01a introduction to market research

7/31/2019 01a Introduction to Market Research

1/33

Introduction toMarketing Research


2/33

Marketing Research Defined

The systematic and objectiveprocess of generating

information for aid in makingmarketing decisions.


3/33

The American Marketing Association (AMA)redefined Marketing Research as:

The function which links the consumer, the

customer, and public to the marketerthrough INFORMATION

Redefining Marketing Research


4/33

Used to identify anddefine marketopportunities andproblems

Generate, refine, andevaluate marketingperformance

Monitor marketing

performance

Improve understandingof marketing as aprocess

Redefining Marketing Research


5/33

Marketing research is the systematic and objective

identification

collection

analysis dissemination

and use of information

for the purpose of improving decision making related to the

identification and

solution of problems and opportunities in marketing.

Definition of Marketing Research


6/33

Marketing research is the systematic andobjective identification, collection, analysis,dissemination, and use of information for the

purpose of assisting management in decisionmaking related to the identification and solutionsof problems and opportunities in marketing

(Naresh Malhotra)

Marketing Research


7/33

Marketing research - is the gathering of information onall activities of marketing

Market research - is the gathering of information on aparticular market for a product or service

Marketing research has a wider scope than market

research

Marketing and Market Research


8/33

Specifies the information necessary to addressthese issues

Manages and implements the data collectionprocess

Analyzes the results

Communicates the findings and theirimplications

Market Research

Cl ifi i f M k i


9/33

Problem Identification Research Research undertaken to help identify problems which are

not necessarily apparent on the surface and yet exist orare likely to arise in the future. Examples: market

potential, market share, image, market characteristics,sales analysis, forecasting, and trends research.

Problem Solving Research

Research undertaken to help solve specific marketingproblems. Examples: segmentation, product, pricing,promotion, and distribution research.

Classification of MarketingResearch

Cl ifi i f M k i


10/33

Marketing Research

ProblemIdentification Research

Problem SolvingResearch

Market Potential Research

Market Share ResearchMarket Characteristics ResearchSales Analysis ResearchForecasting Research

Business Trends Research

Segmentation ResearchProduct Research

Promotion Research

Distribution Research

Classification of MarketingResearch


11/33

Determine the basis of segmentation

Establish marketresponsiveness for various

segments

Select target markets

Create lifestyle profiles:demography, media, andproduct image characteristics

SEGMENTATION RESEARCH

Test concept

Determine optimal product design

Package tests

Product modification

Brand positioning andrepositioning

Test marketing

Control score tests

PRODUCT RESEARCH



12/33

PRICING RESEARCH

Pricing policies

Importance of price in brand selection

Product line pricing

Price elasticity of demand

Initiating and responding to price changes

$ALE

PROMOTIONAL RESEARCH

Optimal promotional budget

Sales promotion relationship

Optimal promotional mix

Copy decisions

Media decisions

Creative advertising testing

Evaluation of advertising effectiveness

Claim substantiation

0.00% APR



13/33

DISTRIBUTION RESEARCH

Determine

Types of distribution

Attitudes of channel members

Intensity of wholesale & resale coverage

Channel margins

Location of retail and wholesale outlets



14/33

Identify changes in the existing market

Build up a knowledge bank

Improve market awareness & opportunities

Reduce risk and uncertainty

Support marketing mix decisions

Support marketing planning and controls

Improve understanding of marketing

Solve ad hoc problems

Scope of Marketing Research


15/33

The Marketing Research Process

Define the Problem Develop an Approach to the Problem

Type of Study? Exploratory, Descriptive, Causal?

Mgmt & Research Questions, Hypotheses

Formulate a Research Design Methodology

Questionnaire Design

Fieldwork

Prepare & Analyze the Data

Prepare & Present the Report


16/33

Marketing Research TypesBasic research

Applied research


17/33

Basic Research

Attempts to expand the limitsof knowledge

Not directly involved in thesolution to a pragmaticproblem


18/33

Basic Research Example

Do consumers experiencecognitive dissonance in

low-involvementsituations?


19/33

Applied Research

Conducted when a decision must bemade about a specific real-life problem


20/33

Applied Research Example

Should McDonalds add Italian pastadinners 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


21/33

Scientific Method

The analysis and interpretation ofempirical evidence (facts fromobservation or experimentation)to confirm or disprove priorconceptions


22/33

Using Marketing Research

We can use Marketing Research to:Identify & Evaluate Opportunities

Analyze Market Segments

Select Target Markets

Plan & Implement Marketing Mixes

Analyze Marketing Performance Performance Monitoring Research


23/33

Identifying and EvaluatingOpportunities

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.


24/33

Analyze Market Segments andSelect 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 averagehousehold income of $38,000, are corecustomers. Targets this market with "The Good

Life at a Great Price. Guaranteed. Sears."


25/33

Plan and Implementa Marketing Mix

Price: Safeway does a competitive pricinganalysis

Distribution: Caterpillar Tractor Co. investigates

dealer service program.

Product: Oreo conducts taste test, Oreo cookievs. Chips Ahoy

Promotion: How many consumers recall theLife Tastes Good. Coca Cola! slogan?


26/33

Analyze Marketing Performance

This years market share is

compared to last years.

Did brand image change afternew advertising?


27/33

Performance-monitoring Research

Research that regularly providesfeedback for evaluation and control

Indicates things are or are not goingas planned

Research may be required toexplain why something went wrong


28/33

Determining When to ConductMarketing Research

Time constraints

Availability of data

Nature of the decisionBenefits versus costs

D t i i Wh t C d t


29/33

Is sufficient

time

available?

Information

already on

hand

inadequate?

Is the

decision of

strategic

or tactical

importance?

Does the

information

value

exceed the

research cost?

Conduct

Marketing

Research

Do Not Conduct Marketing Research

Time Constraints Availability of Data Nature of the Decision Benefits vs. Costs

Yes YesYesYes

No No No No

Determining When to ConductMarketing Research


30/33

Value

Decreased uncertaintyIncreased likelihood ofcorrect decision

Improved marketingperformance andresulting higher profits

Costs

Research expendituresDelay of marketingdecision and possibledisclosure of information

to rivalsPossible erroneousresearch results

Potential Value of a Marketing ResearchEffort Should Exceed Its Estimated Costs


31/33

ALWAYS Remember

Marketing Research is a tool.

It assists marketing managers in

their decision making. IT IS NOT A

REPLACEMENT FORMANAGERIAL

JUDGEMENT!!


32/33

ControllableMarketing

Product

Pricing

Promotion

Distribution

Variables

MarketingResearch

MarketingDecisionMaking

ProvidingInformation

AssessingInformationNeeds

Marketing Managers

Market Segmentation

Performance & Control

Target Market Selection

Marketing Programs

Uncontrollable

Environmental

Factors

Economy

Technology

Laws &Regulations

Social & CulturalFactors

Political Factors

Customer Groups

Employees Shareholders

Suppliers

Consumers

The Role of Marketing Research


33/33

U.S. rank Worldwide research Non-U.S. research Percent2001 2000 revenues* revenues* non-U.S.

($, in millions) ($, in millions) revenues

1 2 VNU, Inc. New York vnu.com $2,400.00 $1,100.00 45.80%

2 3 IMS Health, Inc. Fairfield, Conn. imshealth.com 1,171.00 702 60

3 4 Information Resources, Inc. Chicago infores.com 555.9 135.6 24.4

4 6 The Kantar Group Fairfield, Conn. kantargroup.com 962.3 663.2 68.9

5 5 Westat, Inc. Rockville, Md. westat.com 285.8

6 7 Arbitron, Inc. New York arbitron.com 227.5 7.9 3.5

7 NOP World US New York nopworld.com 224.1 17.5 7.8

8 8 NFO WorldGroup Greenwich, Conn. nfow.com 452.9 289.9 64

9 9 Market Facts, Inc. Arlington Heights, Ill. marketfacts.com 189.7 33.5 17.7

10 11 Taylor Nelson Sofres USA London tnsofres.com 166.9 16.4 9.8

11 11 Maritz Research Fenton, MO. maritzresearch.com 181.7 54.6 30

12 23 Ipsos New York ipsos.com 204.3 91.4 44.7

13 15 J.D. Power and Associates Westlake Village, Calif. jdpa.com 128 18.7 14.6

14 14 Opinion Research Corp. Princeton, N.J. opinionresearch.com 133.6 42.2 31.6

15 10 The NPD Group, Inc. Port Washington, N.Y. npd.com 101.7 13 12.8

16 17 Jupiter Media Metrix, Inc. New York jmm.com 85.8 17.2 20

17 18 Harris Interactive, Inc. Rochester, N.Y. harrisinteractive.com 75.4 10.5 13.9

18 20 Abt Associates, Inc. Cambridge, Mass. abtassociates.com 62.8 9.4 15

19 19 C&R Research Services, Inc. Chicago crresearch.com 43.6

20 22 Wirthlin Worldwide McLean, Va. wirthlin.com 46.8 7.2 15.4

21 24 Lieberman Research Worldwide Los Angeles lrwonline.com 43.1 4.3 10

22 25 Burke, Inc. Cincinnati burke.com 45.5 11.2 24.6

23 21 MORPACE International, Inc. Farmington Hills, Mich. morpace.com 48.3 15.9 32.9

24 26 Market Strategies, Inc. Livonia, Mich. marketstrategies.com 31.7 1.5 4.7

25 30 GfK Custom Research, Inc. Minneapolis customresearch.com 29.8 0.9 3.9

Organization Headquarters Web site

Top U.S. Marketing Research Firms

01a introduction to market research

Documents