1 - intro to mr - handout

7/27/2019 1 - Intro to MR - Handout

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Dr. S. Victor Anandkumar

School of ManagementPondicherry University

INDIA

[email protected]


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Why we do what we do(The epistemology of Marketing Research)


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Session-1

Introduction toMarketing Research


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Marketing Research Defined

The systematic and objectiveprocess of generating

information for aid in makingmarketing decisions


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That is

MR is the systematic and objective identification

collection

analysis

dissemination

and use of information

For the purpose of improving decision makingrelated to the

identification and

solution of problems and opportunities in marketing


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One more definition

The function that links the

consumer, the customer,

and public to the marketer

throughINFORMATION


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Used to identify and

define market

opportunities and

problems

Generate, refine, andevaluate marketing

performance

Monitor marketing

performance

Improve understanding

of marketing as a

process

Role of information in MR


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The Marketing Research Process

Define the Problem Develop an Approach to the Problem

Type of Study? Exploratory, Descriptive, Causal?

Management & Research Questions, Hypotheses

Formulate a Research Design Methodology

Questionnaire Design

Fieldwork

Prepare & Analyze the Data

Prepare & Present the Report


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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

Controllable

Marketing

Product

Pricing

Promotion

Distribution

Variables Marketing

Research

Marketing

DecisionMaking

Providing

Information

Assessing

Information

Needs

Marketing Managers

Market Segmentation

Performance & Control

Target Market Selection

Marketing Programs

Uncontrollable

Environmental

Factors

Economy

Technology

Laws &Regulations

Social & CulturalFactors

Political Factors

Consumers Employees Shareholders Suppliers

Customer Groups


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Marketing Research

Classification-1Problem-

identificationresearch

Problem-solving

research


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Types of Marketing Research

Problem-Identification Research To help identify problems which are

not necessarily apparent on the

surface and yet exist or are likely to

arise in the future

Problem-Solving Research

To help solve specific marketing

problems


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Marketing Research

Problem

Identification Research

Problem-SolvingResearch

Market Potential Research

Market Share ResearchMarket Characteristics ResearchSales Analysis ResearchForecasting ResearchBusiness Trends Research

Segmentation Research

Product ResearchPricing Research

Promotion Research

Distribution Research


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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

Control score tests

PRODUCT RESEARCH


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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

Copy decisions

Media decisions

Creative advertising testing

Evaluation of advertising effectiveness

Claim substantiation

0.00%


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DISTRIBUTION 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

Classification-2Basic research

Applied research


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Basic Research

Attempts to expand the limitsof knowledge

Not directly involved in thesolution to a pragmaticproblem


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Basic Research Example

Do consumers experiencecognitive dissonance in

low-involvementsituations?


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Applied Research

Conducted when a decision must bemade about a specific real-life problem


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Applied Research Example

Should McDonalds add Italian pastadinners to its menu?

Marketing research told McDonalds it

should not


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Applied Research Example

Should Procter & Gamble add a high-priced home teeth bleaching kit to itsproduct line?

Research showed Crest Whitestripswould sell well at a retail price of $44


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Scientific Method

The analysis and interpretation ofempirical evidence (facts fromobservation or experimentation)to confirm or disprove priorconceptions


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Using Marketing Research

We can use Marketing Research to:Identify & Evaluate Opportunities

Analyze Market SegmentsSelect Target Markets

Plan & Implement Marketing Mixes

Analyze 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. When India attained sufficiency in milk

production, Nestle did something with

MilkMaid


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Analyze Market Segments and

Select Target Markets

Examples

Ford investigates buyers demographic

characteristics to decide on product launch MTV, monitoring demographic trends, learns

the Hispanic audience is growing rapidly

Wal-Mart changes its slogan to Save money.Live better during the economic downturn to

attract the frugal customers


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Plan and Implement

a Marketing Mix

Price: Milo does a competitive pricing analysis

Distribution: Caterpillar Tractor Co. investigatesdealer service program.

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

Promotion: How many consumers recall the

Open happiness slogan?


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Analyze Marketing Performance

This years market share is

compared to last years.

Did brand image change afternew advertising? Coca-cola pesticide crisis in India


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Performance-monitoring Research

Research that regularly provides

feedback for evaluation and control

Indicates things are or are not goingas planned

Research may be required toexplain why something went wrong


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Determining When to Conduct

Marketing Research

Time constraints

Availability of data

Nature of the decisionBenefits versus costs

D t i i Wh t C d t


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Is sufficient

time

available?

Information

already on

hand

inadequate?

Is the

decision of

strategic

or tactical

importance?

Does the

information

value

exceed the

research cost?

Conduct

Marketing

Research

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 ofcorrect decision

Improved marketingperformance andresulting higher profits

Costs

Research expendituresDelay of marketingdecision and possibledisclosure of information

to rivalsPossible erroneousresearch 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 FORMANAGERIAL

JUDGEMENT!!


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MARKETING RESEARCHSUPPLIERS & SERVICES


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