05-Sep-22

Marketing research and marketing

Session 2
information management Chapter 3-4
Analyzing the marketing environment

Content
1. What is marketing research, marketing information
management?
2. How do marketing research and information help in
making decision?
3. What is the marketing environment and what are major
macro and microenvironment elements?

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1. What is marketing research and

marketing information management?

What is marketing research?

“Marketing Research is the planning, INDUSTRY
collection, and analysis of data
relevant to marketing decision B
making and the communication of MACRO
the results of this analysis to ENVIRONMENT COMPETITION
management.”
McDaniel Jr. and Gates (2009) A C

? MARKET & TARGET

CUSTOMER

E D
COMPANY

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Two areas of marketing research

Researching the immediate competitive

01 environment of the marketplace, including

customers, competitors, suppliers, distributors
Marketing and retailers => MARKET RESEARCH
research
02 Includes all the above plus:
- companies and their strategies for products
and markets
- the wider environment within which the
firm operates (e.g. political, social, etc)
Marketing research is the systematic
design, collection, analysis, and reporting of
data relevant to a specific marketing
situation facing an organization.

Marketing research budgets

1 - 2% of company sales = total budget

of this:

50% - 80% 20% - 50%

in-house externally
85% of Fortune 500 1. Syndicated - service research firms
companies have
2. Custom research firms
internal departments
3. Specialty research firms

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Top marketing research companies

Marketing research process

Baesens, 2015.

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Analytics level
How can we
make it happen?
Prescriptive
What will
Analytics
happen?
Predictive
Why did it
VALUE

Analytics
happen?
Diagnostic
What
Analytics
happened?
Descriptive
Analytics

DIFFICULTY

Market research: collecting data about

Market overview Customer profile Competitors
• Size, trends, growth rate, • Group age • Major competitors
profitability • Occupation, education (direct/substitutes)
• Major market areas • Location, income • Competitor
(geographic) • Needs, expectations, differentiation and
• Suppliers/intermediaries buying and consumption positioning
• Competition structure
behavior • Competitors 4Ps/7Ps
• Evolution and changes
• Segmentation • Competitors strength
/weakness

Secondary data: Collect / buy from existing sources

Primary data: Observation, interview, survey, social listening

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Secondary and Primary data

Company files, intranet, reports,

Inside
marketing information system,
company
Secondary people, sales, cost data
data
sources Internet, libraries, governments,
Outside
trade associations, universities,
company
private research organizations
All data
sources
Equipment (video, scanner, etc.);
Obser-
website analysis; personal
vation
Primary approaches
data
sources In-depth and focus group
Survey
interviews; online, mail, phone,
experiment
personal surveys; panels

7-11

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Managing marketing information

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Opportunity for today’s marketing researcher

and analyst
DIGITALIZATION – AUTOMATION TECHNOLOGY

Baesens, 2015.

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New context for marketing research and analyst

 Technology has created the ability for researcher to access respondents globally, collect and process insights
instantaneously, and peek inside the life of a respondents in real time whenever and wherever they happen to be.

 Integration of multiple data sources permits a holistic view of the person or situation

 Use of behavioral data, attitudinal data, and advanced analytics help brands make more strategic decisions in a
faster amount of time

 Self-service platforms allow firms to program their own short micro-surveys.

 Condensing the plan/execute/measure cycle into one continuous process of test and learn via real-time
feedback, and further collapsing the silos between those functions

 Technology permits a frictionless market research approach that engages respondents and delivers real insight.

 Tracking the online and mobile actions of consumers across all channels gives marketers access to real-time,
behavioral, and typographic data that is more powerful than any insight gleaned from focus groups or surveys.

 Smaller companies has the ability to understand their customer and competitors better via cheaper tools (online
survey, data visualization)

 Larger companies are able to combine traditional market research with machine-driven data sciences to gain
competitive advantage
Schmidt (2016), Market Research.com

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New tools for

researching the
competitors
• Facebook competitive analysis
• Facebook content analysis
• YouTube competitive analysis
• YouTube channel analysis
• Website analysis
•…
Source: Chuck Hemann and Ken Burbary,
Digital Marketing Analytics: Making Sense of
Consumer Data in a Digital World, Que. 2013
http://www.intellspot.com/web-competitive-intelligence/

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New tools for market analytics

• Free tools for collecting
insights through
• Search Data
• Google Trends
• YouTube Trends
• The Google AdWords
Keyword Tool
• Paid tools for collecting
insights through search data

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Source: Chuck Hemann and Ken Burbary, Digital Marketing Analytics: Making Sense of Consumer Data in a Digital World, Que. 2013

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Marketing research with Big Data

Growing quantity of data

e.g. social media, behavioral, video

Quickening speed of data

e.g. smart meters, process monitoring

Increase in types of data

e.g. app data, unstructured data

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2. How do marketing research

and information help in making
decision?

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MACRO-ENVIRONMENT MACRO-ENVIRONMENT

Micro-environment The company

•Competitors
. Goals and Values
•Customers
MARKETING . Resources and Capabilities
•Suppliers
. Structure and Systems
•Intermediaries
•Publics

Strategic planning: adapting the firm to take advantage of

opportunities in its constantly changing environment => creating value.
Tactical planning: tailoring offers to fit target market needs responding
to changes from the marketing environment => performing superior value

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Marketing performance Metrics and

KPIs to measure achievement, to track and
adjust strategic & tactical planning.

ACTION Environment threat

4Ps-7Ps
implementation
challenge posed by an
Market opportunity unfavorable trend or
an area of buyer need and development that, in the
interest that a company STRATEGY absence of defensive
has a high probability (STP process) marketing action,
of profitably would lead to
satisfying. lower sales
or profit
INFORMATION
(Market opportunity analysis)

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Marketing research: Scanning the environment

SITUATION ANALYSIS MARKET OPPORTUNITY

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Marketing research: tracking performance

• Who are the dissatisfied customer?
Measure & track • What are the main pain points faced by customers?
customer satisfaction • How is customer experience trending over time?
• What is the preferred channel to reach out to customer?

• What is impacting customer experience?

Identify key drivers
• Who are the best customers?
to customer
satisfaction • Which customers are at risk and needs immediate attention?
• What are customer sentiments, needs, and preferences?

• How to optimize service cost?

Recommend • What product features to enhance?
actionable insights • How to improve service agent productivity?
• How to sale at the point of service?

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Understanding customer insight, uncover

Description unmet need/underserved needs
Avoiding subjective/unbased
decisions
Explanation Optimizing resource allocation

Tracking market performance

Prediction

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3. What is the marketing

environment and what are major
macro and microenvironment
elements?

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The marketing environment

includes the actors and forces
that affect marketing
management’s ability to build and
maintain successful relationships
with target customers
both in the long term
and short term

https://opentextbc.ca/businessopenstax/chapter/understanding-the-business-environment/#bfig-003

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(i) Macro environment (PEST)

• Political/regulatory
(iv) Market and Customers
• Socio- Economic • Segmentation
• Technological • Target customer needs and expectation
• Global and societal • Trends
• … (v) Company
• Resources and capabilities
(ii) Industry & supply chain • Portfolio of offerings
• Market structure, size and growth • Product profitability and
• Suppliers, Intermediaries… competitiveness
• Trends and barriers/constraints

(iii) Competition
• Direct/potential competitors
• Substitute products
• Main competitors’ strengths and weaknesses,
• Competitive advantages

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Today realities

Deloitte (2013) The digital transformation of customer service

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Challenges faced by today’s marketing

decision makers

• Global, hypercompetitive business environment.

More demanding customers served by a greater number of competitors on a
global scale.
• Exploding volume of data
“We’re drowning in data. What we lack are true insights.”
• Need for faster decision making
Information overload and lack of time, yet decisions have to be made all the
time.
• Higher standards of accountability
Marketing expenditures have to be justified in the same way as other
investments.

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Can you answer these questions?

1. What is marketing research, marketing information

management?
2. How do marketing research and information help in
making decision?
3. What is the marketing environment and what are major
macro and microenvironment elements?

30

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