essentials of marketing research the nature of marketing research
TRANSCRIPT
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Essentials of Marketing Research
The Nature of Marketing Research
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Course Web Page
http://www.personal.psu.edu/faculty/jcl12/
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The Nature of Marketing ResearchThe Nature of Marketing Research
Marketing research is focused on understanding the market: • Links the consumer, customer, and public to the market through information
used to identify and define marketing
• Generates, refines, and evaluates marketing actions
• Monitors marketing performance
• Underlines the understanding of marketing as a process
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Marketing Research Defined
Marketing research is defined as: the systematic and objective process of generating information for aid in making marketing decisions.
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Marketing Research Defined
Marketing research is defined as: the systematic and objective process of generating information for aid in making marketing decisions.
This process includes:
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Marketing Research Defined
Marketing research is defined as: the systematic and objective process of generating information for aid in making marketing decisions.
This process includes:
•specifying what information is required;
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Marketing Research Defined
Marketing research is defined as: the systematic and objective process of generating information for aid in making marketing decisions.
This process includes:
•specifying what information is required;
•designing the method for collecting information;
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Marketing Research Defined
Marketing research is defined as: the systematic and objective process of generating information for aid in making marketing decisions.
This process includes:
•specifying what information is required;
•designing the method for collecting information;
•managing and implementing the collection of data;
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Marketing Research Defined
Marketing research is defined as: the systematic and objective process of generating information for aid in making marketing decisions.
This process includes:
•specifying what information is required;
•designing the method for collecting information;
•managing and implementing the collection of data;
•analyzing the results; and
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Marketing Research Defined
Marketing research is defined as: the systematic and objective process of generating information for aid in making marketing decisions.
This process includes:
•specifying what information is required;
•designing the method for collecting information;
•managing and implementing the collection of data;
•analyzing the results; and
•communicating the findings and their implications.
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INFORMATION
REDUCES
UNCERTAINTY
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Marketing Research TypesMarketing Research Types
Basic Research
Applied Research
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SCIENTIFICSCIENTIFIC METHODMETHOD
The analysis and interpretation of empirical evidence (facts from observation or experimentation) to confirm or disprove prior conceptions
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MARKETING CONCEPTMARKETING CONCEPT
• CENTRAL IDEA IN MARKETING
• EVOLVED OVER TIME
• NOT PRODUCTION-ORIENTED
• MARKETING-ORIENTED
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Marketing ConceptMarketing Concept
ConsumerOriented
Long RunProfitability
Integrated andCoordinated Effort
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STAGES IN DEVELOPING AND STAGES IN DEVELOPING AND IMPLEMENTING A MARKETING IMPLEMENTING A MARKETING
STRATEGYSTRATEGY • Identifying and evaluating opportunities
• Analyzing market segments and selecting target markets
• Planning and implementing a marketing mix
• Analyzing market performance
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Marketing Strategy Stage
1. Identifying and Evaluating Opportunities
Example of Market Research
•Mattel Toys investigates desires for play experiences
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Marketing Strategy Stage
1. Identifying and Evaluating Opportunities
Example of Market Research
•Mattel Toys investigates desires for play experiences•MTV, monitoring demographic trends, learns the Hispanic market is growing rapidly
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Marketing Strategy Stage
1. Identifying and Evaluating Opportunities
2. Analyze market Segments and Select Target Markets
Example of Market Research
•Mattel Toys investigates desires for play experiences•MTV, monitoring demographic trends, learns the Hispanic market is growing rapidly
•Cadillac investigates buyers’ demographic characteristics
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Marketing Strategy Stage
1. Identifying and Evaluating Opportunities
2. Analyze market Segments and Select Target Markets
3. Plan and Implement a Marketing Mix
Example of Market Research
•Mattel Toys investigates desires for play experiences•MTV, monitoring demographic trends, learns the Hispanic market is growing rapidly
•Cadillac investigates buyers’ demographic characteristics
•Price: Proctor and Gamble determines price sensitivity for their new Crisco, savory seasons product line.
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Marketing Strategy Stage
1. Identifying and Evaluating Opportunities
2. Analyze market Segments and Select Target Markets
3. Plan and Implement a Marketing Mix
Example of Market Research
•Mattel Toys investigates desires for play experiences•MTV, monitoring demographic trends, learns the Hispanic market is growing rapidly
•Cadillac investigates buyers’ demographic characteristics
•Price: Proctor and Gamble determines price sensitivity for their new Crisco, savory seasons product line.•Distribution: Caterpillar Tractor Co. investigates dealer service program.
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Marketing Strategy Stage
1. Identifying and Evaluating Opportunities
2. Analyze market Segments and Select Target Markets
3. Plan and Implement a Marketing Mix
Example of Market Research
•Mattel Toys investigates desires for play experiences•MTV, monitoring demographic trends, learns the Hispanic market is growing rapidly
•Cadillac investigates buyers’ demographic characteristics
•Price: Proctor and Gamble determines price sensitivity for their new Crisco, savory seasons product line.•Distribution: Caterpillar Tractor Co. investigates dealer service program.•Product: Oreo conducts taste test, Oreo cookie vs. Chips Ahoy
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Marketing Strategy Stage
1. Identifying and Evaluating Opportunities
2. Analyze market Segments and Select Target Markets
3. Plan and Implement a Marketing Mix
Example of Market Research
•Mattel Toys investigates desires for play experiences•MTV, monitoring demographic trends, learns the Hispanic market is growing rapidly
•Cadillac investigates buyers’ demographic characteristics
•Price: Proctor and Gamble determines price sensitivity for their new Crisco, savory seasons product line.•Distribution: Caterpillar Tractor Co. investigates dealer service program.•Product: Oreo conducts taste test, Oreo cookie vs. Chips Ahoy•Promotion: How may consumers recall “Just One Calorie, Diet Coke”
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Marketing Strategy Stage
1. Identifying and Evaluating Opportunities
2. Analyze market Segments and Select Target Markets
3. Plan and Implement a Marketing Mix
4. Analyze Marketing Performance
Example of Market Research
•Mattel Toys investigates desires for play experiences•MTV, monitoring demographic trends, learns the Hispanic market is growing rapidly
•Cadillac investigates buyers’ demographic characteristics
•Price: Proctor and Gamble determines price sensitivity for their new Crisco, savory seasons product line.•Distribution: Caterpillar Tractor Co. investigates dealer service program.•Product: Oreo conducts taste test, Oreo cookie vs. Chips Ahoy•Promotion: How may consumers recall “Just One Calorie, Diet Coke”
•This year’s market share is compared to last year’s.
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PERFORMANCE-MONITORING PERFORMANCE-MONITORING RESEARCHRESEARCH
• RESEARCH THAT REGULARLY PROVIDES FEEDBACK FOR EVALUATION AND CONTROL
• INDICATES THINGS ARE OR ARE NOT GOING AS PLANNED
• RESEARCH MAY BE REQUIRED TO EXPLAIN WHY SOMETHING “WENT WRONG”
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Restaurant Market Research?(page 17, question 7)
• The owner of 22 restaurants was asked how he does marketing research. He answered that he does it after driving around in a pickup truck at midnight: “I stay up late. If it’s midnight and I don’t have anything else to do, I drive around town and look at the lines in front of places. I’ll look at the trash and see if a guy’s not doing any business. I find out a lot by talking to my vendors. I ask the bread guy how many boxes of buns the drive-in down the street is buying. Very few restaurateurs do that. But that’s the way I research my market.”
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Discussion Points
• Is that market research?
• What types of questions will his research help him answer?
• How could he improve his marketing research efforts?
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Determining When to Conduct Marketing Research
Is sufficient time available before
a managerial decision must be made?
Is the information already on hand
inadequate for makingthe decision?
Is the decision of considerable strategicor tactical importance?
Does the value of theresearch informationexceed the cost of
conducting research?
ConductingMarketingResearch
Do Not Conduct Marketing Research
Time Constraints Availability of Data Nature of the Decision Benefits vs. Costs
Yes YesYesYes
No No No No
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Potential value of a marketing research effort should exceed itsestimated costs
ValueCosts
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Potential value of a marketing research effort should exceed itsestimated costs
Value
• Decreased Certainty
Costs
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Potential value of a marketing research effort should exceed itsestimated costs
Value
• Decreased Certainty• Increased Likelihood of a Correct Decision
Costs
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Potential value of a marketing research effort should exceed itsestimated costs
Value
• Decreased Certainty• Increased Likelihood of a Correct Decision• Improved Marketing Performance and Resulting Higher Profits
Costs
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Potential value of a marketing research effort should exceed itsestimated costs
Value
• Decreased Certainty• Increased Likelihood of a Correct Decision• Improved Marketing Performance and Resulting Higher Profits•Identifying new trends or niche markets
Costs
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Potential value of a marketing research effort should exceed itsestimated costs
Value
• Decreased Certainty• Increased Likelihood of a Correct Decision• Improved Marketing Performance and Resulting Higher Profits•Identifying new trends or niche markets
Costs• Research Expenditures
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Potential value of a marketing research effort should exceed itsestimated costs
Value
• Decreased Certainty• Increased Likelihood of a Correct Decision• Improved Marketing Performance and Resulting Higher Profits•Identifying new trends or niche markets
Costs• Research Expenditures• Delay of Marketing Decision and Possible Disclosure of Information to Rivals
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Potential value of a marketing research effort should exceed itsestimated costs
Value
• Decreased Certainty• Increased Likelihood of a Correct Decision• Improved Marketing Performance and Resulting Higher Profits•Identifying new trends or niche markets
Costs• Research Expenditures• Delay of Marketing Decision and Possible Disclosure of Information to Rivals• Possible Erroneous Research Results
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Porsche Case Study(see page 18)
• After selling a record 30,000 automobiles in the United States in 1986, Porsche saw its sales begin to decline, reaching a low of approximately 4,000 in 1993. During the 1980s, the price of a Porsche 911 Carrera coupe was less than the average U.S. household’s annual income. But in 1993, the price was about 25 percent more because of the strength of the deutsche mark and a luxury tax passed by Congress. However, after conducting marketing research to learn which market segments were prime customers, Porsche Cars North America found out that a higher price was not the only thing that had gone wrong.
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The research showed that the demographics of Porsche owners were utterly predictable: a 40-year-old male college graduate with an income of over $200,000 a year. The psycographics, however, were another aspect of the company’s marketing problem. The categories of Porsche owners are given below
Type of Percent of All Owners Described
Top Guns 27% Driven, ambitious types. Power and control matter. They expect
to be noticed.
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The research showed that the demographics of Porsche owners were utterly predictable: a 40-year-old male college graduate with an income of over $200,000 a year. The psycographics, however, were another aspect of the company’s marketing problem. The categories of Porsche owners are given below
Type of Percent of All Owners Described
Top Guns 27% Driven, ambitious types. Power and control matter. They expect
to be noticed.
Elitists 24% Old-money blue bloods. A car is just a car, no matter how
expensive. It is not an extension of personality.
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The research showed that the demographics of Porsche owners were utterly predictable: a 40-year-old male college graduate with an income of over $200,000 a year. The psycographics, however, were another aspect of the company’s marketing problem. The categories of Porsche owners are given below
Type of Percent of All Owners Described
Top Guns 27% Driven, ambitious types. Power and control matter. They expect
to be noticed.
Elitists 24% Old-money blue bloods. A car is just a car, no matter how
expensive. It is not an extension of personality.
Proud
Patrons
23% Ownership is an end in itself. Their car is a trophy earned for hard
work, and who cares if anyone sees them in it?
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The research showed that the demographics of Porsche owners were utterly predictable: a 40-year-old male college graduate with an income of over $200,000 a year. The psycographics, however, were another aspect of the company’s marketing problem. The categories of Porsche owners are given below
Type of Percent of All Owners Described
Top Guns 27% Driven, ambitious types. Power and control matter. They expect
to be noticed.
Elitists 24% Old-money blue bloods. A car is just a car, no matter how
expensive. It is not an extension of personality.
Proud
Patrons
23% Ownership is an end in itself. Their car is a trophy earned for hard
work, and who cares if anyone sees them in it?
Bon Vivants 17% Wordly jet setters and thrill seekers. Their car heightens the
excitement in their already passionate lives.
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The research showed that the demographics of Porsche owners were utterly predictable: a 40-year-old male college graduate with an income of over $200,000 a year. The psycographics, however, were another aspect of the company’s marketing problem. The categories of Porsche owners are given below
Type of Percent of All Owners Described
Top Guns 27% Driven, ambitious types. Power and control matter. They expect
to be noticed.
Elitists 24% Old-money blue bloods. A car is just a car, no matter how
expensive. It is not an extension of personality.
Proud
Patrons
23% Ownership is an end in itself. Their car is a trophy earned for hard
work, and who cares if anyone sees them in it?
Bon Vivants 17% Wordly jet setters and thrill seekers. Their car heightens the
excitement in their already passionate lives.
Fantasists 9% Walter Mitty types. Their car is an escape. Not only are they
uninterested in impressing others with it, they also feel a little
guilty about owning one.
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Discussion Points
• What type of market research led to these findings?
• What are demographics? What are psycographics? How would you measure these?
• What additional information would Porsche need in order improve sales?