3-1-1 marketing research [positioning]
Transcript of 3-1-1 marketing research [positioning]
A recurring theme in section 2 was that service quality was an important product component. In this chapter on internal and channel marketing we return to that theme. To ensure that students are aware of the critical
nature of the service component and how internal marketing is needed to ensure that staff are engaged and involved throughout the 3 time zones of the buyer decision process
To communicate the importance of boundary spanners as the bridge between the organisation and the customer
To ensure that students are aware of the importance of channel partners to many organisations and how channel partners may be the source of a competitive advantage [consider the role of channel partners in franchising]
Directions
2 types of marketing research
1 As needed - [sometimes referred to as Ad hoc research] a) Specific to a particular need at a particular timeb) Measuring changes to situational factors – internal/external
2 Everyday - [some times referred to as routine or systematised] a) Part of an ongoing & regular business monitoring and control
programme [Sales performance metrics]b) Established longitudinal benchmarking data
How market research can assist?• Market research can assist in:
– Uncovering consumer dreams, desires, & demands– Designing, & developing, new products– Conducting a product review
• Assessing core, expected, & augmented product layers– Positioning & re-positioning a product– Assessing competition & market characteristics– Assisting with continuous improvement process– Measuring operational efficiency & effectiveness
Market research reduces risk• Zaltman and Coulter (1995) suggests that up to 80% of all
product failures are as a consequence of poor research.• Therefore, market research is a vital management tool
– We are operating in a dynamic market - increased customer expectations, greater accountability and shorter product cycles
– The objective of MR is to provide reliable and accurate data, to enable managers to make informed decisions.
– Research quality improves the quality of decisions• Although, does not guarantee success
– Like all investments must be cost effective outcome focussed
The 5 stages of market research
Ad hoc market research generally follows a 5 stage process:1. Clearly define the research problem and objectives.2. Develop an appropriate methodology3. Data collection4. Interpreting data 5. Presentation of findings
as needed
Data can be new or existing
Primary data data that is not available from secondary sources and
must be collected for a specific situation Secondary data* data that has been previously collected. Secondary
data falls into two categories: internal external
Qualitative V quantitative tools
Qualitative Discover the elements/qualities that are present
Quantitative Measure the frequency that the elements occur
Don’t get hung up on the tools focus on the outcome
Marketing AuditWhere is the organisation at the present?What are the current situational factors? How well does our total product meet the needs of our customers?
Marketing PlanArticulation of desired position and basis of competitionIdentification of market strategiesIdentification of market/revenue goals
Marketing Action PlansIdentification of tacticsIdentification of responsibilities and timeline
Marketing ControlMeasure performance against specificationsTake corrective action where necessary
Clarifying key terms
A business plan is like the working drawings of an architectDifferent disciplines have different plans & responsibilities
Just as an architect would have written specificationsEach component of the business plan would have specific outcomes. Each function agrees that this is the business that they are building.
Everyday research - making informed decisions
Former MBA student statesAll I do is research. I spend my day doing research. When I review the sales figures or the production forecast figures, I am researching. I am comparing this year with previous years. When I am in a meeting, I am listening to my managers, I am researching. When I am with a customer, I am trying to determine how we can serve them better, improve our products, I am researching. Before I did this XXXX I thought that market research was something that market researchers did. Then it dawned on me I am a market researcher I gather information, I make conclusions but the difference is I have to make decisions based on my research and the quality of my decisions is dependent on the quality of my research. I am a lot more focussed on quality of information now.
Note: qualitative and quantitative approaches
Chief FinanceOfficer
The strategic planning group
ChiefInformation
Officer
ChiefMarketing
Officer
Chief Operations
Officer
Articulation of desired market position & basis of competition
Strategic Intent
Chief Executive
Officer
*C-Suite executives
Financeplan
Operationalplan
Informationplan
Marketingplan
The business planHR
Chief FinanceOfficer
The strategic planning group
ChiefInformation
Officer
ChiefMarketing
Officer
Chief Operations
Officer
Articulation of desired market position & basis of competition
Outlines the strategic intent of the organisation
Chief Executive
Officer
Financeplan
Operationalplan
Informationplan
Marketingplan
The business plan
HR
The strategic planning group comprises the chief executive officer and the senior discipline officers.They will generally meet at the beginning of the planning process and set out the parameters
“the meeting of the minds” Peter Balsarini
The strategic planning group
The strategic planning group will often begin the business planning process with a review of the organisation’s philosophy the organisation’s values the statements of purpose.This may result in some degree of realignment
The strategic planning group
The marketing audit will be part of a longitudinal study [conducted on a regular basis]: • Quarterly, half yearly, yearlyTherefore, a process will be in place & information will be internal or external secondary data. May require as needed research
The business-marketing planning process
The 3 stages of the business-marketing planning process: 1. Collect & Analyse relevant
information2. Design & Develop the marketing
plan and action plans3. Implement & Evaluate the
specifications in the action plansWe will refer to this process as CADDIE
The 3 stages of CADDIE
Two types of everyday marketing research:1. Strategic research is conducted
as part of the business planning process. This is referred to as conducting a marketing audit
2. Tactical research is conducted to evaluate the performance of the organisation against the objectives specified in the marketing plan & marketing action plans. When necessary take corrective action
Everyday marketing research
Strategic marketing research is conducted as part of the business planning process.
This is referred to as conducting a marketing audit & explores the situational factors facing the organisation [COMP]: Customer Organisation Market Products
Everyday marketing research - strategic
Everyday marketing research - strategic
the customer, organisation, the market, & the productCollects and analyses
The situational factors [COMP] influence the consumer and the organisationa consumer perspective Influences the consumer’s
buyer decision processan organisational perspective Influences the business-
marketing planning process
The marketing audit – COMP factors
A customer audit begins with an identification of the customer segments. This information is important as it will help determine: Which segments does the organisation intend to
target [approach] Which segments does the organisation not
intend to target [avoid]
The marketing audit – customer audit
Customer segments Identify the customer segments and the
characteristics of the segments. Determine the methodology for undertaking the
market segmentation process
The marketing audit – customer audit
The marketing audit – customer audit
Segmentation variables Geographical: location, city V urban, suburb, city, country,
proximity to business Demographic: age, gender, occupation, income,
disposable income, family life cycle Psychographic: lifestyle and values, aspirational goals Behavioural: usage, loyalty, outcomes sought Price/benefit: perceptions of product quality and value
hence products at different price intervals Cultural: culture influences values and in-turn
consumption activities. Importance varies from product to product
VALS: on the basis of values, attitudes, and lifestyles
Segment characteristics• Present & likely• sales, growth, profitability, lifetime value expectations – [quality, value] collective satisfaction product requirements [dreams, desires, demands]
The marketing audit – customer audit
Segment characteristics Identify income characteristics of segments [ability
& willingness to purchase] Identify preferred payment methods, mediums, Location [in-store & on-line] Buying patterns [frequency] Motivators to enter the buyer decision process
The marketing audit – customer audit
Segment characteristics Satisfaction [episodic, cumulative, collective] Retention [NPS] Social media habits Word of mouth and referrals Competition within segment Consumer behaviour Involvement [e.g., family members, friends,
groups, society] Bargaining power of customers
[see Porter’s 5 competitive forces in this chapter
The marketing audit – customer audit
Segment conclusionsAfter considering the organisation’s capabilities & constraints Organise the customer segments into a hierarchy
of attractiveness
The marketing audit – customer audit
Everyday marketing research - strategic
the characteristics of the organisationCollects and analyses
Identifying the organisation’s objectives Past and current objectives: 3 financial objectives 3 strategic objectives 3 communication objectives
The marketing audit – organisation audit
Past and present organisational objectives: Past performance on the 9 objectives of
marketing practitioners [3Xfinancial, 3Xstrategic, 3Xcommunication objectives] – budget and actual achievements any gaps that exist
The marketing audit – organisation audit
Current capabilities and constraints Key success factors, organisational
competencies, culture, patents, technological skills, processes, employee performance, relative costs, marketing channel effectiveness, barriers to exit a market
The marketing audit – organisation audit
Revenue analysis: Size, growth, pricing, strategies, total sales and
margins by product, life cycle, market position, market-share by segment, cost of sales, shareholder value analysis
The marketing audit – organisation audit
Brand analysis Customer relationship analysis, brand strength
[uniqueness, relevance], brand stature [esteem, knowledge], brand equity [value as an asset], brand awareness, brand associations
The marketing audit – organisation audit
Characteristics of the market Financial [size, profitability, growth, market
patterns, potential, profitability, life cycle issues] Competencies [Strategic imperatives, Key
Success Factors] B2B & B2C communication channels Structure of market channels [distribution] Emerging trends and developments
The marketing audit – market audit
Characteristics of the market Past and present objectives: Current capabilities and constraints Revenue analysis: Brand analysis Potential competitors [new entrants] Competitor market power The types of market competition Models of market competition Macro external factors PESTEL
The marketing audit – market audit
Competitor market power Competitive nature and rivalry of the industry Threat of potential entrants [entry-exit barriers] Threat of substitute products Bargaining power of buyers [influence of
consumers] Bargaining power of suppliers
The marketing audit – market audit
The types of market competition Brand competition Product competition Generic competition Total budget competition
The marketing audit – market audit
Macro external factors PESTELE Political Economic Socicultural Technology Environmental Legal Ethical
The marketing audit – market audit
Product information would include: Product sales Total sales X product Total sales X territory Sales by [hour/day/week/month/year/ or other
suitable unit of measure e.g., weather] Number of transactions Average sell price Margins X product
The marketing audit – product audit
Product information would include: Product inventory [e.g., value of inventory on hand – usage
rates]
Product adoption & life cycle Product considerations
Strategy, product line – mix, positioning, uniqueness, value proposition, augmentation, involvement, contact, product components, decision type, recipient[s], category, classification, awareness
Threat of substitute products
The marketing audit – product audit
The information is then analysed To determine The market attractiveness The ability to compete [in the market]
This information will be passed on through the Chief Marketing Officer to the strategic planning group
The business-marketing planning process
The strategic planning group Will synthesise the information from
the various discipline reports Finance Operations Information Marketing
The business-marketing planning process
The strategic planning group Although the report will be in detail,
the Chief XXX Officers will often present the information in a SWOT framework Strengths Weaknesses Opportunities Threats
The business-marketing planning process