Main article: Marketing communications
Marketing communications is defined by actions a firm takes to communicate with end-users, consumers and external parties. Marketing communications encompasses four distinct subsets, which are:
Personal sales
Oral presentation given by a salesperson who approaches individuals or a group of potential customers:
Live, interactive relationship
Personal interest
Attention and response
Interesting presentation
Clear and thorough.
Sales promotion
Short-term incentives to encourage buying of products:
Saturday, October 24, 2009
The Marketing Research Process
Define the problem
Develop a research plan
Collect the data
Interpret data into information
Disseminate information formally in the form of a report
Market segmentation
Main article: Market segmentation
Market segmentation pertains to the division of a market of consumers into persons with similar needs and wants[15]. As an example, if using Kellogg's cereals in this instance, Frosties are marketed to children. Crunchy Nut Cornflakes are marketed to adults. Both goods aforementioned denote two products which are marketed to two distinct groups of persons, both with like needs, traits, and wants.
The purpose for market segmentation is conducted for two main issues. First, a segmentation allows a better allocation of a firm's finite resources. A firm only possesses a certain amount of resources. Accordingly, it must make choices (and appreciate the related costs) in servicing specific groups of consumers. Furthermore the diversified tastes of the contemporary Western consumers can be served better. With more diversity in the tastes of modern consumers, firms are taking noting the benefit of servicing a multiplicity of new markets.
Market segmentation can be defined in terms of the STP acronym, meaning Segment, Target and Position.
Segment
Segmentation involves the initial splitting up of consumers into persons of like needs/wants/tastes. Four commonly used criteria are used for segmentation, which include:
Geographical (a country, region, city, town, etc.)
Psychographic (i.e. personality traits or character traits which influence consumer behaviour)
Demographic (e.g. age, gender, socio-economic class, etc.)
Behavioural (e.g. brand loyalty, usage rate, etc.)
Target
Once a segment has been identified, a firm must ascertain whether the segment is beneficial for them to service. The DAMP acronym (meaning Discernable, Accessible, Measurable and Profitable) are used as criteria to gauge the viability of a target market. DAMP is explained in further detail below:
- Discernable - how a segment can be differentiated from other segments.
- Accessible - how a segment can be accessed via Marketing Communications produced by a firm
- Measurable - can the segment be quantified and its size determined?
- Profitable - can a sufficient return on investment be attained from a segment's servicing?
The next step in the targeting process is the level of differentiation involved in a segment serving. Three modes of differentiation exist, which are commonly applied by firms. These are:
Undifferentiated - where a company produces a like product for all of a market segment
Differentiated - in which a firm produced slight modifications of a product within a segment
Niche - in which an organisation forges a product to satisfy a specialised target market
Position
Positioning concerns how to position a product in the minds of consumers. A firm often performs this by producing a perceptual map, which denotes products produced in its industry according to how consumers perceive their price and quality. From a product's placing on the map, a firm would tailor its marketing communications to suit meld with the product's perception among consumers.
Develop a research plan
Collect the data
Interpret data into information
Disseminate information formally in the form of a report
Market segmentation
Main article: Market segmentation
Market segmentation pertains to the division of a market of consumers into persons with similar needs and wants[15]. As an example, if using Kellogg's cereals in this instance, Frosties are marketed to children. Crunchy Nut Cornflakes are marketed to adults. Both goods aforementioned denote two products which are marketed to two distinct groups of persons, both with like needs, traits, and wants.
The purpose for market segmentation is conducted for two main issues. First, a segmentation allows a better allocation of a firm's finite resources. A firm only possesses a certain amount of resources. Accordingly, it must make choices (and appreciate the related costs) in servicing specific groups of consumers. Furthermore the diversified tastes of the contemporary Western consumers can be served better. With more diversity in the tastes of modern consumers, firms are taking noting the benefit of servicing a multiplicity of new markets.
Market segmentation can be defined in terms of the STP acronym, meaning Segment, Target and Position.
Segment
Segmentation involves the initial splitting up of consumers into persons of like needs/wants/tastes. Four commonly used criteria are used for segmentation, which include:
Geographical (a country, region, city, town, etc.)
Psychographic (i.e. personality traits or character traits which influence consumer behaviour)
Demographic (e.g. age, gender, socio-economic class, etc.)
Behavioural (e.g. brand loyalty, usage rate, etc.)
Target
Once a segment has been identified, a firm must ascertain whether the segment is beneficial for them to service. The DAMP acronym (meaning Discernable, Accessible, Measurable and Profitable) are used as criteria to gauge the viability of a target market. DAMP is explained in further detail below:
- Discernable - how a segment can be differentiated from other segments.
- Accessible - how a segment can be accessed via Marketing Communications produced by a firm
- Measurable - can the segment be quantified and its size determined?
- Profitable - can a sufficient return on investment be attained from a segment's servicing?
The next step in the targeting process is the level of differentiation involved in a segment serving. Three modes of differentiation exist, which are commonly applied by firms. These are:
Undifferentiated - where a company produces a like product for all of a market segment
Differentiated - in which a firm produced slight modifications of a product within a segment
Niche - in which an organisation forges a product to satisfy a specialised target market
Position
Positioning concerns how to position a product in the minds of consumers. A firm often performs this by producing a perceptual map, which denotes products produced in its industry according to how consumers perceive their price and quality. From a product's placing on the map, a firm would tailor its marketing communications to suit meld with the product's perception among consumers.
A firm's micro-environment typically spans:
Customers/consumers
Employees
Suppliers
The Media
By contrast to the macro-environment, an organization holds a greater degree of control over these factors.
Marketing research
Main article: Marketing research
Marketing research involves conducting research to support marketing activities, and the statistical interpretation of data into information. This information is then used by managers to plan marketing activities, gauge the nature of a firm's marketing environment, attain information from suppliers, etc. Marketing researchers use statistical methods (such as quantitative research, qualitative research, hypothesis tests, Chi-squared tests, linear regression, correlation co-efficients, frequency distributions, Poisson and Binomial distributions, etc.) to interpret their findings and convert data into information.
A distinction should be made between marketing research and market research. Market research pertains to research in a given market. As an example, a firm may conduct research in a target market, after selecting a suitable market segment. In contrast, marketing research relates to all research conducted within marketing. Thus, market research is a subset of marketing research.
Product
The product aspects of marketing deal with the specifications of the actual goods or services, and how it relates to the end-user's needs and wants. The scope of a product generally includes supporting elements such as warranties, guarantees, and support.
Pricing
This refers to the process of setting a price for a product, including discounts. The price need not be monetary; it can simply be what is exchanged for the product or services, e.g. time, energy, or attention. Methods of setting prices optimally are in the domain of pricing science.
Placement (or distribution)
This refers to how the product gets to the customer; for example, point-of-sale placement or retailing. This third P has also sometimes been called Place, referring to the channel by which a product or service is sold (e.g. online vs. retail), which geographic region or industry, to which segment (young adults, families, business people), etc. also referring to how the environment in which the product is sold in can affect sales.
Promotion
This includes advertising, sales promotion, including promotional education, publicity, and personal selling. Branding refers to the various methods of promoting the product, brand, or company.
These four elements are often referred to as the marketing mix,[12] which a marketer can use to craft a marketing plan. The four Ps model is most useful when marketing low value consumer products. Industrial products, services, high value consumer products require adjustments to this model. Services marketing must account for the unique nature of services.
Industrial or B2B marketing must account for the long term contractual agreements that are typical in supply chain transactions. Relationship marketing attempts to do this by looking at marketing from a long term relationship perspective rather than individual transactions. As a counter to this, Morgan, in Riding the Waves of Change (Jossey-Bass, 1988), suggests that one of the greatest limitations of the 4 Ps approach "is that it unconsciously emphasizes the inside–out view (looking from the company outwards), whereas the essence of marketing should be the outside–in approach".
In order to recognize the different aspects of selling services, as opposed to Products, a further three Ps were added to make a range of Seven Ps[13] for service industries:
Process - the way in which orders are handled, customers are satisfied and the service is delivered.
Physical Evidence - is tangible evidence of the service customers will receive (for example a holiday brochure).
People - the people meeting and dealing with the customers.
As markets have become more satisfied, the 7 Ps have become relevant to those companies selling products, as well as those solely involved with services: customers now differentiate between sellers of goods by the service they receive in the process from the people involved. Some authors cite a further P - Packaging - this is thought by many to be part of Product, but in certain markets (Japan, China for example) and with certain products (perfume, cosmetics) the packaging of a product has a greater importance - maybe even than the product itself.
The marketing environment
The term "marketing environment" relates to all of the factors (whether internal, external, direct or indirect) that affect a firm's marketing decision-making/planning. A firm's marketing environment consists of three main areas, which are:
The macro-environment, over which a firm holds little control
The micro-environment, over which a firm holds a greater amount (though not necessarily total) control
The macro-environment
A firm's marketing macro-environment consists of a variety of external factors that manifest on a large (or macro) scale. These are typically economic, social, political or technological phenomena. A common method of assessing a firm's macro-environment is via a PESTLE (Political, Economic, Social, Technological, Legal, Ecological) analysis. Within a PESTLE analysis, a firm would analyze national political issues, culture and climate, key macroeconomic conditions, health and indicators (such as economic growth, inflation, unemployment, etc.), social trends/attitudes, and the nature of technology's impact on its society and the business processes within the society.
The micro-environment
A firm's micro-environment comprises factors pertinent to the firm itself, or stakeholders closely connected with the firm or company.
Pricing
This refers to the process of setting a price for a product, including discounts. The price need not be monetary; it can simply be what is exchanged for the product or services, e.g. time, energy, or attention. Methods of setting prices optimally are in the domain of pricing science.
Placement (or distribution)
This refers to how the product gets to the customer; for example, point-of-sale placement or retailing. This third P has also sometimes been called Place, referring to the channel by which a product or service is sold (e.g. online vs. retail), which geographic region or industry, to which segment (young adults, families, business people), etc. also referring to how the environment in which the product is sold in can affect sales.
Promotion
This includes advertising, sales promotion, including promotional education, publicity, and personal selling. Branding refers to the various methods of promoting the product, brand, or company.
These four elements are often referred to as the marketing mix,[12] which a marketer can use to craft a marketing plan. The four Ps model is most useful when marketing low value consumer products. Industrial products, services, high value consumer products require adjustments to this model. Services marketing must account for the unique nature of services.
Industrial or B2B marketing must account for the long term contractual agreements that are typical in supply chain transactions. Relationship marketing attempts to do this by looking at marketing from a long term relationship perspective rather than individual transactions. As a counter to this, Morgan, in Riding the Waves of Change (Jossey-Bass, 1988), suggests that one of the greatest limitations of the 4 Ps approach "is that it unconsciously emphasizes the inside–out view (looking from the company outwards), whereas the essence of marketing should be the outside–in approach".
In order to recognize the different aspects of selling services, as opposed to Products, a further three Ps were added to make a range of Seven Ps[13] for service industries:
Process - the way in which orders are handled, customers are satisfied and the service is delivered.
Physical Evidence - is tangible evidence of the service customers will receive (for example a holiday brochure).
People - the people meeting and dealing with the customers.
As markets have become more satisfied, the 7 Ps have become relevant to those companies selling products, as well as those solely involved with services: customers now differentiate between sellers of goods by the service they receive in the process from the people involved. Some authors cite a further P - Packaging - this is thought by many to be part of Product, but in certain markets (Japan, China for example) and with certain products (perfume, cosmetics) the packaging of a product has a greater importance - maybe even than the product itself.
The marketing environment
The term "marketing environment" relates to all of the factors (whether internal, external, direct or indirect) that affect a firm's marketing decision-making/planning. A firm's marketing environment consists of three main areas, which are:
The macro-environment, over which a firm holds little control
The micro-environment, over which a firm holds a greater amount (though not necessarily total) control
The macro-environment
A firm's marketing macro-environment consists of a variety of external factors that manifest on a large (or macro) scale. These are typically economic, social, political or technological phenomena. A common method of assessing a firm's macro-environment is via a PESTLE (Political, Economic, Social, Technological, Legal, Ecological) analysis. Within a PESTLE analysis, a firm would analyze national political issues, culture and climate, key macroeconomic conditions, health and indicators (such as economic growth, inflation, unemployment, etc.), social trends/attitudes, and the nature of technology's impact on its society and the business processes within the society.
The micro-environment
A firm's micro-environment comprises factors pertinent to the firm itself, or stakeholders closely connected with the firm or company.
Further orientations
An emerging area of study and practice concerns internal marketing, or how employees are trained and managed to deliver the brand in a way that positively impacts the acquisition and retention of customers, see also employer branding.
Diffusion of innovations research explores how and why people adopt new products, services and ideas.
With consumers' eroding attention span and willingness to give time to advertising messages, marketers are turning to forms of permission marketing such as branded content, custom media and reality marketing.
Marketing mix
Main article: Marketing mix
In the early 1960s, Professor Neil Borden at Harvard Business School identified a number of company performance actions that can influence the consumer decision to purchase goods or services. Borden suggested that all those actions of the company represented a “Marketing Mix”. Professor E. Jerome McCarthy, at the Michigan State University in the early 1960s, suggested that the Marketing Mix contained 4 elements product, price, place and promotion.
Diffusion of innovations research explores how and why people adopt new products, services and ideas.
With consumers' eroding attention span and willingness to give time to advertising messages, marketers are turning to forms of permission marketing such as branded content, custom media and reality marketing.
Marketing mix
Main article: Marketing mix
In the early 1960s, Professor Neil Borden at Harvard Business School identified a number of company performance actions that can influence the consumer decision to purchase goods or services. Borden suggested that all those actions of the company represented a “Marketing Mix”. Professor E. Jerome McCarthy, at the Michigan State University in the early 1960s, suggested that the Marketing Mix contained 4 elements product, price, place and promotion.
Organizational orientation
In this sense, a firm's marketing department is often seen as of prime importance within the functional level of an organization. Information from an organization's marketing department would be used to guide the actions of other department's within the firm. As an example, a marketing department could ascertain (via marketing research) that consumers desired a new type of product, or a new usage for an existing product. With this in mind, the marketing department would inform the R&D department to create a prototype of a product/service based on consumers' new desires.
The production department would then start to manufacture the product, while the marketing department would focus on the promotion, distribution, pricing, etc. of the product. Additionally, a firm's finance department would be consulted, with respect to securing appropriate funding for the development, production and promotion of the product. Inter-departmental conflicts may occur, should a firm adhere to the marketing orientation. Production may oppose the installation, support and servicing of new capital stock, which may be needed to manufacture a new product. Finance may oppose the required capital expenditure, since it could undermine a healthy cash flow for the organization.
Mutually beneficial exchange
A further marketing orientation is the focus on a mutually beneficial exchange. In a transaction in the market economy, a firm gains revenue, which thus leads to more profits/market share/sales. A consumer on the other hand gains the satisfaction of a need/want, utility, reliability and value for money from the purchase of a product or service. As no one has to buy goods from any one supplier in the market economy, firms must entice consumers to buy goods with contemporary marketing ideals.
Herd behavior
Herd behavior in marketing is used to explain the dependencies of customers' mutual behavior. The Economist reported a recent conference in Rome on the subject of the simulation of adaptive human behavior.[11] It shared mechanisms to increase impulse buying and get people "to buy more by playing on the herd instinct." The basic idea is that people will buy more of products that are seen to be popular, and several feedback mechanisms to get product popularity information to consumers are mentioned, including smart card technology and the use of Radio Frequency Identification Tag technology. A "swarm-moves" model was introduced by a Florida Institute of Technology researcher, which is appealing to supermarkets because it can "increase sales without the need to give people discounts."
Other recent studies on the "power of social influence" include an "artificial music market in which some 14,000 people downloaded previously unknown songs" (Columbia University, New York); a Japanese chain of convenience stores which orders its products based on "sales data from department stores and research companies;" a Massachusetts company exploiting knowledge of social networking to improve sales; and online retailers who are increasingly informing consumers about "which products are popular with like-minded consumers" (e.g., Amazon, eBay).
The production department would then start to manufacture the product, while the marketing department would focus on the promotion, distribution, pricing, etc. of the product. Additionally, a firm's finance department would be consulted, with respect to securing appropriate funding for the development, production and promotion of the product. Inter-departmental conflicts may occur, should a firm adhere to the marketing orientation. Production may oppose the installation, support and servicing of new capital stock, which may be needed to manufacture a new product. Finance may oppose the required capital expenditure, since it could undermine a healthy cash flow for the organization.
Mutually beneficial exchange
A further marketing orientation is the focus on a mutually beneficial exchange. In a transaction in the market economy, a firm gains revenue, which thus leads to more profits/market share/sales. A consumer on the other hand gains the satisfaction of a need/want, utility, reliability and value for money from the purchase of a product or service. As no one has to buy goods from any one supplier in the market economy, firms must entice consumers to buy goods with contemporary marketing ideals.
Herd behavior
Herd behavior in marketing is used to explain the dependencies of customers' mutual behavior. The Economist reported a recent conference in Rome on the subject of the simulation of adaptive human behavior.[11] It shared mechanisms to increase impulse buying and get people "to buy more by playing on the herd instinct." The basic idea is that people will buy more of products that are seen to be popular, and several feedback mechanisms to get product popularity information to consumers are mentioned, including smart card technology and the use of Radio Frequency Identification Tag technology. A "swarm-moves" model was introduced by a Florida Institute of Technology researcher, which is appealing to supermarkets because it can "increase sales without the need to give people discounts."
Other recent studies on the "power of social influence" include an "artificial music market in which some 14,000 people downloaded previously unknown songs" (Columbia University, New York); a Japanese chain of convenience stores which orders its products based on "sales data from department stores and research companies;" a Massachusetts company exploiting knowledge of social networking to improve sales; and online retailers who are increasingly informing consumers about "which products are popular with like-minded consumers" (e.g., Amazon, eBay).
Customer orientation
A firm in the market economy survives by producing goods that persons are willing and able to buy. Consequently, ascertaining consumer demand is vital for a firm's future viability and even existence as a going concern. Many companies today have a customer focus (or market orientation). This implies that the company focuses its activities and products on consumer demands. Generally there are three ways of doing this: the customer-driven approach, the sense of identifying market changes and the product innovation approach.
In the consumer-driven approach, consumer wants are the drivers of all strategic marketing decisions. No strategy is pursued until it passes the test of consumer research. Every aspect of a market offering, including the nature of the product itself, is driven by the needs of potential consumers. The starting point is always the consumer. The rationale for this approach is that there is no point spending R&D funds developing products that pe
ople will not buy. History attests to many products that were commercial failures in spite of being technological breakthroughs.[9]
A formal approach to this customer-focused marketing is known as SIVA[10] (Solution, Information, Value, Access). This system is basically the four Ps renamed and reworded to provide a customer focus. The SIVA Model provides a demand/customer centric version alternative to the well-known 4Ps supply side model (product, price, place, promotion) of marketing management.
Product → Solution
Promotion → Information
Price → Value
Placement → Access
In the consumer-driven approach, consumer wants are the drivers of all strategic marketing decisions. No strategy is pursued until it passes the test of consumer research. Every aspect of a market offering, including the nature of the product itself, is driven by the needs of potential consumers. The starting point is always the consumer. The rationale for this approach is that there is no point spending R&D funds developing products that pe
ople will not buy. History attests to many products that were commercial failures in spite of being technological breakthroughs.[9]A formal approach to this customer-focused marketing is known as SIVA[10] (Solution, Information, Value, Access). This system is basically the four Ps renamed and reworded to provide a customer focus. The SIVA Model provides a demand/customer centric version alternative to the well-known 4Ps supply side model (product, price, place, promotion) of marketing management.
Product → Solution
Promotion → Information
Price → Value
Placement → Access
Product orientation
In a product innovation approach, the company pursues product innovation, then tries to develop a market for the product. Product innovation drives the process and marketing research is conducted primarily to ensure that profitable market segment(s) exist for the innovation. The rationale is that customers may not know what options will be available to them in the future so we should not expect them to tell us what they will buy in the future. However, marketers can aggressively over-pursue product innovation and try to overcapitalize on a niche. When pursuing a product innovation approach, marketers must ensure that they have a varied and multi-tiered approach to product innovation. It is claimed that if Thomas Edison depended on marketing research he would have produced larger candles rather than inventing light bulbs. Many firms, such as research and development focused companies, successfully focus on product innovation. Many purists doubt whether this is really a form of marketing orientation at all, because of the ex post status of consumer research. Some even question whether it is marketing.
Further definitions
Marketing is defined by the American Marketing Association as "the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large."[3] The term developed from the original meaning which referred literally to going to a market to buy or sell goods or services. Seen from a systems point of view, sales process engineering views marketing as "a set of processes that are interconnected and interdependent with other functions,[4] whose methods can be improved using a variety of relatively new approaches."
The Chartered Institute of Marketing defines marketing as "the management process responsible for identifying, anticipating and satisfying customer requirements profitably."[5] A similar concept is the value-based marketing which states the role of marketing to contribute to increasing shareholder value.[6] In this context, marketing can be defined as "the management process that seeks to maximise returns to shareholders by developing relationships with valued customers and creating a competitive advantage."[6]
Marketing practice tended to be seen as a creative industry in the past, which included advertising, distribution and selling. However, because the academic study of marketing makes extensive use of social sciences, psychology, sociology, mathematics, economics, anthropology and neuroscience, the profession is now widely recognized a
s a science, allowing numerous universities to offer Master-of-Science (MSc) programmes. The overall process starts with marketing research and goes through market segmentation, business planning and execution, ending with pre and post-sales promotional activities. It is also related to many of the creative arts. The marketing literature is also adept at re-inventing itself and its vocabulary according to the times and the culture.
The Chartered Institute of Marketing defines marketing as "the management process responsible for identifying, anticipating and satisfying customer requirements profitably."[5] A similar concept is the value-based marketing which states the role of marketing to contribute to increasing shareholder value.[6] In this context, marketing can be defined as "the management process that seeks to maximise returns to shareholders by developing relationships with valued customers and creating a competitive advantage."[6]
Marketing practice tended to be seen as a creative industry in the past, which included advertising, distribution and selling. However, because the academic study of marketing makes extensive use of social sciences, psychology, sociology, mathematics, economics, anthropology and neuroscience, the profession is now widely recognized a
s a science, allowing numerous universities to offer Master-of-Science (MSc) programmes. The overall process starts with marketing research and goes through market segmentation, business planning and execution, ending with pre and post-sales promotional activities. It is also related to many of the creative arts. The marketing literature is also adept at re-inventing itself and its vocabulary according to the times and the culture.
Contents
1 Further definitions
2 Marketing orientations
2.1 Earlier approaches
2.1.1 Product orientation
2.2 Contemporary approaches
2.2.1 Customer orientation
2.2.2 Organizational orientation
2.2.3 Mutually beneficial exchange
2.2.4 Herd behavior
2.2.5 Further orientations
3 Marketing mix
4 The marketing environment
4.1 The macro-environment
4.2 The micro-environment
5 Marketing research
5.1 The Marketing Research Process
6 Market segmentation
6.1 Segment
6.2 Target
6.3 Position
7 Marketing communications
7.1 Personal sales
7.2 Sales promotion
7.3 Public Relations
7.4 Publicity
7.5 Advertising
7.6 Marketing communications "mix"
8 Marketing planning
8.1 Marketing planning process
8.2 Levels of marketing objectives within an organization
8.2.1 Corporate
8.2.2 Strategic business unit
8.2.3 Functional
9 Product Life Cycle
9.1 Introduction
9.2 Growth
9.3 Maturity
9.4 Decline
10 Areas of marketing specialization
11 See also
12 Related lists and outlines
13 References
Primary research is research used to collect data for a specific task. Types of primary data collection methods include:
•Personal Observation: The observation of the respondent by a trained observer or by electronic equipment (camera). The aim is to observe consumer responses and behaviour to a product or customer service.
•Personal Interviews: Face to face interview between an interviewer and the respondent at home or in shopping centres.
Advantages of personal interviews
•In-depth answers possible.
•Qualitative data obtained from small sample.
•Observation improves accuracy.
•Rapport leads to fewer refusals.
Disadvantage of personal interviews
•Cost: Professional Interviewer expensive.
•Interviewer bias.
•Can be slow and time consuming.
•People not at home.
•Invasion of privacy.
•Postal surveys: Mailing or distributing door to door a written questionnaire to a sample of buyers for their completion at home or at work.
Advantages of postal surveys
•No travel expenses so economic if good return rate.
•No interviewer Bias
•Anonymous returns
•Can be completed at respondents’ leisure.
Disadvantages of postal surveys
•Low response rate approximately 3%
•Take longer
•Have to be short.
•Questions may be misinterpreted, and there is no interviewer their to guide the respondent.
•Telephone Surveys: Involves the interviewer contacting the target respondent and asking them questions and recording responses.
Advantages of telephone surveys
•Easy to administer
•Quick.
•Allows for reaction and some in-depth interviews.
•Questions can be modified.
Disadvantages of telephone surveys
•Professional interviewers are expensive.
•Invasion of privacy.
•Telephone charges can be high.
•Not everyone has a telephone, so not representative of the population.
•High non-response rate because of engaged/no answers, plain refusals.
•Focus Groups: A discussion between six to beight individuals with the aim to produce qualitative data (opinions and attitudes) on the topic being discussed. The topic may be their opinions on a new product the organisation wishes to introduce. The person who monitors the group is called 'the moderator'
Advantages of focus groups
•Generates information helpful in structuring consumer questionnaires.
•Provides background information on product.
•Secures impressions on new product concepts.
Disadvantage of focus groups
•The group may have one or some dominant people within it who may actually dissuade some other group member to make a full contribution.
•Difficult for moderator to interrupt once a discussion gets going.
•Bias from moderator.
Studying Management? Visit www.learnmanagement2.com
Recommended books
Case studies on www.thetimes100.co.uk
Marketing Research In Action by Raymond Kent.
Marketing Research By Chisnell
•Personal Interviews: Face to face interview between an interviewer and the respondent at home or in shopping centres.
Advantages of personal interviews
•In-depth answers possible.
•Qualitative data obtained from small sample.•Observation improves accuracy.
•Rapport leads to fewer refusals.
Disadvantage of personal interviews
•Cost: Professional Interviewer expensive.
•Interviewer bias.
•Can be slow and time consuming.
•People not at home.
•Invasion of privacy.
•Postal surveys: Mailing or distributing door to door a written questionnaire to a sample of buyers for their completion at home or at work.
Advantages of postal surveys
•No travel expenses so economic if good return rate.
•No interviewer Bias
•Anonymous returns
•Can be completed at respondents’ leisure.
Disadvantages of postal surveys
•Low response rate approximately 3%
•Take longer
•Have to be short.
•Questions may be misinterpreted, and there is no interviewer their to guide the respondent.
•Telephone Surveys: Involves the interviewer contacting the target respondent and asking them questions and recording responses.
Advantages of telephone surveys
•Easy to administer
•Quick.
•Allows for reaction and some in-depth interviews.
•Questions can be modified.
Disadvantages of telephone surveys
•Professional interviewers are expensive.
•Invasion of privacy.
•Telephone charges can be high.
•Not everyone has a telephone, so not representative of the population.
•High non-response rate because of engaged/no answers, plain refusals.
•Focus Groups: A discussion between six to beight individuals with the aim to produce qualitative data (opinions and attitudes) on the topic being discussed. The topic may be their opinions on a new product the organisation wishes to introduce. The person who monitors the group is called 'the moderator'
Advantages of focus groups
•Generates information helpful in structuring consumer questionnaires.
•Provides background information on product.
•Secures impressions on new product concepts.
Disadvantage of focus groups
•The group may have one or some dominant people within it who may actually dissuade some other group member to make a full contribution.
•Difficult for moderator to interrupt once a discussion gets going.
•Bias from moderator.
Studying Management? Visit www.learnmanagement2.com
Recommended books
Case studies on www.thetimes100.co.uk
Marketing Research In Action by Raymond Kent.
Marketing Research By Chisnell
Why develop new products for your business?
Here we will look at some of the reasons why a company may introduce new products into its portfolio. 
Every business needs to innovate to stay ahead of the competition. No business can continue to offer the same unchanged product, if they did so, profit would not be maximized and sales would start to fall.
•Consumer needs may change, forcing the company to adapt with these changing needs. If we look at food sectors around the world, consumers are becoming more health conscious, forcing companies to introduce low sugar and fat versions of their existing brands. Coca Cola Zero is a classic example.
•The product maybe at the end of its life cycle, so the company may introduce new and improved updated versions. Microsoft has done this by moving from the Xbox to the Xbox 360.
•The product might be at the maturity stage of its life cycle and might just need to be re-modified to stimulate an increase in sales. Sony PlayStation have done this with the original PlayStation by offering a smaller version called PSOne, and a slim version of the PlayStation 2.
•There maybe environmental changes which the company may want to capitalise on. Music companies are now selling more music via downloads then through traditional shops, originally being forced to change the way they deliver their product by Napster.
•Competitors may force change. New products maybe introduced because of competitors
Every business needs to innovate to stay ahead of the competition. No business can continue to offer the same unchanged product, if they did so, profit would not be maximized and sales would start to fall.
•Consumer needs may change, forcing the company to adapt with these changing needs. If we look at food sectors around the world, consumers are becoming more health conscious, forcing companies to introduce low sugar and fat versions of their existing brands. Coca Cola Zero is a classic example.
•The product maybe at the end of its life cycle, so the company may introduce new and improved updated versions. Microsoft has done this by moving from the Xbox to the Xbox 360.
•The product might be at the maturity stage of its life cycle and might just need to be re-modified to stimulate an increase in sales. Sony PlayStation have done this with the original PlayStation by offering a smaller version called PSOne, and a slim version of the PlayStation 2.
•There maybe environmental changes which the company may want to capitalise on. Music companies are now selling more music via downloads then through traditional shops, originally being forced to change the way they deliver their product by Napster.
•Competitors may force change. New products maybe introduced because of competitors
The marketing concept
The concept of marketing has changed and evolved over time. Whilst in today’s business world, the customer is at the forefront, not all businesses in the past followed this concept. Their thinking, orientation or ideology put other factors rather then the customer first. Let us examine these below.
Production Oriented: The focus of the business is not the needs of the custobmer, but of reducing costs by mass production. By reaching economies of scale the business will maximize profits by reducing costs.
Product Orientation: The company believes that they have a superior product, based on quality and features, and because of this they feel their customers will like it also.
Sales Orientation: The focus here is to make the product, and then try to sell it to the target market. However, the problem could be that consumers do not like what is being sold to them.
Market Orientation: Puts the customer at the heart of the business. The organization tries to understand the needs of the customers by using appropriate research methods, Appropriate processes are developed to make sure information from customers is fed back into the heart of the organisation. In essence all activities in the organisation are based around the customer. The customer is truly king!
In today’s competitive world putting the customer at the heart of the operation is strategically important. Whilst some organizations in certain industries may follow anything other then the market orientation concept, those that follow the market orientation concept have a greater chance of being successful.
what is marketing
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The term marketing has changed and evolved over a period of time, today marketing is based around providing continual benefits to the customer, these benefits will be provided and a transactional exchange will take place.
The Chartered Institute of Marketing define marketing as 'The management process responsible for identifying , anticipating and satisfying customer requirements profitably'
If we look at this definition in more detail Marketing is a management responsibility and should not be solely left to junior members of staff. Marketing requires co-ordination, planning, implementation of campaigns and a competent manager(s) with the appropriate skills to ensure success.
Marketing objectives, goals and targets have to be monitored and met, competitor strategies analysed, anticipated and exceeded. Through effective use of market and marketing research an organisation should be able to identify the needs and wants of the customer and try to delivers benefits that will enhance or add to the customers lifestyle, while at the same time ensuring that the satisfaction of these needs results in a healthy turnover for the organisation.
Philip Kotler defines marketing as 'satisfying needs and wants through an exchange process'
Within this exchange transaction customers will only exchange what they value (money) if they feel that their needs are being fully satisfied, clearly the greater the benefit provided the higher transactional value an organisation can charge.
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