Transcript A Perspective on Marketing Research

A Decision Making
Perspective on Marketing
Research
Why study Marketing Research
• Careers
– Research Organizations
– Marketing & Business Consultancies
– Marketing Departments of Businesses
– Academia
Example: MR organizations in
Charlotte
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
– Economy
– Consumer and society
– Technology
– Legal
– Political
– Natural
• Usually focus on trends which impact the marketing situation
Situation Analysis – Common
Marketing Research Questions
Describing the market:
•
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•
•
•
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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
– What technologies should we use
– What market segments should we target
– What distribution channels should we use
Strategy development – Common
Marketing Research Questions
• How will we compete
– How do we differentiate ourselves / our
product from competition
– What attributes do consumers consider to be
important
– How do we compare to competition
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
• Product – How should the product be
positioned
• Distribution – exclusive / mass distribution
• Advertising – what appeals should be
used
Common Questions
• Personal selling – which customers should
be approached personally
• Price – what price should be charged
• Branding – how can brand loyalty be
increased
• 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
• Should the marketing program be
modified, continued or terminated?
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