Question

Market Research

• Describe what the concept is and how it functions.
• Explain how it molds the beginning stages of a marketing plan.
• Describe how it changes throughout the course of marketing plan’s “life”.

Segmentation

• Describe what the concept is and how it functions.
• Explain how it molds the beginning stages of a marketing plan.
• Describe how it changes throughout the course of a marketing plan’s “life”.

Pricing

• Describe what the concept is and how it functions.
• Explain how it molds the beginning stages of a marketing plan.
• Describe how it changes throughout the course of a marketing plan’s “life”.

Targeting

• Describe what the concept is and how it functions.
• Explain how it molds the beginning stages of a marketing plan.
• Describe how it changes throughout the course of a marketing plan’s “life”.

Positioning

• Describe what the concept is and how it functions.
• Explain how it molds the beginning stages of a marketing plan.
• Describe how it changes throughout the course of a marketing plan’s “life”.

Answer 1

Definition: The process of gathering, analyzing and interpreting information about a market, about a product or service to be offered for sale in that market, and about the past, present and potential customers for the product or service; research into the characteristics, spending habits, location and needs of your business's target market, the industry as a whole, and the particular competitors you face

Market research involves two types of data:

• Primary information. This is research you compile yourself or hire someone to gather for you.
• Secondary information. This type of research is already compiled and organized for you. Examples of secondary information include reports and studies by government agencies, trade associations or other businesses within your industry. Most of the research you gather will most likely be secondary.

When conducting primary research, you can gather two basic types of information: exploratory or specific. Exploratory research is open-ended, helps you define a specific problem, and usually involves detailed, unstructured interviews in which lengthy answers are solicited from a small group of respondents. Specific research, on the other hand, is precise in scope and is used to solve a problem that exploratory research has identified. Interviews are structured and formal in approach. Of the two, specific research is the more expensive.

When conducting primary research using your own resources, first decide how you'll question your targeted group: by direct mail, telephone, or personal interviews.

b)

The success of your strategic marketing plan is as good as the information that it is based on. Conducting research will give you valuable insight to help shape your marketing strategy, plan and support your branding efforts.

In today’s very competitive, global marketplace, your marketing strategy must be backed by sound research to insure a consistent and effective approach to offering your products and services. It is essential to know who your customers are and how to position your company effectively against your competition.

You need to conduct research to learn what the market’s perception is of your company or organization. The outcome of your research will help you align your image and identity with proactive actions geared to successfully shape your marketing and prevent costly missteps. Your research is the backbone of your marketing plan.

Market research includes secondary and primary research. No matter the size of your budget, you need to first do secondary research.

With a great availability of information on the Internet through web search, you can quickly gather information about your competitors, new markets, product lines and services. You can review public information provided by government agencies, local, state and federal; trade associations, chambers of commerce, census bureau statistics and much more. You can quickly look at competitor’s websites and review what they are saying, their products and services. You can review press reports and see new developments and trends in your field.

c)

Everything you need to know about the importance of pricing. Pricing decisions can have very significant consequences for the organization

It is one of the first considerations for many customers and it determines the profit margin on products.

Pricing is one of the significant elements of the marketing mix, if late, it has come to occupy the centre stage in marketing wars.

Pricing is an important decision making aspect after the product is manufactured. Price determines the future of the product, acceptability of the product to the customers and return and profitability from the product. It is a tool of competition.

The importance of pricing can be studied under the following heads:-

1. Most Flexible Marketing Mix Variable 2. Setting the Right Price 3. Trigger of First Impression 4. Important Part of Sales Promotion 5. Influences Demand Level 6. Determine the Profitability 7. Means of Comparison.

d) Companies will not survive if the marketing strategy is dependent upon targeting an entire mass market. The importance of market segmentation is that it allows a business to precisely reach a consumer with specific needs and wants. In the long run, this benefits the company because they are able to use their corporate resources more effectively and make better strategic marketing decisions.

e)

argeting in marketing is a strategy that breaks a large market into smaller segments to concentrate on a specific group of customers within that audience. It defines a segment of customers based on their unique characteristics and focuses solely on serving them.

Instead of trying to reach an entire market, a brand uses target marketing to put their energy into connecting with a specific, defined group within that market.

The four main types of market segmentation are:

• Demographic segmentation: age, gender, education, marital status, race, religion, etc.
• Psychographic segmentation: values, beliefs, interests, personality, lifestyle, etc.
• Behavioral segmentation: purchasing or spending habits, user status, brand interactions, etc.
• Geographic Areas: neighborhood, area code, city, region, country, etc.

A brand might also leverage business segmentation, taking into consideration things like industry, company size, or annual revenue.

f)

Product positioning is an important element of a marketing plan. Product positioning is the process marketers use to determine how to best communicate their products' attributes to their target customers based on customer needs, competitive pressures, available communication channels and carefully crafted key messages. Effective product positioning ensures that marketing messages resonate with target consumers and compel them to take action.

Understanding Customer Needs

Effective product positioning requires a clear understanding of customer needs so that the right communication channels are selected and key messages will resonate with customers. Product positioning starts with identifying specific, niche market segments to target – not just women over 25 but women from 25 to 30 who work in senior-level management positions, make $X per year, are single and enjoy sporting activities. The more specific, the better.

In addition to identifying the customer based on demographic and psychographic (personality/lifestyle) attributes, marketers need to understand customer needs, especially relative to the products and services they have to offer, to clearly convey value as part of their marketing plan.

Weigh Competitive Pressures

Marketers must weigh competitive pressures when they are considering the positioning elements of their marketing plans. Effective positioning conveys to consumers why this company's product or service should be preferred over other competitive options based on what the company knows about the target audience's needs. Effective marketing plans clearly identify how the company's products or services are different from competitors' offerings and in what ways.

There is no value in being a "me too" product offering and simply copying what competitors are doing. Marketers must stand out from the crowd in ways that hold value for their target markets.

Targeting Communication Channels

Product positioning helps marketers consider how their offerings are different from others that consumers have to choose from. But it is not enough to know this from an internal perspective – marketers must communicate this to the target audiences. To do this effectively, they must choose communication channels that are designed to connect with their identified target audiences at times when they will be most receptive to these messages.

Consider how automobile manufacturers position their products through communication via television commercials during sporting events, for instance, or how cosmetics manufacturers run full-page, full-color ads in women's magazines.

Carefully Crafted Key Messages

The final challenge in effective product positioning is conveying the differentiating, value-added aspects of your product or service to your target audience through the communication channels you have selected. These messages are designed to convey how your product is different (and better) than competitive offerings, as well as to address the value-added attributes that are important to your audience. Product positioning is at the foundation of any effective marketing plan because it impacts the ultimate purchase decision.