Basic Marketing Research with Excel 3rd Edition by Alvin Burns,Ronald Bush

Exercise 6

Your Integrated Case
The Advanced Automobile Concepts Survey Relationships Analysis
Cory Rogers was very pleased with the way the Advanced Automobile Concepts was shaping up. Celeste Brown, the CMG data analyst, had applied differences analysis using the preferences for the various hybrid models that might be developed, and she had found a unique demographic target market profile for each model. Brown had summarized her findings into a professional PowerPoint presentation that she and Rogers presented to Nick Thomas and his assembled managers just yesterday. The presentation was one of the smoothest possible, and Thomas's development team members became very excited and animated when they realized that Advanced Automobile Concepts had a possibility of five "winner" hybrid model vehicles to work with. In fact, at the end of the meeting, Thomas had decided to go ahead with a preliminary marketing plan for each model.
Thomas informed Rogers and Brown that Zen Motors places a huge amount of emphasis on its communications, investing millions of dollars every year in many different types of advertising to convince prospective customers that the Zen Motors models are the best possible choices. Thomas explained, "Zen does not shotgun its advertising. Everything is based on solid marketing research that reveals the media usage characteristics of each target market. That is why I insisted on including the media usage information in our AAC survey. Zen corporate will most certainly shoot us down if we come to it with any preliminary marketing plan for any hybrid model that does not have advertising recommendations based on media usage research. I did not realize at the time that we would be working on all five hybrid models, but each of my development teams will need whatever media usage findings you can come up with for its particular model."
Rogers and Brown are in a meeting the following day to discuss further analysis for the Advanced Automobile Concepts project. Rogers says, "I recall that we have a lot of detail on the media habits of theAACsurvey respondents. Let's see, it includes favorite television show type, radio genre, magazine type, and local newspaper section. Nick Thomas called this morning and asked if we could have our findings to him inside of a week, so I guess he and his team are moving very fast. Nick also told me that he spoke to the Zen Motors advertising group, and they have strong preferences as to what demographic factors should be used for what media. Nick says that for television, they prefer to use age; for newspaper and television, they prefer to use education; and for magazines, they prefer to use income."
Brown says, "Needs it yesterday, so what is new? Seriously, I can get to it by the end of this week and have it ready to present early next week, assuming no glitches." Rogers concludes the meeting with, "Great, just let me know on Friday morning how it is coming, as I told Nick I will call him on that day to set up the presentation."
Your task in Case is to revisit Case where Celeste Brown (that is, you) used differences analyses to find the unique demographic profiles for each of the five possible new hybrid models.
Case Your Integrated Case
The Advanced Automobile Concepts Survey Differences Analysis Cory Rogers called a meeting with Nick Thomas, and Celeste Brown attended it. At the beginning of the meeting, Rogers's wife called with news that their five-year-old daughter was having a stomachache at school, and he was to pick her up and take her to the doctor. Rogers excused himself, saying, "I am sorry about this, but these things happen when you are a dual-career household. Celeste, sit with Nick for a bit and find out what questions he has about the survey findings. Then take a shot at the analysis, and we'll meet about it tomorrow afternoon. I am sure that Cory Junior will be over his stomach ailment by then."
After meeting for about twenty minutes, Brown understood that the Advanced Automobile Concepts division principals were encouraged by the findings of the survey which indicate that there is substantial demand for the various types of high-mileage hybrid automobiles under consideration. Depending on development costs, prices, and other financial considerations, it seems that any one or a combination of the hybrid automobiles could be viable. The next step in their planning is to identify the target market for each hybrid automobile type under consideration. This step is crucial to market strategy as it is known that the more precise the target market definition is, the more specific and pinpointed will be the marketing strategy. For a first cut at the market segment descriptions, the survey included the following commonly used demographic factors.
? Gender
? Marital status
? Age category
? Education category
? Income category
? Home town size category
While the survey measured the likelihood of buying each hybrid type, Brown learned that Thomas considers preferences to be a better measure, because the hybrid model descriptions included seat size, mpg estimates, and styling notions.
Your task is to apply appropriate differences analysis to your AAConcepts XL Data Analyst data set to determine the target market descriptions for each of the five possible hybrid models.
1. Super cycle one-seat model; 120+ mpg city
2. Runabout sport two-seat model; 90 mpg city, 80 mpg highway
3. Runabout with luggage two-seat model; 80 mpg city, 70 mpg highway
4. Economy four-seat model; 70 mpg city, 60 mpg highway
5. Standard four-seat model; 60 mpg city, 50 mpg highway
1. Use each unique hybrid model demographic profile to determine whether or not statistically significant associations exist, and if they do, recommend the specific media vehicles for radio, newspaper, television, and magazines. Do not forget to use the Zen Motors advertising division's preferred demographic.