Communication strategies & planning: Budgets & new products (MR, unit 6)

1) % sales - most used
calculate ratio between past expenditure and sales (expenditure as % of total sales) multiply to meet this year's sales forecast

• out of date by time implemented
• budget will only increase if higher sales expected (fails to see that MC can CREATE sales volume)
• if brand under threat, no budget to counteract

2) % product gross margin - as & sales using gross margin

3) Residue of last year's surplus

• Demands surplus achieved in order to spend money
• Fails to recognise need for investment in growth brands or impact of competitive activities

4) % expected turnover - allocate fixed % of future turnover

5) Unit or sales ratio method - calculate fixed MC spend per unit and multiple by expected sales volume (benefits growth, disadvantages declining)

6) Parity (competitive expenditure) - base levels on assessment of competitor's expenditure
Calculate a % related to brand's share of market

• Ensure brand expenditure in line with competition
• Difficult to make accurate assessment of competitors spend (advertising is often published but not other categories)
• Fails to recognise competitor spending may be dictated by different problems/objectives

7) Share of Voice - as above on share of market reach rather than sales

8) Media inflation - previous year's budget increased in line with growth in media costs

• Real level of expenditure maintained
• Fails to acknowledge any other variables

9) Object-and-task method (DAGMAR)
Campaign objectives defined at outset. Numerical target given and cost of achieving this are calculated.

• Monitors campaign achievement v. targets
• Accuracy limited by ability to access sufficient information to cover all variables

10) Experimentation - most use at some time
Balance need to protect investment v. need to innovate
Sets overall marketing communications budget then tests in a mini-market (one region)

• Main sources of business protected
• Gain real experience and enhance budgetary process with this knowledge
• Restrict number of experiments to ensure data readable against the norm and that individual variables can be assessed

11) What we can afford - management determines level profit desired (fails to recognise contribution of MC and bit arbitrary)

BUDGET FOR NEW PRODUCTS
Can't use many usual approaches as past data unavailable
Approach similar to objective and task
Establish realistic time frame for achieving goals

[any more research here?]

Communication strategies & planning: Pull (MR, unit 6)

The 3Ps:

1. PULL strategy - to reach consumers
   
2. PUSH strategy - to reach channel members
   
3. PROFILE strategy - to reach all stakeholders

PULL - stimulate demand by encouraging consumers to pull products through the channel
DRIP
Differentiate - reposition and add value, so customer clear what brand means
Reinforce - remind lapsed customer of values and encourage to buy again
- reassure customers that recent purchase was wise
Inform - build awareness so when customer thinks of category, thinks of brand
- raise awareness at certain times: new variances, competitor entrants
Persuade - to behave in certain way (try, call for catalogue, collect tokens)

The ‘Strong’ theory assumes that advertising works by conversion [ads directly persuade consumers to purchase]; in contrast, the ‘Weak’ theory assumes advertising works significantly by reinforcement [create long-term memory & recall].

Strategy differs according to frequency of purchase:

• Routine - reinforce brand values, ensure high level of pack recognition at point of purchase
• Less regular - provide reassurance purchase is appropriate, use advertising to remind benefits of brand usage and advantages over competitors
• Infrequent - establish brand values, provide information on how it performs better than competitors

B2B & B2C strategies
B2C - common to use advertising & sales promotions
B2B - common to use personal selling

No buyer is more rational as decisions always taken by people.

B2B: The Decision Making Unit (DMU)

• Many people make decision
• Each may require different information: performance, financial, technical
• Product may be monitored for B2B needs
• Personal contact most common (often in-depth if big order or negotiations lengthy)

B2B: Possible marketing communications objectives:
create & maintain awareness, generate sales leads, pre-sell sales calls, contact minor members of DMU, build corporate & product images, communicate technical information, support promotional effort

Internet has transformed MC in B2B - extranets & intranets enable closer relationships
Personal selling most motivating BUT most expensive

B2B: Create & reinforce awareness

• Interval between purchases may be long so need to ensure cost-effective way of retaining contact & awareness
• Direct marketing may be most cost-effective solution:
• generate leads by maintaining contact
• create corporate & product awareness by tailoring messages to job functions
• pre-awareness of the proposition results in a more effective sales visit

Presenting & evaluating: oral presentations (MR, unit 11)

Structure:

1. Introduction (establishes credibility & rapport, get interest, give overview of shape)
   
2. Explanation of research methodology
3. Key findings
4. Conclusions/recommendations (clarifies & draws together into one main idea, states what you expect audience to do, reinforce recall to make main message memorable)
   
5. Questions

AUDIENCE
Their motivations & expectations:

• Need specific info. Motivated therefore better for speaker. Find out what they want and why?
• Interested in topic. Hold their attention by satisfying desire for relevant information. Do they have prior knowledge? Balance not boring them with assuming too much.
• Required to be there 'a captive audience' (compulsory or recommended by supervisor). Got to stimulate motivation and interest or can create resistance. Less likely to listen attentively or cooperatively.
• Expect to be entertained. Use of humour to illustrate. View as rest or recreation. Ensure you don't fulfil expectations at expense of primary objectives. May be possible to arouse more motivated interest.

Message must be: interesting (relevant to needs), congenial (supportive or helpful), credible, accessible (audible, visible, understandable)

PHYSICAL PREPARATION - consider physical factors that will affect audience's concentration
Listening conditions, freedom from interruption, heating and lighting, seating, audibility, visibility, seating layout (formal enhances speaker's credibility, informal is more congenial and encourages involvement), time (build in breathers if long using repetition, summary, Q&A breaks, time in day), speaker's appearance

CONTENT

• Prioritise - select key points and storyline. fewer points results in clearer direction.
• Structure - make notes that illustrate the logical order of your key points
• Outline - flesh out with supporting evidence, examples, notes where visual aids will be used
• Practise - rehearse and gauge length
• Cue - small cards with key words, reminder when to use visual aids, full text of any detailed info

CLARITY

• Cues clarify logical order, helping the audience to follow.
• Signal logical links with linking words or phrases, set out framework, use examples, anecdotes, questions (rhetorical or requiring audience to answer), explanation, description, definition, facts/stats to prove point
• NB. Importance of vocabulary and style

ADDING EMPHASIS - repetition, rhetorical questions, quotation, statistical evidence, exaggeration

ADDING INTEREST - analogies & metaphors, anecdotes, curiosity or surprise, humour (use cautiously)

CONTROLLING NERVES - reduce stage fright by preparing thoroughly, keeping notes to hand

NON-VERBAL MESSAGES - Look confident and relaxed, purposeful and dynamic movements, relevant gestures to reinforce, eye-contact (involve all)

VISUAL AIDS

• Film/video - realism, impact but can't interrupt or speed up to meet audience needs
• Presentation software - multimedia impact, professional design, can emphasise and link but risk of technical problems, often over-used and over complex "DEATH BY POWERPOINT"
  
• Flip charts - low-cost, low-risk, allows use during session but smaller, less impact, interrupt
• Handouts - audience doesn't need to take as many notes but no notes can mean passive listening
• Demonstrations - enhances credibility and impact but risk of hitches

Should not distract. Will impose practical requirements.
Must be: appropriate, easy to see
show each image long enough to be absorbed
maintain voice and eye contact
hand out supporting materials either well before or at relevant point (may distract)

HANDLING QUESTIONS

• Give opportunity to clarify any misunderstanding or gaps, or address doubts which you may not have anticipated
• Manner you field questions is crucial to credibility
• Anticipate them and have prepared answers

Why people ask? seek additional info, clarify, add information of their own, lead discussion into another area, display their knowledge, undermine your authority

Answering them... seek feedback throughout talk to check message getting across. Keep Q&As to end to prevent disruption. If question based on false premise, correct it. If rambling, interrupt and clarify it. If hostile, show understanding then reinforce your view. Admit your limitations with honesty. Repeat any that may not have been audible to everyone. Answer briefly. Keep time limit.

Presenting & evaluating: presenting findings (MR, unit 11)

Tables, bar charts, line graphs, pie charts, flow diagrams, pictograms, product positioning maps

TABLES

• Easier to understand large amounts of data, simple way of presenting numerical information.
• Must be clearly labelled, numbers should be right aligned with comma for 1,000s. If appropriate need subtotals and right-hand total column for comparison. Total figure at the bottom of each column).
• Usually better to have long thin table as easier to read across short lines but it's easier to compare across rows than down columns (so sometimes longer is more appropriate).
• Two-dimensional (rows & columns), can only show two variables

LINE GRAPHS

• Usually used to illustrate trends over time. Conventional to show time on the horizontal axis.
• Can show multiple variables or trends by using different colours of symbols at the plotted points.
• Important to consider vertical axis scale, should be just large enough to tell with reasonable accuracy.

BAR CHARTS
Common, each bar represents different item, height differs. Vertical or horizontal presentation possible.

• Vertical - if showing trends over time
• Horizontal - if showing differences at a single point in time (e.g. figures at end 2005)

PIE CHARTS - shows relative size of things that make up a total.
Most effective where number of slices small enough for easy analysis.

FLOW CHARTS (AND OTHERS) - present information that involves a series of steps or relationships between items.

• Consistency (flow: yes downwards, no to right). Connecting lines minimal and never cross. Labels brief.

Organisation chart
Pictogram: data represented by picture. Often used on TV as simple and appealing. Not appropriate if need to give precise figures.

PRODUCT POSITIONING MAPS

• Really form of scatter diagram.
• Two key product attributes (e.g. speed & size) taken and competing products graded to fit in between.

Presenting & evaluating information (MR, unit 11)

AUDIENCE THINKING SEQUENCE

a) Respect the client's importance (don't waste their time)
b) Consider the client's needs (need to make a marketing decision)
c) Demonstrate how your information helps the client (relate findings to original objectives)
d) Explain detail that underpins your information (why should findings be believed)
e) Remind client of key points
f) Suggest what client should do now (variety of options, give recommendations)
(Wilson 2002)

Important to communicate impartially: assumptions and recommendations should be clearly signposted, points should not be overweighted, facts and findings should be balanced against each other, firm conclusion should be reached, if possible.

Recognise needs and abilities of the audience: beware of jargon, keep sentence structures simple, use level of detail relevant to purpose, note range of audience (junior operational to lay, non-executive director)

RESEARCH REPORTS
Relative importance of points should be signalled by headings, each point should be numbered, should be easy on the eye with different font sizes, bold, italics and spacing.

SECTION A 1. HEADING 1.1 Sub-point 1.1.1 Sub-sub-points

Structure

1. Title page (with contact info)
2. List of contents (major headings & sub)
3. Executive summary (summarise findings)
4. Introduction/problem definition (similar to objectives set out in research brief & proposal)
5. Research method and limitations (similar to approach in proposal)
6. Research findings (main body)
7. Conclusions (implications of the findings with reference to initial problem)
8. Supporting appendices (questionnaire used, tables of figures, list secondary sources)

Questionnaires & quantative: observation (MR, unit 8)

Can be open/disguided, structured/unstructured

3 major categories of observation:

1) Indirect observation - 'home audit', investigate brands and products in home
2) Direct observation
Event must:

• occupy short period of time
• happen frequently
• be visible

3) Recording devices (lab = micro behaviour / natural = macro behaviour)

• Lab - psychogalvanometers (perspiration), eye cameras (attention), pupilometric cameras (visual stimulation)
• Natural
• manual - consumer diary (complete when behaviour occurs, not recall), detailed & onerous
• electronic - EPOS, audio & video recording, in-home scanning (pen scanner, other info can be keyed in too)
  

Adv: no reliance on guesses or honesty
Dis: not always feasible (no idea why chose product), labour intensive, attitudes can't be observed

RETAIL AUDIT - assess demand
- visit sample of shops to calculate sales (sales = original stock + deliveries) - final stock
- focus on larger shops with bigger range
- also enables competitor analysis

MYSTERY SHOPPERS - pose as genuine customer
Consider:

• suitable no. of shoppers, results may be affected by characteristics
• subjective observations inherent
• may need data collection training (subtly)
• credibility (e.g. financial services)

Questionnaires & quantative: interviews, surveys & tests (MR, unit 8)

(N.B. Interviews can be qualitative and/or quantitative)

5 main styles:

1. Street surveys
2. Shop surveys
3. Hall tests - prebooked location, entice with giveaways, possibility for more complex displays (c. 10mins)
4. Placement tests - test product in home over period, results in diary, costly and time consuming but realistic (recruit through omnibus surveys or street interviews)
   
5. Home interviews / business surveys - can pre-arrange, often reluctant to respond

POSTAL SURVEYS: any survey given without personal contact (25% of market research questionnaires)
Enumerators deliver postal questionnaires, collects and helps with any difficult questions. Better response rates.

TELEPHONE SURVEYS

• Advantages: rapid response, standard sampling frame (tel directory), wide geographic area, easier to ask sensitive questions
• Disadvantages: biased sample (10% no phone, many ex-directory), high refusal rate, difficult to build rapport, must be short, not possible to show materials

WEB SURVEYS (increasingly common)
- Design issues critical (include factors like processing speed, intuitive navigation)
- Can be generated dynamically in response to answers, skipping irrelevant sections automatically
- Web users may not be typical of target market?
- Difficult to establish sample frame

LABORATORY TESTS - measure responses to adverts, product descriptions, packaging. Controlled environment but difficult to isolate impact of factors.

FIELD TESTS - test in realistic surroundings over time. Expensive to produce in small quantities, risky as competitors may find.

• Home - and report by questionnaire
• Store - test packaging or POS material, results measured through sales figures
• Test marketing - try in ltd area of market to predict sales vol, profit, market share. Expensive but vital.

CONTINUOUS RESEARCH - take regular measurements to monitor changes in market (often syndicated as very expensive)
Omnibus surveys: master questionnaire run by market research org, space sold to orgs
Market Tracking Surveys: data on particular market using regular different samples, product usage data sometimes combined with media exposure data

IN-STORE TESTING - quick, inexpensive and good promotion

Questionnaires & quantative data (MR, unit 8)

QUESTIONNAIRE DESIGN - facilitate precise statistical analysis
either used to explore attitudes or seek factual information

Method:
Develop question topics derived from research objectives Select Q&A formats and wording
Determine sequence
Design layout
Pilot test (Wilson 2002)

FORMATS & WORDING

Precision

• Beware of:
• Ambiguity
  
• lack of Clarity - why am I asking this? what do I want to know?
  
• Conflation of multiple questions into 1
• making Unjustified assumptions

Open & closed questions
Closed - establish basic facts (predetermined answers or Y/N)
Open - own words but timely analysis. (offer ltd range of possible responses)

Leading questions
Mix positive & negative statements. If you suggest intrinsic preference, they'll try to answer as you want).

Formats

• Error of the central tendency - reluctant to be extreme, sit middle ground, only offer even no.
• Ranking - clearly indicate whether 1 is least or most important. Can confuse so use sparingly. Better to select one e.g. single most important contributor to...
• Scales - where factual info lies on continuum e.g. less than 3, 4-6, 7-10
• Select most relevant -"tick ANY that apply"
• The Likert Scale - respondents rate each on scale from strong disagreement to strong agreement (1-5) no absolute meaning, ltd statistical use
• The Semantic Differential Scale (+3 to -3, powerful to weak) pairs opposite attributes. Select position of object to degree which adjective describes. Subjectivity of language, some attributes bring others with them e.g. old cars = classic

SEQUENCE
Funnelling - progress from the general to the specific (broad context to underpinning data)
Halo effect - overall +/- feelings about issues influence responses to individual questions (distribute throughout rather than in sections)

LAYOUT

• lines, boxes, print size, small pictures
• clarity of tick boxes
• explain purpose - guarantee confidentiality (if possible)
• thank at end

LENGTH (short is always better)
Cold surveys: no prep or incentive
1-2 sides, 15-20 questions (presentation is key , user-friendly)
Postal questionnaires: respondents briefed & prepared but doing in own time
6-8 sides, 30-40 questions max (clear instructions, provide examples)

PILOT TESTS - VITAL!!!!

Qualitative data: focus groups (MR, unit 7)

usually 4-8 groups or 8-10 respondents + group moderator who poses discussion questions

Consider:

• Type
• Membership - users, non-users, homogenous
• Recruitment
• Number of groups (nothing new after 12)
• Discussion topics

Discussion guide (3 phases)

• Introduction - welcome, explain purpose, outline discussion topics, introduce participants
• Discussion - several themed sub-phases, product trial
• Summary and thanks

Moderator

• must form good rapport and sensitive to mood of group
• intervene if too far off topic or to stop individuals dominating
• ensure everyone gets to speak

Qualitative data: projective techniques (MR, unit 7)

Used because people may respond differently to how they actually act (telling you what they think you want to hear) or find it difficult to articulate

Methods:

• Third person - friendly martian
• Word association - I say women , you say ...... (assumption if answer quickly, spontaneous & sub-conscious thought revealed)
• Sentence completion - (quick responses, as above)
  
• Thematic Apperception Tests (TAT) - what's going on in a picture (or before/after)
• Story completion - what happens next
• Cartoon completion - complete balloon
• Psychodrama - imagine yourself as a product

Problems:
- No hard evidence of validity, may not be considered scientifically valid
- Analysis is highly subjective and prone to bias
- Small sample of population (can't generalise to market as a whole)
- Ethical issues invading subconscious when respondents unaware

Value:

• Reveal hidden motives for product usage
• can develop new promo messages
• test brand names, symbols, advertising copy for associations e.g. BrandTag
  
• test any hypothesis on more representative samples using quantitative techniques

Qualitative data: interviews (MR, unit 7)

USING QUALITATIVE RESEARCH
particularly useful for
- new products where no existing data
- to help define direction of more detailed research
- developing marketing communications messages and pre-testing them

Helps to:

• determine whether to continue development
• what further development required
• what part of market to target

INTERVIEWS
Unstructured
- Interviewer has list of topics to cover but free to word as wish
- Order varies allowing respondent to control data flow
- May provide relevant questions which can then be put to wider audience

Depth interviews
- Pattern of questioning should assist respondent to explore deeper levels of thought (open-ended questioning
- Uses psychoanalytic techniques

• Strengths:
• personal material more easily accessed & discussed
• respondents less likely to reiterate socially acceptable attributes
• Weaknesses:
• time consuming to conduct and analyses (1-2hrs)
• more costly than group discussions
• temptation to treat as quantitative questionnaires

Factors to consider when arranging interviews:

• Who should respondents be? depends on subject / 10-15 people / pre-recruit for consumer
  
• Type of interview? depth is 1-2-1
• Length - genuine depth 1-2hrs due to analysis time, mini depth could focus on predefined topic
• Structure - totally open-ended or semi-structured
• Any materials to be used? mock-ups, prototypes, storyboards

Secondary data: panels & indexes

midway between adapting secondary data and commissioning primary - purchase data collected by market research companies

CONSUMER PANELS: continuous research with representative sample whose buying activity is monitored regularly over period of time
Called home audit panel if home visits involved

Problems:

• Difficult to ensure a representative sample
• Panels become sophisticated in interviewing techniques which can corrupt data
• Difficult to ensure stable personnel (turnover)

Types of analysis available:

• Standard trend analysis: how market and major brands did since last analysis
• Special analyses: industry specific e.g. source of purchase, frequency of purchase, demographics

RETAIL PANELS
- Trade audits (wholesaler and retailer panels)
- Researchers undertake site visits to selected outlets at regular intervals: count stock & deliveries (EPOS systems make this easier)

Provides details of:

• sales for specific products and market share
• retail stock (enables comparison with competitors)
• selling prices in retail outlets

THE NIELSEN RETAIL INDEX
Range of continuous sales and distribution measurements (hundreds categories, thousands brands)
Data collected from major multiples (Tesco, Sainsburys)

SUPERPANEL
Data collection through personal terminals 28,000. Pen barcode scanner into modem.

OMNIMAS
Massive omnibus surveys random samples of 2000+ consumers each week (face-to-face)
(Omnibus surveys are regularly carried out by orgs asking regular questions, with some sponsored. Cheaper means of getting data.)

TARGET GROUP INDEX
Describes target groups, media consumption and product usage
Helps to plan more accurate media campaigns
25,000 responses per year including comparison of brand/product uses with various demongraphics

Secondary data: published secondary data (MR, unit 6)

IDAC PEG

INTERNET

• URl, surfing, directories and portals (Yahoo), search engines (Google, second generation), internet databases 'deep web'
• Initial search to find terminology and key concepts, then refine (+/-/or)

DIRECTORIES: Kompass Register, Who Owns Whom
ASSOCIATIONS: all collect and publish data for their users

COMPUTERISED DATABASES: ACORN, Reuters, Lexis Nexis, CIM Marketing Surveys Index

PERIODICALS: Economist, Campaign, Mintel

ENVIRONMENTAL SCANNING: informal process to gain market intelligence
Sources: business news, trade journals, academic journals, conferences and trade fairs, salesforce feedback, personal contact network, watching competitors
(Competitor intelligence system to collect: financial statements, info from former employees, inspect competitor's products, watch job advertisements)

GOVERNMENT (AND NON-GOVT) AGENCIES
Government: economic information, info on industry and population trends www.statistics.gov.uk
Non-govt: specialist companies, professional institutions, specialist libraries, trade associations, trade journals, market research agencies

Secondary data (MR, unit 6)

data neither collected by, nor specifically for, the user

always start with secondary research - check what's already known and what to investigate further
collecting secondary data = 'desk research'

THE USE OF SECONDARY DATA

• Backdrop to primary research - journals, existing market reports, press
• Substitute for primary research - primary is very costly, so use cost-benefit analysis
• Technique in itself - some information can only be got through secondary data e.g. trends over time

BENEFITS, RISKS & DANGERS OF USE
Consider...

• who produced it - e.g. bias, trade association may exclude counter interest
• reasons for data being collected
• collection method
• how old data is
• how parameters defined

Advantages:

• cheaper and quicker than primary
• can help: define parameters (hypothesis and sampling), give guidance, assimilate primary with past research

Disadvantages:

• relevance
• cost-benefit analysis
• bias
• accuracy:
• is the raw data available?
• were questionnaires properly constructed?
• large enough sample?
• were field workers supervised?
  
• correct analysis?

Marketing communications research (MR, unit 5)

ADVERTISING
usually measured by: MESSAGE DELIVERY, IMPACT, LIKEABILITY. PERSUASION (MILP)
success measured against objectives: awareness, attitudes, donations
CREATIVE DEVELOPMENT RESEARCH
Use qualitative techniques to feed into ideas or check understanding e.g. storyboards, roughs

PRE-TESTING

• predictive research
• measured quantatively against set criteria
• done via 'hall/studio tests' - audience shown with cluster of adverts with TV programme, or in portfolio of folders with others
• specialist agencies have normal values used to benchmark

TRACKING STUDIES
Buy into omnibus surveys which monitor pre-& post-advertising variables over time

• measure brand/product awareness (prompted and unprompted recall)
• attitudinal change
• imagery association

Panel surveys (barcode machine in homes to monitor purchases & switching)

COMMUNICATIONS RESEARCH - not just advertising

• Sales research - selling costs for different customers, is personal selling more effective
• Sales promotion research - what extra sales resulted from promotional spend? levels of retention post-promotion, what % to spend customer/trade?
• PR/publicity research - how to effective compared with others, how to measure attitudinal change, how much attention do people pay to editorial?

Distribution research (MR, unit 5)

Addresses...

• timeliness of distribution channels
• distribution options available
• profitability of various methods

Is distributor favouring own-brands or competitors in terms of shelf space

Price research (MR, unit 3)

WHY RESEARCH PRICE?

• use competitive pricing & offers as reference points
• calculate elasticity of demand (anticipated sales volumes based on price)
• benchmark product in market
• maximise profitability (identify more profitable customers & segments)

PRICE SENSITIVITY - varies considerably e.g. business traveller v. family on holiday

• customers have concept of 'just price'
• will search for info prior to purchasing, but forget soon after
• will buy a bargain without paying attention to need or actual price

PRICE PERCEPTION - can react to price increases by buying!

• expect more increases so stock up
• assume higher quality
• 'snob' appeal

FACTORS AFFECTING PRICING DECISIONS Intermediaries' objectives - conflict can arise between suppliers & intermediaries
Suppliers - may seek rise in price of supplies if they see products rising
Competitors' actions & reactions - petrol move in unison, supermarkets in price wars

Inflation - may rise, in periods of inflation, to maintain real prices (supplies, labour will increase)
Income effects - rising incomes means price is less important variable and vice versa

New product pricing - difficult as no reference points, find alternative references in another market
Multiple products - range of interrelated products means you can use 'loss leaders'. One product at very low price makes consumers buy others in range with higher price margins e.g. razors & blades. Supermarket own-brand.
Quality connotations

More product: attitude measurement & buyer motivation (MR, unit 5)

ATTITUDE MEASUREMENT

predisposition to act in a particular way

3 components:

• Cognitive - think, what they know or believe
• Affective - feel, emotional
• Conative - do, how disposed to behave

Measured using scaling techniques: Likert & Semantic differential scales

BUYER MOTIVATION
Motivation research techniques: in-depth interviews, focus groups, projective techniques
Patronage motives influence regular purchase (e.g. price, service, location, honesty)

Category management & product testing (MR, unit 5)

CATEGORY MANAGEMENT

managing categories as strategic business unit

categories are distinct groups that customers see as related or substitutable e.g. tinned veg
based on analysis of consumer data, EPOS, market research

PRODUCT TESTING
the evaluation and development of products from a marketing perspective

Consider (MMTTS):

• Management information required - what do they need? Concern re mixture of colour & shape, or decision whether to invest more?
• Market which it will sell in
• Type of product being tested - how new, how easily accessed
• Time & cost
• Need for standardisation - experienced researchers & comparable results

Differences between test centres:

• Sample size - weigh up cost and data reliability
• Type of people testing - current brand users, current product field users, current and potential users, cross-section of general population
  
• Type of test

• Monadic - one product to evaluate
• Comparative - two or more to compare (use for new product formulation)
• Sequential - one, wait, try second, then give opinion
• Conjoint - focuses on product features rather than identifying best
  
• Analysis techniques used on data will vary
  

Product Life Cycle (research, MR5)

useful model for marketing planning & control, difficult to predict precisely

3 areas:

• Product class - broad generic category e.g. cars (long maturity)
• Product form - e.g. 5-door hatchback, 2-seater sports (classic PLC)
• Brand/make - Ford, Vauxhall (erratic)

Classic:

RELEVANCE OF PLC TO PLANNING & CONTROL
Assess:

• Product's stage of life cycle
• How much longer product will contribute significantly to profits
• When new products need to launch in order to prevent cashflow problems (new products need to generate profit before cash cows enter decline)

So must regularly review existing products and analyse their future through:

• analysis of past sales and profit trends
• history of other products
• market research
• competitor analysis

Then either continue selling, prolong (modify, increase advertising, cut costs, increase promotion), or stop.