Bell Ringer Think-and-Share

1. Bell RingerThink-and-Share • Think of the last time you wrote a research paper. Why was the research important? • Think of a product that was recently released. Was it a success or a failure? • List some reasons why you think that some new businesses have almost immediate success while others fail miserably.

2. McDonalds Market Research • McDonalds is a thriving global business that has experienced success in multiple foreign markets • Why do you think it is important for the company to conduct market research before expanding to a new market?

3. Menu Items in Foreign Markets McAlooTikki Potato, pea, and bread patty Veg Pizza McPuff Crispy crust filled with carrots, bell peppers, beans, onions, peas and cheese McSpicyPaneer Cheese patty

4. Menu Items in Foreign Markets McVeggie Bread, potato, pea, carrots and Indian spices Chicken Maharaja-Mac Big Mac with chicken breast

5. Marketing Information Systems Marketing Co-Op: Chapter 28.1

6. Define Marketing Research • The process and methods used to gather information, analyze it, and report findings related to marketing goods and services

7. What is it used for? • Identify opportunities in marketing • Solve marketing problems • Implement marketing plans • Monitor marketing performance and effectiveness

8. It can apply to any aspect of marketing • Coca-Cola might research the potential sales and market for a new line of fruit drink • BB&T might conduct customer satisfaction research on the quality of its mortgage lending services

9. Company’s can use the research to: • Determine customer attitudes and preferences • Test product features • Determine market size and growth potential • Learn about competitors • Determine buying cycles • Understand company’s public perception

10. Why is Market Research Important • If businesses don’t pay attention to marketing research they could make costly marketing mistakes about: • What products to produce • What price to sell product for • Who will buy the product • How to promote the product

11. Who uses Marketing Research? • Individual Businesses • Various manufacturers • Wholesalers • Retailers • Local, state and federal governments • Non-profit organizations

12. Lean Cuisine • Marketing Research Example: • Stouffers:13 years doing research before starting Lean Cuisine • They studies consumers interest and health dieting • They studied panelist to determine what people liked/disliked about their healthy meals • When they launched the Lean Cuisine line it was a major success with $125 Million in sales in the first year

13. Marketing Information Systems • Define: What is database marketing? • A process of designing, creating and managing customer lists • Identify: What data should be included in marketing information systems? • Customer profile data, company records, competitors records • Analyze: What are some uses for customer lists? • Locating, selecting and targeting customers with special programs

14. Database Marketing • Database marketing, or customer relationship management, is the process of designing creating and managing consumer lists • Database marketing lists are developed from the following: • Face-to-face sales • Direct mail • Telephone or email purchases • Service requests • Website visits

15. What do companies do with this information? • The information collected about consumers is stored in computer databases • Example: American Express • Their database includes what customers buy, where they buy it, where they dine out and how much money they spend • The company uses this info to send their card members special customized offers on products, hotels, restaurants, etc

16. Using Technology to Gather Information • Customer Loyalty Programs • Many businesses use loyalty programs • The program offers discounts and other rewards to shop at a specific retailer • Companies use the loyalty to cards to compile information in their databases

17. Types, Trends, and Limitations of Marketing Research Marketing Co-Op 28.2

18. Quantitative vs. Qualitative Quantitative Qualitative Focuses on small number of people Answers questions as to “why” or “how” • Answers questions has to “how many” or “how much” • Relies heavily on questionnaires to obtain info

19. Attitude Research • Also known as opinion research -designed to obtain info on how people feel • For example: Best Buy Geek Squad • Calling after service to see how satisfied the customer was with their service

20. Market Intelligence • Concerned with: • the location and size of a market • the competition • segmentation within the market for a particular product • Data is used to assemble a profile of: • Present and potential customers • Competition • The overall industry • Helps define target markets for particular products and services

21. Media Research • Also know as advertising research • Determines the effectiveness of various media to advertise a good or service • Can be conducted before or after a media campaign • Media Research measures: • Audience – number of people exposed to the media • Frequency – number of times a viewer is exposed to the media • Reach – percentage of the target audience that sees the media • Ratings – total number of audience impressions delivered over a set period of time

22. Product Research • Evaluates a products design, packaging and usage • Information is also collected about competitors products • Product and packaging is designed, tested, and changed if needed Domino's Focus Group

23. Limitations of Marketing Research • The amount of information that is gathered is limited by the amount of money and time a company can afford to spend • Test markets may give feedback, but it doesn’t mean they will buy the product later