Principles of Marketing
The Consumer & Market Research

The Consumer and Market Research

 

Course Outcomes

 

Competencies

 

Topics

 

Introductory Video

A look at how neurobiology is helping marketers understand the buying behavior of consumers.

Inside the brain of a Shopper (NBC Report). Interview with Martin Lindstrom, author of "Buyology"

"Inside the Brain of a Sahopper.flv," YouTube Video, 6:13, posted by "Lorena Bravo," June 7, 2010, https://www.youtube.com/watch?v=th8wWy1I2p4

 

 

SoftChalk issue

 

 

The Many Goals of Persuasion

To convince consumers that their products possess advantages over similar brands, companies focus on differentiating their brands using various promotional tacticsAdvertisingpersonal sellingsales promotion, and public relations activities are commonly used to persuade consumers to make a purchase. Brands constantly promote product features and benefits to convince consumers that their products either address the consumer's needs or solve a particular problem. By promoting their brand in creative and compelling ways, companies hope to create positive esteem and loyalty toward the brand to fuel repeat purchases and customer retention.

 T-Mobile Promotion: Companies such as T-Mobile use special promotions to drive repeat business and brand loyalty.

Product Differentiation

When running promotional programs, companies seek to clearly and effectively market their product's differential factor. Differentiation sets similar products apart from one another, and creates value for consumers evaluating different brands. Differentiating products allows companies to influence consumers' perception of their brand in an increasingly crowded marketplace. If the product's differential factor is compelling enough, companies hope to convince consumers to continually choose their products over competitors.

Companies employ a myriad of techniques to shape consumers' perception of the physical products displayed in stores or on the street. Common persuasive techniques include:

Colors and imagery can serve as powerful visuals for quickly conveying a product's ability to successfully meet consumer needs. For instance, colors such as yellow and orange provoke excitement while blue and green establish trust, cleanliness, and calmness. As more consumers spend their time surfing the Internet on computers and mobile devices, similar strategies are used in online promotions such as banner ads and email communications. Digital communications, like traditional communications, rely on captivating and clever messaging to prompt open rates and click-throughs to advertisers' landing pages. With social media, companies have the ability to advertise their product's differential qualities to any person in the world, at any given instant.

Brand Awareness and Loyalty

The primary objective of marketers and advertisers is to present ideas in a manner that is so convincing that consumers will not just purchase a product or service once, but will do so repeatedly over time. Companies must thus remind customers of their product's unique benefits using messaging that resonates with consumer needs and values. Branding, product marketing, and loyalty marketing all form part of the customer proposition – the subjective assessment by the customer on whether to purchase a brand based on the value they receive from each of these marketing elements.

As companies compete for consumer attention across print, television, radio, and the Internet, promotional tools such as reward and discount programs are repeatedly offered to loyal customers in return for their continued business. The airline industry's frequent flyer program is a successful example of loyalty marketing. These programs rely on the earned loyalty of current customers to attract new loyalty from future customers. However, exclusive incentive programs must strike a balance between increasing benefits for new customers over any existing loyalty plan they are currently in and keeping existing customers from moving to new plans.

Consumer Education

Companies look to be brand leaders in their industry by providing consumers with relevant information on product pricing, functionality, and availability. Providing consumers and other brand stakeholders with the skills, concepts, and understanding required to achieve maximum satisfaction and utilization of the product can transform consumer needs into perceived wants. Even after a purchase is made, companies devote sales and customer service teams to supporting customers with training and other educational programs. This idea is especially true for highly technical products such as computer software, which regularly release upgrades and new features.

Reviews of products in trade publications and on websites can also help promote or downgrade products. Consumers may include review and rating websites such as yelp.com or consumer reports as part of their education on product features and benefits. These reviews also serve as indirect public relations for the brand, potentially enhancing and strengthening brand value. Outside consumer opinions and expert insight fall under the arsenal of promotional tools that can persuade consumers during the buying decision process.

 

Source: Boundless. "Customer Wants and Needs." Boundless Marketing. Boundless, 26 May. 2016. Retrieved 13 Jun. 2016 from https://www.boundless.com/marketing/textbooks/boundless-marketing-textbook/introduction-to-marketing-1/introduction-to-marketing-18/customer-wants-and-needs-107-4453/

Activity

  Show quiz question

Value: 5

A food manufacturer produces boxed baking goods. However, it shares shelf space with several competitors that offer the same products at similar prices and quality. All of the following are persuasive techniques the manufacturer can use to differentiate its brand on store shelves EXCEPT

 
 

 

 

 

 

 

 

 

 

The Mind of the Consumer

 

Consumer

 

Please watch the video "Why We Buy Video"

Featuring Mimoco & Innerscope, this clip goes behind-the-scenes at the Innerscope Medialab to look at applying biometrics to market research and some real world examples. Watch the following video and be prepared to respond to some questions based on what you learned about the mind of the consumer.

"Why We Buy" segment from Chronicle HD(04/17/11)," YouTube Video, 4:31, posted by "InnerscopeResearch," August 8, 2012, https://www.youtube.com/watch?v=2wdaf3Xf_80

 

Activity

Please complete the following activity.

 

  Show quiz group

 

The Impact of Color on Consumer Behavior

The role of color in consumer decisions is one of the most intriguing, and controversial, areas of marketing. Although there is much room for debate and continued research on this topic, many studies in the field of psychology suggest that certain colors are associated with certain moods and feelings. Whether such responses affect consumer decisions is debatable, but there is enough research to suggest it is an area that marketers should explore.

Video

Please watch the following video on The impact of color on consumer behavior

"Virginia Tech: The Impact of Color on Consumer Behavior," YouTube Video, 2:12, posted by "Virginia Tech," April 22, 2013, https://www.youtube.com/watch?v=nUxDqIeiXt0

 

Activity

Please complete the following activity.

 

 Show activity 

 

Where is the Consumer?: The Fragmented Media Environment and the Future of Marketing

The consumer

Now more than ever the question "where is the consumer" is a difficult one to answer. A few years ago, perhaps ten or so, it was still safe to say that consumers could be reached via television, radio, and print. That is no longer the case. Although television remains a powerful means of reaching consumers, new technologies such as mobile phones, tablets, and social media tools have proven to be viable options for marketers. This section will introduce some new challenges and opportunities facing today's marketers.

 

Video

Please watch the following video Consumer Behaviors: Catherine Roe.

"Consumer Behaviors: Catherine Roe at TEDxUChicago 2012," YouTube Video, 17:15, posted by "TEDx Talks," May 25, 2012, https://www.youtube.com/watch?v=2N6spwyBuvE

 

As the Head of Consumer Packaged Goods (CPG) at Google, Catherine Roe helps drive online advertising initiatives for top Midwest CPG clients. With her expertise in marketing, shopping behavior, and sales, Catherine helps Google to leverage digital media in connecting CPG clients to their target consumers. She contributes to the Shopper Revolution by focusing on building creative sales solutions and developing highly productive teams.

 

Activity

Please complete the following activity.

 

  Show quiz group

 

 

Consumer Market Research

In the field of marketing, consumer market research can be generally defined as the systematic collection and evaluation of data regarding customers' preferences for actual and potential products and services. It is also important to note that consumer market research is not directly synonymous with marketing research. Marketing research is actually comprised of both consumer and business-to-business research and examines all aspects of a business environment.

The ultimate goal of consumer research is to serve as the voice of the consumer. This type of research focuses on understanding the consumer as a person by focusing on exploring his or her attitudes, needs, motivations, and behavior as it relates to a product or service . More broadly, consumer research helps provide a company with relevant, reliable, valid, and current information about their target buyer.

 

Focus Groups

Soldiers and family members participated in USAG- RC-sponsored focus groups

Consumer market research can serve a variety of purposes including:

For instance, a consumer goods company that wants to develop a new cheese product for the growing Hispanic demographic can use market research. If the consumer market research demonstrates that consumers do in fact have an unsatisfied need for a cheese that could replace the product they are currently consuming in Latin America, the company could go ahead and develop the cheese product.

 

Source: Boundless. "Goals of Consumer Market Research." Boundless Marketing. Boundless, 26 May. 2016. Retrieved 13 Jun. 2016 from https://www.boundless.com/marketing/textbooks/boundless-marketing-textbook/consumer-marketing-4/introduction-to-consumers-33/goals-of-consumer-market-research-174-7991/

 

Activity

  Show quiz question

Value: 5

Marketing research can best be described as

 
 

 

 

 

 

 

 

Research Using Digital Media

The field of Internet research is relatively new and evolving. Online research methods enable researchers to use increasingly sophisticated digital tools to collect data via the Internet. Thus, the practice is also referred to as Internet research, Internet science, or iScience. Many of these online research methods are related to existing research methodologies, but re-invent and re-think them within the scope of digital technologies, rules and media associated with the internet. The growth and rapid adoption of social media technologies has introduced a new level of complexity and opportunity for digital researchers. Inclusion of social media research can provide particularly unique insights into consumer and societal segments.

 Digg Website: Social bookmarking sites such as Digg are used to gather research on different target markets.

Application of Digital Media in Research

Digital media including images, videos and audio can prove valuable sources for Internet researchers. Specific types of research methods that incorporate digital media include:

Advantages of Digital Research

Market research is increasingly making use of developments in Web 2.0 technologies and online communities. Social media analytics allow brands to efficiently collect and analyze qualitative research on user interaction with images, video, podcasts and other digital media. Although the open and collaborative nature of content communities offer opportunities for research, companies also utilize private online communities focused on individual brands or customer segments. These private communities can engage customer groups or target consumers who might be difficult to reach.

The field of Internet research is relatively new and evolving. Online research methods enable researchers to use increasingly sophisticated digital tools to collect data via the Internet. Thus, the practice is also referred to as Internet research, Internet science, or iScience. Many of these online research methods are related to existing research methodologies, but re-invent and re-think them within the scope of digital technologies, rules and media associated with the internet. The growth and rapid adoption of social media technologies has introduced a new level of complexity and opportunity for digital researchers. Inclusion of social media research can provide particularly unique insights into consumer and societal segments.

Application of Digital Media in Research

Digital media including images, videos and audio can prove valuable sources for Internet researchers. Specific types of research methods that incorporate digital media include:

Advantages of Digital Research

Market research is increasingly making use of developments in Web 2.0 technologies and online communities. Social media analytics allow brands to efficiently collect and analyze qualitative research on user interaction with images, video, podcasts and other digital media. Although the open and collaborative nature of content communities offer opportunities for research, companies also utilize private online communities focused on individual brands or customer segments. These private communities can engage customer groups or target consumers who might be difficult to reach using traditional offline tactics. Companies are able to collect and aggregate this consumer information to define segments of homogeneous consumers. To supply targeted and relevant product offerings, the data is further segmented using in-house or third-party databases; personalization techniques; or opt-ins from consumers themselves.

Brands also benefit from online communities by having them on-hand to respond to questions, test hypotheses and observe trials in real-time. Digital technologies can quickly adapt to an organization's research needs, while keeping pace with internal development processes. Social media and digital platforms also produce a consumer feedback loop where brands can continually check new ideas, such as product development, from inception to launch.

 

Source: Boundless (2016). Boundless Marketing. Retrieved from https://www.boundless.com/marketing/textbooks/boundless-marketing-textbook/social-media-marketing-15/marketing-research-and-consumer-created-content-100/researching-using-digital-media-493-4039/

Activity

  Show quiz question

Value: 5

Brands can employ which of the following methods to conduct online research?

 
 
 
 

 

 

 

 

 

Discussion Board

What ethical dilemmas, if any, do you see in marketers applying neuromarketing techniques to the marketing or products? Please post your answer.

 

 

 

 

Closing

This module covered the dynamic methods of consumer marketing and marketing research. Neuromarketing is an attempt to get in the mind of the consumer by measuring their physical responses to marketing messages and products. This fascinating field is helping marketers fine tune their ads, their designs, and their products. Similarly, technology in the form of social media has dramatically changed the media landscape and with it the way consumers obtain information and entertainment. These changes are pushing marketers to be nimble and creative in how they manage and distribute their message.

 

This workforce solution was funded by a grant awarded by the U.S. Department of Labor's Employment and Training Administration. The solution was created by the grantee and does not necessarily reflect the official position of the U.S. Department of labor. The Department of Labor makes no guarantees, warranties, or assurances of any kind, express or implied, with respect to such information, including any information on linked sites and including, but not limited to, accuracy of the information or its completeness, timeliness, usefulness, adequacy, continued availability, or ownership.

Agreement # TC-23812-12-60-A-48/CFDA-17.282