A Decision Making Perspective on Marketing Research

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• A Decision Making Perspective on Marketing
  Research

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Why study Marketing Research

• Careers
• Research Organizations (e.g. A.C. Nielsen, J.D.
  Power Associates, IRI, etc.)
• Marketing Business Consultancies (e.g. Arthur
  Andersen, Price Waterhouse, McKinsey Co, etc.)
• Marketing Departments of Businesses
• Academia

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Example MR organizations in Charlotte N.C.

1. Leibowitz Market Research-GroupNet Charlotte
2. Blumenthal Qualitative Research
3. FacFind, Inc.
4. KPC Research
5. 20/20 Research 
6. Marketing Analysts, Inc.(Branch)
7. MarketWise, Inc.
8. Metromark Focus Research (Branch)
9. AOC Marketing Research

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Situations where MR knowledge is essential

• Your boss wants to introduce a new product and
  calls you for advice.
• Your ad agency wants your business to buy an
  expensive ad campaign.
• Your MR consultants present their findings about
  why your sales are falling. Do you accept their
  reasons?
• Your boss wants to reduce prices and calls you
  for your thoughts.

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Why study Marketing Research

• Increase chances of taking the right decision
• Increase confidence in your recommendations
• Quantitative research
• Universal belief numbers dont lie

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What is Marketing Research?Examples
Gentleness

• Pain Relievers

• Tylenol

Effectiveness

• Bayer

• Advil

• Private-label
• Aspirin

• Nuprin

• Anacin

• Excedrin

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Definition of Marketing Research

• Marketing research is the
• systematic (pre-planned) and objective
  (measurable)
• identification, collection, analysis, and
  dissemination of information (information
  collected by organization from market)
• for the purpose of improving decision making
  (providing factual basis for taking a decision)
• related to the identification of opportunities
  and solution of problems in marketing.

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Role of Marketing Research in Managerial Decision
Making

• Four Stages of
• Market Planning Situation analysis
• Process
• Strategy development
• Marketing program development
• Implementation

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Situation Analysis

• The analysis of the environment in which the
  business operates
• Market (sector-specific e.g. demand and supply,
  production, etc.)
• Economy (e.g. money supply, inflation, BOP,
  interest rates, etc.)
• Consumer and society (buyer behavior, societal
  trends)
• Technology (obsolescence, innovations,
  inventions)
• Legal (laws regulating business)
• Political (govt. attitudes to business and
  specific sectors)
• Natural (effect of natural resources on business)
• Usually focus on trends which impact the
  marketing situation

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For Toyota Motor CompanyIdentify the business
environment

• Depletion of oil reserves
• Increasing GDP in China and India
• Tough vehicle emission laws in California
• Fed drops interest rates by a quarter of a point
• Dow Jones rises by 100 points
• Consumers prefer a hassle-free, no-bargaining car
  buying experience
• Volatile gas prices
• Breakthrough technologies in hybrid cars
• Increased duties on cars imported from Europe

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Case Starbucks

• Identify at least one aspect of the external
  environment Starbucks would be interested in
  researching
• Economic
• Technological
• Buyer behavior
• Market
• Legal

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Situation Analysis Common Marketing Research
Questions

• Describing the market
• How big is the existing market?
• How big is the potential market?
• How fast is the market growing?
• How brand loyal is the market?
• What competitive products exist?
• What is the supply situation in the market?

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Situation Analysis Common Marketing Research
Questions

• Describing an organizations market position
• What market share does the company hold?
• What market segments exist and which do we serve?
• What new emerging segments do we observe

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Situation Analysis Common Marketing Research
Questions

• Describing buyer behavior
• Who are our customers? (i.e., demographic,
  geographic, psychographic segments)
• How do buyers perceive our brand and competing
  brands?
• What is the repurchase rate for our brand and
  competing brands?
• How satisfied are customers with our brand?
• Where do customers buy? When do they buy? Why do
  they buy?
• How much do buyers like our brand?

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Role of Marketing Research in Managerial Decision
Making

• Four Stages of
• Market Planning Situation analysis
• Process
• Strategy development
• Marketing program development
• Implementation

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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?

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Strategy development Common Marketing Research
Questions

• What business should we be in
• What products should we offer (e.g. Why did Apple
  get into the music business?)
• What technologies should we use (e.g. Should the
  TV industry go the plasma monitors way or the LCD
  way? BluRay discs or HD DVDs?)
• What market segments should we target (e.g. BMW
  families with kids or wealthy yuppies?)
• What distribution channels should we use (e.g.
  Cars dealerships or Internet or Walmart?)

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Strategy development Common Marketing Research
Questions

• How will we compete
• How do we differentiate ourselves / our product
  from competition (e.g. State Farm is the good
  neighbor, Allstate puts you in good hands,
  GEICO saves you 15 or more?)
• What attributes do consumers consider to be
  important (e.g. cars fuel economy or
  acceleration?)
• How do we compare to competition (e.g. FedEx and
  UPS what are our market shares?)

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Strategy development Common Marketing Research
Questions

• What should be our business objectives
• Sales / Profits
• Market share
• Customer satisfaction (self-survey or actual
  complaints)
• Attitudes, etc.
• Which objective is a better indicator of our
  health

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Role of Marketing Research in Managerial Decision
Making

• Four Stages of
• Market Planning Situation analysis
• Process
• Strategy development
• Marketing program development
• Implementation

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Common Questions

• Segmentation which segment to target (e.g.
  Ferrari should they introduce a minivan?)
• Product How should the product be positioned
  (Should Rolex be a premium brand or a mass market
  brand?)
• Distribution exclusive / mass distribution
  (Dell computers should they be sold direct or
  even retail?)
• Advertising what appeals should be used (e.g.
  Axe pefumes should they use over-the-top sex
  appeal in their ads?)

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Common Questions

• Personal selling which customers should be
  approached personally (Customer Lifetime Value)
• Price what price should be charged (e.g. should
  Starbucks drop their prices?)
• Branding how can brand loyalty be increased
  (e.g. should Morton salt institute a customer
  rewards program?)
• Customer satisfaction how satisfied are our
  customers?

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Role of Marketing Research in Managerial Decision
Making

• Four Stages of
• Market Planning Situation analysis
• Process
• Strategy development
• Marketing program development
• Implementation

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Common questions - Implementation

• Did the marketing program achieve its objectives
  (e.g. did the Aflac duck campaign improve TOMR?
  Attitudes?)
• Should the marketing program be modified,
  continued or terminated (e.g. The GEICO apes
  should the company pull the campaign?)

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Factors Influencing Marketing Research Decisions
Yes
Yes
Yes
Yes
Availability of Data Is the information on
hand inadequate?
Nature of Decision Is the decision of
considerable importance?
Benefits vs. Costs Does the value of the
research exceed the cost?
Time Constraints Is sufficient time available?
Conduct Marketing Research
No
No
No
No
Do not conduct marketing research!