New or Just Improved?

CD’S

Airbags (cars)

iPhone

Nissan TitanInternet

Scanning EquipmentFor stores

Artificial HeartsFlat Screen TV

TargetKennel Inn

My Shirt

Marketing Research

Finding solutions to problems through carefully designed studies involving consumers.

Steps in Marketing Research

Types of Research Studies Surveys

Focus Groups

Observation

Experiment

Activity

Issue: A top athletic shoe manufacturer finds out that is it ranked in the top 5 for people over 25, but that it is not ranked in the top 5 for people under 25.

How can this manufacturer (using the 5 steps in Marketing Research) plan a way to improve its ranking among the younger people?

Marketing Mix – 4 P’s

• All parts are very important!

• One more so that others – product– If the products is not what you want – the other

parts do not matter.

• Must carefully plan each product to best meet customer needs.

Parts of a Product

• Basic product – simplest form• Product features – additions and improvements• Options – choices in features• Brand Name – unique identification• Packaging – protection and security• Guarantee/Warranty – build customer confidence

New Product Planning is…

• Costly– Several million dollars

• Time-Consuming– Several years

• Lots of people– Ideas, production, marketing, analyzing cost,

forecasting sales

Steps in New Product Planning are…

1. Idea Development2. Idea Screening3. Strategy Development4. Production and Financial Planning5. Limited Production and Test Marketing6. Full scale Production

Services

Activities that are consumed at the same time they are produced.

Products

• Tangible– Things you can see – Things you can touch

Services

• Intangible– No physical form

• Inseparable– Is used as it is being

produced

• Perishable– Cannot be stored for later

• Heterogeneous– Differences is the quality of

service