Marketing Research and Strategy

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          Marketing Planning and Research

         “The Process of formulating Goals and Objectives
          and developing Different ways to achieve them is
          called Planning”

Why Planning?
 Planning is necessary because it provides many benefits such as:
  It encourages Managers to think ahead systematically.
  It forces managers to clarify objectives and policies
  It helps in better coordination of company efforts
  It provides clearer performance standards for control
  It helps company to anticipate and respond to environmental
 changes and sudden developments.

Strategic Planning:
“The Process of Developing and maintaining a Strategic fit between
the organization’s goals and capabilities and its changing marketing
opportunities. It involves defining a clear company mission, setting
supporting objectives, designing a sound business portfolio, and
coordinating functional strategies”
It is a hard task of selecting an overall company strategy for long run
survival and growth.
Strategic planning sets the stage for the rest of the planning in the
Corporate Level                                            Business Level
Defining            Setting              Designing             marketing
Company             company              Business              and other
Mission             Objectives           Portfolio             functional
                    and Goals                                  strategies

Defining Marketing Mission (Mission Statement)
An organization exists to accomplish something. At first, it has a clear
Mission, but over time its mission may become unclear as the
organization grows, adds new products and markets, or faces new
conditions in the environment.
Therefore when management senses that the organization is drifting
from its mission, it must renew its search for purpose.

Mission statement is “ a statement of the organization’s purpose.
What it wants to accomplish in the larger environment.”
Studies have shown that firms with well-crafted mission statements
have better organizational and financial performance.

To Define a Good Mission statement for the company, there are some
Characteristics which should be kept in view.
A mission statement should be,
Market oriented:- a market oriented Mission statement
defines the business in terms of satisfying basic customer needs.
Below are few examples of Market oriented Mission statement.
(Product Oriented)               (Market Oriented)
We make Cosmetics.               We sell lifestyle and self
     (Revlon)                    expression; success and status;
                                 Memories; hopes, and dreams.

We run discount stores.      We deliver low prices every day
     (Wal-Mart)               and give ordinary folks the
                                 Chance to buy same things as rich

It means it should be achievable in real terms.

Some mission statements are written for public relations and lack real
guidelines or inspirations, which should be avoided.

Fit to market environment:-
Mission should fit market environment. As environment changes, mission
should be revised accordingly in long run.

Distinctive Competencies:-
It should represent distinctive competence in relation to products and services
provided by the company.

Finally, Mission should be motivating enough for the workers who work with
the company to achieve its prime objectives.

Setting Company Objectives and Goals:-
The company’s mission needs to be turned into detailed supporting objectives
for each level of management. Each manager should have objectives, and be
responsible for reaching them.
Mission leads to hierarchy of objectives, including Business Objective and
Marketing objectives.

Hierarchy of Mission, Objectives and Goals


          Marketing                     Business
          Objective                     Objective

 Goal 1               Goal 2   Goal 1               Goal 2


Business portfolio:
      Collection of Business and products that make up the company. The best
business portfolio is the one that best fits the company’s strength and
weaknesses to opportunities in the environment.

    Analyze its current business portfolio or strategies business units (SBUS).
    Decide which SBUs should receive more less or no investment.
    Develop growth strategies for adding new products or business to the


      The process by which management evaluate the products and business
marketing which makeup the company.
            These can be called the strategies business Units A (SBU) is a unit
of a company that has a separate mission and objective and that can           be
planned independently from the other company businesses. An SBU can be
company division o some time a single products or brand.
      The next step in business portfolio analysis calls from management to
assess the attractive ness of its various SBU’S and decide how must support

each deserve it is a usually a good idea of focus on adding products and business that fit
closely with the firms a care philosophy and completeness.
       The purpose strategies planning is to find ways in which the company can
best use    its strength t take advantage of attractive opportunities             in the
environment so most standard portfolio analysis method evaluate SBUS on
Two important dimension the attractiveness of the SBUS market or industry
and the strength of the SBUS position in that market or industry the best
known portfolio planning method was developed by the Boston consulting
group leading management consulting firm.

       Portfolio planning method that execute a company’s (SBU’s) in term of
their market growth rate and relative market share. SBU’s are classified as
stars, cash cows, question marks or dogs.

       Using the (BCG) approach a company classifies all its SBUs according to
growth share martin.

                                       ANALYZING CURRENT SBU’S.

                                      RELATIVE MARKET SHARE
                                          HIGH                    LOW

                                            STARS              QUESTION MARKS ?
                                                                High growth, low
                                        High Growth & Share
           Market Growth Rate High

                                        Profit potential
                                                                Build into stars or

                                        My need heavy
                                                                  phase out
                                          investment to grow
                                                                Require cash to hold
                                                                  market share

                                     CASH COWS                        DOGS
                                        Low growth, high       Low Growth & Share
                                          share                 Low profit potential
                                        Established,
                                          Successful SBU’s

                                        Produce Cash

      Eventually their growth will slow down and they will trun into cash cows.

      These established and successful SBUs need les investment to hold their market
share thus, they produce a lot cash to they the company uses to pay its bills and to
support other SBUS that Need investment.

      They require a lot of cash to hold their share let alone increase it management
needs to thank hard about which question marks it should try to build into stars and
which should pleased out.

      They may generate enough cash to maintain them selves but not promise to be
large source of cash.
      The ten circles in the growth share martin represent a company’s ten current
SBUS they company has two stars two cash cows three question mark three dogs the
area the circle are proportional to the SBUs dollar sales this company in fair shape
not in a good shape it wants to invest in the more promising questions marks to mark
them stars and to maintain the stars so that they will become cash cows s their
markets mature.
      Once it has classified its SBUs the company must determine what role which
will play in the future one of four strategies can be pursued for each SBU the
company can invest more in the business unit order to build its share.
      As time passes, SBUS change their position in the growth share martin each
SBU has a life cycle many SBUS start out as question marks and move into star
category if they succeed they later become cash cows as market falls then finally die
off or turn into dogs toward the end of their life cycle the company needs to add new
products an units continuously so that some of them will be         become star and
eventually cash cow that will help finance other SBUs.

        The market mix consists of major components product, place promotion of
price. Thee are decisional variable because market manager can very the amount of
each element. One primary goal is create. & maintain a marketing mix that satisfies
consumers need for a general product. These components are affected in many
ways by market environment variables. Marketing mix variable often are
viewed as controllable variable because they can be changed but there is limit
that how much they could be changed eg: due economic situation or
government regulation a manager may not be free to adjust price day by day.
Promotional companies & methods used to distribute products cannot change
        Market managers must develop marketing mix that prices an matches the
need of peoples the target market before dong this they should have up to date
information. This information may be collected about age, income, race;
education level of people is market. Their preference towards products design,
texture, their attitude towards competitors, products, service price & intensity
of frequency with they use the product.

   1.     PRODUCT VARIABLE: A product can be good service or an
          idea. The actual production of products is not marketing activity.
          However marketers do research about consumers products want &
          they design the products to create & change package & branch names
          repair & warranty service also may be a part of decision include in
          product variable. It is important decision related activity because they
          are involved directly with creating want satisfying. To maintain a
          satisfying set of products that will help an organization achieve its
          goal. Marketer should develop new product, modify existing ones &

            eliminate those which are not satisfying the buyer & fields acceptable
   2.       PLACE VARIABLE: To satisfy consumer products must be
            available at right time in convenient & accessible location. A market
            manager attempts to make products available in quantities desired to
            as many customers as possible. He may involve in selecting &
            motivating intermediaries *whole sellers & retailers) establish &
            maintain inventory control procedure & developing transport &
            storage system. A market manager holds the total inventory
            transportation o& storage.

                           COST AS LOW AS POSSIBLE:

   3.       PROMOTION VARIABLE: The promotion variable is used to
            facilitate exchange by information to one or more groups of people
            about organization & might be used to increase public awareness of
            an organization, a new products or a new brand it may be also used to
            renew interest I product which is declining.
PRICE VARIABLE: in area of price variable marketing manager usually
have a hand in establishing pricing policies & determining product price, price
is important to consumer because they are concerned about value obtain in an
tool, in fact extremely intense price competition sometimes leads price war.
Accor economic & demand of product, price makers sate the price. To control
over market organization set the price in such a way that it fields in more
Developing & maintaining an effective marketing mix is major requirement for

                          Marketing mix

The term "marketing mix" was first used in 1953 when Neil Borden, in his
American Marketing Association presidential address, took the recipe idea one
step further and coined the term "marketing-mix". A prominent marketer, E.
Jerome McCarthy, proposed a 4 P classification in 1960, which has seen wide
use. The four P’s concept is explained in most marketing textbooks and classes.

Four P's
Elements of the marketing mix are often referred to as 'the four Ps':

Product –
 A tangible object or an intangible service that is mass produced or
manufactured on a large scale with a specific volume of units. Intangible
products are service based like the tourism industry & the hotel industry or
codes-based products like cell phone load and credits. Typical examples of a
mass produced tangible object are the motor car and the disposable razor. A
less obvious but ubiquitous mass produced service is a computer operating
system. Packaging also needs to be taken into consideration. Every product is
subject to a life-cycle including a growth phase followed by an eventual period
of decline as the product approaches market saturation. To retain its
competitiveness in the market, product differentiation is required and is one of
the strategies to differentiate from its competitors.

Price –
 The price is the amount a customer pays for the product. It is determined by a
number of factors including market share, competition, material costs, product
identity and the customer's perceived value of the product. The business may
increase or decrease the price of product if other stores have the same product.

Place –
Place represents the location where a product can be purchased. It is often
referred to as the distribution channel. It can include any physical store as well
as virtual stores on the Internet. Place is not exactly a physical store where it is
available Place is nothing but how the product takes place or create image in
the mind of customers. It depends upon the perception of customers.

 Represents all of the communications that a marketer may use in the
marketplace. Promotion has four distinct elements: advertising, public
relations, personal selling and sales promotion. A certain amount of crossover
occurs when promotion uses the four principal elements together, which is
common in film promotion. Advertising covers any communication that is paid
for, from cinema commercials, radio and Internet adverts through print media
and billboards. Public relations are where the communication is not directly
paid for and includes press releases, sponsorship deals, exhibitions, conferences,

seminars or trade fairs and events. Word of mouth is any apparently informal
communication about the product by ordinary individuals, satisfied customers
or people specifically engaged to create word of mouth momentum. Sales staff
often plays an important role in word of mouth.

Extended Marketing Mix (3 Ps)
Now a days three more Ps have been added to the marketing mix namely
People, Process and Physical Evidence. This marketing mix is known as
Extended Marketing Mix.
All people involved with consumption of a service are important. For example
workers, management, consumers etc. It also defines the market segmentation,
mainly demographic segmentation. It addresses particular class of people for
whom the product or service is made available.
 Procedure, mechanism and flow of activities by which services are used. Also
the 'Procedure' how the product will reach to end user, after starting its
journey from manufacturer.
Physical Evidence:
 The environment in which the service or product is delivered, tangible are the
one which helps to communicate and intangible is the knowledge of the people
around us and Public Relations (see Product above).

Four Cs

Robert F. Lauterborn proposed a four Cs(2) classification in 1993.[4] The Four
Cs model is more consumer-oriented and attempts to better fit the movement
from mass marketing to niche marketing. The Product part of the Four Ps
model is replaced by,

 or Consumer Models, shifting the focus to satisfying the consumer needs.
Another C replacement for Product is Capable. By defining offerings as
individual capabilities that when combined and focused to a specific industry,
creates a custom solution rather than pigeon-holing a customer into a product.
Pricing is replaced by

 Reflecting the total cost of ownership. Many factors affect Cost, including but
not limited to the customer's cost to change or implement the new product or
service and the customer's cost for not selecting a competitor's product or
service. Placement is replaced by Convenience. With the rise of internet and
hybrid models of purchasing, Place is becoming less relevant.

 Takes into account the ease of buying the product, finding the product, finding
information about the product, and several other factors. Finally, the
Promotions feature is replaced by Communication which represents a broader
focus than simply Promotions.

can include advertising, public relations, personal selling, viral advertising, and
any form of communication between the firm and the consumer. The four Ps
are (product, promotion, price, and place)

Marketing plan
A marketing plan is a written document that details the necessary actions to
achieve one or more marketing objectives. It can be for a product or service, a
brand, or a product line. Marketing plans cover between one and five years. A
marketing plan may be part of an overall business plan. Solid marketing
strategy is the foundation of a well-written marketing plan. While a marketing
plan contains a list of actions, a marketing plan without a sound strategic
foundation is of little use.

Marketing planning aims and objectives
Behind the corporate objectives, which in themselves offer the main context for
the marketing plan, will lay the "corporate mission," which in turn provides
the context for these corporate objectives. In a sales-oriented organization, the
marketing planning function designs incentive pay plans to not only motivate
and reward frontline staff fairly but also to align marketing activities with
corporate mission.

This "corporate mission" can be thought of as a definition of what the
organization is, of what it does: "Our business is …” This definition should not
be too narrow, or it will constrict the development of the organization; a too
rigorous concentration on the view that "We are in the business of making

meat-scales," as IBM was during the early 1900s, might have limited its
subsequent development into other areas. On the other hand, it should not be
too wide or it will become meaningless; "We want to make a profit" is not too
helpful in developing specific plans.

A bell suggested that the definition should cover three dimensions: "customer
groups" to be served, "customer needs" to be served, and "technologies" to be
utilized . Thus, the definition of IBM's "corporate mission" in the 1940s might
well have been: "We are in the business of handling accounting information for
the larger US organizations by means of punched cards."

Perhaps the most important factor in successful marketing is the "corporate
vision." Surprisingly, it is largely neglected by marketing textbooks, although
not by the popular exponents of corporate strategy - indeed, it was perhaps the
main theme of the book by Peters and Waterman, in the form of their "Sub-
ordinate Goals." "In Search of Excellence" said: "Nothing drives progress like
the imagination. The idea precedes the deed." If the organization in general,
and its chief executive in particular, has a strong vision of where its future lies,
then there is a good chance that the organization will achieve a strong position
in its markets (and attain that future). This will be not least because its
strategies will be consistent and will be supported by its staff at all levels. In this
context, all of IBM's marketing activities were underpinned by its philosophy of
"customer service," a vision originally promoted by the charismatic Watson
dynasty. The emphasis at this stage is on obtaining a complete and accurate

           Developing Growth Strategies

Most people have unsatisfied needs, and marketers should develop opportunities
around these needs. It is useful to develop a framework for exploring any existing
opportunities. It shows four broad strategic options available to companies,
depending on whether the product and the market are new to the company. The
resulting Grid can be useful starting point for market researching for growth

   Expansion Grid
A portfolio planning tool for identifying company growth opportunities through
market penetration, market development, product development or diversification.

                        Present Product                      New Product

Present                                                     Product
                       Market Penetration

New Market           Market Development                  Diversification

Market penetration:-
Its aim at increasing the sale of the company’s present product in its
present markets. The company may try to increase customer rate of
use, or attract competitor’s customer.
Promotion alone may not be effective. A company may need to
increase the number of stores in its existing geographic markets;
short term price reduction may also help.

Market Development:-
A market development strategy involves increasing sales by selling
existing products in new markets. This may involve merely
advertising in different media to reach new target customers.
For example:
McDonalds effectively reach new customers by opening new outlets at
different places.

Product Development:-
Product development strategy new or improved products at existing
markets. An awareness of the present markets needs to allow a
company to recognize new ways of satisfying customers.
Computer software companies like Microsoft boost sales by
introducing new versions of popular programs.

A diversification strategy involves the company moving into totally
different lines of business. This may include entirely un-familiar
products and markets.

The Importance of Information
Companies need information about their:
       Marketing environment
       Customer needs

Marketing Environment:
The actors and forces outside the marketing that affect the marketing
management’s ability to built and maintain the successful relationship with the
target customers.

is strong and dynamic in most markets. So it essential for a firm to keep
developing new products-as well as modifying its current products-to meet
changing customer needs and competitors' actions..

Consumer needs:
 Consumers adjust purchasing behavior based on their individual needs and
interpersonal factors. In order to understand these influences, researchers try
to ascertain what happens inside consumers' minds and to identify physical and
social exterior influences on purchase decisions.

Managers don’t need more information, they need better information.

    What is a Marketing Information System
   A MIS consists of people, equipment, and procedures to gather, sort,
   analyze, evaluate and distribute needed, timely, and accurate information to
   marketing decision makers.
   The MIS helps managers to:
         1. Assess Information Needs,
         2. Develop Needed Information,
         3. Distribute Information.

Assess Information Needs:
The marketing information system primarily serves the company’s marketing
and the other managers. However, it may also provide the information to
external partners. Such as suppliers, resellers or marketing services agencies.

Develop Needed Information:
Marketers can obtain the needed information from internal data, marketing
intelligence and marketing Research…

Internal Data:
Computerized Collection of Information from Data Sources (i.e. accounting)
Within the Company.

Marketing Intelligence:
Collection and Analysis of Publicly Available Information about Competitors
and the Marketing Environment (i.e. Technological).

Marketing Research:
Design, Collection, Analysis, and Reporting of Data about a Specific Marketing
Situation Facing the Organization.

Distribute Information:
         Marketing information has no value until it is used to make better
         marketing decisions. Thus, the marketing information system must
         make the information readily available to the managers and other who
         make marketing decisions or deal with the customers. In some cases
         this means providing managers with regular performance reports,
         intelligence update and reports on the results of research studies.

                     MARKEETNG RESEARCH

Marketing research is the systematic design , collection, analysis and reporting
of data to relevant specific marketing situation facing an organization.
For example : Marketing research can help marketers to understand customer
and purchase behavior, It can also help them to assess market potential and
market share or to measure the effectiveness of pricing, product, distribution
and promotion activities.

      Defining the      Developing the     implementing       interpreting
      Problem and       research plan      the research       and reporting
      Research          for collecting     plan--collecting   the findings
      Objectives.       Information.       And analyzing
                                           The data

     Define the problem and research Objectives..

Marketing manager and researcher must work closely to gather to define the
problem and agree on research objectives. Researcher must define, understand
and evaluate the problem, A marketing research project may have one three
types of objectives…

       Exploratory Research

       Descriptive Research

       Causal Research

Exploratory Research:-
Marketing research to gather preliminary information that will help you to
suggest hypothesis…

Descriptive Research:-
Marketing research to better describe things as market potential for product or
demographics and consumer attitude….

Causal Research:-
Marketing research to test hypothesis b/w cause and effect relationship..

                                   Step 2:
                  DEVELOP RESEARCH PLAN
                    (For collecting information)

Once the problem and objective has been defined clearly. Researcher must
determine exact information needed .Develop the research plan for collecting
information. To meet the manager information needs, research plan can call for
secondary data or primary data or both.

Secondary data:
Consist of information that already exists somewhere having been collected for
another purpose.

Primary data:

Consist of information collected for specific purpose at hand.
But these both information must be current, accurate, reliable and important.



In most cases however researcher must collect primary data, but it need to
make sure that it must be current accurate and unbiased...there are different
ways to collect primary data like.
      OBSERVATIONAL RESEARCH.          (Exploratory)

      SURVEY RESEARCH.                 (Descriptive)

      EXPERIMENTAL RESEARCH.           (Causal)

Involves gathering primary by observing relevant people action and situation,
Observational research is best suited for Exploratory research.

It is most widely used method for collecting primary information.
Gathering primary data by asking people question about their knowledge,
attitude, preference and buying behavior. it is suited for descriptive

Gathering primary data by selecting group matched people to determine cause
and affect relationship, it is best suited for causal information.

          Primary data can be well collected by using

            CONTECT METHOD
                Mail Questionnaire.

                Telephone Interviews.

                Personal Interviews (individual & group interviews).

                  Online Interviews.

Mail Questionnaire:
Mail Questionnaire used to collect large amount of information at lower cost
per respondent, respondent may more honest answer to more personal question
in mail questionnaire.
Telephone Interviews:
Telephone Interviews are one of the best widely used method for collecting
information quickly and it has greater flexibility than mail questionnaire.
Personal Interviews:
It takes two forms (individual & group interviews& group interviews):

Individual Interviews:
 Involves talking with the people at their homes, offices, street and shopping
malls while,

Group Interviews:
Consist of inviting six to ten people with trained moderate and talk about
product, service and organization..

Online Interviews:-
It includes collecting primary data through internet surveys and online focus
group interviews.

                         Develop the Research Plan
                      Planning Primary Data Collection
                                           Contact method table

                              Mail           Telephone         Personal          Online
     Flexibility              Poor             Good            Excellent         Good
     Quantity of              Good              Fair           Excellent         Good
     data collected
     Control of             Excellent            Fair            Poor             Fair
     Control of               Fair           Excellent            Fair            Poor
     Speed of data            Poor           Excellent           Good           Excellent
     Response Rate            Fair               Good           Good             Good


Research proposal should be presented in written proposal. A written proposal
is especially important when the Research Project is large and complex.
Proposal must cover management problem addressed and the research
objective. The information which is being collected and way the results which
will help making decision making and proposal should also cover research cost.

                                         STEP 2.
               DATA COLLECTION)

“ Here I will define planning of sampling in particular marketing research.
Marketing research usually draw conclusion about large group of consumers by studding a
small sample of the total consumer population.

     SAMPLE:-               A sample is segment of the population selected for marketing

research to represent the population as a whole. The sample should be representative so that
the researcher can make accurate estimate of the thought and behavior of large population.

         Designing the sample required three decisions.
         1. Who is to be surveyed (What sampling unit) the answer of this question is not
            always obvious. The researcher must determine what information is needed and
            who is the most likely to have it.
         2. How many people should be surveyed (What sample size) A large sample give
            more reliable result then small sample. However large sample usually cost more
            an it is not necessary to sample the entire target market or even a large population
            to get reliable result, it well chosen sample of less then one person of population
            can often give good reliability.
         3. How should the people in sample be chosen (What sampling procedure) It
            including probability and non-probability sample. In probability sampling each
            population member has know chance of participated in sample. While in non-
            probability sample each population member has not equal chance of participated
            in sample. In probability and non-probability have deferent cost, time limitation
            as well as deferent accuracy and statistical properties. Which method is best
            depend on the need of research project.

RESERCH INSTRUMENTS: - (The questionnaires and Mechanical devices)
In collecting primary Data marketing research have two choices of research instruments.
The questionnaires and Mechanical devices. The questionnaires is by for the most common
instrument, whether administer in person by phone or online. The questionnaires are very
flexible. There are many ways to ask the question.

1 Close Ended: -
In close ended question respondent have all the possible answers and subject make choice
among then. Example: Multiple Choice question and scale question.

2. Open Ended: - Open ended question allow respondent to answer in                   there own


                                   Researcher also use mechanical instrument to monitor
consumer behavior. Nielsen media research attaches people meter to television sets in
selected homes to record who watches which programs. Retailer use checkout scanner to
record shopper purchases.

                                         STEP 3.
The research next puts the marketing research into action this involves collecting, processing
and analyzing the information.

The data collection can be carried out by the company’s marketing research staff it self are
by the out side firm. The data collecting phase of marketing research is generally is most
expensive and subject to error. Researcher should was closely to make sure that the plan is
implemented correctly.

                     Researcher must also process and analyze the collected data to isolate
important information and finding. They need to check data for accuracy and compute ness
and code it for analyzes. The researcher then tabulates the result and compute statistical

                                          STEP 4.

                     The researcher must now interpret the findings, draw conclusion and
report them to management. The researcher should not try to use fancy statistical techniques
Rather, the researcher should present important findings that are use full in the major
decision face by the management. In many cases findings can be interpreted in different ways
and discussion between researcher and manager will help point to the best interpretation.
Thus manager and researcher must work together closely when interpreting research result
and both must share responsibility for the research process and resulting decision.