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MKT421Week2SolvingtheProblemFive-StepMarketingResearchApproachPresentation3.pptx

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The Five Step Marketing Research Approach

Enjoli Hill

MKT/421

February 16, 2019

Agenda

Define the Five-Step Marketing Research Approach and discuss the importance of research in marketing.

Describe each stage of the Marketing Research Approach and explain how each stage should be implemented to generate the information needed to eventually make the best remedial strategic decision to solve the declining revenue problem.

Define the target market that you are striving to attract to your organization.

Define product differentiation. Provide an example that illustrates how your enterprise can use differentiation to help increase the target market's interest.

Explain how this differentiation can help re-position the Upper Peninsula Supply Co. as perceived by your target market and generate incremental revenue.

Importance of Market Research

Increased Sales

You gain valuable information that helps you identify how successful your product/service is likely to be, what the best price you can set, and which customers are interested in purchasing the product/service.

Better Customer Management

Use tools of marketing campaigns (questionnaires, meetings, discussions, messaging) to reach a large audience of customers, reduce the time within which your product/service reaches the customers, investigate current and future needs, and expectations of the customers to achieve higher customer satisfaction.

Business Growth

Sales tends to an increase and your customers grow. Your company gains an opportunity for further expansion.

Taking into account these opportunities, you should research markets because market researching paves the way for better inventory management, business planning, time management, employee management, etc. Obviously the marketing department of your organization can optimize its marketing campaigns through planning and conducting market research activities.

Step 1

Define the problem:

This step is the most important and you should set aside a decent amount of time to think about it.

In order to do any research and collect data, you have to know what you are trying to learn from the research.

In marketing research, defining the problem you need to solve will determine what information you need and how you can get that information.

Start off by asking yourself the following questions: what’s the issue to be addressed/ problem to be solved? What do I need to learn – and more importantly, why? How will I use that information? Answering these important questions will help you focus your research and save you time (Ferber,1963). Develop questions that will allow you to define your problem, and examine all potential causes so that the research can be narrowed down to the information you actually need to solve that problem or determine what action to take regarding an opportunity.

Step 2

Develop Your Research Plan:

Interview customers

get the best feedback by using this tactic because you’re going straight to the source.

Conduct a survey using SurveyMonkey or another tool.

Run tests on your website

This is a cost-effective study that can provide a lot of insight about how your customers or potential customers behave or respond to something.

Often we gather all of the data only to realize that we didn’t have to because someone has already solved the same problem. Learning about what other organizations have done to solve a problem can help you tweak your research study and save you time when considering all of the research options. In marketing research, this is called secondary data because it has already been collected, versus the primary data that you would collect through your own research study.

Step 3

Collect Relevant Data and Information:

When collecting data, make sure it’s valid and unbiased.

Good marketing research is scientific and creative.

Try asking both open-ended and closed-ended questions (for example, a multiple-choice question).

In marketing research, most of the data you collect will be quantitative versus qualitative, which is descriptive and observational. You will gather a mix of the two types of data. In that research study, you might also interview customers about what appeals to them. This way, you’re receiving hard data and qualitative data that provide more color and insight. Scientific is research that it is process based, conducted in a controlled environment with variables that can be clearly identified and controlled, and has results which can be replicated.

Step 4

Analyze Data and Report Findings:

Study the information you gathered carefully.

It’s important to look for trends as opposed to specific pieces of information.

While analyzing your data, don’t try to find patterns based on your assumptions.

It’s important to write up a summary of the study, including the process that you followed, the results, conclusions, and what steps you recommend taking based on those results. Sharing the charts and data you collected is useless, if it doesn’t go hand in hand with action.

Step 5

Take Action:

Present your findings and take action.

Briefly highlight some of the key points that were uncovered in your results.

Your research will prove very useful in developing your business strategy.

Your conclusions and recommendations should be based on the data that you have gathered.

Developing and improving your product or service, and determining a market segment.

In this stage identifying the target customer is the basic secret towards successful market growth. Trends are constantly changing, which means that your research is never over. The trends you discovered through your research are evolving. You should be analyzing your data on a regular basis to see where you can improve.

Market Target

Youth culture ages 14-24

Youth marketing can be used on TVs, radio, social media sites, and word of mouth

Sponsoring athletes, musicians, and high school sports teams as a way to insert my brand into youth culture.

Youths make valuable consumers because they influence the purchasing decisions of their friends and family.

If a product or brand is popular with young people, it gains an image of being “cool.”

Youth marketing is any marketing effort directed toward young people. This group is typically broken down into smaller segments depending on their age, including tweens, teenagers, college students, and young adults aged 23-34. Youth culture is expressed through music, art, fashion and action sports lifestyle for young men and women. . Authenticity is particularly important to the young, they want the brands they support to reflect their values and tastes. In addition to being consumers themselves, teens can affect where their family goes on vacation, the car they choose to buy, and the clothes that their friends wear.

Product Differentiation

Is a marketing process that showcases the differences between products. Differentiation looks to make a product more attractive by contrasting its unique qualities with other competing products.

Products can be physically identical and be priced widely differently just because of "brand“ (Caress vs Equate)

Exactly the same branded product can be priced differently depending on the distribution channel (Walmart vs Pick n Save)

A perfectly identical product in the same shop can have two (or more) prices at the same time (reward card owners vs. non-owners).

Please note that price differentiation is not price discrimination: it's a broader concept where prices across both the same and other producers (and brands) are different from each other, whereas price discrimination refers to products of the same producer.

Production Differentiation

Product differentiation determines what sets one product apart from other similar products, and it uses that difference to drive consumer interest. Product differentiation is often subjective, aiming primarily at altering customer perspective on one item when compared to another.

Examples of Differentiation

Offer exclusive products and limited-edition styles through their direct channels in order to encourage consumers to purchase their products from the U. P. Supply’s stores and websites.

Launch our first retail mobile app to make the customer’s shopping experience great in the palm of their hands and convenient.

Start selling athletic footwear instead of just apparel worn by most athletes.

U. P. Supply & Co. has begun to focus more on our direct-to-consumer business. We are testing new technologies to improve in-store retail experiences and provide a seamless branded shopping experience across multiple channels. Also, we need to promptly accommodate changing consumer purchasing habits and implementing an omnichannel retail strategy, taking advantage of our current retail presence.

Improved Sales

Young people are key to numerous markets, from mobile, fashion and technology to alcohol, snack foods and entertainment.

We know young people are big users of social media. Using this channel for traffic to our own website and for increasing brand awareness.

Convenience is highly valued and is what the majority like most about buying online. People want things that work with the technology they own.

Thanks to social media, these days we see pictures of sneakers and the more we want it in our collection. When something is glorified with nice angles and sharp filters, it makes us like it.

Improved Sales

Young people make such valuable consumers because they influence the purchasing decisions of their friends and family. In addition to being consumers themselves, teens can affect where their family goes on vacation, the car they choose to buy, and the clothes that their friends wear. If a product or brand is popular with young people, it gains an image of being “cool.”

References

Ferber, R. (1963). Market research (1st ed.). New York: McGraw-Hill. Title – 5

Kerin, R., & Hartley, S. (2017). Marketing (13th ed.). Retrieved from https://portal.phoenix.edu/library.html.

https://www.investopedia.com/terms/p/product_differentiation.asp