MARKETING RESEARCH MKT 222

MODULE # 2……WEEK 2

ERIC M. PHILLIPS

JAN 28 –JUNE 2014

MARKETING RESEARCH MKT 2202

REVIEW OF FIRST MODULE

1. What is Marketing Research?

2. The difference between Market Research and Marketing Research.

Market Research is concerned specifically with MARKETS while Marketing Research is concerned specifically about MARKETING PROCESSES.

Marketing research is the systematic gathering, recording, and analysis of data about issues relating to marketing products and services.

It has been described as "the function that links the consumers, customers, and public to the marketer through information — information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process.

3. The 6 stages of the Marketing Research Process

4. The Role and Importance of Marketing Research.

CASE STUDY: THE LEXUS LUXURY CAR

Marketing research at its best!

In 1983, Toyota started a project named F1 (“Flagship” and “No. 1 vehicle”). The F1project, which eventually became known as the Lexus LS 400, aimed to develop a luxury car that would expand Toyota’s product line.

In 1985, Toyota researchers visited the U.S. in order to conduct focus groups and market research on luxury car consumers. They observed many characteristics of the lifestyles and tastes of North American upper-class consumers.

Toyota’s market research concluded that a separate brand and sales channel were needed to present its new luxury flagship, and plans to develop a new network of dealerships were made.

The LS 400 debuted in January 1989 at the North American International Auto Show in Detroit.

The following September, Lexus vehicles officially went on sale through a network of 73 new Lexus dealerships across the U.S. The launch of Lexus was heralded by a multi-million dollar advertising campaign in both television and print media.

The LS 400 was widely praised for its silence, well-appointed and ergonomic interior, fine engine performance, outstanding quality, aerodynamics, fuel economy, and value.

THE LEXUS VEHICLE

QUESTION POSED BY MR. TOYADO, CHAIRMAN OF TOYOTA

“ CAN WE CREATE A LUXURY VEHICLE TO CHALLENGE THE WORLD'S BEST”?

1. The opportunity for Japanese manufacturers to export more expensive models had grown in the 1980s due to voluntary export restraints, negotiated by the Japanese government and U.S. trade representatives, restricting mainstream car sales.

2. In 1986, Honda launched its Acura marque in the U.S., influencing Toyota's plans for a luxury division.

MARKETING RESEARCH PROCESS

Toyota researchers visited the U.S. in May 1985 to conduct focus groups and market research on luxury consumers.

During that time, several F1 designers rented a home in Laguna Beach, California to observe the lifestyles and tastes of American upper class consumers.

Meanwhile, F1 engineering teams conducted prototype testing on locations ranging from the German autobahn to U.S. roads

Toyota’s market research concluded that a separate brand and sales channel were needed to present its new flagship sedan, and plans were made to develop a new network of dealerships in the U.S. market.

1989, after an extended development process involving 60 designers, 24 engineering teams, 1,400 engineers, 2,300 technicians, 220 support workers, around 450 prototypes, and over US$1 billion in costs, the F1 project was completed.

The resulting flagship, the Lexus LS 400, had a unique design that shared no major elements with previous Toyota vehicles, with a new 4.0 L V8 gasoline engine and rear-wheel drive. Testing locations for the LS 400 included the German autobahn.

HOW WAS THE NAME LEXUS CREATED?

3. In 1986, Toyota’s longtime advertising agency Saatchi & Saatchi formed a

specialized unit, Team One, to handle marketing for the new premium brand.

Image consulting firm Lippincott & Margulies was hired to develop a list of 219 prospective names;

Vectre Verone Chaparel Calibre and Alexis

were chosen as top candidates.

While Alexis quickly became the front runner, concerns were raised that the name applied to people more than cars (being associated with the Alexis Carrington character on the popular 1980s primetime drama Dynasty) and as a result the first letter was removed and the "i" replaced with a "u" to morph the name to Lexus.

From its inception, Lexus has been advertised to luxury consumers using specific marketing strategies, with a consistent motif used for the marque's advertisements.

Beginning in 1989, television ads were narrated by actor James Sloyan (the voice of "Mr. Lexus" until 2009), and accompanied by vehicles that performed unusual stunts onscreen.

The first decade of Lexus commercials (1989–99) consisted primarily of disjunctive verbal descriptions, such as "relentless," "pursuit," and "perfection,"[242] while vehicles were used to claim superiority in precision, idling, and interior quiet and comfort on camera

THR ROLE AND VALUE OF MARKETING RESEARCH

Below are some prime situations where marketing research can be of value to the success of your business:

1. Determining the viability of a new market for your company to enter.

2. Estimating market size/share/adoption rate for investment or business planning.

3. Identifying new product/service opportunities and value-added offerings.

4. Risk management - identifying what risks pose the greatest threat to your business.

5. Understanding what customers expect of you and how well you are delivering.

6. Root cause analysis for lost business or customer defections.

7. Identifying your most profitable customer segments and how to protect them.

8. Developing the right price points/identifying bundling opportunities.

9. SWOT intelligence on competitors to plan business strategies/identify M&A scenarios.

10.Understanding how customers perceive your market positioning relative to competitors.

11.Determining the most effective marketing/advertising channels to support your business

MODULE # 2 REVIEW LEARNING TOOLS

1 Here Lies Berry Bill Caught Napping On A Friday Night

2 ABSTRACT VERSUS LINEAR THINKING

1+ 1 = 2;

1=1 = 11

3 THE VISION MAP.

THE MARKETING RESEARCH PROCESS:

TYPES OF MARKETING RESEARCH

STAGES IN THE RESEARCH PROCESS

DATA IS NOT INFORMATION!

TYPES OF MARKETING RESEARCH

WHAT ARE THE BASIC TYPES OF MARKETING RESEARCH?

PRIMARY AND SECONDARY RESEARCHThis is the most fundamental division of research practices. Primary research refers

to original or custom research - gathering information from original sources. It is usually proprietary to a client and not made available to the marketplace. This type

of research is our forte at J Arnold & Associates.

Secondary research involves the compiling of information from existing or published sources. These sources can be internal or external. Internal would be

your customer databases, historical files, etc. External would involve searches for published information. Typical sources include newspapers, trade publications,

associations, industry reports, and of course, the Internet.

QUALITATIVE AND QUANTITATIVE RESEARCHPrimary research is basically divided into these two categories. In essence,

qualitative research addresses emotional issues, while quantitative is based more on reason or logic.

Qualitative research methods strive to understand how people feel or to tap their creative juices. Quantitative techniques are applied to generate meaningful metrics that clearly define the magnitude of a response. For example, qualitative research

would uncover how people feel about an issue, whereas quantitative research would measure how strongly they feel about it.

When planning a study or defining its objectives, the consultant must first determine which approach is best suited - qualitative or quantitative. Sometimes

only one will suffice, and other times, both are needed. Once determined, the most appropriate methodology needs to be chosen. The most commonly used methods

are summarized below.

Qualitative Methods Quantitative MethodsFocus groups (ideal size 4-6 people) Telephone interviewsMini groups (fewer people or shorter duration)

Self-administered mail surveys

One-on-one in-depth personal interviews

Online sources - via email or websites

Paired in-depth interviewsElectronic surveys - compiled on diskette

Advisory panels Real time moment-to-moment(primarily for media research)

PRIMARY RESEARCH

PRIMARY RESEARCH

1. First-hand information

2. Can be highly focussed and relevant

3. Care needs to be taken with the approach and methodology to ensure accuracy

4. Types of question – closed – limited information gained; open – useful information but difficult to analyse

QUANTITATIVE AND QUALITATIVE INFORMATION

Quantitative – based on numbers – 56% of 18 year olds drink alcohol at least four times a week - doesn’t tell you why, when, how.

Qualitative – more detail – tells you why, when and how

PURPOSE OF PRIMARY RESEARCH

SECONDARY RESEARCH

INTERNAL SOURCES

• Company Accounts• Internal Reports and Analysis• Stock Analysis• Retail data - loyalty cards, till data, etc.

EXTERNAL SOURCESGovernment Statistics (ONS)

• EU - Euro Stat• Trade publications• Commercial Data - Gallup, Mintel, etc.• Household Expenditure Survey• Magazine surveys• Other firms’ research• Research documents – publications, journals, etc.

SAMPLING METHODS

SAMPLING METHODS• RANDOM SAMPLES

Equal chance of anyone being picked May select those not in the target group – indiscriminate Sample sizes may need to be large to be representative Can be very expensive

• STRATIFIED OR SEGMENT RANDOM SAMPLING

Samples on the basis of a representative strata or segment Still random but more focussed May give more relevant information May be more cost effective

• QUOTA SAMPLING Again – by segment Not randomly selected Specific number on each segment are interviewed, etc. May not be fully representative and is a cheaper method

• CLUSTER SAMPLING

Primarily based on geographical areas or ‘clusters’ that can be seen as being representative of the whole population

• MULTI-STAGE SAMPLING

Sample selected from multi-stage sub-groups

• SNOWBALL SAMPLING

Samples developed from contacts of existing customers – ‘word of mouth’ type approach!

LIFE PATH ANALYSIS SHEET

Life Path #1

The 1 Life Path is about developing your own will, individuality, decisiveness, and expressing your creativity, Being a caring, considerate leader is as important as is being on your own and forging your own path. Standing on your own two feet is important.

Life Path #2

The 2 Life Path is about cooperation, passion, service and balance. Being generous, honest and caring will help you to bring out the best in yourself and others. Often others will seek you out for information/advice/help. You can be exceptional at organizing and fact finding and these things can make you the most happy.

Life Path #3

The 3 Life Path is about socialization, and stepping forward. Speaking out, especially in a public forum, can be very important for you. Social skills, creativity, and looking good are extremely important for you. Balancing material needs and the need to relax can often pull you in different directions

Life Path #4

The 4 Life Path is about being practical, persisting and dedicated. Quality is an important lesson for you. It will be important to remember that faster is not always better. Work is very important and rewarding for you. Structure and balance can be very important. Learn to provide a space for leisure in your life as well. Taking/Giving orders can be very important.

Life Path #5

The 5 Life Path is about striving for the answers to life, learning, being and freedom. You can learn about freedom simply by watching others. Stay open-minded; be inquisitive, eager to learn. Being tolerant of new or unusual people/places/things can help you to be a stronger person. Variety is a key word for your journey.

Life Path #6

The 6 Life Path is about having compassion and empathy for others. It may involve standing up and willingly giving assistance to those who need it most. Balance and Responsibility are key elements of this life path. Feeling useful makes you feel happy.

Life Path #7

The 7 Life Path is about learning that "You reap what you sow." Planning, Organizing, and Simplicity are very important for you. Generally you are peaceful. Your journey is one in which being aware and open is very important. Although you may enjoy being analytical, sticking your head in the sand just won’t do for you. Learn to listen to your inner judgment and you will do well.

Life Path #8

The 8 Life Path is about prowess, strength, learning how to accept responsibility, and leadership. People will often look to you for answers or guidance, even from a young age. Learn to balance your personal desires with the desires of those around you. It is important that you evaluate situations from multiple viewpoints. Simplicity is important. Try not to get caught in the material world.

Life Path #9

The 9 Life Path is about being passionate and compassionate. It is about understanding the highs and lows of life. Being grounded and attuning to the

simple things in life, rather than the material is important for your growth. Helping others is as important as helping yourself.

MODULE # 3 HOMEWORK

CASE STUDY DUE IN 3 WEEKS

Perform “marketing research” on your own life. Using marketing principles such as the 7 Ps of marketing; Consumer behavior (Maslow’s hierarchy), market segmentation, developing your family tree, career plan (1 and 5 year), numerology, name analysis etc)