A Decision Making Perspective on Marketing Research

Why study Marketing Research Careers –Research Organizations –Marketing & Business Consultancies –Marketing Departments of Businesses –Academia

Example: MR organizations in Charlotte

Situations where MR knowledge is essential Your boss wants to introduce a new product and calls you for advice. Your ad agency wants your business to buy an expensive ad campaign. Your MR consultants present their findings about why your sales are falling. Do you accept their reasons? Your boss wants to reduce prices and calls you for your thoughts.

Why study Marketing Research Increase chances of taking the right decision Increase confidence in your recommendations Quantitative research: –Universal belief – numbers don’t lie

What is Marketing Research? Examples Pain Relievers Gentleness Effectiveness Tylenol Private-label Aspirin Anacin Bayer Excedrin Nuprin Advil

Definition of Marketing Research Marketing research is the –systematic (pre-planned) and objective (measurable) –identification, collection, analysis, and dissemination of information (information collected by organization from market) –for the purpose of improving decision making (providing factual basis for taking a decision) –related to the identification of opportunities and solution of problems in marketing.

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

Situation Analysis The analysis of the environment in which the business operates –Market –Economy –Consumer and society –Technology –Legal –Political –Natural Usually focus on trends which impact the marketing situation

Situation Analysis – Common Marketing Research Questions Describing the market: How big is the existing market? How big is the potential market? How fast is the market growing? How brand loyal is the market? What competitive products exist? What is the supply situation in the market?

Situation Analysis – Common Marketing Research Questions Describing an organization’s market position: What market share does the company hold? What market segments exist and which do we serve? What new emerging segments do we observe?

Situation Analysis – Common Marketing Research Questions Describing buyer behavior: Who are our customers? (i.e., demographic, geographic, psychographic segments) How do buyers perceive our brand and competing brands? What is the repurchase rate for our brand and competing brands? How satisfied are customers with our brand? Where do customers buy? When do they buy? Why do they buy? How much do buyers like our brand?

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

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?

Strategy development – Common Marketing Research Questions What business should we be in: –What products should we offer –What technologies should we use –What market segments should we target –What distribution channels should we use

Strategy development – Common Marketing Research Questions How will we compete –How do we differentiate ourselves / our product from competition –What attributes do consumers consider to be important –How do we compare to competition

Strategy development – Common Marketing Research Questions What should be our business objectives –Sales / Profits –Market share –Customer satisfaction (self-survey or actual complaints) –Attitudes, etc. Which objective is a better indicator of our health

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

Common Questions Segmentation – which segment to target Product – How should the product be positioned Distribution – exclusive / mass distribution Advertising – what appeals should be used

Common Questions Personal selling – which customers should be approached personally Price – what price should be charged Branding – how can brand loyalty be increased Customer satisfaction – how satisfied are our customers?

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

Common questions - Implementation Did the marketing program achieve its objectives Should the marketing program be modified, continued or terminated?

Factors Influencing Marketing Research Decisions Availability of Data Is the information on hand inadequate? Do not conduct marketing research! Conduct Marketing Research Nature of Decision Is the decision of considerable importance? Benefits vs. Costs Does the value of the research exceed the cost? Time Constraints Is sufficient time available? Yes No