marketing research
DESCRIPTION
Marketing researchTRANSCRIPT
The Marketing Research Role in Marketing Management
Dependent variables (Effects)Dependent variables (Effects)Independent variables (Causes)
Independent variables (Causes)
BehavioralResponse
1 Awareness 2 Knowledge 3 Liking 4 Preference 5 Intent-to-buy 6 Purchase
BehavioralResponse
1 Awareness 2 Knowledge 3 Liking 4 Preference 5 Intent-to-buy 6 Purchase
Marketing mix(controllable)
1 Price decisions 2 Promotion decisions 3 Distribution decisions 4 Product decisions
Marketing mix(controllable)
1 Price decisions 2 Promotion decisions 3 Distribution decisions 4 Product decisions
Situational Factors(uncontrollable)
1 Demand 2 Competition3 Legal/political 4 Economic climate5 Technological 6 Gov’t. regulation7 Internal resources of the organization
Situational Factors(uncontrollable)
1 Demand 2 Competition3 Legal/political 4 Economic climate5 Technological 6 Gov’t. regulation7 Internal resources of the organization
Performance Measures1 Sales 2 Market Share3 Cost 4 Profit5 ROI 6 Cash flow7 Earnings / Share8 Image
Performance Measures1 Sales 2 Market Share3 Cost 4 Profit5 ROI 6 Cash flow7 Earnings / Share8 Image
Cont …
TYPES OF INFORMATION NEEDED FOR PLANNING AND CONTROL
I Situational analysisA Demand analysis 1 Buyers behavior and characteristics:
a What do they buy?b Who buys?c Where do they buy?d Why do they buy? e How do they buy?f When do they buy?g How much do they buy?h How will buyer’s behavior and characteristics change in the
future?i Are customers satisfied? At what
level?j Are customers retained? At what
level? 2 Market characteristics:
a Market size potentialb Segmentsc Selective demandd Future market trends
Cont …
B Competition 1 Who are competitors? 2 Competitor characteristics:
a Marketing programsb Competitive behaviorc Resources
3 Major strengths and weaknesses 4 Future competitive environmentC General environment 1 Economic conditions and trends? 2 Government regulation and trends? 3 Pollution, safety, consumerism concerns 4 Technological trends 5 Political climateD Internal environment 1 Marketing resources / Skills 2 Production resources / Skills 3 Financial resources / Skills 4 Technological resources / Skills 5 Future trends in internal environment
Cont …
II Marketing mixA Product 1 What product attributes/benefits are important? 2 How should the product be differentiated? 3 What segments will be attracted? 4 How important are service, warranty, and so on? 5 Is there a need for product variation/product line? 6 How important is packaging? 7 How is the product perceived relative to competitive offerings?B Place 1 What types of distributors should handle the product? 2 What are the channel attitudes and motivations for handling the product? 3 What intensity of wholesale/retail coverage is needed? 4 What margins are appropriate? 5 What forms o physical distribution are needed?
Cont …
C Price 1 What is the elasticity of demand? 2 What pricing policies are appropriate? 3 How should be product line be priced? 4 How do we establish price variations for a product? 5 How should we react to a competitive price threat? 6 How important is price to the buyer? D Promotion 1 What is the optimal promotional budget? 2 How important are sales promotion, advertising, and personal selling in stimulating demand? 3 What is the proper promotion mix? 4 How do you measure the effectiveness of the promotion tools? 5 What copy is most effective? 6 What media are most effective?
III Performance measures? 1 What are current sales by product line? 2 What are current market shares by product line? 3 What are current sales/market share by customer types, sales region, and so on? 4 What is our product/company image among customers, distributors, and the public? 5 What is the awareness level of our promotion? 6 What is the recall level of our brand name? 7 What percentage distributorship do we have in large retailers? Medium? Small? By geography? Customer type? 8 What percentage of the channel is selling below suggested retail price? What is the average retail price of our product? 9 What percentage of customers are satisfied? 10 What percentage of current customers are likely to repeat?
The Marketing Research Role in Marketing Management
1 Recognize a decision situation1 Recognize a decision situation
2 Define the decision problem2 Define the decision problem
3 Identify alternative courses of action3 Identify alternative courses of action
4 Evaluate the courses of action4 Evaluate the courses of action
5 Select a course of action5 Select a course of action
6 Implement and modify6 Implement and modify
Decision-makingProcess
Recognize a decision situationDefine the decision problemIdentify alternative courses of actionEvaluate courses of actionSelect a course of actionImplement and modify
Decision-makingProcess
Recognize a decision situationDefine the decision problemIdentify alternative courses of actionEvaluate courses of actionSelect a course of actionImplement and modify
Information inputs
Management experience and judgment
Marketing research system
Information inputs
Management experience and judgment
Marketing research system
Marketing systemMarketing mix Behavioral
response
Situational Performance factors measures
Marketing systemMarketing mix Behavioral
response
Situational Performance factors measures
The Marketing Research Role in Marketing Management
The key role of research
Product
Promotion
Place
Price
RESEARCHRESEARCH
Internal environment
External environment
The two-way research process
Quantitative - Objective
Quantitative - Subjective
Enquiries Information
OrganisationOrganisation
Data sourceData source
Secondary data sources
Marketing researchMarketing research
Secondary informationSecondary information
Internal sourcesInternal sources External sourcesExternal sources
Primary data sources
Marketing researchMarketing research
Primary informationPrimary information
SURVEYS
Personal / Postal / Telephone
Panel data / focus groups
SURVEYS
Personal / Postal / Telephone
Panel data / focus groups
OBSERVATION
Personal
Mechanical
OBSERVATION
Personal
Mechanical
Survey method
Advantages Disadvantages
Personal interview
Question can be modifiedIn-depth answers possibleMuch qualitative datafrom a small sampleFlexible-can allow for reaction , visual information Observation improves accuracy Rapport leads to fewer refusals.
Professional interviewers expensive Possible interviewer biasCan be slow People often not at home Invasion of privacy Disagreements can arise
Postal survey
No travel expenses, so economic if good return rate No interviewer bias Can be genuinely random Anonymous returns Can be completed at respondent’s leisure
Non-response rate high, unless questions are short , simple and not too probing Takes longer Inflexible and no observation Higher postage rates increase costs Difficult and expensive to obtain complete, up-to-date mail lists.
Cont …
Telephone survey
Easy to administer Quick No travel expenses, so cheap if local and in evenings Flexible – can allow for reaction and some in-depth answers Questions can be modified Some anonymity
Professional interviewers expensive Invasion of privacy Telephone charges can be high.No observationHard to develop trust Not genuinely random-sample limited to respondents with Non-response rate high- engaged signal/no answer/refusals
Focus group
Informality and personal rapport encourages accuracyQuestions can be modifiedCan run on a regular basisIn-depth answers reliableObservations and recording of answers and reactionsVisual details
Scope and sample limited Might not be treated seriouslyMore costly if incentives are large
Sampling methods
Sampling methodsSampling methods
ProbabilityProbability
RandomRandom ConvenienceConvenience
Non-probabilityNon-probability
Stratified or multi-
stage
Stratified or multi-
stage
ClusterCluster QuotaQuota SystematicSystematic
The chronological research process
1. Marketing dept. or manager defines background i.e. why research is necessary.1. Marketing dept. or manager defines background i.e. why research is necessary.
2. Research brief devised, including problem or opportunity to be analysed and clear statement of objectives.
2. Research brief devised, including problem or opportunity to be analysed and clear statement of objectives.
3. Exploratory research carried out.3. Exploratory research carried out.
4. Hypothesis developed.4. Hypothesis developed.
5. Research proposal and design prepared, including the method to be used / population to be surveyed/time-scale and costs/use of specialist agencies.
5. Research proposal and design prepared, including the method to be used / population to be surveyed/time-scale and costs/use of specialist agencies.
Cont …
6. Data collected – prepared/supervised/verified.6. Data collected – prepared/supervised/verified.
7. Data analysed and evaluated-significant relationships established and inter7. Data analysed and evaluated-significant relationships established and inter
8. Research presented and reported, including specific data and findings / recommendations.
8. Research presented and reported, including specific data and findings / recommendations.
The marketing information system
External and internal
information sources
External and internal
information sources
Classifying Storing
Indexing Retrieving
Classifying Storing
Indexing Retrieving
Information for marketing
decision making
Information for marketing
decision making
INPUTS PROCESSING OUTPUTS
FEEDBACK: ADJUSTING
INFORMATION INTAKE
Key elements of market selection
Segmentation
Deciding on variables and determining segments
Segmentation
Deciding on variables and determining segments
Targeting
Which targets should be targeted and when?
Targeting
Which targets should be targeted and when?
Positioning
Establish product position in consumer's minds
Positioning
Establish product position in consumer's minds
THE MARKETING RESEARCH ROLE IN MARKETING MANAGEMENT
Independent variables (causes)
Independent variables (causes)
Targeting
Which targets should be targeted and when?
Targeting
Which targets should be targeted and when?
Positioning
Establish product position in consumer's minds
Positioning
Establish product position in consumer's minds
Marketing / economic related
Stimuli Social/cultural and environmental
Personal and psychological
Marketing / economic related
Stimuli Social/cultural and environmental
Personal and psychological
The scope of buying behaviour
Marketing effort
CustomersCustomers
Organisational buying behaviour
Individual buyer behaviour
Decision-making units
Models of consumer behaviour
Reference group influences
Group influence of product class
Weak Strong
Strong
Weak
Public necessities:
Clothing
Furniture
Soaps
Clocks and watches
Group influence on brand type
Public luxuries:
Cars
Tobacco
Wine
Restaurant meals
Holidays
Private necessities:
Beds
Detergents
Breads and milk
Roof insulation
Soft drinks
Private necessities:
Microwave ovens
Video recorders
Television games
Instant coffee
Maslow’s hierarchy of needsStage and qualities Related products/services
Political
5.Self –actualisation
Self –fulfillment
Creativity
Development of talent
Self-awareness
5.Self –actualisation
Self –fulfillment
Creativity
Development of talent
Self-awareness
Education
Specialist hobbies
Sports
Luxury vacations
Gourmet food
Long-life products
Education
Specialist hobbies
Sports
Luxury vacations
Gourmet food
Long-life products
Cars
Housing
Material goods
Furniture
Prestige items
Books
Cars
Housing
Material goods
Furniture
Prestige items
Books
4.Self –esteem
Authority
Status and reputation
Prestige
Self-respect
Ego and confidence
Peer and community respect
Promotion and achievement
4.Self –esteem
Authority
Status and reputation
Prestige
Self-respect
Ego and confidence
Peer and community respect
Promotion and achievement
Origins
Spiritual
Cont …
LEARNED
INSTINCTIVE
Biological
2. SafetySecurity and stability
ReligionProtection
Physical well-beingFair treatment
FinanceSafe future
2. SafetySecurity and stability
ReligionProtection
Physical well-beingFair treatment
FinanceSafe future
InsuranceAlarm systems
Tyres and seatbeltsPensions
InvestmentsMedicines
InsuranceAlarm systems
Tyres and seatbeltsPensions
InvestmentsMedicines
BreadMilk
Beds and beddingHeatingLighting
Basic garments
BreadMilk
Beds and beddingHeatingLighting
Basic garments
1.Basic physiologicalAir
FoodDrinkSleep
ComfortSurvival
1.Basic physiologicalAir
FoodDrinkSleep
ComfortSurvival
Psychological
LEARNED
INSTINCTIVE
3.Social identificationAffiliation
Love and sexFreedom
BelongingRecognitionComparison
3.Social identificationAffiliation
Love and sexFreedom
BelongingRecognitionComparison
CosmeticsClothing
EntertainmentLeisure
Food and alcoholTobacco
CosmeticsClothing
EntertainmentLeisure
Food and alcoholTobacco
Sociological
Maslow’s hierarchy applied to the marketing of biscuits
Maslow’s needs stage Message to consumer
1. Basic physiological ‘Fills you up’
2. Safety
3. Social identification
4. Self -esteem
5. Self- actualisation
‘Pure through and through’
‘Join the in-crowd’
‘Special biscuit for the connoisseur’
‘Tease your taste buds with a new experience’
Information processing
AttentionAttention
ExposureExposure
ComprehensionComprehension
Yielding/acceptanceYielding/acceptance
RetentionRetention
Stimuli
MemoryMemory
The problem-solving process
Intensity of problem-solvingIntensity of problem-solving
Routine Limited Extensive
Low Medium High
Involvement, price, purchase frequency, risk, information levelInvolvement, price, purchase frequency, risk, information level
Problem recognitionProblem recognition Problem recognitionProblem recognitionStimuli
Cont …
Internal search for solutionInternal search for solution Internal search for solutionInternal search for solution
IntentionIntention Evaluation of alternative solutionsEvaluation of alternative solutions
PurchasePurchase Purchase decisionPurchase decision
SatisfactionSatisfaction Purchase actPurchase act
Post-purchase evaluationPost-purchase evaluation
Factors influencing Organisational buying decisions
EconomicBusiness conditions
Product priceTrade conditionsCommercial riskLevel of demand
EconomicBusiness conditions
Product priceTrade conditionsCommercial riskLevel of demand
InterpersonalRelationships
ConflictsCo-operation
AuthorityEmpathy
Persuasiveness
InterpersonalRelationships
ConflictsCo-operation
AuthorityEmpathy
Persuasiveness
IndividualAge
IncomeEducation
StatusPersonality
IndividualAge
IncomeEducation
StatusPersonality
MarketingProduct quality and performance
BenefitsQuantity
AvailabilityService
Selling methodsDistribution channels
MarketingProduct quality and performance
BenefitsQuantity
AvailabilityService
Selling methodsDistribution channels
EnvironmentalSocial/cultural
Laws and regulationsPolitical decisions
Competitive actionsEcological considerations
EnvironmentalSocial/cultural
Laws and regulationsPolitical decisions
Competitive actionsEcological considerations
OrganisationalPrestige
Goals/objectivesResources e.g. financialDecision-making units
Purchasing policies
OrganisationalPrestige
Goals/objectivesResources e.g. financialDecision-making units
Purchasing policies
SupplierGeographical location
Nature of suppliersPurchasing environment
ReliabilitySupplier interaction
Information exchange
SupplierGeographical location
Nature of suppliersPurchasing environment
ReliabilitySupplier interaction
Information exchange
TechnologicalRate of change
Technical featuresDesign
New product developmentProduct complexity
TechnologicalRate of change
Technical featuresDesign
New product developmentProduct complexity
Organisational decisions
Organisational decisions
The organisational buying decision process
Problem recognitionProblem recognition
Cont …
Influencing factorsInfluencing factors
Analysis of possible solution
Analysis of possible solution
Information searchInformation search
Suppliers contacted and products sought
Suppliers contacted and products sought
Product solutions evaluated
Product solutions evaluated
Monitoring and
feedback
Suitable solutions chosenSuitable solutions chosen
Terms negotiatedTerms negotiated
Purchase actPurchase act
Products and suppliers evaluated
Products and suppliers evaluated
P.E.S.T. Environmental factors
ORGANIZATION
INTERNAL
ENVIRONMENT
Political / Legal
Technological
Social / cultural
Economic
EXTERNAL ENVIRONMENT
EXTERNAL ENVIRONMENT
PEST EXTERNAL FACTORS
Political / Legal Environment – includes:
•Central and local government systems;
•Political ideologies and pressure groups;
•Financing and grants;
•Voluntary codes of practice;
•Statutory legislation
•Consumer protection measures.
Economic Environment – includes:
•Stage of the business cycle – prosperity/ recession/ depression/ recovery;
•Rate of inflation
•Unemployment rate
•Resource availability
•Income levels – total / disposable / discretionary
•Interest rates
Social / Cultural Environment – includes:•Demographic (population) and geographic trends;•Socio-economic class groups;•Status and background•Norms and values•Lifestyles and habits•Peer groups and associates; •Specific characteristics, e.g. language and practices
Technological Environment – includes:
•Technology transfer
•Innovation
•Desirable effects – living standards, leisure time;
•Undesirable effects – health hazards, unemployment, aesthetic and environmental problems;
•Short term impact
•Long term application
The competitive environment
ORGANIZATION
COMPETITIVE ENVIRONMENT
COMPETITIVE ENVIRONMENT
Competition from marketers of substitutable products or services
Indirect competition from marketers of all organizations for the consumer’s purchases
Direct competition from marketers of the same products or service
Direct competition from marketers of similar products or service
Forces Influencing Organizational Buying Behavior
Organizational Buying Behavior
Environmental forces
Organizational forces
Group forces
Individual forces
•Economic Outlook: Domestic & Global
•Pace of Technological Change
•Global Trade Relations
•Goals, Objectives and Strategies
•Organizational Position of Purchasing
•Roles, relative influence, and patterns of interaction of buying decision participants
•Job Function, past experience and buying motives of individual decision participants
Strategic Priorities in Purchasing
Strategic Priority
Modeling the Total Cost of Outside Purchases
Creating Purchasing Strategies Tied to Corporate Goals
Building and Sustaining Supplier Relationships
Integrating the Supply Chain
Leveraging Supplier Innovation
Description
Developing a clear grasp of the factors that drive the cost of purchased products and services.
Conducting a rigorous analysis of the supply industry to determine how suppliers can contribute fundamental value to corporate goals.
Structuring relationships with key suppliers to achieve mutual dependence and goal congruence.
Managing purchase and flow of materials from suppliers through production and on to customers
Creating value by bringing suppliers directly into the new product development process
Major Elements of Organizational Buying Behavior
Evoked Set of Alternatives
Environmental Constraints (Physical,
Technological, Economic, Social)
Organizational Requirements
(Technical, Financial)
Feasible Set of Alternatives
Formation of Individual Preferences
Formation of Organizational Preferences
Organizational Choice
Individual Responsibilities
Comprising the Buying Center
Sources of information
Evaluation Criteria
Interaction Structure
Values – Driven Leadership
Drivers of Sustainable Success in Service Business
Strategic focus
Executional Excellence
Control of Destiny
Trust-based RelationshipsInvestment in
Employee Success
Acting Small
Brand Cultivation
Generosity
Core Values That Sustain Service Performance
Excellence Joy
INNOVATION
Respect
TeamworkSocial Profit
INTEGRITY
From Core Strategy to Total Product
Definition of Business
Design of Business
Execution
Market Offer Total Product
Core Strategy
Integrated Substrategies
Design and Execution
Performance of Individual
Activities
Whole of Customer’s Experience
with Company
Model of Trust-Based Relationships
Perceived Competence
Perceived Fairness
Trust of Company
Employee Relationships
Customer Relationships
Partner Relationships
Relationship Commitment Levels
1. Interest in Alternatives
2. Acquiescence
3. Cooperation
4. Enhancement
5. Identity
6. Advocacy
7. Ownership
Investing in Employee Success
Investing in Employee Success
Strong Beginnings
Continuous Learning
Ownership Attitudes
A Service Branding Model
Company’s Presented Brand
Customer Experience with Company
Brand Awareness
Brand Meaning
Brand Equity