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Marketing Research
Aaker, Kumar, Day
Ninth Edition
Instructor’s Presentation Slides
http://www.drvkumar.com/mr9/
Marketing Research 9th Edition Aaker, Kumar, Day http://www.drvkumar.com/mr9/
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Chapter One
A Decision Making Perspective on
Marketing Intelligence
Marketing Research 9th Edition Aaker, Kumar, Day http://www.drvkumar.com/mr9/
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Business Intelligence
BI is the ability to access data from multiple sources within an organization and deliver it to business users for analysis
It links the disparate operational systems to the end users of the data, thus creating an environment with free flow of information
It offers a reliable barometer of the business performance It helps to analyze what is behind trends and anomalies in the
business
Marketing Research 9th Edition Aaker, Kumar, Day http://www.drvkumar.com/mr9/
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Business Intelligence
Provide data on
Business Intelligence
Financial Intelligence
Marketing Intelligence
Accounting Intelligence
Marketing Research
Management Intelligence
....................
Prospects Customers Competition Products/Markets
Primary Sources Secondary Sources Standardized Sources
Customer Relationship Marketing/ Database Marketing
Marketing Research 9th Edition Aaker, Kumar, Day http://www.drvkumar.com/mr9/
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What is Marketing Intelligence?
Market intelligence (MI) is, “the process of acquiring and
analyzing information in order to understand the market (both
existing and potential customers); to determine the current and
future needs and preferences, attitudes and behavior of the
market; and to assess changes in the business environment that
may affect the size and nature of the market in future.”
- Cornish S. L
Marketing Research 9th Edition Aaker, Kumar, Day http://www.drvkumar.com/mr9/
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Need for Marketing Intelligence
Producers have little direct contact with consumers (geographical
distance and channel layers).
Channel has little knowledge about customer attitudes, preferences
and changing tastes.
Need to understand competition, without spying on them.
Management goals involve sales targets and market share
achievement.
Need to identify successful new product developments early in the
process to ensure growth and revenue maximization by finding a
balance between costs and prices of products.
Marketing Research 9th Edition Aaker, Kumar, Day http://www.drvkumar.com/mr9/
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Domains of Marketing Intelligence
Pro
du
ct D
ecis
ion
s
Cu
sto
mer
Seg
men
tati
on
dec
isio
ns
Brand and P
ricing
decisions
Keeping stakeholders
happy
Mar
ket e
stim
atio
n,
com
petit
ive
benc
h-
Mar
king
& d
istr
ibut
ion
Marketing Research 9th Edition Aaker, Kumar, Day http://www.drvkumar.com/mr9/
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Marketing Research
Marketing Research, a critical part of Marketing Intelligence helps
by providing accurate, relevant and timely (ART) information
Links consumer, customer, and public to the marketer
through information used to:
• Identify and define marketing opportunity and
problems
• Generate, redefine and evaluate marketing actions
• Monitor marketing performance
• Improve understanding of marketing as a process (from AMA’s official definition of Marketing Research)
Marketing Research 9th Edition Aaker, Kumar, Day http://www.drvkumar.com/mr9/
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Role of Marketing Research in Managerial Decision Making
Four Stages of Market Planning Process
Situation analysis
Strategy development
Marketing program development
Implementation
Marketing Research 9th Edition Aaker, Kumar, Day http://www.drvkumar.com/mr9/
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•Performance monitoring•Refining strategies and program
•Define the business scope and served
market segments
•Establish competitive advantages
•Set performance objectives
Situation Analysis
StrategyDevelopment
MarketingProgram
Development
Implementation
•Understand the environment and the market•Identify threats and opportunities•Assess the competitive position
•Product and channel decision•Communication decisions•Pricing•Personal selling decisions
Marketing Planning Process
Marketing Research 9th Edition Aaker, Kumar, Day http://www.drvkumar.com/mr9/
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Situation Analysis
Analysis of
Market environment
Market characteristics
Consumer behavior
Research Approaches
Organize information obtained from prior studies
(secondary)
Focus groups
Marketing Research 9th Edition Aaker, Kumar, Day http://www.drvkumar.com/mr9/
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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?
Marketing Research 9th Edition Aaker, Kumar, Day http://www.drvkumar.com/mr9/
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Marketing Program Development
Programs embrace specific tasks
Action program usually focuses on a single objective in
support of one element of overall business strategy
Marketing Research 9th Edition Aaker, Kumar, Day http://www.drvkumar.com/mr9/
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Marketing Program Development (cont.)
Representative Decisions that Draw on Marketing Research:
Segmentation decisions
Product decisions
Distribution decisions
Advertising and promotion decisions
Personal selling decisions
Price decisions
Branding decisions
Customer satisfaction decisions
Marketing Research 9th Edition Aaker, Kumar, Day http://www.drvkumar.com/mr9/
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Implementation
Starts with decision to proceed with a new program or
strategy
Set specific measurable objectives for all elements of
marketing program
Shift research focus to :
"Did the elements achieve their objectives?"
“Should the marketing program be continued, discontinued,
revised or expanded?"
Marketing Research 9th Edition Aaker, Kumar, Day http://www.drvkumar.com/mr9/
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Factors Influencing Marketing Research Decisions
Relevance
Type and Nature of Information Sought
Timing
Availability of Resources
Cost-benefit Analysis
Marketing Research 9th Edition Aaker, Kumar, Day http://www.drvkumar.com/mr9/
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Ethics in Marketing Research
Ethics of the Sponsor
Overt and covert purposes
Dishonesty in dealing with suppliers
Misuse of research information
Ethics of the Supplier
Violating client confidentiality
Improper execution of research
Abuse of Respondents
Falsifying answers
Marketing Research 9th Edition Aaker, Kumar, Day http://www.drvkumar.com/mr9/
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Conquering Latino Homes
Hispanics account for nearly 12.5% of the U.S. population.
Research shows that Latino households contribute $600 billion of
$1.3 trillion purchasing power of multicultural population.
In 2003 only 5.1% of total advertising dollars in the United States
was focused on Latinos.
By 2050, Hispanic population would represent 25% of US
population.
What do you think the problem is?
Marketing Research 9th Edition Aaker, Kumar, Day http://www.drvkumar.com/mr9/
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P & G has came out with “Rejuvenating Effects” a gender specific
toothpaste targeting the female customers, who do 82% of the
grocery shopping.
The flavor and package of the product was decided on the basis of
the results from a customer survey filled out by women.
Though the product is priced slightly higher than the other brands
P & G hopes to make women think about the toothpaste in the
same light as skin care lotions and shampoo.
P & G Luring Women with their Feminine Toothpaste
Marketing Research 9th Edition Aaker, Kumar, Day http://www.drvkumar.com/mr9/
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Harley Davidson Exploring New Markets
Problem: Flat domestic scales
Solution: In 1999, Harley-Davidson started a rental program which provided a way to
hook customers on riding and thereby entice them into buying a motorcycle.
40 percent of those enrolled in the program were female and about 30 percent were under the age of 35
Result: Motorcycles rented went up from 401 days in 1999 to a total of 224,134 days
worldwide in 2004. 32 percent of rental customers surveyed bought a bike or placed an order
after renting, another 37 percent were planning to buy one within a year.
Nearly half of the renters spent more than $100 on Harley-Davidson accessories, such as T-shirts and gloves.