Transcript Marketing Research

Marketing Research
Aaker, Kumar, Day and Leone
Tenth Edition
Instructor’s Presentation Slides
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Chapter One
A Decision Making
Perspective on
Marketing Intelligence
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Market Research
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Business Intelligence
• BI is the ability to access data from multiple sources within an
organization and deliver it to business users for analysis
• It links the disparate operational systems to the end users of the
data, thus creating an environment with free flow of information
• It offers a reliable barometer of business performance
• It helps to analyze what is behind trends and anomalies in the
business
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Business Intelligence
Business Intelligence
Financial
Intelligence
Management
Intelligence
Marketing
Intelligence
....................
Customer Relationship
Marketing/ Database Marketing
Marketing
Research
Primary Sources
Accounting
Intelligence
Secondary Sources
Standardized Sources
Provide data on
Prospects
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Customers
Competition
Products/Markets
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What is Marketing Intelligence?
Market intelligence (MI) is, “the process of acquiring and analyzing
information in order to understand the market (both existing and
potential customers); to determine the current and future needs and
preferences, attitudes and behavior of the market; and to assess
changes in the business environment that may affect the size and
nature of the market in future.”
- Cornish S. L
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Need for Marketing Intelligence
• Producers have little direct contact with consumers (geographical
distance and channel layers).
• Channel has little knowledge about customer attitudes, preferences
and changing tastes.
• Need to understand competition, without spying on them.
• Management goals involve sales targets and market share
achievement.
• Need to identify successful new product developments early in the
process to ensure growth and revenue maximization by finding a
balance between costs and prices of products.
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Domains of Marketing Intelligence
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Marketing Research
• Marketing Research, a critical part of Marketing Intelligence
helps by providing accurate, relevant and timely (ART)
information
Links consumer, customer, and public to the marketer
through information used to:
• Identify and define marketing opportunity and
problems
• Generate, redefine and evaluate marketing actions
• Monitor marketing performance
• Improve understanding of marketing as a process
(from AMA’s official definition of Marketing Research)
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Role of Marketing Research in
Managerial Decision Making
Four Stages of Market Planning Process
▫ Situation analysis
▫ Strategy development
▫ Marketing program development
▫ Implementation
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Marketing Planning Process
Situation
Analysis
Strategy
Development
• Understand the environment and the market
• Identify threats and opportunities
• Assess the competitive position
• Define the business scope and
market segments served
• Establish competitive advantages
• Set performance objectives
Marketing
Program
Development
• Product and channel decision
• Communication decisions
• Pricing
• Personal selling decisions
Implementation
• Performance monitoring
• Refining strategies and program
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Situation Analysis
Analysis of
▫ Market environment
▫ Market characteristics
▫ Consumer behavior
Research Approaches
▫ Organize information obtained from prior studies
(secondary)
▫ Focus groups
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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?
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Marketing Program Development
• Programs embrace specific tasks
• Action program usually focuses on a single objective in support of one
element of overall business strategy
Representative Decisions that Draw on
Marketing Research:
• Segmentation decisions
• Personal selling decisions
• Product decisions
• Price decisions
• Distribution decisions
• Branding decisions
• Advertising and promotion
decisions
• Customer satisfaction decisions
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Implementation
• Starts with decision to proceed with a new program or strategy
• Set specific measurable objectives for all elements of marketing program
• Shift research focus to :
▫ "Did the elements achieve their objectives?"
▫ “Should the marketing program be continued, discontinued, revised or
expanded?"
Factors Influencing Marketing Research Decisions
• Relevance
• Type and Nature of Information Sought
• Timing
• Availability of Resources
• Cost-benefit Analysis
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Ethics in Marketing Research
Ethics of the Sponsor
▫ Overt and covert purposes
▫ Dishonesty in dealing with suppliers
▫ Misuse of research information
Ethics of the Supplier
▫ Violating client confidentiality
▫ Improper execution of research
Abuse of Respondents
▫ Falsifying answers
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Conquering Latino Homes
• Hispanics account for nearly 15% of the U.S. population.
• Research shows that Latino households contribute $600 billion of $1.3
trillion purchasing power of multicultural population.
• In 2003 only 5.1% of total advertising dollars in the United States was
focused on Latinos.
• By 2050, Hispanic population would represent 25% of US population.
• What do you think the problem is?
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P&G Luring Women with their
Feminine Toothpaste
• P&G has came out with “Rejuvenating Effects” a gender specific
toothpaste targeting the female customers, who do 82% of the grocery
shopping.
• The flavor and package of the product was decided on the basis of the
results from a customer survey filled out by women.
• Though the product is priced slightly higher than the other brands P&G
hopes to make women think about the toothpaste in the same light as
skin care lotions and shampoo.
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Harley Davidson Exploring New Markets
• Problem: Flat domestic scales
• Solution:
▫ In 1999, Harley-Davidson started a rental program which provided a way to hook
customers on riding and thereby entice them into buying a motorcycle.
▫ 40 percent of those enrolled in the program were female and about 30 percent
were under the age of 35
• Result:
▫ Motorcycles rented went up from 401 days in 1999 to a total of 224,134 days
worldwide in 2004.
▫ 32 percent of rental customers surveyed bought a bike or placed an order after
renting, another 37 percent were planning to buy one within a year.
▫ Nearly half of the renters spent more than $100 on Harley-Davidson accessories,
such as T-shirts and gloves.
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