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25-keys in-sales-and marketing
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 about. 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 problem. 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 consumer) 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 & effective.) Key – 8 Importance of understanding the consumer – Part 1 What factors influence consumer purchase decisions? 2 main categories or factors composed of Intra & Inter personal variables Intra-personal influencers of consumer purchase decisions Motivation Perception Learning Attitudes Motivation (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 & love Safety Physiological Perception (Second major intra-personal influencer in consumer purchase decisions) Perceptual expectations of consumers can be used to great effect in marketing. Perception is the process by which an individual selects, organizes and interprets informational inputs to create a meaningful picture of the world. 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. Learning (Third major intra-personal influencer in consumer purchase decision) • 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. Attitudes (Fourth major intra-personal variable to influence consumer purchase decision.) • 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 strategy. • 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 CONSUMER PURCHASE DECISIONS Inter-personal variables that influences consumer purchase decisions • Reference groups • Family • Culture Reference Groups (First Inter-personal variable to influence consumer purchase decision.) • 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.) Family (The second inter-personal variable to influence consumer purchase decision.) – 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.) Culture (The second inter-personal variable to influence consumer purchase decision.) • 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??? But, 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. THEREFORE MARKET SEGMENTATION….. 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 market. • 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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