Marketing Researcher And Marketing Information

Published Date: 02 Nov 2017

Introduction.......................................................................................................................................................0

1.0 Marketing Research.....................................................................................................................................1

1.1 Importance of marketing researcher and marketing information...............................................................1

1.2 Primary Research.........................................................................................................................................1

1.3 Main 2 limitations primary research............................................................................................................1

1.4 Secondary Research.....................................................................................................................................1

1.5 Min 2 limitations Secondary Research.........................................................................................................1

1.6 Quantitative Research..................................................................................................................................1

1.6.1 Explanation of Quantitative Research......................................................................................................1

1.7 Min 2 Limitations Quantitative Research.....................................................................................................1

1.8 Qualitative Research....................................................................................................................................1

1.8.1 Example of Qualitative Research..............................................................................................................1

1.9 Min 2 limitations Qualitative Research........................................................................................................1

2.0 Segmentation and targeting........................................................................................................................2

2.1 Role of segmentation...................................................................................................................................2

2.2 What makes a good segment?.....................................................................................................................2

2.3 Demographic segmentation.........................................................................................................................2

2.4 Purchasing occasion....................................................................................................................................2 

2.5 Usage..........................................................................................................................................................2 

2.6 Beliefs.........................................................................................................................................................2

2.7 Benefits sought............................................................................................................................................2

2.8 The importance of targeting........................................................................................................................2

2.9 Differentiated...............................................................................................................................................2

2.9.1 Undifferentiated........................................................................................................................................2

2.9.2 Concentrated ............................................................................................................................................2

3.0 Product Organization...................................................................................................................................3

3.1 Product.........................................................................................................................................................3

3.1.1 Design/Packing.........................................................................................................................................3

.3.1.2 Branding...................................................................................................................................................3

3.1.3 Features/Benefits......................................................................................................................................3

3.2 Price.............................................................................................................................................................3

3.2.1 Skimming..................................................................................................................................................3

3.2.2 Penetration...............................................................................................................................................3

3.2.3 Economy ...................................................................................................................................................3

3.2.4 Premium....................................................................................................................................................3

3.3 Promotion....................................................................................................................................................3

3.3.1 Advertising................................................................................................................................................3

3.3.2 Public Relations ........................................................................................................................................3

3.3.3 Sales promotion.......................................................................................................................................3

3.3.4 Direct marketing.......................................................................................................................................3

3.4 Place ............................................................................................................................................................3

3.4.1 Agents ......................................................................................................................................................3

3.4.2 Retailers....................................................................................................................................................3

3.4.3 Wholesalers..............................................................................................................................................3

3.4.4 Direct........................................................................................................................................................3

4.0 Service Organisation....................................................................................................................................4

4.1 Product ........................................................................................................................................................4

4.2 Price- lack of ownership .............................................................................................................................4

4.3 Promotion- perishable .................................................................................................................................4

4.4 Place- inseparable ......................................................................................................................................4

4.5 Physical Evidence- intangible ......................................................................................................................4

4.6 People- variable...........................................................................................................................................4

4.7 Process- perishable......................................................................................................................................4

5.0 Marketing mix..............................................................................................................................................5

Introduction

Andrej Maniukiwicz and his wife Jasmine Lee are considering ideas for their first businesses in Aberdeen. The suggested name of Andrej’s company is "Mike", which will produce cosmetics. The new environmentally friendly launched line will be called Nut. Andrej is considering setting up distribution to as many outlets as possible. He will make products with 3 quality ratings of platinum, silver and bronze in order to appeal to a wider retail market.

Jasmine is opening up an exclusive unisex hair, beauty and body care salon, to be named "Waterfall". She will provide, distribute and use Andrej’s cosmetics. "Waterfall" will provide the highest standard services, selling only platinum products. However, Andrej and Jasmine are new to the Aberdeen market, and do not have much marketing experience. A report has been commissioned to find out the nature of the marketing required, and its importance in organisations, and also to explain marketing decisions for both "Mike" and "Waterfall".

For a complete portfolio, leaflets have been collected for cosmetic products sold in Boots, and questionnaire and interview questions for the Mike and Waterfall companies have been provided, along with examples of products they sell, suitable prices for the Nut line, their promotions, and the location where the Waterfall salon will open. An example of 7Ps will also be provided, focusing on Jasmine.

1.0 Marketing Research

1.1 Importance of marketing researcher and marketing information

Market research is a vital part of any business that offers targeted products or services. Asking the customers for their preferences not only shows them that the company cares, but also removes the deduction work from customer services. A marketing decision must be made, so that marketers can make decisions about products or services. It helps to understanding competitors information such as network or customer focus. Increasing the sales of products or services helps a company maximise its profits. By understanding customer needs, wants and attitudes towards the products and determining.

1.2 Primary Research refers to the initial collection of data for specific purposes, using several research methods, such as interviews, questionnaires, surveys or observation.

1.3 Main 2 limitations primary research

Cost - secondary research and primary data might be extremely expensive as there is a great deal of marketer participation, and the cost of preparing and undertaking research can be high.

Time Consuming – strong primary data collection requires a research plan. From making decision until finishing project to the end of having results often takes much longer than the time it takes to secondary data.

1.4 Secondary Research, also known as desk research, is the most common research method in today's market. That data has already exist and collected by another party such as reports, press articles. Advantage for this method is cheaper than primary data and is more likely to use.

1.5 Min 2 limitations Secondary Research Although secondary data is easy to enter and cost-effective, it has significant limitations: desired information may be unavailable or obsolete, and the data source may not provide sufficient supporting material to allow the researcher to judge the quality of the research.

1.6 In Quantitative Research, related secondary data is sometimes not available, or accessing it is difficult or impossible. The context of program activities may be difficult to understand and data may not be robust enough to explain complex issues.

Primary research and secondary data can be obtained from internal and external sources: quantitative-observation, face to face, telephone surveys, post surveys. Collected data can be measured and analysed statistically.

Secondary Data is often used in conjunction with survey data. It includes census data, knowledge, attitude, behaviour, non-confidential client information, etc.

1.6.1 Explanation of Quantitative Research Appendix 1 shows quantitative research: a questionnaire used by Iridum Spa to determine how people view spas. It also determines what services customers are interested in and how much they might spend. Jasmine could use a similar questionnaire type for her spa.

1.7 Min 2 Limitations Quantitative Research

Experimentation issue with subject buyers of chancing witch measurement, expense, time taken. Also limitations is that a large sample population must be studied.

1.8 Qualitative Research concerns the gathering of information which can be interpreted in a number of ways; for example, people’s views, opinions and attitudes, group discussions, focus groups, interviews.

1.8.1 Example of Qualitative Research Appendix 2 shows qualitative research: an interview with Andrej Hoffman about Occupy Wall Street protesters.

Andrej Maniukiwicz could use this type of research and conduct interviews with customers to discover their opinions on his products.

1.9 Min 2 limitations Qualitative Research When conducting qualitative research researchers are very often biased by their own view on the subject that is checked. In this way the result can be slightly(or more) not correct because of the person’s doing it believes or opinion. Next big problem that can show up here is the fact that data gathering is very time consuming which of course involve cost, and sometimes it takes that long that the date may not be needed anymore or may not be valid.

2.0 Segmentation and targeting

2.1 Role of segmentation Market segmentation is used by organisations to develop products appropriate to consumers’ needs, setting appropriate prices. It ensures that the product is sold in the right place for those targeted and that promotion and advertising are offered to the targeted customers.

2.2 What makes a good segment?

Distinct and Identifiable: groups must be different from each other on variables that are measurable now and in the future.

Sizeable: groups must be large enough to be worth marketing for and selling to.

Reachable: groups can be identified in the market and targeted.

Stable: groups must be the same tomorrow as they are today, as customers can change over time, and segmentation solutions become "stale".

Profitable/Valuable: groups that are reached act on the messages and products they receive by purchasing; however, not all groups fit into this category. It is vital to identify which groups are unlikely to buy, so as not to target them.

Relevant: groups are integrated within a larger marketing plan and made sense of in the context of strategic direction.

2.3 Demographic segmentation includes age, gender, family lifestyle, generation, income, occupation, and education. Each of these impact on the purchase of the product. Regarding cosmetics, potential customers’ ages change the type of product they need. Older customers look for rejuvenating products while younger people want cheap and universal products. The gender of the customer could obviously influence the scent and packaging. Income is important when setting prices.

Appendix 3 shows gender and age-based segmentation. "Vitabiotics" such as Menopace, Osteocare, and Pregnacare are produced for specific life stages. Jasmine could similarly use specific services for particular demand.

2.4 Purchasing occasion Many marketing campaigns do not reach prospective buyers when they are most receptive to buying, which is where occasion-based marketing may boost response rates. The most common use of occasion-based marketing involves special days, as seen in the exclusive offers for Mother’s Day, Valentine’s Day, etc. People are more receptive to buying something related to a particular day in the weeks leading up to that day than at any other time of year.

Appendix 4 shows "Christmas Wishes", Superdrug’s offer to buy cosmetics "3 for 2"or to pay with loyalty card points instead of money. Andrej could use similar methods for his cosmetics line, to make his promotion more attractive for customer.

2.5 Usage The residential and commercial segments involve heavy usage, moderate usage or lesser usage. For example, in beauty parlours or personal care, some customers use several personal care products whereas others do not use them much.

2.6 Beliefs Consumers have beliefs when purchasing, and want to buy quality products. They want to buy organic, non-animal tested beauty services and products.

Appendix 5 shows that Superdrug supports non-animal tested products; Andrej could show similar support in his Nut line.

2.7 Benefits sought Benefit segmentation requires marketers to understand and find the main benefits customers look for in a product.

2.8 The importance of targeting A target market is a group of consumers identified as likely purchasers of a product, differing from other consumers in factors such as demographics, behavioural patterns and lifestyle characteristics. Target market is enables the company to direct its resources to customers with high potential for sales growth. There are three types of targeting strategies: differentiated – a number of different marketing mixes serving different segments; undifferentiated – the whole market targeted with one offer; and concentrated – focusing on one or a few specific market segments.

2.9 Differentiated a number of different market mixes which server different segments. Makes product different better then the competitions.

Appendix 6 shows Boots’ differentiated strategy "Gifts for her/ for him/ for all/ for kids".

"Mike" could use the differentiated strategy, as three different lines – bronze, silver and platinum - will provide variety for customers. It has the potential to satisfy different groups of customers depending on their age, income and social aspirations.

2.9.1 Undifferentiated is a sales-growth plan that makes the market segment differences, way to connect to all prospective customers with easy way such as through mass advertising and distribution.

Appendix 7 shows Colgate ProClinical toothbrush. Colgate attempts to appeal to all prospective customers.

Jasmine could use the undifferentiated strategy to target families, businessmen and women, students and workers, but her salon can offer the same service to all of them.

2.9.2 Concentrated This is a growth strategy, in which a firm’s resources are focused on a well-defined market niche or population segment.

3.0 Product Organization

3.1 Product

3.1.1 Design/Packing It is crucial that the company uses unusual, unique designs for the packaging of its products which are easily recognisable and product-defining. Each of the lines – platinum, silver and bronze – must have its own design adequate for its price bracket.

Appendix 8 shows how quality and design of similar products changes with price. Mike’s platinum, silver and bronze line Nut could employ a similar design.

3.1.2 Branding relates to the specific product, services name such as perfume "Dior", cram "Nivea" or Scotland whisky. Applied to the entire corporate identity company. The brand is created by developing exclusive packaging, design and quality of the product.

Appendix 9 shows the brand name for the James Bond range of products. Andrej must focus on similar consistency for his brand so that Mike will soon become recognisable on the market.

3.1.3 Features/Benefits are product characteristic such colour, design, functionality, size. Benefits – customer buy the products for their benefits, satisfaction.

Appendix 10 shows how features benefits of the product influence the whole brand. Body Shop bases most of it is brand name on its use of natural ingredients, producing environmentally- friendly cosmetics. Nut products could use similar features benefits.

3.2 Price

3.2.1 Skimming

Price skimming is a practice in which a company puts a product on the market with the highest possible price as the demand at the time when the product is fist introduced to customers is very high. As the demand starts to decreasing the company decreases gradually the price of the product so the more price sensitive customers can also buy the product. In this way the company can reach greater revenue from the product because of the customers who do not care that much about not very big differences in the prices and they just want to have the product.

3.2.2 A penetration strategy is designed to build up a market share with a lower price than the intended final price for a product. When the product will be caught on by customers and it will build up possibly highest market share for the offered price(when the market share increase starts to stable), then the company selling the product puts the price as they want it to be (final product price).

3.2.3 Economy usually represents the lowest price a company can charge for goods or services. This strategy would benefit bronze range products. The economy pricing takes a basic, low-cost move towards to marketing- the bare minimum to keep prices low and attract a specific, price-sensitive segment of the market. Appendix 11 shows Argos’s wheeled holdalls as an example.

3.2.4 Premium strategy establishes a price higher than competitors’ prices. It can be effectively used with unique products, or when the product is first on the market and the business has a distinct competitive advantage.

For platinum range products, the premium pricing strategy could attract class-conscious customers; the product can be placed in a high price bracket, suggesting it is of superior quality.

Appendix 12 shows Gucci Premier. Jasmine could use similar pricing for her platinum product.

3.3 Promotion

3.3.1 Advertising covers any paid-for communication from commercials, radio and Internet advertisements to print media and billboards. Advertising can reach thousands of potential consumers even over a wide area.

Appendix 13 shows that newspaper advertising, such as Pour femme Hugo Boss, can be repeated frequently, allowing consumers to digest the information and compare various competitors’ messages. Similar advertising for Jasmine and Andrej can help develop a long term image for products.

3.3.2 Unlike advertising, Public Relations are all the activities that the organisation does to communicate with target audiences that are not directly paid for. It is effective for building a good image for an organisation.

Appendix 14 shows the example of The Body Shop, which used public relations to develop its natural products. Jasmine could use similar advertising to develop her natural products.

3.3.3 Sales promotion is the process of persuading a potential customer to buy the product. Sales promotion is used as a short-term tactic, boosting sales and gaining customers’ attention. It is not designed to build long-term customer loyalty, as it encourages people to buy within a set time frame.

Appendix 15 shows Savers, an example of promotion.

Mike should have a lot of special gifts and offers for special days - birthdays, Easter, Christmas etc. - and offer discounts for students and loyal customers.

3.3.4 Direct marketing establishes an individual relationship between the business and the customer. Its wide range of promotional activities includes direct-response television and radio adverts, mail order catalogues, and e-commerce. This form of marketing may enable Andrej’s business to develop. Appendix 16 shows how Boots apply direct marketing.

3.4 Place

3.4.1 Agents are people who sell products or services offered by companies and usually have in return not only base salary but also commission.

3.4.2 Retailers can be classified in several ways: by types of goods being sold, type of service, size, ownership, location and brand. In the most simple words retailers are shops (outlets) that provide products and services directly to customers.

3.4.3 Wholesalers are like retailers but they do not supply directly customers but they supply retailer. They do not sell usually in small amount but rather in higher quantity and lower price. They very often specialize in only a particular branch of products.

3.4.4 Direct Intermediaries enable economising by reducing the number of transactions between producers and consumers.

Distribution channel intermediaries buy products in large quantities, reducing them into smaller quantities and broader assortments required by consumers.

Through their contacts and experience, intermediaries usually offer the firm more than it can achieve on its own, representing the best way for Andrej’s company to distribute its products. Mike will have more control over sales and distribution.

Appendix 17 and 18 show two different direct distributions by Argos and Next.

4.0 Service Organisation

4.1 Product is the core element in the marketing mix, as a strong product will enhance the brand position on the market. For example, Agne Adamoviciute’s Eyelashes Extensions provides a particular cosmetic product and service for clients, and Andrej’s products and services will be similar (see Appendix 19).

4.2 The Price determines the company's profits and survival. Jasmine must consider customers’ perceived value for her services, as they may use rival competitors’ services if they do not feel they are getting good value for their money. There is a lack of ownership for particular services such as spas, as other companies can provide similar services, so Jasmine must look at the prices charged by her competitors for this and ensure value for money for her clients.

Appendix 20 shows leaflets from Cosmo restaurant, which offers good prices for a wide range of products. Jasmine can apply similar packages and level of service to her spa.

4.3 Promotion represents all of the methods of communication that a marketer may use to provide information about the product. Consumers do not normally need to make an appointment when shopping for products, but often do when they want to pay for a service, and can become irritated at having to wait for it. It is therefore essential for a service provider to minimise the amount of waiting time for customers as, unlike supermarkets, it cannot offer alternatives such as home deliveries or online buying.

Appendix 21: the Body Shop's promotion, including free makeovers. Therefore, Jasmine could consider offering promotions and price reduction or complimentary meals, drinks, etc.

during the process of booking appointments for clients who have to wait during appointment times. Promotions should be continued for as long as possible in order to increase demand, as they are perishable and cannot be continued forever.

4.4 Place In marketing mix, this is the location of the market and the means of distribution used to reach it.

Inseparable Unlike products, a service cannot be taken away from its producer, as the company performs an action for the customer rather than just selling them a physical object. Accordingly, the service location must be easily accessible for clients.

Appendix 22: the Cosmo restaurant is conveniently located in Aberdeen city centre, and its customers do not just consume its products but pay for a service – experiencing the restaurant’s ambience instead of just buying a food product and eating it at home. Jasmine could use a similar location for her spa.

4.5 Physical Evidence concerns the physical source of the service and products. A company can differentiate itself from its rivals in terms of pricing for services and unique customer experience; for example, all style bars offer a fashion experience, but Ishoka provides physical evidence in its advertisement of specific hairstyles for clients (see Appendix 23), on which it can base its prices.

Intangible: services cannot be held or touched, unlike products, because services are experienced by customers, and experiences are not physical products.

Appendix 24: the Forever Young Aesthetics LMT; they provide services such as massage. Jasmine should offer similar services for her spa.

4.6 People (Variable) Employing the right staff is crucial in creating a competitive advantage, as clients will judge the quality of service delivery based on the people who deliver it, as they are one of the few visible service elements they can communicate with. Accordingly, staff must have suitable interpersonal skills, abilities, and knowledge to provide a high standard of service.

Appendix 25: the Harry Potter’s Herbals company, with 200 years' knowledge and experience. Jasmine can hire similarly well-trained staff for her spa.

4.7 Process Services only have limited capacity; therefore, the company needs to know when customers will come via booking systems and, as services are perishable, to know quiet times, in order to run promotions.

Appendix 26 shows the promotions for Christmas Eve at Chiquito restaurants; customers can book tables before Christmas Eve. Jasmine could use a similar booking system for her customers, to know how many customer will come for treatment in a day.

5.0 Marketing mix

Appendix 26: a Press & Journal article outlines the "Cost of bypass". A proposed Western Peripheral Route bypass will decrease traffic in and around the city, reducing overcrowding at busy times. If the bypass proceeds, Andrej could profit from quicker deliveries to his Aberdeen customers. Reduced driving time would ease the cost of fuel, reinvesting savings in promotions or research into new goods.

Appendix 27: an article from the Press & Journal outlines the "Number of people living into old age..." "As more people get older the number going into care is bound to increase." If her potential client group live longer, Jasmine can provide flexible professional services for them. With an increasing number of customers, her salon will develop; furthermore, she can reduce prices for loyal customers, making her place and services more attractive.