Marketing Strategy Chapter 12

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● need satisfaction ⮚ Often possess some degree of

monopoly power in a given geographic


region
⮚ Service users have less control over the
firm's future

Not-for-Profit Marketing

⮚ Marketing in not-for-profit
organizations

• Operate in both the public and private


sector

• Adopt marketing strategies to meet


Nontraditional Marketing
service objectives

• Communicate their messages through ⮚ Person marketing - Efforts to cultivate


advertisements relating to their goals the

• Form alliances with for-profit firms to attention, interest, and preferences of a


promote each other's causes target market toward a person

Characteristics of Not-for-profit Marketing • Celebrity endorsements

⮚ Focus is to generate revenue to support ⮚ Place marketing - Efforts to attract


their causes and not on the bottom line people and organizations to a particular
⮚ May market tangible goods and services geographic area

⮚ Markets to multiple audiences • Tourism enhancements


⮚ Cause marketing - Identification and ⮚ Marketers realize that consumers are
marketing of a social issue, cause or becoming more and more sophisticated
idea to selected target markets
⮚ Relationship marketing gives a company
⮚ Many profit-seeking firms link their new opportunities to gain a competitive
products to social causes edge by moving customers up a loyalty
ladder
⮚ Strong support among customers and
employees for cause-related marketing • It starts with determining what
⮚ Event marketing - Marketing of customers need and want, then
developing high-quality products to meet those
sporting,
needs
cultural, and charitable activities to
selected target markets
• Also, includes sponsorship of
such events by firms
⮚ Event sponsorships have gained
effectiveness in increasing brand
recognition, enhancing image, boosting
purchase volume
⮚ Organization marketing - Intended to
persuade others to:

• Accept the organization's goals

• Receive its services


Using Social Marketing to Build Relationships
• Contribute to the organization in
some way ⮚ Mobile marketing - Marketing
messages transmitted via wireless
⮚ Adopted by mutual-benefit technology
organizations, service organizations, ⮚ Interactive marketing - Buyer-seller
and government organizations
communications in which the customer
From Transaction-Based Marketing to controls the amount and type of
Relationship Marketing information received from a marketer
⮚ Social marketing - The use of online
⮚ Transaction-based marketing - Buyer
social media as a communications
and seller exchanges characterized by channel for marketing messages
limited communications and little or no
ongoing relationships between the
parties
• Electronic conversations can establish Ensuring that product offerings are
innovative relationships between users available In sufficient quantities to meet
and the business customer demands
2. Selling
Using advertising, personal selling. and
⮚ By converting indifferent customers
sales promotion to match products to
into loyal ones, companies generate
customer needs
repeat sales
⮚ Some of the best repeat customers are 3. Transporting
Moving products from their point of
those who are also willing to spread the production to locations convenient for
word purchasers
4. Storing
⮚ Buzz marketing is the word of mouth
Warehousing products until needed for
messages that bridge the gap between sale
a company and its products
5. Standardizing and Grading
Developing Partnerships and Strategic Alliances Ensuring that product offerings meet quality
and quantity controls of size, weight, and other
⮚ Relationship marketing extends to variables
6. Financing
business-to-business relationships with
Providing credit for channel members
suppliers, distributors, and other
(wholesalers and retailers) and
partners
consumers
⮚ Strategic alliances - Partnerships in
7. Risk Taking
which two or more companies combine
Dealing with uncertainty about future
resources and capital to create
customer purchases
competitive advantages in a new 8. Securing Marketing Information
market Collecting information about
⮚ Forms of alliances consumers, competitors, and channel
members for use in making marketing
● Product development partnerships decisions

• Vertical alliances Ethics and Social Responsibility

⮚ Not-for-profit organizations often use ⮚ Ethics - Moral standards of behavior

strategic alliances to raise awareness expected in a society


and funds for their causes ⮚ Most businesses follow ethical
practices, although there have been
Eight Universal Marketing Functions breaches at times
1. Buying ⮚ Social responsibility – Marketing
philosophies, policies, procedures, and
actions that have the enhancement of Marketing research - Collecting and using
society's welfare as a primary objective information about a market of an overall
industry that will be used to come up with a
⮚ Socially responsible efforts produce
marketing strategy.
such benefits as:
● Improved customer relationships Examples of Marketing Research

1. Surveys/ Questionnaires
• Increased employee loyalty
● Online/ offline surveys to collect
• Marketplace success quantitative data on consumer
• Improved financial performance preferences.
● In-person interviews.
⮚ Sustainable products - Products that
● Telephone interviews
can be produced, used, and disposed of
with minimal impact on the ✔ Quick and inexpensive way of
environment
getting a small quantity of
⮚ Firms stand to gain needed credibility relatively impersonal
from their efforts to protect the information
environment ✔ Many people refuse to take
⮚ Research reveals that customers are part or are reluctant to give
willing to pay a premium for personal information over the
environmental friendly goods and phone
services ✔ Not a viable option in

Strategic Implications of Marketing in the 21st international markets where


Century telephone ownership is rare
● Personal interviews
⮚ Advances and innovations in electronic
✔ Allows researchers to obtain
commerce and computer technologies
have allowed organizations to: detailed information and ask
follow-up questions
• Reach new markets
✔ Researchers can establish
• Reduce selling and marketing costs rapport with respondents and
explain confusing or vague
• Enhance their relationships with
questions
customers and suppliers
✔ Mall intercepts - Interviews
MARKETING RESEARCH AND SALES conducted inside retail
FORECASTING shopping centers
2. Observational Research
● Focus group - A small group of
individuals brought together to discuss
● Observation of customers/ consumers
a specific topic
to understand their behaviors and
✔ Valuable for exploratory preferences.
research
● Website analytics or social media
✔ Drawback is the potential lack interactions (tracking and reviewing
of honesty due to peer pressure visitors on a website and online
✔ Researchers are experimenting interaction)

with online focus groups


● Mail surveys
3. Competitor Analysis
✔ Cost-effective and provides
● Examining competitors' products,
anonymity
pricing, marketing strategies and
✔ Lower response rates than for
market share.
personal interviews
● Engage in benchmarking to understand
✔ Time-consuming
an analyze industry standards.
✔ May be subject to bias through 4. Focus Group
self-selection
✔ Long follow-up time ● A market research method that brings
together 6 to 10 people in a room to
● Online surveys and other Internet- provid feedback regarding a product,
based methods service, concept or marketing
✔ Allow researchers to: campaign.

❖ Increase the speed of 5. Market Segmentation

the survey process


● Dividing the market based on
❖ Increase sample sizes demographics, psychographics and
❖ Ignore geographic behavior to tailor marketing strategies.

boundaries ● Demographics (age, sex, race),

❖ Reduce costs Psychographics (values, desires, goals,


interest, lifestyle).
✔ No industry wide standards
6. Product Testing
define techniques for
measuring Web use
● Pre-launch testing of products or ✔ Sources of internal data are
services to gather feedback and to sales records, financial
identify areas for improvement, to statements, and marketing cost
gauge interest and potential success analyses.
before full scale launch.
11. Interpretative Research
7. Data Analysis
● Researcher spends time studying the
● Analyzing sales data, customer culture
demographics, and other relevant data
● Focus is on understanding the meaning
sources to identify trends, that can
of the product or consumption
inform marketing strategies.
experience in the consumer's life
8. Social Media Listening ● Captures what consumers actually do,
not just what they say they do
● Monitoring social media platforms to
track conversations and sentiments Conduct Exploratory Research
related to a brand, product or industry.
• Sales analysis can compare expected sales
9. Problem Identification with actual sales and be analyzed in a variety of
ways, such as by customer type.
● Defining the problem clearly increases
• Accounting data provides information about
the speed and accuracy of the research financial issues
process
● Confusing symptoms of a problem with
the problem itself should be avoided
● A logical starting point in identifying the
problem - to evaluate the firm's target
market.

10. Exploratory Research

● Process of discussing a marketing


problem with informed sources both
within and outside the firm and Formulate a Market Hypothesis
examining information.
● Using internal data ● Hypothesis - A tentative explanation for
some specific event in-depth research
● Sets the stage for more in-depth ● "Assessing the Impact of In-Store
research Sampling on Consumer Purchase
Behavior: A Quasi- Experimental Study"
● Hypothesis: Increasing the frequency of
social media posts will lead to higher ● Controlled experiment - Scientific
engagement rates among the target investigation in which a researcher
audience. manipulates a test group and compares
the results with those of a control group
● Hypothesis: Increasing the frequency of
social media posts will lead to higher ● Descriptive - Aims to describe
engagement rates among the target characteristics of a population or
audience. phenomenon (something to occur or
exist) without influencing it.

Create a Marketing Research Design ● "Exploring Consumer Preferences and


Behaviors: A Study on Sustainable
● Research design - A master plan or Product Consumption in Urban
model for conducting research Markets"

● Important considerations ● Correlational - Relationship between


two or more variables.
✔ Marketers must be sure the
● "Exploring the Relationship Between
study will measure what they
Social Media Engagement and Brand
intend to measure
Loyalty: A Correlational Study"
✔ Selection of respondents
● Longitudinal - studying the same group
● Quantitative Research design -Used to of participants over an extended time
collect and analyze data in a structured to observe changes, developments or
and numerical manner. trends.
● It involves the use of statistical ● "Examining Consumer Preferences Over
techniques to measure and analyze Time: A Longitudinal Study of Product
variables and relationships within a Satisfaction and Brand Loyalty"
specific population or sample. ● Cross sectional - Involves collecting data
Types of Quantitative Marketing Research from a diverse population at a single
Design point in time.
● "Assessing Brand Loyalty in the
● Experimental - Assess cause and effect
Automobile Industry: A Cross-Sectional
relationships. Survey of Car Owners' Preferences and
Perceptions"

Qualitative Marketing Research Design


make sense of and communicate life
● Seeks to understand the richness,
and life experiences.
depth, and complexity of human
experiences, behaviors, and ● "Decoding Brand Perceptions: Analyzing
phenomena through non-numerical Online Reviews through Textual
data such as interviews, observations, Analysis"
and textual analysis.

Types of Marketing Research Design

● Interview - Qualitative research method Collect Data


used
● Primary data - Information collected for
to collect primary data. It involves
asking one or more people about their a specific investigation
opinions on a company, a product, or a topic. ● Secondary data - Previously published
information
● "Unveiling Consumer Insights: A Deep
✔ Less expensive
Dive into Market Preferences and
Trends" ✔ Less time consuming
● Case Study - Involves an in-depth ✔ Can become obsolet
investigation of a single individual,
group, event, or community in real life ✔ May not be completely relevant
contexts.
Interpret and Present Research Data
● Exploring Market Entry Strategies: A
Case Study on the Launch of a New ● Present findings in a format that allows
Product in a Competitive Industry"
managers to make effective judgments
● Observational - Is a research technique
● Marketing researchers and research
where you observe participants and
users must cooperate at every stage in
phenomena in their most natural
the research process
settings.
● Reports must be clear and concise
● "Observing Social Media Engagement
and Brand Perception: A Study of Fast Secondary Data Collection
Fashion Retailers"
● Textual Analysis - Involves ● Comes from many sources

understanding language, symbols, ✔ Internal data - Sales records,


and/or pictures present in texts to gain
product performance reviews
information regarding how people
✔ External data - Government ● Classification of samples
records, syndicated research
✔ Probability sample
services
● Government data ✔ Nonprobability sample

✔ Nation's most important source Probability Sample


of marketing data
● Sample that gives every member of the
✔ Government statistics
population a chance of being selected
● Private data - Variety of sources
✔ Simple random sample - Sample
✔ Social Media, Storages in which every individual in the
relevant universe has an equal
✔ Radio-frequency identification opportunity to be sampled
technology
✔ Stratified sample - Sample
● Online sources of secondary data constructed to represent
randomly selected subsamples
✔ Online databases
of different groups within the
✔ Research aggregators - total sample
Companies that acquire, ✔ Cluster sample - Researchers
catalog, reformat, segment, and select a sample of subgroups
resell premium research reports (or clusters) from which they
✔ Examples: Datamonitor, draw respondents
eMarketer Nonprobability Sample
● Social networking sites
● Sample that involves personal judgment
in the selection process
✔ Convenience sample - Sample
selected from among readily
available respondents
✔ Quota sample - Sample divided
Sampling Techniques to maintain the proportion of
certain characteristics among
● Sampling - Process of selecting survey different segments or groups
seen in the population as a
respondents or research participants
whole
● Population (universe) - Total group of
people a researcher wants to study Experimental Method
● Test marketing - Introducing a new ● Social media analytics - The process of
product in a specific area and then collecting data from social media
observing its degree of success networks and gaining insights in order
to improve the performance of social
✔ Can be expensive
media campaigns.
✔ Competitors can learn about
Data Mining
new products quickly
✔ Some products are not well ● Companies use data mining software to
suited to test marketing. learn more about their customers. It
can help them to develop more
Conducting International Marketing Research
effective marketing strategies, increase
sales, and decrease costs.
● Follow same basic steps as for domestic
marketing research Business Intelligence

● Researchers must be aware of cultural


● Process of gathering information and
and legal environments
analyzing it to improve business
● May have to adapt research methods to strategy, tactics, and daily operations
local conditions ● Can tell the firm how its own sales

Interpretive Research operation is doing or what its top


competitors are up to
● Researcher spends time studying the
cultur
Competitive Intelligence
● Focus is on understanding the meaning
of the product or consumption ● Focuses on finding information about
experience in the consumer's lif
competitors' secondary sources
● Captures what consumers actually do,
● Aim is to uncover the specific
not just what they say they do
advantages a competitor has
Computer Technology in Marketing Research
Sales Forecasting

● Computers enable marketers to analyze


● Estimate of a firm's revenue for a
vast amounts of data to understand
specified time period
consumer behavior, market trends, and
competitors. This includes data from ✔ Qualitative forecasting - Use of
customer surveys and social media subjective techniques to
analytics. forecast sales
● Customer Survey
❖ The jury of executive
opinion and surveys of
buyer intentions
✔ Quantitative forecasting - Use
of statistical forecasting
techniques

Strategic Implications of Marketing in the 21st


Century

● Marketing research can help an


organization develop effective
marketing strategies
● Marketing research ideally matches
new products to potential customers
● Marketing researchers have a broad
range of techniques to collect
quantitative and qualitative data

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