Marketing for Managers

BUSM2412
Topic 2: Marketing Research & The
Nature of Value
The Concept of Value
 P ac kag i n g a nd ar t i cul at i ng Va l u e

Value Proposition:

The set of benefits or values that a brand promises

to deliver to consumers to satisfy their needs.
(Kotler and Armstrong, 2013)
T he Nat ur e o f Val ue
 Packaging and articulating value

Value Proposition:

• A good VP must achieve

greater perceived benefit than perceived cost.

• A great VP will achieve

meaningful perceived differentiation from similar offerings.

What might it mean for something to ‘lack a

compelling value proposition?’ What are the signs?
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Basic types of value

Utilitarian value
(Functional)

“Helps me get something done”

“Reaches a tangible outcome”

“Assists in completing a task”

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Basic types of value

Hedonic value
(Psychological/emotional)
“It makes me feel good”

“It’s meaningful”

“It’s fun”

• Sentimental value
• Identity value – Maintenance or development of positive
self-image
• Feelings/experiences money can't buy?

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The concept of value in
Marketing

• Value Proposition:
o How the value is packaged (what combination?)

o How the value is communicated (framing)

o How the value is experienced by the purchaser (subjective)

• Evaluating Value:
o We often talk about ‘a value offer’, as opposed to ‘a product’

o Customer perceived value vs. Value in use

o Customers evaluate value continuously

o Is it solving a meaningful problem?

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 Value Proposition

• “Convenience and great tasting food

• Pizza Hut looks to own
at our fingertips is the trend for 2019
the pizza delivery space
so we [Pizza Hut] have spent a lot of
time getting our app right, getting our and ‘have some fun’ as
technology right and getting our
it takes swipe at rival
loyalty programme in place.”

-- Beverley D’Cruz, Sales and Marketing

Director at Pizza Hut Europe

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Value Propositi on

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Value Propositi on

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Value Propositi on

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Co m pet i t i ve Adv an t ag e and Va l ue

“Competitive advantage grows fundamentally out of value a firm is able to create for its
buyers that exceeds the firm’s cost of creating it. Value is what buyers are willing to pay, and
superior value stems from offering lower prices than competitors for equivalent benefits or
providing unique benefits that more than offset a higher price. There are two basic types of
competitive advantage: cost leadership and differentiation”.

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The Role of Market Research
 Market Research - overview

11/13/2021
Marketing
 Market Research - overview

What is Market Research? (7 min video overview)

11/13/2021
Marketing
 Market Research – Common
Te c h n i q u e s ( P r i m a r y d a t a )

Major Data collection methods Some nuances of data collection

• Survey
• F2F (Face-to-face), internet,
• Observation
mobile, tele, post
• Focus group
• Open vs. closed ended questions
• Interview (depth)
• Self-report vs. observations
• Experiment / simulation
• Qualitative vs. quantitative focus
• Projective techniques
• Response structure
• Company records
• Digital metrics
• Case studies

Marketing
 Market Research – Common
Te c h n i q u e s ( S e c o n d a r y d a t a )

Major Data collection methods

• “Desk research”

• RMIT Library Website

• Academic Journals

• Industry reports

• Google

• News websites (reputable)

• Industry / consultancy
reports (reputable)

Marketing
 Six Steps in the Market Research
Process

1. Define the problem and research objectives

2. Develop the research plan

3. Decide on Research Plan

(Qualitative vs quantitative, primary vs secondary data collection methods)
- Primary data collection (New data you’re generating)
- Secondary research (Desk research; existing data)
Peer reviewed, Industry, Analysts

4. Get problem specific data

5. Analyse the information/data

6. Present findings and conclusions

7. Formulate decisions (alternatives – risk assessed)

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 Pitfalls of market research

Pitfalls may include:

• Poor understanding of the problem (false assumptions)

• Goals and objectives unclear

• Research design dictated by budget

• Inappropriate method

• Inadequate analysis

• Inadequate translation of findings to conclusions

• Inadequate process of formulating strategy alternatives

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Marketing
 Segmentation – Psychographics
of transport choices

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Marketing
Marketing Exercise

The value of a brand

Brand Value of
Dollar Shave
Club
In this marketing exercise and
video, you will gain an
understanding of brand value
and viral marketing.

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 Key Benefits of a Brand

Student Discussion Questions

• What are the key benefits of the razors – as presented in the video – that would
provide the incentive for new consumers to switch from their existing brands
and start ordering through the Dollar Shave Club?

• The founder said his background was in marketing, how important do you think
marketing experience is in becoming a successful entrepreneur?

• How important was the viral video in the success of the firm overall?

• If the founder did not have a standup/acting background, do you think that the
video would become viral?

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Market Research Exercise

Measuring Brand Awareness

Measuring Brand Awareness

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Measuring Brand Awareness

What is unaided awareness?

Unaided awareness is the percentage of respondents aware of
your product, brand, or advertising top-of-mind without being
assisted.

In a survey, respondents might be asked: "What brands of

athletic shoes come to mind?" Respondents will state Nike,
Adidas or other brands open-ended without being aided. The
aggregate number of respondents mentioning each brand
would be your calculated unaided awareness figure.

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Measuring Brand Awareness

What is aided awareness?

Aided awareness is the percentage of respondents aware of your
product, brand, or advertising when asked. In a survey,
respondents might be asked: "Are you aware of Nike athletic
shoes?" Respondents will state yes or no to clarify their aided
awareness of each brand.

Aided awareness questions are only asked if the respondent fails

to mention the brand unaided. The aggregate number of
respondents mentioning each brand would be your calculated
aided awareness figure.
Unaided and aided awareness calculated together will provide a
business a total awareness figure.

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Measuring Brand Awareness

How do you calculate total awareness?

If 63% of respondents are aware of Nike
unaided, and another 31% are aware of Nike
aided, the total awareness of Nike is calculated
to be 94%. 

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 Student Activity

• This activity will simulate how to measure brand

awareness (aided and unaided) of a selected
brand and its key competitors.

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