Chapter+2

Chapter 2 1.1 Which step in the 11 step process is the most important step? Why?

- The most important step in the Market Research process is step #2 Define a Problem. Before you start research you must define what the key issues are and what you hope to solve. If there is no problem there is no need to do research or find a solution. If there is a problem and it is incorrectly defined all the work that is put forth after this step is wasted effort.

2.3 Write at least three different definitions that indicate how a researcher might form a question in a survey to assess the degree of television channel loyalty. One example is "Channel loyalty is determined by a stated preference to view a given channel for a certain type of entertainment."


 * 1)** Channel loyalty is viewed by how often a show is shown on a specific channel.
 * 2)** Channel loyalty is determined by how much revenue a TV show can produce for that channel
 * 3)** Channel loyalty is determined by how many people enjoy watching a TV show on that specific channel.

4.2 Sony is contemplating expanding its line of flat-screen televisions with 3" or 6" screen colour portable units. It thinks there are three situations in which this line would be purchased: (1) as a gift, (2) as a set to be used by children in their own rooms, and (3) for use at sporting events. How might the research objective be stated if Sony wished to know what consumers' preferences are with respect to these three possible uses?

Research objectives state what the researcher must do in order to carry out the research and solve the manager's problem. The purpose of a research objective is essentially to gather specific bits of knowledge that need to be gathered in order to close the information gaps between the problem. - **//Determine if customers and target market are willing and able to buy a T.V. as a gift.//** Some customers may find that a flat screen T.V may be a bit excessive or expensive for a gift to someone. Accessing what percentage of customers typically buy a flat screen T.V and/or the percentage of customers see it as acceptable as a gift will be beneficial to Sony because it will roughly show the profitability of the market and a rough estimate of the target market size. Different consumers have different ideas and perceptions in regards to gifts. For example, some consumers may want to purchase a gift that is sentimental as opposed to commercial and some consumers may have a strict price range as to how much the gift must cost. This information will help Sony in determining what the consumer's preferences are when purchasing a gift and it gives them the option to alter the product in any ways necessary. E.g. price, style, aesthetics etc. If Sony is up to date on their competition's offerings and products, they can use that information to access what key components and features their target market gravitates towards. Sony can then use this info to their advantage e.g. offer a lower price, extended warranties, quality service etc.
 * 1) As a gift **
 * //- Determine what characteristics consumers look for when purchasing a gift for someone //**
 * //- Establish Competitive Offerings //**

The word "children" is a very broad term and can mean any number of different ages. Different ages have different preferences, styles, motives etc. By determining the age of the children in their target market, Sony can establish their marketing mix for that segment and cater the 4 ps to their target market to suit their needs as efficiently and effectively as possible. In today's society a great emphasis is being placed on physically activity and healthy living. In this instance, the parents have a very strong influence in the buying process and are ultimately the deciders of the purchase decision. Televisions are very commonly associated with an unhealthy lifestyle and as a result, many parents do not want their kids to have a T.V in their bedroom because it can possibly prevent them from getting outdoors as well as distract them from their school work and other priorities. Sony will benefit from this information because it will also determine if marketing a T.V for children to have in their bedroom is a logical and smart idea.
 * 2) As a set to be used by children in their bedroom **
 * //- Determine the age of the children //**
 * //- Determine if the parents of these children will allow their kids to have a T.V in their bedroom //**

Sport hosts are the buyers in this situation e.g. John Labatt Center, Molson Amphitheatre, Madison Square Garden etc. By determining what qualities and product characteristics these hosts look for when searching for a T.V, Sony can use this information to implement the necessary product attributes and qualities into their new line of products to satisfy the wants and needs of their target market as effectively as possible. Different types of sports use T.V's for different purposes. Knowing this information will also determine what the consumer preferences are in regards to the different type of sports events. Accessing and determining which sports most commonly use T.V.'s for sporting events will establish the largest and smallest market segments for this product line. Sony can then implement all of the preferences and qualities into their new product line to satisfy the wants and needs to their relevant target market. For example, golf may use T.Vs a lot less frequently than baseball.
 * 3) For Use at Sporting Events **
 * //<span style="font-family: 'Times New Roman','serif'; font-size: 16px;">- Determine what qualities the hosts of different sporting events look for when looking for a flat screen T.V to project the sport. //**
 * //<span style="font-family: 'Times New Roman','serif'; font-size: 16px;">- Determine which sports most frequently use a flat screen T.V. for sporting events. //**

4.3 The local Lexus dealer thinks that the company’s four-door sedan with a list price in excess of $80,000 should appeal to BMW 500 Series owners who are thinking about buying a new automobile. He is considering a direct-mail campaign with personalized packages to be sent to owners whose BMW 500 Series are over two years old. Each package would contain a professional video of all the Lexus sedan's features and end with an invitation to visit the Lexus dealership. This tactic has never been tried in this market. State the marketing problem and indicate what research objectives would help the Lexus dealer understand the possible reactions of BMW 500 Series owners to this campaign.

When defining the problem for a marketing research effort, it must be defined correctly, otherwise all else is wasted effort.

Problem:
The problem in this case is very specific, we are simply trying to determine if our direct mail campaign will make BMW 500 series owners who are looking to buy a new car want to purchase a Lexus sedan.
 * //Will our direct-mail campaign be effective in persuading BMW 500 series owners in purchasing a Lexus four door sedan?//**

Research Objectives:
One of the possible reactions of this campaign is that consumers who recieve the mail may not be in the market for a new car. Ultimatley, two years is not a very long life span for a car and the chances are, most consumers may not be looking to purchase a car after only two years. Lexus should establish what a typical life span is for a BMW 500 series in the eyes of consumers, that way they can more effecently determine who their target audience is and send out their mail campaign to a more relevant number of consumers.
 * //Determine after how long BMW owners are looking to buy a new car//**

Another common reaction of any mail campaign is that consumers will simply just through out the mail because they assume it will be "junk mail". If this is the case, a great deal of money, effort and time is lost. Lexus needs to determine what mediums their target market typically use and are exposed to. For example, their target market may watch a lot of television and read a fair amount of automobile related magazines. As a result, Lexus should re-consider using mail as a medium and perhaps focus more of an advertising effort towards television and magazine ads, as their target market is exposed to those mediums more frequently.
 * //Determine the most common types of advertising mediums relevant for the potential target market//**

A typical reaction for this campaign could possibly be that, the consumer does not like any of the features that the Lexus offers. If Lexus can establish what features their target market look for in a car, they can then determine if the BMW 500 series owners are likely to gravitate towards the Lexus sedan. For example, BMW owners may find $80,000 to be a bit on the expensive side and as a result, will dismiss the Lexus sedan. Lexus should also determine if the consumer was satisfied with their previous BMW and if not, how come? This information will be useful because if Lexus is aware of what their consumers did not like about their BMW, they can again determine if the four door sedan is right for the consumer. For example, if a BMW owner did not like the fact that his car was very high maintenance, and it was difficult to get into due to only have two doors, Lexus can assume from that information that the consumer will be fond of the four door sedan.
 * //Establish w//hat features BMW 500 series owners look for in a veichle**

Finally, another reaction consumers might have is, they may have found a better offer from other luxury car companies in the area such as Cadillac, Lincoln, Infiniti, or Acura. They may even receive a mail ad from another luxury car dealer at the same time. Lexus should determine their competitor's current state in the industry and establish if BMW owners will find the competition's models more appealing. This will more accuatly be able to determine the effectivness of this mail campaign. For example, a consumer may recieve in the mail an ad for the Inifniti G37 and may find it more appealing than the Lexus due to price, size, colour, asthetics or whatever the case may be.
 * //Establish Competitive Offerings//**