marketing 300marketing 300discussion section

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the first exam How was it? Questions? Comments?

Quiz Review

• A $50 consumer product which is purchased infrequently is:

a) an unsought product.b) a convenience product.c) a specialty product.d) a shopping product.e) It might be any of the above.

Quiz Review

• A situation analysisa) can never eliminate the need for further

research.b) is used primarily in the problem solving step.c) is expensive compared with more formal research

efforts.d) can be very informative, but takes little time.e) must be quantitative to be useful.

Quiz Review

• Product class is based on the type ofa)Final customerb) Manufacturing processc) Marketing mixd) Marketing strategiese) Shopping strategies

what is this?

what is this?

350,000 tons a year

that’s right…

DIAPERS

discussion question

How would you use focus groups, observation, survey and experiments to forecast market reactions to a new kind of disposable baby diaper?

wait…Q: What’s the point of market research anyway?A: You don’t know what consumers want, how they shop, what their concerns are, what they like/dislike about your product, etc.

$?

discussion questionWatch this clip:

What are the researchers doing right?What are they doing wrong?

discussion questionFocus group testing – what is it?Market research technique that involves interviewing a group of people about their thoughts on a product or service.(ex. get 10 people in a room to talk about a proposed website launch)

discussion questionAdvantages of focus groups?– Quick to conduct– Cheap– Can get personal consumer insights

Disadvantages of focus groups?– Not quantitative, hard to assess objectively– People can be horrible judges of their own thoughts– Selection bias– Easy to “lead” subjects– Tendency by analysts to universalize comments

discussion questionThe social desirability problem

A B C D

discussion questionHow would you use focus groups in this diaper context? Ex. consumers could be asked directly about the likelihood of their purchase of the product

discussion questionObservation – what is it?Market research technique that involves monitoring consumer behavior to see reactions to product or service(ex. videotaping consumers shopping, “secret shoppers”)

discussion questionAdvantages of observing?– Consumer is not heavily involved in testing aspect– Can get at unconscious aspects of consumer behavior– Can gain consumer insights without asking directly or otherwise influencing behavior

Disadvantages of observing?– Ridiculously tedious!– Does not get at conscious consumer processes– Some customers creeped out by the idea of some weird guy who lives in parents’ basement watching them on CC TV

discussion questionHow would you use observations in this diaper context? Ex. your company can observe prominence of display and the rate of sales for similar products in various kinds of stores

discussion questionSurveying – what is it?A (typically) quantitative market research method that involves asking questions whose answers can be summarized in averages, percentages, etc.(ex. mail-in questionnaire, telephone survey)

discussion questionAdvantages of surveying?– Easy to analyze– Can be designed to be completed quickly– Can quantify consumer responses– Depending on format, can be more convenient and anonymous for consumers

Disadvantages of surveying?– Response rates– Selection and representativeness biases– Can be intrusive and really annoying– Do people answer honestly?

discussion questionHow would you use surveys in this diaper context? Ex. Ask retailers about their feelings about the product, and the sales volume they expect; or ask targeted consumers about their knowledge and interest in the product

discussion questionExperimenting – what is it?A market research technique involving the setup of a situation in which an experimental sample is compared against a control group(ex. compare sales of 16oz. Cheetos bags with sales of 15.75oz Cheetos bags in a different area)

discussion questionAdvantages of experimenting?– Can help understand effect of changes in marketing mix– Assuming effective testing, can immediately see cost/benefit– Can understand impact of a single factor

Disadvantages of experimenting?– Can be expensive, logistically complex– Competitor/retailer action can screw up test validity– If testing multiple features simultaneously, cannot disentangle individual effects

discussion questionHow would you use experiments in this diaper context?

Ex. See how different retailer displays might affect sales

discussion questionQuestions?

project progress

You should have segmentation and targeting done by now.

the first exam For any specific questions, please make an

appt. with me.

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