Positioning Marketing research Dr. Stephen Fanning
Directions Section 1 provided the philosophy Section 2 provided the theory Section 3 is the application of philosophy & theory of marketing. Beginning with marketing research 2 types of research As needed research Everyday research
2 types of marketing research 1 As needed - [sometimes referred to as Ad hoc research] a) Specific to a particular need at a particular time b) Measuring changes to situational factors internal/external 2 Everyday - [some times referred to as routine or systematised] a) Part of an ongoing & regular business monitoring and control programme [Sales performance metrics] b) Established longitudinal benchmarking data
An old adage if it is not measured - it can t be managed if it is not measured - it can t be valued
Marketing research Collects and analyses the customer, organisation, the market, & the product
How market research can assist? Market research can assist in: Uncovering consumer dreams, desires, & demands Designing, developing, delivering new products Conducting a product review Assessing core, expected, & augmented product layers Positioning & re-positioning a product Assessing competition & market characteristics Assisting with continuous improvement process Measuring operational efficiency & effectiveness
Market research reduces risk Zaltman and Coulter (1995) suggests that up to 80% of all product failures are as a consequence of poor research. Therefore, market research is a vital management tool We are operating in a dynamic market - increased customer expectations, greater accountability and shorter product cycles The objective of MR is to provide reliable and accurate data, to enable managers to make informed decisions. Research quality improves the quality of decisions Although, does not guarantee success Like all investments must be cost effective outcome focussed
as needed The 5 stages of market research Ad hoc market research generally follows a 5 stage process: 1. Clearly define the research problem and objectives. 2. Develop an appropriate methodology 3. Data collection 4. Interpreting data 5. Presentation of findings
Data can be new or existing Primary data data that is not available from secondary sources and must be collected for a specific situation Secondary data* data that has been previously collected. Secondary data falls into two categories: internal external
Qualitative V quantitative tools Qualitative Discover the elements/qualities that are present Quantitative Measure the frequency that the elements occur Don t get hung up on the tools focus on the outcome
www.themarketingconcept.com Dr. Stephen Dr. Stephen Fanning
Clarifying key terms Marketing Audit Where is the organisation at the present? What are the current situational factors? How well does our total product meet the needs of our customers? Marketing Plan Articulation of desired position and basis of competition Identification of market strategies Identification of market/revenue goals Marketing Action Plans Identification of tactics Identification of responsibilities and timeline Marketing Control Measure performance against specifications Take corrective action where necessary
The architect metaphor What types of marketing research must an architect conduct?
A business plan is like the working drawings of an architect Different disciplines have different plans & responsibilities
Just as an architect would have written specifications Each component of the business plan would have specific outcomes. Each function agrees that this is the business that they are building.
Everyday research - making informed decisions Former MBA student states All I do is research. I spend my day doing research. When I review the sales figures or the production forecast figures, I am researching. I am comparing this year with previous years. When I am in a meeting, I am listening to my managers, I am researching. When I am with a customer, I am trying to determine how we can serve them better, improve our products, I am researching. Before I did this XXXX I thought that market research was something that market researchers did. Then it dawned on me I am a market researcher I gather information, I make conclusions but the difference is I have to make decisions based on my research and the quality of my decisions is dependent on the quality of my research. I am a lot more focussed on quality of information now. Note: qualitative and quantitative approaches
This is the most important slide you will ever see
Software for marketing practitioners [SfMP] covers a broad spectrum of software solutions/services
Marketing practitioners provide a service to the organisation & liaisse with other strategic planning group members
The strategic planning group Chief Executive Officer Chief Finance Officer Chief Operations Officer HR Chief Information Officer Chief Marketing Officer Articulation of desired market position & basis of competition The business plan Outlines the strategic intent of the organisation Finance plan Operational plan Information plan Marketing plan
The strategic planning group the meeting of the minds Peter Balsarini The strategic planning group comprises the chief executive officer and the senior discipline officers. They will generally meet at the beginning of the planning process and set out the parameters
The strategic planning group The strategic planning group will often begin the business planning process with a review of the organisation s philosophy the organisation s values the statements of purpose. This may result in some degree of realignment
The business-marketing planning process The marketing audit will be part of a longitudinal study [conducted on a regular basis]: Quarterly, half yearly, yearly Therefore, a process will be in place & information will be internal or external secondary data. May require as needed research
The 3 stages of CADDIE The 3 stages of the businessmarketing planning process: 1. Collect & Analyse relevant information 2. Design & Develop the marketing plan and action plans 3. Implement & Evaluate the specifications in the action plans We will refer to this process as CADDIE
Everyday marketing research Two types of everyday marketing research: 1. Strategic research is conducted as part of the business planning process. This is referred to as conducting a marketing audit 2. Tactical research is conducted to evaluate the performance of the organisation against the objectives specified in the marketing plan & marketing action plans. When necessary take corrective action
Everyday marketing research - strategic Strategic marketing research is conducted as part of the business planning process. This is referred to as conducting a marketing audit & explores the situational factors facing the organisation [COMP]: Customer Organisation Market Products
Everyday marketing research - strategic Collects and analyses the customer, organisation, the market, & the product
Everyday marketing research - strategic Collects and analyses the characteristics of the customers
The marketing audit COMP factors The situational factors [COMP] influence the consumer and the organisation a consumer perspective Influences the consumer s buyer decision process an organisational perspective Influences the businessmarketing planning process
The marketing audit customer audit A customer audit begins with an identification of the customer segments. This information is important as it will help determine: Identify the customer segments and the characteristics of the segments. Determine the methodology for undertaking the market segmentation process Which segments does the organisation intend to target [approach] Which segments does the organisation not intend to target [avoid]
The marketing audit customer audit Segmentation variables Geographical: location, city V urban, suburb, city, country, proximity to business Demographic: age, gender, occupation, income, disposable income, family life cycle Psychographic: lifestyle and values, aspirational goals Behavioural: usage, loyalty, outcomes sought Price/benefit: perceptions of product quality and value hence products at different price intervals Cultural: culture influences values and in-turn consumption activities. Importance varies from product to product VALS: on the basis of values, attitudes, and lifestyles
The marketing audit customer audit Segment characteristics Present & likely sales, growth, profitability, lifetime value expectations [quality, value] collective satisfaction product requirements [dreams, desires, demands]
The marketing audit customer audit Segment characteristics Identify income characteristics of segments [ability & willingness to purchase] Identify preferred payment methods, mediums, Location [in-store & on-line] Buying patterns [frequency] Motivators to enter the buyer decision process
The marketing audit customer audit Segment characteristics Satisfaction [episodic, cumulative, collective] Retention [NPS] Social media habits Word of mouth and referrals Competition within segment Consumer behaviour Involvement [e.g., family members, friends, groups, society] Bargaining power of customers [see Porter s 5 competitive forces in this chapter
The marketing audit customer audit Segment conclusions After considering the organisation s capabilities & constraints Organise the customer segments into a hierarchy of attractiveness
Everyday marketing research - strategic Collects and analyses the characteristics of the organisation
The marketing audit organisation audit Identifying the organisation s objectives Past and current objectives: 3 financial objectives 3 strategic objectives 3 communication objectives
The marketing audit organisation audit Past and present organisational objectives: Past performance on the 9 objectives of marketing practitioners [3Xfinancial, 3Xstrategic, 3Xcommunication objectives] budget and actual achievements any gaps that exist
The marketing audit organisation audit Current capabilities and constraints Key success factors, organisational competencies, culture, patents, technological skills, processes, employee performance, relative costs, marketing channel effectiveness, barriers to exit a market
The marketing audit organisation audit Revenue analysis: Size, growth, pricing, strategies, total sales and margins by product, life cycle, market position, market-share by segment, cost of sales, shareholder value analysis
The marketing audit organisation audit Brand analysis Customer relationship analysis, brand strength [uniqueness, relevance], brand stature [esteem, knowledge], brand equity [value as an asset], brand awareness, brand associations
Everyday marketing research - strategic Collects and analyses the characteristics of the market
The marketing audit market audit Characteristics of the market Financial [size, profitability, growth, market patterns, potential, profitability, life cycle issues] Competencies [Strategic imperatives, Key Success Factors] B2B & B2C communication channels Structure of market channels [distribution] Emerging trends and developments
The marketing audit market audit Characteristics of the market Past and present objectives: Current capabilities and constraints Revenue analysis: Brand analysis Potential competitors [new entrants] Competitor market power The types of market competition Models of market competition Macro external factors [PESTELE]
The marketing audit market audit Competitor market power Competitive nature and rivalry of the industry Threat of potential entrants [entry-exit barriers] Threat of substitute products Bargaining power of buyers [influence of consumers] Bargaining power of suppliers
The marketing audit market audit Competitive nature and rivalry of the industry
The marketing audit market audit The types of market competition Brand competition Product competition Generic competition Total budget competition
The marketing audit market audit Models of market competition
The marketing audit market audit Macro external factors PESTELE Political Economic Socicultural Technology Environmental Legal Ethical
Everyday marketing research - strategic Collects and analyses the characteristics of the product
The marketing audit product audit Product information would include: Product sales Total sales X product Total sales X territory Sales by [hour/day/week/month/year/ or other suitable unit of measure e.g., weather] Number of transactions Average sell price Margins X product
The marketing audit product audit Product information would include: Product inventory [e.g., value of inventory on hand usage rates] Product adoption & life cycle Product considerations Strategy, product line mix, positioning, uniqueness, value proposition, augmentation, involvement, contact, product components, decision type, recipient[s], category, classification, awareness Threat of substitute products
The business-marketing planning process The information is then analysed To determine The market attractiveness The ability to compete [in the market] This information will be passed on through the Chief Marketing Officer to the strategic planning group
The business-marketing planning process The strategic planning group Will synthesise the information from the various discipline reports Finance Operations Information Marketing
The business-marketing planning process The strategic planning group Although the report will be in detail, the Chief XXX Officers will often present the information in a SWOT framework Strengths Weaknesses Opportunities Threats
Discipline reports + SWOT summary presentation
The business-marketing planning process The next step would be an iterative process where the strategic planning group & the discipline groups craft the business plan and the various discipline plans