Marketing research

1. Marketing research Strategic Marketing

2. Warm-Up List the five steps in the Market Research Process. Define Primary & Secondary Sources Give an Example of Each

3. Marketing research Five step process: • Define the problem • Obtain Data • Primary • Secondary • Analyze Data • Recommend Solutions to the Problem • Apply the Results

4. 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?

5. 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

6. 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

7. Stages in which you develop & implement a marketing strategy • Identify & 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.

8. Stages in which you develop & implement a marketing strategy • Analyze 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."

9. Stages in which you develop & implement a marketing strategy • Plan & 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

10. Stages in which you develop & implement a marketing strategy • Analyze Marketing Performance • Comparing Market Share from this year to last year • Did Brand Image change after new advertising? • Kmart Case Study

11. Brand Image: Can it be saved?

12. Kmart • Kmart 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

13. KMart • Attempted 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

14. 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

15. Comparing marketing budget

16. 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

17. 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.

18. Stages in which you develop & implement a marketing strategy • Performance-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”

19. Determining when to conduct market research Time Constraints Benefits v. Costs Availability of Data Nature of the Decision Yes Yes Information already on-hand inadequate? Is decision of strategic or tactical important? Does the information value exceed the research cost? Conduct Marketing Research Is Sufficient Time Available Yes No No No No Do Not Conduct Market Research

20. 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.