1 Introduction to Marketing Research

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Introduction toMarketing Research

by


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Marketing Research Defined

Marketing research is defined as: the systematicand objective process of generating information foraid 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.


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The Nature of Marketing Research

Marketing research is one of the principaltools for answering questions because it:

Links the consumer, customer, and public to themarket through information used to identify anddefine marketing

Generates, refines, and evaluates marketing actions Monitors marketing performance

Underlines the understanding of marketing as aprocess


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INFORMATION

REDUCES

UNCERTAINTY

I dont

know if weshould

enter the

IndianMarket.


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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 apragmatic problem


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Applied Research

Conducted when a decision must be madeabout a specific real-life problem


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Defining Marketing Research

The American Marketing Association (AMA)redefined Marketing Research as:

The function that links the consumer, thecustomer, and public to the marketer

through INFORMATION


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Definition of Marketing Research

Marketing research is the systematic and objective

identification

collection

analysisdissemination

and use of information

For the purpose of improving decision making related to theidentification and

solution of problems and opportunities in marketing


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Market Research

Specifies the information necessary toaddress these issues

Manages and implements the data

collection process Analyzes the results

Communicates the findings and their

implications Helps managers use this information to

make decisions


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Classification of Marketing Research

Problem-Identification Research Research undertaken to help identify problems which are

not necessarily apparent on the surface and yet exist or are likely to arise in the future. Examples: market

potential, market share, image, market characteristics,sales analysis, forecasting, and trends research.

Problem-Solving Research Research undertaken to help solve specific marketing

problems. Examples: segmentation, product, pricing,promotion, and distribution research.


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A Classification of Marketing Research

Marketing Research

Problem

Identification Research

Problem-SolvingResearch

Market Potential ResearchMarket Share ResearchMarket Characteristics ResearchSales Analysis ResearchForecasting ResearchBusiness Trends Research

Segmentation ResearchProduct ResearchPricing ResearchPromotion ResearchDistribution Research


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Problem-Solving Research

Determine the basis of segmentation

Establish market potential andresponsiveness for various

segmentsSelect target markets

SEGMENTATION RESEARCH

Test concept Determine optimal product design Package tests Product modification Brand positioning and repositioning Test marketing

PRODUCT RESEARCH


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PRICING RESEARCH

Pricing policies

Importance of price in brand selection

Product line pricing

$ALE

PROMOTIONAL RESEARCH

Optimal promotional budgetSales promotion relationship

Optimal promotional mix

Evaluation of advertising effectiveness


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DISTRIBUTION RESEARCHDetermine

Types of distribution Attitudes of channel membersIntensity of wholesale & resale coverageChannel marginsLocation of retail and wholesale outlets


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Marketing Research Process

Step 1: Defining the Problem

Step 2: Developing an Approach to the Problem

Step 3: Formulating a Research Design

Step 4: Doing Field Work or Collecting Data

Step 5: Preparing and Analyzing Data

Step 6: Preparing and Presenting the Report


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The role of marketing research withinthe marketing system


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The Role of Marketing Research

ControllableMarketing

Product Pricing Promotion Distribution

VariablesMarketing

Research

MarketingDecisionMaking

ProvidingInformation

AssessingInformationNeeds

Marketing Managers

Market Segmentation

Performance & Control

Target Market Selection Marketing Programs

UncontrollableEnvironmentalFactors

Economy

Technology Laws &

Regulations Social & Cultural

Factors Political Factors

Consumers Employees Shareholders Suppliers

Customer Groups


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Marketing Research Suppliers & Services

LIMITED SERVICE

OtherServices

Technicaland Analytical

Services

Focus Groupsand Qualitative

Services

FieldServices

FULL SERVICE

SyndicateServices

StandardizedServices

CustomizedServices

InternetServices

RESEARCHSUPPLIERS EXTERNAL

INTERNAL


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Marketing Research Suppliers & Services

Internal suppliers External suppliers

Full-service suppliers Syndicated services Standardized services Customized services Internet services

Limited-service suppliers Field services Focus groups and qualitative services Technical and analytical services Other services

M I f i S V D i i


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Management Information Systems Vs. DecisionSupport Systems

Unstructured ProblemsUse of Models

User Friendly Interaction

Adaptability

Can Improve Decision

Making by Using What if

Analysis

DSSMIS

Structured Problems

Use of Reports

Rigid Structure

Information Displaying

RestrictedCan Improve Decision Making

by Clarifying Data


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Keeping Customers and

Building Relationships

RELATIONSHIP MARKETING - the idea thata major goal of marketing is to build long-

term relationships with the parties who

contribute to the companys success.

Marketers want customers for life.

Managing the relationships that will bring aboutadditional 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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Analyze Market Segmentsand Select Target Markets

Examples: Cadillac investigates buyers demographic

characteristics

MTV, monitoring demographic trends, learns theHispanic audience is growing rapidly

Sears learns women, age 25-54 with averagehousehold income of $38,000, are core

customers. Targets this market with softer sideof Sears.


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Plan and Implementa Marketing Mix

Price: Safeway does a competitive pricinganalysis

Distribution: Caterpillar Tractor Co. investigatesdealer service program

Product: Oreo conducts taste test, Oreo cookievs. Chips Ahoy

Promotion: How many consumers like AlwaysCoca Cola! slogan?


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Analyze Marketing Performance

This years market share is compared tolast years.

Did brand image change after new

advertising?


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Performance-Monitoring Research

Research that regularly provides feedbackfor 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 ConductMarketing Research

Is sufficienttime

available?

Information

already onhandinadequate?

Is thedecision 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 Yes Yes Yes

No No No No


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Potential value of a marketing research effort shouldexceed its estimated costs

Value

DecreasedUncertainty

Increased Likelihoodof a Correct Decision

Improved MarketingPerformance andResulting HigherProfits

Costs Research

Expenditures Delay of Marketing

Decision andPossible Disclosureof Information toRivals

Possible ErroneousResearch Results

Mi i f h l f


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Misconception of the role ofmarketing research

Marketing research does not make decisions . The role of marketing research is not to make

decisions. Rather, research replaces hunches,

impressions or a total lack of knowledge withpertinent information.

Mi ti f th l f


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Marketing research does not guarantee success Research, can improve the chances of making a

correct decision. Anyone who expects to eliminate the possibility of

failure by doing research is both unrealistic and likelyto be disappointed.

The real value of research can be seen over a long

period where increasing the percentage of gooddecisions should be manifested in improved bottom-line performance and in the occasional revelationthat arises from research.

Misconception of the role ofmarketing research


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The overall purpose of marketing research is toassess information needs and provide the relevantinformation in a systematic and objective mannerto improve marketing decision making.

Marketing research may be classified into problemidentification research and problem-solvingresearch.

Problem identification uncovers the potential thatmay be exploited in markets.

Problem-solving uncovers the means to realize thatpotential.

Some facts about marketing research


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Marketing research can analyze past happenings. Information can be generated to aid in decision-making

but no research can tell you what is going to happen. You cant go out and do marketing research to try and

solve problems about what to do next because usually, orvery often, youre doing the opposite of what marketingresearch would tell you.

You cant base a new project two years ahead on current

market trends and what users are thinking at themoment.

You cant go and ask your customers to be yourinventors. Thats your job.

Some facts about marketing research

1 Introduction to Marketing Research

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