Marketing experiments and their applications

Marketing Experiments

The world of business is constantly evolving and changing. Where, there is always the need to seek out innovative ways, to increase the overall bottom line. In the case study of the Howard Marlboro Group, they are attempting to decide how to promote the new Raid displays at the different stores. This means examining how each of these displays can affect the customer and the retailer. The best way to determine this is: through the use of test marketing. This is where; you are testing the overall response to the different displays in certain stores. You would then examine how the relevant variables were selected, the treatment of the different levels, the experimental environment, the experimental design, how participants are selected and an analysis of the data. This will provide the greatest insights as to what Raid displays will work most effectively at each store.

Selection of Relevant Variables

To perform a successful test, requires that a standard test marketing survey is conducted. This is when you are using select displays, to determine how each one would test on a larger scale. In this particular situation, you would select the control group. This would be the display that is currently being used. You would then establish three different test displays and compare them to the control group. Once this criterion has been established, the different displays would be set up at stores to reflect particular demographics such as: a display in the wealthier neighborhood would underscore the various attitudes in the community. A total of three displays could be set up in three stores with varying income levels. The way to most effectively test and measure the different responses is: to randomly select participants that come to the display. You would then score their responses to each display based on a scale of one to five (one being the lowest, while five would be the highest). (Cooper, D. & Schindler, 2006, pg. 299)

Treatment Levels

The three different variables would be treated naturally. This is because there needs to be an accurate assessment as to how favorable or unfavorable consumers will view the different displays.

Experimental Environment must be Controlled

The way that the experimental environment will be controlled is through, conducting a sample of all three displays at stores in varying income ranges. This will provide an accurate assessment as to how consumers from each level of the economic spectrum, view the different displays. Ideally, you want to mirror how the displays would appear at an actual location.

Experimental Design

The way that this design will work is comparing the control group (the current display that is used) with the three independent variables (the different displays of Raid). How customers react to the three independent variables in relation to the control group; will speak volumes as to how each of the new displays will be viewed by consumers. The below display illustrates how the survey will be designed at each store.

Raid Store Display Diagram

Consumer Response to New Display

Control Group

Independent Variable

Current Display #1 Display #2

Display # 3

Participants Selected Randomly. Real world environment

Conduct Test

Retest

Analyze Data

Management Decision (Cooper, D. & Schindler, 2006, pg. 278)

Select / Assign Participants

Like what was stated previously, participants will be selected at random mirroring real world situation for each display in the store.

Test / Revise

The way that the research will be revised and tested is: by conducting this sample at three stores of varying income levels each week. Doing this approximately three to four times will provide you with consistent results, to determine which display consumers will find the most appealing. This would encompass a large demographic, by randomly sampling consumers based on the income level of the community that the displays will be located.