notes unit i mr

8/8/2019 Notes UNIT I MR

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INTRODUCTION TO

MARKETING RESEARCH


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Chapter Outline

Overview

Definition of Marketing Research

Objective of Market Research

Application of Market Research

The Role of Marketing Research

Careers in Marketing Research

Marketing Research

Advantages/Disadvantages


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What is Marketing Research???

American Marketing AssociationMR is the systematic gathering, recording and

analyzing of data about problems related tothe marketing of goods & services

Philip KotlerMR is the systematic design, collection,

analysis & reporting of data & findingsrelevant to a specific marketing situation

facing the company


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Redefining Marketing Research

The American Marketing Association(AMA) redefined Marketing Researchas:

The function which links the consumer, the

customer, and public to the marketer

through INFORMATION


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Used to identify anddefine market

opportunities and

problems

Generate, refine, andevaluate marketing

performance

Monitor marketing

performance

Improve understanding

of marketing as a

process

Redefining Marketing Research


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Definition of Marketing Research

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.


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Market Research

Specifies the information necessary toaddress these issues

Manages and implements the datacollection process

Analyzes the results

Communicates the findings and their

implications


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Objective of Market Research

To improve quality of decision makingprocess by providing information

To help reduce the risk associated withmanagerial decision making Risk due to two types of uncertainties:

About the expected outcome About the future environment

To discover opportunity & exploitprofitably

For example : Frooti, Velvette, Mother Dairy,Dhara, Pan Parag


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Application of Marketing Research

Consumers of products & services Buyer behaviour, Influencers, Buying habits,

Incentives

Product & product design Pricing, Sourcing, Physical attributes

Distribution Channels Performance, Dealer Satisfaction, Own vs Multi-brand

Advertising Impact Image, Positioning, Media Planning, Message

Content & Prioritizing

Macro Level Phenomenon Govt spending. Mood of the Industry, State of

Economy


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1-10Percentage of Consumer CompaniesUsing MR for Various Application

APPLICATION PERCENT OF COMPANIES USING

MARKET RESEARCH

NEW PRODUCT SCREENING OR NEW CCONCEPT

EVALUATION

95

PRODUCT OPTIMIZATION OR PRODUCT DESIGN

STUDIES

65

CONSUMER PRODUCT TESTING 82

TEST MARKETING OF NEW PRODUCTS IN

LABORATORIES

54

IN-STORE, TEST MARKETING OF NEW

PRODUCTS

51

ADVERTISING PRETESTING OR COPY TESTING 83

TRACKING STUDIES TO MEASURE BRAND

ACCEPTANCE OR USAGE

92

ADVETISING CAMPAIGN TESTING 61

BASIC MARKETING STRATRGY STUDIES 82


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The Role of Marketing Research

Controllable

Marketing

Product

Pricing

Promotion

Distribution

Variables

MarketingResearch

MarketingDecision

Making

ProvidingInformation

AssessingInformation

Needs

MarketingManagers

Market Segmentation

Performance & Control

Target Market Selection

Marketing Programs

Uncontrollable

Environmental

Factors

Economy

Technology

Laws &Regulations

Social & CulturalFactors

Political Factors

Customer Groups

Employees

ShareholdersSuppliers

Consumers


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Selected Marketing Research Career Descriptions

Vice President ofMarketing

Research

Part of companys top

management team

Directs companys entire market

research operation

Sets the goals & objectives of the

marketing research department

Research Director

Also part of senior

management

Heads the development

and execution of all

research projects

Assistant Director ofResearch

Administrative assistant to director

Supervises research staff members

Senior ProjectManagerResponsible for design, implementation, &

research projects


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Analyst Handles details in execution of

project

Designs & pretests questionnaires

Conducts preliminary analysis ofdata

JuniorAnalyst Secondary data analysis

Edits and codes questionnaires

Conducts preliminary analysis of data

Fieldwork DirectorHandles selection, training,

supervision, and evaluation of

interviewers and field workers

SeniorAnalyst Participates in the development of projects

Carries out execution of assigned projects

Coordinates the efforts of analyst, junior analyst, & other personnel in the

development of research design and data collection

Prepares final report

Statistician/Data Processing Serves as expert on theory and

application on statistical techniques

Oversees experimental design, data

processing, and analysis

Selected Marketing Research Career Descriptions


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Careers in Marketing Research

Career opportunities are available with marketingresearch firms (e.g., AC Nielsen, Burke, Inc., M/A/R/C)

Careers in business and non-business firms andagencies with in-house marketing research departments(e.g., Procter & Gamble, Coca-Cola, AT & T, the Federal

Trade Commission, United States Census Bureau)

Advertising agencies (e.g., BBDO International, Ogilvy &Mather, J. Walter Thompson, Young & Rubicam)

Positions: vice president of marketing research, researchdirector, assistant director of research, project manager,field work director, statistician/data processing specialist,senior analyst, analyst, junior analyst, and operationalsupervisor.


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A Sample of Marketing Research Jobs


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Preparation for a Career in Mktg. Research

Take all the marketing courses you can.

Take courses in statistics and quantitativemethods.

Acquire Internet and computer skills.Knowledge of programming languages is anadded asset.

Acquire effective written and verbalcommunication skills.

Think creatively. Creativity and common sensecommand a premium in marketing research.


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Purpose of Marketing Research


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Marketing Research

Advantages of Marketing Research Helps focus attention on objectives

Aids forecasting, planning and strategicdevelopment

May help to reduce risk of new productdevelopment

Communicates image, vision, etc.

Globalisation makes market information

valuable


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Marketing Research

Disadvantages of MarketingResearch Information only as good as the

methodology used

Can be inaccurate or unreliable Results may not be what the business

wants to hear!

May stifle initiative and gut feeling

Always a problem that we may never

know enough to be sure!


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MR during Different Phases of theAdministrative Process

Setting Goals and Establishing Strategies

Developing a Marketing Plan

Putting the plan into Action

Evaluating the Effectiveness of theMarketing Plan


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PHASE 1: Setting Goals and EstablishingStrategies

Dissatisfaction and needs in relevantmarket

Demand size and trend

Technological and materials innovation Industry/market structure and

composition, market shares andprofitability

Supply conditions and prices Media trends


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PHASE 2: Developing a Plan

Identify key market segments byproduct category

Identify market segment attitudetowards present product, promotions,and advertising

Test the appeal of potential productattributes

Test the effectiveness of advertisingand promotion

Evaluate the need and attitude ofchannel members


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PHASE 3: Putting the plan into action

Total industry and product class sales Firms sales, by product and market

Product availability in retail stores

The cost and effectiveness of the firmsmarketing effort, by product and market,and by advertising, promotion etc

Awareness and trial in relevant market

segments Changes in competitive spending levels

and strategies including price, package,promotion, etc


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1-24PHASE 4: Evaluating the plansEffectiveness

End of period compilation andaggregation of operating data to presentan accurate picture of performance

Summary of findings on consumerawareness, trial, attitudes, preferences,repurchase rates, and so on


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MARKETING INFORMATION

SYSTEM


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Marketing Information System

American Marketing Association

MIS is a set of procedures and methodsfor the regular, planned, collection,analysis and presentation of informationfor use in marketing decisions


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Marketing Information System

consists of people,

equipment, and procedures

to gather, sort, analyze,evaluate, and distributeneeded, timely, and accurate

information to marketingdecision makers to improve

their marketing planning,


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Need of MIS

Identifying what informationmanagers would LIKE to have

Identifying the information theyactually NEED

Identifying what information it isFEASIBLE to offer them


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Components of MIS


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Internal Records

Reports on orders, sales, prices,costs, inventory levels, receivables,payables, and so on

Order-to-payment cycle Sales analysis

Databases, data warehouses,and data mining


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Marketing Intelligence

The formal and/or informalongoing collection of informationabout competitors and other

environmental developments Sales force as eyes and ears

Distributors, retailers, intermediaries

Competitors products and activities News, publications, Internet etc.


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Information analysis

A coordinated collection of data,systems, tools, and techniqueswithsupporting software and hardware

by which an organization gathersand interprets relevant informationfrom business and environmentand turns it into a basis for

marketing action


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Benefits of MIS

Market Monitoring

Strategy Development

Strategy Implementation

Functional Integration

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