a decision making perspective on marketing research
TRANSCRIPT
A Decision Making A Decision Making Perspective on Marketing Perspective on Marketing
ResearchResearch
Why study Marketing ResearchWhy 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
Example: MR organizations in Example: MR organizations in Charlotte N.C.Charlotte N.C.
1. Leibowitz Market Research-GroupNet Charlotte2. 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
Situations where MR knowledge is Situations where MR knowledge is essentialessential
• 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.
Why study Marketing ResearchWhy study Marketing Research
• Increase chances of taking the right decision
• Increase confidence in your recommendations
• Quantitative research:– Universal belief – numbers don’t lie
What is Marketing Research?What is Marketing Research?ExamplesExamples
Pain Relievers
Gentleness
Effectiveness
Tylenol
Private-labelAspirin Anacin
Bayer
Excedrin
Nuprin
Advil
Definition of Marketing Definition of Marketing ResearchResearch
• 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.
Role of Marketing Research in Role of Marketing Research in Managerial Decision MakingManagerial Decision Making
Four Stages of
Market Planning Situation analysis
Process
Strategy development
Marketing program development
Implementation
Situation AnalysisSituation 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
For Toyota Motor CompanyFor Toyota Motor CompanyIdentify the business environmentIdentify 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
Case: StarbucksCase: Starbucks
• Identify at least one aspect of the external environment Starbucks would be interested in researching:– Economic– Technological– Buyer behavior– Market– Legal
Situation Analysis – Common Situation Analysis – Common Marketing Research QuestionsMarketing 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?
Situation Analysis – Common Situation Analysis – Common Marketing Research QuestionsMarketing Research Questions
Describing an organization’s 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
Situation Analysis – Common Marketing Situation Analysis – Common Marketing Research QuestionsResearch 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?
Role of Marketing Research in Role of Marketing Research in Managerial Decision MakingManagerial Decision Making
Four Stages of
Market Planning Situation analysis
Process
Strategy development
Marketing program development
Implementation
Strategy DevelopmentStrategy 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?
Strategy development – Common Strategy development – Common Marketing Research QuestionsMarketing 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?)
Strategy development – Common Strategy development – Common Marketing Research QuestionsMarketing 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?)
Strategy development – Common Strategy development – Common Marketing Research QuestionsMarketing 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
Role of Marketing Research in Role of Marketing Research in Managerial Decision MakingManagerial Decision Making
Four Stages of
Market Planning Situation analysis
Process
Strategy development
Marketing program development
Implementation
Common QuestionsCommon 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?)
Common QuestionsCommon 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?
Role of Marketing Research in Role of Marketing Research in Managerial Decision MakingManagerial Decision Making
Four Stages of
Market Planning Situation analysis
Process
Strategy development
Marketing program development
Implementation
Common questions - Common questions - ImplementationImplementation
• 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?)
Factors Influencing Marketing Factors Influencing Marketing Research DecisionsResearch Decisions
Availability of DataIs the information on hand inadequate?
Do not conduct marketing research!
Conduct Marketing Research
Nature of DecisionIs the decision of considerableimportance?
Benefits vs. CostsDoes the value of the research exceed the cost?
Time ConstraintsIs sufficient time available?
Yes Yes Yes Yes
No No No No