1. Chapter One Copyright © 2006 McGraw-Hill/Irwin Marketing Research For Managerial Decision Making

2. McGraw-Hill/Irwin 2 It’s a Jeep Thing, You Wouldn’t Understand Definition of Marketing Research –American Marketing Association Marketing Research—systematic process –Designing methods for collecting information –Managing the information collection process –Analyzing and interpreting results –Communicating findings to decision markers Value of Marketing Research Describe and explain the impact marketing research has on marketing decisions

3. McGraw-Hill/Irwin 3 Purpose of Marketing Right Fit –To the right people –At the right place and time –With the right price –Through the use of the right blend of promotional techniques Uncertainty Demonstrate how marketing research fits into the marketing planning process Relationship Marketing & Marketing Research Process

4. McGraw-Hill/Irwin 4 Relationship Marketing Three component for Success in Relationship Marketing –Knowledge of the market –Effective training programs –Employee empowerment and teamwork Relationship Marketing & Marketing Research Process Demonstrate how marketing research fits into the marketing planning process

5. McGraw-Hill/Irwin 5 Customer Relationship Management (CRM) Customer/market knowledge –Demographics –Psychographics –Buying and service history –Preferences –Complaints –All other communications the customer has with the company Relationship Marketing & Customer Relationship Mgmt Demonstrate how marketing research fits into the marketing planning process

6. McGraw-Hill/Irwin 6 Data Integration Information Technology –Basic reporting on customers –Data mining –Statistical analysis procedures –Data visualization Creating Customer Profiles Demonstrate how marketing research fits into the marketing planning process Relationship Marketing & Customer Relationship Mgmt

7. McGraw-Hill/Irwin 7 Market-planning Framework –Broad Decision Which new markets to penetrate Which products to introduce Which new business opportunities to pursue Demonstrate how marketing research fits into the marketing planning process Marketing Planning and Marketing Research

8. McGraw-Hill/Irwin 8 –Narrow Based Decisions Advertising effectiveness Product positioning Sales tracking Monitoring performance Anticipating and initiating changes in marketing practices Accurate Information To Make the Right Decision Demonstrate how marketing research fits into the marketing planning process Marketing Planning and Marketing Research

9. McGraw-Hill/Irwin 9 Demonstrate how marketing research fits into the marketing planning process Exhibit 1.1

10. McGraw-Hill/Irwin 10 Situation Analysis –Locate and identify new market opportunities –Identify groups of customers –Identify existing and potential competitors Demonstrate how marketing research fits into the marketing planning process Marketing Situation Analysis

11. McGraw-Hill/Irwin 11 Market Analysis –Content Analysis –In-Depth Interviews –Formal Rating Procedures Market Segmentation Competitive Analysis –Importance-performance analysis Price Product performance Product quality Accuracy of shipping and delivery Convenience of store location Demonstrate how marketing research fits into the marketing planning process Marketing Situation Analysis

12. McGraw-Hill/Irwin 12 Target Marketing Analysis –New-product opportunities –Demographics, attitudinal or behavioral characteristics –User profiles, usage patterns, and attitude –Effectiveness of a firm’s current marketing program Demonstrate how marketing research fits into the marketing planning process Marketing Strategy Design

13. McGraw-Hill/Irwin 13 Demonstrate how marketing research fits into the marketing planning process Exhibit 1.2

14. McGraw-Hill/Irwin 14 Positioning New-Product Planning –Concept and product testing and test marketing –Product testing –Product tests Demonstrate how marketing research fits into the marketing planning process Marketing Strategy Design

15. McGraw-Hill/Irwin 15 Product Portfolio Analysis –Customer satisfaction studies Attitudes –Service quality studies Mystery shopper –Atmosphere –Customer service –Customer appreciation Describe and explain the impact marketing research has on marketing decisions Marketing Program Development

16. McGraw-Hill/Irwin 16 Distribution Decisions –Cycle time research –Retailing research –Logistic assessment Total cost analysis Service sensitivity analysis Demonstrate how marketing research fits into the marketing planning process Marketing Program Development

17. McGraw-Hill/Irwin 17 Demonstrate how marketing research fits into the marketing planning process Exhibit 1.3

18. McGraw-Hill/Irwin 18 Pricing Decision Demand Analysis Sales forecasting –Qualitative –Quantitative. Demonstrate how marketing research fits into the marketing planning process Marketing Program Development

19. McGraw-Hill/Irwin 19 Integrated Marketing Communication –Promotional Decisions Acquire information about the performance of a promotional program Employ the appropriate methodology Estimate adequate sample sizes Develop the proper scaling techniques Demonstrate how marketing research fits into the marketing planning process Marketing Program Development

20. McGraw-Hill/Irwin 20 Advertising Effectiveness –Qualitative or quantitative or both –Measure a particular ad’s ability To generate awareness of the product To communicate product benefits To create a favorable predisposition for the product Demonstrate how marketing research fits into the marketing planning process Marketing Program Development

21. McGraw-Hill/Irwin 21 Attitudinal Research –Cognitive approach –Affect approach –Behavioral approach Personal Selling –Measurable objectives –Non-measurable objectives Sales Tracking Demonstrate how marketing research fits into the marketing planning process Marketing Program Development

22. McGraw-Hill/Irwin 22 Demonstrate how marketing research fits into the marketing planning process Exhibit 1.4

23. McGraw-Hill/Irwin 23 Marketing Program Control –Product Analysis –Environmental Forecasting –Technology Describe and explain the impact marketing research has on marketing decisions Marketing Program Implementation and Control

24. McGraw-Hill/Irwin 24 Marketing Research Industry –Growth –Revenue Increases To postsale customer satisfaction studies To retail driven product scanning systems To database development for long-term brand management To international research studies Understand the scope and focus of the marketing research industry The Marketing Research Industry

25. McGraw-Hill/Irwin 25 Types of Marketing Research Firms –Internal –External –Customized –Standardized –Facilitating Agencies Advertising agencies Field services Independent consultants The Marketing Research Industry Understand the scope and focus of the marketing research industry

26. McGraw-Hill/Irwin 26 –Fundamental skills Communication skills Interpersonal skills Statistical skills –Skills for Marketing Researchers Ability to understand and interpret secondary data Presentation skills Foreign-language competency Negotiation skills Computer proficiency The Marketing Research Industry Understand the scope and focus of the marketing research industry Changing Skills For A Changing Industry

27. McGraw-Hill/Irwin 27 Unethical Activities by the Client/Research User –Soliciting bids with no intentions of hiring –Using the information from the proposals yourself –Promising a prospective research provider a long- term relationship or additional projects to get a low price Ethics in Marketing Research Practices Demonstrate ethical dimensions associated with marketing research

28. McGraw-Hill/Irwin 28 Unethical Activities by the Research Provider or Research Company –Unethical pricing practices –Do not provide the promised incentive –Create respondent abuse –Selling unnecessary research service –Other Unethical Activities by the Respondent Ethics in Marketing Research Practices Demonstrate ethical dimensions associated with marketing research

29. McGraw-Hill/Irwin 29 Demonstrate ethical dimensions associated with marketing research Exhibit 1.5

30. McGraw-Hill/Irwin 30 Demonstrate ethical dimensions associated with marketing research Exhibit 1.5 (continued)

31. McGraw-Hill/Irwin 31 Demonstrate ethical dimensions associated with marketing research Exhibit 1.5 (continued)

32. McGraw-Hill/Irwin 32 Five Major Trends –Increased emphasis on secondary data collection methods –Movement toward technology-related data management –Increased use of digital technology for information acquisition and retrieval –Broader international client base –Movement away from pure data analysis and toward data interpretation/information management Understand emerging trends and new skills associated with marketing research Emerging Trends

33. McGraw-Hill/Irwin 33 –The Value of Marketing Research –Relationship Marketing and the Marketing Research Process –Relationship Marketing and Customer Relationship Management –Marketing Planning and Marketing Research –Marketing Situation Analysis –Marketing Strategy Design Summary

34. McGraw-Hill/Irwin 34 –Marketing Program Development –Marketing Program Implementation and Control –The Marketing Research Industry –Ethics In Marketing Research Practices –Emerging Trends Summary