MARKETING STRATEGIES: PLANNING AND RESEARCH

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MARKETING STRATEGIESPLANNING AND RESEARCH

• January 23, 2001
• Northeast Center for Food Entrepreneurship

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My Role

• Processing Apple Industry
• Marketing Research
• New Products
• New Markets
• Strategic Analysis

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Overview

• Marketing Approach
• Marketing Research
• My Research
• Consumer Motivators
• Mature Markets

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Production Concept

• Consumers will favor products that are widely
  available and low in cost.
• Managers of production-oriented organizations
  concentrate on achieving high production
  efficiency and wide distribution coverage.

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Product Concept

• Consumers favor products that offer the most
  quality or performance.
• Managers focus energy on making good products and
  improving them.

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Selling Concept

• Consumers, if left alone, will ordinarily not buy
  enough of the organizations products. The
  organization must therefore undertake an
  aggressive selling and promotion effort.

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Marketing Concept

• There will always, one can assume, be need for
  some selling. But the aim of marketing is to
  make selling superfluous. The aim of marketing
  is to know and understand the customer so well
  that the product or service fits him and sells
  itself. Ideally, marketing should result in a
  customer who is ready to buy. All that should be
  needed then is to make the product or service
  available
• - Peter Drucker

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Marketing Concept

• The key to achieving organizational goals
  consists in determining the needs and wants of
  target markets and delivering the desired
  satisfactions more effectively and efficiently
  than competitors.

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Marketing Concept

• Find wants and fill them.
• Move what will sell instead of trying to sell
  what you can make.
• Love the customer, not the product.
• Have it your way.

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Marketing Concept

• Selling focuses on the needs of the seller
  marketing on the needs of the buyer. Selling is
  preoccupied with the sellers need to convert his
  product into cash marketing with the idea of
  satisfying the needs of the customer by means of
  the product and the whole cluster of things
  associated with creating, delivering, and finally
  consuming it.
• - Theodore Levitt

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Marketing Concept

• Market Focus
• Customer Orientation
• Coordinated Marketing
• Profitability

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Marketing Research

• Stage 1 Opportunity Identification
• Seek holes in market
• Customers source of information

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Marketing Research

• Stage 2Concept Screening
• Test the idea
• Would you buy this product?

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Marketing Research

• Stage 3 Marketing Strategy Development
• Define the marketing mix (4Ps)
• Product
• Price
• Place
• Promotion

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Marketing Research

• Stage 4 Product Development
• Create the physical product
• Test performance and consumer reactions

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Marketing Research

• Stage 5 Market Testing
• Last check
• Evaluate advertising, awareness, and usage (AAU)

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Marketing Research

• Stage 6 Product Introduction
• Test distribution

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Marketing Research

• Tradeoff
• Risk of product failure
• vs.
• Cost of Market Research
• Costs include not only money, but also time
• Goal Learn how to delight the customer by
  studying their needs and behaviors

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Qualitative vs. Quantitative

• Qualitative
• Concept testing
• Fast input needed
• Limited budget
• Client observation
• Probe behavior deeply

• Quantitative
• Snapshot of market
• Representative data
• Participants are geographically dispersed or
  difficult to reach
• Large amount of information needed from each
  participant

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Marketing Research Consultants

• Referrals
• Client list/references
• Clearly define research goals
• Dont overqualify sample
• Expensive

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Marketing Research Consultants Costs

• Focus groups (2) 3,000 - 10,000
• Telephone interview 7,000-20,000
• Mall intercept (300) 16,000 - 25,000
• Product placement (50) 9,000 - 12,000

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Inexpensive Marketing Research

• Customer feedback
• Interviews
• Surveys (300)
• Comment cards
• Competitor activity
• Scan shelves
• Advertisements
• Other categories

• Publicly available data
• Cornell Libraries
• Internet
• Trade publications
• US Census
• Trade associations
• Chambers of Commerce

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Resources Books

• AMA Complete Guide to Marketing Research for
  Small Business by Holly Edmunds (1996)
• Handbook for Focus Group Research by Thomas
  Greenbaum (1993)
• Practical Marketing Research by Jeffrey Pope
  (1981)

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Resources Internet Sites

• American Demographics www.americandemographics.co
  m
• USDA www.usda.gov (see NASS and ERS)
• US Census www.census.gov
• Trade Associations example www.bestapples.com
• www.beverageworld.com
• www.foodonline.com
• www.beverageonline.com

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Resources Cornell Libraries

• Kalorama (Networked Resource)
• Choices II

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My Research Story

• Secondary research
• Interviews
• Strategic analysis
• Research goals
• Research plan
• New Products Workshop (handout)

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My Research Story (cont.)
Primary research

• Quantitative
• Telephone survey
• School foodservice mail survey
• Two packaging design surveys
• Qualitative
• Focus groups
• Consumers
• Foodservice
• Foodservice telephone interviews

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My Research Story (cont.)

• Surveys to follow-up on focus groups
• Product design
• Promotion
• Ethnic marketing
• Secondary research
• Eco-labels
• Ethnic markets

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Mature Markets

• Slow/no growth
• Competition intensifies
• Price competition
• Advertising and promotion increases
• Product improvements and line extensions
• Private label growth
• Profit erosion

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Mature Markets

• Structure Dominant firms (high volume/low cost)
  and Niche firms (higher margin)
• Niche firms must differentiate to be successful
• Service
• Focus
• Quality
• Innovation
• Biggest reason for market failure me-too
  products (6.7 innovative in 1999)

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Conclusion

• Mistakes
• lack of marketing approach
• failure to use research
• failure to define market research goals
• lack of innovation
• Marketing research
• learn how to delight your customer
• tradeoffs

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Resource Smart Marketing

• www.cals.cornell.edu/dept/
• arme/hortmgt/pubs/
• Click on Smart Marketing Series