Key Marketing Metrics to Facilitate Marketing Strategy.

The Strengths and Weaknesses of any existing business is through the eyes of the Customers. To find out what the Competitors are doing can all be realized when Businesses are able to monitor marketing metrics. If something is important to a Company, people are going to want to know how the Company does it and therefore it needs to be measured (Iacobucci, 2013)

In the conduction of these measures, it is very crucial for a Business to conduct an assessment phase and the strategic planning phase. Below are some of the measures that a Company may conduct over the Company goals.

  1. The Company needs to keep a close watch on the company’s profitability and must be able to measure this.
  2. The Company must also measure indicators of customer and employee satisfaction
  3. There has also been measures made on the Company’s dashboard. This may include other operating costs such as spending made on fuel and many other multiple dimensions in which can be measured.

Such measures can confirm whether a Company is performing and whether it has advantages over its competitors whilst other measure may confirm existing problems that the Company may strive to improve.

A single dashboard below gives a Company an indication of whether it is performing or otherwise.

http://key marketing Metrics to Facilitate Marketing Strategy.docx

The dashboard gives that a Company’s sales, market share are good. Profit margins is at a 50/50 position, not good nor bad, whilst Employee Satisfaction and Customer Satisfaction are in a very bad position for the Company. Moreover, the dashboard measures gives that the particular brand operates in a Monopoly like conditions, Sales and shares are very strong as the Customers does not have many alternatives, this however creates employee and customer in satisfaction. The Company’s low profit margins indicates that the Company is not managing its cost very efficiently. (Iacobucci et al)

Ambler (2008) discusses what marketing metrics can do for any organization:

  • Brands’ activities in the market; for example, new product launches, price increases, changes in pack size, and so on
    • How the market is reacting to these changes; for example, how buyers are buying, at what prices, and so on
    • How brands’ market-based assets are holding up

Marketing metrics gives a baseline, which checks and balances and that Marketing performance, should be assessed using a combination of short-term cash flow, or profit, compared with a valid benchmark, e.g., a plan, and a proxy for the change in future cash expectations due to the marketing activities for a given period.

The Financial Measurement of Marketing Performance

Managers would like a single number, representing profit in some way, for each alternative ways of meeting customer needs. The plan selected would be the one with the highest number would be selected. They would like to assess performance by comparing the actual resulting number with the one predicted in the plan.  We call this single number a “silver metric”, and it is the common goal of a number of methodologies such as ROI or DCF.

ROI

Return on investment (ROI) is used to compare capital projects where investments are made once and the returns flow during the following years. ROI is the net return divided by the investment or, more correctly, the incremental profit as a ratio of the incremental expenditure.

  • ROI has become a fashionable term for marketing productivity and used to describe any type of profit arising from marketing activities.
  • ROI gives Incremental sales revenue
  • Ratio of cost to revenue
  • Cost per sale generated Changes of financial value of sales generated
  • Cost of new customer (sic)
  • Cost of old customer retention

DCF

Discounted Cash Flow is the basic methodology for a number of apparently different techniques: net present value (NPV), brand valuation (Perrier 1997 cited in Amber 2002), customer lifetime value (CLV, Venkatesan and Kumar 2004; Gupta and Lehmann 2005), customer equity (Rust, Lemon, and Zeithaml 2004) and, usually, brand valuation (Ambler et al.2002).

This techniques can be used to compare alternative investments and also for regulating utility prices. There are few issues with the  usage of DCF techniques for performance evaluation due to time, planning and comparison of alternative future scenarios; however, whatever the tools deployed, the performance of any organisation depends largely on its intended usage and positive outcome received.

Baker, (2016) in AdNews states that, Facebook admits to over – inflating key video view metrics. There was an error being reported in the video view metrics where it concluded that the average time watching video has been inflated by 80%. The Wall Street Journal has pointed out that publishers are impacted by this error as they were given incorrect information on how much time users are spending with their video content. Facebook confirmed that they had discovered an error on how they calculate their video metrics.

There may be flaws in measuring Metrics for any Businesses, hence this is something businesses must carefully and thoroughly conduct so that customers are not affected. Mintz (2013) finally states for managers to employ both marketing and financial metrics to assess the performance of the marketing mix activity. There may be financial uncertainty encountered, however it is expected that the greater the number of marketing versus metrics employed, better decisions are perceived for better performances.

By Jacinta Tupuola-Maua

212369336

Reference List:

Ambler, T, Roberts, JH (2008). Assessing marketing performance: Don’t settle for a silver metric

Griniute, Ilona, (2012) Measurement of Marketing Communications Performance:

Iacobucci, D. (2013) Marketing Management, MM4, Student Edition.

Mintz, O, Currim, IS (2013). What drives managerial use of marketing and financial metrics and does metric use affect performance of marketing mix activities?

Measurement%20of%20Marketing%20Communications%20Performance.docx#ROI

A system of marketing metrics

http://www.adnews.com.au/news/facebook-admits-to-over-inflating

Advertisements

Just Dell things!

Dell

In a speech made in South Africa on the year 1890 Mahatma Gandhi quoted customers are the people who rule the market, they are the purpose of any business and that they are doing the business a favor by letting them serve the customers.

Customers are always important to run a business, unless and until we reach their expectation we cannot run our business successfully. In order know the customer requirements and to reach their expectation we have t

o collect data from them, which could be defined as market research. We conduct market research to understand the consumer’s preferences and to identify the options which increases the sales. Market research is essential to launch or expand a firm, it reduces the risks in forecasting the business.

It is always better to have a set of specific goal before we start market researching so that we can concentrate on the task in hand. After setting these goal to reach these set of objectives, A strategy and a technique should be developed through which we can collect some potential information to reach our goal among the all other competitors. This research can be a primary research or a secondary research. In primary research we collect data from our potential customers and in secondary we use demographic data to creating our own plan of action. In order to conduct this research we have focus our concentration on some of the important factors like who are our customers, what they really expect from us, is there an adequate demand for our products and also the competitors and their output. This also includes their expenditure on research & development, their level of innovation and their marketing stratagems. If the market research team can concentrate on these, it makes the job easier for a company to take a calculated decision on launching or expanding their products.

They improved the customer experience by adding the self customization option at the end cart

They improved the customer experience by adding the self customization option at the end cart

In a world where almost every business is customer centric today, Dell wanted to improve the customer satisfaction. Especially their own customers and other potential buyers. Dell started its reign with customizing the computer components. Michael Dell owner of the Dell Inc. started his business with the idea of delivering product directly to customer than making it available in retail markets. He started up business by stocking IBM computer components and making PCs available in various configurations rather than the IBM provides to the customers. This in turn expanded their reach in penetrating the market and scooping up new customers To do this effectively Dell always showed interest to do market research. In starting days Dell used to send a feedback form with the component to the customer and asked them to resend it back to him. As the days went by, the technology took a step ahead, The Company started collecting these responses and feedback through the internet. But nowadays Dell Inc. is giving this opportunity to some individuals, institutions and some organisations to do the market research to know the customer needs. These researches are solely focussed on a fixed timeline. Dell Inc. collaborates with them on a timely basis to aim some specific target groups globally. These targets are set geographically, demographically and/or based on the various age groups present in one particular region.

These institutions, organizations or individuals filters such potential information from the customers, local business owners by conducting in depth interviews and surveys. Some will be interested in making some focus groups with the other competitors and also with the small enterprises where they also discuss on the same topics. As it is an international company who depend on their brand value and goodwill, they should concentrate on consumer issues on a global scale. For most products available in the market, the measurement of customer satisfaction is noted by some parameters, for example price, product quality and service. Dell Inc. has always laid emphasis upon the quality and service of their products and company. In fact Michael Dell has started his company with customer satisfaction as a foundation.

Through market research collected from almost all regions of the world, Dell had come to know that the customers are not satisfied with the shape and the configurations which Dell Inc. are providing. Consumers prefer something small, lightweight and better fitted products than bulkier ones. As to obtain higher consumer satisfaction from the existing markets, now the company has started taking the orders from customers directly rather than the retail business people. So the company can provide the customer the preferred shape and size they want and what configuration they want. By doing this now Dell Inc. is trying to lead the already fiercely competitive customer satisfaction index and also the market.

 

Reference:

Bus.wisc.edu (2016). Dell Marketing Research Project.

Available at: //bus.wisc.edu/mba/current-students/mba-specializations/marketing-reseach/blog/2012/05/17/dell-marketing-research-project [Accessed on 19 Aug. 2016].

 

Anon, (2016).

Available at: http://www.dell.com/downloads/global/corporate/iar/20040618_tbr.pdf [Accessed on 20 Aug. 2016]

 

Marketing91.com (2016). SWOT analysis of DELL.

Available at: http://www.marketing91.com/swot-analysis-of-dell [Accessed on 20 Aug. 2016]

 

– By

Sri Mahesh Jonnalagadda (215405163)

 

 

Marketing Reseach

Marketing Research

Marketing Research is a compelling device to help your business arranging. It is about gathering data that gives knowledge about your customers thinking, buying patterns, and location. Likewise, market research helps you to screen market patterns and watch out for what your opposition is doing.

Market and social research gives exact and convenient data on the conduct, needs, states of mind, assessments and inspirations of a population. Furnished with this information, organizations can create items and administrations to meet the wishes of their clients and governments can tailor arrangements and projects to the necessities of citizens. Additionally, essential national measurements on social issues, TV ratings, tourism developments, unemployment thus on can be reliably determined.

Research refers through the different sources-

  • Surveys done time to time
  • Interpersonal contact between the clients and the company
  • Target audience that is group which need to be focused
  • Customer feedback
  • Seminars and questioners

Importance of market research-

Market and social research provides accurate and timely information on the needs, attitudes and motivations of a population: It plays a vital social role, assisting our government and businesses to develop services, policies, and products that are responsive to an identified need.

The market research programs are done under the government so that no one is allowed to push the product illegally.

Analysis-

When I just talk about my own company. I need to do the proper marketing research to get the best outcomes. So let’s take the company named Burger station. Taking the name of the company under the consideration I need to keep in mind the basic thing. First of all it is a food court so I have to research on the logo a tag line for the business.

So these are the things which need to be considered-

  • Design-When it comes to design, colour plays an important role. Each colour has its own meaning and many believe that if a certain colour is used in the right place the results could be extremely successful. For example, have you wondered that why these food chain restaurants they always use the combination of red and yellow, with blue in some of the logos. In colour psychology, red and yellow are known to subconsciously stimulate appetite and increase excitement. Shapes, fonts, lines, patterns, textures, contrast, composition they all communicate messages separately but when we put them all together, within the right hierarchy, that’s when the magic starts.
  • Invite the Customer– The surest way to achieve a deep understanding of your target and to prioritize Insight is to invite the consumer into the innovation process. Infuse them throughout to ensure that Insight is not only prioritized, it is executed against appropriately and leveraged to its maximum ability. This doesn’t always have to mean conducting a focus group or having a consumer co-creation session.
  • The data collection– The surveys done by the company regarding the ratings would matter a lot. As many of the things need to be done through the data. All the problems could be determined by the data collection or the surveys done.
  • The challenge– If full length videos that actually upload regardless of the environment was the challenge, then building an app that can survive the inconsistency of internet connections was the goal. The challenges faced by the company about the products that is failure of any product all these need to be determined.
  • Brand name– The brand name is always advantageous as all the things are sold by the packet instead of the inner material. So one has to develop the strongest brand name so that the [product may sold like a pancake.
  • Offers and the promotions– like on different eves many of the products need to be promoted according to the target audiences . So that they get attracted towards it.

However, successful businesses undertake market research on a regular basis to the following fo my company to get succeeded-

  • Identify potential new customers
  • Learn more about the existing customers
  • Inform their decisions regarding existing and new products and services
  • Better understand the opposition
  • Identifying the ongoing performance, pricing and other opportunities.

 

 

 

Why Coles is considered as ” save everyday”?

Most of us are familiar with Coles Supermarket. Coles is a largest supermarket in Australia and was established in the year 1914 by G.J. Coles in Collingwood, Melbourne. Over one lakh employees are working in Coles and this brand also has an online shopping facility.

According to 7News, customers are easily attracted to the Coles products. There are many reasons behind this factor. Due to the unemployment and increasing household expenditures, Coles reduce the prices of the goods and services to meet the requirements of affluent and the ordinary consumers. Most of the residents in Australia is worried about how to manage their day to day expenses, this results in cutting down of food consumption and other basic needs. Therefore, Coles brought some of the marketing policies to lower the rate of the basic useful goods and this helps the customers to live without starving. Nowadays, society is looking for discount and offers in the products and Coles sell their own products based on food, electronics and other appliances. The consumers are more concerned about the bills that are related to the electricity, water and other sources. So in order to relax them, Coles tries to cut down the prices of the goods and make good profit.

coles

source: Google images

The role of marketing research is very important to this field of retailing.  This helps the supermarket to know the capacity of their competitors, customer behaviour in the selection of the products, maintaining the existing customers, attract future customers, recognizing modern market trends, pricing and other business conditions.

Next, coming to the role of flybuys in Coles. Flybuys is an Australian Loyalty Program regulated by Westfarmers. Flybuys helps the Coles to maximise their earnings from the customers. Coles introduce the flybuys cards to the customers, when the customers after purchasing their items, they introduce their flybuys to the checkouts and they receive points for each purchase and with that offer or discount the customer can buy his/her desired products for a low rate after getting a fixed points in their flybuys card. According to the studies, around 5.5 million people in Australia use flybuys on their daily purchase. And this helps the Coles to gain a good marketing condition in the business world. In addition to that, Coles is also doing online shopping service. There are many advantages and disadvantages of online shopping .

Advantages:

The main thing is that the consumers would be able to save their time and energy, low transportation cost, ease with the availability of product choices, it is 24 hours working so if the consumers are in need of anything they would be easily access the product they wanted. Coles provide home delivery to their customers, these can develop better customer relationships.

Disadvantages:

The major disadvantages of online shopping includes, there would be only a personal opinion rather than other’s opinion. This may sometimes leads to the confusion to the customers whether to buy the appropriate product. The other drawback is that there will be a high shipping charges for the product. Below is the video showing the importance and demerits of online shopping.

On researching the Cole’s market position Coles satisfies the marketing conditions like computing customer’s basic needs and requirements,  good improvement in sales by cutting down the product prices so that the customers would be happy to purchase the goods, improved decision making and the rise of technology helped the Coles to improve their marketing standards and to compete with other retail industries. Coles was always ready to accept different cultures , so they sell goods of different countries and different nationalities purchase and this helps the Coles group to achieve customer loyalty. There are some important marketing strategies that had helped the Coles to achieve its success in the retail business, they are namely branding, packaging and pricing of the products. Customers always look for the brand name and whatever may be the price of the product some people run behind the brand names, so this helps the firm to expand their business.  Coles largely contributes for maximising  Australia’s national economy. With the help of social networking sites and other medias like newspapers, magazines and radios the company is able to meet their marketing requirements. Coles is mainly focussed on the advanced and educated society, this will enable them to experience new trends in the products and develop according to the new marketing trends. Thus, coles is very much successful in gaining more consumers because of their correct decisions, they always have an positive effect from the external environment like customers and government.

References:

1.http://www.smh.com.au/business/retail/why-shopping-online-at-coles-is-more-expensive-than-in-stores-20160412-go45mz.html

2. http://www.ibisworld.com.au/industry/default.aspx?indid=1834

3. https://www.atarconfidence.com.au/downloads/BusinessStudies-Marketing.pdf

4. http://www.yourarticlelibrary.com/marketing/need-and-importance-of-marketing-research/32281/

Name: Edwin Peter

Username: edwinpeter12345678

Student ID: 216042487

Sex Sells

 

The purpose of market research has not changed for over 100 years as per Professor Ron Weber, and, while the methods may have changed the reasoning is no different.  Really, it seems like a fairly basic concept, and not one that needs a team of marketing experts to explain the importance of.  If you want to sell a product to people, find out what they might think and what they might want.  Simple, right?  So where, then, was the market research for the Shake Weight?  Now to back up for a second, for anyone who is unsure of what the Shake Weight is, their advertisement is here.

So again, I ask, where was the market research for the Shake Weight?  The Shake Weight has been (rather unsurprisingly) ridiculed for its rather, ahem, suggestive movement.  While the creator, Johann Verheem says that it really is not suggestive if you use it properly, let’s be honest.  It is suggestive.  It does not take long to see it and if it is not immediately obvious to you, there are plenty of spoofs that will make it very obvious (just search “shake weight” on youtube or click this link for the more PG talk show clips).  Pretty easy to see why the marketing was ridiculed so heavily.

Shakeweight 1

That, however, is the issue.  Without being able to ask the creator directly about their market research techniques, quotes from Verheem leave a lot of questions.  The only form of market research he mentions before the ads were run, was simply the opinions of the actors and actresses on set.  Now, without pretending to be a marketing or psychology guru, it does seem to be fairly common sense that if you pay people to smile and use your product, that is probably what they are going to do.  Actors and actresses that have not expressed doubts about a product are not an affirmation of your product; they are just looking out for number 1.  What reason could they possibly have for being honest and telling you “your new exercise tool looks dirty”?  The best they could hope for is a pat on the back and the pay they were due, but the worst would be to forfeit their wages and be let go.  So, again, why would they risk their livelihood to let you know your dumbbell looks like you should be working out with the door locked and the lights down low.

Now, in all fairness to the Shake Weight, the first release of the commercial was supposed to be run as a focus group sort of idea, and it really wasn’t supposed to go viral, or so at least says Verheem (Full interview here).  Still, for a product that was meant for nationwide release, surely more research should have been done before allowing any advertisement of the product to go public.  This commercial was seen, spoofed, and ridiculed on nationwide talk shows, Youtube videos, Vine videos, and almost every other way you can imagine, even making an appearance on South Park.  How could they not know that would happen?  Surely if they had done any research whatsoever at least one person would have pointed out the obvious.

Shakeweight 2

Really there are only two possibilities.  The first is what I’ve already mentioned.  They forgot to do any research, and then were ridiculed for making a product and advertisement so laden with sexual innuendo that there really was no other possible outcome.  Scientifically it is suspect and not recommended on WebMD, and, all of the uproar may have come, as Verheem said, by surprise.  The other, however, is just the opposite.  Verheem has no real reason to tell the truth when it comes to his market research, and it seems like a bit of a stretch to say that none was done.  He would, however, have every reason to lie if he wanted the video to go viral.  It seems much more plausible to me that Verheem did do his research, and simply decided that, based on what was said, he could make a lot more sales by exploiting its comedy factor to spread the name.  This, is, of course, just speculation but a creative response to market data may have been exactly what the Shake Weight needed.  “Any press is good press,” it is said, and with $40 million in revenue already, Verheem may have created the most effective (if inappropriate) marketing campaign the fitness industry by simply using that research creatively.

-Garrett Siu (garrettsiu)

References

Anon, Does the Shake Weight Work? EXERCISE BIOLOGY. Available at: http://www.exercisebiology.com/index.php/site/articles/does_the_shake_weight_work/ [Accessed August 18, 2016].

Esco, M., Shake Weight: Fitness Expert’s Review. WebMD. Available at: http://www.webmd.com/fitness-exercise/features/shake-weight-review#3 [Accessed August 18, 2016].

Lagorio-Chafkin, C., Shaking America By Storm. Inc.com. Available at: http://www.inc.com/articles/2010/08/shake-weight-inventor-johann-verheem.html [Accessed August 18, 2016].

Moretti, A., 2011. Infomercial Insanity: The Shake Weight – Angry Trainer Fitness – Alfonso Moretti. Angry Trainer Fitness. Available at: http://angrytrainerfitness.com/2011/04/infomercial-insanity-the-shake-weight/ [Accessed August 18, 2016].

Rovell, D., 2010. The Shake Weight Hits $40 Million In Sales. CNBC. Available at: http://www.cnbc.com/id/38788941 [Accessed August 18, 2016].

Weber, R., The Purpose of Marketing Research Hasn’t Changed in 100 Years | Webber International University. Webber International University. Available at: http://webber.edu/dont-know-what-to-wear-to-an-interview-check-out-this-slideshare/ [Accessed August 18, 2016].

 

Social Media – the “cheap” source for Market Research!

Why not benefit from the obvious?
social-media

Source: Future Market Insights 2015

When it comes to market research, gaining information and spending money is usually closely related. How convenient, that most of us use social media platforms like Twitter and Facebook right after the wake-up call and spread lots of important information in the worldwide web.


Using social media is more popular than ever and became part of the everyday routine for most people. Finally, more and more companies recognise the value of social media: about 78% of the companies already use or begin to integrate social media data into marketing campaigns (Insights in Marketing 2016). Easily and cost-effectively accessible for companies – social media constitutes an attractive modern market research method for improved marketing results.

Traditional market research methods

research methods

Source: Guan Tho n.d.

Traditional Market Research Methods use two different types of research to gather data: Primary and Secondary Research. 

Primary research includes data that is collected by the company itself or a hired service provider to assemble a collection of information directly suited for the company’s needs by using e.g. focus groups and surveys.

Secondary research on the other hand means searching for existing data that was originally gathered for someone else by using libraries or the internet among others.

Apart from that, market researches either use quantitative researches which are concerned with numbers and have a statistical nature or qualitative researches which focus on a small number of people that are part of the target audience of interest without giving statistically robust findings due to the small sample size.

Discovering new opportunities

Traditional market research can be very time-intensive and – even more important – costly process. Consistently, companies are steadily searching for cheaper alternatives that still provide the same insights into important market research aspects like their customers, market or brand appearance. As a result, more and more companies recognized social media platforms as an useful tool to gather the needed information and save money at the same time.

As Nelson (2013) states, understanding the benefits of social media and creating a solid research plan is key to properly utilise the collected data for market research. Accordingly, companies should pay attention to the following three aspects before they start using social media research.

  • Strategy
    Focus on a creating a social media research strategy first which helps to separate important and useless data
  • Time
    Budget enough time since the collected data needs to be cleaned and reviewed
  • Additional tool
    Use social media as an addition to other research tools to get the best results
    (Insights in Marketing 2016)

Click here to get more information about the do’s and don’ts of social media market research.

Benefits of Social Media Market Research

Once decided to implement social media into the company’s marketing strategy, companies can benefit of the gained knowledge.

Real-time insights

Using social media allows companies to gain real-time knowledge instead of spending much time on waiting for the results from traditional focus groups or surveys and develop real-time business intelligence (Zacrep 2015). Due to advanced settings and search options most of the social media platforms offer numerous ways for companies to evaluate current trends by searching for latest post or using hashtags (Nelson 2013).

Improved cost efficiency

Unlike huge expenses for traditional market research methods, the use of social media usually does not cost any money and just requires time to gather all the needed information.

Interactivity

Apart from that, social media research enables companies to interact with its customers or market which is an important step in understanding it’s audience and utilise the collected data (Zacrep 2015). In this context hashtags are not only a helpful tool to track trends but also to search information that are directly related to the company/industry. Companies become social listeners and observers who utilise the given information which might be even more representative and honest since people feel not pressed to give certain answers as some might feel during surveys or focus groups.

Social media – the useful addition

Marvel and phenomenon social media (platforms): dearly beloved by millions of people around the globe, responsible for thousands of breakups, love stories, fights and addictive disorders. And apart from that, powerful tool for companies to reduce costs, uncover hidden trends and improve the marketing approach. But lately just an addition for the solid and reliable good old traditional market research to combine the profound knowledge of detailed surveys with the topicality of real-time monitoring and trend tracking!

So stop ignoring this strong opportunity, carry your business to the next level and benefit from the obvious!

posted by Ronja Naudorf (rnaudorf -215466308)


References

Future Market Insights 2015, social media platforms, image, retrieved 22 August 2016, http://www.futuremarketinsights.com/page/social-media-research.

Guan Tho, K n.d., market research methods, image, retrieved 22 August 2016, http://www.referenceforbusiness.com/small/Mail-Op/Market-Research.html.

Insights in Marketing 2016, ‘The do’s and don’ts of social media market research’, Insights in Marketing, 11 January, retrieved 22 August 2016, http://www.insightsinmarketing.com/resources/blog/the-dos-and-donts-of-social-media-market-research/.

Nelson, R 2013, ‘How to Use Social Media for Market Research’, Social Media Today, 19 March, retrieved 22 August 2016, http://www.socialmediatoday.com/content/how-use-social-media-market-research.

Zacrep, K 2015, ‘How market researches can effectively utilize social media analytics’, Market Research, 5 March, retrieved 22 August 2016, http://blog.marketresearch.com/how-market-researchers-can-effectively-utilize-social-media-analytics.

 

 

I am lovin it?…Really?..Market research : Mcdonald

Let me begin by asking the question “which company has the tagline, “I am lovin it” you guessed it right its Mcdonalds, the worlds fastest growing fast food company with more than 32,000 restaurants spread across the globe serving more than 58 million customers  daily was started in the year 1940 by Dick and Mac Mcdonalds. According to 2012 BBC report Mcdonalds Corporations is the second largest private employer behind walmart giving work to more than 1.9 million employees.

source: google images

source: google images

So how did Macdonalds managed to make it so big?

The answer is Mcdonald Marketing research strategy marketing research gives a clear and crtical idea about its cutomers and competitors which is pretty much essential for a successful venture, it also answers several key questions like…will the customers like my product?…what should be my target audience and so on..this will help to determine and plan new stargies for achieving spell bound results. The following image depicts the importance of having  marketing research.

source: google images

souce : google Image

Moreover every day Mcdonald comes up with new and innovative techniques with a primary aim to fullfill the customer objective such techniques which not only attracts  the customers but also forces them to try their new innovation, this food chain is well known for its chiken nuggets,Big mac and Mcafes or Maccas which help the cutomers to have a nice ice cold beverage or an ice-creame, Adding to that giving fancy toys to the children for every meal is an another inconspicuos way of marketing by introducing such techniques upgraded the fast food restaurant to grow into good food fast. (Gupta.S 2009)

Previously when Mcdonald started their was no chicken nuggets or a Mcafe to serve the people it was primarly based on hamburgers, but due to changing demands of the cutomers Mcdonald had root its innovation to various other eataries. But however, as we all know every book has another side  various reports and research have again and again drawed us to the same conclusion i.e. is the food worth enough?. buying a fast food from Mcdonald do not shoots up a hole in the pocket but the point is it worth it?… Behind the closed door of such restauarnts there is a unimaginable story one can think of, the toys they give to childrens is like a chain in the dog neck which forces the children to be a life long customers.(Chatterjee.C 2014).

The price of burgers,fries and nuggets sounds cheap but one has to pay a really big price in the coming future. In order to prepare the food fast lot of processed oil is used in the making along with lot of sugar and salt which just adds up from junk food to junkier. According to a recent survey one out of every three person is obese in U.S. (Chatterjee.C 2014).

Check the video below by Bryan Marcel a food expert who gives his review about the food of Mcdonald.

Lets talk about its optimistic side, inspite of having all these irregularities how and why is Mcdonald growing so big, the following are the six ingredients of Mcdonalds success

  • Franchising : 80% of McDonald’s eateries are franchised; in Australia, this extent is 66%. Franchising empowers McDonald’s to saddle singular ability and exertion, while as yet holding control of its image, menu and pricing.
  • International expansion : Mcdonalds is huge it is spread over 118 countries and has been in the business for more than five decades helped to earn goodwill across the globe.
  • Worldwide but local : It is basically a multicultural giant adapting the menu to suite the local markets For e.g some Mcdonalds provide beer to the customers while in India where Hindus dont eat beef Indian menu has vegetarian as well as non-beef options.
  • Low prices : Even though the food of the Mcdonalds is considered unhygienic by several experts its low prices pulls millions of cutomers to its doorway everyday.
  • Free wifi : Several of Mcdonald store provide free wifi to its cutomers, wifi  not working back home where else can a person go in other than Mcdonald it is not unusual to see people using laptop or tablets for doing their daily office works with a cup of coffee beside them.
  • Tie up with media and sponsorship : Mcdonald have been a active partner with media giants like Disney and woolies and also has firm interests in sponsoring several stage shows which attracts a whole lot of youngsters.(Philips. S 2012).

This provides another example about how an efficient market strategy  can overcome all the hindrance in the business and continue to achieve its success and glory.

References :

(Chatterjee.C 2014). Behind the closed door of such restauarnts there is a unimaginable story one can think of, the toys they give to childrens is like a chain in the dog neck which forces the children to be a life long customers.

(Chatterjee.C 2014). In order to prepare the food fast lot of processed oil is used in the making along with lot of sugar and salt which just adds up from junk food to junkier. According to a recent survey one out of every three person is obese in U.S.

(Gupta.S 2009). Adding to that giving fancy toys to the children for every meal is an another inconspicuos way of marketing by introducing such techniques upgraded the fast food restaurant to grow into good food fast.

(http://www.slideshare.net/gsaklani/a-market-research-on-mc-donald-restaurent) According to 2012 BBC report Mcdonalds Corporations is the second largest private employer behind walmart giving work to more than 1.9 million employees.

(Philips. S 2012). The six ingredients of Mcdonalds success

(https://www.outsource2india.com/kpo/articles/market-research-importance.asp) Importance of marketing research.

Justin Jacob

username : jjacob003

Student Id: 216034001

 

 

Is Google Glass fragile?

If the year of 1985 experienced the worst failure of Coke due to its bad market research, which was based on over 200,000 taste tests, 2013 was the miserable year of Google when it failed to market Google Glass – expected as a revolutionary product – to the world. Bad marketing research was also one of the most critical reasons leading to Google’s failure. Both failure occurred at separate time, however, they have alarmed marketers about the importance of quality marketing research.

Let’s look at what occurred in the marketing research of this breakthrough product.

Wrong at the first step

In marketing research process, the first stage which determines market problem can be considered as the most critical and difficult stage (Iacobucci 2013). But, Google hadn’t yet completed this first step before following the next ones.

Screen shot 2014-02-27 at 9.46.19 AM

Figre 1. Marketing Research Process (Source: EDBUS)

Instead of finding the demand or a problem that Google Glass was trying to present, the company just created a product first, then tried to find customers who’ll be fond of it.

The fabulous thing here is that no one can googleglassimageexplain about why the product was fabulous. Jones, who is a technology respondent of BBC and had been wearing it within six weeks, has come to a conclusion that this so-called brilliant product can make you “geeky” and lack the sheer usefulness.

Basically, the Google Glass has two functions that are to rapidly capture pictures and to access useful information from the internet. But what can these features bring for us in practical daily uses? Nothing.

Regarding problem formulation, Krum et.al (1987) also argued that a clear statement of problem has been virtually necessary before a research project can start. It seems that Google overlooked this principle in its development of Google Glass.

Uncompleted marketing research

Many people have still been confused whether Google Glass was an actual finished product, or just a sample. Firstly, there were a lot of potential problems with Google Glass regarding multi-task, internet reliant, learning context  and battery life.

Google Glass enabled too many pop-up notifications that can occur simultaneously. Besides, many credible features become useless without a Wifi-friendly zone. Compared with Pebble or iWatchGoogle Glass was just a device lasting two hours between charges.

google-glass-vs-smartwatches

Source: Google Image

Secondly, the first version of the product was not launched in retail stores. Instead, it was sold to a group called “Glass Explorers” who would pay an amount of $1,500 to get a chance to experience this Google Glass.

In my view, this can be considered in the “Design primary data collection” stage of Google Glass. They combined two techniques: cluster analysis for segmentation and focus groups for concept testing (Iacobucci 2013).

Clustering methods formed group of tech geeks and journalists who can give them what the group was seeking. And Google increased the sample size of focus group in order to predict what the marketplace would respond. Their objectives also was to let these slew of celebrities be advertising. Unfortunately, clustering methods cannot tell them which segment to target, and these focus group became criticisers  who did not benefit from key creatures of Google Glass. As a result, its reputation was damaged due to the underwhelming experiences of “Glass Explorers” through social media or personal blogs.

bm404-lecture5-12-728

Source : Slideshare

Another approach that can assist Google Glass to target and serve profitable customers is Customer Pyramid Tool (Zeithaml et al 2001). The model divides customers into four tiers, and the first two tiers which are Platinum and Gold customers can be more potential. Once Google established a system for categorised customers (like tech geeks and journalists), the multiple levels can be identified to gain the differential levels of profits. Google can utilise this tool to develop customised products and service.

And what will come in the future?

The original Google Glass promised to have a significant improvement in the field of marketing research and customer insights. Google Glass’s developers have been trying to maximise features that create more connectivity and sharing of aggregate data useful for B2C and B2B marketing. However, Google Glass should release the product rapidly and widely take advantage of the momentum, because some competitors have begun their marketing research about smart glasses.

The positive sign for Google Glass will be that, according to a recently published report of Juniper Researchby 2020, more than 12 million smart glasses like Google Glass will be delivered to customers.

googleHolo-750x410

Source: Google Image

But, Microsoft HoloLens can be the biggest challenge for Google Glass when it is aiming to avoid mistakes of Google Glass and dominate the marketplace by 2020.

If Google Glass itself doesn’t want to be failed again, it should learn from its lesson. More careful market research. No stunts. No fashion spread.

Phoebe Phung

215010538

References:

Benjamin, J 2015, Market Research Fail: How New Coke Became the Worst Flub of All Time, Business2community, retrieved on 20 August 2016,  http://www.business2community.com/consumer-marketing/market-research-fail-new-coke-became-worst-flub-time-01256904#DJ4j014k4LBTZvmM.99

EDBUS 2016, Marketing Research process, photograph, retrieved 19 August 2016, http://edbus.saschina.wikispaces.net/Marketing+Note

Epstein, Z 2013, Google Glass is the future – and the future has awful battery life, BGR, retrieved 20 August 2016, http://bgr.com/2013/05/01/google-glass-battery-life/

Iacobucci, D 2013, Mm4, n.p.: Mason, Ohio : South-Western ; Andover : Cengage Learning [distributor], [2013], DEAKIN UNIV LIBRARY’s Catalog, EBSCOhost, retrieved 18 August 2016.

Krum, JR, Rau, PA & Keiser, SK 1987, ‘The Marketing research process: Role perceptions of researchers and users’, Journal of Advertising Research, vol. 27, pp. 9-21.

Times of Indian 2016, How Microsoft HoloLens has edge over Google Glass, Times of Indian, retrieved 21 August 2016, http://timesofindia.indiatimes.com/tech/computing/How-Microsoft-HoloLens-has-edge-over-Google-Glass/articleshow/50915123.cms

Zeithaml, VA, Rust, RT & Lemon, KN 2001, ‘The customer pyramid: creating and serving profitable customers’, California Management Review, vol. 43, pp. 118-142.

 

Did Samsung succeed in creating the best Smartphone ever?

samsung

Market research:

The main process in market research is as follows:

First step includes: Defining the main problem and the ultimate objective. Then, prepare a research design. The next part includes data collection and sampling. Well, data collection is done using some common research tools used by any company. Analysing comes later where the researched information is properly analysed. The final step is the results where the initial problem listed in the first step will be sorted out.

 

For any research study, data collection is an important part. Though, data collection is done through many methods but any organisation will not use all the methods to gather data. Some use interviews as a data collection technique. Some prepare questionnaires to gather the required information. Also some quantitative and qualitative data collection techniques. Basically, market research uses two kinds of data namely primary and secondary data. Primary is the kind of data they collect from their customers in the form of interviews, questionnaire and such. Secondary information is the one which already exists in the company in the form of predicted information (Which varies from the primary data).

Research is mainly about the behaviours of the people, their opinions about the specific brand, their attitude towards a brand and such. From this, we get the thoughts and opinions of the people about the particular product or a brand, their general habits and the facts they believe in.

 

 

It was that time when Samsung and Apple were the biggest rivals in the smartphone industry. Innovating the whole concept of smartphone was the main motto among both the rivals. It was 2014, when Samsung launched their flagship device named as the Samsung galaxy s5. This was a successor to the previously successful model Samsung galaxy s4. This smartphone s5 was launched in competition to the iPhone5. Samsung was widely criticised after this launch. Reasons mainly included use of plastic body on the phone which made it look cheap, too many specifications which aren’t even necessary on a smartphone and such. After a year they came up with a better smartphone named s6/s6 edge/ s6 edge +. Then came the Samsung galaxy s7/s7 edge which is the best smartphone available today.

Innovative smartphone but lagging premium feel

Samsung galaxy s5

 

 

Data collection:

In this case, when Samsung launched their smartphone s5, they did not expect that kind of criticism. So, they gathered reasons in every way possible and also they collection some suggestions from their loyal fan base and from the people who used Samsung but moved on to other brands in many ways. Basically, phone reviews are published on many sites such as GSMarena, phone arena, digital trends and trusted reviews and so on. They got to know about their model s5 and they found out the reasons why it was criticised. It looked cheap, it has too many specifications which are not even useful. Phone was appreciated very little for a sole reason that the phone was actually waterproof/ water-resistant.

 

 

Premium smartphone and a better one than S5

Premium smartphone Galaxy S6/S6 edge and a better version than S5

Ways they collected the required information:

After a phone is launched, all the reviews, customer opinions will be published on many sites and also on social media. They gathered the information through those sites and also from the customers they face at the store. They expressed their concern regarding the degraded quality of a smartphone. That made then develop something better. Also there are customers who shop online from the e-commerce sites.

 

Data analysing:

When they collected the information the next best part is analysing the gathered data/information. They analysed all the information they received and they wanted to build a perfect smartphone. They gained the information or customer opinions through social media, through smartphone rating sites and at the stores when they face the customers. So, accordingly they created a phone s6 edge when they could impress the loyal fan base and also many more new people. Even after this launch they faced some negative reviews from their loyal fans which included removing water proofing of the phone, non-removable battery and no expandable storage and such.

 

Premium smartphone and very innovative

Samsung Galaxy S7/S7 edge (Best phone available in the market right now)

 

Result:

So, they invested $13.8billion in 2014 and that way they created something better than a galaxy s5. For this little criticism they received about their refined device s6edge, they further increased their investment on R&D.  It was $14billion which was highest for any tech company till date. Looks like, the huge investment paid off. The more improved, further better, most stylish, ultra sleek phone was launched named Samsung galaxy s7/ s7 edge. They added the water proof option, expandable storage and a bigger battery for a better performance of the phone. This was a long-awaited success for Samsung mobile. They answered their critics through this phone which wasn’t criticised a bit.

 

References:

·         Daniel P. – Samsung breaks R&D spending records, invests $14 billion in new tech – 10 Mar 2015, (http://www.phonearena.com/news/Samsung-breaks-R-D-spending-records-invests-14-billion-in-new-tech_id67054)

·         Brad Reed on Mar 10, 2015 – “Samsung is spending an insane amount of money to beat Apple to the ‘next big thing’” (http://bgr.com/2015/03/10/samsung-r-and-d-spending-2014/)

 

 

 

BY Goutham Menda (215389129)

 

 

 

Woolworths Ditches Homebrand to Increase Sales

Don’t judge a book by its cover… this idiom has been told to us since we were knee-high to a grasshopper. But face it! We’ve done it all the time, knowingly or unknowingly. We perceive the value of a product based on its packaging. Small visuals, such as image choice and colour, say a lot about a product, and most consumers, being super busy, buy products based on their gut impression, rather than reading the fine print on the product package. From a marketing point of view, that first impression needs to be a positive one, and marketing research, by means of holding focus groups or filling out surveys, can help achieve that.

Source: Google n.d.

Source: Google n.d.

Types of Marketing Research and Its Importance

Marketing research uses two types of data: primary and secondary. Primary data includes information that is obtained directly from potential customers. This type of data can either be qualitative (for example, focus groups and in-depth interviews) or quantitative (for example, surveys and experiments). Secondary data includes information that is obtained through reports and studies of other organisations.

Marketing research should be done on a regular basis to know your competitors, their strengths and weaknesses, to know your customers and their preferences and to know the existing gaps in the market. For example, Woolworths introduced a new program known as Customer Talkback. This program involves conducting customer focus groups around the country, wherein customers provide frank feedback directly to the store team. Based on the research done by Woolworths, they learnt that customers perceive their homebrand products to be of cheap quality. This is mainly due to the familiar, yet simple red and white packaging of homebrand products. Customers correlated plain packaging and low price with low quality. In contrast, customers perceive Aldi’s private label products to be of reasonable quality owing to the packaging being similar to nationally branded alternatives.

Source: Google n.d.

Source: Tucker 2016

So What did Woolworths do?

To fight these perceptions, Woolworths has renamed over 900 homebrand products as ‘Essentials’, after investing 33 years into making homebrand one of the top-selling generic brands in Australia. The supermarket giant aims on improving perceptions of the brand using new packaging and simultaneously maintaining or lowering price.

Source: Google n.d.

Source: Google n.d.

Admittedly so, just changing the labels and packaging will certainly work. This is because the human brain can be influenced easily. A lot of sensation is derived from the packet when we eat or drink. For example, Coca-Cola is extremely susceptible to consumer perception. (Well, they ought to since they have been selling brown sugar-water for more than a century at a high price.) However, in 2011, they tried to restage its polar bear mascot by changing the design of the Coca-Cola Classic cans from the usual red to a wintry white. This was a huge mistake. Within a month, they had to abandon the project and revert to red. This was because of three main reasons:

  1. Many customers complained that the drink tastes different when in a white can.
  2. Coke’s most ardent fans found the change in colour offensive.
  3. Some consumers confused the packaging with Diet Coke’s similar silver cans.
Source: Google n.d.

Source: Google n.d.

Although this change wasn’t as big a mess as the New Coke fiasco in 1985, it did induce the same kind of sentiments among the brand’s customers, which could have been avoided had the company done a thorough marketing research before releasing the newly packaged drink in the market.

Connecting Shape and Colour with Taste

Charles Spence, a psychology professor at Oxford University, has performed numerous experiments on multisensory perception and made several discoveries. He observed that strawberry mousse served in a white container tastes 10% sweeter than that served in a black container. He suggested that colours and shapes influence the taste of food, such as red makes food taste sweet whereas blue makes things taste saltier.

Thus, Woolworths’ simple strategy to revise their packaging can make such a huge difference. Packaging may not matter as much for an apple or a dinner roll as it would for products that have no real shape of their own, such as canned food, beverages and spreads — the products that are usually homebrand. To be honest, the quality of cheap generic brands has often been good all along. It’s only because of the unappealing packaging we’ve had bad experiences with them.

Woolworths is investing over $600 million into decreasing grocery prices and enhancing service in stores so as to recover market share lost to Coles and Aldi as well as to revive sales growth, which has been dropping for three successive quarters. We should probably wait and see if their simple trick of switching labels works.

Claire D’mello

216059831


References

Bhasin K 2011, People Are So Outraged At Coca-Cola’s Holiday Cans That It’s Abandoning Them After Just One Month, Business Insider Australia, retrieved 22 August 2016, <http://www.businessinsider.com.au/coca-cola-abandons-white-polar-bear-can-2011-12?r=US&IR=T >.

Burns M 2011, Review: 2011 Coca-Cola “Arctic Home” White Cans, photograph, BevReview, retrieved 22 August 2016, <http://www.bevreview.com/2011/12/09/2011-coca-cola-arctic-home-white-cans/ >.

Mitchell S 2016, Woolworths makes Homebrand homeless in private label shift, The Sydney Morning Herald, retrieved 22 August 2016, <http://www.smh.com.au/business/retail/woolworths-makes-homebrand-homeless-in-private-label-shift-20160327-gns0p2.html >.

Murphy J 2016, Why Woolies had to kill Homebrand, photograph, news.com.au, retrieved 22 August 2016, <http://www.news.com.au/lifestyle/food/eat/why-woolies-had-to-kill-homebrand/news-story/b62b5a91c9a41209681f554180745225 >.

Oxford Martin Programme on the Future of Food n.d., Charles Spence, University of Oxford, retrieved 22 August 2016, <http://www.futureoffood.ox.ac.uk/people/charles-spence >.

Start your own business 2016, Conducting market research, entrepreneur press, retrieved 22 August 2016, <https://www.entrepreneur.com/article/217388 >.

Stock Illustration – Market research background concept n.d., photograph, CanStock Photo, retrieved 22 August 2016, <http://www.canstockphoto.com/market-research-background-concept-6138267.html >.

Strategy and Objectives n.d., Woolworths Limited, retrieved 22 August 2016, <http://www.woolworthslimited.com.au/page/Who_We_Are/Strategy_and_Objectives/ >.

Tucker H 2016, Woolworths is killing off Homebrand to fight Aldi, photograph, Business Insider Australia, retrieved 22 August 2016, <http://www.businessinsider.com.au/woolworths-is-killing-off-homebrand-to-fight-aldi-2016-3 >.

Woolworths Supermarket Bankstown, Centro Bankstown n.d., photograph, Sandrick Project Directions, retrieved 22 August 2016, <http://sandrick.com/project/woolworths-supermarket-bankstown/ >.