1. Marketing-Information Management
Standard 3
Sutherland, Herriman High

2. Scenario
One of the largest American sports shoe manufacturers wants to introduce its new, best-selling shoe in overseas markets.
A famous basketball player in the United States wears the shoe, and a commercial shows him shooting hoops in locations around the world.
The commercial is aired in three European countries and translated into each country’s official language.
However, sales are disappointingly low. What went wrong?

3. Answer
Even though the ad has a global focus, it does not have a global appeal, at least not in Europe.
Careful market research would have shown that basketball is not as popular in Europe as it is in the United States.
Few people purchased the shoe because few people related to the associated sport.

4. Marketing-Information Management
Gathering, storing, and analyzing information, customers, trends, and competing products

5. Marketing Research Why Conduct Research???
Marketing Research – the systematic gathering, recording, and analysis of data about issues relating to marketing products and services
-American Marketing Association
Determine consumers’ attitudes and preferences
Test product features
Determine market size
Learn about competitive products
Determine buying cycles

6. Consumers accept only one out of every ten new products introduced into the market place; therefore, gaining information about consumers likes and dislikes is important.
Stouffer’s spent almost 13 years doing marketing research and development before starting it’s Lean Cuisine line. They studied consumers’ interests in health and dieting. They conducted panels to find out what dieters liked and did not like about diet food.
The product was a giant success, with more than $125 million in sales after the first year of national distribution.

7. The Marketing Research Process
Define the Problem
Obtain Data
Analyze the Data
Recommend Solution
Apply the Results

8. Step 1. Define the Problem
Business identifies a research question and the information that is necessary to answer it
For Example:
A resort wants to know if its staff, services and facilities are meeting the needs of the guests.
It needs to get information so it can continually improve its services.

9. Step 2. Obtain Data
Primary Data – Data obtained for the first time and used specifically for the particular problem or issue under study.
Secondary Data – Data already collected for some purpose other than the current study.

10. Ways to collect Primary Data
Surveys – Internet, telephone, face-to-face, focus groups, panels, etc.
Observation – Secret shoppers, store cameras, watching customers reaction to products, etc.
Experiment – Taste tests, test marketing, or product sampling. Hypothesis based.

11. Secondary Data Sources
Internal Company Records – Sales charts, info on where customers live, top selling products, etc.
Internet Sources – Society trends, data from a variety of research, etc.
Government Reports – U.S. Census, Department of Commerce data, employment reports, etc.
Professional & Trade Organizations – Wall Street Journal, National Restaurant Association, etc.

12. Which one is Primary or Secondary?
A personal interview response to a cereal design
A U.S. government demographic report
Statistics from the SBA on the number of small business startups
IBM’s five-year sales figures
Marketing research by Proctor and Gamble for a new dishwashing liquid
A jewelry store’s customer buying record
Census data from the state of Utah
An opinion research poll conducted by IBM for a new computer it plans to introduce
A survey conducted in a supermarket by a representative of a new ice cream manufacturer

13. Step 4. Recommending Solutions to the Problem
Step 3. Analyze the Data
Data Analysis – the process of compiling, analyzing, and interpreting the results of data collection
Step 4. Recommending Solutions to the Problem
Conclusions Drawn from your research
Recommendations need to be clear and well supported

14. Step 5. Applying the results
After research has been completed and changes have been made, a business needs to carefully monitor results.
Are they successful?
Do changes need to be made?

15. Marketing Strategy
Marketing Strategy – A statement (implicit or explicit) of how a brand or product line will achieve its objectives. The strategy provides decisions and direction regarding variables such as the segmentation of the market, identification of the target market, positioning, marketing mix elements, and expenditures. A marketing strategy is usually an integral part of a business strategy that provides broad direction to all functions.
-American Marketing Association
Marketing Strategy – A marketing strategy identifies target markets and sets marketing mix choices that focus on those markets.

16. Marketing Plan
Marketing Plan – A formal, written document that directs a company’s activities for a specific period of time.
-Marketing Essentials
Marketing Plan
Marketing Mix
Market Strategy
Business Goals

17. Marketing Strategy examples
NIKE - Over the past three years Nike has decreased its spending in TV and Print advertising by 40% and is shifting resources into the digital realm.
McDonalds – With the sluggish economy McDonald’s is stressing value to grow guest count and coax customers into buying regular-price items.