Download Marketing Research: The Impact of the Internet 6th ed

Chapter One
The Role of
Marketing Research
in Management
Decision Making
Copyright © 2004
John Wiley & Sons, Inc.
Learning Objectives
Learning Objective
1. To review the marketing concept and the
marketing mix
2. To comprehend the marketing environment
within which managers must make decisions
3. To define marketing research
4. To understand the importance of marketing
research in shaping marketing decisions
John Willey & Son, Inc
2
Learning Objectives
Learning Objective
5. To learn when marketing research should and
should not be conducted
6. To learn how the Internet is changing
marketing research
7. To understand the history of marketing
research
John Willey & Son, Inc
3
Nature of Marketing
•
Marketing
–
•
Learning Objective
To review the marketing concept
and the marketing mix.
The process of planning and executing the
conception, pricing promotion, and distribution
of ideas, goods, and services to create exchanges
that satisfy individual and organization objectives
Marketing Concept
1. Consumer Orientation
2. Goal Orientation
3. Systems Orientation
John Willey & Son, Inc
4
Nature of Marketing
Learning Objective
To review the marketing concept
and the marketing mix.
• Opportunistic Nature of Marketing Research
– Identify the target
– Marketing mix
• The External Marketing Environment
– Marketing research is the key to understanding
the environment
– Provides information for altering marketing
mix
– Identifies new opportunities
John Willey & Son, Inc
5
Marketing Research
and Decision Making
Learning Objective
To define marketing research.
• Marketing Research Defined
– The planning, collection, and analysis of data
relevant to market decision making and
communication of the results of this analysis to
management.
John Willey & Son, Inc
6
Marketing Research
and Decision Making
Learning Objective
To define marketing research.
• The Importance of Marketing Research to Management
– Descriptive function
– Diagnostic function
– Predictive function
• Unrelenting Drive for Quality and Customer Satisfaction
– Key competitive weapons of 2000s
– Quality should not be achieved at expense of customer service
– Return on Quality—new goal of companies
John Willey & Son, Inc
7
Marketing Research
and Decision Making
Learning Objective
To define marketing research.
– Paramount importance of existing customers
• Customer retention
• Marketing research
– Used to understand customers’ needs and to satisfy those
needs
– Leads to customer satisfaction
– Understand the ever-changing market place
John Willey & Son, Inc
8
Marketing Research
and Decision Making
Learning Objective
To understand the importance of marketing
researching shaping marketing decision.
• Proactive Role of Marketing Research
– 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
– Proactive manager
– Proactive marketing strategic plan
John Willey & Son, Inc
9
Marketing Research
and Decision Making
Learning Objective
To understand the importance of
marketing research.
• Applied Research versus Basic Research
– Applied research
• To better understand the market.
– Basic research
• To expand the frontiers of knowledge.
John Willey & Son, Inc
10
Decision to Conduct
Marketing Research
Learning Objective
To learn when marketing research
should and should not be conducted.
• Decision to Conduct Marketing Research
– Reasons not to conduct marketing research
• Resources are lacking
• Research results would not be useful
• Opportunity has passed
• The decision has already been made
• Managers cannot agree on what they need to know
• Decision-making information already exists
• The costs of conducting research outweigh the
benefits
John Willey & Son, Inc
11
Exhibit 1.1
Learning
Objective
The Decision Whether to Conduct
Market
Research
Market Size
Small Profit Margin
Small Cost likely to be
greater than benefit;
e.g., eyeglasses
replacement screw
Large Benefits likely to be
greater than costs;
e.g., Stouffers frozen entries
John Willey & Son, Inc
Large Profit Margin
Possible benefits
greater than cost;
e.g., ultra expensive
sportswear
Benefits likely to be
greater than costs;
e.g.,medical equipment
12
Profound Impact of the Internet
on Marketing Research
Learning Objective
To learn how the Internet is changing
marketing research
• Impact of the Internet
• Growth Drivers of the Internet
– Provides more rapid access
– Improves response time to customer needs
– Increases follow-up studies and longitudinal
research
– Creates cost cutting opportunities
John Willey & Son, Inc
13
Profound Impact of the Internet
on Marketing Research
Learning Objective
To learn how the Internet is changing
marketing research
• Internet Surveys Have Several Specific
Advantages
–
–
–
–
–
Rapid development, real-time reporting
Dramatically reduced costs
Personalization
Higher response rates
Ability to contact the hard-to-reach
John Willey & Son, Inc
14
Profound Impact of the Internet
on Marketing Research
Learning Objective
To learn how the Internet is changing
marketing research
• Internet Enhances the Research Process and
Dissemination of Information
– Virtually replacement of printed material
– Distributions of request for proposals (RFPs)
and the proposals themselves
– Collaboration between effected parties
– Data management and online analysis
– Publishing and distribution of reports
– Online presentation
John Willey & Son, Inc
15
Development of Marketing
Research
Learning Objective
To understand the history
of marketing research
• The Inception—Pre-1900
• Early Growth—1920-1950
• The Mature Years—1950 to present
John Willey & Son, Inc
16
SUMMARY
–
–
–
–
–
–
–
–
Learning Objective
Marketing Concept
External Marketing Environment
Marketing Research Defined
Proactive Role of Marketing Research
Applied Research vs Basic Research
When Not To Conduct Research
Advantages of Internet Surveys
The Development of Marketing Research
John Willey & Son, Inc
17
Learning Objective
The End
Copyright © 2004 John Wiley & Sons, Inc.
John Willey & Son, Inc
18