Chapter One

The Role of
Marketing Research
in Management
Decision Making

Copyright © 2004
John Wiley & Sons, Inc.
 Learning Objectives Learning Objective

1. To review the marketing concept and the

marketing mix
2. To comprehend the marketing environment
within which managers must make decisions
3. To define marketing research
4. To understand the importance of marketing
research in shaping marketing decisions

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Learning Objectives Learning Objective

5. To learn when marketing research should and

should not be conducted
6. To learn how the Internet is changing
marketing research
7. To understand the history of marketing
research

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 Learning Objective
Nature of Marketing To review the marketing concept
and the marketing mix.

• Marketing
– The process of planning and executing the
conception, pricing promotion, and distribution
of ideas, goods, and services to create exchanges
that satisfy individual and organization objectives
• Marketing Concept
1. Consumer Orientation
2. Goal Orientation
3. Systems Orientation

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 Learning Objective
Nature of Marketing To review the marketing concept
and the marketing mix.

• Opportunistic Nature of Marketing Research

– Identify the target
– Marketing mix
• The External Marketing Environment
– Marketing research is the key to understanding
the environment
– Provides information for altering marketing mix
– Identifies new opportunities

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 Marketing Research Learning Objective

and Decision Making To define marketing research.

• Marketing Research Defined

– The planning, collection, and analysis of data
relevant to market decision making and
communication of the results of this analysis to
management.

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 Marketing Research Learning Objective
and Decision Making To define marketing research.

• The Importance of Marketing Research to Management

– Descriptive function
– Diagnostic function
– Predictive function
• Unrelenting Drive for Quality and Customer Satisfaction
– Key competitive weapons of 2000s
– Quality should not be achieved at expense of customer service
– Return on Quality—new goal of companies

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 Marketing Research Learning Objective
and Decision Making To define marketing research.

– Paramount importance of existing customers

• Customer retention
• Marketing research
– Used to understand customers’ needs and to satisfy those
needs
– Leads to customer satisfaction
– Understand the ever-changing market place

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 Marketing Research Learning Objective
and Decision Making To understand the importance of marketing
researching shaping marketing decision.

• Proactive Role of Marketing Research

– Proactive management:
• alters the marketing mix to fit newly emerging patterns in
economic, social, and competitive environments
• new opportunities
• develops a long-run marketing strategy
– Proactive manager
– Proactive marketing strategic plan

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 Marketing Research Learning Objective
To understand the importance of
and Decision Making marketing research.

• Applied Research versus Basic Research

– Applied research
• To better understand the market.

– Basic research
• To expand the frontiers of knowledge.

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 Decision to Conduct Learning Objective
To learn when marketing research
Marketing Research should and should not be conducted.

• Decision to Conduct Marketing Research

– Reasons not to conduct marketing research
• Resources are lacking
• Research results would not be useful
• Opportunity has passed
• The decision has already been made
• Managers cannot agree on what they need to know
• Decision-making information already exists
• The costs of conducting research outweigh the
benefits

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Exhibit 1.1
The Decision Whether to Conduct Market
Learning Research
Objective

Market Size Small Profit Margin Large Profit Margin

Small Cost likely to be Possible benefits

greater than benefit; greater than cost;
e.g., eyeglasses e.g., ultra expensive
replacement screw sportswear

Large Benefits likely to be Benefits likely to be

greater than costs; greater than costs;
e.g., Stouffers frozen entries e.g.,medical equipment

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Profound Impact of the Internet Learning Objective
on Marketing Research To learn how the Internet is changing
marketing research

• Impact of the Internet

• Growth Drivers of the Internet
– Provides more rapid access
– Improves response time to customer needs
– Increases follow-up studies and longitudinal
research
– Creates cost cutting opportunities

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Profound Impact of the Internet Learning Objective
on Marketing Research To learn how the Internet is changing
marketing research

• Internet Surveys Have Several Specific

Advantages
– Rapid development, real-time reporting
– Dramatically reduced costs
– Personalization
– Higher response rates
– Ability to contact the hard-to-reach

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Profound Impact of the Internet Learning Objective
on Marketing Research To learn how the Internet is changing
marketing research

• Internet Enhances the Research Process and

Dissemination of Information
– Virtually replacement of printed material
– Distributions of request for proposals (RFPs)
and the proposals themselves
– Collaboration between effected parties
– Data management and online analysis
– Publishing and distribution of reports
– Online presentation

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 Development of Marketing Learning Objective
To understand the history
Research
of marketing research

• The Inception—Pre-1900
• Early Growth—1920-1950
• The Mature Years—1950 to present

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 Learning Objective
SUMMARY

– Marketing Concept
– External Marketing Environment
– Marketing Research Defined
– Proactive Role of Marketing Research
– Applied Research vs Basic Research
– When Not To Conduct Research
– Advantages of Internet Surveys
– The Development of Marketing Research

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 Learning Objective

The End

Copyright © 2004 John Wiley & Sons, Inc.

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