Recorded Lecture Marketing Environment Captions
Recorded Lecture Marketing Environment Captions
It's a very structured way of analysing the environment in which your client exists.
So you can start at any point. So in this lecture, I'm going to look from the micro to the macro
environment.
But you can switch it and it really doesn't matter where you start.
So the micro environment is about that level of the environment that's relatively close to the company
itself.
So we might look at CONSED customers within the micro environment and those customers are not just
consumers.
They will include consumers. But our customers might also be other businesses.
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They might be intermediaries like resellers who buy from us and then sell on.
Our customers might also be agencies. So government markets who are purchasing from us.
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So who are our buyers? Who are the consumers, the producers, the resellers and governments
elsewhere who might be interested in what we have to offer?
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So when I'm looking at the micro environment, I'm thinking about all that wide range of customers from
consumers to resellers.
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And in doing so, I'm really trying to get to grips with that trend.
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We now know that they themselves are influenced by a number of macro trends.
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So macro trends are the wider issues that impact on those micro trends.
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And those macro trends really influence their behaviour, how they live, how they feel, how they
communicate and how they how they shop.
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So, for example, if you take a look at this quote here, Hillary was suggest that we're really starting to see
a complete change in consumer behaviour.
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So whereas in the past, there's been a great influence on discounters and price wars.
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Now we're actually starting to see a big increase in consumers with a conscious
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and they are very much aware of ethical issues of diversity and sustainable.
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If this is how consumers are changing, what does this mean for us?
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And last year, a number of key trends were identified which are continuing.
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So these trends are a trend because they develop over a period of time.
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They're not just a, you know, a one off for one month and then that's it.
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It's a elongated pattern of behaviour. So a couple of the consumer trends were 2019, our first of all, the
demand for alternatives to plastic,
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whether that's in terms of packaging or single use, plastic cups, mugs or whatever it might be.
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And in response to that, we did see retailers thinking about how they could encourage consumers to
return their plastics.
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where you get rid of your plastic through these machines, they return it to the store, essentially.
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We're seeing a changing consumer trend towards this idea of not being passive, but instead of rising to
contemporary challenges.
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But most most definitely this idea of protesting against brands, against politics,
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against behaviours which they don't feel it's it's acceptable any longer.
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So the idea of consumers having a voice and using that voice to prompt change is is very evident today.
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Now, I know that you'll be aware of this, particularly as it refers to social media.
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We're seeing consumers increasingly replacing their physical interactions with digital ones.
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And although, to be fair, Kovik, it has very much forced this on us this year.
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But it was happening earlier than that, whereas people had a range of friends on social media.
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The rise in gaming meant that people weren't necessarily going out to play sports and interact with
people,
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but they were gaming at home with, you know, with people all over the world.
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But in a digital space. We're seeing an increase in this idea of total well-being.
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So well-being has been on the consumer agenda for many, many years.
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And we're seeing our interests shift to what we call the microbiome. And that is not worrying.
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Not so much about, you know, shiny hair, healthy nails like teeth.
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It's also about those tiny organisms which are live on or in the body like fungi, bacteria.
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things like what's called sauerkraut and kafia drinks, that sort of thing.
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So a real interest there on the part of consumers. We don't know how long this is going to last.
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We'll keep an eye on it. And then finally, the launch of 5G technology.
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So, you know, a huge interest in the yourself superfast streaming, which is really going to go speed up
society even more.
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So keep an eye on these trends and think about what the current consumer trends are for our seminar.
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I'd like you to think about how you as a marketer might respond to these trends.
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If not, you know what other marketing organisations might need to be concerned about this.
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So think about where we use plastics. Maybe not. The obvious ones are already addressing those.
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But where else are we using plastics? And how might we respond to that?
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Doesn't matter how wild and wacky they are at this point, you're just thinking about how we respond to
the changes that we see around us as marketers.
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Give us some examples. We're seeing this trend of social isolation, which is exacerbated now by covered
social distancing measures.
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What sorts of ways can we respond to that? And then finally, this idea of total wellbeing.
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Focus on the microbiome. You know, where is that really going to make a difference?
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And how are we going to respond to that? OK, so we've looked at the micro environments of the micro
environment in total.
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It's not just customers. It also looks at all competitors and intermediaries.
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So there's a layer of institutions or groups which are relatively close to the organisation.
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They're still outside of the organisation, but they're relatively close, one step removed from that.
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We have the macro environment now. Issues within the macro environment affect every company, not
just our company,
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our customers, but every type of company that you might want to consider.
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So these are very wide ranging issues. Generally national or global issues.
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So they impact us. They impact our competitors. They impact on our customers.
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So what's going on politically and how might this impact upon us?
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They might be technological issues, environmental or ecological issues, and then legal or regulatory
issues.
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So political issues are those very wide ranging macro issues which really influence our marketing
decisions by basically setting the rules.
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So they tell us what we can do, what we can't do. So the most obvious political and legal trend or issue
which is impacting us now is Brexit.
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So what is that going to mean for us? Do we know yet? Are we still waiting to find out?
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So at the moment, you might say, well, actually, it just means a lot of uncertainty because we actually
don't know the absolute outcomes of it yet.
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The other things that you might want to think about were about any E.
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What about regulatory bodies? New rules and regulations about consumer rights?
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So this is particularly prevalent in food safety, for example, or what we'd say on food labelling,
compensation for cancelled flights,
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delayed flights, that sort of thing, but also some national laws covering more general consumer rights
and protection.
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So like a ban of smoking public spaces, a ban on advertising alcohol and cigarettes.
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And certainly there'll be something in there which is going to impact on our clients as they are, you
know, working in the wine industry.
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But in addition to that, we'll also be thinking about some of the regulatory frameworks which impact on
what we do.
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So, for example, we will be interested in the Advertising Standards Authority who really guide or at
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least regulate what we can and can't say when we communicate or promote our products.
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So think about any political and legal issues which are current and also think about.
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The details of them, so what exactly are they? And how exactly might they impact your client?
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And not all of them will. So economic factors really impact our estimates.
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So we really need to know what's going on, the economy. It influences what consumers buy, how much
they spend.
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And it'll also influence spending patterns. So this will have an impact on consumer confidence and their
use of their disposable income.
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So that might impact on, you know, how much disposable impact up income people have and how they
choose to use it.
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We might use a look at interest rates. We might look at income distribution and the availability of
disposable income.
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So disposable income, it's what's left essentially after you've paid for that.
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Those important things like rent and food and whatever it might be.
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So we'll look at some of the issues within the economic environment and we'll focus
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particularly on those which impact your client for the sake of your assessment.
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We are very interested in social trends. So what the society look like.
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Generally. So we might look at understanding different generations, though, the baby boomers,
generation X, the millennials generation,
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said how their behaviour changes according to their age, how they might consume media according to
their age,
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We will look at household and family structure, because all of this impacts your marketing decision
making.
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So trends monitor. For example, there's a link there. You might want to take a look at that on the
Internet.
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So we need to be able to respond to that. We need to be thinking about what a typical household looks
like today.
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You know, and it's no longer 2.5 children. It's much more diverse than that.
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We will also look at cultural differences and cultural differences occur not only between countries, you,
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as you would expect, but also within countries as those subcultures clearly behave in a very different
way.
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And all of this will think about relative to its impact on what we do.
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This idea of consumer a sandwich I introduced you to in the first week is also something that we'll
consider as a wider ranging consumer trend.
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So when we look at technological factors, we're not just saying, well, technology is changing.
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New things are happening all the time. But by looking at particularly new technologies, new products,
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new market opportunities which have which are derived from these changes in technology, and that
could be.
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And the way that we conduct the R&D. So R&D research and development and.
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Research techniques are hugely sophisticated. And I'll talk you through those later in the module.
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Technology will impact the way that we manage our data. One of the things that we know at the
moment is that we are dealing with huge bodies
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of data so much that it's actually very difficult to find your way through it.
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But we can use technology to ask questions of the data and to get answers from the data that will help
us to make stronger decisions.
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Obviously, communications change because of technology and the fast pace of Internet disrupt
dissemination as a result of technological changes.
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So all the changes in the physical environment and natural resources that are going to impact what we
do.
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So we need to be sustainable. We need to think about sustainability and marketing, and we need to put
ethical issues.
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So what does that mean? You know, how do we respond to climate change?
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How do we conserve energy? How do we think about using environmentally friendly components?
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And the most obvious thing here is off sea recycling and non wasteful packaging.
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But we need to go beyond that. And we are starting to see, you know, retailers and marketers changing
a lot in this direction.
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And we measured them and, you know, and we pay for them like that.
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So clearly, when we're starting to think about the environment in which we operate, we need to be
collecting data in order to make those decisions.
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On the one hand, I said that marketing is an art and we could say, well, we're just going to fly by the seat
of our pants.
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Well, that's okay. But that's not going to convince your managing director.
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We also need to be able to really get access to the data that we need.
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So in the next fit of the lecture, I'm going to talk through some of the research methods that we use or
how we collect data.
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So this might be a good point to take a break and look back over the slides so far
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and then come back to slide eleven to look at decision making when you're ready.
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Okay, so when we're starting to collect data, we are looking at marketing information systems and these
are people who do our environmental scanning,
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who understand where our consumers are doing, who track information, who analyse information.
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And then they collect that information and help marketers or, you know, decision makers to use that
information to make good decisions.
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So having a robust marketing information system will help you again to make those that are marketing
decisions.
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So generally and I guess a marketing information system comprises of primary data and secondly, better.
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Secondly, that there's information that already exists and that can come from your analysis of internal
information.
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How successful we are? How well our promotions have run, you know, our marketing information,
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plus external external sources such as periodical periodicals and government publications, reports which
exist but are secondary because we didn't.
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We didn't create them just for our purposes. They were collected for another reason.
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So that's secondary data and primary data is information that we collect specifically to address our own
problem.
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And that could be in terms of observation of customer behaviour, of trends, of whatever it might be or
of service.
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So ironically, if we're conducting research, we'll always do secondary data collection first because it
exists already.
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And it's cheaper. And primary data collection. Second, because we're just using the primary data
collection to fill in the gaps.
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So anything that hasn't been answered through our secondary search and those questions,
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which are very, very specific to our own questions, our own clients.
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Sorry. So when we're looking for information, we look at anything that I hold internally.
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So internal databases, for example, will keep records on how successful a promotion has been.
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Any. Changes resulting from price increase or decreases will use our marketing intelligence with Gartside
to collect information.
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We might use Minitel, for example, and I will give you a list of them market reports which are available
to us at the at you.
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And we also use marketing research. Marketing research might be designed specifically to address our
requirements.
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So here it is, a business rented sales increase or decrease with track visits to Web sites.
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And it gains of legs, one in the module. I'll tell you what we can do here using Google Analytics to track
online behaviour.
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We look obviously at sales and cash flow. We look at inventories and production reports and we'll also
look at point of sale data.
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So point and say point of sale data. So see, supermarkets, for example,
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will collect a lot of information from point sales on which particular products that are going through
frequently, which are less so.
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And if you look at the bar charts on your products that were really is used by marketers to really track
this transaction data.
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Marketing intelligence is about the systematic collection of information about our consumers,
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our competitors and everything else that's going on in the marketing environment.
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So it might be interviews with consumers. So we're doing our own first hand interviews.
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We might do some interviews with our employees. So with our own company employees, we might
benchmark.
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So we look at competitors products. We'll track how well they're doing. We use the Internet.
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We'll see what the word of mouth is saying about us. By monitoring social media buzz, social media
discussion.
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And we'll also get a lot of information by scraping that information, Web sites, blogs,
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forums, social media, again using something like Google Analytics to enable that.
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But also use our own marketing research, and that might be used to specifically identify new
opportunities.
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It might be to identify where the problem is. We might use it to generate some ideas of where we
should go in the future.
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We want to know what makes them tick. So what motivates them? What influences their purchases?
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What influences the degree to which they're satisfied or not with our service or our products?
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We look at our marketing performance and so like our brand awareness, for example,
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and we'll think about how we can improve our marketing in terms of what we are doing in marketing.
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And essentially, when we look at our our assessment, the second part of your assessment is about
improving marketing as a process.
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And although I'm not asking you to conduct first hand marketing research, so no primary research, I
don't have to interview one customers.
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We can use the information that we do have to really get a better idea of what we're doing.
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Well, and Laswell. And part of that is this trend watching essentially.
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So as you do in a grocery shop, as your, you know, checking something on the Internet,
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as you're browsing through magazines, just keep on top of ideas around the wine market.
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you can track these types of products over a period of time so we can see what's happening,
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what people are interested in, where the opportunities are, but where threats are coming as well.
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You know, so a lot of these trends like the term about Tamagotchi, for example.
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So a huge increase, a huge decline. And then strangely came back again.
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But just watch those trends, find out what's going on, and just observe the environment in which you
live.
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this is a much more structured process and marketing research is about potentially working with a client
to identify their problem.
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We designed to put together a body of three Kozel of how we would conduct research to address that
problem.
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We would then go out and collect that data, whether it's secondary or primary, but probably both.
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We will then interpret those research findings and then we'll report those findings back to the client.
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And a client will make their marketing decisions based on those research findings.
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You know, we can't just decide that something is the case because a client is going to put a lot of time,
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money, resources into acting on the advice that you offer in your presentation of your findings.
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So I said the data is that it's secondary and primary secondary data already exists.
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So it's been collected for another purpose, but we're using it as it can help us to set a context and
primary data,
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something that we go out specifically to collect. We design a research proposal, go out and collect data
to address a particular issue that we have.
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So the good thing about secondary better because it's there already.
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Government information. It's cheap. Hey, we can get Holtby quite quickly.
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The disadvantages is not absolutely relevant to my client because it was collected for another client for
another purpose.
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So it's always going to be partial. But that might be enough to get going with.
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So primary later, there are a number of different ways of collecting primary data.
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So, first of all, with the quantitative research. So this answers the question of how many or how much.
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So it's not so much figures. It's about getting insights and understanding and meaning.
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So we might want a focus group. So getting a group of people together to talk about a subject area,
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we might do in-depth interviews where we speak with one consumer with a structured or a relatively
unstructured number of questions.
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And they lead us through their experience of something we might do some ethnographic research,
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And we might do some projective techniques which are so these examples in the corner that we have
left and there's little speech bubbles.
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We might give that to somebody and say, what do you think these different packaging examples are
saying?
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So a couple of examples. Here's an eye tracking the EEG and the MRI scans.
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eye tracking enables marketers to see how people are using a page or a Web site, or we can use eye
tracking technology.
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So people to wear a special pair of glasses in a supermarket to see which part of a shelf they're looking
at first.
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And we can track their eye movements and it will show up as hot spots or cool spots.
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And essentially, you want your product to be in the hot spot, you know, because that's where
consumers are focussing their attention.
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So Ichi's and the brain scans, the MRI scans are very sophisticated use of technology to show up areas of
the
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You've got to be can pretend that you like a project, but actually have no impact on you.
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These are showing up how your brain responds to particular messages or stimuli or.
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Inputs, essentially. OK, so that's very much a potted summary of the sorts of techniques that we can use
for marketing research.
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And we will speak more about these later in the model where we look at marketing research in more
detail.
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So for now to include. It's really important that we're aware of what's going on in the environment,
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environment in which your client operates and responsive to any changes that occur in that
environment.
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So from a wide ranging level to the political, economic, social issues, which is macro,
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macro and the micro level, which is one step closer, it's our own markets, our own customers and
competitors.
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whether that is structured frameworks or the use of various techniques to understand the environment.
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And that should not be a group that should ideally be good. So good data enables good decisions.
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So think about what data you need. How are you going to collect it and how you might wish to use it.