Transcript A Perspective on Marketing Research

Chapter One
A Decision Making
Perspective on Marketing
Research
Essentials of Marketing Research
Kumar, Aaker, Day
Why study Marketing Research
• Careers
– Research Organizations (e.g. A.C. Nielsen,
J.D. Power Associates, IRI, etc.)
– Marketing & Business Consultancies (e.g.
Arthur Andersen, Price Waterhouse,
McKinsey & Co, etc.)
– Marketing Departments of Businesses
– Academia
Essentials of Marketing Research
Kumar, Aaker, Day
Situations where MR knowledge is
essential
• Your boss wants to introduce a new
product and calls you for advice.
• Your ad agency wants your business to
buy an expensive ad campaign.
• Your MR consultants present their findings
about why your sales are falling. Do you
accept their reasons?
• Your boss wants to reduce prices and calls
you for advice.
Essentials of Marketing Research
Kumar, Aaker, Day
Why study Marketing Research
• Universal belief – numbers don’t lie
• Increase chances of taking the right
decision
• Increase confidence in your
recommendations
Essentials of Marketing Research
Kumar, Aaker, Day
What is Marketing Research?
Examples
Gentleness
Pain Relievers
Perceptual Map
 Tylenol
Effectiveness
 Bayer
 Private-label
Aspirin
 Advil
 Anacin
 Nuprin
 Excedrin
Essentials of Marketing Research
Kumar, Aaker, Day
Definition of Marketing
Research
• Marketing research is the
– systematic (pre-planned) and objective
(measurable)
– identification, collection, analysis, and
dissemination of information (information goes
from market to organization)
– for the purpose of improving decision making
(providing factual basis for taking a decision)
– related to the identification of opportunities
and solution of problems in marketing.
Essentials of Marketing Research
Kumar, Aaker, Day
Role of Marketing Research in
Managerial Decision Making
Four Stages of
Market Planning
Situation analysis
Process
Strategy development
Marketing program development
Implementation
Situation Analysis
• The analysis of the environment in which the business
operates
– Market (sector-specific e.g. demand and supply, production, etc.)
– Economy (e.g. money supply, inflation, BOP, interest rates, etc.)
– Consumer and society (buyer behavior, societal trends)
– Technology (obsolescence, innovations, inventions)
– Legal (laws regulating business)
– Political (govt. attitudes to business and specific sectors)
– Natural (effect of natural resources on business)
• Usually focus on trends which impact the marketing situation
Essentials of Marketing Research
Kumar, Aaker, Day
Aspect of business environment?
Interested business?
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Depletion of forest cover
Increased demand for gasoline in China and India
Tough vehicle emission laws in California
Fed drops interest rates by a quarter of a point
Dow Jones rises by 100 points
Consumers increasingly prefer to buy online
Increasing trend in downloading songs from the Internet
Growing popularity of satellite radio
Increased duties on European cars
Essentials of Marketing Research
Kumar, Aaker, Day
Case: MP3 players
• Identify at least one aspect of the external
environment I-Pod would be interested in
researching:
– Economic
– Technological
– Buyer behavior
– Market
– Legal
Essentials of Marketing Research
Kumar, Aaker, Day
Situation Analysis – Common
Marketing Research Questions
Describing the market:
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How big is the existing market?
How big is the potential market?
How fast is the market growing?
How brand loyal is the market?
What competitive products exist?
What is the supply situation in the market?
Essentials of Marketing Research
Kumar, Aaker, Day
Situation Analysis – Common
Marketing Research Questions
Describing an organization’s market
position:
• What market share does the company hold?
• What market segments exist and which do
we serve?
• Who are our primary competitors?
• What opportunities exist with distribution
channels?
Essentials of Marketing Research
Kumar, Aaker, Day
Situation Analysis – Common Marketing
Research Questions
Describing buyer behavior:
• Who are our customers? (i.e., demographic,
geographic, psychographic segments)
• How do buyers perceive our brand and
competing brands?
• What is the repurchase rate for our brand
and competing brands?
• How satisfied are customers with our brand?
• Where do customers buy? When do they
buy? Why do they buy?
• How much do buyers like our brand?
Essentials of Marketing Research
Kumar, Aaker, Day
Role of Marketing Research in
Managerial Decision Making
Four Stages of
Market Planning
Situation analysis
Process
Strategy development
Marketing program development
Implementation
Strategy Development
Market Research Provides Information to
Assist Management With Three Critical
Decisions
• What business should we be in?
• How will we compete?
• What are the objectives for the business?
Essentials of Marketing Research
Kumar, Aaker, Day
Strategy development – Common
Marketing Research Questions
• What business should we be in:
– What products should we offer (e.g. Why did Apple
get into the music business?)
– What technologies should we use (e.g. Should the TV
industry go the plasma monitors way or the LCD
way? Sony Betamax or Toshiba VHS?)
– What market segments should we target (e.g. Under
Armour – serious athletes or even casual athletes?)
– What distribution channels should we use (e.g. Cars –
dealerships or Internet?)
Essentials of Marketing Research
Kumar, Aaker, Day
Strategy development – Common
Marketing Research Questions
• How will we compete
– How do we differentiate ourselves / our
product from competition (e.g. Should Lacoste
be a premium brand or a mass market
brand?)
– What attributes do consumers consider to be
important (e.g. toothpaste – whitening power
or cavity protection?)
– How do we compare to competition (e.g.
Pepsi and Coke – who is winning?)
Essentials of Marketing Research
Kumar, Aaker, Day
Strategy development – Common
Marketing Research Questions
• What our the business objectives
– Sales Profits
– Market share
– Service objectives (Car dealers – low prices
or turnaround times)
– Customer satisfaction (self-survey or actual
complaints)
– Attitudes, etc.
Essentials of Marketing Research
Kumar, Aaker, Day
Role of Marketing Research in
Managerial Decision Making
Four Stages of
Market Planning
Situation analysis
Process
Strategy development
Marketing program development
Implementation
Common Questions
• Segmentation – which segment to target (e.g. BMW –
should they introduce an economy car?)
• Product – How should the product be positioned (Should
Apple I-Pod be a premium brand or a mass market
brand?)
• Distribution – exclusive / mass distribution (Barbie dolls –
should be sold exclusively through Toys’r’us or even in
Walmart?)
• Advertising – what appeals should be used (e.g. Dolce &
Gabbana super low-rise jeans – should they use overthe-top sex appeal in their ads or not?)
Essentials of Marketing Research
Kumar, Aaker, Day
Common Questions
• Personal selling – which customers should be
approached personally (e.g. Epson printers – is
personal selling and option?)
• Price – what price should be charged (e.g.
should Starbucks drop their prices?)
• Branding – how can brand loyalty be increased
(e.g. should Morton salt institute a customer
rewards program?)
• Customer satisfaction – how can it be measured
Essentials of Marketing Research
Kumar, Aaker, Day
Role of Marketing Research in
Managerial Decision Making
Four Stages of
Market Planning
Situation analysis
Process
Strategy development
Marketing program development
Implementation
Common questions Implementation
• Did the marketing program achieve its
objectives (e.g. did the Aflac duck
campaign improve TOMR? Attitudes?)
• Should the marketing program be
modified, continued or terminated (e.g.
The Sonic guys – should the company pull
the campaign?)
Essentials of Marketing Research
Kumar, Aaker, Day
Factors Influencing Marketing
Research Decisions
Yes
Time
Constraints
Is sufficient
time
available?
No
Yes
Yes
Availability
of Data
Is the
information
on hand
Nature of
Decision
Is the
decision of
considerable
inadequate?
importance?
No
Yes
Benefits vs.
Costs
Does the value
of the research
exceed the cost?
No
No
Do not conduct marketing research!
Essentials of Marketing Research
Kumar, Aaker, Day
Conduct
Marketing
Research