Marketing Research

A Decision Making Perspective on Marketing Intelligence

Business Intelligence BI is the ability to access data from multiple sources within an organization for the purpose of analysis. It links the disparate operation systems to the end users of the data, thus creating an environment with free flow of information. It offers a reliable barometer of the business performance. The applications of BI tools are immense and can be profitable across different functions of an organization.

Business Intelligence Finance & Accounting Intelligence Marketing Intelligence Marketing Research Define problem & info. needs Look for existing data Design study Collect & Analyze data Use & Report data for decision making Back-End Analysis HR Intelligence Operations Intelligence

Need for Marketing Intelligence MI focuses on the use of information as a source of strategic advantage. Need to have a thorough knowledge of customers, their attitudes, tastes and preferences. Need to analyze competition for benchmarking and making price, product, market and segment decisions.

Marketing Research Marketing Research, a critical part of Marketing Intelligence helps by providing accurate, relevant and timely (ART) information. Function of Marketing Research is to link an organization to its market through information Identify and define marketing opportunity and problems Generate, redefine and evaluate marketing actions Monitor marketing performance Improve understanding of marketing as a process

Role of Market Research Specifies information required Designs method for collecting information Manages and implements data collection process Interprets results & communicates findings

Marketing Information System A continuing and interacting structure of people, equipment and procedures designed to gather, sort, analyze, evaluate, and distribute pertinent, timely and accurate information to marketing decision making MIS Uses 3 Types of Information Recurring market and accounting data from market analysis and accounting activities Intelligence relevant to future strategy of business Marketing research studies not of a recurring nature

Role of Marketing Research in Managerial Decision Making Four Stages of Market Planning Process Situation analysis Strategy development Marketing program development Implementation

Situation Analysis Analysis of Market environment Market characteristics Consumer behavior Research Approaches Organize information obtained from prior studies (secondary) Focus groups

Strategy Development Market Research Provides Information to Assist Management With Three Critical Decisions What business should we be in? How will we compete? What are the objectives for the business?

Marketing Program Development Programs embrace specific tasks Action program usually focuses on a single objective in support of one element of overall business strategy

Implementation Starts with decision to proceed to a new program or strategy Commitment to objectives, budgets and timetables Specific measurable objectives must be set for all elements of marketing program "Did the elements achieve their objectives?" “Should the marketing program be continued, discontinued, revised or expanded?"

Factors Influencing Marketing Research Decisions Relevance Type and Nature of Information Sought Timing Availability of Resources Cost-benefit Analysis

Ethics in Marketing Research Ethics of the Sponsor Overt and covert purposes Dishonesty in dealing with suppliers Misuse of research information Ethics of the Supplier Violating client confidentiality Improper execution of research Respondents Abuse Falsifying answers

Conquering Latino Homes Hispanics account for nearly 13% of the U.S. population. Research shows that Latino households spend $600 billion of $1.3 trillion purchasing power of multicultural population. In 1998 only 2.5% of total advertising dollars in the United States was focused on Latinos. By 2050, Hispanic population would represent 25% of US population. Who can tell me what the problem is?

P & G Luring Women with their Feminine Toothpaste P & G has came out with “ Rejuvenating Effects ” a gender specific toothpaste targeting the female customers, who do 82% of the grocery shopping. The flavor and package of the product was decided on the basis of the results from a customer survey filled out by women. Though, the product is priced slightly higher than the other brands P & G hopes to make women think about the toothpaste in the same light as skin care lotions and shampoo.

Daimler Chrysler Exploring New Markets Daimler Chrysler entered the small car segment with Java in response to the increased demand for small fuel efficient cars. They envision a three car plan with an ultra small car at the bottom end, Java in the middle range and Mercedes A- class at the very top. The company’s marketing research indicated that Java would be a success due to high demand and as the resultant pollution from small cars is low. Who thinks they were right to try

Situation Analysis Strategy Development Marketing Program Development Implementation Understand the environment and the market Identify threats and opportunities Assess the competitive position Define the business scope and served market segments Establish competitive advantages Set performance objectives. Product and channel decision Communication decisions Pricing Personal selling decisions Performance monitoring Refining strategies and program