Transcript Chapter 1 - Exploring Marketing Research

Marketing Research
The Nature of Marketing
Research
Dr. Zafer Erdogan
Principle Marketing Tool
Philip Kotler argues
‘marketing is becoming more of a battle based on
information rather than one based on sales
power these days’
Marketing research fulfills the marketing
manager’s need for
• knowledge of the market
• helps the manager predict how the market will
respond to his marketing decisions.
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Marketing Research Defined
The emphasis is to shift decision makers from
risky intuitive decisions to decisions based on
systematic and objective investigations.
Therefore,
The systematic and objective process of
generating information for aid in making
marketing decisions.
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Information
Reduces
Uncertainty
I don’t know
if we should
enter the
European
Market?
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Marketing Research Types
Basic research
Applied research
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Basic Research
• Attempts to expand the limits of
knowledge
• Not directly involved in the solution to a
pragmatic problem
Example: Do consumers experience
cognitive dissonance in
low-involvement situations?
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Applied Research
Conducted when a decision must be made
about a specific real-life problem
• 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
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Scientific Method
• The analysis and interpretation of
empirical evidence (facts from
observation or experimentation) to
confirm or disprove prior conceptions
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Marketing Concept & MR
•
•
•
•
Central idea in marketing
Evolved over time
Not production-oriented
Marketing-oriented
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Marketing Concept
Consumer
Oriented
Long Run
Profitability
Cross-Functional
Effort
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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
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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
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Identifying and Evaluating
Opportunities
Examples
– 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.
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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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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?
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Analyze Marketing
Performance
• This year’s market share is compared to
last year’s.
• Did brand image change after new
advertising?
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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”
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Determining When to Conduct
Marketing Research
• Time constraints
• Availability of data
• Nature of the decision
• Benefits versus costs
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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
Benefits vs. Costs
Does the
information Yes
value
exceed the
research cost?
Conduct
Marketing
Research
No
Do Not Conduct Marketing Research
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Benefits Should Exceed
Estimated Costs
Costs
Benefits
•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
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Marketing Research in the
21st Century
• Increased globalization
• Growth of the Internet and other
information technologies
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Global Research
• Business Research is increasingly
global
• Market knowledge is essential
• A.C. Nielsen - more that 67%
international business
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The Internet
is Transforming Society
• 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.
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Discussion
Is it possible to make sound marketing
decisions without marketing research?
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