Agenda

1. Agenda • Ads • A few words… • Ethics • Marketing Function Overview • Market Research • Case

2. Ethics & Marketing • Why do we care?

3. Ethics Exercise: Abercrombie & Fitch • Read hand out • Break into small groups • Discuss and prepare responses to: • Is marketing adult-style underwear to a younger audience unethical? Why or why not? • If the sexy words had been omitted from the front of the product, would the issue be the same?

4. Strategic Market Planning Marketing Strategy: designing activities relating to marketing objectives, the changing marketing environment, and the marketing mix – all driven by and in support of the business strategy Marketing Plan: a document that acts as a guidebook of specified marketing activities and their rationale.

5. Marketing Mix • Product: The starting point of the marketing mix is the product offering or product strategy • Place: Place, or distribution strategies, are concerned with making products available when and where customers want them • Promotion: includes advertising & PR, it is about informing, educating, persuading, and reminding target markets of the benefits of the product or service • Price: What a buyer must give up in order to acquire a product.

6. Marketing Function ROI Tracking Monitoring Inputs Processes Outputs Targeting* Branding* Positioning* • Promotions • Advertising • Sponsorships • Events • Web Site • PR • Intellectual Capital • Corporate Responsibility • Policies • Blog(s) • Social Networks External Marketing Development and Execution Channel Development and Managing CRM/Satisfaction/Loyalty Marketplace Monitoring/Research Stakeholder Activities, esp Sales Product Development SWOT Future scenario/trends Competitive analysis Past research Targeted market research Business strategy Marketing Strategy Ethics *These 3 processes are critical to setting directions, but are at best annual, not ongoing

7. Market Research • What is it? • Why do it?

8. Market Research • What is it? • The process of planning, collecting and analyzing data relevant to a marketing decision • Adapted from Charles W. Lamb, Joseph F. Hair, Jr., and Carl McDaniel, Marketing, page 262

9. Market Research • What is it? • The process of planning, collecting and analyzing data relevant to a marketing decision • Why do it? • Critical input to Marketing Strategy/Plan • Improve quality of decision making • Understand problems • Understand current and prospective customers • Understand changes in marketplace • Adapted from Charles W. Lamb, Joseph F. Hair, Jr., and Carl McDaniel, Marketing, page 262

10. Technically, a 6 Step Process Identify & Frame the Problem/Opportunity Research &Sampling Design Instrument Design Collect Data Analyze Data Develop Report

11. Overview of Research Types Syndicated Research: Designed to meet objectives of multiple companies Custom Research: Designed to meet the specific objectives of one company Secondary Research: Using existing sources Primary Research: Interviews/surveys from primary sources • Qualitative Research: Using loosely structured interview guides among a small/non significant sample Internal Research: Using data that was gathered by the client organization for purposes other than market research (e.g., sales reports, operating statistics) External Research: Using publicly available data/reports developed by third parties, such as the government, trade associations/NGOs, industry experts, and the media • Quantitative Research: Using structured surveys via telephone or web among a statistically significant sample (typically over 100) • Ethnographic Research: Observation of consumer behavior in natural context/setting

12. Qualitative Research • Types of Qualitative Research • Focus Groups • Triads • In Depth Interviews (IDIs)

13. Qualitative Research • Qualitative research is appropriate when: • The objective is to understand “why”/to explore a subject that is undefined or unrefined/to understand reasons behind responses/choices • The population/subject matter is too sensitive or inappropriate for traditional quantitative methods • The population has too few people to collect quantitative data

14. Qualitative Research Advantages Disadvantages • Rich information • Able to gather clarification • Appropriate for sensitive issues • May uncover unknown issues • Dialog encourages spontaneity • Does not support statistical analyses • Cannot quantify • Typically not projectable to a larger population • May be unreliable (cannot test reliability)

15. Quantitative Research • Uses surveys to measure and size attitudes, behaviors and characteristics of a given constituency

16. Quantitative Research Advantages Disadvantages • Must ask right questions of right people • Can be expensive • Potential for sample/response bias • Relies on mostly closed-ended questions • Supports statistical analyses, measurements and modeling • Allows for projectability • Comparatively reliable • How many • How do they compare • How do they differ • How big

17. Quantitative Research • Data Collection Methods • Intercepts • Mail • Telephone • On-line

18. Ethnographic Research • Anthropological roots: cultural field observations • Observation and interaction with respondents in natural setting/context • Often videotaped • Usually involves a longer period of time (1/2 day, day, even days) • Used to understand how people behave in a specific environment…what makes them do what they do (home, grocery store, office, etc)

19. Secondary Research • Data previously collected for any purpose other than the one at hand • Usually publicly accessible • Stockholder reports, databases, search engines, articles, government/NGO sponsored research, etc

20. What are the Benefits of Secondary Research? Inexpensive Quick – can get results faster than with primary research Information not otherwise accessible/ available (e.g., historical data) Information potentially of higher quality/greater depth than commissioned primary research (e.g., government statistics)

21. What are the Limitations of Secondary Research? Uncertain Accuracy Potential for Source Bias Data May Not Be: • Consistent with Needs • Appropriate Unit of Measure • Appropriate Time-Period

22. Secondary research involves more than Googling your search term Sources How to Access Cost Examples

23. Case Study • In 2008, InBev a multinational brewer of such mega-brands as Bass, Stella Artois, Labatt’s and Beck’s completed an acquisition of Anheuser-Busch, the American brewer of Budweiser and Michelob. • What types of research might they have done as part of their acquisition thinking— • Qual—Quant—Ethnographic—Secondary?

24. Homework for Next Class • Read “Positioning”