Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 1-1 Chapter One Overview of Marketing Research

Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 1-2 Learning Objectives  Define marketing research.  Demonstrate how marketing research fits into the strategic planning process.  Steps in the marketing research process.  The difference between data and information.

Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 1-3 Learning Objectives (cont…)  Examples of marketing research studies.  The components of a research proposal.  The characteristics used to evaluate a marketing research supplier.  The ethics in marketing research.

Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 1-4 Marketing Defined  Marketing can be defined as:  … a business process that seeks to maximise the return to owners of the firm by developing and implementing strategies to create a sustainable differential advantage and build relationships of trust with high-value customers...

Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 1-5 Marketing Research Defined  Marketing research can be defined as:  … the function that links an organization to its market through the generation of information. This information allows for the identification and definition of market-driven opportunities and problems...

Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 1-6 The Marketing Research Context  Marketing seeks to shift an organization towards attractive markets and position the firm in a competitive way to create a sustainable differential advantage:  Deliver maximum value to the stakeholders of the organization.  This entails planning and executing the development, pricing, promotion and distribution of products.

Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 1-7 The Decision Problem  Management has to decide on which course of action to take that will help accomplish a specific objective.

Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 1-8 Marketing Research and Strategic Planning  The marketing plan is the cornerstone of strategic planning.  These are the planning processes that focus on the utilisation of marketing resources and capabilities in attractive markets.  Marketing research is the basis of a superior marketing plan.

Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 1-9

Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 1-10 Market Segmentation Decisions  How to divide an attractive market into meaningful segments.  The objective is to:  Collect information about customer characteristics, product benefits, brand preferences and demographics.  These are related to purchase, behavioural and usage patterns, to develop market segmentation profiles.

Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 1-11 Target Market Characteristics  Demographics  Psychographics  Product usage  Brand preferences  Loyalty, awareness  Decision process  Size, frequency of purchase, likelihood to purchase,  Product involvement,  Heavy, medium and light users.

Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 1-12 Customer Analysis  Helps determine:  Which market segments to serve.  The most efficient way of serving the targeted group, through target market analysis.  Provides information on:  New product opportunities  Demographics  User profiles  The effectiveness of current strategies.

Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 1-13 Competitor Analysis  Opportunity assessment  Helps determine which market segments to serve.  Entails evaluating competitors’ strategies, strengths, limitations and future plans.

Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 1-14 Dynamic Potential Analysis of the External Environment  Involves collecting information on market segments to forecast potential changes.  Three approaches to collect data:  Content analysis  In-depth interviews  Formal rating procedures

Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 1-15 Brand Development  The process of establishing a general meaning or definition of the product offering that is consistent with the benefits customers need.  Accomplished by combining elements of the marketing mix to meet or exceed targeted customers’ expectations.

Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 1-16 Product Portfolio Decisions  Focuses on the total product line:  To assist in making decisions about reducing costs, and altering marketing mixes and product lines.  Includes:  Customer satisfaction studies.  Service quality studies focusing on the degree to which organisations meet service expectations.

Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 1-17 Product Development Decisions  Research tasks relate to:  Concept and product testing.  Test marketing.  The purpose is to determine:  If the new product is likely to be adopted.  How the product performs for the customer?  How the product can be improved to exceed customer expectations?

Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 1-18 Distribution Strategy  Relates to examining strategies that link producers with end users.  Includes:  Cycle time research  Retailing research  Logistics assessment

Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 1-19 Pricing Strategy  Involves:  Pricing new products, establishing pricing levels for test marketing, modifying prices for existing products.  Seeks to establish potential demand, price sensitivity, non-price factors and sales– price interactions.  Includes:  Demand analysis  Sales forecasting

Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 1-20 Integrated Marketing Communications  Relates to returns for communications and promotional campaigns.  Includes:  Advertising effectiveness studies, including awareness generated and perceived product benefits.  Attitudinal research, including cognition, affect and behavioural outcomes.  Image research  Sales tracking

Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 1-21 The Marketing Research Industry  Marketing research is a diverse profession.  Research providers may be internal or external:  Internal are within the client organization.  External providers: Can be more professional and objective.  Can provide specialised service.  Customised or standardised  Brokers or facilitators

Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 1-22 Data into information Data are the first hand responses. Data structures are the result of combining individual responses into groups of data. Information stems from analysis of the data structures. To provide decision makers with useable information

Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 1-23 Step 1: Determining the Scope for Marketing Research  Define the decision problem.  Specify the research question.  Define the research objective.  Evaluate the likely benefits of the expected information.

Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 1-24 Step 2: Select the Research Method  Research designs:  Secondary and primary data.  Exploratory, descriptive, causal design.  Qualitative and quantitative:  Sampling  Measurement

Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 1-25 Step 3: Collect and Prepare the Data Step 4: Analyse the Data Step 5: Transform the Analysis into Information

Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 1-26 Developing a Marketing Research Proposal  The written contract between the decision maker and the marketing researcher.  The activities needed to develop the research plan, to obtain the information and the costs.

Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 1-27 Developing a Marketing Research Proposal General Outline of a Research Proposal

Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 1-28 Developing a Marketing Research Proposal Research Activities normally itemised to reflect total research project costs

Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 1-29 Assessing the Research Company  Technical competency  Marketing knowledge  Reliability  Conformance to standards  Reputation

Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 1-30 Ethics in Marketing Research  Need to consider the interactions between:  Research information user  Research provider  The respondents

Copyright  2007 McGraw-Hill Pty Ltd PPTs t/a Marketing Research 2e by Hair, Lukas, Bush and Ortinau Slides prepared by Judy Rex 1-31 Ethics (cont…)  Ethical dilemmas  Unethical activities:  By the researcher  Within the research design  By the client  By the respondent  Code of ethics