Podcast
Questions and Answers
What is the first step in the customer purchase decision process?
What is the first step in the customer purchase decision process?
Which factor describes how personal traits influence shopping behavior?
Which factor describes how personal traits influence shopping behavior?
What is categorized as a psychological influence on consumer behavior?
What is categorized as a psychological influence on consumer behavior?
Which stage involves comparing different options before making a choice?
Which stage involves comparing different options before making a choice?
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What type of problem solving involves little thought during the purchase?
What type of problem solving involves little thought during the purchase?
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What stage comes after a consumer has made a purchase?
What stage comes after a consumer has made a purchase?
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Which of the following influences consumer behavior can be described as familial roles in decision-making?
Which of the following influences consumer behavior can be described as familial roles in decision-making?
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Which of the following is a key component of marketing research?
Which of the following is a key component of marketing research?
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What is a key element of a positioning statement?
What is a key element of a positioning statement?
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Which form of market segmentation focuses on tailored products for specific groups?
Which form of market segmentation focuses on tailored products for specific groups?
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What characteristic is associated with brand loyalty?
What characteristic is associated with brand loyalty?
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What does repositioning a brand primarily involve?
What does repositioning a brand primarily involve?
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Which of the following is an example of individual marketing?
Which of the following is an example of individual marketing?
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Which of these is NOT a form of market segmentation?
Which of these is NOT a form of market segmentation?
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What type of product is defined as non-durable goods?
What type of product is defined as non-durable goods?
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Which brand type is typically owned by retail companies?
Which brand type is typically owned by retail companies?
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What is the primary disadvantage of using secondary data in market research?
What is the primary disadvantage of using secondary data in market research?
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What is the primary focus during the introduction stage of the Product Life Cycle?
What is the primary focus during the introduction stage of the Product Life Cycle?
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Which step in the market research process involves determining data collection methods?
Which step in the market research process involves determining data collection methods?
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Which of the following best defines a support product in the context of business products?
Which of the following best defines a support product in the context of business products?
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Which of the following is an example of predictive analytics?
Which of the following is an example of predictive analytics?
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What are convenience products characterized by?
What are convenience products characterized by?
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What is the primary purpose of taking marketing actions in the research process?
What is the primary purpose of taking marketing actions in the research process?
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Which element of the total product concept represents the tangible attributes of a product?
Which element of the total product concept represents the tangible attributes of a product?
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What is a common strategy to extend the product life cycle?
What is a common strategy to extend the product life cycle?
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Which of the following sales forecasting techniques relies on past sales data?
Which of the following sales forecasting techniques relies on past sales data?
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Which of the following is not a type of consumer product classification?
Which of the following is not a type of consumer product classification?
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What does market segmentation primarily focus on?
What does market segmentation primarily focus on?
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What is the main purpose of trademarks?
What is the main purpose of trademarks?
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Which stage of market research directly follows the collection of relevant information?
Which stage of market research directly follows the collection of relevant information?
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Which metric should marketing metrics be easily understood?
Which metric should marketing metrics be easily understood?
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During which stage of the Product Life Cycle do products generally achieve their highest profits?
During which stage of the Product Life Cycle do products generally achieve their highest profits?
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What aspect is addressed in the repositioning of a product?
What aspect is addressed in the repositioning of a product?
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Which of the following is an example of a radical innovation?
Which of the following is an example of a radical innovation?
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What is the first step in the New Product Development Process?
What is the first step in the New Product Development Process?
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What is a common reason for new product failure?
What is a common reason for new product failure?
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What does the value equation indicate?
What does the value equation indicate?
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In a demand-oriented pricing approach, which strategy involves starting with a high price and then reducing it?
In a demand-oriented pricing approach, which strategy involves starting with a high price and then reducing it?
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What does 'barter' refer to?
What does 'barter' refer to?
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Which of the following best describes the effect of price on perceived quality?
Which of the following best describes the effect of price on perceived quality?
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Study Notes
Marketing Research
- Marketing research defines marketing problems and opportunities.
- It systematically collects and analyzes information.
- The goal is to recommend actions to reduce risk and improve marketing decisions.
- Challenges include predicting consumer behavior for new products, obtaining truthful responses from consumers, and ensuring accurate recall of interests and purchases.
Five-Step Market Research Approach
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Define the Problem/Issue/Opportunity:
- Set specific, measurable, and achievable research objectives.
- Identify possible marketing actions and measures of success.
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Develop the Research Plan:
- Identify constraints and data needed.
- Determine data collection methods.
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Collect Relevant Information:
- Secondary Data: Already recorded data (internal and external).
- Primary Data: Newly collected data (observational, asking people).
- Advantages of secondary data include time-saving, low cost, and detailed information.
- Disadvantages of secondary data include outdated information and potential mismatch with the project's needs.
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Analyze the Data:
- Use methods and technologies to analyze big data.
- Focus on transforming data into useful information.
- Data Mining: Finding correlations and patterns.
- Predictive Modeling: Statistical models predicting outcomes.
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Take Marketing Actions:
- Make recommendations based on findings.
- Suggest actions and evaluate results for businesses to improve their marketing strategies.
Key Concepts in Analytics
- Descriptive Analytics: What has happened (e.g., web visits, social media interactions).
- Predictive Analytics: What might happen based on data mining.
Sales Forecasting Techniques
- Judgments of Decision Maker: Decisions made in a company using their knowledge and experiences to estimate future sales.
- Surveys of Knowledgeable Groups: Surveys are conducted with people who know a lot about the market, such as customers or experts, to gather their opinion on future sales.
- Statistical Methods: Uses past sales data to identify patterns or trends, then applying it to predict future sales.
Market Segmentation
- Identify Consumer Needs: Understand common characteristics and needs within the market.
- Group Customers with Similar Trades: Group customers who share similar characteristics or needs.
- Estimate Segment Size: Assess the size of each identified segment.
- Target Segments: Select which segments to focus on for marketing efforts.
- Marketing Actions: Develop and implement marketing programs to reach selected segments.
- Monitor Success: Evaluate the effectiveness of marketing programs against set objectives.
Market Segmentation Importance
- Consumer Diversity: Different needs mean a single product cannot satisfy everyone.
- Resource Efficiency: Companies must allocate resources effectively to target likely buyers.
- Consumer Insights: Understanding target markets is crucial for effective marketing.
- Product Positioning: Creating a specific image of the product in the minds of the targeted group.
Key Elements of Positioning Statements
- Target market and need: Who is the targeted audience and what are their needs?
- Branded product name: The specific name of the brand.
- Product category: What category does the product belong to?
- Unique attributes and benefits: What makes this product different and what are the benefits for the customer?
Positioning Maps
- Identify important product attributes: Determine the key characteristics that customers consider important.
- Assess how target customers rate competing products: Get an understanding of how customers perceive competing products.
- Determine the position of the company’s product relative to competitors: See where the company's product stands in comparison to its competitors.
Forms of Market Segmentation
- Mass Marketing: Broad appeal with no differentiation.
- Segment Marketing: Targeting specific segments with tailored products.
- Niche Marketing: Focusing on a specific product over small groups.
- Individualized Marketing: Customizing offers to individual needs.
Dividing the Markets
- Geographic Segmentation: Location of the target market.
- Demographic Segmentation: Characteristics Information (age, gender, income).
- Psychographic Segmentation: Attitudes, values, and lifestyles.
- Behavioristic Segmentation: Interaction and usage patterns with the product.
Segmentation Analytics
- Uses data to group people based on their lifestyle and shopping behavior, helping companies target specific groups more accurately.
Brand Concepts
- Brand Loyalty: When customers keep buying the same brand's products because they trust and like it, even when there are other options available.
- Brand Personality: The human traits or characteristics associated with a brand, which help to create an emotional connection with customers (e.g., a brand being seen as fun, reliable, etc.)
Brand Name Criteria
- Suggest product benefits: The brand name should communicate the benefits of the product.
- Memorable, distinctive, and positive: The brand name should be easy to remember, stand out, and have a positive connotation.
- Fits company/product image: The brand name should align with the company's identity and the product's characteristics.
- Legally protectable and simple: The brand name should be protected legally and easy to understand.
Types of Brands
- Manufacturer Brands: Owned by manufacturers.
- Private-label Brands: Owned by retailers.
- Generic Brands: Unbranded products.
Product Types
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Goods: Tangible items.
- Non-durable Goods: Consumed once (e.g., food).
- Durable Goods: Lasts for an extended period (e.g., appliances).
- Services: Intangible activities or benefits.
- Hybrid Products: Combination of goods and services.
Total Product Concept
- Core Product: Primary benefit.
- Actual Product: Features, design, branding.
- Augmented Product: Additional services or benefits.
Product Lines and Mixes
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Product Line: Group of similar products targeting the same market.
- Depth: Number of variations within a product line.
- Length: Total number of products in the line.
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Product Mix: All product lines marketed by a company.
- Width: Number of different product lines.
Consumer Product Classifications
- Convenience Products: Frequently purchased, inexpensive.
- Shopping Products: Less frequently purchased, requires comparison.
- Specialty Products: High price, strong brand identity, exclusive distribution.
- Unsought Products: Not actively thought about by consumers, requires significant marketing.
Business Products
- Business products are items companies buy to help them operate or make other products.
- Production Products: Raw materials or parts that become part of the final product, like wood for furniture.
- Support Products: Things that help with production but don't become part of the product, like machines or office supplies.
Branding Elements
- Brand: Name, phrase, symbol, or design that distinguishes a product.
- Brand Equity: Value derived from consumer loyalty and brand associations.
Protecting Brands
- Patents: Protect inventions.
- Copyrights: Protect original works of authorship.
- Trademarks: Protect brand names and logos.
Product Life Cycle (PLC)
- Describes the stages a new product goes through from launch to decline.
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Stages:
- Introduction: Few competitors, focus on awareness, minimal profits.
- Growth: More competitors enter, product differentiation, increased profits.
- Maturity: Many competitors, brand loyalty, maximized profits.
- Decline: Reduced competition, focus on best sellers, decreasing profits.
Length of the Product Life Cycle
- Varies by industry, competition, and marketing strategies.
- Consumer products generally have shorter life cycles.
- Technological changes can shorten life cycles.
- Effective marketing can extend life cycles.
Strategies to Extend Product Life Cycles
- Modifying the Product: Product improvements and line extensions.
- Modifying the Market: Finding new customers, increasing product use, creating new situations for use.
- Repositioning the Product: Adapting to changing consumer needs or competition.
- Introducing New Products: Meeting changing consumer needs or improving value.
Types of New Products
- Minor Innovations: No new learning required (e.g., improved toothpaste).
- Continuous Innovations: Changes routine but requires minimal new learning.
- Radical Innovations: Requires new learning and consumption patterns (e.g., self-driving cars).
New Product Development Process
- New Product Development Strategy: Identify focus that meets company objectives.
- Idea Generation: Gathering ideas from sources outside the company, such as customers, competitors, and industry experts.
- Idea Screening: Retain good ideas; evaluate against company criteria (R-W-W concept).
- Business Analysis: Review sales, costs, and profit projections.
- Development: Create product concept and conduct concept testing.
- Test Marketing: Introduce product in a realistic market for feedback.
Common Reasons for New Product Failure
- Poor execution of the marketing mix (4 Ps).
- Bad timing of product launch.
- Insufficient market attractiveness.
- Insignificant point of difference.
Price
- Money or considerations exchanged for ownership/use of a product.
- Barter: Exchange of goods/services without money.
- Price Equations: Item Price = List Price - Incentives + Extra Fees
Price as an Indicator of Value
- Value Pricing: Enhancing benefits while maintaining the price.
- Value Equation: Value = Perceived Benefits / Price
- Price signals quality; too low may indicate poor quality, too high may suggest low value.
Profit Equation
- Total Revenue - Total Cost
General Pricing Approaches
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Demand-Oriented: Focus on what customers are willing to pay.
- Skimming: Start high, then lower the price.
- Penetration: Start low to attract buyers, then raise the price.
- Prestige: High price for high status.
- Odd-Even: Price just under a round number (e.g., $9.99).
- Bundle: Sell multiple items together at one price.
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Cost-Oriented: Set prices based on how much it costs to make the product.
- Standard Markup: Add a percentage on top of the cost.
- Cost-Plus: Add a fixed amount to the cost.
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Profit-Oriented: Set prices to meet profit goals.
- Target Profit: Set a price to make a certain amount of profit.
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Description
This quiz explores the fundamentals of marketing research, including the definition of marketing problems and the systematic approach to collecting and analyzing information. Test your knowledge on the five-step market research process and the significance of data in decision-making. Dive into both secondary and primary data collection methods, and understand their advantages.
