Transcript Marketing Research Essentials

Chapter 1
The Role of
Learning Objective
The Role of Marketing Research
in Management
Decision
Making
Marketing
Research
in Management
Decision Making
Copyright © 2000 by John Wiley & Sons, Inc.
CHAPTER
one
Chapter 1
Learning Objective
Learning Objectives
The Role of Marketing Research
1. To review
the marketing
in Management
Decision
Making concept and the
marketing mix.
2. To comprehend the marketing environment
within which managers must make
decisions.
3. To define marketing research.
4. To understand the importance of marketing
research in shaping marketing decisions.
5. To learn when marketing research should and
should not be conducted.
Chapter 1
Learning Objective
The Role of Marketing Research
in Management Decision Making
THE NATURE
OF
MARKETING
To review the marketing
concept and the
marketing mix.
Marketing:
The process of planning and executing the
conception, pricing, promotion, and distribution
of ideas, goods, and services.
The Marketing Concept
(1) a consumer orientation
(2) a goal orientation
(3) a systems orientation
Chapter 1
Learning Objective
The Role of Marketing Research
in Management Decision Making
THE NATURE
OF
MARKETING
To comprehend the
marketing environment.
Identifying Target Markets and Researching
the Marketing Mix: The Opportunistic
Nature of Marketing Research
A marketing mix:
The unique blend of product/service,
pricing, promotion, and distribution
strategies designed to reach a specific
target market.
Chapter 1
Learning Objective
The Role of Marketing Research
in Management Decision Making
THE
EXTERNAL
MARKETING
ENVIRONMENT
To comprehend the
marketing environment.
Altering the marketing mix because of
changes:
• new consumers
• new businesses
• different
• tastes
• needs
• incomes
• lifestyles
• purchasing habits
Chapter 1
Learning Objective
The Role of Marketing Research
in Management Decision Making
THE ROLE OF
MARKETING
RESEARCH IN
DECISION
MAKING
To define marketing
research.
Marketing Research Defined
The planning, collection, and analysis of
data relevant to market decision making and
communication of the results of this analysis
to management.
The Importance of Marketing Research to
Management
• descriptive function
• diagnostic function
• predictive function
The Unrelenting drive for Quality and Customer
Satisfaction
Table 1.1
Chapter 1
Learning Objective
Demographics of Coupon Users
The Role of Marketing Research
in Management Decision Making
Heavy
Medium- Nonuser
(top 20%)
Light
Average household size
3.6
3.2
3.4
Average age female head
43.1
45.2
41.9
Household income ($000)
$30.9
$29.1
$28.7
Female head attended college
51%
50%
52%
Average monthly grocery bill
$334
$292
$303
Female head does not work
outside or works part time
65%
61%
55%
Chapter 1
Learning Objective
The Role of Marketing Research
in Management Decision Making
THE ROLE OF
MARKETING
RESEARCH IN
DECISION
MAKING
To understand the
importance of marketing
research.
The Paramount Importance of Keeping Existing
Customers
Managers Must Understand the Ever-Changing
Marketplace
The Proactive Role of Marketing Research
A proactive management:
• alters the marketing mix to fit newly
emerging patterns in economic, social,
and competitive environments
• new opportunities
• develops a long-run marketing strategy
Chapter 1
The Role of Marketing Research
in Management Decision Making
THE ROLE OF
MARKETING
RESEARCH IN
DECISION
MAKING
Learning Objective
Figure 1.1
Emergent Markets
Chapter 1
Learning Objective
The Role of Marketing Research
in Management Decision Making
THE ROLE OF
MARKETING
RESEARCH IN
DECISION
MAKING
To understand the
importance of marketing
research.
Applied Research versus Basic Research
Basic research hopes to provide further
confirmation to an existing theory or to learn
more about a concept or phenomenon.
Most research undertaken by businesses is
applied research because it must be:
• cost effective
• of demonstrable value to the decision
maker
Chapter 1
Learning Objective
The Role of Marketing Research
in Management Decision Making
DECIDING
WHETHER TO
CONDUCT
MARKET
RESEARCH
To learn when marketing
research should and
should not be conducted.
• A manager faced with several alternative
solutions to a problem should not
instinctively call for applied marketing
research.
• The first decision to be made is whether to
conduct marketing research at all.
• In a number of situations it is best not to
conduct market research.
Chapter 1
Learning Objective
The Role of Marketing Research
in Management Decision Making
DECIDING
WHETHER TO
CONDUCT
MARKET
RESEARCH
To learn when marketing
research should and
should not be conducted.
• A Lack of Resources
Two situations:
• lack of funds
• insufficient funds to implement
decisions from research
• Research Results Would Not Be Useful
• Clients may be hard-pressed to use the
information
Chapter 1
Learning Objective
The Role of Marketing Research
in Management Decision Making
DECIDING
WHETHER TO
CONDUCT
MARKET
RESEARCH
To learn when marketing
research should and
should not be conducted.
• Poor Timing in the Marketplace
• Marketing research should not be
undertaken if the opportunity for
successful entry into a market has
passed.
• The Decision Has Already Been Made
• Marketing research may be used
improperly.
Chapter 1
Learning Objective
The Role of Marketing Research
in Management Decision Making
DECIDING
WHETHER TO
CONDUCT
MARKET
RESEARCH
To learn when marketing
research should and
should not be conducted.
• When Managers Cannot Agree on What
They Need to Know to Make a Decision
• The wrong phenomena might be studied
• When Decision-Making Already Exists
• Further research may be redundant and
costly
• When the Costs of Conducting Research
Outweigh the Benefits
• Potential new products with large profit
margins may have a greater potential
Chapter
Deciding
1
Whether to Conduct Market
Learning Research
Objective
Table 1.2
The Role of Marketing Research
Market
Size Small
Profit Margin
Large Profit Margin
in Management
Decision
Making
Small
Cost likely to be greater
than benefit; e.g.,
Possible benefits
greater than cost; e.g.,
• eyeglasses
replacement screw
• ultraexpensive
Lambeggehni-type
sportswear
• tire valve extension
DON’T CONDUCT
MARKETING
RESEARCH
PERHAPS
CONDUCT
MARKETING
RESEARCH
Chapter
Deciding
1
Whether to Conduct Market
Learning Research
Objective
Table 1.2
The Role of Marketing Research
Market
Size Small
Profit Margin
Large Profit Margin
in Management
Decision
Making
Large
Benefits likely to be
greater than costs;
e.g.,
Benefits likely to be
greater than costs; e.g.,
• medical equipment
• Stouffers frozen
entries
• Crest’s tarter control
toothpastes
PERHAPS
CONDUCT
MARKETING
RESEARCH
• high-definition TV
CONDUCT
MARKETING
RESEARCH
Chapter 1
Learning Objective
The Role of Marketing Research
in Management Decision Making
GOING
ON- LINE
Major internet use
Ways to Use the Internet in Marketing
Research
• Secondary source material
• Data collection
• Project management
• Report distribution
• General communication
Chapter 1
Learning Objective
The Role of Marketing Research
in Management Decision Making
The End
Copyright © 2000 by John Wiley & Sons, Inc.