Transcript The Nature of Marketing Research

Exploring
Marketing Research
William G. Zikmund
Chapter 1:
The Nature of
Marketing Research
The Nature of Marketing Research
Marketing research is one of the principal tools for
answering questions because it:
• Links the consumer, customer, and public to the market through
information used to identify and define marketing
• Generates, refines, and evaluates marketing actions
• Monitors marketing performance
• Underlines the understanding of marketing as a process
Marketing Research Defined
Marketing research is defined as: the systematic
and objective process of generating information
for aid in making marketing decisions.
This process includes:
•specifying what information is required;
•designing the method for collecting information;
•managing and implementing the collection of data;
•analyzing the results; and
•communicating the findings and their implications.
INFORMATION
REDUCES
UNCERTAINTY
I don’t know
if we should
enter the
Australian
Market.
Marketing Research Types
Basic Research
Applied Research
Basic Research
• Attempts to expand the limits of knowledge
• Not directly involved in the solution to a
pragmatic problem
Basic Research Example
• Do consumers experience cognitive dissonance in
low-involvement situations?
Applied Research
• Conducted when a decision must be made about a
specific real-life problem
Applied Research Example
• Should McDonalds add Italian pasta dinners to its
menu?
– Marketing research told McDonald’s it should not.
• Should McDonald’s add a “Whopper Stopper”
burger to its menu?
– The MBX is now being researched.
Scientific Method
• The analysis and interpretation of empirical
evidence (facts from observation or
experimentation) to confirm or disprove prior
conceptions
Marketing Concept
•
•
•
•
Central idea in Marketing
Evolved over time
Not Production-Oriented
Marketing-Oriented
Marketing Concept
Consumer
Oriented
Long Run
Profitability
Cross-Functional
Effort
Keeping Customers and Building
Relationships
•
RELATIONSHIP MARKETING - the idea that a major
goal of marketing is to build long-term relationships with
the parties who contribute to the company’s success.
– Marketers want customers for life.
– Managing the relationships that will bring about additional
exchanges
Total Quality Management
• Much in common with marketing concept
• Focus on integrating customer-driven quality
throughout the organization.
• Stresses continuous improvement
Stages in Developing and Implementing
a Marketing Strategy
• Identifying and evaluating opportunities
• Analyzing market segments and selecting target
markets
• Planning and implementing a marketing mix
• Analyzing market performance
Identifying and Evaluating
Opportunities
Examples:
• Mattel Toys investigates children's desires for play
experiences
• Home cooking is on the decline. Purchase of precooked
home replacement meals is on the rise
• Number of investors trading stock on the Internet is
growing
Analyze Market Segments and
Select Target Markets
Examples:
• Cadillac investigates buyers’ demographic characteristics
• MTV, monitoring demographic trends, learns the Hispanic
audience is growing rapidly
• Sears learns women, age 25-54 with average household
income of $38,000, are core customers. Targets this market
with “softer side of Sears.”
Plan and Implement
a Marketing Mix
• Price: Safeway does a competitive pricing analysis
• Distribution: Caterpillar Tractor Co. investigates dealer
service program
• Product: Oreo conducts taste test, Oreo cookie vs. Chips
Ahoy
• Promotion: How many consumers like “Always Coca
Cola!” slogan?
Analyze Marketing Performance
• This year’s market share is compared to last
year’s.
• Did brand image change after new advertising?
Performance-Monitoring Research
• Research that regularly provides feedback for
evaluation and control
• Indicates things are or are not going as planned
• Research may be required to explain why
something “went wrong”
Determining When to Conduct
Marketing Research
•
•
•
•
Time Constraints
Availability of Data
Nature of the Decision
Benefits versus Costs
Determining When to Conduct
Marketing Research
Time Constraints
Availability of Data
Is sufficient
time
available?
Information
already on
hand
inadequate?
No
Yes
No
Nature of the Decision
Yes
Is the
decision of
strategic
or tactical
importance?
Yes
No
Do Not Conduct Marketing Research
Benefits vs. Costs
Does the
information Yes
value
exceed the
research cost?
No
Conduct
Marketing
Research
Potential value of a marketing research effort should exceed its
estimated costs
Costs
Value
• Decreased Uncertainty
•Increased Likelihood of
a Correct Decision
•Improved Marketing
Performance and
Resulting Higher Profits
•Research
Expenditures
•Delay of Marketing
Decision and
Possible Disclosure
of Information to
Rivals
•Possible Erroneous
Research Results
Global Research
• Marketing Research is increasingly global
• Market knowledge is essential
• A.C. Nielsen - more than 60% international
business
Global Marketing Research
• General information about country - economic
conditions and political climate
• Cultural and consumer factors
• Market and competitive conditions - demand
estimation