Benefits: Features – qualities of the product, functions/uses built into it Benefits – the result from the product/what the product can do for the customer o Product – a good, service, or idea consisting of a bundle of tangible and intangible benefits o Product Item – a specific product identified by its ordering code (bar code), the stock keeping unit (SKU) o Product Line – a group of closely related products (products from same brand) Product Mix – set of product lines sold by a company Product Width – number of product lines Product Depth – average number of product items in a line Product Consistency – similarity across product lines o Product Life Cycle – the life of a product over 4 stages: introduction, growth, maturity, and decline Introduction – slow sales, no profit Growth – rapid growth, competition arises. Can be extended by adding features, changing features, new markets, etc. Maturity – growth slows Decline – sales drop The typical Marketing Mix Varies over time of the PLC Fad Product – product that hits the market and leaves quickly o Different Product Life Cycle Levels: Product Class Product Form Brand
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