McGraw-Hill/Irwin

Copyright 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

Chapter 1 Marketing Research and Managerial Decision Making

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Learning Objectives
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3. 4.

5.
6.

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

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Business Goal: Were All Trying to Do the Same Thing

The only difference is how we do it!

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 advantage? A lasting competitive

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.
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Innovation
Knowledge Competitive Advantage

Information
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. . . the function that links an organization to its market through the gathering of information that improves marketing decisionmaking.

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Why Marketing Research?

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.
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Relationship Marketing
Developing long-term relationships with customers. Components of success . . .

Knowledge of the market Effective training programs

Employee empowerment & teamwork
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Customer Relationship Management (CRM)

Examples: Customer and Market Knowledge Demographics and Psychographics Buying and service history Preferences Complaints All other communications company has with customer.
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Marketing Planning & Decision Making

Market-planning framework . . .

Broad Decisions Which new markets to penetrate? Which products to introduce? Which new business opportunities to pursue? Narrow Decisions Advertising effectiveness Product positioning Sales tracking & performance monitoring Anticipating & initiating changes in marketing practices

Need accurate information to make the right decisions

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Marketing Decision Making and Related Marketing Research Tasks

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Situation Analysis
Locate and identify new market opportunities

Identify groups of customers Identify existing/potential competitors strengths and weaknesses

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Marketing Situation Analysis

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Marketing Situation Analysis

Competitive Analysis Market Analysis

Importance/Performance Product quality/performance Shipping & location Pricing, etc.

Content Analysis

Indepth Interviews
Formal rating and tracking approaches Segmentation

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Target Marketing Analysis

New product opportunities Demographics, attitudinal or behavioral characteristics User profiles, usage patterns, and attitudes Effectiveness of current marketing programs
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Target Market Characteristics and Associated Variables Measured in Target Market Analysis

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Marketing Strategy Design

Positioning . . .

Concept testing Product testing Test marketing

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Marketing Program Development

Product Portfolio Analysis

Customer
Attitudes Intentions

satisfaction studies

Service

quality studies
shopper studies

Mystery

Atmosphere Customer service Customer appreciation

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Marketing Program Development

Distribution Decisions
Cycle

time research Retailing research Logistic assessment

Total

cost analysis Service sensitivity analysis

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Information Collection Process through Retail Optical Scanning Techniques

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Marketing Program Development

Pricing decisions
Demand analysis Sales forecasting Integrated marketing communications Advertising effectiveness

Attitudinal research
Personal selling Sales tracking
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Marketing Program Development

Pricing Decisions
Potential

demand Price sensitivity Other factors

Demand Analysis Sales forecasting

Qualitative Quantitative.
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Marketing Program Development

Integrated Marketing Communications

Promotional

Acquire information about the

Decisions

effectiveness of promotional programs Use the appropriate methodology Estimate adequate sample sizes Develop proper scaling techniques
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Marketing Program Development

Advertising Effectiveness
Qualitative,

quantitative or both Measure a particular ads ability

To generate awareness of the

product To communicate product benefits To create a favorable predisposition for the product

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Marketing Program Development

Attitudinal Research

Cognitive approach Affect approach Behavioral approach Measurable objectives Non-measurable objectives

Personal Selling

Sales Tracking

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Computerized Sales Tracking Form Illustrating Key Sales Tracking Variables

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Marketing Program and Implementation Control

Product Analysis

Environmental Forecasting

Technology

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Marketing Research Firms

Internal External

Types

Standardized

Customized Facilitating ad agencies, field services, consultants

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Changing Skills for a Changing Industry

Fundamental Skills Researcher Skills

Communication Interpersonal Statistical Computer proficiency

Understand and interpret secondary data Making presentations Foreign language competency Negotiation Computer proficiency
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Examples Unethical Activities

Research Company Research User

Pricing practices Respondent abuse Not providing incentive Selling unnecessary services

Soliciting bids with no intention of hiring Using information from the proposals yourself Promising research company a long-term relationship or additional projects to get a low price

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Unethical Behavior
Respondents

Providing Dishonest Answers

Faking Behavior

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Code of Ethics of the American Marketing Association

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Emerging Trends in Marketing Research

More secondary data Technology-related data management

Five Major Trends

Evaluation of alternatives Purchase Postpurchase behavior

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