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Chapter 23 - Marketing-mix measures. In this chapter, the following content will be discussed: Phases in new product research, concept generation, product evaluation and development, pretest marketing example, test marketing.
1 Marketing Research Aaker, Kumar, Leone and Day Twelfth Edition Instructor’s Presentation Slides Chapter TwentyThree Marketing-Mix Measures Marketing Research 12th Edition Phases in New Product Research Concept Generation Need Identification Concept Identification Concept Evaluation and Development Product Evaluation and Development Testing the Marketing Program Marketing Research 12th Edition Concept Generation Need Identification Perceptual maps Social and environmental trends Benefit structure analysis Product users Focus-group interviews Lead user analysis Marketing Research 12th Edition Concept Generation (Contd.) Concept Identification Are there any major flaws in the concept? What consumer segments might be attracted to it? Is there enough interest to warrant developing it further? How might it be altered or developed further? How are the concepts exposed? To whom are the concepts exposed? To what are they compared? What questions are asked? Marketing Research 12th Edition Product Evaluation And Development • Use Testing ▫ Virtual Product Testing ▫ Blind use test • Predicting Trial Purchase • Pretest Marketing Marketing Research 12th Edition Pretest Marketing Example The ASSESSOR Laboratory Test Market Research Design and Measurement Marketing Research 12th Edition Test Marketing • Sellin test markets • Controlled Distribution Scanner Markets (CDSM) Selecting the test cities ▫ Representativeness ▫ Data availability ▫ Media isolation and costs ▫ Product flow Marketing Research 12th Edition Really New Products • Create or expand a new category, thereby making crosscategory competition the key (e.g., fruit teas versus soft drinks) • Are new to customers, for whom substantial learning is often required (i.e., what it can be used for, what it competes with, why it is useful) • Raise broad issues such as appropriate channels of distribution and organizational responsibility • Create (sometimes) a need for infrastructure, software, and addons Marketing Research 12th Edition 10 Pricing Research • Gabor and Grainger method • Multibrand choice method • Research for Profitoriented Pricing • Research for Shareoriented Pricing Marketing Research 12th Edition 19 Sales Promotion Research (Contd.) Promotional Strategy • Hilo • Every Day Low Price (EDLP) A schematic framework of the major types of sales promotion Marketing Research 12th Edition 20 Sales Promotion Research (Contd.) Specific Sales Promotional Tools Marketing Research 12th Edition 21 TQM – Total Quality Measurement • TQM is a process of managing complex changes in the organization with the aim of improving quality • Is a business philosophy that was used by the Japanese to gain competitive advantage. ▫Now being discovered and used by American organizations. TQM can be defined as a systematic effort at continuous quality improvement of all processes, products, services, and human resources throughout the organization, undertaken with an objective of improving customer satisfaction Marketing Research 12th Edition 22 TQM – Total Quality Measurement (Contd.) The process of managing complex change and the effects when one of the links in the chain is missing are depicted in the figure above Marketing Research 12th Edition 23 TQM – Total Quality Measurement (Contd.) • Characteristics of an organization that has implemented TQM are: ●Continuous training and education of everyone in the organization ●Establishment of quantifiable measures of progress ●Formation of cross functional teams that are empowered and motivated ●Use of formal tools, techniques to maintain quality Marketing Research 12th Edition 24 Total Quality Management (Contd.) Information Requirements • Measurement must be specific • Track the correct measure • Measure the outputs of the highest value to the customer • Measure process and results • Anticipate future customer and process requirements Marketing Research 12th Edition 25 Total Quality Management (Contd.) Analysis of Data in a TQM Company • Who performs the analysis? • What analytical techniques are used? • Which data are analyzed and at what level of detail? • How are data aggregated, and how are relations between data groups crossreferenced? • How does the company improve its analytical capabilities? Marketing Research 12th Edition 26 Analysis of Data in a TQM Company Choose the Right Analytical Method Manage and Maintain the Data Data Quality Comparisons and Benchmarks Marketing Research 12th Edition 27 Benchmarking • Identify what is to be benchmarked • Identify comparative companies • Determine data collection method, and collect data • Determine current performance levels • Project future performance levels Marketing Research 12th Edition 28 Benchmarking (Contd.) • Communicate benchmark findings, and gain acceptance • Establish functional goals • Develop action plans • Implement specific actions, and monitor progress • Recalibrate benchmarks Marketing Research 12th Edition 29 Quality Function Deployment (QFD) In QFD, a multifunctional team measures and analyzes in great detail both customer attitudes and product attributes. Step Attributes that the customer looks for in the product (CAs) are defined Step Customer evaluations of competing products are obtained for each of the customer attributes determined in step Step Engineering characteristics (ECs) that may affect the attributes are listed Marketing Research 12th Edition 30 Quality Function Deployment (QFD) (Contd.) Step The extent of the impact of each EC on each CA is determined or estimated Step All this information is summarized in a chart, often called the house of quality (figure on next slide) Step The impact of changes in any engineering characteristic on other ECs is evaluated Step Members begin to focus on customer attributes in which the product appears weak developing ideas concerning how to improve various engineering characteristics Marketing Research 12th Edition 31 Quality Function Deployment (QFD) (Contd.) Marketing Research 12th Edition 32 Marketing Research in QFD • Marketing research is an invaluable part of QFD • Customer attributes are obtained through conjoint analysis or through other forms of survey research • Customer evaluations of competing products are also obtained through survey research. • Hence, a thorough knowledge of marketing research is required Marketing Research 12th Edition 33 End of Chapter Twenty-Three Marketing Research 12th Edition ...2 Chapter TwentyThree Marketing- Mix Measures Marketing Research 12th Edition Phases in New Product Research Concept Generation Need Identification... Create (sometimes) a need for infrastructure, software, and addons Marketing Research 12th Edition 10 Pricing Research • Gabor and Grainger method • Multibrand choice method • Research for Profitoriented Pricing • Research for Shareoriented Pricing Marketing. .. Catchment Area Analysis • Outlet Location Research Center-of-gravity warehouse location to serve five retail stores Marketing Research 12th Edition 13 Distribution Research (Contd.) Number and Location of Sales Representatives