Transcript A Perspective on Marketing Research

Chapter One
A Decision Making
Perspective on Marketing
Research
Essentials of Marketing Research
Kumar, Aaker, Day
Why study Marketing Research
• Careers
– Research Organizations
– Marketing & Business Consultancies
– Marketing Departments of Businesses
– Academia
Essentials of Marketing Research
Kumar, Aaker, Day
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 advice.
Essentials of Marketing Research
Kumar, Aaker, Day
Why study Marketing Research
• Universal belief – numbers don’t lie
• Increase chances of taking the right
decision
• Increase confidence in your
recommendations
Essentials of Marketing Research
Kumar, Aaker, Day
What is Marketing Research?
Examples
Gentleness
Pain Relievers
 Tylenol
Effectiveness
 Bayer
 Private-label
Aspirin
 Advil
 Anacin
 Nuprin
 Excedrin
Essentials of Marketing Research
Kumar, Aaker, Day
Definition of Marketing
Research
• Marketing research is the
– systematic (pre-planned) and objective
(measurable)
– identification, collection, analysis, and
dissemination of information (information goes
from market to organization)
– 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.
Essentials of Marketing Research
Kumar, Aaker, Day
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
Essentials of Marketing Research
Kumar, Aaker, Day
Aspect of business environment?
Interested business?
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Depletion of forest cover
Increased demand for gasoline 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 increasingly prefer to buy online
Increasing trend in downloading songs from the Internet
Growing popularity of satellite radio
Increased duties on European cars
Essentials of Marketing Research
Kumar, Aaker, Day
Case: MP3 players
• Identify at least one aspect of the external
environment I-Pod would be interested in
researching:
– Economic
– Technological
– Buyer behavior
– Market
– Legal
Essentials of Marketing Research
Kumar, Aaker, Day
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?
Essentials of Marketing Research
Kumar, Aaker, Day
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?
• Who are our primary competitors?
• What opportunities exist with distribution
channels?
Essentials of Marketing Research
Kumar, Aaker, Day
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?
Essentials of Marketing Research
Kumar, Aaker, Day
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?
Essentials of Marketing Research
Kumar, Aaker, Day
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
Essentials of Marketing Research
Kumar, Aaker, Day
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
Essentials of Marketing Research
Kumar, Aaker, Day
Strategy development – Common
Marketing Research Questions
• What our the business objectives
– Sales Profits
– Market share
– Service objectives
– Customer satisfaction
– Attitudes, etc.
Essentials of Marketing Research
Kumar, Aaker, Day
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
Essentials of Marketing Research
Kumar, Aaker, Day
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 can it be
measured
Essentials of Marketing Research
Kumar, Aaker, Day
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
Essentials of Marketing Research
Kumar, Aaker, Day
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
Yes
Benefits vs.
Costs
Does the value
of the research
exceed the cost?
No
No
Do not conduct marketing research!
Essentials of Marketing Research
Kumar, Aaker, Day
Conduct
Marketing
Research