10. You are the Marketing Vice President and one of your directors has prepared
ID: 2746588 • Letter: 1
Question
10. You are the Marketing Vice President and one of your directors has prepared the following research proposal for your review and approval. Please evaluate the proposal and choose to approve or disapprove it. Justify your answers.
TO: Marketing VP
FR: Marketing Director
RE: Consumer Advisory Panels
Background: Given the dramatic changes that have occurred in our industry since September 11, many of the current marketing programs have not been as effective as in the past in generating new customers and keeping current customers. Previous focus groups and surveys have not provided the answers that we need because new respondents participate each time, limiting continuity from research findings.
Proposal: It is proposed that we organize a group of consumer advisory panels to which we could present product ideas, evaluate competitive products, and discuss issues about advertising, product quality, and customer loyalty. It is proposed that we organize one group of 20 panelists in each of our eight sales regions. Panelist’s compensation will be $150 per 2-hour session, with a session planned every 60 days. Panelists will be selected randomly from our customer base for a one-year period, with new panelists included every six months. These groups will be facilitated by members of the marketing department and recorded for future reference.
Costs: Total annual costs will be $160,000, which will be taken from the $890,000 secondary research budget.
Pilot Test: Two groups will be set up in the closest regions to trial the process and determine its effectiveness. If these first groups are successful, other groups will be organized in 90 days to complete the panels.
I am requesting $20,000 to initiate the first two groups and would like to have both in place within 30 days. Your approval is requested before I begin.
Sincerely,
Chris Jones
Explanation / Answer
TO: Marketing Director
FR: Marketing VP
RE: Consumer Advisory Panels
Before I consider the proposal, I need to know how we measured the effectiveness of current programs. What metrics have we used to assess the effectiveness.
For the proposal presented by you, how are we going to ensure that the customer advisory panels are not biased. And further how do we measure the effectiveness of customer advisory panels.
Total cost as estimated by you is higher than the calculations, which comes out to $ 144,000.
Further the cost to initiate first two groups comes to $ 6000. So I cannot approve $ 20000 for that purpose.
Answers to above mentioned concerns are needed, before I approve $ 6000 for pilot test of two groups.
Sincerely
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