Chapter One The Role of Marketing Research in Management Decision Making Chapter One Copyright © 2002 South-Western College Publishing Co.

Learning Objectives 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. 5. To learn when marketing research should and should not be conducted.

Learning Objectives 6. To understand the history of marketing research. 7. To examine career opportunities in marketing research.

(1) a consumer orientation (2) a goal orientation To review the marketing concept and the marketing mix. The Nature of Marketing Marketing: The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services. The Role of Market Research in Decision Making The Profound Impact of the Internet The Marketing Concept (1) a consumer orientation (2) a goal orientation (3) a systems orientation Deciding Whether to Conduct Market Research The History and Future of Marketing Research

The External Marketing Environment To comprehend the marketing environment. The Nature of Marketing Identifying Target Markets and Researching the Marketing Mix: The Opportunistic Nature of Marketing Research The Role of Market Research in Decision Making A marketing mix: The unique blend of product/service, pricing, promotion, and distribution strategies designed to reach a specific target market. The Profound Impact of the Internet Deciding Whether to Conduct Market Research The External Marketing Environment The History and Future of Marketing Research Altering the marketing mix because of changes.

Marketing Research Defined To define marketing research. The Nature of Marketing 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. The Role of Market Research in Decision Making The Profound Impact of the Internet The Importance of Marketing Research to Management Deciding Whether to Conduct Market Research descriptive function diagnostic function predictive function The History and Future of Marketing Research

The Unrelenting drive for Quality and Customer Satisfaction To understand the importance of marketing research. The Nature of Marketing The Unrelenting drive for Quality and Customer Satisfaction The Role of Market Research in Decision Making The Paramount Importance of Keeping Existing Customers The Profound Impact of the Internet Managers Must Understand the Ever-Changing Marketplace Deciding Whether to Conduct Market Research The History and Future of Marketing Research

The Proactive Role of Marketing Research To understand the importance of marketing research. The Nature of Marketing The Proactive Role of Marketing Research The Role of Market Research in Decision Making A 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 The Profound Impact of the Internet Deciding Whether to Conduct Market Research The History and Future of Marketing Research

Applied Research versus Basic Research To understand the importance of marketing research. The Nature of Marketing Applied Research versus Basic Research The Role of Market Research in Decision Making Applied research To better understand the market. Basic research To expand the frontiers of knowledge. The Profound Impact of the Internet Deciding Whether to Conduct Market Research The History and Future of Marketing Research

Programmatic research To better understand the market. To understand the importance of marketing research. The Nature of Marketing The Nature of the Applied Research Depends on the Type of Research Conducted The Role of Market Research in Decision Making Programmatic research To better understand the market. Selective research To expand the frontiers of knowledge. Evaluative research To assess program performance The Profound Impact of the Internet Deciding Whether to Conduct Market Research The History and Future of Marketing Research

Advantages of Internet Surveys To understand the importance of marketing research. The Nature of Marketing Advantages of Internet Surveys Rapid Development, Real Time Reporting Dramatically Reduced Costs Readily Personalized Ease and Convenience Encourage Respondent Participation Contact the Hard-to-Reach The Role of Market Research in Decision Making The Profound Impact of the Internet Deciding Whether to Conduct Market Research The History and Future of Marketing Research

Other Uses of the Internet by Marketing Researchers To understand the importance of marketing research. The Nature of Marketing Other Uses of the Internet by Marketing Researchers The Role of Market Research in Decision Making Replacement of libraries and printed materials Distribution of requests for proposals and proposals Collaboration between the client and the research supplier Data management and on-line analysis Oral presentations of marketing surveys The Profound Impact of the Internet Deciding Whether to Conduct Market Research The History and Future of Marketing Research

In a number of situations it is best not to conduct market research. To learn when marketing research should and should not be conducted. The Nature of Marketing In a number of situations it is best not to conduct market research. The Role of Market Research in Decision Making A Lack of Resources lack of funds insufficient funds to implement decisions from research Research Results Would Not Be Useful Clients may be hard-pressed to use the information The Profound Impact of the Internet Deciding Whether to Conduct Market Research The History and Future of Marketing Research

Poor Timing in the Marketplace To learn when marketing research should and should not be conducted. The Nature of Marketing Poor Timing in the Marketplace Marketing research should not be undertaken if the opportunity for successful entry into a market has passed. The Decision Has Already Been Made Marketing research may be used improperly. The Role of Market Research in Decision Making The Profound Impact of the Internet Deciding Whether to Conduct Market Research The History and Future of Marketing Research

The wrong phenomena might be studied To learn when marketing research should and should not be conducted. The Nature of Marketing When Managers Cannot Agree on What They Need to Know to Make a Decision The wrong phenomena might be studied When Decision-Making Already Exists Further research may be redundant and costly When the Costs of Conducting Research Outweigh the Benefits Potential new products with large profit margins may have a greater potential The Role of Market Research in Decision Making The Profound Impact of the Internet Deciding Whether to Conduct Market Research The History and Future of Marketing Research

The Development of Market Research The Inception -- Pre-1900 To understand the history of marketing research. The Nature of Marketing The Development of Market Research The Inception -- Pre-1900 Early Growth -- 1900-1920 The Adolescent Years -- 1920-1950 The Maturing of Marketing Research -- 1950 to Present The Role of Market Research in Decision Making The Profound Impact of the Internet Deciding Whether to Conduct Market Research The History and Future of Marketing Research

The Decision Whether to Conduct Market Research Market Size Small Profit Margin Large Profit Margin Table 1.2 Cost likely to be greater than benefit; e.g., eyeglasses replacement screw Possible benefits greater than cost; e.g., ultra expensive sportswear Small Large Benefits likely to be greater than costs; e.g., Stouffers frozen entries Benefits likely to be greater than costs; e.g.,medical equipment

The End Copyright © 2002 South-Western College Publishing Co.