Transcript The Nature of Marketing Research

Exploring
Marketing Research
William G. Zikmund
Chapter 1:
The Nature of
Marketing Research
.
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.
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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
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INFORMATION
REDUCES
I don’t know
if we should
enter the
Australian
Market.
UNCERTAINTY
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Marketing Research Types
Basic Research
Applied Research
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Basic Research
• Attempts to expand the limits of knowledge
• Not directly involved in the solution to a
pragmatic problem
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Basic Research Example
• Do consumers experience cognitive dissonance in
low-involvement situations?
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Applied Research
• Conducted when a decision must be made about a
specific real-life problem
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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.
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Scientific Method
• The analysis and interpretation of empirical
evidence (facts from observation or
experimentation) to confirm or disprove prior
conceptions
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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
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Identifying and Evaluating
Opportunities
Examples:
• Mattel Toys investigates 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
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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.”
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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?
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Analyze Marketing Performance
• This year’s market share is compared to last
year’s.
• Did brand image change after new advertising?
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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”
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Determining When to Conduct
Marketing Research
•
•
•
•
Time Constraints
Availability of Data
Nature of the Decision
Benefits versus Costs
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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
Benefits vs. Costs
Does the
information Yes
value
exceed the
research cost?
Conduct
Marketing
Research
No
Do Not Conduct Marketing Research
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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
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Global Research
• Marketing Research is increasingly global
• Market knowledge is essential
• A.C. Nielsen - more than 60% international
business
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Global Marketing Research
• General information about country - economic
conditions and political climate
• Cultural and consumer factors
• Market and competitive conditions - demand
estimation
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