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1-2 Chapter 1 Marketing Research and Managerial Decision Making

Describe the impact of marketing research on marketing decisions. 2. Demonstrate the relationship between marketing research and marketing planning. 3. Provide examples of marketing research studies. 4. Understand the scope and focus of the marketing research industry. 5. Explain the ethical dimensions of marketing research. 6. Discuss emerging trends and new skills needed in marketing research. Learning Objectives

1-4 Business Goal: We’re All Trying to Do the Same Thing The only difference is how we do it!

1-5 … The only true competitive advantage comes from the understanding you have of your customer that your competitors do not have! This information has to come from the customer – most often from planned marketing research programs. A lasting competitive advantage? A lasting competitive advantage?

1-6 InnovationInnovation Knowledge InformationInformation CompetitiveAdvantageCompetitiveAdvantage

the function that links an organization to its market through the gathering of information that improves marketing decision- making.... the function that links an organization to its market through the gathering of information that improves marketing decision- making. …

1-8 Managers often make decisions that require additional information. Marketing research is needed to obtain, analyze and interpret information for management. This challenge has increased in recent years due to an explosion in data. Why Marketing Research?

1-9 Relationship Marketing Knowledge of the market Developing long-term relationships with customers. Components of success... Developing long-term relationships with customers. Components of success... Effective training programs Employee empowerment & teamwork

1-10 Buying and service history Buying and service history Examples: Customer and Market Knowledge Demographics and Psychographics Demographics and Psychographics Preferences Preferences Complaints Complaints All other communications company has with customer. All other communications company has with customer. Customer Relationship Management (CRM)

1-11 Market-planning framework... Market-planning framework... Broad Decisions Broad Decisions Which new markets to penetrate? Which new markets to penetrate? Which products to introduce? Which products to introduce? Which new business opportunities to pursue? Which new business opportunities to pursue? Narrow Decisions Narrow Decisions Advertising effectiveness Advertising effectiveness Product positioning Product positioning Sales tracking & performance monitoring Sales tracking & performance monitoring Anticipating & initiating changes in marketing practices Anticipating & initiating changes in marketing practices Need accurate information to make the right decisions Need accurate information to make the right decisions Marketing Planning & Decision Making

1-12 Marketing Decision Making and Related Marketing Research Tasks

1-13 Locate and identify new market opportunities Identify groups of customers Identify existing/potential competitors’ strengths and weaknesses Situation Analysis

1-14 Marketing Situation Analysis

1-15 Marketing Situation Analysis Product quality/performance Shipping & location Competitive Analysis Importance/PerformanceImportance/Performance Pricing, etc. Content Analysis Market Analysis Indepth Interviews Formal rating and tracking approaches SegmentationSegmentation

1-16 Effectiveness of current marketing programs New product opportunities Target Marketing Analysis Demographics, attitudinal or behavioral characteristics User profiles, usage patterns, and attitudes

1-17 Target Market Characteristics and Associated Variables Measured in Target Market Analysis

1-18 Marketing Strategy Design Positioning... Concept testing Concept testing Product testing Product testing Test marketing Test marketing

1-19 Product Portfolio Analysis Product Portfolio Analysis Customer satisfaction studies Customer satisfaction studies Attitudes Attitudes Intentions Intentions Service quality studies Service quality studies Mystery shopper studies Mystery shopper studies Atmosphere Atmosphere Customer service Customer service Customer appreciation Customer appreciation Marketing Program Development

1-20 Distribution Decisions Distribution Decisions Cycle time research Cycle time research Retailing research Retailing research Logistic assessment Logistic assessment Total cost analysis Total cost analysis Service sensitivity analysis Service sensitivity analysis Marketing Program Development

1-21 Information Collection Process through Retail Optical Scanning Techniques

1-22 Pricing decisions Pricing decisions Demand analysis Demand analysis Sales forecasting Sales forecasting Integrated marketing communications Integrated marketing communications Advertising effectiveness Advertising effectiveness Attitudinal research Attitudinal research Personal selling Personal selling Sales tracking Sales tracking Marketing Program Development

1-23 Pricing Decisions Pricing Decisions Potential demand Potential demand Price sensitivity Price sensitivity Other factors Other factors Demand Analysis Demand Analysis Sales forecasting Sales forecasting Qualitative Qualitative Quantitative. Quantitative. Marketing Program Development

1-24 Integrated Marketing Communications Integrated Marketing Communications Promotional Decisions Promotional Decisions Acquire information about the effectiveness of promotional programs Acquire information about the effectiveness of promotional programs Use the appropriate methodology Use the appropriate methodology Estimate adequate sample sizes Estimate adequate sample sizes Develop proper scaling techniques Develop proper scaling techniques Marketing Program Development

1-25 Advertising Effectiveness Advertising Effectiveness Qualitative, quantitative or both Qualitative, quantitative or both Measure a particular ad’s ability Measure a particular ad’s ability To generate awareness of the product To generate awareness of the product To communicate product benefits To communicate product benefits To create a favorable predisposition for the product To create a favorable predisposition for the product Marketing Program Development

1-26 Attitudinal Research Attitudinal Research Cognitive approach Cognitive approach Affect approach Affect approach Behavioral approach Behavioral approach Personal Selling Personal Selling Measurable objectives Measurable objectives Non-measurable objectives Non-measurable objectives Sales Tracking Sales Tracking Marketing Program Development

1-27 Computerized Sales Tracking Form Illustrating Key Sales Tracking Variables

1-28 Marketing Program and Implementation Control ProductAnalysisProductAnalysisEnvironmentalForecastingEnvironmentalForecasting TechnologyTechnology

1-29 Marketing Research Firms TypesTypesInternalInternalExternalExternal StandardizedStandardized CustomizedCustomized Facilitating – ad agencies, field services, consultants

1-30 Changing Skills for a Changing Industry Understand and interpret secondary data Researcher Skills Making presentations Foreign language competency InterpersonalInterpersonal StatisticalStatistical Fundamental Skills CommunicationCommunication Computer proficiency NegotiationNegotiation

1-31 Examples – Unethical Activities Soliciting bids with no intention of hiring Research User Using information from the proposals yourself Promising research company a long-term relationship or additional projects to get a low price Respondent abuse Not providing incentive Research Company Pricing practices Selling unnecessary services

1-32 Unethical Behavior RespondentsRespondentsProvidingDishonestAnswersProvidingDishonestAnswersFakingBehaviorFakingBehavior

1-33 Code of Ethics of the American Marketing Association

1-34 Emerging Trends in Marketing Research Postpurchase behavior behaviorPostpurchase PurchasePurchase Evaluation of alternatives Evaluation Technology-related data management Technology-related More secondary data FiveMajorTrendsFiveMajorTrends