Transcript A Perspective on Marketing Research

A Decision Making
Perspective on Marketing
Research
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
Example: MR organizations in
Charlotte N.C.
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Leibowitz Market Research-GroupNet Charlotte
Blumenthal Qualitative Research
FacFind, Inc.
KPC Research
20/20 Research
Marketing Analysts, Inc.(Branch)
MarketWise, Inc.
Metromark Focus Research (Branch)
AOC Marketing Research
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 your thoughts.
Why study Marketing Research
• Increase chances of taking the right
decision
• Increase confidence in your
recommendations
• Quantitative research:
– Universal belief – numbers don’t lie
What is Marketing Research?
Examples
Gentleness
Pain Relievers
 Tylenol
Effectiveness
 Bayer
 Private-label
Aspirin
 Advil
 Anacin
 Nuprin
 Excedrin
Definition of Marketing
Research
• Marketing research is the
– systematic (pre-planned) and objective
(measurable)
– identification, collection, analysis, and
dissemination of information (information
collected by organization from market)
– 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.
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
For Toyota Motor Company
Identify the business environment
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Depletion of oil reserves
Increasing GDP 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 prefer a hassle-free, no-bargaining car
buying experience
• Volatile gas prices
• Breakthrough technologies in hybrid cars
• Increased duties on cars imported from Europe
Case: Starbucks
• Identify at least one aspect of the external
environment Starbucks would be
interested in researching:
– Economic
– Technological
– Buyer behavior
– Market
– Legal
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?
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?
• What new emerging segments do we observe
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?
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?
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? BluRay discs or HD DVDs?)
– What market segments should we target (e.g. BMW
– families with kids or wealthy yuppies?)
– What distribution channels should we use (e.g. Cars –
dealerships or Internet or Walmart?)
Strategy development – Common
Marketing Research Questions
• How will we compete
– How do we differentiate ourselves / our product from
competition (e.g. State Farm is the “good neighbor”,
Allstate puts you “in good hands”, GEICO “saves you
15% or more”?)
– What attributes do consumers consider to be
important (e.g. cars – fuel economy or acceleration?)
– How do we compare to competition (e.g. FedEx and
UPS – what are our market shares?)
Strategy development – Common
Marketing Research Questions
• What should be our business objectives
– Sales / Profits
– Market share
– Customer satisfaction (self-survey or actual
complaints)
– Attitudes, etc.
• Which objective is a better indicator of our
health
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.
Ferrari – should they introduce a minivan?)
• Product – How should the product be positioned
(Should Rolex be a premium brand or a mass
market brand?)
• Distribution – exclusive / mass distribution (Dell
computers – should they be sold direct or even
retail?)
• Advertising – what appeals should be used (e.g.
Axe pefumes – should they use over-the-top sex
appeal in their ads?)
Common Questions
• Personal selling – which customers should be
approached personally (Customer Lifetime
Value)
• 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 satisfied are our
customers?
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 GEICO apes – should the company
pull the campaign?)
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
No
Yes
Benefits vs.
Costs
Does the value
of the research
exceed the cost?
No
Do not conduct marketing research!
Conduct
Marketing
Research