Chapter One Copyright © 2006 John Wiley & Sons, Inc. Copyright © 2006 John Wiley & Sons, Inc. The Role of Marketing Research in Management Decision Making

John Willey & Son, Inc 2 1.To review the marketing concept and the marketing mix 2.To comprehend the marketing environment within which managers must make decisions 3.To define marketing research 4.To understand the importance of marketing research in shaping marketing decisions Learning Objectives

John Willey & Son, Inc 3 5.To learn when marketing research should and should not be conducted 6.To learn how the Internet is changing marketing research 7.To understand the history of marketing research Learning Objectives

John Willey & Son, Inc 4 To review the marketing concept and the marketing mix. Nature of Marketing Marketing –The process of planning and executing the conception, pricing promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organization objectives Marketing Concept 1.Consumer Orientation 2.Goal Orientation 3.Systems Orientation

John Willey & Son, Inc 5 Opportunistic Nature of Marketing Research –Identify the target –Marketing mix The External Marketing Environment –Marketing research is the key to understanding the environment –Provides information for altering marketing mix –Identifies new opportunities To review the marketing concept and the marketing mix. Nature of Marketing

John Willey & Son, Inc 6 To define marketing research. Marketing Research and Decision Making Marketing Research Defined –The planning, collection, and analysis of data relevant to market decision making and communication of the results of this analysis to management.

John Willey & Son, Inc 7 The Importance of Marketing Research to Management –Descriptive function –Diagnostic function –Predictive function Unrelenting Drive for Quality and Customer Satisfaction –Key competitive weapons of 2000s –Quality should not be achieved at expense of customer service –Return on Quality—new goal of companies To define marketing research. Marketing Research and Decision Making

John Willey & Son, Inc 8 –Paramount importance of existing customers Customer retention Marketing research –Used to understand customers’ needs and to satisfy those needs –Leads to customer satisfaction –Understand the ever-changing market place To define marketing research. Marketing Research and Decision Making

John Willey & Son, Inc 9 To understand the importance of marketing researching shaping marketing decision. Proactive Role of Marketing Research –Proactive management: alters the marketing mix to fit newly emerging patterns in economic, social, and competitive environments new opportunities develops a long-run marketing strategy –Proactive manager –Proactive marketing strategic plan Marketing Research and Decision Making

John Willey & Son, Inc 10 To understand the importance of marketing research. Applied Research versus Basic Research –Applied research To better understand the market. Basic research To expand the frontiers of knowledge. Nature of Applied Research –Programmatic research –Selective research –Evaluative research Marketing Research and Decision Making

John Willey & Son, Inc 11 To learn when marketing research should and should not be conducted. Decision to Conduct Marketing Research Decision to Conduct Marketing Research –Reasons not to conduct marketing research Resources are lacking Research results would not be useful Opportunity has passed The decision has already been made Managers cannot agree on what they need to know Decision-making information already exists The costs of conducting research outweigh the benefits

John Willey & Son, Inc 12 The Decision Whether to Conduct Market Research Cost likely to be greater than benefit; e.g., eyeglasses replacement screw Small Possible benefits greater than cost; e.g., ultra expensive sportswear Market SizeSmall Profit MarginLarge Profit Margin Benefits likely to be greater than costs; e.g., Stouffers frozen entries Benefits likely to be greater than costs; e.g.,medical equipment Large Exhibit 1.1

John Willey & Son, Inc 13 Impact of the Internet Growth Drivers of the Internet –Provides more rapid access –Improves response time to customer needs –Increases follow-up studies and longitudinal research –Creates cost cutting opportunities Profound Impact of the Internet on Marketing Research To learn how the Internet is changing marketing research

John Willey & Son, Inc 14 Internet Surveys Have Several Specific Advantages –Rapid development, real-time reporting –Dramatically reduced costs –Personalization –Higher response rates –Ability to contact the hard-to-reach To learn how the Internet is changing marketing research Profound Impact of the Internet on Marketing Research

John Willey & Son, Inc 15 Internet Enhances the Research Process and Dissemination of Information –Virtually replacement of printed material –Distributions of request for proposals (RFPs) and the proposals themselves –Collaboration between effected parties –Data management and online analysis –Publishing and distribution of reports –Online presentation To learn how the Internet is changing marketing research Profound Impact of the Internet on Marketing Research

John Willey & Son, Inc 16 –Marketing Concept –External Marketing Environment –Marketing Research Defined –Proactive Role of Marketing Research –Applied Research vs. Basic Research –When Not To Conduct Research –Advantages of Internet Surveys SUMMARY

John Willey & Son, Inc 17 The End Copyright © 2006 John Wiley & Sons, Inc.