Lecture Marketing research (12th edition) - Chapter 23: Marketing-mix measures

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Marketing Research
Aaker, Kumar, Leone and Day 
Twelfth Edition
Instructor’s Presentation Slides


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Chapter Twenty­Three
Marketing-Mix Measures

Marketing Research 12th Edition


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Phases in New Product Research
Concept Generation
Need Identification
Concept Identification

Concept Evaluation and Development

Product Evaluation and Development
Testing the Marketing Program

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Concept Generation
Need Identification
Perceptual maps
Social and environmental trends
Benefit structure analysis
Product users
Focus-group interviews
Lead user analysis

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Concept Generation (Contd.)
Concept Identification
Are there any major flaws in the concept?
What consumer segments might be attracted to it?
Is there enough interest to warrant developing it further?
How might it be altered or developed further?
How are the concepts exposed?
To whom are the concepts exposed?
To what are they compared?
What questions are asked?

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Product Evaluation And Development
• Use Testing
▫ Virtual Product Testing
▫ Blind use test

• Predicting Trial Purchase
• Pre­test Marketing

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Pretest Marketing Example
The ASSESSOR Laboratory Test Market Research Design and Measurement

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Test Marketing
• Sell­in test markets
• Controlled Distribution Scanner Markets (CDSM)
Selecting the test cities 
▫ Representativeness
▫ Data availability
▫ Media isolation and costs

▫ Product flow

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Really New Products
• Create or expand a new category, thereby making cross­category 
competition the key (e.g., fruit teas versus soft drinks)
• Are new to customers, for whom substantial learning is often required 
(i.e., what it can be used for, what it competes with, why it is useful)
• Raise broad issues such as appropriate channels of distribution and 
organizational responsibility
• Create (sometimes) a need for infrastructure, software, and add­ons

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Pricing Research
• Gabor and Grainger method
• Multi­brand choice method
• Research for Profit­oriented Pricing 
• Research for Share­oriented Pricing

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Pricing Research (Contd.)
• The pricing pattern that is adopted for increasing market share is to:
▫ Offer a lower price (even below cost) when entering the market.
▫ Hold that price constant until unit costs produce a desired percentage 
markup.
▫ Reduce price as costs fall to maintain markup at the same desired 
percentage of costs.

• The types of information required for this pricing method are
▫ The nature of the experience curve.
▫ Breakeven points.
▫ Cost of units sold to additional market segments.
▫ Competitor costs.
▫ Forecast of the ‘‘decline’’ stage of the product life cycle.
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Distribution Research
Warehouse and Retail Location Research
• Center­of­gravity Simulation
• Computerized Simulation Models
• Catchment Area Analysis
• Outlet Location Research

Center-of-gravity warehouse
location to serve five retail

stores.

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Distribution Research (Contd.)
Number and Location of Sales Representatives
• Sales effort approach
• Statistical analysis of sales data
• Field experiments
• Computerized models of sales force size and allocation by market 
and by product line

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Advertising Research
Criteria
• Recognition
• Recall
▫ Day­After Recall (DAR) measure – on­air test

• Persuasion
▫ Forced exposure, brand preference change test
▫ Clutter/awareness score
▫ Attitude­shift measure

• Impact on purchase behavior
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Advertising Research (Contd.)
• Sample diagnostic questions: 
▫Comprehension of message or slogan
▫Communication of secondary copy ideas
▫Evaluation of demonstrations, spokesperson, message
▫Perception of brand uniqueness or brand differentiation
▫Irritating or confusing elements
▫Viewer involvement
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Advertising Research (Contd.)
Purchase Behavior
• Coupon stimulated purchasing
• Split­cable tests

Copy Test Validity
• Qualitative Research
• Audience Impressions of the Ad
• Adjective Checklist
• Eye Movement

• Physiological Measurement
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Advertising Research (Contd.)
Media Research
• Measuring print vehicle audiences
▫Recent­reading method
▫Reading­habit method

• Measuring broadcast vehicles audiences

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Sales Promotion Research
Promotional Tools
• Price Discounts
• Features
• Displays
• Coupons / Rebates
• Sweepstakes
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Sales Promotion Research (Contd.)
Promotional Strategy
• Hi­lo
• Every Day Low Price (EDLP)

A schematic framework of the major types of sales promotion.

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Sales Promotion Research (Contd.)
Specific Sales Promotional
Tools

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TQM – Total Quality Measurement
• TQM is a process of managing complex changes in the 
organization with the aim of improving quality
• Is a business philosophy that was used by the Japanese to 
gain competitive advantage. 
▫Now being discovered and used by American 
organizations. 
TQM can be defined as a systematic effort at continuous quality 

improvement of all processes, products, services, and human 
resources throughout the organization, undertaken with an objective 
of improving customer satisfaction.
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TQM – Total Quality Measurement (Contd.)

The process of managing complex change and the effects when one of the links 
in the chain is missing are depicted in the figure above
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TQM – Total Quality Measurement (Contd.)
• Characteristics of an organization that has implemented 
TQM are:
●Continuous training and education of everyone in the 
organization
●Establishment of quantifiable measures of progress
●Formation of cross functional teams that are 
empowered and motivated
●Use of formal tools, techniques to maintain quality

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Total Quality Management (Contd.)
Information Requirements
• Measurement must be specific
• Track the correct measure
• Measure the outputs of the highest value to the customer
• Measure process and results
• Anticipate future customer and process requirements
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Total Quality Management (Contd.)
Analysis of Data in a TQM Company
• Who performs the analysis?
• What analytical techniques are used?
• Which data are analyzed and at what level of detail?
• How are data aggregated, and how are relations between data groups 
cross­referenced?
• How does the company improve its analytical capabilities?
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