ChapterI

I
ntroduct
iont
oMar
ket
ingCor
eConcept

Whati
sMar
ket
ing?
Mani sasocialani
[Link] sar
eshapedbyint
erpl
ayofv
ari
ous
soci
alfor
[Link]
ingev
olv
est
hrought
hispecul
i
arsoci
alsy
stem.
AmericanMarketi
ngAssoci
ati
ondefi
nesmarketi
ngas“theperformanceofbusiness
act
ivi
ti
esthatdi
rectt
hef
lowofgoodsandser
vicesfr
om pr
oducertoconsumeroruser.
PrideandFerrel’
sdefini
ti
onofMarketi
ngsays,“wedefi
nemar ket
ingast hepr
ocessof
creati
ng,
dist
ri
but i
ng,andpromot
ing,andpri
cinggoods,
ser
vices,andideastofaci
li
tat
e
exchangerel
ationshi
psinadynamicenvir
onment.
Accordi
ngt oStanton,Et
zelandWal ker
,“Marketi
ngi satot
alsyst
em ofbusiness
acti
vi
ti
esdesignedtoplan,pri
ce,promote,anddistr
ibut
ewant-
sat
isf
yingpr
oductsto
tar
getmarketstoachi
eveorgani
zat
ionalobj
ecti
ves”.
AccordingtoPhil
ipKotler
,“Marketi
ngasasocietalpr
ocessbywhichindi
vidual
sand
groups obtai
n whatt hey need and want
st hr
ough creat
ing,of
fer
ing and freel
y
exchangingpr
oductsandsservi
cesofvaluet
oeachother”
.
Mazurdefi
nesmar
ket
ingas“t
hecr
eat
ionanddel
i
ver
yofast
andar
dofl
i
vingt
oa
soci
ety
”.
Marketingisdef
inesas“devel
opmentanddist
ri
buti
onofgoodsandservi
cesf
orchosen
consumersegment s by whi
ch pr
ofi
tabi
l
ityis achi
eved wi
th a goalofcustomer
sati
sfacti
on.
Aneffect
ivemarketi
ngef f
ortisinaccordancewi t
hethi
calbusi
nesspr
act
icesand
shoul
dbeeffect
ivef
rom bothsoci
alandbusinesspoi
ntofv
iew.

Whati
sMar
ket
?
Intheancientpast
,Mar ketwasdefi
nesasapl acewherebuyers,pot
ent
ialbuy
ers,
sel
l
ers,
resell
ers,
int
ermediar
iesmetf
orexchangeofgoodsandserv
ices.
Nowaday s,marketisdef i
nedasanyoneofv ar
iet
yofdiff
erentsyst
ems,inst
it
uti
ons,
procedur
es,socialr
elat
ionsandinf
rast
ruct
urewherebyper
sonstrade,andgoodsand
servi
cesareexchanged,formi
ngpar
toftheeconomy .
Duet
otheadventofI
nter
netandE-commercet
echnology,
ithasbecomeav
irt
ualwor
ld
andmar
ket
inghappensmoreinspacethani
ngeographi
calplace.
Dependi
ngont
hef
ocusoft
hemar
ket
er,wecancl
assi
fyt
hemar
ket
sasconsumer
mar
ket
s,i
ndust
ri
almar
ket
s,nonpr
ofi
tmar
ket
sandi
nter
nat
ional
(orgl
obal
)mar
ket
s.
Ty
pesofof
fer
ings
Modernmar keti
nginvolvestr
ansacti
onofent
iti
es-
namelyphysi
cal
goods,i
ntangi
ble
ser
vices,pl
aces,persons,ev
ents,cor
por
ateorgani
zat
ions,
inf
ormati
onorknowledge
andideas.
 Goods:ar epr oducest osat i
sf yconsumerwant s.
 IntangibleSer vices:Servicesi ncludeai r
li
nes,hot
els, andmai ntenanceandr epair
peopl e,aswel laspr ofessional ssuchasaccount ants,lawyers,engineer sand
doct ors.
 Places:pl acemar ketersi
ncl udeeconomi cdev el
opmentspeci ali
sts,real est
ate
agent s,commer cialbanks, local businessassociati
ons, andadv erti
singand
publ i
cr el
at i
onsagenci es.
 Event s:Mar keterspromot et i
me- basedev ent
ssuchast heOlympi cs,trade
shows, spor tev ents,andar tisti
cper f
or mance.
 Cor porateOr gani zat
ion:Or gani zati
onact i
vel
ywor ktobui ldast r
ong, favorable
i
magei nthemi ndofPubl ics.
 Informat ion/ knowl edge:pr oduct i
on,packaging,anddi str
ibuti
onofi nformat i
on
i
soneofsoci ety ’
smaj orindust ries.
 Idea:mar ketof feri
nghasbasi cideaati t
score.

Mar
ket
ingConcept

 Product ionConcept :Thepr oduct i

onconcepthol dst heconsumer swi l
lpr efer
product s’ thatarewi del yav ailableandi nexpensi [Link] spr emi sedon
thepr oduct i
onor i
ent ati
onoft hef ir
m.
 ProductConcept :productconcepthast hewpr opositiont hatconsumerwi ll
favor
thosepr oduct sthatof ferat tribut esl ikequal ity,per f
or manceandot herinnov at
ive
features.
 Sell
ingConcept :sel li
ngconcepthol dst hatconsumer sandbusi ness, ifleftalone,
willordinar il
ynotbuyenoughoft heor gani zationspr oduct .Theor gani zation
must ,ther efore,under takeanaggr essiv esel l
ingandpr omot i
onef fort.
 Mar ket i
ngConcept :mar ketingconcepthol dst hatt hekeyt oachiev ingi ts
organizat ional goal sconsi stsoft hecompanybei ngmor eef f
ectivet hant he
compet itorsincr eat ing,del i
v ering, andcommuni cat i
ngv aluetoi t
schosen
mar ket .
 Societ alMar ketingConcept :soci etal mar ketingconceptpr oposest hatt he
enterpr i
se’st aski st odet ermi net heneeds, want sandi ntent i
onsoft het ar get
mar ketandt odel ivertheex pect edsat isfactionmor eeffect iv
elyandef f
iciently
thant hecompet itor sinawayt opr eser v edorenhancet heconsumer ’
sand
society ’
swel lbeing.
 Relationshi pMar ketingConcept :r elationshi pmar ketingconceptposi t
st hat
mar ket i
ngasabusi nessf unct ioni saf fectedbycont inuityoft imeandt hus
entail
st heneedt of orgest rongr el ationshi pswi t
ht hecust omer .
  Holi
sti
cConceptofMar ket
ing:conceptofmar ket
ingposit
sthatt
hefuncti
onof
marketi
ngrequi
resabroadcanv aswit
hmul ti
pleperspecti
vestoembracethe
i
nter
playoffact
orsact
iveintheeconomy ,soci
etyandt hemarket
.

COMPARI
SONOFMARKETI
NGORI
ENTATI
ONWI
THOTHERORI
ENTATI
ONS

 Productor i
entedcompani esf eel thatt
hei rproductsell
sinthemar ketbecauseof
thequal ityofthepr oduct.
 Costor ientedmanager sbel ievedt hattheonl ywayt oimproveprofitsi
storeduce
mar keti
ngandpr oductioncost .
 Capaci t
yor ientedcompani esbel ievedt hatthemor etheymake,themor e
profit
ablet heyareandi ftheygoi ntothemar ketwithmor evar
iants,cust
omer
willbuyt hem.
 Errati
cor ientedfir
msbel i
ev edt hatnopl anningi spossibl
eforfuturebecause
nobodyknowswhati sgoingt ohappeni nt hef ut
ure.
 Amar ketingorientedcompanymakespr ofi
tbycr eati
ngopportunit
iestosati
sfy
mor eef fecti
velythecustomer sneedswi thi
nt heconstrai
ntsofit
sr esour
cesand
skil
l l
i
mi tati
ons.

UNDERSTANDI
NGTHEDI
FFERENCEBETWEENSELLI
NGMARKETI
NG
 Sell
ingandMar ket i
ngbri
ngdiff
erentori
ent
ationst obusi
ness; hencemanagers
areexpectedtof oll
owdiff
erentki
ndsofstrategiesforbusinesssuccess.
 Mar ket
ingisi
nf acttheactofbri
ngingtheproductt omarket.
 Sell
ingisaboutcl osi
ngasaleandt ur
ningapot enti
albuyerintoacustomer.
Closingasalei
scal l
edaconversi
on.

SELLI
NG

 Sel
l
inghasaproductfocusandismostlypr
oductdr
iven.
 Sel
l
ingi
saboutovercomingobject
ions.

MARKETI
NG

 Mar keti
ngisprimaril
yaboutr esearch–identi
fyi
ngpotenti
albuy
ersandthen
fi
ndingt hebestwayt ointroduceyourproducttothem.
 Mar keti
ng,ontheot herhand,hasawi derapproachthansell
i
ngandisdynamicin
nature.
 I
nmar keti
ng,processstartswiththeident
if
icati
onofconsumerneedsandwi l
l
notendunt il
consumerf eedbackistakentomeasur ehi
sorhersati
sfact
ion.

Accor
dingtoPr
[Link]
eLev
itt
,“t
hedi
ff
erencebet
weensel
l
ingandmar
ket
ingi
s
morethansemanti
c”.
MARKETI
NGMANAGEMENTPROCESS
1.I
dent i
fyi
ngcustomerneeds( MarketAnalysi
s)
[Link] at
ion
[Link]
ng
[Link] keti
ngstr
ategies(Market
ingPlanni
ng)
5.I
mpl ementationofhemar keti
ngprogram
[Link]
het otal
marketingeff
orts.

MARKETI
NGMI
X
Amarketingmixisthecombinat
ionoftheel
ementsofmarket
ingandwhatroleseach
el
ementpl ay
sinpromoti
ngyourproductandser
vicesanddel
i
veri
ngthoseproduct
s
andser
vicestoyourcustomer.
The4p’
sofmar
ket
ingt
hatar
etheel
ement
sofmar
ket
ingmi
xar
easf
oll
ows:

 PRODUCT
 PRICE
 PLACE(al
soref
err
edt
oasdi
str
ibut
ion)
 PROMOTION
EXTENDEDMI
XFORSERVI
CES
Inmarket
ing,
wehav
eext
endedmi
xwhi
chhast
hreeot
herel
ement
sinaddi
ti
ont
othef
ourgi
ven
abov
[Link]:

[Link]: Anessenti
ali
ngredienttoanyservi
ceprovisi
onistheuseof
appropri
atest
affandpeople.
[Link]: itr
efer
stothesy stem usedtoassi
sttheorgani
zati
onindel
iv
eri
ngt
he
serv
ice.
[Link] CALEVIDENCE:ist
heel ementoftheservi
cemixwhichall
owsthe
customeragaintomakejudgement sontheorgani
zati
on.

CORECONCEPTOFMARKETI
NG

Thecoreconceptofmar ket
ingi
sasoci
alandmanageri
alprocessbywhi chindi
vi
dual
s
orfi
rmsobtai
nwhatt heyneedorwantt
hroughcr
eati
ng,off
ering,exchangi
ngproduct
s
ofval
uewitheachother.

[Link]:

 Needsarethebasicrequi
rement
swhichhumanbei ngsrequi
ref
orexi
stence.
Thesemai
nlyconsi
stofair
,wat
er,
food,
clot
hingandshel
ter
Theneedscanbef
urt
hercl
assi
fi
edi
nto5t
ypesas:

[Link]
atedNeeds:

 Thesearethecl
ear
lydef
inedneedsoft
hecust
omer
;i.
e.t
hecust
omercl
ear
ly
tel
l
shisneedst
othecompany.

[Link]
Needs:

 Thesearetheactualneedsoft
hecust
omer
swhi
chhemaynotbeabl
eto
pi
npointt
othesal
esper
son.

[Link]
atedNeeds:

 Thesearet hebenef
it
swhicharenotaskedbytheconsumer
sbutt
heyex
pect
them nat
urall
ywit
hthepr
oduct
s/ser
vicesof
fer
ed.

[Link]
i
ghtNeeds:

 Whenacustomerget
smor ethanwhatheneedsandi
fthatmakeshi
m happy
,
t
heniti
scal
l
edasdeli
ghtneeds.

[Link]
etNeeds:

 Thesearetheneedswhichcustomerdoesnotwantt
odi
scl
osebutst
il
lgi
ves
i
ndicat
iont
ohaveitf
rom t
hesell
er.

[Link]
s:

 Thewantsareastepaheadofneedsandarel
argelydependentonthehuman
[Link] sdirect
edtoaspecifi
edobject
.
Wantsaredesi
gnedaccordi
ngtothet
asteandprefer
encesofthesociet
y.

[Link]:

 Ademandi sgeneratedwhenacust omeri

swil
li
ngtobuyaparti
cul
arpr
oduct
andhasanabili
[Link]
dstudynotonl
yhowmany
peoplewantt
heirproductbutalsohowmanywouldactual
l
yaffor
dtobuythe
product
.

Demand=Wi
l
li
ngnesst
opay+Abi
l
ityt
opay

[Link]
omerVal
ue:

 Valuer ef
lectst hesum oft hepercei
vedt angi
bleandi nt
angi
blebenefit
sand
coststocust [Link]
udebot heconomi candnon- economic
costswher easbenef i
tsincl
udebot htangibl
easwel lasi nt
angibl
eones.A
productorser vi
cesissuccessf
ulwheni tdeli
versvalueandsatisf
acti
ont othe
[Link] susual
lyacombinat
ionofqualit
y,ser
vice,andpri
ce.
 [Link]:

 Itisactofobtai
ninganobjectwhichoneneedsf r
om anot
herbyoffer
ingsome
otherthi
nginret
ur [Link]
keti
ngoccur swhenindi
vi
dual
sdecidetosati
sfyneeds
andwant st
[Link]
pstocreat
eabusinessenvi
ronment
whereexchangeofv al
uecantakeplace.

Foranexchanget
ohappen:

i
. Ther
eshoul
dbeatl
eastt
wopar
ti
esi
nvol
vedf
oranyki
ndofexchange.

i
i
. Eachpar
tymusthav
esomet
hingorot
hert
hati
nter
est
stheot
herpar
ty.

i
i
i. Eachpart
ymustbewi ll
i
ngtohav
eanexchangewit
hotherpar
tyandmusthav
ea
desi
rabl
eorat
leastaccept
abl
eopini
onaboutt
heot
herpart
y.

i
v. Each par
tymustbet
otal
l
yfr
eef
rom anyobl
i
gat
ion r
egar
ding accept
ing or
deny
ingtheof
fer
.

v
. Eachpartymustbeablet
ocommuni
cat
eanddel
i
vert
hepr
oductaspert
he
requi
rementoft
heot
her
.

[Link]
omerandConsumer
:

 Customer s and consumers are used i

nter
changeabl
yt o def
ine t
he same
i
ndivi
dualbutt her
eisadiff
[Link]
,af
teri
tispurchased,
di
fferent
iatesthecust
omerfrom aconsumer.

[Link]
omerSat
isf
act
ion:

 Sati
sfact
ionr
eflect
saper son’
sjudgmentofproduct
’sper
cei
vedperfor
mancein
rel
ati
onshipt
oexpectati
[Link]
isf
actionwit
hapurchasedependson
howwel lt
heproduct’
sperfor
manceli
vesuptothecustomer’
sexpect
ati
ons. 

i
. I
ftheper
for
mancef
all
sshor
tofexpect
ati
ons,
thecust
omeri
sdi
ssat
isf
ied.
 

i
i
. I
fitmat
chesexpect
ati
ons,
thent
hecust
omeri
ssat
isf
ied.

i
i
i. I
fitexceedst
heexpect
ati
ons,
thent
hecust
omeri
sdel
i
ght
ed.

I
nshor
t:

 Per
for
mance<Expect
ati
on→ Di
ssat
isf
iedCust
omer
  Per
for
mance=Expect
ati
ons→ Sat
isf
iedCust
omer

 Per
for
mance>Ex
pect
ati
ons→ Del
i
ght
edCust
omer

[Link]
omerLoy
alt
y:

 Loyalt
ycanbedef i
nedasacust omer’sstr
ongcontinui
ngbeli
efthatapart
icul
ar
organi
zati
on’
sproducts/ser
vicesofferremainsthei
rbestopti
[Link]
saidtobeloyalwhentheyconsistentl
ypurchaseacer t
ainpr
oductorbrandover
anextendedperi
odoftime.

[Link]
ket
ingV/
sMar
ket
:

 Mar ketingist hepr

ocessoft r
yingt ogetgroupofpeopl ei nterest
edi nbuying
company ’spr oduct
sorser vi
[Link] ganizati
onalf unctionandasetof
processest hatwor ki
nt andem toser v
et hemar keteffectively,ef
fici
entl
yand
profit
abl y
.Iti sasetofpr ocessesf orcreat
ing,communi cati
ng,anddel iver
ing
valuet ocust omersandformanagi ngcustomerrelat
ionshipsi nway sthatbenefi
t
theor ganizationandit
sstakeholders.

CHAPTER2
MARKETI
NGRESEARCH

Whati
sMar
ketResear
ch
Marketr
esearchi stheprocessofdetermini
ngthev i
abil
ityofanewser v
iceorproduct
thr
oughresearchconducteddi r
ect
lywit
hpotenti
[Link]
esearchal
lowsa
companyt o discoverthe t
argetmarket 
and getopinionsand otherfeedbackfrom
consumersaboutt hei
rint
erestint
heproductorserv
ice.
Thistypeofresearchcanbeconduct edin-
house,byt hecompanyi tself
,orbyathird-
partycompanyt hatspecial
i
zesi nmar [Link] hr
oughsurveys,
productt
est
ing,andfocusgr [Link]
ycompensat edwithpr
oduct
samplesand/ orpaid a smallstipend [Link] ketresearch i
sa crit
ical
componentinthe r
esearchanddev elopment (
R&D)ofanewpr oductorservi
ce.

HOW MARKETRESEARCHGATHERSI
NFORMATI
ON
Mar ketr
esearchconsi
stsofacombi
nati
onofpri
maryinformati
on,orwhathasbeen
gatheredbythecompanyorbyapersonhir
edbythecompany ,andsecondar
y
i
nfor mati
on,orwhathasbeengat
her
edbyan out
sidesource.

 PRI
MARYI
NFORMATI
ON

Pri
mar yinfor
mat i
oni sthedat athatthecompanyhascol l
ecteddirectl
yorthathasbeen
col
lected by a per son orbusi ness hired to conductt he [Link] ype of
i
nformat i
ongenerallyfall
sintotwocat egor ies:
explor
atoryandspeci fi
cresear
ch.
Explor
atoryresearchi sal essst r
ucturedopt ionandf unctionsv i
amor eopen- ended
questi
ons,andi tresult
si nquest i
onsori ssuesbeingpresentedt hatthecompanymay
needtoaddr [Link] stoprev
iouslyidenti
fi
edissuesthatare
oft
enbr oughttoattentionthroughexpl oratoryresear
ch.

 SECONDARYI NFORMATI ON
Secondar yi
nformati
oni sdatathatanout si
deent i
tyhasalr
eadygat [Link]
scan
i
nclude popul at
ion i nfor
mati
on f rom government census dat a, trade
associati
on r
esear
chr eport
s,orpresent
edr esear
chf r
om anotherbusinessoperati
ng
withi
nt hesamemar ketsector
.

THEDEVELOPMENTOFMARKETRESEARCH
Formalmarketresearchbegani [Link] oundthesamet i
me,
marketr
esearchintheUnit
edSt at
estookoffdur
ingtheadv er
ti
singboom oft
heGolden
Age of [Link] es t
hat adv er
ti
sed on t he radi
o began to underst
and
the 
demographi
cs t
hatwererevealedbyhowdiff
erentradi
oshowswer esponsor
ed.

 FACE- TO-FACEI NTERVIEWS

From there,companieswer edev el
opedt hatwouldint
ervi
ewpeopl eonthest reetabout
publi
cationsthattheyread andwhet herthey 
recogni
zedanyoft headsorbr ands wit
hin
theadst hatwerepubl i
shedi nthemagazi nesornewspaper stheinter
viewershowed
[Link] acoll
ectedf r
om thesei ntervi
ewswer ecompar edtot hecir
culati
onoft he
publi
cationinordert oseehowef fecti
vethoseadswer [Link]
chandsur veys
wereadapt edfrom theseearlytechniques.

 PHONERESEARCH
Datacol l
ect
iont
henshiftedt
othetel
ephone,makingface-
to-
facecont
actunnecessar
y.
At elephoneoper
atorcouldcoll
ecti
nformati
onoror gani
zefocusgroups—anddoso
quicklyandinamor eorgani
zedandorderl
yfashi
[Link]
hemar ket
researchmodelgreat
ly.
 
  ONLI NEMARKETRESEARCH
Withpeoplespendi ngmor et imeonline,manymarketresearchacti
vit
ieshav eshi
fted
onli
neaswel [Link] mayhavechanged,datacol
lect
ioni
sst il
lmainl
ydone
i
nasur vey-st
y l
[Link] nsteadofcompaniesacti
vel
yseekingpart
ici
pant sbyfi
nding
them onthest reetorby coldcalli
ng 
them onthephone,peoplecanchooset osignup
andtakesur veysandof feropi ni
onswhent heyhav
et i
[Link] smakest heprocessfar
l
essi nt
rusi
v eandl essrushedsi ncepeoplecandosoont heirownt i
meandbyt hei
r
ownv ol
iti
on.

THEFI
VE-
STEPMARKETI
NGRESEARCHPROCESS
[Link] inet hePr obl em orOppor tuni t
y
 Themosti mpor t
antpar toft hemar ket i
ngr esearchpr ocessi sdef i
ning t he
probl em.I nor dert odoanyr esear chandcol lectdata, youhav et oknowwhaty ou
aret ryingt olear nfrom t heresear ch.
 Inmar keti
ngr esear ch,definingt hepr obl em y ouneedt osol vewi lldet ermi ne
whati nformat i
ony ouneedandhowy oucangett hati nformat i
[Link] swi l
lhel p
youror ganizat i
oncl arifytheov er archingpr oblem oroppor t unity,suchashowt o
bestaddr esst helossofmar ketshar eorhow t ol aunchanew pr oductt oa
speci fi
cdemogr aphic. 
 Dev elopquest i
onst hatwi ll
allowy out odef iney ourpr obl
em ( oroppor tunity),and
exami neal lpot entialcausessot hatt her esear chcanbewhi tt
leddownt ot he
i
nf ormat i
ony ouact uallyneedt osol vet hatpr oblem ordet er minewhatact i
ont o
taker egar dinganoppor tunit
y.
 Oftent imes,t hesear equest ionsaboutwhoy ourt argetmar ketori dealbuy er
per sonai s( forexampl e:“Whatdoesouri dealcust omerl ookl ike?”).Thesemi ght
i
ncl udequest i
onsaboutdemogr aphics, whatt heiroccupat ioni s,whatt heyliket o
doi nt heirspar et i
me—any t
hingt ohel py ougetacl ear erpict ureofwhoy ouri deal
buy erper sonai [Link] derasmanyv ariablesandpot enti
al causesaspossi ble.

[Link]
elopYourMar
ket
ingResear
chPl
an

 Aftery ou’
veexami nedallpot enti
alcausesoft heproblem andhav eusedt hose
quest i
onst oboi ldownexact l
ywhaty ou’
ret ryi
ngt osolv
e,it’sti
met obuildthe
researchpl [Link] esear
chpl ancanbeov erwhelmingtocr eat
ebecausei tcan
i
ncl udeanymet hodt hatwillhelpyouanswert heresearchproblem orexpl orean
oppor t
unityidentif
iedinstepone.  
 To hel py ou dev elop the research plan,l et’
sr evi
ew a f ew techniques for
conduct i
ngr esearch:
 Intervi
ew pr ospectsandcust omer s. 
Oft
entimes,y ougett hebestf eedbackby
usingt hi
st acti
cbecausey ou’regoingstrai
ghtt [Link] ghtt akethe
form ofaf ocusgr ouporone- [Link] ourdefinedr esearch
 problem t ohelpsel ectt her ightpeoplet ointer
v i
ew.
 Conductasur v
ey using  Sur veyMonkey  oranothert ool.
 Oftent i
mes,wedoal loft hiswor kandgat heralloft hedat a—onlyt
or eal
izethat
wedi dn’thavetor einv entt hewheelbecausesomeonehadal r
eadyrunasi milar
,
crediblest udyorsol vedt hesamepr [Link]’ tmeany oudon’tneedt o
doanyr esear
ch,butl earningaboutwhatot heror ganizati
onshav edonet osolve
apr obl em orseizeanoppor tuni
tycanhel py outweaky ourresear
chst udyand
sav ey out i
mewhenconsi der i
ngal loftheresearchopt ions.
 In mar keti
ng resear ch,t hisi s call
ed secondar ydat a because i
thas been
collected bysomeoneel se,v er
sust hepr imarydat athaty ou would col
lect
throughy ourownr esear chst udy.

[Link]
lectRel
evantDat
aandI
nfor
mat
ion

 I
nmar ket
ingresear
ch,mostoft hedat
ayoucollectwi
llbequanti
tati
ve(number
s
ordat
a)versusquali
tat
ive,whichi
sdescr
ipt
iveandobservat
ional
.Ideal
l
y,youwi
ll
gat
herami xofthetwoty pesofdat
a.

 Forexampl
e,youmi
ghtr
unanA/ Bt
estony
ourwebsi
tet
oseei
fanewpr
ici
ng
ti
erwoul
dbri
nginmor
ebusi
ness.

 I
nthatr
esear
chstudy,youmightal
sointerv
iewsev er
alcustomersaboutwhet
her
ornott
henewpr i
cingt
[Link] ,you’
rerecei
vi
nghard
dat
aandqual
itat
ivedat
athatprovi
demor ecolorandinsi
ght.

 Whencol l
ecti
ngdata,makesurei
t’
sval
i
dandunbi
[Link]
eraska
researchi
nter
viewee,“
Yout hi
nkt
hatweshoul
doff
erahi gherpr
ici
ngti
erwit
h
additi
onal
servi
ces,cor
rect
?”

 Thist y
pe ofquest i
on i
s cl
ear
lydesigned t
oi nfluence t
he waythe person
[Link]
ngbothopen-
endedandclosed-endedquesti
ons(f
orinst
ance,
amul t
iple-
choi
cequesti
onaski
ngwhatincomer angebestdescri
besyou)
.

[Link]
yzeDat
aandRepor
tFi
ndi
ngs

 Nowt hatyou’v
egat heredalloftheinformati
onyouneed,i
t’
st i
meforthefunpart
:
analy
zingthedat [Link]
houghonepi eceofinfor
mationordatamightjumpoutat
you,i
t’
simpor t
antt ol
ookf ortrendsasopposedt ospeci
fi
cpiecesofinf
ormati
on.
As you’re analyzi
ng y ourdat a,don’ ttr
yt of i
nd patt
erns based on your
assumptionspriortocollect
ingthedat a.
 
  Somet imes,it’
simportantt owr it
eupasummar yoft hestudy
,incl
udingt he
process thaty ou foll
owed,t he r esul
ts,conclusi
ons,and whatst eps y ou
recommendt akingbasedont hoser esul
[Link] fyoudon’tneedaf or
mal
mar keti
ngresearchreport,besuret hatyourevi
ewt hestudyandresul
tssot hat
youcanar t
icul
atether ecommendedcour seofact [Link]
ingthechartsand
datay oucol
lectedispointl
essifitdoesn’tl
eadtoaction.
 

5. YourResear
chi
ntoAct
ion

 Yourr esearchiscomplet
e.I
t’stimet opresentyourfindingsandt akeacti
on.
Startdevelopi
ngyour 
market
ingstrategi
esandcampai [Link] ourfi
ndingsto
thetestandgetgoing!Thebiggesttakeawayhereisthat,alt
houghthisroundof
researchiscomplet
e,i
t’
snotover.

 Thepr oblems,businessenvi
ronment
,andt r
endsareconst antl
ychangi ng,whi ch
meanst hatyourresear
chisneverover
.Thet r
endsy oudiscoveredt hroughy our
researchar eevolvi
[Link]
ngy ourdataonar egularbasist o
seewher ey oucani mprov
[Link] ey ouknow abouty ourbuy erper sonas,
i
ndust ry
, andcompany ,
themoresuccessf
ulyourmar keti
ngeffortsandcompany
[Link] oulookatitthatway,youshouldstarttowonderwhysomany
organizationsdon’
tbudgetti
meandresourcesformar ket
ingresearch.
ChapterIII
consumerbuy ingbehav i
or

ConsumerBehav
ior
Consumerbehavi
orr
eferstotheacti
onsofconsumer
sint
hemar
ket
placeand
under
lyi
ngmotiv
esforthoseacti
ons.

Consumerbehav
iorisdef
inedast
heprocessandphysical
act
ivi
tyindi
vi
dual
sengagei
n
wheneval
uati
ng,acqui
ri
ng,usi
ngordi
sposingofgoodsandser
vices.

Consumerbehavi
orref
lect
sthet
otal
it
yofconsumer
sdecisi
onwithrespecttothe
acqui
sit
ion,
consumpti
on,anddi
sposi
ti
onofgoods,
ser
vices,
time,andideas.
Consumerbehavi
orref
erstot
hebehavi
orthatconsumersdi
spl
ayinsear
chingfor,
pur
chasing,
usi
ng,eval
uati
nganddi
sposi
ngofpr oduct
sandser
vicest
hattheyexpect
wil
lsat
isfyt
hei
rneeds.

Consumerbehav
iorr
efer
stotheacti
onsanddeci
sionsprocessesofpeopl
ewho
pur
chasegoodsandservi
cesforper
sonal
consumption.

Consumerbehav iorr
efer
stothement
alandemoti
onalpr
ocessesandtheobser
vabl
e
behaviorofconsumersduri
ngsear
chi
ngfor
,pur
chasi
ngandpostconsumptionofa
productorservi
ce.

Di
ff
erentt
ypesofbuy
ingmot
ives
I
nher
entandl
ear
nedbuyi
ngmoti
ves–arethosewhi
char
isef
rom t
hebasi
cneedsof
t
heconsumer
ssuchassex,
comfor
tandsafet
y.

Emotional
andrat
ional
buyi
ngmoti
ves–ar et
hose,
whichareaffect
edbyconsumer
feel
i
ngsandareoftenj
udgebyusi
ngfeel
i
ngsoraff
ect
ivepartofconsumer
’satt
it
ude.

Psychol
ogicalandsoci
albuyi
ngmot i
ves–thesearebasedonper sonal
feeli
ngsand
cov
erawi derangeofmot i
vesincl
udi
ngimpulses,
inst
inct
s,habi
tsanddriveset
c.

Di
ff
erentbuy
ingr
oles
I
nit
iat
or
I
nfl
uencer
Gat
ekeeper
Deci
der
Buy
er
User
Pr
epar
er
Mai
ntai
ner
Di
sposer
Dev
elopi
ngt
he7o’
sfr
amewor
kforunder
standi
ngconsumerbehav
ior
Whoi
stheconsumer
?(Occupant
s)
Whatdoest
heconsumerbuy
?(Obj
ectofpur
chase)
Whyi
stheconsumerBuy
ing?(
Obj
ect
ive)
Whendot
heyBuyorHowOf
tendot
heyBuyandUse?(
Occasi
on)
Wher
edot
heyBuy
?(Out
let
s)
Howdot
heyBuy
?(Oper
ati
ons)
Whoi
sInv
olv
ed?(
Organi
zat
ion)
Ty
pesofbuy
ingdeci
sionbehav
ior

Consumer
’sDeci
sionpr
ocess
St
imul
usResponseModel
ofConsumerDeci
sion-
maki
ng
St
agesi
nconsumerdeci
sionpr
ocess

st
agesofconsumer
deci
sion-
makingpr
ocess
St
ageofPr
obl
em Recogni
ti
on
St
ageofi
nfor
mat
ionSear
ch
St
ageofAl
ter
nat
iveEv
aluat
ion
St
ageofPur
chaseDeci
sion
St
ageofPostPur
chaseBehav
ior
Fact
orsi
nfl
uenci
ngbuy
ingdeci
sion

Fact
orsi
nfl
uenci
ngconsumerbehav
ior
I
nfl
uenceofcul
tur
alf
act
ors
Cul
tur
e
Sub-
Cul
tur
e
Soci
alCl
ass
I
nfl
uenceofSoci
alFact
ors
Ref
erencegr
oup
Fami
l
y
Rol
esandst
atus
I
nfl
uenceofPer
sonal
Fact
ors
Occupat
ional
Fact
ors
Li
fest
yle
Per
sonal
i
tyandSel
f-
concept
Psy
chol
ogi
cal
Fact
ors
Mot
ivat
ion
Per
cept
ion
Lear
ning
Condi
ti
onal
Lear
ning
Cogni
ti
veLear
ning
At
ti
tude
Bel
i
efs
ChapterI
V
ProductDev
elopment

DEFI
NITI
ONOFPRODUCT
Aproductisanyt
hingthatcanbeoffer
edtoamar kett
hatmightsat
isf
yawantorneed.
Wedesiretohaveallt
het hi
ngstosati
sfyourpr
esentandf
[Link],
ourdesi
re
i
sforallt
hosethingst
hatsatisf
yourwants.
All
theset
hingsareei
thermat
eri
algoodsorser
vices.I
fsomet
hingi
snotwant
edby
anybodyi
twil
lnotbecall
edagoodorservi
ce.
FI
VEI
NGREDI
ENTSTHATDEFI
NESAPRODUCT
Tangi
bleEl
ement–t
hephy
sical
andt
echni
cal
char
act
eri
sti
csoft
hepr
oduct
.
Pr
esumedBenef
it
s–t
heexpect
edexper
iencet
hatcust
omer
sseeki
ftheyuset
he
pr
oduct
.
Del
i
ver
yPr
ocesses–t
heser
viceconsi
der
ati
onandappl
i
cat
ionsoft
hepr
oduct
.
Br
andPromises–t
her
eput
ati
on,
assur
ances,
anduni
quenessoft
hepr
oductoft
he
manuf
actur
er.
Pr
oductCont
ext–t
her
elat
ionshi
poft
hepr
oductwi
thi
tsusei
ntheenv
ironment
.
Lay
ersofPr
oduct

Lay
ersofPr
oduct
Cor
eLay
er
Thecorel
ayeroft
hepr
oductexpl
ainst
her
easonsf
orwhi
cht
hecust
omeri
smaki
ngt
he
pur
chase.
Basi
cPr
oductLay
er
Theconsumerl
ooksatt
hebasi
cut
il
it
ies,
li
kephy
sical
feat
ures,
tangi
bleel
ement
soft
he
product
.

Expect
edPr
oductLay
er
I
sasetofat
tri
but
esandcondi
ti
onsbuy
ersnor
mal
l
yexpectoutoft
hepr
oduct
.
Augment
edPr
oductLay
er
Theaugmentedpartoftheproducti
stheassociat
edservi
cesandcues,
whi
chhel
pthe
productt
odeli
verbeyondtheexpect
ati
onlevelofthecust
omer.
Pot
ent
ial
Productl
ayer
Thelastlay
eroft
hepr
oductwher
eallt
hepo9ssi
bleaugment
ati
onsand
tr
ansformati
onst
heof
fermayunder
gointhefut
ure.
Cl
assi
fi
cat
ionofpr
oduct
s
CONSUMERPRODUCTS
Conv
eni
enceGoods:
thesear
egoodsf
requent
lypur
chasedbyconsumer
s.
St
apl
eGoods:
Consumerpur
chasesonr
egul
arbasi
s.
I
mpul
seGoods:
Consumerpur
chaseswi
thoutanypl
anni
ngorsear
chef
for
t
Emer
gencyGoods:
Consumerpur
chasesonur
gentneed.

Shoppi
ngGoods:Thesearegoodsthatt
hecustomerpur
chasesbyundergoinga
comparat
ivepr
ocessofsel
ect
ionandpurchaseonsuchbasesaspr
ice,psychol
ogi
cal
fi
tment
,suit
abi
li
ty,
sty
leandqual
it
y.
HomogenousShoppingGoods:ar
egoodsthataresimi
l
ari
nquant
it
ybutdi
ff
eri
npr
ice
l
evel
s,j
ust
if
yingapri
cingcompari
sonbyt
hebuy er.
HeterogeneousShoppingGoods:aregoods,
whi chdif
feri
npr
oductf
eatures,
and
ser
v i
cesandt hesedi
ff
erences,
aremorei
mportantthanpri
cef
oradeci
sion.

Special
tyGoods:t
hesear
egoodswithuniquechar
act
eri
sti
csorbr
andi
dent
if
icat
ionf
or
whichthebuyer
sneedtomakeaspecial
purchasi
ngef
fort
s.
UnsoughtGoods:Thesearegoodst
heconsumerdoesnotknowaboutordoesnot
nor
mallythi
nkofbuying.

Busi
nesspr
oduct
s
Mat
eri
alsandPar
ts:
Thesear
egoodst
hatent
ert
hemanuf
act
urer
’spr
oductcompl
etel
y.
Capital
Items:Thesear
elongl
ast
inggoodst
hatf
aci
l
itat
edev
elopi
ngormanagi
ng
fi
nishedproduct
.
Suppl
i
esandBusinessServi
ces:Theseareshort-
ter
m goodsandser
vicest
hatf
aci
l
itat
e
managingordev
elopi
ngthefi
nishedproductsuppli
es.
Pr
oductmi
xdeci
sions
ProductI
tem:i
tisaspeci
fi
cver
sionofapr
oductt
hathasasepar
atedesi
gnat
ioni
nthe
sell
er’
sli
st.
Pr
oductLi
nes:agr
oupofpr
oduct
sthatar
eclosel
yrel
atedeit
herbecauset
heysat
isf
ya
cl
assofneed,
orusedt
oget
her
,orsol
dtothesamecust omergr
oup.
Pr
oductMi
x:Pr
oductof
fer
edf
orsal
ebyt
hef
ir
m orbusi
nessuni
t.

ProductLengt
h:t
hisconceptr
efer
stot
henumber
sofpr
oduct
sinapar
ti
cul
arpr
oduct
l
ine.
Pr
oductWi
dth:
itr
efer
stot
henumberofpr
oductl
i
nest
hatcompanyof
fer
s.
Pr
oductDept
h:Dept
hist
hedi
ff
erentv
ari
eti
esofpr
oducti
nthepr
oductl
i
ne

Or
gani
zat
ionalGoal
sandpr
oductmi
x
MarketPenetr
ati
on:underwhi
chmarketshar
eisi
ncr
easedbyexpandi
ngsal
esof
pr
esentproductsi
nexisti
nguses.
MarketDevel
opment
:underwhi
chmar
ket
sar
eexpandedbycr
eat
ingnewusesof
pr
esentproduct
s
ProductDevel
opment:
wher
emar
ketshar
eisi
ncr
easebydev
elopi
ngnewpr
oduct
sto
sati
sfyexi
sti
ngneeds.
Diversi
fi
cat
ion:
wher
emar
keti
sex
pandedbydev
elopi
ngnewpr
oduct
stosat
isf
ynew
customerneeds.

Managi
ngBr
ands
TYPESOFBRANDS
Gener
icPr
oduct
s-Char
act
eri
zedbypl
ainl
abel
s,wi
thnoadv
ert
isi
ngandnobr
andname.
Manuf
act
urer
’sBr
ands-br
andownedbymanuf
act
urerorpr
oducer
.
Pr
ivat
eBr
ands-br
andnamespl
acedonpr
oduct
smar
ket
edbywhol
esal
ersandr
etai
l
ers.

Capt
iveBr
ands-ar
enat
ional
brandst
hatar
esol
dexcl
usi
vel
ybyar
etai
lchai
ns.
Fami
l
yBr
and-i
sabr
andnamet
hati
dent
if
iessev
eral
rel
atedpr
oduct
s.
I
ndiv
idualBr
and-br
andnamesareuni
quethati
denti
fyaspeci
fi
cof
fer
ingwi
thi
naf
ir
m’s
pr
oductli
neandthati
snotgr
oupedunderafamil
ybrandname.
Br
andi
ngdeci
sion
BRANDI
NGSTRATEGYDECI
SION
Br
andst
rat
egydeci
sioninv
olvesasetofdeci
sionst
oaddormai
ntai
nnumberofbr
and
el
ement
stoit
sproductport
fol
io.
Accept
abl
etosoci
alset
ti
ngs
Easyt
orecogni
ze
Ref
lectdi
rect
lyori
ndi
rect
lysomeaspectoft
hepr
oduct
.
Di
sti
nct
ive
Easyt
opr
onounceandr
emember
Canbel
egal
l
ypr
otect
ed

ELEMENTSOFBRANDI
NG
BRANDI
DENTI
TY–hel
psi
nbui
l
dingbr
andequi
ty.
BRANDI
MAGE–t
hecust
omerper
cei
vesaboutt
hebr
and.
BRANDPOSI
TION–corroborat
eswit
htheexpectedbrandi
[Link]
oest
abl
i
sh
communi
cat
ionobj
ect
ivesandplant
hecreat
iveexecuti
onst
rat
egy.
BRANDASSOCI
ATION–theext
entt
owhi
chabr
andcal
l
scer
tai
nat
tri
but
esofapr
oduct
cat
egor
ytot
hemindoft
hecust
omer.
BRANDLOYALTY–at
tract
ingnotonl
ybr
anduser
sbutal
sot
heconsi
stentuser
soft
he
br
and.

BRANDBUI
LDI
NGPROCESS
Fact
orsi
nBui
l
dingSuccessf
ulBr
ands
Qual
i
ty
Posi
ti
oni
ng
Reposi
ti
oni
ng
Communi
cat
ions
Fi
rst
-mov
erAdv
ant
age
Long-
ter
m Per
spect
ive
I
nter
nal
Mar
ket
ing
St
epsi
nBr
andBui
ldi
ngpr
ocess
Deci
dingwhatbr
and
Knowi
ngt
hecust
omer
Fi
ndi
ngt
heMar
ketPosi
ti
on
Cr
eat
etheRi
ghtI
mpr
essi
on

Pr
oductl
i
fecy
cle

St
agesi
npr
oductl
if
ecy
cle
I
ntr
oduct
ionSt
age–pr
oducti
sputont
hemar
ketatt
hest
ageofcommer
cial
i
zat
ion.
Gr
owthStage–Thepr oductbeginstomaker apidsal
esbecauseofthecumul at
ive
ef
fect
sofint
roduct
orypromotion,di
str
ibut
ion,andword-
of-mouthi
nfluence.
Mat
uri
tySt
age–sal
esgr
owt
hcont
inues.
Decl
i
neSt
age-sal
esst
artdecl
i
ning

NEW pr
oductdev
elopmentpr
ocess
1.
IdeaGener
ati
on–begi
nswi
thani
deaf
ort
hepr
oduct
.
[Link]
ruct
ureAnaly
sis–deli
neat
estheconsumer
s' per
cepti
onofthemar ketby
buil
dingamapout l
i
ningcri
ti
cal
consumerdimensi
ons,posit
ioni
ngexist
ingbr
andson
thepercept
ual.
mapandi ndi
cat
ingfav
orabl
enewproductopportuni
ti
es.
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ial
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ent
ial
ofanewpr
oductent
ryi
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s
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lect
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est
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TESTI
NGTHEPRODUCT
ConceptTest
ing–conduct
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otot
ypeTest
ing–put
ti
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otal
mar
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Packagi
ng
Packagi
ngisamar ket
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[Link]
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wantsexpl
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on,assur
ance,encouragement,confi
dence,
andpr
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i.
e.,
pat-
on-the-
back,al
li
ntegr
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catchinggetupont
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on.
FROM THESELLER’
SPOI
NTOFVI
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I
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NGI
SASALESTOOL.
I
I.I
TIDENTI
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I
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I
V.I
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GGESTADVERTI
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V.I
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NTOFPURCHASE.
VI
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MPULSEBUYI
NG.
VI
I.I
TESTABLI
SHESAGOODPRODUCTI
MAGE.
VI
II
.ITI
DENTI
FIESTHEPRODUCTWI
THADVERTI
SING.
I
[Link]
GNI
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Label
li
ng
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eexpect
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deaccur
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nfor
mat
ionandgui
dancet
o
customers.
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i
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andName.
i
i
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str
ibut
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i
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ght
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i
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rect
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v
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s.
v
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pesonf
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ri
ti
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gui
del
i
nes.
v
ii
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eofpacki
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pir
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i
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ail
pri
cei
ncl
udi
ngl
ocal
taxesand
[Link]
tpr
ici
ng,
e.g.
,costper100gr
ams.