1. Identify Problem

2. Plan Design

3. Specify Sampling Procedure

4. Collect Data

5. Analyze Data

6. Prepare/Present Report

7. Follow Up

• Identify the key marketing decision
• Usually TM or 4P's
• Translate into research problem

• Decide on
• Type of data needed
• Primary or Secondary
• Method of collecting primary data

• Secondary
• Already available
• Primary
• New knowledge created for this research effort
• Methods of getting primary research
• Observation
• Experimentation
• Surveys

1. Manual
2. Scanner
3. Mechanical
4. Ethnographic

• Changing a variable and analyzing results
• Usually change one of 4 Ps' and look at either sales or awareness
• Field or Lab

• In-Home Interviews
• Mail Intercept Interviews
• Executive Interviews
• Focus Groups
• Telephone Interviews
• Mail Surveys
• Internet Surveys

• Interviewer bias
• Presence of interviewer may change responses
• Consumer unwillingness to participate
• To increase?

• Types of questions
• Ordering of questions
• Wording of questions

• Likert scale
• "Wendy's food was excellent"
• SA   A   Uncertain  D  SD
• Semantic Differential
• The food at Wendy's was:
• Excellent__________Awful
• Old____________Fresh
• Healthy__________Unhealthy
• Projective Technique
• If a Wendy's hamburger could talk to a McDonald's or a Burger Kind hamburger, what would it say?

• Leading
• Loaded
• Double Barreled
• Jargon or Inappropriate terminology

• Sensitive, personal questions at end
• More difficult questions at end

• Who is the population?
• The universe of interest
• What will be used for the sampling frame?
• Identification of universe
• How do you know who is in the universe?
• What list?
• What type of sample will be used?

• Probability Sample
• Statistically valid- can generalize the results (apply to the population)
• Random
• Stratified Random
• Nonprobability Sample
• Not statistically valid- should not generalize
• Judgment, convenience

• Often outsource collection
• Select appropriate statistical methods

• Report
• Concise statement of the research objectives and design
• Summary of major findings and recommendations
• Follow-up
• Were recommendations implemented? Did they work?

• Legally finding out what your competitor is doing
• Part of a sound marketing strategy
• Helps companies respond to competitive threats

• Everything a person receives in an exchange
• Physical good, service, idea

• Types of products
• Branding of products
• Packaging of products
• Number of products
• How are new products developed and managed

• Classified by search process
• Type is not inherent to the product category

1. Convenience- merits little shopping
2. Shopping- will compare several options
3. Specialty- will go out of way to get
4. Unsought- Unaware or unwanted

• Brand
• Identification of the seller's product
• Brand Name
• The part that can be spoken
• Brand Mark
• Part that cannot be spoken
• Global Brand
• At least 20 percent of the product is sold outside its home country

• A shortcut in buying
• A promise
• About performance
• About quality
• Who creates the promise
• The company
• Other customers

• Loyalty beyond reason
• Lovemarks
• yesterday
• chick-fil-a

• Definition
• Value of a company/brand name
• True Meaning
• What extra value does the brand name bring
• Top brands
• So companies try to protect brands
• Lanham Act 
• Copyright
• TM

• Often outsourced to branding companies
• brand institue
• Nuancing
• Name development
• Characteristics of good brand names
• Easy to say
• Memorable
• Suggests product use
• Can be easily translated
• Evokes correct emotion- brand values

• Brand versus no brand (generic)
• Manufacturer (by producer)
• Private (by retailer)
• Family (all products have same brand) versus Individual (each product has own brand)
• Co-branding
• Two individual brands, from different companies, are shown on one package

• Functional Benefits
• Contain and protect
• P&G packaging trends
• Perceptual Benefits
• Promote- last 5 seconds
• Create image
• Aveeno products
• Value benefit
• Facilitate use and add value beyond the contents

• Most firms offer a wide number of products
• Product mix = all items a firm offers
• Product line = group of related items
• Depth of product line = how many items in the product line
• Width of product mix = how many different product lines

• Firms continually develop new products
• New to world
• New modification
• New to firm
• Use an established new product development process
• Manage products throughout life cycle

1. New Product Strategy
2. Idea Generalization
3. Idea Screening
4. Business Analysis
5. Development
6. Test Marketing
7. Commercialization

• A goal or strategy on how new products will fit into overall corporate success
• Apple
• 3M's strategy

• Sources of New-Product Ideas
• Customers
• Employees
• Distributors
• Competitors
• Vendors
• R&D
• Consultants

• Narrowing down and eliminating bad ideas
• Includes concept testing 

• Will the numbers work?
• Demand
• Cost
• Sales
• Profitability

• Creation of prototype
• Packaging, branding, labeling
• Final government approvals if needed
• Detailed marketing strategy
• Significant cost commitment

6. Test Marketing

• The limited introduction to determine consumer reactions
• Sometimes done with a scanner panel
• Sometimes done in a lab setting

• Production
• Inventory Buildup
• Distribution
• Advertising (consumer and trade)

• Will this (new product development process) guarantee success in the market?
• NO, but will reduce risk
• Why products fail
• No discernible benefits/differences
• Product quality problems
• Poor execution of other marketing elements

• The process by which the adoption of a new product spreads.  Diffusion is faster when
• Complexity is lower
• Compatibility is higher
• Relative Advantage is higher
• Observability is higer
• Trialability is higher

• Sales growth of new products can be tracked over time
• Length of time varies but basic shape remains the same
• Best used for product categories

• Characteristics
• New product
• High costs to market
• Profit none (negative)
• Generally no competitors
• Innovators buy
• Strategies
• Must create primary demand
• Offer basic product
• Advertising should educate and inform
• Sampling, give- aways

• Characteristics
• Rapidly rising sales
• Profits increase and often peak
• Some repeat buyers
• Competition begins to enter
• Early adopters buy
• Strategies
• Must create specific (secondary) demand
• Lower prices to gain market penetration
• Expand distribution and advertising

• Characteristics
• Sales reach a high level, but growth slows
• Many competitors (price)
• Market saturation
• Profits are high and then begin to decline due to price pressures
• Middle majority buys
• Strategies
• Look for new product innovations and modifications
• Heavily promote brand with reminder advertising
• Offer incentives

• Characteristics
• Sales drop off
• Profits stop
• Laggards buy
• Strategies
• Reduce promotion
• Consolidate inventory to a few locations
• Consider modifying or dropping product

• Increase frequency of use
• By same consumers
• Increase number of users
• Expand into different target market with same product
• Find new uses
• Identify new applications of the product

• Physical supply network
• Raw Materials
• Components
• Mfg
• Physical distribution network
• Mfg
• Resellers
• Consumers
• Sometimes called value chain or demand chain

• Seamless management of all activities through which raw materials are transformed into products and made available to final consumers
• Management requires:
• Channel management
• Logistics management

• Mfg - end user
• Best used when/for:
• Complex, expensive, customized items
• Many B2B products
• Mfg wants control

• Mfg - Dist-Ret-end user
• Mfg - Ret - end user
• Best used for:
• Low cost, standard items
• Most consumer products

• Retailer
• Sells mainly to final consumers
• Merchant Wholesaler
• Buys and takes title to goods from mfg
• Stores, ships, and sells to other businesses
• Agent and/or Broker
• Facilitates sale between mfg and others. Does not take title

1. Intermediaries develop skills in selling
2. Intermediaries overcome Discrepancies
3. Intermediaries provide contact efficiency

• Customer knowledge
• Efficiency in handling large volumes
• Good at merchandizing

• Discrepancy of Quantity
• Manufacturer produces in large volume, consumers buy in small volume
• Discrepancy of Assortment
• Manufacturer produces many of one item
• Consumer buys one of many items

• Temporal Discrepancy
• Difference in when something is produced and when it is purchased
• Spatial Discrepancy
• Difference between where something is produced and where it is purchased

• With no intermediaries
• 25 Transactions Needed
• With 1 intermediary
• 10 Transactions Needed

• Transactional
• Promotion
• Negotiation
• Risk taking
• Logistical
• Distribution
• Storing
• Sorting
• Facilitating
• Researching
• Financing

• Functions must always be performed
• If no intermediaries, then must be performed by the manufacturer or the consumer
• For standard, low cost consumer items, intermediaries reduce the cost to the final consumer

• Disintermediation
• Elimination or reduction in the number of levels
• Increased use of electronic channels

• Management of physical flow of raw materials, components, and products across the supply chain

• To give the customer (channel member or consumer) the needed level of customer service at the lowest cost
• Usually measured in terms of:
• Order cycle time
• Product availability
• Order accuracy
• Flexibility
• Information

• Sourcing and Procurement
• Production Scheduling
• Order Processing
• Inventory Control
• Warehouse & Materials Handling
• Transportation
• Logistics Information System

• Objective
• Obtain needed supplies in right quality at lowest cost
• Develop long term relationships with suppliers

• Determining method and timing of the manufacturing of a mix of products
• Build to stock versus build to order

• A system for easily receiving orders and accurately and quickly filling them
• EDI - electronic data interchange
• Computer to computer exchange of ordering information

• Maintaining the correct amount of inventory
• Goal is to meet product availability standards while keeping costs low
• MRP, DRP systems

• Moving products within a facility
• Receiving, sorting, storing, finding, getting ready for shipment

• Railroads
• Motor Carriers
• Pipelines
• Water
• Airways

• Advanced computer technology (RFID)
• Outsourcing of logistics functions (3PLs)
• Electronic distribution

• Product characteristics can significantly impact logistics costs
• Logistics must be aware of upcoming promotions
• Effective logistics can reduce prices and/or increase revenue