Marketing Research

Audhesh Paswan

Chapter 1:

The Nature and Role of

Marketing Research

The Nature of Marketing ResearchThe Nature of Marketing Research

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

• Links the consumer, customer, and public to the market through information used to identify and define marketing

• Generates, refines, and evaluates marketing actions

• Monitors marketing performance

• Underlines the understanding of marketing as a process

Marketing Managers..• Respond to a problem,

• by searching for, and selecting a solution or course of action,

• to create value for firm’s stakeholders.

Decision/Research ContextCustomer Groups:

Consumers, Employees, Shareholders, Suppliers

Controllable MarketingVariables

Uncontrollable Environmental

Factors

Marketing Research

AssessingInformation

Needs

Providing Intelligence - Information, data

MarketingDecision Making

Marketing Managers - Decisions regards market Segmentation, Target Market Selection, Marketing Programs/Plans, Performance & Control

Decision Making Process

ProblemRecognition

InformationSearch

ProblemAnalysis

AlternativeEvaluationDecision

Information/data

Market Information/data Sources

Decision MakingProcess

Intuition

ExperienceAuthority

Research

Information or Data• Secondary Vs Primary

• Qualitative Vs Quantitative

• Internal Vs External

Qualitative

Quantitative

Secondary

AnecdotesExperienceCase studiesOpinions, etc.

Primary

Focus groupsInterviewsprojection techniques, etc.

CensusSyndicated dataJournalsMagazines, etc.

SurveysObservationsExperimentsTests, etc.

Marketing Research Defined

Marketing research is defined as: the systematic and objective process of generating information for aid 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.

INFORMATION

REDUCES

UNCERTAINTY

Marketing Research TypesMarketing Research Types

Basic Research

Applied Research

BASIC RESEARCHBASIC RESEARCH

• ATTEMPTS TO EXPAND THE LIMITS OF KNOWLEDGE.

• NOT DIRECTLY INVOLVED IN THE SOLUTION TO A PRAGMATIC PROBLEM

APPLIED RESEARCHAPPLIED RESEARCH

CONDUCTED WHEN A DECISION MUST BE MADE ABOUT A SPECIFIC REAL-LIFE PROBLEM

SCIENTIFICSCIENTIFIC METHODMETHOD

The analysis and interpretation of empirical evidence (facts from observation or experimentation) to confirm or disprove prior conceptions

MARKETING CONCEPTMARKETING CONCEPT

• CENTRAL IDEA IN MARKETING

• EVOLVED OVER TIME

• NOT PRODUCTION-ORIENTED

• MARKETING-ORIENTED

Marketing ConceptMarketing Concept

ConsumerOriented

Long RunProfitability

Cross Functional,Integrated and

Coordinated Effort

Marketing Research is a means for implementing Marketing Concepts

STAGES IN DEVELOPING AND STAGES IN DEVELOPING AND IMPLEMENTING A MARKETING IMPLEMENTING A MARKETING

STRATEGYSTRATEGY

• Identifying and evaluating opportunities

• Analyzing market segments and selecting target markets

• Planning and implementing a marketing mix

• Analyzing market performance

Marketing Strategy Stage

1. Identifying and Evaluating Opportunities

2. Analyze market Segments and Select Target Markets

3. Plan and Implement a Marketing Mix

4. Analyze Marketing Performance

Example of Market Research

•Mattel Toys investigates desires for play experiences•MTV, monitoring demographic trends, learns the Hispanic market is growing rapidly

•Cadillac investigates buyers’ demographic characteristics

•Price: Safeway does a competitive pricing analysis•Distribution: Caterpillar Tractor Co. investigates dealer service program.•Product: Oreo conducts taste test, Oreo cookie vs. Chips Ahoy•Promotion: How may consumers recall “Always Coca Cola!”

•This year’s market share is compared to last year’s.

PERFORMANCE-MONITORING PERFORMANCE-MONITORING RESEARCHRESEARCH

• RESEARCH THAT REGULARLY PROVIDES FEEDBACK FOR EVALUATION AND CONTROL

• INDICATES THINGS ARE OR ARE NOT GOING AS PLANNED

• RESEARCH MAY BE REQUIRED TO EXPLAIN WHY SOMETHING “WENT WRONG”

Determining When to Conduct Marketing Research

Is sufficient time available before

a managerial decision must be made?

Is the information already on hand

inadequate for makingthe decision?

Is the decision of considerable strategicor tactical importance?

Does the value of theresearch informationexceed the cost of

conducting research?

ConductingMarketingResearch

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 Determining When to Conduct Marketing ResearchMarketing Research

• TIME CONSTRAINTS

• AVAILABILITY OF DATA

• NATURE OF THE DECISION

• BENEFITS VERSUS COSTS

Potential value of a marketing research effort should exceed itsestimated costs

Value

• Decreased Certainty• Increased Likelihood of a Correct Decision• Improved Marketing Performance and Resulting Higher Profits

Costs• Research Expenditures• Delay of Marketing Decision and Possible Disclosure of Information to Rivals• Possible Erroneous Research Results

GLOBAL RESEARCHGLOBAL RESEARCH

• Marketing Research is increasingly global

• Market knowledge is essential

• A.C. Nielsen - more that 60% international business