Transcript Who Uses Marketing Research?

Unit 9
Marketing Information
Management
Chapter 28 Marketing Research
Chapter 29 Conducting Marketing
Research
Chapter
28
Marketing
Information
Systems
Marketing Research
• Section 28.1 Marketing Information Systems
• Section 28.2 Types, Trends, and Limitations of
Marketing Research
Marketing Information Systems
Objectives
 Describe the purpose of marketing research
 Identify procedures for gathering information
using technology
Marketing Essentials Chapter 28, Section 28.1
Basketball is not a popular sport in countries outside the
US, especially Europe.
A large US sports company launches its best-selling
shoe to overseas markets. It creates commercials of
a NBA basketball player shooting hoops in different
locations around the world.
What do you think
sales will be like
for this shoe?
• Sales were relatively low for these shoes as a
result of few people related to the sport of
basketball.
• This was a mistake of the company that cost
them time and money with low ROI.
• What did the business not do?
– Learn the wants and needs of the customer market
• What could they have done to determine if
they should sell this shoe oversees?
– Researched the wants and needs of the
market/costomer
Had they researched they may have learned
• Dress shoes
• Casual shoes that don’t look like running
shoes.
• Flip Flops are only for the beach.
• Note: Many normal bars and pubs might
not let you in if you are wearing
running/athletic shoes or flip-flops.
Defining Marketing Research
Marketing research X involves the process and
methods used by a business to gather information,
analyze it, and report findings related to marketing
goods and services.
Marketing research is most often used by companies
to:
• Determine consumers’ attitudes and preferences
• Test promotional materials for effectiveness
• Create New products or Test product features
• Learn about competitive products
• Surveys to provide management with info on how
to improve operations and remain competitive
• Understand how the company is perceived by the
public
Who Uses Marketing Research?
• Small businesses rely on their owners, managers,
employees, or hired assistants to do their research.
•
Ever growing amount of info on the internet
•
Depend on friends, family and customers to tell them what is
working and what is not
• Larger companies have in-house research departments
to plan and conduct studies.
• Nonprofit organizations use customer surveys to get
feedback.
In 2001 it was estimated that 6.2 billion was spent on
marketing research.
• A 2013 survey conducted by Frost &
Sullivan found the average market
research spent, as a percentage of
revenue, was 1%.
• That is, a company with revenues of
$100M spent about $1M on research,
with B-to-B companies spending slightly
more than B-to-C companies (1.0% vs.
0.9%, respectively)
Sources of Data
• Business Forms
• Computer Technology
Section 28.1
Marketing Information
1. Business Forms used to Collect DATA
Sources for a Consumer Database
Charity Donation Forms
Application Forms
Product Warranty Cards
Subscription Forms
Credit Application Forms
database
A collection of related information
about a specific topic.
Section 28.1
Marketing Information
2. Using Technology to Gather DATA
A. Customer Loyalty Programs
Usually customers need to fill out a small form to enroll
• Reward customers
• Encourages Loyal Buying behavior
The business in turn collects data on household demographics,
lifestyles, and purchase behavior.
Section 28.1
Marketing Information
Using Technology to Gather Information
B. Computer Software
• Cookies
1. Small data files uploaded to customer’s computers by
online retailers
2. Track how often and how much time a person spends
at a website or views an ad
1. http://www.artbusiness.com/cookies.html
• Data-Mining software
1. Analyzes existing and external databases
2. Collects information from other customer databases to
match and identify patters of customer behavior
Section 28.1
Marketing Information
Pros and Cons of Data Collections
Technology allows for ease of gathering and sharing personal information
1. Advantages
A. Easier to track down criminals and prevent bank fraud
B. Consumers can learn about new products and services
2. Disadvantages
A. Misuse of personal information – business often sell
information, give away to other companies etc.
Limitations of Research
• Amount of info that can be gathered is
limited by the amount of money and time
a company can afford to conduct
research
• Customers in a test market may say they
would buy, but no guarantee they will
buy the product when sold
Create a New product
• Brainstorm a new product idea. You
have one year before the launch of
this new product.