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PGP I Term III (2016-17)
Research for Marketing Decisions

Prof. Avinash Mulky

Dewdrop (B): Choosing a research agency

• Criteria for evaluating the design (page 1 & 2 of the case)
• Your comments if any

• Summarise each agency’s proposal

• Rate each proposal on the criteria

• Which agency will you choose, why?

Brand image: Identifying associations Brand .

Quality User Functional Benefits imagery Uses Symbols Hedonic Benefits Symbolic benefits Source: Adapted from Aaker and Joachimsthaler ( 2002) . Brand image: Types of brand associations Organisational Brand associations personality Country of Attributes origin Price.

Passionate • Brand Loyalty – Behavioural loyalty. Attitudinal loyalty . Exciting. Peaceful. Competent.Measuring brand parameters • Brand awareness – Recognition. recall • Brand image – Top 5 words that come to your mind when I mention brand “X” • Brand personality – Sincere. Sophisticated.


Chennai-600008 . Pantheon Road. Egmore. Household Purchase Diary Please fill in the details on all the products purchased during this month Member’s Name Membership No. Visited By: sign Date Area Month Year Remarks Member’s Signature IMRB 92.

of Special Offer if any Purchase Variant Size packs .Household purchase diary: Date of Brand Name Colour/ Pack No.

Summary results: Oct and Nov. 2016 Purchases in Oct Purchases in Nov Brand A 200 (20%) 250 (25%) +5% B 300 (30%) 270 (27%) -3% C 350 (35%) 330 (33%) -2% D 150 (15%) 150 (15%) 0% 1000 (100%) 1000 (100%) .

Brand Switching Matrix During November Bought A Bought B Bought C Bought D Total Bought A 175 25 0 0 200 Bought B 0 225 50 25 300 Bought C 0 0 280 70 350 Oct Bought D 75 20 0 55 150 250 270 330 150 1000 Source: Churchill. 2001 .

000 Source : Churchill .800 .875 .000 Oct Bought B 0 .750 .088 1. Brand Loyalty During November Bought A Bought B Bought C Bought D Total Bought A 0.000 Bought D .167 .200 1.367 1.000 Bought C 0 0 .125 0 0 1.500 .133 0 .

Dewdrop soap: Cumulative penetration of brand 34% 30% Cum Penetration 20% 10% 4 8 12 16 20 24 28 32 36 Weeks after launch .

other brands are R and S) Buyer W1 W2 W3 W4 W5 W6 W7 W8 W9 W10 W11 1 D D R D R R R R D R R 2 D S S S S S 3 D D D D D D D D D D 4 D D R D R 5 D D D D D 6 D D R D R R S R R 7 D S S S S Cum 2 4 7 buyers Repeat purchase rate 6/10=60% 5/10=50% 4/10=40% 4/10=40% .Repeat purchasing rate calculation (Hypothetical example: Brand D=Dewdrops.

Repeat purchase rate of Dewdrops 60% Repeat purchase 40% rate 25% 20% 4 8 12 16 20 24 28 32 36 Weeks after launch .

2 41% 34% buyers Buyers of 34% Dewdrops All buyers Total volume in the in the category category .9 of 66% 59% 66% buyers Dewdrops 41% volume = 1.Buying rate index for Dewdrops Non-buyers 59% volume = 0.

Parfitt.2% . Buying rate Long run x penetration purchasing rate index market share = = x 25% x 1.Collins Model Market share estimation of Dewdrops Estimated x Repeat.20 34% = 10.

Choosing a research agency: General criteria • Understanding of our research brief • Professional capability of the agency • Facilities and services available to us • Reputation for quality • Personal attention we will receive • Ability to meet deadlines • Pricing structure .

Socio-economic classification. Buyer readiness state. Values – Benefits they want – Behaviour: Occasion of purchase.Segmentation • Which group of customers will find our product particularly attractive? • How can we describe this group? – Geography: Where they live – Demographics: Age bracket they are in. Generation. Life cycle stage. Usage rate. income category. Occuptaion – Psychographics: Personality. Gender. Lifestyle. Usage status-User/Non-user. Loyalty status .

Segmenting Consumer Markets Descriptors Segmentation bases • Geographic • Benefits desired • Demographic • Behavioral characteristics • Psychographic .

risk profile) . power structure. application. capabilities) Purchasing approaches (centralization. buyer-seller relationship. size) Operating variables (Technology. purchasing criteria) Situation factors (urgency.Segmentation in B-B Markets: Nested approach Demographics (Geography. Industry. Use status. purchasing policy. size) Personal characteristics of buyers (personal style.

Positioning: Vertical positioning Benefit associated with measurable performance or quality VIP Executive Mid-size Compact .

Vertical positioning Higher level of Higher price feature/performance More is better for some consumers Consumer willingness to pay changes with feature/performance level Lower level of Lower price feature/performance .

lifestyle.Positioning: Horizontal positioning Choice depends on “taste” or “attitude” based on psychographics. or underlying attitude Sedan Price sensitivity not an issue SUV More is not necessarily better for everyone .

Product Augmented product/ service Expected product/service Core Benefit .

sales service feedback Consumers .Place: Channel Manufacturer Creating Fulfilling Pre-sales Market demand demand and after information.

N-Marandi (2010) . Modelling retail sales Revenue Traffic Conversion Basket size Loyalty/repeat rate purchase Location Customer Price Service Brand service Variety Satisfaction awareness Positioning Assortment Post sale- Incentives Incentives Incentives Source: Soman.

33% of aware purchased Years 1 to 5  Kelloggs: 97% Aware.7 mn for Life Source: Dolan (1991) . prepared breakfast Special K had spent $ 4. Agency Secondary data proposed $3. tan-gold colour cereal Concept test appeals to all members of family Two ad campaign designs tested Test market  “Most useful protein”  “Fun of life” Purchasers are larger families with Post launch survey higher income  Year 1: 45% Aware. strongly nutritional.1 mn. Motivation Need for a new cereal research study Crisp. 96% of aware purchased Year 3: On air test 5% remembered ad (benchmark in category= 25%) of new commercial Cereal consumers have no clear distinguishable Consumer panel characteristics Focus group: RTE cereals more tasty but less nutritious attitudinal study compare to hot. 13% of aware purchased Telephone survey  Year 5: 61% Aware.

trial repeat Go/No-go national. consumer attitudes On-air-test Advertising recall Advertising content Panel data Demographic profiles Product positioning Focus group (attitudinal Reactions to products and Advertising content study) advertisements Secondary data Competition advertising expenditure Advertising budget . Awareness. advertising rate approach Surveys Profiles of Life and RTE cereal buyers. awareness.Research technique Data sought Marketing decision assisted Motivation research Consumer preferences Need for new cereal Concept test Preferences for different concepts. Product formulation. repeat buying. Targeting and positioning Consumers’ reason to buy. trial. package benefits and performance design Test market experiment Market share. Product design intention to buy Product test Satisfaction with product attributes. Performance monitoring.