Topic 1: Marketing Research

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What is Marketing Research?

Marketing research is the systematic
design, collection, analysis, and reporting
of data and findings relevant to a specific
marketing situation facing the company.

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The Marketing Research

Process

Define problem and research objectives

Develop research plan
Collect information
Analyze information
Present findings
Make decision

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Step 1: Define the Problem

Define the problem
State research objectives

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Types of Research
Exploratory
Descriptive
Causal

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Step 2: Develop the Research

Plan

Data sources
Research approach
Research instruments
Sampling plan
Contact methods

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Data Sources
Secondary data are data that were
collected for another purpose and already
exist somewhere.
Primary data are data freshly gathered for
a specific purpose or for a specific
research.
The researcher can gather secondary
data, primary data, or both.
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Research Approaches

Observational and ethnographic

Focus group
Survey
Experimental

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Research Instruments
Questionnaires
Qualitative Measures
Technological Devices

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Qualitative Techniques
Word Associations
Projective Techniques
Visualization
Brand personification
Laddering
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Questionnaire Dos and Donts

Ensure questions are

free of bias
Make questions simple
Make questions specific
Avoid jargon
Avoid sophisticated
words
Avoid ambiguous words

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Avoid negatives
Avoid hypotheticals
Avoid words that could
be misheard
Use response bands
Use mutually exclusive
categories
Allow for other in fixed
response questions

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Question Types - Dichotomous

In arranging this trip, did you personally
phone Air Canada?
Yes No

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Question Types Multiple

Choice
With whom are you traveling on this trip?
No one
Spouse
Spouse and children
Children only
Business associates/friends/relatives
An organized tour group
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Question Types Likert Scale

Indicate your level of agreement with the
following statement: Small airlines generally
give better service than large ones.
Strongly disagree
Disagree
Neither agree nor disagree
Agree
Strongly agree
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Question Types
Semantic Differential
Air Canada
Large ....Small
Experienced..Inexperienced
Modern...Old-fashioned

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Question Types Rating Scale

Air Canada in flight service is _____.
Excellent
Very good
Good
Fair
Poor

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Question Types
Word Association
What is the first word that comes to your mind
when you hear the following?
Airline ________________________
Air Canada _____________________
Travel ________________________

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Technological Devices
Eye cameras
GPS
Electroencephalography
(EEG)

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Sampling Plan
Sampling unit: Who is to be surveyed?
Sample size: How many people should be
surveyed?
Sampling procedure: How should the
respondents be chosen?

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Contact Methods

Mail Contacts
Telephone Contacts
Personal Contacts
Online Contacts

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The Rest Steps

Step 3: Collect the information

Step 4: Analyze the information
Step 5: Present the information
Step 6: Make the decision

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Class Discussion
Imagine that your group is a marketing
research firm and now you are contracted
by TWU to conduct a research project
investigating TWU students satisfaction
level with the Sodexo Cafeteria. Develop a
brief marketing research plan for your
project.

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Topic 2: Consumer Behavior

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Consumer Behaviour
Consumer behavior is the study of how
individuals, groups, and organizations select,
buy, use, and dispose of goods, services,
ideas, or experiences to satisfy their needs
and wants.

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What Influences Consumer

Behavior?
Cultural Factors

Social Factors

Personal Factors

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What is Culture?
Culture is the fundamental determinant of a
persons wants and behaviors acquired
through socialization processes with family
and other key institutions.

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Subcultures

Nationalities
Religions
Racial groups
Geographic regions

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Social Factors
Reference groups
Family
Social roles
Statuses

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Reference Groups

Membership groups
Primary groups
Secondary groups
Aspirational groups
Disassociative groups

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Family
The family of orientation consists of
parents and siblings.
A more direct influence on everyday buying
behavior is the family of procreation
namely, the persons spouse and children.

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Personal Factors

Age
Life cycle stage
Occupation
Wealth

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Personality
Values
Lifestyle
Self-concept

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Personality
Personality - a set of distinguishing human
psychological traits that lead to relatively
consistent and enduring responses to
environmental stimuli (including buying
behavior).

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Lifestyle and Values

A lifestyle is a persons pattern of living in the world
as expressed in activities, interests, and opinions.
Marketers search for relationships between their
products and lifestyle groups.

Core values are the belief systems that underlie

attitudes and behaviors.
Marketers who target consumers on the basis of their
values believe that with appeals to peoples inner selves,
it is possible to influence their outer selvestheir
purchase behavior.

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Psychological Processes:
Stimulus-response Model

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Motivation - Maslows
Hierarchy of Needs

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Perception
Perception is the process by which we select,
organize, and interpret information inputs to
create a meaningful picture of the world.
Selective attention
Selective distortion (i.e., to fit with preconception)
Selective retention
Subliminal perception
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Learning
Learning induces changes in our behavior
arising from experience.
Discrimination means we have learned to
recognize differences in sets of similar
stimuli and can adjust our responses
accordingly.

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Emotions
Consumer response is not all cognitive and
rational; much may be emotional and invoke
different kinds of feelings.
A brand or product may make a consumer
feel proud, excited, or confident. An ad may
create feelings of amusement, disgust, or
wonder.

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Memory
Cognitive psychologists distinguish between
short-term memory (STM)a temporary
and limited repository of informationand
long-term memory (LTM)a more
permanent, essentially unlimited repository.

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Five- Stage Model of the

Consumer Buying Process
Problem Recognition
Information Search
Evaluation of alternatives
Purchase Decision
Postpurchase Behavior

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Sources of Information

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Personal

Commercial

Public

Experiential

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Steps Between Alternative

Evaluation & Purchase

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Intervening Factors
Attitudes of Others
Unanticipated situational factors

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Post-purchase Behaviors
Post-purchase satisfaction (e.g., cognitive
dissonance)
Post-purchase actions
Post-purchase uses and disposals

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Group Discussion
Discuss the behavioral patterns of the
consumers of your selected company.

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Topic 3: Segmentation and

Targeting

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What is a Market Segment?

A market segment consists of a group of
customers who share a similar set of
needs and wants.

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Segmenting Consumer Markets

Geographic
Demographic
Psychographic
Behavioral

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Geographic Segmentation
Geographic segmentation divides the
market into geographical units such as
nations, states, regions, counties, cities, or
neighborhoods.

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Demographic Segmentation

Age
Life stage
Gender
Income
Generation
Social class
Race and Culture

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Age & Life Stage

Consumer wants and abilities change with age.
Life stage defines a persons major concern
These life stages present opportunities for
marketers who can help people cope with their
major concerns

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Gender and Income

Gender - Men and women have different
attitudes and behave differently, based
partly on genetic makeup and partly on
socialization.
Income segmentation is a long-standing
practice in such categories as automobiles,
clothing, cosmetics, financial services, and
travel.
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Race and Culture

Multicultural marketing is an approach
recognizing that different ethnic and cultural
segments have sufficiently different needs
and wants to require targeted marketing
activities, and that a mass market approach
is not refined enough for the diversity of the
marketplace.

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Psychographic Segmentation
Psychographics is the science of using
psychology and demographics to better
understand consumers.
In psychographic segmentation, buyers are
divided into different groups on the basis of
psychological/personality traits, lifestyle, or
values.

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Behavioral Segmentation
Behavioral segmentation - marketers
divide buyers into groups on the basis of
their knowledge of, attitude toward, use of,
or response to a product.

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Behavioral Segmentation:
Decision Roles
Initiator
Influencer
Decider
Buyer
User

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Steps in the
Segmentation/Targeting Process

Need-based segmentation
Segment identification
Segment attractiveness
Segment profitability
Segment positioning
Segment acid test
Market mix strategy

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Project Activity
Start developing the segmentation and
targeting strategies for your selected
company.

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