Marketing-Mix Measures

Marketing ResearchAaker, Kumar, Leone and Day Twelfth EditionInstructor’s Presentation Slides1Chapter Twenty-Three2Marketing-Mix MeasuresMarketing Research 12th Edition Phases in New Product Research3Concept GenerationNeed IdentificationConcept IdentificationConcept Evaluation and DevelopmentProduct Evaluation and DevelopmentTesting the Marketing ProgramMarketing Research 12th Edition Concept GenerationPerceptual mapsSocial and environmental trends Benefit structure analysis Product users Focus-group interviews Lead user analysis 4Need IdentificationMarketing Research 12th Edition Concept Generation (Contd.)Are there any major flaws in the concept?What consumer segments might be attracted to it?Is there enough interest to warrant developing it further?How might it be altered or developed further?How are the concepts exposed?To whom are the concepts exposed?To what are they compared?What questions are asked?5Concept IdentificationMarketing Research 12th Edition Product Evaluation And DevelopmentUse TestingVirtual Product TestingBlind use testPredicting Trial PurchasePre-test Marketing6Marketing Research 12th Edition Pretest Marketing Example7The ASSESSOR Laboratory Test Market Research Design and MeasurementMarketing Research 12th Edition Test MarketingSell-in test marketsControlled Distribution Scanner Markets (CDSM)Selecting the test cities RepresentativenessData availabilityMedia isolation and costsProduct flow8Marketing Research 12th Edition Really New ProductsCreate or expand a new category, thereby making cross-category competition the key (e.g., fruit teas versus soft drinks)Are new to customers, for whom substantial learning is often required (i.e., what it can be used for, what it competes with, why it is useful)Raise broad issues such as appropriate channels of distribution and organizational responsibilityCreate (sometimes) a need for infrastructure, software, and add-ons9Marketing Research 12th Edition Pricing ResearchGabor and Grainger methodMulti-brand choice methodResearch for Profit-oriented Pricing Research for Share-oriented Pricing10Marketing Research 12th Edition Pricing Research (Contd.)The pricing pattern that is adopted for increasing market share is to:Offer a lower price (even below cost) when entering the market.Hold that price constant until unit costs produce a desired percentage markup.Reduce price as costs fall to maintain markup at the same desired percentage of costs.The types of information required for this pricing method areThe nature of the experience curve.Breakeven points.Cost of units sold to additional market segments.Competitor costs.Forecast of the ‘‘decline’’ stage of the product life cycle.11Marketing Research 12th Edition Distribution ResearchWarehouse and Retail Location ResearchCenter-of-gravity SimulationComputerized Simulation ModelsCatchment Area AnalysisOutlet Location Research12Center-of-gravity warehouse location to serve five retail stores.Marketing Research 12th Edition Distribution Research (Contd.)Number and Location of Sales RepresentativesSales effort approachStatistical analysis of sales dataField experimentsComputerized models of sales force size and allocation by market and by product line13Marketing Research 12th Edition Advertising ResearchCriteriaRecognitionRecallDay-After Recall (DAR) measure – on-air testPersuasionForced exposure, brand preference change testClutter/awareness scoreAttitude-shift measureImpact on purchase behavior14Marketing Research 12th Edition Advertising Research (Contd.)Sample diagnostic questions: Comprehension of message or sloganCommunication of secondary copy ideasEvaluation of demonstrations, spokesperson, messagePerception of brand uniqueness or brand differentiationIrritating or confusing elementsViewer involvement15Marketing Research 12th Edition Advertising Research (Contd.)Purchase BehaviorCoupon stimulated purchasingSplit-cable testsCopy Test ValidityQualitative ResearchAudience Impressions of the AdAdjective ChecklistEye MovementPhysiological Measurement16Marketing Research 12th Edition Advertising Research (Contd.)Media ResearchMeasuring print vehicle audiencesRecent-reading methodReading-habit methodMeasuring broadcast vehicles audiences17Marketing Research 12th Edition Sales Promotion ResearchPromotional ToolsPrice DiscountsFeaturesDisplaysCoupons / RebatesSweepstakes18Marketing Research 12th Edition Sales Promotion Research (Contd.)Promotional StrategyHi-loEvery Day Low Price (EDLP)19A schematic framework of the major types of sales promotion.Marketing Research 12th Edition Sales Promotion Research (Contd.)20Specific Sales Promotional ToolsMarketing Research 12th Edition TQM – Total Quality Measurement21Marketing Research 12th Edition TQM is a process of managing complex changes in the organization with the aim of improving qualityIs a business philosophy that was used by the Japanese to gain competitive advantage. Now being discovered and used by American organizations. TQM can be defined as a systematic effort at continuous quality improvement of all processes, products, services, and human resources throughout the organization, undertaken with an objective of improving customer satisfaction.TQM – Total Quality Measurement (Contd.)22Marketing Research 12th Edition The process of managing complex change and the effects when one of the links in the chain is missing are depicted in the figure aboveTQM – Total Quality Measurement (Contd.)23Marketing Research 12th Edition Characteristics of an organization that has implemented TQM are:Continuous training and education of everyone in the organizationEstablishment of quantifiable measures of progressFormation of cross functional teams that are empowered and motivatedUse of formal tools, techniques to maintain qualityTotal Quality Management (Contd.)Information RequirementsMeasurement must be specificTrack the correct measureMeasure the outputs of the highest value to the customerMeasure process and resultsAnticipate future customer and process requirements24Marketing Research 12th Edition Total Quality Management (Contd.)Analysis of Data in a TQM CompanyWho performs the analysis?What analytical techniques are used?Which data are analyzed and at what level of detail?How are data aggregated, and how are relations between data groups cross-referenced?How does the company improve its analytical capabilities?25Marketing Research 12th Edition Analysis of Data in a TQM Company26Marketing Research 12th Edition Choose the Right Analytical MethodManage and Maintain the DataData QualityComparisons and BenchmarksBenchmarkingIdentify what is to be benchmarkedIdentify comparative companiesDetermine data collection method, and collect dataDetermine current performance levelsProject future performance levels27Marketing Research 12th Edition Benchmarking (Contd.)Communicate benchmark findings, and gain acceptanceEstablish functional goalsDevelop action plansImplement specific actions, and monitor progressRecalibrate benchmarks28Marketing Research 12th Edition Quality Function Deployment (QFD)29Marketing Research 12th Edition In QFD, a multifunctional team measures and analyzes in great detail both customer attitudes and product attributes. Step 1. Attributes that the customer looks for in the product (CAs) are definedStep 2. Customer evaluations of competing products are obtained for each of the customer attributes determined in step 1.Step 3. Engineering characteristics (ECs) that may affect the attributes are listed.Quality Function Deployment (QFD) (Contd.) 30Marketing Research 12th Edition Step 4. The extent of the impact of each EC on each CA is determined or estimated.Step 5. All this information is summarized in a chart, often called the house of quality (figure on next slide)Step 6. The impact of changes in any engineering characteristic on other ECs is evaluatedStep 7. Members begin to focus on customer attributes in which the product appears weak developing ideas concerning how to improve various engineering characteristics.Quality Function Deployment (QFD) (Contd.) 31Marketing Research 12th Edition Marketing Research in QFD32Marketing Research 12th Edition Marketing research is an invaluable part of QFD.Customer attributes are obtained through conjoint analysis or through other forms of survey research.Customer evaluations of competing products are also obtained through survey research. Hence, a thorough knowledge of marketing research is required.33End of Chapter Twenty-ThreeMarketing Research 12th Edition