Marketing Research Aaker, Kumar, Day and Leone Tenth Edition Instructor’s Presentation Slides

Chapter Two Marketing Research in Practice 2 Marketing Research 10th Edition

Marketing Research in Practice Programmatic Research Develops market options through market segmentation, market opportunity analysis, or consumer attitude and product usage studies Selective Research Tests different decision alternatives such as new product concept testing, advertising copy testing, pretest marketing, and test marketing Evaluative Research Evaluation of performance of programs 3 Marketing Research 10th Edition

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 decision makers. 4 Marketing Research 10th Edition

Databases Contain 3 types of information: Recurring day-to-day information Intelligence relevant to the future strategy of the business Research studies that are not of a recurring nature 5 Marketing Research 10th Edition

Decision Support Systems (DSS) DSS models are developed and adapted to support each firm’s own decision problems Used to retrieve data, transform it into usable information, and disseminate it to users Allow managers to interact directly with database Provides a modeling function to help interpret retrieved information 6 Marketing Research 10th Edition

Marketing Decision Support Systems Combines marketing data from diverse sources into a single database, enabling product managers, sales planners, market researchers, financial analysts, and production schedulers to share information 7 Marketing Research 10th Edition

Marketing Decision Support Systems (Cont.) Routine comparisons of current performance against past trends on each of the key measures of effectiveness Periodic exception reports to assess which sales territories or accounts have not matched previous years’ purchases Special analyses to evaluate the sales impact of particular marketing programs, and to predict what would happen if changes were made 8 Marketing Research 10th Edition Managers’ need for decision-relevant information:

Characteristics of MDSS InteractiveFlexibleDiscovery orientedUser friendly 9 Marketing Research 10th Edition

Components of MDSS Database Reports and Displays Analysis capabilities Models 10 Marketing Research 10th Edition

Components of MDSS (Contd.) 11 Manager Modeling Analysis Display Database Environment Marketing Research 10th Edition

Comparison of Brand Performance with Industry Trend 12 Marketing Research 10th Edition

Gaining Insights from a MDSS 13 Regional Market Share Changes – Alpha and Beta Change in Beta’s Marketing Research 10th Edition Regional Market Share Changes – Alpha and Delta

Participants in Marketing Research Activities 14 Information Users Information Suppliers: Inside the Company Information Suppliers: Outside the Company General management Planning Marketing and sales managers Product managers Lawyers Marketing research department Sales analysis group Accounting department Corporate strategic planning Research consultants Marketing research suppliers Advertising agencies Marketing Research 10th Edition

Information Suppliers and Services 15 Marketing Research 10th Edition

Factors Influencing Choice of Information Supplier Internal personnel may not have skills or experience Outside help may be called in to boost internal capacity in response to urgent deadlines It may be cheaper to go outside Outside suppliers may have special facilities or competencies which would be costly to duplicate for a single study Political considerations Increased credibility of research used in litigation or in proceedings before regulatory or legislative bodies 16 Marketing Research 10th Edition

Growth in Research Spending in United States 17 Source: Jack Honomichl, “Top 50 Report,” Marketing News, June 30, 2009: 13 Marketing Research 10th Edition

Type and Nature of Services Customized Services ▫Work with individual clients Syndicated Services ▫Routinely collect information on several different issues and provide it to firms that subscribe to their services (e.g., Nielsen television index) Standardized Services ▫Projects conducted in standard, pre-specified manner and supplied to several different clients. (e.g., Starch readership survey) 18 Marketing Research 10th Edition

Type and Nature of Services (Contd.) Field Services ▫Suppliers concentrate only on collecting data for research projects Selective Services ▫Specialize in just one or two aspects of marketing research, mainly concerning data coding, data editing or data analysis Branded Products Services ▫Specialized data collection and analyses procedures to address specific research problems that are marketed as branded products 19 Marketing Research 10th Edition

Criteria For Selecting External Suppliers A thorough search for companies with an expertise in the area of study Selection of a small number of bidders on the basis of recommendations of colleagues or others with similar needs Personal interviews with potential project leaders, asking for examples of previous work, their procedures for working with clients, and ability to provide references Check of the references of each potential supplier, with special attention to comments on expertise, creativity, and the quality and adequacy of resources available 20 Marketing Research 10th Edition Steps in deciding if supplier can deliver promised data, advice, or conclusions:

International Market Research Industry United States 60% United Kingdom18% Japan 3% Rest of World 19% 21 Marketing Research 10th Edition Percentage of Worldwide Market Research Expenditure Per Country Source: Jack Honomichl, “Top firms consolidated grip on industry,” Marketing News, August 15, 2008: H2

Career Opportunities in Marketing Research Marketing Research Analyst Marketing Information Manager Project Manager Director of Market Research Research Account Manager Research Analyst Methodologist 22 Marketing Research 10th Edition