session1 what is market research new

8/6/2019 Session1 What is Market Research New

http://slidepdf.com/reader/full/session1-what-is-market-research-new 1/42

Introduction to Marketing

Research

Role of Marketing Research in Management Decision Making



Ch 1

Learning Objectives

� To review the marketing concept and themarketing mix.

� To comprehend the marketing environment

within which managers must make decisions.� To define marketing research.� To understand the importance of marketing

research in shaping marketing decisions.

� To learn when marketing research should andshould not be conducted.



Ch 1

Because Marketing Research is

part of Marketing we shouldunderstand:

� What is marketing?

� What is the marketing concept?

� What is marketing strategy?



Ch 1

What is Marketing?

� Marketing has been defined by the

AMA as an organizational function

and a set of processes for creating,communicating and delivering value

to customers and for managing

customer relationships in ways that

benefit the organization and itsstakeholders.



Ch 1

What is the Marketing Concept?

� The Marketing Concept is a businessphilosophy that holds that the key toachieving organizational goals

consists of the company¶s being moreeffective than competitors in creating,delivering, and communicatingcustomer value to its chosenmarkets.



Ch 1

What is Marketing Strategy?

� A Marketing Strategy consists of

selecting a segment of the market as

the company¶s target market anddesigning the proper ³mix´ of the

product/service, price, promotion, and

distribution system to meet the wants

and needs of the consumers withinthe target market.



Ch 1

Learning by Doing:

Let¶s Apply Marketing toa Restauranta Restaurant

� Target market segment?

� Marketing strategy ±Location?

±Menu?

±Prices? ±Type?

±Advertising?



Ch 1

Restaurant Marketing Decisions

� What if you owned a restaurant

located near Rizvi college?

� What would be your marketingstrategy?

� How certain are you that you made

the right decisions?



Ch 1

Restaurant Marketing Decisions

� What if the restaurant was located

near a university in a foreign country

like China, Thailand, Italy, Iceland, or

Peru?

� What would be your decisions?

� How certain are you that you made

the right decisions now?

� So, what¶s going on?.....??



Ch 1

K ey Point

� To practice marketing; to implement

the marketing concepts; to implement

marketing strategy, managers must

make decisions.

� Many decisions require additional

information and marketing research is

needed in order to supply thatinformation.



Ch 1

We need Marketing Research to:

� Make the ³right´ decisions to

� Implement marketing

� Practice the marketing concept and� Make the right decisions to select the

right marketing strategy



Ch 1

What is Marketing Research?

� Marketing research is the process of

designing, gathering, analyzing, and

reporting information that may be used to

solve a specific marketing problem withrespect to a particular market,{where

µmarket¶ refers to a specific group in a

specific geographic area}, and make a

particular marketing decision, and thencommunication of the results of this

analysis to the management.



Ch 1

What is Marketing Research?

AMA definition� Marketing research: the function thatlinks the consumer, customer, andpublic to the marketer through

information ± information used toidentify and define marketingopportunities and problems;generate, refine, and evaluatemarketing actions; monitor marketingperformance; and improve theunderstanding of marketing as aprocess.



Ch 1

The Proactive Role of Marketing

Research

A proactive management:

± alters the marketing mix to fit newly

emerging patterns in economic, social,

and competitive environments

± new opportunities

± develops a long-run marketing strategy



Ch 1

What is the purpose of

Marketing Research?� To link the consumer to the marketer by providing information that can beused in making marketing decisions



Ch 1

Purpose



Ch 1

Why Research?

� Research focuses & organizes information. Itensures that such information is timely andpermits leadership to:

1. Reduce business risks

2. Spot current and upcoming problems in theenvironment

3. Develop plans of action

4. Measure satisfaction/dissatisfaction

5. Assess abilities & weakness

6. Analyze effectiveness, gaps and voids

7. See what the competition is doing

8. Benchmark best practices



Ch 1

What can Market Research

answer?1. Who are the major customers andcompetitors?

2. What kind of people are they?

3. What do they want from a product?4. Why are they buying what they are

buying?

5. How have they been treated in the past

by us & others?6. What do they think of us & others?

7. Are our image building programs working



Ch 1

Critical Components

� Know thy self

� Know the customer

� Know the market� Know them sneaky competitors

� Know the industry

� Know what you don¶t know !!!



Ch 1

Advantages of Market Research

± Helps focus attention on objectives

± Aids forecasting, planning and strategic

development ± May help to reduce risk of new product

development

± Communicates image, vision, etc.

± Globalisation makes market informationvaluable (HSBC adverts!!)



Ch 1

Decisions that can be guided by

market research

� There are four directions a companycould look to expand its business.

1. Existing customers ± existingproducts

2. Newer markets/customers ±existing products

3. Expanding product line ± existingcustomers

4. New customers ± new products



Ch 1

³High level´ business questions

Financial problem solving

� How can we reverse a fall in sales (or

achieve an increase in sales)?� How can we obtain more profit from

the product/service?

� How can we improve the satisfactionof our customers so that loyalty is

improved?



Ch 1

³High level´ business questions

M eeting opportunities

� How can we improve our offer to customers (theproduct/service, the delivery, the guarantees, the servicesupport etc)?

� What is the optimum price we should charge?

� How can we segment the market so that we can better satisfy customers¶ needs?

� What is the best route to market?

� How can we persuade people to buy our products whenthey are being tempted in other directions?

� How can we increase our sales in other territories?

� Which new products or services could we offer to our customers?



C

h 1

Classifying Marketing Research

Studies� Identifying marketing opportunities

and problems

±Market-demand determination ±Market segments identification

± Marketing audits SWOT analysis



Ch 1


Studies� Generating, refining, and evaluating

potential marketing actions

± Proposed marketing-mix evaluationtesting

±New-product prototype testing

±Advertising pretesting«



Ch 1


Studies� Monitoring marketing performance

± Image analysis«bank image

analysis ±Tracking studies...sales, market

shares of all brands in our category

±C

ustomer satisfaction studies



Ch 1

Primary Research



Ch 1

Market Research

� Primary Research

± First hand information

± Expensive to collect, analyse and evaluate

± Can be highly focussed and relevant

± Care needs to be taken with the approach and

methodology to ensure accuracy

± Types of question ± closed ± limited

information gained; open ± useful informationbut difficult to analyse



Ch 1

Secondary Research



Ch 1

Internal Sources

� Company Accounts

� Internal Reports and Analysis

� Stock Analysis

� Retail data - loyalty cards, till data, etc.



Ch 1

External Sources

� Government Statistics (e.g.Population Census)

� Trade publications

� Household Expenditure Survey� Magazine surveys

� Other firms¶ research

� Research documents ± publications, journals, etc.



Ch 1

Market Research

� Quantitative and QualitativeInformation:

� Quantitative ± based on numbers ±

56% of 18 year olds drink alcohol atleast once a week - doesn¶t tell youwhy, when, how

� Qualitative ± more detail ± tells youwhy, when and how!



Ch 1

In a number of situations it is best not to conduct market research.

� A Lack of Resources

� lack of funds

� insufficient funds to implement decisions from research

� Research Results Would Not Be Useful

� Clients may be hard-pressed to use the information

DecidingWhether to Conduct

Market Research



Ch 1

Opportunity Has Passed

Marketing research should not be undertaken if the opportunity for

successful entry into a market has passed.

The Decision Has Already Been Made

Marketing research may be used improperly.


Market Research



Ch 1

When Managers Cannot Agree on What They Need to Know to Make a Decision

The wrong phenomena might be studied

When Decision-Making Already Exists

Further research may be redundant and costly

When the Costs of Conducting Research Outweigh the Benefits

Potential new products with large profit margins may have a greater

potential


Market Research



Ch 1

The Decision Whether to Conduct Market Research

Cost likely to be greater

than benefit;

e.g., eyeglasses replacement

screw

Small Possible benefits

greater than cost;e.g., ultra expensive

sportswear

Market Size Small Profit Margin Large Profit Margin

Benefits likely to be

greater than costs;e.g., market for Soaps

Benefits likely to be

greater than costs;e.g.,medical equipment

Large



Ch 1

Disadvantages of Market Research

± 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 µgut feeling¶

± Always a problem that we may never knowenough to be sure!



Ch 1

Hot Topics in Marketing

Research� Online Marketing Research

� Growing Consumer/Respondent

Resentment� Globalization



Ch 1

Hot Topics ± Online Marketing

Research� Online research: the use of computer networks, including the Internet, toassist in any phase of the marketing

research process includingdevelopment of the problem,research design, data gathering,analysis, and report writing and

distribution.



Ch 1

Hot Topics ± Growing Consumer/

Respondent Resentment� Marketing research is invasive.

� Telemarketers and direct marketers

have abused ³marketing research.´� The government through FTC has

instituted a ³Do not call´ list.

� The marketing research industry is sofar excluded from the ban of the ³do

not call´ regulations.



Ch 1

Hot Topics ± Globalization

� As marketing firms spread globally,so did marketing research firms.

� According to Jack Honomichl, 48% of

U.S. marketing research firms¶revenues were generated outside of U.S.

� The top 25 marketing research firmsin the world earn 67% of their revenues outside their own country.



Ch 1

Thank you ! ;-)

session1 what is market research new

Documents