Entp 14ppt

Entrepreneurship

Session-1422/06/07

Why Marketing Research Is Necessary?

Marketing communications is typically

asked to achieve four things - introduce

a new fact or idea, correct an existing

misconception, reinforce a favorable

opinion or stimulate action.

What Is Marketing Research:

‘Marketing Research’ is the function which 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; actions;

improve understanding of marketing as a process.

Marketing Research can reveal consumer characteristics:

Demographic. Socio-economic. Life-style. Awareness. Behavior (past, present and

intended )

Market research in pre start up phase

Who is the customer? Gender and Age Income Status Occupation and Education Other customer characteristics

Market research in pre start up phase

Where is the market? Market size and changes Segmenting the Market Growth characteristics Sales Forecast

Market research in pre start up phase

Competition Who are the market players? Existing competitors Products or substitutes

Market research in pre start up phase

Distribution How will customers be reached?

Market research in pre start up phase

Sources of market intelligence: Existing competitors Trade publications Securities Analysts Reports Potential customers

The Importance of Information

Companies need information about their: Customer needs Marketing

environment Competition

Marketing managers do not need more information, they need better information.

The Marketing Information System

Developing Marketing Information

Internal Databases: Electronic collections of information obtained from data sources within the company.

Marketing Intelligence: Systematic collection and analysis of publicly available information about competitors and developments in the marketing environment.

Marketing Research: Systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.

Competitive Intelligence:

It is the selection ,collection,interpretation and distribution of publicly-held information that has strategic importance.

Competitive Intelligence:

Competitor intelligence is the analytical process that transforms disaggregated competitor intelligence into relevant, accurate and usable strategic knowledge about competitor performance

It is highly specific and timely information about a corporation.

Competitive Intelligence:

Goals: Detecting competitive threats. Eliminating or lessening

surprises. Enhancing competitive advantage

by lessening reaction time. Finding new opportunities.

From Information to Intelligence

All the information needs to be collated.

The information need to be indexed and catalogued.

It pieces of information to be analyzed and interpreted.

Source: H. I. Ansoff, New Corporate Strategy (New York: Wiley, 1988), p. 109.

Competitive Growth Strategies

Growth Strategies for Business Units

Intensive Growth Growth occurring when current

products and current markets have the potential for increasing sales

Market penetration: increasing sales of current products in current markets

Growth Strategies for Business Units

Market development: increasing sales of current product in new markets

Product development: increasing sales by improving present products or developing new products for current markets

Growth Strategies for Business Units (cont’d)

Diversified Growth Growth occurring when new products

are developed to be sold in new markets Advantage of diversified growth is the

spread of risk across a number of markets

Diversification allows for a wider use of managerial, technical, and financial resources

Growth-Share Matrix Developed by the Boston Consulting Group

Source: Perspectives, No. 66, “The Product Portfolio.” Reprinted by permission from The Boston Consulting Group, Inc., Boston, MA. Copyright © 1970.