Transcript Marketing Research

Marketing Research
Aaker, Kumar, Day
Ninth 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 the 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
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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 served
market segments
•Establish competitive advantages
•Set performance objectives
Marketing
Program
Development
Implementation
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•Product and channel decision
•Communication decisions
•Pricing
•Personal selling decisions
•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
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Marketing Program Development
(cont.)
Representative Decisions that Draw on Marketing Research:
 Segmentation decisions
 Product decisions
 Distribution decisions
 Advertising and promotion decisions
 Personal selling decisions
 Price decisions
 Branding 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?"
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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 12.5% 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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