Cynthia C. Cutright

Marketing and E-Marketing Fundamentals

Image by Jaap Steinvoorte via Flickr

There is much debate as to whether traditional marketing fundamentals can be applied to e-marketing. The answer varies from marketer to marketer. I, however, believe that traditional marketing fundamentals can and should be applied to e-marketing as outlined in this report. Marketing contains products and services that are offered for a fee. Said products and services must be conveyed to the buyers by a method of delivery. Promotion and advertising retain a significant share of the procedure these days. (Internet marketing strategy, 2005)

The micro-environment directly influences an organization. In a live chat Joe Melle states that the micro-environs consist of dealers either directly or indirectly, purchasers and end users, and additional interested parties. The micro-environment designates the association between organizations along with the forces influencing marketing.

The macro-environment consists of uncontrollable elements that affect the business. These external factors include laws, culture, politics, economies, technology, competition, and demographics. This broader environ is continually transforming causing the business to adapt and offset the transformations. (The marketing environment, 2010)

A SWOT analysis is used to assess the environs of the business as the principal phase in preparation, which allows marketers to concentrate on vital concerns. SWOT is the acronym for strengths, weaknesses, opportunities, and threats. An interior analysis identifies strengths and weaknesses. The exterior analysis also known as the environmental analysis identifies opportunities and threats.

The marketing strategy process begins with the marketing mix. The marketing mix is a set of controllable, tactical marketing tools that the organization blends to produce the result it wants in the target market. The four P’s of marketing are product, price, promotion, and place. Product refers to the goods or services offered to the target market to satisfy its needs. This consists of what is done to create an appealing product to the end user. Product resolutions include branding, warranty, quality, safety, packaging, support, and functionality. Price consists of the amount of money the customer has to pay to obtain the product or service, along with any non-financial costs such as time, hassle, and convenience, among others.

Promotion refers to those activities that communicate the merits of the product or service and persuade the consumer to purchase it. Such activities include mass selling (advertising and publicity), sales promotion (contests, coupons, freebies), and personal selling (direct contact with potential customer). The key is to ensure that the forms of promotion are properly integrated so that they all communicate the same image and message.

Place includes everything the organization does to make its services available to the target consumer. This involves deciding where the target customers are to sell them the product and how to attract them. “Place also includes the channels of distribution or the middlemen used to get the product to the customer, market coverage, logistics, inventory management, warehousing, distribution centers, order processing, transportation, and reverse logistics” (The marketing mix, nd.).

Target market, customer characteristics, and consumption behaviors are influenced by the value proposition, product dimensions, positioning, targeting, and brand value. Value proposition is a statement of why a consumer should buy your product. Product dimensions are basic operating characteristics of products and services such as features and benefits. Positioning is the creation of an image for the brand, product, and company in the mind of the consumer. Positioning is the consumers’ perception. Targeting determines who to market to. Brand value is the core values and qualities that sum up a brand or product. (CTUOnline, 2010)

An example of a “traditional” marketing agency is The Phelps Group in Santa Monica, California. They are leaders in integrated marketing services for healthcare, financial, retail, home & garden, travel & tourism, telecommunications, and technology industries. Their services include print advertising, billboards, television, direct, promotions, collateral, consumer ads, trade ads, public relations, and brochures. In the health industry Phelps specifically utilizes print, billboards, and television.

TopRank Online Marketing based in Spring Park, Minnesota is a good example of an online marketing agency. TopRank services include search engine optimization, online public relations, social media marketing, and email marketing.

 

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Data Collection and Analysis

Image by Ikhlasul Amal via Flickr

Up until now, all data collected for the Cedrone family has been primary data. primary data is researcher collected via questionnaires, interviews, focus groups, observations, diaries, portfolios, and case studies. Although the most difficult to design, questionnaires are the most popular method of data collection, as with any other data collection method questionnaires come with advantages and disadvantages.

The advantages of using questionnaires are the ability to post, email, or fax them; they can cover a wide array of people; they are inexpensive to develop and use; require no prior agreements, eliminates participant embarrassment; and no interviewer bias. Disadvantages are design; simplistic questions; low response rate; time delay; assumes literacy; incomplete answers; and the participant may review the questionnaire before deciding to participate.

Given that the Cedrone parents would like to know their current customers opinions on the business and whether they think changes should be made questionnaires would be the most effective method for obtaining the information. Questionnaires can be handed out with purchases or they can be mailed to those customers whose addresses are known.

Due to the Cedrone parents’ reluctance to commit to allocating funds for research secondary data will also be collected for comparison purposes. Secondary data is information that has already been compiled by someone else for different purposes and can be internal or external. The secondary data can come from a marketing organization, company reports, or government statistics. When collecting secondary data one must consider the source and geographic location. One must also determine if the data is outdated and if it is comparable to the primary data.

There are many paper-based sources for collecting secondary data such as books, journals, periodicals, indexes, and annual reports. Electronic sources include CD-ROMs, on-line databases, Internet, videos and broadcasts. Government and businesses are also sources for collecting data. Secondary data also has its advantages and disadvantages. Some advantages are less expensive to gather; unobtrusive; allows for covering a wider geographic area; and it does not exhaust good-will by recollecting available data. Disadvantages are the ability of the researcher that compiled the data; poor documentation; confidentiality; and the purchase cost.

Secondary data for the Cedrone’s can be gathered from Main Street Newton’s Economic Development webpage. The webpage has all of the demographic and spending information needed on ethnic populations as well as for the population as a whole:

 

• Population - 28,236
  • White - 25,881
  • Black - 936
  • American Indian and Native Alaskan - 35
  • Asian - 721
  • Hawiian and Pacific Islander - 10
  • Other - 336
  • More – 317
  • Male - 13,803
  • Female - 14,433
• Income - $ 92,397 median
• Household by income, children, size
• Employment by status, class, and occupation
• Transportation by number of vehicles, travel to and from work
• Consumer Expenditures (specialty food store) $ 1,719,251
• Retail Sales (specialty food store) $ 4,613,902
  

Additional secondary data on business patterns in Newton are available from the U.S. Census Bureau. The data is listed by zip code (07860) and industry (retail > supermarkets & other grocery). It can be used to pinpoint area competitors and can be compared to surrounding towns, provinces, and zip codes. Within the town of Newton there are only four (4) establishments in the afore mentioned segment.

Researchers will conduct secondary research first through Main Street Newton’s Economic Development and the U.S. Census Bureau. Main Street Newton’s Economic Development was chosen as a source due to their comprehensive revitalization focus and current statistical analysis. U.S. Census Bureau complements Main Street with its comprehensive business pattern analysis per zip code. Research into Newton, NJ began at the American Marketing Association’s Secondary Data Sources site, which lists twenty reputable secondary marketing research sources.

After completing the secondary research our researchers will then conduct primary research by means of a questionnaire that is being developed. The secondary research lays the groundwork and the primary research helps fill in the gaps. By using both types of market research, the Cedrone family will get a well-rounded view of their market and have the information they need to make their next big business decision.

REFERENCES

2007 Zip Code Business Patterns (NAICS). (2007). Retrieved March 11, 2010, from U.S. Census Bureau: http://censtats.census.gov/cgi-bin/zbpnaic/zbpsect.pl

August 2009 Demographics. (2009, August). Retrieved March 12, 2010, from Main Street Newton’s Economic Developmen: http://www.mainstreetnewton.org/wp-content/uploads/demographic-gap-analysis-8-09.pdf

Cooper, D. R., & Schindler, P. S. (2006). Marketing research. New York, NY: McGraw-Hill/Irwin.

Secondary Data Sources. (n.d.). Retrieved March 11, 2010, from American Marketing Association Marketing Power: http://www.marketingpower.com/Community/ARC/Pages/Research/SecondaryData/default.aspx

 

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Keys Going Social

Keys to consider when developing a social media program for your business, your brand, or your clients.

1. Audience Identification
2. Platform Development & Design
3. Brand Campaign Integration
4. Content Creation/Coordination
5. Goal Mapping
6. Brand Identity/Purity
7. Audience Generation
8. Social Media Listening
9. Community & Social Responsibility
10. Internal/External Community Engagement & Response
11. Brand Advocacy
12. Customer Service

A good place to start? Channel V Media

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Ethics in Marketing Research

Research for the Cedrone family is complete and I have considered making a niche in the privately owned family sector of the business community. Standard data collection methods were employed to collect a considerable amount of information on the ethnic population in a fairly large and growing demographic area. I have also considered using the information collected for the Cedrone family to solicit new clients in similar industries in the same geographic location, which would make the most of the collected data. However, these considerations beseech one to examine the ethics of the situation; therefore, I will endeavor to answer the following questions:

• Am I disclosing information that was gathered for a specific purpose and client?
• Should I be allowed to use the information that was collected specifically for the Cedrone account for my own gain?
• What did I disclose to my participants when collecting the data as to the use of the information collected?
• Could this violate the participants’ right of privacy if I use the information for another purpose after possibly disclosing that it was being used for a bakery business?

First, we must explore the definition(s) of ethics. Ethics, as pertains to most people, are rules that make a distinction between right and wrong; however, the more prevalent definition defines ethics as norms of conduct that makes a distinction between acceptable and unacceptable behavior. Ethics are not laws to adhere to although repercussions can occur when one chooses the unacceptable behavior over the acceptable. This happens because all people recognize that some common ethical norms exist but each individual interprets them differently thus the need for having and adhering to a standard code of ethics in marketing research.

Examples of this need can be found among the various marketing and research associations. The Marketing Research Association’s (MRA) Code of Marketing Research Standards was established to ensure that MRA members conduct research in an honest and ethical manner; Instill confidence in research to encourage public cooperation; Instill confidence that research is done in a professional and fair manner; Provide members with guidelines that lead to research being conducted in accordance with scientific, statistical and proven practical methods; Carry out every research project in accordance with the Code; Respect the general public and its rights” (The code of marketing research standards, 2007). In addition to MRA members adherence to the code they also encourage non-members to familiarize themselves with this Code to facilitate their dealing with MRA members and to use as an educational tool.

The American Marketing Association (AMA) commits to promoting the highest standard of professional ethical norms and values for its members (practitioners, academics and students). First, and foremost of the AMA’s ethical norms and ethical values is to do no harm. With this one statement as a guidepost, we can now distinguish between acceptable and unacceptable behavior.

When conducting marketing research three groups are involved in the process. The sponsor, the researcher, and the participant. Each group is provided certain rights during and after the research. Among these rights are privacy, motivation, quality, and safety.

The sponsor’s right to privacy is sponsor nondisclosure, which is when the sponsor restricts revealing for who the research conducted. Purpose nondisclosure is another privacy right that protects revealing the purpose of the research. The sponsor’s remaining privacy right is findings nondisclosure, which is when the sponsor restricts the researcher from discussing the research findings with others. The sponsor also has a right to quality research that is appropriate and valid. Knowing what the sponsor’s privacy rights are, the questions of “Am I disclosing information that was gathered for a specific purpose and client?” can be answered as yes. Should I use the research information and findings that was collected for the Cedrone’s I would be violating their purpose nondisclosure and findings nondisclosure.

The researcher has a right to privacy, which is their protection of proprietary methods. The researchers’ right to motivation rests with the absence of a Request for Proposal (RFP) when a supplier has been selected. The right to quality is the absence of sponsor coercion in research design and reporting. Lastly, the researcher and team members have a right to personal safety.

The privacy rights of the participant are the explanation of their rights and protections, supplying informed consent, and the explanation of their right to refuse to participate. It is preferred that these rights be outlined and given to the participant as well as having them signed. The participants’ motivation rights are an explanation of the intended use of the data collected, the explanation and delivery of benefits of participation, and to be debriefed after participation has taken place. The participant also has the right to personal safety, the right to confidentiality from the sponsor, third parties, and the public in general. Further safety rights are to not be deceived or coerced into participating, and the right to source confidentiality. Now we can answer the questions of “What did I disclose to my participants when collecting the data as to the use of the information collected?” and “Could this violate the participants’ right of privacy if I use the information for another purpose after possibly disclosing that it was being used for a bakery business?” The participants were informed that information was being gathered for a local bakery but not which bakery. Therefore, if the collected data was reused the participant would then be deceived. It would not, however violate the participants’ rights to privacy as mentioned above.

The remaining question left that must be answered is “Should I be allowed to use the information that was collected specifically for the Cedrone account for my own gain?” The answer is no, I should not be allowed to use this data for my own gain. If I use the research information and findings that was collected for the Cedrone’s I would be violating their purpose nondisclosure and findings nondisclosure. Further, because the participants were informed that information was being gathered for a local bakery deception takes place if the collected data was reused for another sponsor. In addition, it is not likely that the same data gathered pertaining to a bakery would be relevant to other businesses in and around Newton. Should the data be reused for another bakery the Cedrone’s right to quality will be diminished.

In conclusion, I have determined that reusing data collected for the Cedrone family would violate sponsor and participant rights. Their rights to privacy, quality, and safety would be violated if the data were reused. Should the data be reused a breakdown of trust in me could follow. So in keeping with the AMA’s lead ethical norm to do no harm I will not reuse the data previously collected for the Cedrone family.

 

References

The code of marketing research standards. (2007, March). Retrieved March 10, 2010, from Marketing Research Association, Inc. http://www.mra-net.org/resources/documents/ CodeMRStandards.pdf

Statement of ethics. (n.d.). Retrieved March 10, 2010, from American Marketing Association Marketing Power: http://www.marketingpower.com/AboutAMA/Pages/Statement%20of%20Ethics.aspx

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Problem Statement and Research Questions

When embarking upon a new market research project one must first identify or discover the dilemma that management is facing. The dilemma is typically an underlying symptom of an actual problem such as declining sales, rising costs, defective products or equipment, or a “growing fad with staying power” (Cooper & Schindler, 2006). Considering Cedrone's Bakery, the dilemma is lack of growth.

Once the dilemma has been identified the management-research question hierarchy process begins; this is the process of developing a series of questions that leads from the dilemma to defining measurement questions. The first of the hierarchy of questions is the management question(s). The management question(s) is a restatement of the dilemma in a question format. Again, for Cedrone’s Bakery the dilemma is lack of growth, therefore, the following management questions would apply:

1. Why is Cedrone’s Bakery experiencing a lack of growth?

2. What has changed internally to cause a lack of growth?

3. What has changed externally to cause a lack of growth?

Note that the definition of the management question(s) set the stage for the marketing research. An ill-defined management question will send the research process off course. 

With the management question(s) defined the second question in the hierarchy to define is the research question(s). The research question(s) is a hypothesis that focuses the researcher’s attention on the objective. The objective of Cedrone’s Bakery is to discover why the business has ceased to grow. The following hypotheses for the research question(s) apply to Cedrone’s:

1. Cedrone’s Bakery has ceased to grow due to the exit of the Italian culture from the Newton.

2. Cedrone’s Bakery has ceased to grow due to the influx of diverse non-Italian cultures residing in Newton.

3. Cedrone’s Bakery has ceased to grow due to lack of adapting to the needs and wants of the diverse residents of Newton.

The next question in the hierarchy is the investigative question(s). The investigative question(s) are what the researcher must answer in response to the research question(s). The investigative question is what the researcher believes must be known to reach a conclusion about the management dilemma.

Finally, the hierarchy ends with the measurement questions. The measurement questions are the questions that participants in marketing research are asked or what is specifically observed in a research study.

In conclusion, the dilemma for Cedrone's Bakery is lack of growth. Utilizing this problem statement the management-research question hierarchy process defined the management question and the research question while providing guidelines for the investigative question as well as the measurement questions.

 

Reference

Cooper, D. R., & Schindler, P. S. (2006). Marketing research. New York, NY: McGraw-Hill/Irwin.

Mann, D. (2000, March 1). Hitting the market. Retrieved February 17, 2010, from Inc. http://www.inc.com/articles/2000/03/19094.html

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