Marketing Research Methods

Exploratory Research

• A type of research using less structured methods to identify issues for further investigation without prior hypotheses.
• Does not impose a priori structure on data collection or respondent.

Descriptive Research

• Research that characterizes the "who," "what," "when," and "where" of the market.
• Does not involve the "why."

Causal Research

• Identifies the event (cause) and its consequence (effect).

Perceptual Maps

• Useful for presenting competitive positions in the marketplace.
• Visualize consumer perceptions; products and preferences are mapped.

Experiments

• Powerful tools for fine-tuning marketing programs.
• Link specific actions to outcomes.

Advertising

• Communicating messages via paid impersonal media (TV, radio, etc.)
• Sponsor is identified.

Sales

• Personal communication targeted to individual customers.
• Includes presentations, meetings, etc.

Sales Promotions

• Short-term incentives to encourage customer action (e.g., purchase).
• Includes offers to consumers and retailers.

Public Relations

• Management of relationships with various publics (e.g., regulators, media, customers).

Communications Mix

• Traditionally includes advertising, personal selling, sales promotions, and public relations.
• Now includes newer elements like event promotions, brand ambassadors, and internet.

Financial Ratios

• Based on accounting information used for comparison.
• Compared to industry standards, prior periods, and competitors.

Qualitative Data

• Data collected via observations, text, or verbal responses.

Quantitative Data

• Numerical responses; conducive to statistical analysis and generalizations.

Brand

• Commercial identities that maintain the value of marketing investments over time.

Brand Equity

• The cumulative emotional and mental associations with a brand.

Brand Strength

• Important for comparing competitive brands.
• Helps evaluate marketing investments.

Distribution

• Channel selection, affiliation, and control are crucial for successful brands.

Relative Advantage

• Innovation's distinct attribute impacting consumer adoption.

Trialability

• Ability to try a product without substantial commitment influencing adoption.

Complexity/Ease of Use

• Complex innovations face slower adoption than user-friendly ones.

Observability

• Visible innovations diffuse quickly in the market compared to hidden products.

Compatibility

• Degree of change in a product influencing adoption – less change, quicker adoption.

Extrapolation

• Budget adjustments based on previous year's budgets.

Target Costing

• Defines the target sales volume and profit objectives.

Bottom-Up Budgeting

• Budget derived from the specific objectives of the business unit.

Percentage of Sales/Profits

• Budget based on a percentage of projected sales or profits.

Market Potential

• Maximum number of potential buyers who can purchase a product.

Idea Generation

• Collecting as many promising ideas for new products/services.

Razorblade Pricing

• Strategic pricing strategy, useful for certain products and industries.

Legal and Ethical Considerations

• Price fixing, price collusion and discrimination across customer channels are legally and ethically prohibited.

Social Phenomena

• Consumers, art, and spokespersons influence brand perception.

Market Penetration

• Strategy using volume for benefits of scale, economies of scale, or experience effects to lower unit cost.

Product Positioning

• Premium pricing creates a perceived quality leadership.

Value Map

• Provides a visual representation of market positioning, considering customer priorities.

Setting and Adjusting the Price

• Pricing strategies need to be consistent with overall strategies.
• Company adaptations are required to changing circumstances.

Channel Functions

• Delivering products from producer to customer effectively and efficiently.

Penetration Pricing Strategy

• Aims to quickly gain market share by offering relatively low prices to gain a segment's attention early on.

Channel Power

• Ability of a channel member to influence another's decisions.

Hybrid Channels

• Using multiple channels to deliver products to different customer segments.

Channels of Distribution

• Mechanisms for product delivery from producer to customer.

Transactional Functions

• Include buying, selling, and risk taking.

Logistical Functions

• Includes transporting, sorting, storing, location, sorting.

Positioning

• Final step in strategy formation ("STP process").

Customer-Oriented Market Research

• Thorough understanding of the customer needs is paramount in effective marketing.

Positioning Statement

• Establishing unique, sustainable, and positive associations of a product or brand in the customer's mind.

Situation Assessment

• Exploring customer trends, needs, and demands for general customer insights.

Exploratory Study

• Gathering information to identify specific research issues without defining rigid hypotheses.

Syndicated Sources

• Market research companies collect and sell data (e.g., IRI and ACNielsen).

Product Portfolio

• Collection of products and businesses within a business segment

Relative Market Share

• Ratio of a product's market share to the largest competing brands' market share.

Perceptual Maps

• Visual representations of customers' perceptions of brands or products.

Strategic Marketing

• Decisions regarding customer segments, competitive advantage, and meeting customer needs.

Target Segments

• Dividing customers into groups based on shared characteristics, behaviors, and needs.

Competitive Advantages

• Distinguishing traits to gain a competitive edge in the market.

CONSIDER CONTINGENCY

• Re-evaluating earlier assumptions and connecting them to new analyses.

Semantic Scales/Semantic Differential Scale

• Using bipolar attributes to evaluate customer perceptions of brands/products.

Perceptual Maps

• Visualizations of customer perceptions of brands, using dimensions like quality and price.

Multiple Choice Questions

• Details about various concepts and methodologies, including the market research process, appropriate research contexts and tools (experiments, maps, and data sources).

Assessment and Adjustment

• Involves measuring, monitoring, and evaluating performance metrics.

Communication Mix

• Consists of advertising, personal selling, sales promotions, and public relations.

Advertising

• Impersonal communication with a known sponsor.

Direct Advertising

• Methods such as direct mail, telemarketing, and email are forms of advertising.

Product Positioning

• Strategic focus on segmenting the market to meet specific customer needs.

Market Penetration Strategy

• Low prices to rapidly gain market share

Product Positioning Statement

• Explains how the product/brand meets a customer need.

Market Skimming Strategy

• High initial price, often used for niche/high-value products or segments.

Target Market

• Specific group of customers a product or service is aimed at.

Brand Awareness

• Percentage of target market that is aware of a product brand.

Brand Image

• Customers' overall perception of a brand.

Repurchase Rate

• Percentage of customers who repurchase a product after an initial purchase.

Customer Value Map

• Visual representation of the value a customer perceives in a product or brand.

BCG Matrix

• Portfolio management tool classifying products/business units based on relative market share and market growth.

GE/McKinsey Portfolio Planning Grid

• Matrix for analyzing businesses for resource allocation strategies and profitability.

Target Segment

• Group of customers sharing attributes, behaviors, and needs.

Positioning Statement

• Clear description of the product or service, target audience, and how it meets the market need.

Customer Value Map

• Displays the perceptions of customers and how the product/service will meet customer needs.

Conjoint Analysis

• Research that evaluates the preference of consumers for various combinations of product attributes.

Perceptual map

• Visualizing customer perception of product features.

Explore various marketing research methodologies including exploratory, descriptive, and causal research. Understand tools like perceptual maps, experiments, and the role of advertising and sales promotions in market strategy. This quiz will enhance your knowledge of how these methods are applied in real-world situations.