Transcript Chapter 1 - Essentials 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 Research Defined
The systematic and objective process of
generating information for aid in making
marketing decisions
The American Marketing Association
Redefines Marketing Research
Marketing research is the
function which links the
consumer, customer, and
public to the marketer
through
used to identify and
define market
opportunities and
problems
generate, refine, and
evaluate marketing
performance
monitor marketing
performance
improve understanding of
marketing as a process
The Marketing Research Process
• 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
I don’t know
if we should
enter the
Australian
Market?
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
Basic Research Example
• Do consumers experience cognitive
dissonance in low-involvement situations?
Applied Research
• Conducted when a decision must be made
about a specific real-life problem
Applied Research Example
• Should McDonalds add Italian pasta dinners
to its menu?
• Marketing research told McDonald’s it
should not?
• Should Procter & Gamble add a high-priced
home teeth bleaching kit to its product line?
• Research showed Crest Whitestrips would
sell well at a retail price of $44
Scientific Method
• The analysis and interpretation of empirical
evidence (facts from observation or
experimentation) to confirm or disprove
prior conceptions
Scientific Method is a formalized
research procedures that can be
characterized as logical, objective,
systematic, reliable, valid,
impersonal, and ongoing.
Marketing Concept
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Central idea in marketing
Evolved over time
Not production-oriented
Marketing-oriented
Marketing Concept
Consumer
Oriented
Long Run
Profitability
Cross-Functional
Effort
No One Know Better than Mom !!!
Does she know :
How much
underwear you own ?
Jockey International Does ?
No One Know Better than Mom !!!
Does she know :
The number of ice
cube you put in a
glass?
Coca-Cola Does ?
No One Know Better than Mom !!!
Does she know :
Which pretzels you
usually eat first the
broken ones or the
whole ones?
Try asking Frito-Lay
Knows
• We put 3.2 ice cubes in a glass
• See 69 of its commercial everyday
• Prefer cans out of vending machines
to be at a temperature of 2 C
Did you know that ?
38 % North Americans
would rather had a tooth
pulled than take their car to a
dealership for repairs
For every 10,000
Canadians in 1992
there were 8.13
automated teller
machines while
there were only 5.26
for Americans and 3.36
for Germans
Lever Brothers Co.
uncovered the fact that
79% of women said they
didn’t trust their
husbands to do the
laundry
NOTHING ABOUT OUR
BEHAVIOR IS SACRED !!!
68% of consumers prefer their toilet paper to unwind
over the spool rather than the under.
Campbell Soup gave up trying to learn
our opinions about the ideal sized
meatball after a series of tests showed
that we prefer one so big it wouldn’t fit
in the can
Our favorite
toothbrush color
is BLUE
Only 37% of us
are using one
that’s more than
six months old
47 % put water on brush before apply the paste
15 % put water on after the paste
24 % do both
14 % don’t wet the brush at all
Keeping Customers
and Building Relationships
• RELATIONSHIP MARKETING - the idea
that a major goal of marketing is to build
long-term relationships with the parties who
contribute to the company’s success.
• Marketers want customers for life.
• Managing the relationships that will bring
about additional exchanges
Total Quality Management
• Much in common with marketing concept
• Focus on integrating customer-driven
quality throughout the organization.
• Stresses continuous improvement
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
Identifying and Evaluating
Opportunities
Examples
• Mattel Toys investigates desires for play
experiences
• Home cooking is on the decline. Purchase of
precooked home replacement meals is on the rise.
• Number of investors trading stock on the Internet
is growing.
Analyze Market Segments and
Select Target Markets
Examples
• Cadillac investigates buyers’ demographic
characteristics
• MTV, monitoring demographic trends, learns the
Hispanic audience is growing rapidly
• Sears learns women, age 25-54 with average
household income of $38,000, are core customers.
Targets this market with "The Good Life at a
Great Price. Guaranteed. Sears."
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test concept
determine optimal product design
package tests
product modification
brand positioning and repositioning
test marketing
control score tests
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types of distribution
attitudes of Channel members
intensity of wholesale & resale
coverage
channel margins
location of retail and wholesale
outlets
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importance of price in brand selection
pricing policies
product line pricing
price elasticity of demand
initiating and responding to price changes
0.00% APR
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optimal promotional budget
sales promotion relationship
optimal promotional mix
copy decisions
media decisions
creative advertising testing
claim substantiation
evaluation of advertising effectiveness
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 many consumers recall the “Life
Tastes Good. Coca Cola!” slogan?
Analyze Marketing Performance
• This year’s market share is compared to last
year’s.
• Did brand image change after new
advertising?
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
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Time constraints
Availability of data
Nature of the decision
Benefits versus costs
Determining When to Conduct
Marketing Research
Time Constraints
Availability of Data
Is sufficient
time
available?
Information
already on
hand
inadequate?
No
Yes
No
Nature of the Decision
Yes
Is the
decision of
strategic
or tactical
importance?
Yes
No
Do Not Conduct Marketing Research
Benefits vs. Costs
Does the
information Yes
value
exceed the
research cost?
No
Conduct
Marketing
Research
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
Marketing Research in the 21st
Century
• Increased globalization
• Growth of the Internet and other
information technologies
Global Research
• Business Research is increasingly global
• Market knowledge is essential
• A.C. Nielsen - more that 67% international
business
Global Marketing Research
• General information about country economic conditions and political climate
• Cultural and consumer factors
• Market and competitive conditions demand estimation
The Internet
is Transforming Society
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Time is collapsing.
Distance is no longer an obstacle.
Crossing oceans is only a mouse click away.
People are connected 24 hours a day, seven
days a week.
• "Instantaneous" has a new meaning.
Internet Research
• Seeking facts and figures about an issue
• Surveys on Web sites