Transcript Chapter 1
Marketing Research Audhesh Paswan Chapter 1: The Nature and Role 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 Managers.. • Respond to a problem, • by searching for, and selecting a solution or course of action, • to create value for firm’s stakeholders. Decision/Research Context Customer Groups: Consumers, Employees, Shareholders, Suppliers Controllable Marketing Variables Assessing Information Needs Marketing Research Uncontrollable Environmental Factors Providing Intelligence Information, data Marketing Decision Making Marketing Managers - Decisions regards market Segmentation, Target Market Selection, Marketing Programs/Plans, Performance & Control Decision Making Process Problem Recognition Information Search Problem Analysis Information/data Decision Alternative Evaluation Market Information/data Sources Intuition Authority Decision Making Process Research Experience Information or Data • Secondary Vs Primary • Qualitative Vs Quantitative • Internal Vs External Secondary Primary Anecdotes Experience Case studies Opinions, etc. Focus groups Interviews projection techniques, etc. Census Syndicated data Journals Magazines, etc. Surveys Observations Experiments Tests, etc. Qualitative Quantitativ e 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 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 APPLIED RESEARCH CONDUCTED WHEN A DECISION MUST BE MADE ABOUT A SPECIFIC REAL-LIFE PROBLEM 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, Integrated and Coordinated Effort Marketing Research is a means for implementing Marketing Concepts 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 Marketing Strategy Stage Example of Market Research 1. Identifying and Evaluating Opportunities •Mattel Toys investigates desires for play experiences •MTV, monitoring demographic trends, learns the Hispanic market is growing rapidly 2. Analyze market Segments and Select Target Markets •Cadillac investigates buyers’ demographic characteristics 3. 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 may consumers recall “Always Coca Cola!” 4. Analyze Marketing Performance •This year’s market share is compared to last year’s. 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 Is sufficient time available before a managerial decision must be made? No Availability of Data Yes Is the information already on hand inadequate for making the decision? No Nature of the Decision Yes Is the decision of considerable strategic or tactical importance? No Do Not Conduct Marketing Research Yes Benefits vs. Costs Does the value of the research information exceed the cost of conducting research? No Yes Conducting Marketing Research Determining When to Conduct Marketing Research • • • • TIME CONSTRAINTS AVAILABILITY OF DATA NATURE OF THE DECISION BENEFITS VERSUS COSTS Potential value of a marketing research effort should exceed its estimated costs Costs Value • Decreased Certainty • 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 that 60% international business