Strategic Marketing
List the five steps in the
Market Research Process.
Define Primary & Secondary Sources
Give an Example of Each
Five step process:
1.
Define the problem
2.
Obtain Data
1.
2.
Primary
Secondary
3.
Analyze Data
4.
Recommend Solutions to the
Problem
5.
Apply the Results
 Basic Research
 Done to expand the limits of knowledge
 Not done in relationship to a problem
 Applied Research
 Conducted when a decision must be made about a specific problem
 Example:
Should McDonald’s add pasta to its menu?
What price should Proctor & Gamble sell Crest Whitestrips?
Analysis and Interpretation of empirical evidence
(facts from observation or experimentation)
to confirm or disprove conceptions
Example: If I take an aspirin, my headache will go away
 Marketing research supports Marketing Concept
 The marketing concept is
 Not Product-Oriented
 Is Consumer-Oriented
 Focuses on long term profitability
 Customer Relationship Marketing (CRM)
 Emphasis on maintaining long-term relationship with loyal customers
 Total Quality Management (TQM)
 Focus is on integrating customer-driven quality throughout the organization
 Identify & evaluate opportunities
 The Opportunities of a SWOT Analysis
Examples:
 Mattel Toys investigates desires for play experiences
 Home cooking is on the decline. Purchase of precooked home replacement meals
is on the rise.
 Number of investors trading stock on the Internet is growing.
 Analyze Market Segments & Select Target Markets
 Cadillac investigates buyers’ demographic characteristics
 MTV, monitoring demographic trends, learns the Hispanic
audience is growing rapidly
 Sears learns women, age 25-54 with average household income of
$38,000, are core customers. Targets this market with "The Good
Life at a Great Price. Guaranteed. Sears."
 Plan & Implement a Marketing Mix
 Price: Safeway does a competitive pricing analysis
 Place: Caterpillar Tractor Co. investigates dealer service
program.
 Product: Oreo conducts taste test, Oreo cookie vs. Chips Ahoy
 Promotion: Consumers recognizing Burger King’s “Have it
your way” campaign
 Analyze Marketing Performance
 Comparing Market Share from this year to last year
 Did Brand Image change after new advertising?
 Kmart Case Study
 Kmart is a discount chain store that has always been
easily accessible in most urban areas
 More popular with African-American & Hispanic populations
 Started layaway program based on demographic being served
 Known for “Attention Kmart Shoppers” & Blue Light Specials
 In January, 2002; Kmart filed for Chapter 11 Bankruptcy
 CEO Chuck Conaway cheated investors
 Closed more than 300 stores
 Laid off 34,000 workers
 Attempted to redesign themselves by
 Lime Green & Grey Layout
 Wider Aisles, Better Lighting, Signs with city name
 Purchased SEARS in 2004
 2006: Orange & Brown Prototype
 Shelves were lowered
 Weaknesses
 Low marketing budget
 Low success rates in Suburban areas
 Negated Middle-Class demographic
 Seen as dirty, cluttered, & unkept
 In December 2011, Kmart & Sears closed over 100 locations
 A New Jersey store was selling expired medicine & baby formula
2011
2010
Walmart
$622 Million
$873 Million
Target
$683 Million
$639 Million
Kmart
$215 Million
$221 Million
 In April, 2013 Kmart attempted to reconnect with America’s Urban Youth
 Commercials
 1984 Kmart Commercial “We’ve Got It Good”
 1998 KMART (Rosie O’Donnel & Penny Marshall)
 2001 Kmart Commercial “Blue Light Always”
 Ship your pants
 Big Gas
 Yo Mama
 Da Rich Kidzz “My Limo”
 Selena Gomez
 Partnering with Univision on Mexican Game Show
 Improv Parody “Knicker” Commercial
 Examining Kmart’s Marketing Efforts
 Kmarts Brand broken down by year (1985, 2000)
 Define their target market
 SWOT Analysis of Kmart
 Can Kmart Re-Brand Themselves? Give 3 reasons supporting answer.
 Performance-Monitoring research
 Research that regularly provides feedback for evaluation and
control
 Indicates things are or are not going as planned
 Research may be required to explain why something “went
wrong”
Time
Constraints
Is Sufficient
Time
Available
Yes
Availability
of Data
Nature of the
Decision
Benefits v.
Costs
Information
already
on-hand
inadequate?
Is decision of
strategic or
tactical
important?
Does the
information
value exceed
the research
cost?
Yes
Yes
Do Not Conduct Market Research
Conduct
Marketing
Research
SURVEY MUST BE….
 Valid: Questions asked must measure what was intended to
 Reliable: Research technique produces nearly identical results in
repeated trials.
 Types of questions:
 Open-Ended: Respondents construct response
 Forced-Choice: Respondents choose response from list of answers.