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Focus groups were used extensively
in the late 20th century to gather
informal comments and opinions on
products, as shown here in a scene
from the TV show, Mad Men.
a wide spectrum of external factors,
so it is crucial to understand these
to get to their hearts and minds.
Price cutting by competitors, for
example, can divide the customer’s
attention, providing enticement but
also potentially damaging a brand’s
value in the eyes of the consumer.
A business therefore needs to know
how sensitive their existing and
potential customers are to price.
The distribution system, which
determines how products and
services get to potential buyers, is
also a vital aspect to consider. A
business should figure out how to
deliver products and services in a
way that best suits purchasers. The
Internet has transformed how this
happens, and customers now
expect sellers to understand where,
when, and how they want to buy.
Types of research
The state of the economy, level of
interest rates, regulatory law, and
technological change can sway
customers, while social and
cultural forces are arguably the
most important in the marketing
environment. These encompass
gender, life stage, income, trends,
current issues, and the influence of
key individuals in the public eye.
The challenge for the marketer
is finding out how all of these
things influence customers and,
consequently, what motivates them
to buy. The obvious starting point
is to ask questions. This basic
premise developed during the 1960s
and 1970s into a formal process
of question-and-answer known
as market research. Researchers
gathered both quantitative evidence
(from simple questions directed
toward a large audience) and
qualitative evidence (through direct
observation or in-depth discussion
with a small sample of individuals).
Qualitative research is usually
regarded as the more valuable of
the two in getting a grasp of why
a customer accepts or rejects a
product, and in understanding the
realities of customers’ lives.Personalized marketing
Since the 1990s, business has forged
a direct path of communication
with the customer via the Internet.SUCCESSFUL SELLING
Marketers have developed new
strategies for online information
gathering, such as personalized,
or one-on-one, marketing, in which
a single consumer’s interests
and wants can be recorded and
compiled to create a detailed profile.
Psychographic profiling is one
way that marketers attempt to
make sense of diverse consumer
interests, by corralling individuals
with shared interests and
motivations into groups that can
be targeted. Whereas businesses
used to define their customers
demographically, for example as
Baby Boomers or Generation X,
a psychographic profile is much
more detailed. It is put together
by using information about a
consumer’s daily habits; favorite
brands, music, and athletic
personalities; media habits;
leisure activities; vacation
destinations; and much more.
Social media and online
communities have encouraged
people to define themselves by an
ever-more specific set of
characteristics, likes and dislikes.
At the same time, the Internet has
allowed businesses to glean ❯❯Research is formalized
curiosity. It is poking and
prying with a purpose.
Zora Neale Hurston
US anthropologist (1891–1960)