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25-keys in-sales-and marketing


25-keys in-sales-and marketing

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									This is the ppt translation of the second part of 25
keys to sales & marketing, an audio portable MBA
course, which has been developed by New York Times
publishing, with the contribution of some of the best
known business academicians and practitioners of the
contemporary world. This is only a reproduced
graphical version of the same with no commercial
motive. It has been developed for better self learning
and for assistance to the large community of several
business practitioners & students, who are in constant
pursuit for quality stuff on-line.
                     - Saurabh
25 Keys in Sales & Marketing

           Key - 6

 Why the lack of Marketing
Research means flying blind?
   What is Marketing Research and
          why is it needed?
Marketing Research is the systematic gathering,
 recording and analyzing of data, about problems
 relating to the marketing of goods and services.

It is essentially, the corporation’s eyes and ears to
   the outside world.

Marketing Research helps companies to react and
 respond to the marketing issues.
  What major research activities are
   undertaken by the companies?
In general, marketing research activities fall under 3
   different categories –

 Exploratory Research

 Descriptive Research

 Causal Research
              Exploratory Research
 Exploratory research is a type of research conducted because a problem has
  not been clearly defined. This genre of research simply allows the marketer to
  gain a greater understanding of something that s/he doesn’t know enough

 It helps to determine the best research design, data collection method and
  selection of subjects.

 This kind of research is used to increase familiarity with the marketing

 The results of exploratory research are not usually useful for decision-making
  by themselves, but they can provide significant insight into a given situation.

 Used to establish priorities for future research.

 Used to clarify concepts.
             Descriptive Research
 Descriptive research is conducted to determine/portray the
  characteristics of marketing phenomenon & determine their frequency
  of occurrence.

 For instance, this research could be used in order to find out what age
  group is buying a particular brand of cola, whether a company’s
  market share differs between geographical regions or to discover how
  many competitors a company has in their marketplace.

• Descriptive research, also known as statistical research, describes
  data and characteristics about the population or phenomenon being
  studied. Descriptive research answers the questions who, what, where,
  when and how.

• Although the data description is factual, accurate and systematic, the
  research cannot describe what caused a situation.
              Causal Research
 Goal of this research is predictive using certain
  independent variables to predict the value of a
  dependant measure.

 Independent variables e.g. household income, age
  and gender.

 Typically in marketing, causal research is used to
  examine the predictive relationship between sales,
  as a function of advertising expenditure.
                          Key – 7
  (A guide for the marketing manager’s involvement in the
                     research process)

 Marketing manager, who is the recipient of such
  marketing research studies should be aware of all
  the issues involved in research process.e.g. from
  sampling issues, to assumptions about
  representative ness.

 Marketing manager should be familiar enough
 with all marketing research concepts to question
 the reliability & validity of a study, and to
 understand why extremely different answers can
 be received for identical questions.
    What exactly should the Marketing Manager know about the
 marketing research to question the validity & reliability of a study???

 Understanding when market research is needed. (types of information
  that can be obtained through research; questions related to consumer’s
  purchase behavior; information about the present & the recent past of

 Deciding how much to spend on research.

 Ensuring that the data collected is relevant to the decision being made.
  (backward marketing research – generating synthetic data with a
  purpose to help marketing manager visualize what actual data may
  look like from the proposed study.)

 Selecting the most appropriate format to present the data. (Simple &
                      Key – 8
 Importance of understanding the consumer – Part 1

What factors influence consumer purchase

 2 main categories or factors composed of
    Intra & Inter personal variables
 Intra-personal influencers of consumer purchase decisions

 Motivation

 Perception

 Learning

 Attitudes
  (Maslow says – that everyone is motivated by needs & wants.)
 One Product can satisfy many needs at one time!
 It is in the interest of the marketer to associate the product with a higher level need.
 (Apart from satisfying some basic need, product should go further to provide
 sophistication & self esteem.)
 Consumers project their image through the brands they purchase.

                   Maslow’s hierarchy of needs
                                                            Self Actualization

                                                             Self Esteem
                                                             Feeling of belonging &

     (Second major intra-personal influencer in consumer
                    purchase decisions)

 Perceptual expectations of consumers can be used to great effect in

 Perception is the process by which an individual selects, organizes and
  interprets informational inputs to create a meaningful picture of the

 Consumers see what they expect to see, and what they expect to see
  usually depends on their general beliefs and stereotypes.

 Marketers need to be aware of this fact about perception so that they
  may be able to tailor their marketing stimuli (4 Ps), specifically for
  their target market.
(Third major intra-personal influencer in consumer purchase
• Learning is what we remember

• Those behaviors that result from
   – Repeated experience
   – Thinking

• We buy products, with which we‘ve had favorable
  experience & avoid products that we evaluate unfavorably.

• It is in marketer’s great interest to try and create brand
  loyalty through learning process.
  (Fourth major intra-personal variable to influence consumer purchase
• Attitudes are directed toward objects, people, places or events and
  represents feelings & dispositions, in which people believe strongly
  enough that they are willing to take an action.

• Typically perceived as a precursor to behavior, with some exceptions.

• Where a favorable attitude leads to purchase and an unfavorable does
  not, hence they are extremely significant in marketing & advertising

• In marketing & advertising, marketer is therefore focused toward
  attitude change for products & brands. Attitude toward a brand or a
  product can typically be changed through an adaptation of the product.

• Can also happen by repositioning a brand in advertising.
                      Key – 8
 Importance of understanding the consumer – Part 2

Inter-personal variables
                 that influence

 Inter-personal variables that influences consumer
                purchase decisions

• Reference groups

• Family

• Culture
                     Reference Groups
  (First Inter-personal variable to influence consumer purchase

• Reference groups are composed of people whom a
  prospect looks to in forming attitudes and beliefs.
• One emulates certain reference groups or
  aspiration-al groups. Whereas, one is a member of
  some group like membership groups.
• Brands & product categories that are closely
  related to socialization processes are more
  strongly influenced by reference groups.
  2 important functions of reference
               groups –
– They influence a person’s attitude & self concept.
– They create pressures for conformity.

(If a product is considered strongly influenced by
   reference groups, the marketer might use it as an
   advertising design to show social acceptance if
   you buy or consume a particular brand.)
(The second inter-personal variable to influence consumer purchase

– The husband’s, wife’s or children’s dominance regarding
  a purchase decision is shown to vary as a function of
  product category.

– On a given product category, the husband is known to
  dominate on certain issues, and the wife on others.

– The implications for marketers regarding family variable is
  that which member of the family dominates the purchase
  decision, typically down to the attribute level. (If such
  information is known, marketing communications can be
  targeted to the appropriate member of the family, who is
  influencing that part of the decision.)
   (The second inter-personal variable to influence consumer purchase

• Culture is defined as the whole set of beliefs,
  attitudes & ways of doing things of a reasonably
  homogeneous set of people.
• Study of culture is not all that simple – because
  there are a number of sub-cultures in the society.
• Marketer must be aware of culture/customs not
  only in case of international marketing but also in
  case of domestic marketing.
                          Key – 10
   (Why selling to the entire market may not be a good idea?)

It sounds reasonable to market your goods to the entire
market. Isn’t it???
If you tend to sell everything to everyone, the image of
the company becomes cloudy and its marketing
communication can never be free from ambiguity.

  What is Market Segmentation?
• Marketing Segmentation is the subdivision of market into
  distinct subsets of consumers, where any subset may be
  selected as a target market, which is to be reached by a
  specific marketing mix.

• It is the process of identifying the groups of buyers with
  different purchasing needs or requirements.

• By market segmentation, one can gain a larger presence
  from a smaller part of the total market.
          5 step process of
     Marketing Segmentation…
•   Identification of market segments through salient features explored through
    market research. (e.g. gender, age, income, etc.)

•   Determining the size and value of each market segment. (based on factors such
    as purchase rate, family size, existing competition, etc.)

•   Determining the competition and examining how they are positioned n the

•   Looking for opportunities by identifying market segments that are not being
    currently served by any existing brands.

•   Once the market segment is identified, co-related characteristics of the
    segments must also be identified. (demographic, geographic & psychographic
    characteristics of potential consumers should be identified.)
             Advantage of
      Marketing Segmentation…
•   Market Segmentation allows brands to become a large fish in a smaller market.

•   Because the product is targeted to a specific market, the marketer is in a better
    position to spot, compare & adjust to the ever changing market opportunities.

•   It becomes easier to examine the needs of the segment in the light of the
    offerings from the competitors.

•   Seller can more easily develop marketing programs and budgets, based upon a
    clear idea of the response characteristics of specific market segments, as
    supposed to the entire market.

•   It becomes significantly easier for the customer to recognize the distinctive
    image and characteristic of each product segment of the brand, who has
    effectively segmented the market on a basis of a demographic variable.
Different ways (factors) to segment
           the markets –
•   Lifestyle
•   Personality
•   User rate
•   User status
•   Age
•   Gender
•   Family size
•   Income                           Demographic factors
•   Educational level
•   Family life cycle stage       • These factors are closely
•   Religion                        associated with consumer needs &
•   Nationality (International)     wants;

                                  • These are easily measurable.

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