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Marketing Research

Dr. Irfan ButtLahore School of EconomicsWinter 2014Chapter 1What is Research?The systematic process of collecting and analyzing information to increase our understanding of the phenomenon under study.

ExamplesSocial SciencesMedical SciencesAgriculture

5What is Business Research?The systematic and objective process of gathering, recording, and analyzing data for aid in making business decisions.

ExamplesOperationsHuman ResourceInformation Technology

8What is Marketing Research?9All the activitiesthat enable an organization to obtain the information it needs to make decisions about its environment, marketing mix, present & potential customers

10More specifically, MR is the development, interpretation, and communication of decision-oriented information to be used in all phases of the marketing process

11What is MR? (continued)This definition has two important implications:Research plays a role in all three phases of the marketing: planning, implementation, and evaluationIt recognizes the researchers responsibility to go beyond collecting data to developing information that will be useful to managers

What is Marketing Process?What is Marketing?MR is the development, interpretation, and communication of decision-oriented information to be used in all phases of the marketing process

What could be some examples of Marketing Research?

Model of the Marketing System14What is the first thing a new Chief Marketing Officer needs to understand?Marketing StrategyDeveloping and implementing a marketing strategy involves four stages:Identifying & evaluating market opportunitiesAnalyzing market segments, selecting target markets, determining positioningPlanning & implementing a marketing mix Analyzing firm performance

16How MR is related to Marketing Strategy?1. Identifying & Evaluating OpportunitiesMonitoring the competitive environment for signals indicating a business opportunity:Helps managers recognize problems & identify opportunities.Identifies changes in customer needs, uses, and demand for products.

182. Analyzing & Selecting Target MarketsGeo-demographicsInformation describing the demographic profile of consumers in a particular geographic region.

A firm can effectively communicate with those customers by choosing media that reach that particular profile.Example:

2. Developing Positioning StrategyNormally what is positioning based on:Product Attributes relative to that of competitors3. Planning and Implementing a Marketing MixMarketing research can be used to support specific decisions about aspects of the marketing mix.21Types of Marketing Mix ResearchProduct Researchto evaluate and develop new products and to learn how to adapt existing product lines.Concept testingProduct testingBrand-name evaluationPackage testing

Essentials of Marketing Research,5thEditionWilliam G. Zikmund; Barry J. Babin, 2013Chapter 1

22Types of Marketing Mix ResearchPricing ResearchCustomer ValueFinancial costsNon-Financial costs

Essentials of Marketing Research,5thEditionWilliam G. Zikmund; Barry J. Babin, 2013Chapter 1Involves finding the amount of monetary sacrifice that best represents the value customers perceive in a product after considering various market constraints.

23Types of Marketing Mix ResearchDistribution ResearchStudies aimed at selecting retail sites or warehouse locations in support of the distribution channel.24Types of Marketing Mix ResearchPromotion ResearchInvestigates the effectiveness of advertising, premiums, coupons, sampling, discounts, public relations, and other sales promotions.Media research helps businesses make decisions about which media alternatives are best suited to convey the intended message.25Where the Marketing Research Dollars are Concentrated

Source: Inside Research, Where the Money Is, American Demographics (adage.com).Should a company conduct Marketing Research?A company has to make a quick decision about offering a promotion in response to competitorA B2B stationary firm wants to target small companies identified by their yearly salesA soap company would like to do brand extension

Should a company conduct Marketing Research?A bottled water company wants to change font on its label from Arial to Arial Black.A.C. Nielsen has quoted LSE 10 million for a research project to identify what new undergraduate majors should be offered by business school.

When is Marketing Research Needed?The determination of the need for marketing research centers on:Time constraintsThe availability of dataThe nature of the decision to be madeBenefits versus costs (the value of the research information in relation to costs)Will the payoff or rate of return be worth the investment?Will the information improve the quality of the marketing decision enough to warrant the expenditure?Is the expenditure the best use of the available funds?30Exploring Marketing Research,10thEditionWilliam G. Zikmund; Barry J. Babin, 2010Chapter 1Should We Conduct Marketing ResearchNFACTORCONDUCT MARKETING RESEARCH1TimeSufficient time is available before decision is made2Data AvailabilityFirm does not have access to data but can be obtained3Nature of DecisionDecision of considerable strategic and tactical importance4Benefits versus CostPotential value of research exceeds cost of conducting research GOEssentials of Marketing Research,5thEditionWilliam G. Zikmund; Barry J. Babin, 2013Chapter 1

31Should We Conduct Marketing ResearchNFACTORDO NOT CONDUCT MARKETING RESEARCH1TimeTime pressure requires a decision before adequate research can be completed.2Data AvailabilityFirm has already relevant data or data cannot be obtained.3Nature of DecisionDecision is not critical and involves relatively little risk.4Benefits versus CostCost of research exceeds potential value of project. STOPEssentials of Marketing Research,5thEditionWilliam G. Zikmund; Barry J. Babin, 2013Chapter 1

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