session 2

Question 1

Statistics

Answer 1

Taking small samples and making accurate predictions

Question 2

Product line extension

Answer 2

Company comes up with a new product in an existing product category that they are already in *** important
Up to 50% of new product launches are product line extensions
Ex: coolgate for regular teeth but also toothpaste for sensitive teeth

Question 3

Brand extension

Answer 3

Entering a new product category that they arent in
Ex: dyson going into handbags
Ex: Golf club company sells clubs but now is also selling golf shoes

Question 4

Why launch a new product within in an existing product category

Answer 4

Capturing new segments of consumers , satisfying a different consumer need or want

Question 5

Market research process

Answer 5

6 steps involved
Step 1: translating a business problem into a research question → examining an element of the marketing strategy , think of four ps
Step 2: design research program to answer research questions
Step 3: collect data
Step 4: analyze research results
Step 5: interpret research findings and make recs
Step 6: communicate recs to business audiences

Question 6

j crew

Answer 6

Struggling due to lowering sales in 2010
They were bankrupt and are recovering but have really fallen from where they used to be

Question 7

reasons why j crew was struggling

Answer 7

Loss of brand focus (biggest issue)
increased prices
Regular sales with large discounts
Increased competition

Question 8

how did j crew attempt to fix themselves

Answer 8

Brand partnerships
adding/ deleting product lines
Changing aesthetic
So far not able to recover

Question 9

What is the fundamental issue with j crew

Answer 9

They are neither a discount retailer nor a luxury retailer
They were doing well because the market accepted businesses that were in the middle of luxury and discount
Consumer behaviour changed in 2010
There was a financial crisis before 2010 so people started to become cost conscious and wanted more value from brands and looked at brands that were more cost conscious→ j crew had the challenge to position themselves and show a different proposition from the discount brands and luxury brands , they didnt do this
They increased prices because they weren’t doing well but also engaged in deep discounts , so there are conflicting strategies
Consumers arent sure what j crew is about
It didnt adapt to the online market as well as other companies
If your a middle brand, super important to express your value proposition → can talk about how your brand is sustainable, inclusive (plus size), durability

Question 10

major takeaway from the j crew case

Answer 10

When you see a problem you need to address it with marketing research, and understand your brand identity

Question 11

Problem definition

Answer 11

Have to determine the business problem then translate it into a research problem then describe specific research objectives

Question 12

determine the business problem

Answer 12

make sure the problem is clear
keep asking why until you reach the core problem
identify unit of analysis (company, division product line)
identify key variables (revenue, customer satisfaction, willingness to pay)
identify other key info

Question 13

Business problem of j crew:

Answer 13

Loss of brand identity and decrease in sales revenue

Question 14

research problem of j crew

Answer 14

Pricing is the research problem they need to focus on→ change their pricing strategy of deep discounting

Question 15

research objectives of j crew

Answer 15

Evaluate each product line to see if the elimination of discounting is possible
Determine the target markets pricing preference

Question 16

research vs business problem

Answer 16

A business problem is a problem that a business needs to solve, while a research problem is a task that researchers need to complete to help solve that proble (internet)

Question 17

Independent variables:

Answer 17

variable that is manipulated by the researcher , influences the dependent variable . ex: price

Question 18

dependent variables

Answer 18

variable that you are measuring, explained and influenced by the independent variable . ex: willingness to pay

Question 19

hypotheses

Answer 19

explaining the relationship between the independent and depending variable

Question 20

New coke case

Answer 20

Company engaging in market research but made a big mistake→ need to do good research not just research
Pepsi had a new edgy marketing strategy that was taking off which lead coca cola in trouble

Question 21

business problem of new coke

Answer 21

losing market share to pepsi and need to appeal to a new customer segment (young generation)

Question 22

research problem of new coke

Answer 22

Evaluate the current advertising strategy, and potentially target a younger segment, in terms of 4 ps its promotion we need to focus on

Question 23

How did coke react?

Answer 23

The conducted extensive market research and found a formula that works and replaced the existing drink with “new coke” with a new taste
Its an issue to replace the existing drink because they have a loyal consumer base who liked the old cola

Question 24

What led to the new coke

Answer 24

They did marketing research → 200,000 blond taste tests, focus groups, surveys and find that People had a distinct preference for new coke over old coke and new coke over pepsi → New coke was launched

Question 25

what went wrong with new coke

Answer 25

Research was based on wrong assumptions: coca cola though that taste was a deciding factor but its not, emotional involvement and brand associations were key for when people bought coke not even the taste → branding is so important The way they conducted the research: they did not adequately simulate experience of drinking coke, people would drink it in a can, in the blind taste test they didnt serve it in a can and small serving sizes→ this difference matters because the reward center in your brain goes crazy when it comes from a can and only slightly lights up when they drink it from a glass →therefore wrong conclusions were made Always want to replicate the consumer experience Third issue was that consumers were not told that only one product would be marketed , never told people that new coke would replace old coke

Question 26

what did coke do Inr response to fix the situation

Answer 26

Launched a product line extension called cherry coke Reintroduces coca cola classic Launched a campaign → authenticity

Question 27

Cokes product line extension

Answer 27

Benefits: satisfy new segments Risks: cannibalizing the original product To mitigate cannibalization, need good segmentation , find consumers that want your product but also want differentiation from the og product Coke has regular coke but also diet coke (diet coke was more targeted towards weight conscious consumers) Coca cola life was also launched for health conscious consumers → good bc targetting new customers but didnt work because people didnt associate coke with naturalness . make sure you know what associations consumers have with your brand

Question 28

Why Study Marketing Research?

Answer 28

Drill deeper than surface observations *Gather research-driven insights to understand the ever-changing marketplace *Propose products/services that create value for targeted consumers *Craftgood stories (=messaging strategy) thatcommunicatethe value proposition to targetedconsumers

Question 29

marketing research should

Answer 29

*Be anchoredin a deepunderstandingof the targetmarket*Go beyondfacts/descriptive statisticsto explainthe WHY*Bringa new understandingor challenge existingbeliefs*Lead to strategicaction31