Lesson 3: marketing research

Reading:

Managers cannot always wait for information to arrive in bits and pieces from the marketing intelligence system. In order to identify marketing opportunities and threats, they often require formal studies of specific situation. In this case they often commission formal marketing research. Most common research activities are measurement of market potentials, market-share analysis, market segmentation and sizing, sales analysis, price sensitivity assessment, advertising and promotion assessment, competitive product studies, concept development and existing product testing. In the early 1980s, Hardee's fast-food chain knew it was not respond­ing to customer needs. Extensive consumer perception surveys were conducted. The results showed that customers were confused about what kind of a chain Hardee's was. Research results also showed that the chain needed to improve its service and ambiance. Hardee's responded with a new positioning statement, upgraded equipment, and redesigned the hamburger manufacturing process. Soon the situation improved. When a company starts a project without necessary marketing research, it often ends in a disaster. A sad example of such kind was a project initiated on the US Indian reservations. A total of 52 hotels were built and only two survived due to poorly conceived plans. In several cases, hotels were built in seldom visited, remote areas. Marketing research could have provided valuable information such as visitor trends to the areas, identification and size of possible market segments.

Most large companies (about 73%) have their own research departments. But even companies with their own departments hire outside firms to do fieldwork and special tasks. Small hotels or restaurants can obtain research help from nearby universities or colleges with business or hospitality programs. College marketing classes can be used to do exploratory research, find information about prospective customers, and conduct customer surveys. Instructors often arrange for their classes to gain marketing research experience in this way.

 

 

Exercises:

1. Find in the text the following topical words and phrases, make sure hat you are able to explain in English what they mean, and add hem to your working vocabulary:

concept development, price sensitivity assessment, a positioning statement, exploratory research, a prospective customer, a customer survey, fieldwork.

 

2. Write out from the text the sentences or their parts which contain the allowing words and phrases and translate them into Russian:

in bits and pieces, to commission a formal research, ambiance, to upgrade equipment, visitor trends, instructors.

 

3. Answer the following questions using the topical words and phrases:

1. What are the most common fields of marketing research?

2. Why did Hardee's decide to conduct consumer perception survey?

3. What were the findings of the research and what was done to solve the problems?

4. What lesson does the case of US Indian reservations teach the marketers?

5. Who usually conduct marketing research?

6. How can local colleges help small hospitality companies who need marketing information but have no MISs of their own?

 

LESSON 4: REVIEW EXERCISES

Exercises:

1. Discuss the following concepts and notions:

observation, a survey, an experiment, a structured and unstructured interview, information-based economy, guest comment cards, a disguised shopper, an economy hotel.

 

2. Give your definitions of the following topical words and phrases:

front-desk reports, cash flow, a matched group of people, a performance report, update, a mega shift, an on-the-spot decision, an incident report, a sales blitz, to alert smb, career expectations, a consumer perception survey, price sensitivity assessment, to rate high (low), to skew the results, invasion of privacy.

 

3. Choose a topic for an Essay from those given below:

1. Explain why defining the problem and research objective is often the hardest step in the research process.

2. The advantages and disadvantages of using guest comment cards.

3. Which type of research would be the most appropriate in the following situations and why? (a) McDonald's wants to investigate the effect that children have on the choice of meals, (b) Hilton wants to gather information on how business travelers feel about food service in its restaurant.

 

UNIT 8.

 

 

GROWTH AND MANAGEMENT OF HOSPITALITY BUSINESSES