Marketing Research Approach

Question

This activity is important because the marketing research approach provides firms with a systematic checklist for making business decisions. The goal of this activity is to demonstrate your understanding of the marketing research approach applied to the development of Fisher-Price's Rescue Heroes.

The Rescue Hero story:

Fisher-Price noticed a societal trend called KGOY (kids are getting older younger) that was impacting the purchase patterns of toys. In response to this trend, Fisher-Price introduced an action figure called Everyday Heroes primarily targeted at children who historically have not used action figures (3- to 6-year-old boys). The company noticed that children in the target market seemed frustrated and gave up playing with the toy because it would fall over a lot. Parents certainly wouldn't want to buy a toy that their children won't like. Marketers decided to put large feet on a new prototype to prevent it from tipping over. The company's research objective was to determine if children preferred the new toy design by measuring the length of play time with the new toy.

Being able to get the new toy to market prior to the Christmas shopping season was a major concern. Also, management had given the marketing team only a limited budget because they weren't convinced the toy could be a success. To test the new prototype quickly, they pulled up their list of families with boys aged 3 to 6 years and invited them to come to play with the new toys where marketers could watch children play.

To quickly test the new prototype, market researchers spent two days watching, through a one-way mirror, groups of 3- to 6-year-old boys play with the new toys in the Play Lab. They recorded behavior, enjoyment level, and length of play time. Researchers also conducted focus groups with the mothers to get their opinions on the new toy, including important factors such as price and promotion.

Following the two days of observation and focus groups, marketing researchers analyzed their findings. Key insights gained were that the children played with the new prototype longer than any toy they had ever tested. Moms were especially enthusiastic about the new toy, but were skeptical about the proposed price and the name "Everyday Heroes." The marketing team presented their findings to their managers.

Based on the analysis, Fisher-Price decided to launch the product in three test market cities with demographics closely resembling the demographics of the United States as a whole. Rather than lower the price point, they decided to offer on-packaging discounts. The new name of Rescue Heroes was accepted. The sales from the test markets were closely watched, and sales exceeded expectations.

Group each stage of the marketing reserach process by the activities that correspond to each stage. Move each label to the correct drop zone box. The notes button next to a label provides more information.
A flow chart shows interconnected 5 steps of the marketing research approach.From left, the steps are as follows:Step 1. Define the problem.Step 2. Develop the research plan.Step 3. Collect relevant information.Step 4. Develop findings.Step 5. Take marketing actions. Each step leads to the next step and step 5 leads back to all the previous steps as feedback to learn lessons for future research.

Answer 1

Sure! Below is the breakdown of how the activities from the Fisher-Price Rescue Heroes story correspond to each step of the marketing research process:

Step 1: Define the Problem

• Fisher-Price's research objective was to determine if children preferred the new toy design and measure the length of playtime with the new toy.
• Identified issues: Children were frustrated with the old toy design because it tipped over easily, leading to short play sessions.

Step 2: Develop the Research Plan

• Planning: The marketing team decided to quickly test the prototype within a limited budget and time constraints due to the concern of launching before Christmas.
• Target Audience: They pulled a list of families with boys aged 3 to 6 years, identifying the appropriate demographic for their research.

Step 3: Collect Relevant Information

• Observation: Market researchers spent two days watching children play with the new toys through a one-way mirror, recording behavior, enjoyment level, and length of playtime.
• Focus Groups: Conducted focus groups with mothers to gather their opinions on the new toy design, price, and promotion.

Step 4: Develop Findings

• Analysis of Findings: Key insights revealed that children played longer with the new prototype than any toy previously tested. Mothers expressed enthusiasm but were skeptical about the price and name.
• Presentation: The marketing team presented their findings to management.

Step 5: Take Marketing Actions

• Decision Making: Fisher-Price decided to launch the product in three test markets with demographics resembling the U.S. as a whole.
• Strategy: Instead of lowering the price point, they opted to offer on-packaging discounts and settled on the new name "Rescue Heroes."
• Monitoring: Sales from the test markets were closely monitored, and they exceeded expectations.

Feedback Loop

• The outcomes of the marketing actions were used to reflect on and inform future research and decisions, highlighting the iterative nature of the marketing research process.

Summary of Activities in Each Step

• Step 1: Define the problem - Identify children's frustration and toy design issues.
• Step 2: Develop the research plan - Formulate a quick testing strategy within budget.
• Step 3: Collect relevant information - Observe playtime and conduct focus groups.
• Step 4: Develop findings - Analyze play patterns and maternal feedback.
• Step 5: Take marketing actions - Launch in test markets, pricing strategy, and branding decisions.

This systematic approach ensures that the marketing decisions made are informed and based on substantial research, which can lead to successful product launches.