Introduction to Marketing Research Yale Consultancy Sdn Bhd info@yaleconsultant.com 03-2021 0577 info@yaleconsultant.com Yale Consultancy Sdn Bhd1.

Introduction toMarketing Research

Yale Consultancy Sdn Bhdinfo@yaleconsultant.com

03-2021 0577

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“It ain’t the things we don’t know that gets us in trouble. It’s the things we know that ain’t so.”

Artemus Ward2Yale Consultancy Sdn Bhd

What is Marketing?

Marketing has been defined by the AMA as an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

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What is the Marketing Concept?

The Marketing Concept is a business philosophy that holds that the key to achieving organizational goals consists of the company’s being more effective than competitors in creating, delivering, and communicating customer value to its chosen markets.

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What is Marketing Strategy?

A Marketing Strategy consists of selecting a segment of the market as the company’s target market and designing the proper “mix” of the product/service, price, promotion, and distribution system to meet the wants and needs of the consumers within the target market.

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Marketing Research Defined

The systematic and objective process of generating information for aid in making marketing decisions

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What is Marketing Research?(Burns and Bush Definition) Marketing research is the process of

designing, gathering, analyzing, and reporting information that may be used to solve a specific marketing problem.

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What is Marketing Research? AMA definition Marketing research: the function that links the

consumer, customer, and public to the marketer through information – information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve the understanding of marketing as a process.

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Market Research vs. Marketing Research Market research: the “systematic gathering,

recording, and analyzing of data with respect to a particular market, where ‘market’ refers to a specific group in a specific geographic area.”

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Case Study

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Learning by Doing: Let’s Apply Marketing to a Restaurant

Target market segment? Marketing strategy

Location?Menu?Prices?Type? Advertising?

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Restaurant Marketing Decisions What if you owned a restaurant located in

Austin, Texas near the University of Texas? What would be your marketing strategy? How certain are you that you made the right

decisions?

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Restaurant Marketing Decisions What if the restaurant was located near a

university in a foreign country like China, Thailand, Italy, Iceland, or Peru?

What would be your decisions? How certain are you that you made the right

decisions now? So, what’s going on? Class comments?

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Key Point

To practice marketing; to implement the marketing concepts; to implement marketing strategy, managers must make decisions.

Many decisions require additional information and marketing research is needed in order to supply that information.

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We need Marketing Research to:

Make the “right” decisions to Implement marketing Practice the marketing concept and Make the right decisions to select the right

marketing strategy

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The Marketing Research Process

Define the Problem Develop an Approach to the Problem

Type of Study? Exploratory, Descriptive, Causal? Mgmt & Research Questions, Hypotheses

Formulate a Research Design Methodology Questionnaire Design

Fieldwork Prepare & Analyze the Data Prepare & Present the Report

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What is the purpose of Marketing Research? To link the consumer to the marketer by

providing information that can be used in making marketing decisions

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What are the uses of Marketing Research? Identify marketing opportunities and problems Generate, refine, and evaluate potential

marketing actions Monitor marketing performance Improve marketing as a

process

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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

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Basic Research 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

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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

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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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Using Marketing ResearchWe can use Marketing Research to:

Identify & Evaluate OpportunitiesAnalyze Market SegmentsSelect Target MarketsPlan & Implement Marketing MixesAnalyze Marketing Performance

Performance Monitoring Research

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Identifying and Evaluating OpportunitiesExamples 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.

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Analyze Market Segments and Select Target MarketsExamples 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 ResearchResearch that regularly provides

feedback for evaluation and control Indicates things are or are not going

as plannedResearch may be required to

explain why something “went wrong”

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Determining When to Conduct Marketing Research

Time constraintsAvailability of dataNature of the decisionBenefits versus costs

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Is sufficient time

available?

Information already on

handinadequate?

Is the decision of

strategicor tactical

importance?

Does theinformation

valueexceed the

research cost?

ConductMarketingResearch

Do Not Conduct Marketing Research

Time Constraints Availability of Data Nature of the Decision Benefits vs. Costs

Yes YesYesYes

No No No No

Determining When to Conduct Marketing Research

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Value

Decreased uncertaintyIncreased likelihood of

correct decisionImproved marketing

performance and resulting higher profits

Costs

Research expendituresDelay of marketing

decision and possible disclosure of information to rivals

Possible erroneous research results

Potential Value of a Marketing Research Effort Should Exceed Its Estimated Costs

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ALWAYS Remember

Marketing Research is a tool.It assists marketing managers in

their decision making.IT IS NOT A REPLACEMENT FOR MANAGERIAL JUDGEMENT!! 34Yale Consultancy Sdn Bhd

Hot Topics in Marketing Research Online Marketing Research Growing Consumer/Respondent Resentment Globalization

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Hot Topics – Online Marketing Research Online research: the use of computer

networks, including the Internet, to assist in any phase of the marketing research process including development of the problem, research design, data gathering, analysis, and report writing and distribution.

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Hot Topics – Online Marketing Research Web-based research: research that is

conducted on web applications; may use traditional methods as well as on-line research methods in conducting research on web-based applications… Usability studies

On-line survey research: collection of data using computer networks… Ordering samples online via Survey Sampling, Inc.

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Hot Topics – Online Marketing Research On-line survey research: collection of data

using computer networks… Ordering samples online via Survey Sampling, Inc.

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Hot Topics – Growing Consumer/ Respondent Resentment

Marketing research is invasive. Telemarketers and direct marketers have

abused “marketing research.” The government through FTC has instituted a

“Do not call” list. The marketing research industry is so far

excluded from the ban of the “do not call” regulations.

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Hot Topics – Globalization

As marketing firms spread globally, so did marketing research firms.

According to Jack Honomichl, 48% of U.S. marketing research firms’ revenues were generated outside of U.S.

The top 25 marketing research firms in the world earn 67% of their revenues outside their own country.

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Thank You

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