Essentials of Marketing Research Kumar, Aaker, Day Chapter One A Decision Making Perspective on Marketing Research

Essentials of Marketing Research Kumar, Aaker, Day Why study Marketing Research Careers –Research Organizations –Marketing & Business Consultancies –Marketing Departments of Businesses –Academia

Essentials of Marketing Research Kumar, Aaker, Day 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 advice.

Essentials of Marketing Research Kumar, Aaker, Day Why study Marketing Research Universal belief – numbers don’t lie Increase chances of taking the right decision Increase confidence in your recommendations

Essentials of Marketing Research Kumar, Aaker, Day What is Marketing Research? Examples Pain Relievers Gentleness Effectiveness Tylenol Private-label Aspirin Anacin Bayer Excedrin Nuprin Advil

Essentials of Marketing Research Kumar, Aaker, Day Definition of Marketing Research Marketing research is the –systematic (pre-planned) and objective (measurable) –identification, collection, analysis, and dissemination of information (information goes from market to organization) –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

Essentials of Marketing Research Kumar, Aaker, Day 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

Essentials of Marketing Research Kumar, Aaker, Day Aspect of business environment? Interested business? Depletion of forest cover Increased demand for gasoline in China and India Tough vehicle emission laws in California Fed drops interest rates by a quarter of a point Dow Jones rises by 100 points Consumers increasingly prefer to buy online Increasing trend in downloading songs from the Internet Growing popularity of satellite radio Increased duties on European cars

Essentials of Marketing Research Kumar, Aaker, Day Case: MP3 players Identify at least one aspect of the external environment I-Pod would be interested in researching: –Economic –Technological –Buyer behavior –Market –Legal

Essentials of Marketing Research Kumar, Aaker, Day 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?

Essentials of Marketing Research Kumar, Aaker, Day 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? Who are our primary competitors? What opportunities exist with distribution channels?

Essentials of Marketing Research Kumar, Aaker, Day 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

Essentials of Marketing Research Kumar, Aaker, Day 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?

Essentials of Marketing Research Kumar, Aaker, Day 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

Essentials of Marketing Research Kumar, Aaker, Day 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

Essentials of Marketing Research Kumar, Aaker, Day Strategy development – Common Marketing Research Questions What our the business objectives –Sales Profits –Market share –Service objectives –Customer satisfaction –Attitudes, etc.

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

Essentials of Marketing Research Kumar, Aaker, Day Common Questions Segmentation – which segment to target Product – How should the product be positioned Distribution – exclusive / mass distribution Advertising – what appeals should be used

Essentials of Marketing Research Kumar, Aaker, Day 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 can it be measured

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

Essentials of Marketing Research Kumar, Aaker, Day Common questions - Implementation Did the marketing program achieve its objectives Should the marketing program be modified, continued or terminated

Essentials of Marketing Research Kumar, Aaker, Day 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