01 Introduction Marketing research

.

Exploring Marketing Research

William G. Zikmund

Chapter 1:

The Nature of

Marketing Research

Copyright © 2000 by Harcourt, Inc. All rights reserved.

Marketing Research Defined

Marketing research is defined as: the systematic and objective process of generating information for aid in making marketing decisions.

This process includes:

•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.


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

.

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 McDonald’s add a “Whopper Stopper” burger to its menu?

• The MBX is now being researched.


Scientific Method

• The analysis and interpretation of empirical evidence (facts from observation or experimentation) to confirm or disprove prior conceptions


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 “softer side of Sears.”


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 like “Always 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

• Time Constraints

• Availability of Data

• Nature of the Decision

• Benefits versus Costs


Determining When to Conduct Marketing Research

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


Potential value of a marketing research effort should exceed itsestimated costs

Value

• Decreased Uncertainty•Increased Likelihood of a Correct Decision•Improved Marketing Performance and Resulting Higher Profits

Costs•Research Expenditures•Delay of Marketing Decision and Possible Disclosure of Information to Rivals•Possible Erroneous Research Results


Global Research

• Marketing Research is increasingly global• Market knowledge is essential• A.C. Nielsen - more than 60% international

business


Global Marketing Research

• General information about country - economic conditions and political climate

• Cultural and consumer factors• Market and competitive conditions - demand

estimation

01 Introduction Marketing research

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understanding of marketing

marketing mixprice

marketing strategy

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