Business+&+managment+-marketing

The Role of Marketing

Market Size : Market size can be measured in a number of ways: Market Growth : It refers to an increase in the size of a market over a period of time, usually per year.
 * 1) Customer Base : This measures the total no. of customers.
 * 2) Barriers to entry : This measures the extent of ease to enter the market
 * 3) Location : Some market focus on a particular area, country or region.

Market Share : It refers to an organization's share of the total value of sales of all products within a specific market.

__sales for this business *100__ Total market sales

Market Concentration : It measures the degree of competition within a market by calculating the market share of the largest firms in a market.

Concentration Ratio : The sum of market shares in a market is known as concentration ratio.

Brand leader - The product with the highest market share is called the brand leader.

Market growth - The rate at which total sales in the market are rising each year or falling if growth is negative.

Marketing Defined : According to Chartered Institute of Marketing, " Marketing is the management process involved in identifying, anticipating and satisfying consumer requirements profitably." Nature of Marketing :
 * 1) Marketing is a management process so it requires people to take responsibility for decision making.
 * 2) Marketing involves identifying the needs and wants of customers.This can be done through market research and data analysis.
 * 3) Marketing involves anticipating or predicting what customers might want in the future.
 * 4) Marketing seeks to satisfy the customers.
 * 5) Marketing is about making a profit.

Product oriented Marketing : Marketing used to focus on getting customers to buy the product that businesses felt their clients needed or wanted.

[|http://www.bized.co.uk/educators/16-19/business/marketing/activity/assetled.htm] Market oriented marketing/Consumer oriented marketing : Marketing used to gain a competitive advantage over rivals by focusing on meeting the actual needs and desires of their customers.

Factors that help in deciding whether to adopt a market oriented or product oriented approach :
 * Market : Whether market is of highly technical products or is a mass consumer market
 * Organizational culture :
 * Nature of barriers to entry
 * __HL__** [[image:http://c1.wikicdn.com/i/mime/32/application/vnd.ms-powerpoint.png width="32" height="32" link="http://abhinavchoithram.wikispaces.com/file/view/assetled.ppt"]] [|assetled.ppt]

Social Marketing : According to Philip Kotler, the founder of social marketing, it is any activity that seeks to influence social behavior to benefit target audience and society as a whole.

Commercial Marketing : It focuses on the benefits for the marketer or business.

Asset –led Marketing : Firm uses its own strengths in terms of people, assets and image and will only make those products that use and take advantage of those strengths.

7 P’s of Marketing: 1. Product 2. Price 3. Place 4. Promotion 5. People 6. Processes 7. Physical evidence or physical environment

People : The provision of services relies on the goodwill of all employees.However, people are not consistent and countless factors affect the behavior and motivation of staff. The effectiveness of people in delivering a service may be measured in a number of ways : 1. Appearance and body language 2. Aptitudes and attitudes 3. Feedback 4. Efficiency Processes : Processes in the marketing of services include: 1.Payment Methods 2.Waiting Time 3.Customer Services 4.After Sales care

Marketing in Non-Profit organization :

Marketing in non-profit organization tends to be more informative.Non-profit organizations tend to use social marketing strategies rather than the market –led strategies used by profit seeking organizations.

The main aim of social marketing campaign is not to make a profit at the end but for the public to take action,such as donating money to a specific charity or providing their support in recycling household products. Elements of a marketing plan :

A marketing plan is a document outlining a firm’s marketing objectives and the marketing strategies to be used in order to achieve these objectives.

Marketing plan is likely to include the following 1. SMART marketing objectives(specific, measurable, agreed, realistic and time constrained), such as the expected market share or sales volume within a specific time frame. 2. Methods of market research to be used to identifying target markets. 3. An assessment of the strengths and weaknesses of competitors in the market 4. Outline the marketing mix, such as product design, channels of distribution to be used,anticipated price and promotional strategies to employ 5. Details of the marketing budget 6. Outline of the likely problems that may be encountered and strategies to deal with them.


 * __//Marketing Planning//__**

Marketing planning is a systematic process concerned with devising marketing objectives and appropriate marketing strategies to achieve these goal.It requires the collection and analysis of information about a particular market.

The typical marketing planning process is outlined below : · Marketing audit · Marketing objectives · Marketing strategies · Monitoring and review · Evaluation

__ [|Marketing Mix.ppt]

[|Marketing Mix 1.ppt]

[|The Marketing Mix Activity.doc]

The Marketing Mix__

It is a combination of the element needed to successfully market any product.These elements are commonly known as four P's viz.

1.Product 2.Price 3.Place 4.Promotion

The various types of product are : producer products and consumer products. To maximize profits, a business tends to have a collection of related products,known as a **product line**. Many businesses produce more than one type of product,choosing instead to provide a wide variety known as **product mix**.
 * Product** : A product is a physical good or an intangible service.There are several categories of products.The marketing strategy used will depend on the type of product.


 * Price:** The pricing decision depends on a number of factors:

1.Demand 2.Supply 3.Business objectives 4. Competition 5. Cost of production 6.Corporate image.


 * Place** : It is the term used to describe the ways of distributing products to customers,such as via the internet or in retail outlets.It can also refer to the **channels of distribution** which are intermediaries used to get a firm's products to the consumers.


 * Promotion:** Promotion refers to the strategies used to attract customers to a firm's products.It is usually classified as being either above the line or below the line.The former refers to promotional activities that use mass media whereas the latter refers to use of all other tactics such as packaging,sponsorship and direct mail.


 * People(Customer relations management):**

It involves setting standards for, and training staff to deliver, good customer service.It also emphasizes customer lifetime value(the profitability that can be gained during the lifetime of a positive relationship with customers)rather than the profits made from a single transaction with the customer. Process : It refers to the methods and procedures used to give clients the best possible customer experiences. Physical evidence: It refers to the image potrayed by a business(or perceived by customer) regarding its tangible and observable features. Packaging : It refers to the ways in which a product is presented to the consumer.It is a form of product differentiation.

__**Ethics of Marketing** __ Ethics are the moral principles that guide behavior.Marketing ethics refers to the moral aspects of a firm’s marketing strategies. For e.g., bait and switch marketing techniques are considered to be unethical.Bait and switch is controversial marketing method used to entice customers by advertising deals that are simply too good to be true.Once customers are hooked onto the deal(the bait), they discover that it is no longer available and change to purchasing another more pricey alternative(the switch) from the business.

The factors that affect the ethical approach of a business will depend on the moral principles held by management, the organization and society as a whole. The use of unethical marketing, whether deliberate or otherwise, is a high-risk strategy.Marketing tactics that are misleading or offensive can backfire and make customers boycott the products of a business. Therefore most businesses abide by certain rules for ethical marketing.

The guidelines on ethical marketing in the ethical code of practice help to serve three main functions: <span style="font-family: Symbol; font-size: 18pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 11.0pt; msofareastfontfamily: Symbol; msolist: Ignore;">· <span style="font-family: Calibri; font-size: 18pt; line-height: 115%; mso-bidi-font-size: 11.0pt; msobidifontsize: 11.0pt;">Identify acceptable business practices · <span style="font-family: Symbol; font-size: 18pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 11.0pt; msofareastfontfamily: Symbol; msolist: Ignore;"> · <span style="font-family: Calibri; font-size: 18pt; line-height: 115%; mso-bidi-font-size: 11.0pt; msobidifontsize: 11.0pt;">Foster internal management and control · <span style="font-family: Symbol; font-size: 18pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 11.0pt; msofareastfontfamily: Symbol; msolist: Ignore;"> · <span style="font-family: Calibri; font-size: 18pt; line-height: 115%; mso-bidi-font-size: 11.0pt; msobidifontsize: 11.0pt;">Avoid confusion regarding what is and what is not acceptable. __<span style="font-family: Calibri; font-size: 18pt; line-height: 115%; mso-bidi-font-size: 11.0pt; msobidifontsize: 11.0pt;">**Marketing Audit** __ <span style="font-family: Calibri; font-size: 18pt; line-height: 115%; mso-bidi-font-size: 11.0pt; msobidifontsize: 11.0pt;">A marketing audit is a systematic review of the current strengths and weaknesses of a firm.It helps to clarify the marketing opportunities and threats facing a business, and allow managers to many any necessary changes to their plan. The review will examine internal and external issues such as: · <span style="font-family: Symbol; font-size: 18pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 11.0pt; msofareastfontfamily: Symbol; msolist: Ignore;"> · <span style="font-family: Calibri; font-size: 18pt; line-height: 115%; mso-bidi-font-size: 11.0pt; msobidifontsize: 11.0pt;">The business’s marketing objectives and strategies · <span style="font-family: Symbol; font-size: 18pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 11.0pt; msofareastfontfamily: Symbol; msolist: Ignore;"> · <span style="font-family: Calibri; font-size: 18pt; line-height: 115%; mso-bidi-font-size: 11.0pt; msobidifontsize: 11.0pt;">The existing products and brands sold by the business · <span style="font-family: Symbol; font-size: 18pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 11.0pt; msofareastfontfamily: Symbol; msolist: Ignore;"> · <span style="font-family: Calibri; font-size: 18pt; line-height: 115%; mso-bidi-font-size: 11.0pt; msobidifontsize: 11.0pt;">An assessment of the effectiveness of the firm’s recent marketing activities.  · <span style="font-family: Symbol; font-size: 18pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 11.0pt; msofareastfontfamily: Symbol; msolist: Ignore;"> · <span style="font-family: Calibri; font-size: 18pt; line-height: 115%; mso-bidi-font-size: 11.0pt; msobidifontsize: 11.0pt;">The firm’s market share(It is rising or falling?Are markets growing?) · <span style="font-family: Symbol; font-size: 18pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 11.0pt; msofareastfontfamily: Symbol; msolist: Ignore;"> · <span style="font-family: Calibri; font-size: 18pt; line-height: 115%; mso-bidi-font-size: 11.0pt; msobidifontsize: 11.0pt;">Competitor analysis · <span style="font-family: Symbol; font-size: 18pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 11.0pt; msofareastfontfamily: Symbol; msolist: Ignore;"> · <span style="font-family: Calibri; font-size: 18pt; line-height: 115%; mso-bidi-font-size: 11.0pt; msobidifontsize: 11.0pt;">An update on the demographic profiles of the firm’s customers.

 The role of market research It refers to marketing activities designed to discover the opinions, beliefs and feelings of potential and existing customers, i.e., it serves to identify and anticipate the wants and needs of customers. There are two main types of market research : Ad hoc market research : It takes place on an ‘as and when necessary’ basis.The focus of the research is on specific marketing problems or issues.Ad hoc research tends to be on a one-off basis. Continuous research :- It takes place on a regular and ongoing basis.Research is carried out over and over, perhaps on a monthly or yearly basis. <span style="font-family: Calibri; font-size: 18pt; line-height: 115%; mso-bidi-font-size: 11.0pt; msobidifontsize: 11.0pt;"> Uses of Market research <span style="font-family: Symbol; font-size: 18pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 11.0pt; msofareastfontfamily: Symbol; msolist: Ignore;"> · <span style="font-family: Calibri; font-size: 18pt; line-height: 115%; mso-bidi-font-size: 11.0pt; msobidifontsize: 11.0pt;"> Gives business up-to-date and accurate information <span style="font-family: Symbol; font-size: 18pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 11.0pt; msofareastfontfamily: Symbol; msolist: Ignore;"> · <span style="font-family: Calibri; font-size: 18pt; line-height: 115%; mso-bidi-font-size: 11.0pt; msobidifontsize: 11.0pt;"> Allows a business to see whether current products meet the needs of the customers <span style="font-family: Symbol; font-size: 18pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 11.0pt; msofareastfontfamily: Symbol; msolist: Ignore;"> · <span style="font-family: Calibri; font-size: 18pt; line-height: 115%; mso-bidi-font-size: 11.0pt; msobidifontsize: 11.0pt;"> Allows businesses to improve their marketing by using a distinct marketing mix for each customer target group <span style="font-family: Symbol; font-size: 18pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 11.0pt; msofareastfontfamily: Symbol; msolist: Ignore;"> · <span style="font-family: Calibri; font-size: 18pt; line-height: 115%; mso-bidi-font-size: 11.0pt; msobidifontsize: 11.0pt;"> Assesses potential customer reactions to a new product by testing it on a small group of customers <span style="font-family: Symbol; font-size: 18pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 11.0pt; msofareastfontfamily: Symbol; msolist: Ignore;"> · <span style="font-family: Calibri; font-size: 18pt; line-height: 115%; mso-bidi-font-size: 11.0pt; msobidifontsize: 11.0pt;"> Gives businesses an understanding of the activities and strategies used by their competitors <span style="font-family: Symbol; font-size: 18pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 11.0pt; msofareastfontfamily: Symbol; msolist: Ignore;"> · <span style="font-family: Calibri; font-size: 18pt; line-height: 115%; mso-bidi-font-size: 11.0pt; msobidifontsize: 11.0pt;"> Help businesses to predict what is likely to happen in the future. <span style="font-family: Calibri; font-size: 18pt; line-height: 115%; mso-bidi-font-size: 11.0pt; msobidifontsize: 11.0pt;"> Drawback of market research <span style="font-family: Symbol; font-size: 18pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 11.0pt; msofareastfontfamily: Symbol; msolist: Ignore;"> · <span style="font-family: Calibri; font-size: 18pt; line-height: 115%; mso-bidi-font-size: 11.0pt; msobidifontsize: 11.0pt;"> Information and findings are only as good as the research methodology used. <span style="font-family: Symbol; font-size: 18pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 11.0pt; msofareastfontfamily: Symbol; msolist: Ignore;"> · <span style="font-family: Calibri; font-size: 18pt; line-height: 115%; mso-bidi-font-size: 11.0pt; msobidifontsize: 11.0pt;"> Data and information can also be inaccurate and unreliable due to bias. <span style="font-family: Symbol; font-size: 18pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 11.0pt; msofareastfontfamily: Symbol; msolist: Ignore;"> · <span style="font-family: Calibri; font-size: 18pt; line-height: 115%; mso-bidi-font-size: 11.0pt; msobidifontsize: 11.0pt;"> The cost of good market research is often very high. <span style="font-family: Calibri; font-size: 18pt; line-height: 115%; mso-bidi-font-size: 11.0pt; msobidifontsize: 11.0pt;"> Primary and Secondary Research: <span style="font-family: Calibri; font-size: 18pt; line-height: 115%; mso-bidi-font-size: 11.0pt; msobidifontsize: 11.0pt;"> Primary research: It involves gathering new data first-hand for a specific study.There are several methods of conducting primary research, such as: questionnaires, observation, experimentation and online surveys. Advantages of primary research : <span style="font-family: Symbol; font-size: 18pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 11.0pt; msofareastfontfamily: Symbol; msolist: Ignore;"> · <span style="font-family: Calibri; font-size: 18pt; line-height: 115%; mso-bidi-font-size: 11.0pt; msobidifontsize: 11.0pt;"> Up to date <span style="font-family: Symbol; font-size: 18pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 11.0pt; msofareastfontfamily: Symbol; msolist: Ignore;"> · <span style="font-family: Calibri; font-size: 18pt; line-height: 115%; mso-bidi-font-size: 11.0pt; msobidifontsize: 11.0pt;"> Relevance <span style="font-family: Symbol; font-size: 18pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 11.0pt; msofareastfontfamily: Symbol; msolist: Ignore;"> · <span style="font-family: Calibri; font-size: 18pt; line-height: 115%; mso-bidi-font-size: 11.0pt; msobidifontsize: 11.0pt;"> Confidential and unique <span style="font-family: Symbol; font-size: 18pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 11.0pt; msofareastfontfamily: Symbol; msolist: Ignore;"> · <span style="font-family: Calibri; font-size: 18pt; line-height: 115%; mso-bidi-font-size: 11.0pt; msobidifontsize: 11.0pt;"> Objectivity Disadvantages of primary research: <span style="font-family: Symbol; font-size: 18pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 11.0pt; msofareastfontfamily: Symbol; msolist: Ignore;"> · <span style="font-family: Calibri; font-size: 18pt; line-height: 115%; mso-bidi-font-size: 11.0pt; msobidifontsize: 11.0pt;"> Time consuming <span style="font-family: Symbol; font-size: 18pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 11.0pt; msofareastfontfamily: Symbol; msolist: Ignore;"> · <span style="font-family: Calibri; font-size: 18pt; line-height: 115%; mso-bidi-font-size: 11.0pt; msobidifontsize: 11.0pt;"> Costly <span style="font-family: Symbol; font-size: 18pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 11.0pt; msofareastfontfamily: Symbol; msolist: Ignore;"> · <span style="font-family: Calibri; font-size: 18pt; line-height: 115%; mso-bidi-font-size: 11.0pt; msobidifontsize: 11.0pt;"> Validity

<span style="font-family: Calibri; font-size: 18pt; line-height: 115%; mso-bidi-font-size: 11.0pt; msobidifontsize: 11.0pt;">Secondary Research: It is also known as desk research.It involves the collection of second-hand dta and information, i.e., the data or information already exists in another form. Advantages of Secondary Research: <span style="font-family: Symbol; font-size: 18pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 11.0pt; msofareastfontfamily: Symbol; msolist: Ignore;">· <span style="font-family: Calibri; font-size: 18pt; line-height: 115%; mso-bidi-font-size: 11.0pt; msobidifontsize: 11.0pt;">If the data or information exists, it is generally cheaper and faster to collect and analyse than primary research. <span style="font-family: Symbol; font-size: 18pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 11.0pt; msofareastfontfamily: Symbol; msolist: Ignore;">· <span style="font-family: Calibri; font-size: 18pt; line-height: 115%; mso-bidi-font-size: 11.0pt; msobidifontsize: 11.0pt;">There is a huge range of sources that the researcher can use, making secondary data usually more accessible than primary data. <span style="font-family: Symbol; font-size: 18pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 11.0pt; msofareastfontfamily: Symbol; msolist: Ignore;">· <span style="font-family: Calibri; font-size: 18pt; line-height: 115%; mso-bidi-font-size: 11.0pt; msobidifontsize: 11.0pt;">Secondary research often provides an insight to changes or trends in whole industry. Disadvantages of secondary research <span style="font-family: Symbol; font-size: 18pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 11.0pt; msofareastfontfamily: Symbol; msolist: Ignore;">· <span style="font-family: Calibri; font-size: 18pt; line-height: 115%; mso-bidi-font-size: 11.0pt; msobidifontsize: 11.0pt;">Second hand data may be out of date <span style="font-family: Symbol; font-size: 18pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 11.0pt; msofareastfontfamily: Symbol; msolist: Ignore;">· <span style="font-family: Calibri; font-size: 18pt; line-height: 115%; mso-bidi-font-size: 11.0pt; msobidifontsize: 11.0pt;">The data or information may be in an inappropriate format for the researcher because it has been collected for another purpose.

<span style="font-family: Calibri; font-size: 20pt; line-height: 115%; mso-bidi-font-size: 11.0pt; msobidifontsize: 11.0pt;">Qualitative market research : It is a form of research that involves getting non-numerical answers and opinions from respondents.It is commonly used as part of primary research.The two main types of qualitative research methods are focus groups and in-depth interviews. Advantages of qualitative research : <span style="font-family: Symbol; font-size: 20pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 11.0pt; msofareastfontfamily: Symbol; msolist: Ignore;">· <span style="font-family: Calibri; font-size: 20pt; line-height: 115%; mso-bidi-font-size: 11.0pt; msobidifontsize: 11.0pt;">It is better than quantitative research to explore the driving(motivators) and restraining forces(demotivators) concerning the behavior and attitudes of employees or customers. <span style="font-family: Symbol; font-size: 20pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 11.0pt; msofareastfontfamily: Symbol; msolist: Ignore;">· <span style="font-family: Calibri; font-size: 20pt; line-height: 115%; mso-bidi-font-size: 11.0pt; msobidifontsize: 11.0pt;">Information gathered from qualitative research can be very rich in depth. <span style="font-family: Symbol; font-size: 20pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 11.0pt; msofareastfontfamily: Symbol; msolist: Ignore;">· <span style="font-family: Calibri; font-size: 20pt; line-height: 115%; mso-bidi-font-size: 11.0pt; msobidifontsize: 11.0pt;">Due to low number of respondents involved in qualitative market research, it can be inexpensive yet provide useful information to the marketing department. <span style="font-family: Symbol; font-size: 20pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 11.0pt; msofareastfontfamily: Symbol; msolist: Ignore;">· <span style="font-family: Calibri; font-size: 20pt; line-height: 115%; mso-bidi-font-size: 11.0pt; msobidifontsize: 11.0pt;">With one-to-one interviews, respondents are not under the pressure of conforming to the views of the majority.This should therefore help to generate more realistic and representative responses. Disadvantages of qualitative research : <span style="font-family: Symbol; font-size: 20pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 11.0pt; msofareastfontfamily: Symbol; msolist: Ignore;">· <span style="font-family: Calibri; font-size: 20pt; line-height: 115%; mso-bidi-font-size: 11.0pt; msobidifontsize: 11.0pt;">Due to the small sample size typically used in qualitative research, the findings cannot be used to represent the whole population. <span style="font-family: Symbol; font-size: 20pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 11.0pt; msofareastfontfamily: Symbol; msolist: Ignore;">· <span style="font-family: Calibri; font-size: 20pt; line-height: 115%; mso-bidi-font-size: 11.0pt; msobidifontsize: 11.0pt;">It can be very time consuming to conduct and interpret the findings. <span style="font-family: Symbol; font-size: 20pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 11.0pt; msofareastfontfamily: Symbol; msolist: Ignore;">· <span style="font-family: Calibri; font-size: 20pt; line-height: 115%; mso-bidi-font-size: 11.0pt; msobidifontsize: 11.0pt;">A high level of interviewing expertise is required to engage and encourage respondents.The cost of hiring skilled interviewers is high. <span style="font-family: Symbol; font-size: 20pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 11.0pt; msofareastfontfamily: Symbol; msolist: Ignore;">· <span style="font-family: Calibri; font-size: 20pt; line-height: 115%; mso-bidi-font-size: 11.0pt; msobidifontsize: 11.0pt;">Interviewer bias can be easily introduced to serve the researcher’s own purpose.If this is the case, the validity of the findings becomes questionable.

Qualitative market research : Unlike qualitative market research, it relies on a much larger number of responses to get ‘hard’ answers(factual and measurable information rather than people’s opinions) to aid statistical analysis.It involves using a representative sample to gauge the views of the population.The methods of qualitative market research are : <span style="font-family: Symbol; font-size: 20pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 11.0pt; msofareastfontfamily: Symbol; msolist: Ignore;">· Closed questions <span style="font-family: Symbol; font-size: 20pt; line-height: 115%; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.0pt; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msobidifontsize: 11.0pt; msofareastfontfamily: Symbol; msolist: Ignore;">· Ranking or sliding scales HL **Quota Sampling** : It is based on market segmentation, i.e., grouping research respondents according to shared characterstics such as their age, gender or occupation.It is the most commonly used sampling method in market research. Advantage : The advantage of using quota sampling is that a relatively representative sample can be obtained quickly and cheaply.The findings will be more reliable than simply asking anyone on a random basis to participate in the research. Disadvantage : The number of people interviewed in each segment and how randomly they are chosen for interview are not always representative of the population. <span style="font-family: Calibri; font-size: 20pt; line-height: 115%; mso-bidi-font-size: 11.0pt; msobidifontsize: 11.0pt;">**Random Sampling** : It is also known as probability sampling.It involves giving everyone in the population an equal chance of being selected for the sample. Advantage: Everyone has an equal chance of being selected so this may help to minimize bias or unrepresentative samples being judgementally selected. Disadvantage : It is indiscriminate, i.e., it may select people who are not part of the target group.

<span style="font-family: Calibri; font-size: 20pt; line-height: 115%; mso-bidi-font-size: 11.0pt; msobidifontsize: 11.0pt;">It is similar to quota sampling in that it involves segmentation.The population is likely to be heterogeneous so needs to be subdivided into segments(known as strata) that share homogeneous or very similar characterstics.However, the difference between quota sampling and stratified sampling is that the latter method chooses a number of respondents from each stratum that is proportional to the population as a whole and then randomly selects them for interviewing.
 * <span style="font-family: Calibri; font-size: 20pt; line-height: 115%; mso-bidi-font-size: 11.0pt; msobidifontsize: 11.0pt;">Stratified Sampling : **

<span style="font-family: Times New Roman; font-size: 16pt; mso-bidi-font-size: 12.0pt; msobidifontsize: 12.0pt;">**Cluster Sampling** : It is used when getting feedback from respondents involves too much time, traveling or money.For eg. For a multinational it is more cost effective to select several geographical areas (known as clusters) and then randomly interview people within each of the chosen clusters instead of randomly interview people across all the countries that it operates in.

Advantages :

It is quicker, easier and cheaper than other methods of sampling if the population is widely dispersed over different geographical areas.

Disadvantage :

The main drawback of using cluster sampling are bias and sampling error.By selecting and using just a few locations, the results may be biased because people living in the same area are likely to share homogeneous views or characterstics, such as lifestyle and social status. Snowballing : It refers to surveys or interviews carried out with individuals who then suggest other friends, family or colleagues to increase the sample. Advantage: It is cheap to get hold of the research subject’s contact details. Disadvantage: It is extremely difficult to make unbiased estimates from the sample.

There are two types of errors when using sampling.The first is non-sampling error and the second is sampling errors.
 * <span style="font-family: Calibri; font-size: 18pt; line-height: 115%; mso-bidi-font-size: 11.0pt; msobidifontsize: 11.0pt;">HL **

Non –Sampling error : The errors caused by human error or human behavior is known as non-sampling error.These arise from the researcher’s mistakes in recording, processing or analyzing data.Moreover these occur because respondents do not always give truthful and honest responses. Sampling error : The second type of error is known as sampling errors and these arise from mistakes made in the sample design.Sampling errors may arise from many different sources: <span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msofareastfontfamily: Symbol; msolist: Ignore;">· The sample size is too small to get statistically valid responses within the desired confidence levels and margins of error. <span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msofareastfontfamily: Symbol; msolist: Ignore;">· The sample selected is not representative of the population. <span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msofareastfontfamily: Symbol; msolist: Ignore;">· An inappropriate sampling method is used. <span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msofareastfontfamily: Symbol; msolist: Ignore;">· There is a bias present in the research

Market segmentation : It is the process of splitting a market into distinct groups of buyers in order to better meet their needs.The main method of market segmentation are based on demographic, geographic and psychographic factors.
 * Market segmentation and consumer profiles: **

<span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msofareastfontfamily: Symbol; msolist: Ignore;">· Age groupings <span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msofareastfontfamily: Symbol; msolist: Ignore;">· Gender <span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msofareastfontfamily: Symbol; msolist: Ignore;">· Race and ethnicity <span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msofareastfontfamily: Symbol; msolist: Ignore;">· Marital status <span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msofareastfontfamily: Symbol; msolist: Ignore;">· Religion <span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msofareastfontfamily: Symbol; msolist: Ignore;">· Language <span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msofareastfontfamily: Symbol; msolist: Ignore;">· Income and socio-economic class
 * Segmentation by demographics : **

<span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msofareastfontfamily: Symbol; msolist: Ignore;">· Location <span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msofareastfontfamily: Symbol; msolist: Ignore;">· Climate <span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msofareastfontfamily: Symbol; msolist: Ignore;">· Status <span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msofareastfontfamily: Symbol; msolist: Ignore;">· Values <span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msofareastfontfamily: Symbol; msolist: Ignore;">· Culture <span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msofareastfontfamily: Symbol; msolist: Ignore;">· Hobbies and Interest These are the characterstics of customers and consumers in different markets such as their age, gender, income and purchasing habits.
 * Segmentation by geographic factors **
 * Segmentation by psychographic factors **
 * Consumer Profiles: **

Advantages of Segmentation: <span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msofareastfontfamily: Symbol; msolist: Ignore;">· Better understanding of customers <span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msofareastfontfamily: Symbol; msolist: Ignore;">· Increase Sales <span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msofareastfontfamily: Symbol; msolist: Ignore;">· Growth opportunities <span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msofareastfontfamily: Symbol; msolist: Ignore;">· Gives support to product differentiation It refers to the market segments that a business wishes to sell to.Appropriate marketing strategies are then developed for these target markets.There are three broad targeting strategies that a business can use: niche marketing, mass marketing(undifferentiated)or differentiated marketing
 * Targeting : **

Niche Marketing: It is also known as concentration marketing.It targets a specific and well-defined market segments Adv. of Niche Marketing <span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msofareastfontfamily: Symbol; msolist: Ignore;">· There is better marketing focus since a specified market segment is being targeted. <span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msofareastfontfamily: Symbol; msolist: Ignore;">· Since there is less competition so business can charge higher prices for their exclusive products. <span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msofareastfontfamily: Symbol; msolist: Ignore;">· Firms become highly specialized in meeting the needs and wants of their niche target market.

Disadv. Of Niche marketing <span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msofareastfontfamily: Symbol; msolist: Ignore;">· Most niche markets are very small and hence this limits the number of customers in the market. <span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msofareastfontfamily: Symbol; msolist: Ignore;">· Due to small market size, businesses operating in niche markets have very few opportunities to exploit economies of scale. <span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msofareastfontfamily: Symbol; msolist: Ignore;">· Highly successful and profitable niche markets may attract new entrants into the industry. Undifferentiated Marketing It is also known as mass marketing or market aggregation.It is the strategy that ignores targeting individual market segments.Instead, a large no. of different market segments are targeted in order to maximize sales volume. Adv. <span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msofareastfontfamily: Symbol; msolist: Ignore;">· Huge potential economies of scale from being able to supply products in mass market. <span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msofareastfontfamily: Symbol; msolist: Ignore;">· No need for different marketing mixes for different segments since whole market can be addressed with a single marketing campaign. <span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msofareastfontfamily: Symbol; msolist: Ignore;">· Catering for larger markets also means that the business can establish a bigger customer base in order to earn more profits. Disadv. <span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msofareastfontfamily: Symbol; msolist: Ignore;">· It is not suitable for all businesses because there are high entry barriers for mass production. <span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msofareastfontfamily: Symbol; msolist: Ignore;">· Competition can become quite fierce as customers must be persuaded to buy the firm’s product rather than to buy from a rival business. <span style="font-family: Symbol; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol; msobidifontfamily: Symbol; msofareastfontfamily: Symbol; msolist: Ignore;">· Since there is lack of focus, mass marketing can be quite wasteful as specific customers are not being directly targeted.