Module 7: Marketing Research Exploratory Research – is conducted if the

researcher would like to gather more

Research – a careful, systematic study in a information about the problem or issue
field of knowledge that is undertaken to being investigated or reduce the available
discover or establish facts or principles. research options to a manageable size.
Business Research – is research intended Ethnographic or Observational Research –
to solve business problems or validate or is done by observing consumer behavior
test existing business theories. through various means
Marketing Research – is the function that Case Analysis – involves the study of a
links the consumer, customer and public to particular company group or person through
the marketer through information. personal interviews or published literature.

Marketing Research serves to provide Different kinds of quantitative market

answers to many questions including research:
those on:
1. Market potentials Descriptive Research – answers the
2. Market share questions who, what, when, why and how in
3. Market characteristics the problem statement.
4. Sales Correlational and Explanatory Research –
5. Business Trends measure the relationships between
6. Short-range forecasts variables to determine their
7. Competitive products interdependence or dependence.
8. Long-range forecasts Casual Research – is the most complicated
9. Existing products kind of quantitative research.

Classification of Marketing Research Market Study – focuses on the target

market and determines and estimates its
Qualitative Marketing Research – involves demand relative to a particular company
exploring and understanding the problem or offering.
issue at hand, reducing the number of Market Survey – is a tool used to gather
options so that only the relevant ones are information about existing or potential
carried for further research, understanding customers in a certain market or population
consumer behavior through observation and
interpretation, or simply studying a company Steps in conducting a market study:
and its operations 1. Define the problem and objectives of the
Quantitative Marketing Research – involves study.
the collection of information, statistical data, 2. Gather secondary data from existing
and precise measurements through literature and studies.
surveys. 3. Prepare a letter of request to conduct a
market study addressed to your respondent
Major types of Qualitative Market or a company.
Research: 4. Conduct a survey
5. Tabulate, analyze and interpret the data
6. Prepare a Market Study Report using the expensive and have less risk so customers
suggested format. do not spend much time deciding on their
purchase.
Module 8: Consumer and Business 2.High Involvement – if the purchase
Markets involves expensive and important products
such as clothing or cars; this means that
Consumer – anyone involved in the process they will exert more effort in
of consuming, using, or buying products for decision-making as the risk of making a
personal use. wrong choice is high.
Household customers – purchases made by 3.Enduring involvement – happens when a
consumers not only benefit them individually person has an ongoing and long-term
but their households as well. interest in a product.
4.Situational involvement – refers to buying
Consumer’s Buying Decision Process: decisions which are necessitated by
circumstances beyond the control of the
1.Need or Problem Recognition – the consumer.
consumer recognizes that he or she has a
need to be satisfied or a problem that must Major influences in the consumer’s
be addressed. buying decision:
2.Information Search – as soon as the 1. The environment
consumer recognizes his or her need, he or 2. Buyer’s black box
she starts searching for products or brands 3. Buyer Response
that will best satisfy the need.
3.Evaluation of Alternatives – the consumer Psychological Factors:
sets his or her evaluation criteria, which can
be both objective and subjective. 1.Motivation – is the driving force within
4.Purchase – the consumer considers other individuals that impels them to action.
issues related to actual purchase such as 2.Perception – refers to how a person is
seller choice (where to buy, availability of aware of and interprets reality through five
product) and terms of sale (whether senses.
payment allows use of credit, installment, 3.Learning – refers to a change in a
etc.) person’s behavior as a result of experience.
5.Post-purchase Evaluation – the consumer 4.Beliefs – refers to a person’s idea about
then examines his consumption experience something and is primarily influenced by
or the actual product performance against learning and knowledge.
his expected satisfaction levels. 5.Attitudes – refer to people’s predisposition
to act favorably or unfavorably toward a
Level of Involvement – refers to the amount certain person, object or idea.
of time and effort spent on each purchase
Business Market – is composed of
4 Levels of Involvement: individuals, organizations or groups who
1.Low involvement – products that are purchase specific products for various
routinely purchased like shampoo and purposes related to business such as
conditioner; these products tend to be less resale, production and operations
Business Customers – purchasers in the
business market. 1.Identification of market segments in terms
of characteristics of prospective customers
Types of Business Markets: they contain.
1.Producer Markets – refer to businesses 2.Determination of whether and to what
that purchase products used for production extent there are differences in the needs or
or business operations. benefits sought by customers in the various
2.Reseller Markets – consist of segments.
intermediaries who buy finished products 3.Evaluation of the present and future
and sell them for profit. attractiveness of each segment.
3.Government Markets – refer to local and
national government units and agencies that Categories of Market Segmentation:
purchase goods and services for their
operations and for providing citizens with 1.Demographic segmentation –is a precise
public goods and services. form of audience identification based on
4.Institutional Markets – involve age, gender, education, occupation, income,
organizations such as charitable, marital status, family size, nationality and or
educational and community organizations religion.
which deal with non-business goals. 2 Geographic segmentation – it involves
segmenting your audience based on the
Module 9: Marketing Segmentation, region they live or work in.
Market Targeting and Market Positioning 3.Geo-demographic segmentation – it refers
(STP) to a range of methods used for classifying
and characterizing neighborhoods or
Market Segmentation – is the process of localities based on the principle that
dividing the total market into particular residents living near each other are likely to
groups or market segments which consist of have similar demographic, socio-economic
people, groups, organizations that have and lifestyle characteristics.
similar needs and wants. 4.Psychographic segmentation – it breaks
down the customer groups into segments
The Advantages of Market Segmentation: that influence buying behaviors such as
beliefs, values, lifestyle, social status,
1.Segmentation forces the marketer to be opinions and activities
aware of realities in the market. 5.Behavioral segmentation – it refers to a
2.Segmentation provides clues in the design process in which customers are divided by
their behavior patterns when interacting with
of products and marketing programs that
a business.
will reach the prospective customers. 6.Other considerations such as occasion or
3.Segmentation can help identify time
opportunities for new product development
4.Segmentation can help improve the Priori segmentation – is a traditional market
strategic allocation of marketing resources. segmentation conducted based on prior
knowledge of the characteristics of the
The Process of Segmenting Markets: market which is acquired through the
marketer’s experience or through a previously used unbranded or
database. noncommercial options.
Post hoc segmentation – market 2.Ex-users – they are the customers who
segmentation based on information used the products in the past but don’t use it
gathered from market research. anymore.
3.Potential users – are customers who are
In terms of income, a market may be interested in the services and products that
subdivided into the ff: are offered to them but not yet purchased.
1.High income group – earning a higher 4.First time users – are those for the first
than average income time using a computer or any product.
2.Middle income group – this refers to a 5.Regular users – they are those customers
class of people in the middle of social who purchase a certain product regularly.
hierarchy
3.Low income group – a household with an Buyers may also be grouped according to
income of 50% less than the middle their loyalty to particular brands:
household income. 1. Those who buy only one brand of a
product
Buyer behavior may be segmented 2. Those who buy two or three brands
according to various categories 3. Those who shift from one brand to
1.Purchase occasion – dividing consumers another
based on different occasions when they 4. Those who have no brand
make purchases or plan to buy. preference
2.Benefits sought – it is the value
proposition your customer is looking to gain Buyers may be grouped according to their
from your product or service. readiness to buy:
3.User status – dividing users into different 1. People who are unaware of the product
groups based on their status to help provide 2. People who are aware of the product
better customer service. 3. People who are informed of the product
4.Usage rate – divide customers into group 4. People who are interested in the
according to how much they use the product
product. 5. People who desires the product
5.Loyalty status – measures the level of 6. People who want to buy the product.
loyalty a customer has with your brand.
6.Readiness stage – the state of People’s attitude toward the product may
preparedness or willingness in which an also be classified according to the degree of
individual consumer may be in regard to the enthusiasm:
purchase of a particular product. 1. People who have an enthusiastic
7.Attitude toward product – it is what the attitude toward the product
customers think and how they feel towards 2. People who have a positive attitude
the product. toward the product
3. People who have an indifferent attitude
Product users according to status: toward the product
1.Non-users – are those who do not 4. People who have a hostile attitude
consider the product itself and may have toward the product.
 Selecting Target Markets:
1.Size – in choosing a market segment, it
must be large enough to be worth serving.
2.Expected growth – there are markets that
are not currently attractive but some of
these may be expected to grow in the
future.
3.Competitive position – the presence of
competition in the segment considered
lowers the firm’s chance of successfully
making profits.
4.Cost of reaching the segment – a market
segment that is chosen must be easily
reached by the firm.
5.Compatibility with the firm’s objectives and
resources – if the firm does not have
enough resources to serve a prospective
segment, the segment must not be selected

Product Positioning – refers to activities

undertaken to create and maintain an idea
of the product in the customers’ minds.
Positioning Statement – defines the purpose
of the brand and is meant to guide
marketers and other members of the
company in their marketing efforts to ensure
that all marketing decisions stay true to the
product or brand identity.
Taglines – are brief and catchy statements
which are designed to convey the
personality and benefits of the product to
consumers
Product repositioning – is done by changing
the brand’s status relative to competing
brands.