Exploring

Marketing Research

William G. Zikmund

Chapter 1:
The Nature of
Marketing Research
 The Nature of Marketing
Research
Marketing research is one of the principal
tools for answering questions because it:
Links the consumer, customer, and public to the
market through information used to identify
and define marketing
Generates, refines, and evaluates marketing
actions
Monitors marketing performance
Underlines the understanding of marketing as a
process
 Marketing Research Defined
The systematic and objective process of
generating information for aid in making
marketing decisions
The Marketing Research Process
This process includes:
specifying what information is required;
designing the method for collecting information;
managing and implementing the collection of data;
analyzing the results; and
communicating the findings and their
implications.
 I dont know
if we should
enter the
Information Australian
Reduces Market?

Uncertainty
It aint the things we dont know
that gets us in trouble. Its the
things we know that aint so.
Artemus Ward
Marketing Research Types

Basic research

Applied research
 Basic Research
Attempts to expand the limits of knowledge
Not directly involved in the solution to a
pragmatic problem
 Basic Research Example
Do consumers experience cognitive
dissonance in low-involvement situations?
 Applied Research
Conducted when a decision must be made
about a specific real-life problem
 Applied Research Example
Should McDonalds add Italian pasta dinners
to its menu?
Marketing research told McDonalds it
should not?
Should Procter & Gamble add a high-priced
home teeth bleaching kit to its product line?
Research showed Crest Whitestrips would
sell well at a retail price of $44
 Scientific Method
The analysis and interpretation of empirical
evidence (facts from observation or
experimentation) to confirm or disprove
prior conceptions
 Marketing Concept
Central idea in marketing
Evolved over time
Not production-oriented
Marketing-oriented
 Marketing Concept

Consumer Long Run

Oriented Profitability

Cross-Functional
Effort
 Keeping Customers
and Building Relationships
RELATIONSHIP MARKETING - the idea
that a major goal of marketing is to build
long-term relationships with the parties who
contribute to the companys success.
Marketers want customers for life.
Managing the relationships that will bring
about additional exchanges
 Total Quality Management
Much in common with marketing concept
Focus on integrating customer-driven
quality throughout the organization.
Stresses continuous improvement
 Stages in Developing and
Implementing a Marketing Strategy
Identifying and evaluating opportunities
Analyzing market segments and selecting
target markets
Planning and implementing a marketing
mix
Analyzing market performance
 Identifying and Evaluating
Opportunities
Examples
Mattel Toys investigates desires for play
experiences
Home cooking is on the decline. Purchase
of precooked home replacement meals is
on the rise.
Number of investors trading stock on the
Internet is growing.
 Analyze Market Segments and
Select Target Markets-Examples
Cadillac investigates buyers demographic
characteristics
MTV, monitoring demographic trends, learns the
Hispanic audience is growing rapidly
Sears learns women, age 25-54 with average
household income of $38,000, are core customers.
Targets this market with "The Good Life at a
Great Price. Guaranteed. Sears."
 Plan and Implement
a Marketing Mix
Price: Safeway does a competitive pricing analysis
Distribution: Caterpillar Tractor Co. investigates
dealer service program.
Product: Oreo conducts taste test, Oreo cookie vs.
Chips Ahoy
Promotion: How many consumers recall the Life
Tastes Good. Coca Cola! slogan?
Analyze Marketing Performance
This years market share is compared to last
years.
Did brand image change after new
advertising?
 Performance-monitoring
Research
Research that regularly provides feedback
For evaluation And control
Indicates things are Or are not going as
planned
Research may be required To explain why
something went wrong
 Determining When to Conduct
Marketing Research
Time constraints
Availability of data
Nature of the decision
Benefits versus costs
 Determining When to Conduct
Marketing Research
Time Constraints Availability of Data Nature of the Decision Benefits vs. Costs
Is the Does the
Information
Is sufficient Yes Yes decision of Yes information Yes Conduct
already on
time
hand
strategic value Marketing
available? or tactical exceed the Research
inadequate?
importance? research cost?

No No No No

Do Not Conduct Marketing Research

 Value versus Costs
Potential Value of a Marketing Research
Effort Should Exceed Its Estimated Costs
 Value Should Exceed
Estimated Costs
Costs
Value Research
expenditures
Decreased certainty Delay of marketing
Increased likelihood decision and
of a correct decision possible disclosure
Improved marketing of information to
performance and rivals
resulting higher Possible erroneous
profits research results
 Marketing Research in the 21st
Century
Increased globalization
Growth of the Internet and other
information technologies
 Global Research
Business Research is increasingly global
Market knowledge is essential
A.C. Nielsen - more that 67% international
business
 Global Marketing Research
General information about country -
economic conditions and political climate
Cultural and consumer factors
Market and competitive conditions -
demand estimation
 The Internet
is Transforming Society
Time is collapsing.
Distance is no longer an obstacle.
Crossing oceans is only a mouse click away.
People are connected 24 hours a day, seven
days a week.
"Instantaneous" has a new meaning.
 Internet Research
Seeking facts and figures about an issue
Surveys on Web sites