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Marketing Research
Audhesh Paswan
Chapter 1:
The Nature and Role of
Marketing Research
The Nature of Marketing Research
Marketing research is one of the principal tools for answering
questions because it:
• 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
Marketing Managers..
• Respond to a problem,
• by searching for, and selecting a solution or
course of action,
• to create value for firm’s stakeholders.
Decision/Research Context
Customer Groups:
Consumers, Employees, Shareholders, Suppliers
Controllable
Marketing
Variables
Assessing
Information
Needs
Marketing
Research
Uncontrollable
Environmental
Factors
Providing Intelligence Information, data
Marketing
Decision Making
Marketing Managers - Decisions regards market Segmentation, Target
Market Selection, Marketing Programs/Plans, Performance & Control
Decision Making Process
Problem
Recognition
Information
Search
Problem
Analysis
Information/data
Decision
Alternative
Evaluation
Market Information/data Sources
Intuition
Authority
Decision Making
Process
Research
Experience
Information or Data
• Secondary Vs Primary
• Qualitative Vs Quantitative
• Internal Vs External
Secondary
Primary
Anecdotes
Experience
Case studies
Opinions, etc.
Focus groups
Interviews
projection
techniques, etc.
Census
Syndicated data
Journals
Magazines, etc.
Surveys
Observations
Experiments
Tests, etc.
Qualitative
Quantitativ
e
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.
INFORMATION
REDUCES
UNCERTAINTY
Marketing Research Types
Basic Research
Applied Research
BASIC RESEARCH
• ATTEMPTS TO EXPAND THE LIMITS
OF KNOWLEDGE.
• NOT DIRECTLY INVOLVED IN THE
SOLUTION TO A PRAGMATIC
PROBLEM
APPLIED RESEARCH
CONDUCTED WHEN A DECISION
MUST BE MADE ABOUT A SPECIFIC
REAL-LIFE PROBLEM
SCIENTIFIC METHOD
The analysis and interpretation of empirical
evidence (facts from observation or
experimentation) to confirm or disprove
prior conceptions
MARKETING CONCEPT
•
•
•
•
CENTRAL IDEA IN MARKETING
EVOLVED OVER TIME
NOT PRODUCTION-ORIENTED
MARKETING-ORIENTED
Marketing Concept
Consumer
Oriented
Long Run
Profitability
Cross Functional,
Integrated and
Coordinated Effort
Marketing Research is a means for
implementing Marketing Concepts
STAGES IN DEVELOPING AND
IMPLEMENTING A MARKETING
STRATEGY
• Identifying and evaluating opportunities
• Analyzing market segments and selecting
target markets
• Planning and implementing a marketing
mix
• Analyzing market performance
Marketing Strategy Stage
Example of Market Research
1. Identifying and Evaluating
Opportunities
•Mattel Toys investigates desires for play
experiences
•MTV, monitoring demographic trends, learns
the Hispanic market is growing rapidly
2. Analyze market Segments and
Select Target Markets
•Cadillac investigates buyers’ demographic
characteristics
3. Plan and Implement a Marketing
Mix
•Price: Safeway does a competitive pricing
analysis
•Distribution: Caterpillar Tractor Co.
investigates dealer service program.
•Product: Oreo conducts taste test, Oreo
cookie vs. Chips Ahoy
•Promotion: How may consumers recall
“Always Coca Cola!”
4. Analyze Marketing Performance
•This year’s market share is compared to last
year’s.
PERFORMANCE-MONITORING
RESEARCH
• 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”
Determining When to Conduct Marketing Research
Time Constraints
Is sufficient time
available before
a managerial decision
must be made?
No
Availability of Data
Yes
Is the information
already on hand
inadequate for making
the decision?
No
Nature of the Decision
Yes
Is the decision of
considerable strategic
or tactical importance?
No
Do Not Conduct Marketing Research
Yes
Benefits vs. Costs
Does the value of the
research information
exceed the cost of
conducting research?
No
Yes
Conducting
Marketing
Research
Determining When to Conduct
Marketing Research
•
•
•
•
TIME CONSTRAINTS
AVAILABILITY OF DATA
NATURE OF THE DECISION
BENEFITS VERSUS COSTS
Potential value of a marketing research effort should exceed its
estimated costs
Costs
Value
• Decreased Certainty
• Increased Likelihood
of a Correct Decision
• Improved Marketing
Performance and
Resulting Higher
Profits
• Research
Expenditures
• Delay of Marketing
Decision and
Possible Disclosure
of Information to
Rivals
• Possible Erroneous
Research Results
GLOBAL RESEARCH
• Marketing Research is increasingly global
• Market knowledge is essential
• A.C. Nielsen - more that 60% international
business