Ovais IMSciences January 16, 2014 Lectures 1

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Ovais IMSciences

January 16, 2014 Lectures 1

Introduction to Marketing Research and its Role

in a Firm

Reference: Zikmund, Chapter 1

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Chapter Outline

1) Overview of Marketing Management

2) Definition of Marketing Research

3) A Classification of Marketing Research

4) Marketing Research Process

5) The Nature of Marketing Research

6) Marketing Research Suppliers and Services

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What is Marketing?

• The process by which companies create,

communicate and deliver superior value for

the target customers in order to get value in

return.

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What is Marketing Management?

Marketing management is the art and science

of choosing target markets and getting,

keeping, and growing customers through

creating, delivering, and communicating

superior customer value.

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Marketing is about;

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Marketing Manager’s tasks and Research

• Developing marketing strategies• Capturing marketing insights• Connecting with customers• Building strong BRANDS• Shaping market offerings• Delivering value• Communicating value• Creating long-term growth

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Defining Research

• The systematic investigation into and study of

materials and sources in order to establish new facts

and reach new conclusions

• Research is defined as the creation of new

knowledge and/or the use of existing knowledge in

a new and creative way so as to generate new

concepts, methodologies and understandings.

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Marketing research

Marketing research . . . .. . . links the consumer, customer

and public to the marketer through information which

is used to identify and define marketing opportunities

and problems; to generate, refine and evaluate

marketing actions; and to improve understanding of

marketing as a process and of the ways in which specific

marketing activities can be made more effective.

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WHAT IS MARKETING RESEARCH?

1. A systematic and objective process of generating information to aid in marketing decisions (Zikmund 8e, p. 3)

2. The application of the scientific method in searching for the truth about marketing phenomena Zikmund & Babin 9e, p. 3)

What keywords can be identified from these definitions?

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THE KEY WORDS• From Zikmund 8e, the key words are:

1. Information2. Process 3. Systematic 4. Objective 5. Decisions

• From Zikmund & Babin 9e, they are:1. Scientific method2. Truth 3. Marketing phenomena

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The Key Words

1. Information – – The primary function of marketing research (MR) is to

provide information, not just to collect data. – Thus the MR function is also responsible for analyzing

data collected, interpreting results, drawing conclusions, making recommendations, and communicating these to the decision maker.

2. Decisions – – MR is usually conducted not just for the sake of doing

research, but because the results will be used in decision making.

– Research helps the decision-maker by reducing the risk of making a wrong decision.

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The Key Words3. Process –

– MR is a process consisting of distinct activity stages

– Decisions have to be made in each stage4. Systematic –

– MR should be conducted systematically (i.e. in an orderly manner) NOT haphazardly (or in a disorganized manner)

5. Objectivity – – MR should conducted objectively (i.e. without bias

from the person doing the research) NOT subjectively (i.e. with the results depending on who is doing the research)

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The Key Words6) The Scientific Method• The scientific method is defined as the methods,

techniques, and procedures used to ensure that research is conducted in a systematic and objective manner.– Thus “science” is not only about mixing chemicals

and observing what happens; it is about being systematic and objective in trying to arrive at the truth about a phenomenon

7) Truth• Also referred to as “objective reality”• Facilitated by systematicity and objectivity in scientific

inquiry8) Marketing Phenomena• What distinguishes “marketing research” from other

“social science research”

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Redefining Marketing Research The American Marketing Association

(AMA) redefined Marketing Research as:

The function which links the consumer, the

customer, and public to the marketer

through INFORMATION

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CLASSIFICATION OF MARKETING RESEARCH

• There are several ways of classifying mkt research:1. By application of research results

– basic vs applied research2. By focal research design

– exploratory, descriptive, or causal research3. By type of data collected

– qualitative or quantitative research4. By locus of problem

– problem identification or problem solving research,

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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 Solving Research

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

Segmentation Research

Product Research

Promotion Research

Distribution Research

Fig 1.1

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Problem Solving Research

Determine the basis of segmentation

Establish market potential and responsiveness for various segments

Select target markets

Create lifestyle profiles: demography, media, and product image characteristics

SEGMENTATION RESEARCH

Test concept

Determine optimal product design

Package tests

Product modification

Brand positioning and repositioning

Test marketing

PRODUCT RESEARCH

Table 1.1

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Problem Solving ResearchTable 1.1 cont.

PRICING RESEARCH

Pricing policies

Importance of price in brand selection

Product line pricing

Price elasticity of demand

Initiating and responding to price changes

$ALE

PROMOTIONAL RESEARCH

Optimal promotional budget

Sales promotion relationship

Optimal promotional mix

Media decisions

Creative advertising testing

Evaluation of advertising effectiveness

0.00% APR

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Problem Solving ResearchDISTRIBUTION RESEARCH

Determine…

Types of distribution

Attitudes of channel members

Intensity of wholesale & resale coverage

Channel margins

Location of retail and wholesale outlets

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Marketing Research Process

Step 1: Problem Definition

Step 2: Development of an Approach to the Problem

Step 3: Research Design Formulation

Step 4: Fieldwork or Data Collection

Step 5: Data Preparation and Analysis

Step 6: Report Preparation and Presentation

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The Role of Marketing Research

ControllableMarketing

•Product

•Pricing

•Promotion

•Distribution

Variables

Marketing 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

Customer Groups

• Employees• Shareholders

Suppliers•

• Consumers

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Marketing Research Suppliers & Services

LIMITED SERVICE

BrandedProducts

and Services

DataAnalysisServices

AnalyticalServices

Coding and Data Entry Services

Field Services

FULL SERVICE

SyndicateServices

StandardizedServices

Customized

Services

InternetServices

RESEARCHSUPPLIERS EXTERNALINTERNAL

Fig 1.3

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Management Information Systems vs. Decision Support Systems

Unstructured Problems

Use 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

Restricted

Can Improve Decision Making

by Clarifying Data

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Domestic

AAPOR: American Association for Public Opinion Research (www.aapor.org)

AMA: American Marketing Association (www.ama.org)

ARF: The Advertising Research Foundation (www.amic.com/arf)

CASRO: The Council of American Survey Research Organizations (www.casro.org)

MRA: Marketing Research Association (www.mra-net.org)

QRCA: Qualitative Research Consultants Association (www.qrca.org)

RIC: Research Industry Coalition (www.research industry.org)

Marketing Research Associations Online

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International

ESOMAR: European Society for Opinion and Marketing Research (www.esomar.nl)

MRS: The Market Research Society (UK) (www.marketresearch.org.uk)

MRSA: The Market Research Society of Australia (www.mrsa.com.au)

PMRS: The Professional Marketing Research Society (Canada) (www.pmrs-aprm.com)

And others IMS, Gallop. Neilson etc

Marketing Research Associations Online