A Decision Making Perspective on Marketing Intelligence

Marketing Research
Aaker, Kumar, Day
8th Edition
Instructor’s Presentation Slides

Marketing Research 8th Edition

Aaker, Kumar, Day
 A Decision Making Perspective on Marketing Intelligence

Chapter One

A Decision Making
Perspective on
Marketing Intelligence

Marketing Research 8th Edition

Aaker, Kumar, Day
 A Decision Making Perspective on Marketing Intelligence

Business Intelligence
• BI is the ability to access data from multiple
sources within an organization for the purpose of
analysis.
• It links the disparate operation systems to the
end users of the data, thus creating an
environment with free flow of information.
• It offers a reliable barometer of the business
performance.

Marketing Research 8th Edition

Aaker, Kumar, Day
 A Decision Making Perspective on Marketing Intelligence

BUSINESS INTELLIGENCE

Finance and Accounting Marketing Operations

HR Intelligence
Intelligence Intelligence Intelligence

Marketing Research

Define problems and info. needs

Look for existing data

Design study

Collect and Analyze data

Use and Report for decision making

Back-End Analysis

Marketing Research 8th Edition

Aaker, Kumar, Day
 A Decision Making Perspective on Marketing Intelligence

Need for Marketing Intelligence

• MI focuses on the use of information as a source
of strategic advantage.
• Need to have a thorough knowledge of
customers, their attitudes, tastes and
preferences.
• Need to analyze competition for benchmarking
and making price, product, market and segment
decisions.

Marketing Research 8th Edition

Aaker, Kumar, Day
 A Decision Making Perspective on Marketing Intelligence

Marketing Information System

• A continuing and interacting structure of people, equipment and procedures
designed to gather, sort, analyze, evaluate, and distribute pertinent, timely
and accurate information to marketing decision making
MIS Uses 3 Types of Information

– Recurring market and accounting data from market analysis and

accounting activities
– Intelligence relevant to future strategy of business
– Marketing research studies not of a recurring nature

Marketing Research 8th Edition

Aaker, Kumar, Day
 A Decision Making Perspective on Marketing Intelligence

Role of Marketing Research in Managerial

Decision Making

Four Stages of Market Planning Process

– Situation analysis
– Strategy development
– Marketing program development
– Implementation

Marketing Research 8th Edition

Aaker, Kumar, Day
 A Decision Making Perspective on Marketing Intelligence

Situation Analysis
Analysis of
– Market environment
– Market characteristics
– Consumer behavior
Research Approaches
– Organize information obtained from prior
studies (secondary)
– Focus groups
Marketing Research 8th Edition
Aaker, Kumar, Day
 A Decision Making Perspective on Marketing Intelligence

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?

Marketing Research 8th Edition

Aaker, Kumar, Day
 A Decision Making Perspective on Marketing Intelligence

Marketing Program Development

• Programs embrace specific tasks

• Action program usually focuses on a single
objective in support of one element of overall
business strategy

Marketing Research 8th Edition

Aaker, Kumar, Day
 A Decision Making Perspective on Marketing Intelligence

Implementation
• Starts with decision to proceed to a new program or strategy
• Commitment to objectives, budgets and timetables
• Specific measurable objectives must be set for all elements of
marketing program
• "Did the elements achieve their objectives?"
• “Should the marketing program be continued, discontinued, revised
or expanded?"

Marketing Research 8th Edition

Aaker, Kumar, Day
 A Decision Making Perspective on Marketing Intelligence

Factors Influencing Marketing

Research Decisions

• Relevance
• Type and Nature of Information Sought
• Timing
• Availability of Resources
• Cost-benefit Analysis

Marketing Research 8th Edition

Aaker, Kumar, Day
 A Decision Making Perspective on Marketing Intelligence

Ethics in Marketing Research

Ethics of the Sponsor
– Overt and covert purposes
– Dishonesty in dealing with suppliers
– Misuse of research information
Ethics of the Supplier
– Violating client confidentiality
– Improper execution of research
Respondents Abuse
– Falsifying answers

Marketing Research 8th Edition

Aaker, Kumar, Day
 A Decision Making Perspective on Marketing Intelligence

Conquering Latino Homes

• Hispanics account for nearly 13% of the U.S. population.
• Research shows that Latino households spend $600
billion of $1.3 trillion purchasing power of multicultural
population.
• In 1998 only 2.5% of total advertising dollars in the
United States was focused on Latinos.
• By 2050, Hispanic population would represent 25% of
US population.
• Who can tell me what the problem is?

Marketing Research 8th Edition

Aaker, Kumar, Day
 A Decision Making Perspective on Marketing Intelligence

P & G Luring Women with their Feminine

Toothpaste
• P & G has came out with “Rejuvenating Effects” a gender specific
toothpaste targeting the female customers, who do 82% of the
grocery shopping.

• The flavor and package of the product was decided on the basis of
the results from a customer survey filled out by women.

• Though, the product is priced slightly higher than the other brands P
& G hopes to make women think about the toothpaste in the same
light as skin care lotions and shampoo.

• Who thinks they were right to try.

Marketing Research 8th Edition

Aaker, Kumar, Day
 A Decision Making Perspective on Marketing Intelligence

Daimler Chrysler Exploring New Markets

• Daimler Chrysler entered the small car segment with Java in
response to the increased demand for small fuel efficient cars.

• They envision a three car plan with an ultra small car at the bottom
end, Java in the middle range and Mercedes A- class at the very
top.

• The company’s marketing research indicated that Java would be a

success due to high demand and as the resultant pollution from
small cars is low.

• Who thinks they were right to try

Marketing Research 8th Edition

Aaker, Kumar, Day
 A Decision Making Perspective on Marketing Intelligence

Situation Understand the environment and the market

Identify threats and opportunities
Analysis Assess the competitive position

Define the business scope and served market

Strategy segments
Development Establish competitive advantages
Set performance objectives.
Product and channel decision
Marketing Communication decisions
Program Pricing
Development Personal selling decisions

Performance monitoring
Implementation Refining strategies and program

Marketing Research 8th Edition

Aaker, Kumar, Day ©