16. Name and briefly discuss two situations in which it is best not to conduct marketing research When there is no high level of uncertainty. For example, when company understands the characteristics of the target customers and their likes and dislikes regarding existing products, under this circumstances, further research would be repetitive and waste money When the value of research information is not greater than the cost of generating the information. 15. Discuss the three major benefits of marketing research to managers Marketing research is the process of planning, collecting and analyzing data relevant to a marketing strategy Marketing research can help managers improve the quality of decision making. Managers can sharpen their decision making by using marketing research to explore the desirability of various marketing alternatives Trace the problems. Managers also use marketing research to find out why a plan backfired. Was the initial decision faulty? Did an unforeseen change in the external environment cause the plan to fail? How can the same mistake can be avoided in the future Help a manager focus on the paramount importance of keeping existing customers, aid them in better understanding the marketplace take advantage of the opportunities and alert them to marketplace trends. Long term relationship does not just happen, they are grounded in the delivery of service and value by the company
14. Name and briefly discuss four bases that firms use for positioning or repositioning Attribute. A product is associated with an attribute, product feature or customer benefit. For example, Kleenex offers an anti-viral tissue that contains substances to kill both viruses and germs in an effort to differentiate its product from competing tissues Price and quality. This positioning base may stress high price as a signal of quality or emphasize low price as an indication of value. For example, Denmark-based Lego Building Blocks uses the high-price strategy Competitor. Positioning against competitors is part of any positioning strategy. Emotion. Positioning using emotion focuses on how the product makes customers feel Repositioning involves changing consumers’ perceptions of a brand in relation to competing brands. Brands can be repositioned by their functional characteristics (rational repositioning), their symbolic characteristics (emotional repositioning) or both (complete repositioning) 13. Three strategies for selecting target markets. Name one advantage and one disadvantage of using the strategy Undifferentiated targeting: a mass-market philosophy, viewing the market as one big market with no individual segments. The firm uses one marketing mix for the entire market. A company adopts this strategy assumes that individual customers have similar need that can be met with a marketing mix; the first firm in the industry often applies it Advantage: potential savings on production/ marketing costs
Disadvantage: unimaginative product offerings
Concentrated targeting: a company selects a market niche/one market segment for targeting marketing efforts, thus the firm can concentrate on understanding the needs, motives and satisfactions of that segment’s members and on developing and maintaining a highly specialized marketing mix; small firms often adopts it to compete effectively with much larger companies Advantage: concentration of resources, can better meet the need s of narrowly defined segment; allow some small companies to better compete with large companies; strong positioning Disadvantage: segments too small or changing; large competitor may more effective market to niche segment
Multi segment targeting: a firm choose to serve two or more well-defined market segments and then develop a distinct marketing mix for each For example, Cover Girl market different lines to tween girls, teenage women, young adult women and older women Advantage: greater financial success; economic scales in production and marketing...
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