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1
The Role of
Marketing Research
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Cengage
accessible website,
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or Learning.
in part. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
LEARNING OUTCOMES
1. Know what marketing research is an what it does for
business
2. Understand the difference between basic and applied
marketing research
3. Understand how the role of marketing research
changes when a firm is truly marketing oriented
4. Be able to integrate marketing research results into
the strategic planning process
5. Know when marketing research should and should not
be conducted
6. Appreciate the way technology and
internationalization are changing marketing research
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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“Crunch Time for Research”
• Sun Chips’
“compostable” bag
crunched louder than
the chips!
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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What is Marketing Research?
• Companies must produce bundles of
benefits that consumers will view as
valuable.
• Key questions:
• What do we sell?
• How do consumers view our company?
• What does our company/product mean?
• What do consumers desire?
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Marketing Research Defined
• Marketing research is the application of the
scientific method in searching for the truth
about marketing phenomena.
• The process includes:
•
•
•
•
•
idea and theory development
problem definition
gathering information
analyzing data
communicating the findings and their
implications
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Marketing Research Defined
• This definition suggests that marketing
research information is:
•
•
•
•
not intuitive or haphazardly gathered
accurate and objective
relevant to all aspects of the marketing mix
limited by one’s definition of marketing
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Good Fat and Bad Fat
• The FDA is concerned
that consumers get
accurate information.
• How should the label
communicate the
meaning of trans fat?
• Research can help!
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Applied Marketing Research
• Applied marketing research
• conducted to address a specific marketing
decision for a specific firm or organization.
• Example:
• Should McDonald’s add Italian pasta dinners to its
menu?
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Basic Marketing Research
• Basic marketing research
• conducted without a specific decision in mind
that usually does not address the needs of a
specific organization.
• Attempts to expand the limits of marketing
knowledge in general.
• Not aimed at solving a pragmatic problem.
• Example:
• Do consumers experience cognitive dissonance in
low-involvement situations?
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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The Scientific Method
• Scientific Method
• The way researchers go about using knowledge
and evidence to reach objective conclusions
about the real world.
• The analysis and interpretation of empirical
evidence (facts from observation or
experimentation) to confirm or disprove prior
conceptions
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EXHIBIT
A Summary of the Scientific Method
1.1
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Marketing Research and Strategic
Management Orientation
• There are only a few business orientations:
• Product-oriented
• Production-oriented
• Marketing-oriented
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The Marketing Concept
• Marketing Concept
• A central idea of marketing that involves focusing on
how the firm provides value to customers more than
on the physical product or production process
• Customer-oriented—decisions are made with a
conscious awareness of their effect on the
consumer.
• Emphasis on long-run profitability rather than
short-term profits or sales volume.
• Cross-functional perspective—marketing is
integrated across other business functions.
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Research Can Make A Perfect Bag
• Mandarina Duck used
consumer input to
design perfect bags:
•
•
•
•
•
Four rollers
Size
Separate storage
Sturdy
Unique and fun
appearance
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Keeping Customers and Building
Relationships
• Relationship Marketing
• The idea that a major goal of marketing is to
build long-term relationships with the
customers contributing to their success.
• Views a sale not as the end of a process but is the
start of the organization’s relationship with a
customer—marketers want customers for life.
• Satisfied customers will return to a company that
has treated them well.
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Harley-Davidson Means Family
• Harley mines social
media sites
• Learned that
skateboarders ride
Harley’s
• Became official sponsor
of professional
skateboarder, Heath
Krichart
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Marketing Research and Strategic
Marketing Management
• Developing and implementing a marketing
strategy involves four stages:
1. Identifying and evaluating market
opportunities
2. Analyzing market segments and selecting
target markets
3. Planning and implementing a marketing mix
that will provide value to customers and
meet organizational objectives
4. Analyzing firm performance
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Identifying and Evaluating
Opportunities
• Monitoring the competitive environment for
signals indicating a business opportunity:
• Helps managers recognize problems and
identify opportunities for enriching marketing
efforts.
• Motivates a firm to take action to address
consumer desires in a way that is beneficial to
both the customers and to the firm.
• Identifies changes in customer needs, uses,
and demand for products.
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Analyzing and Selecting Target
Markets
• Geo-demographics
• Information describing the demographic profile
of consumers in a particular geographic region.
• Once the company knows the geodemographics of a market segment, it can
effectively communicate with those customers
by choosing media that reach that particular
profile.
• Example: Architectural Digest magazine
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Planning and Implementing a
Marketing Mix
• Marketing research can be used to support
specific decisions about aspects of the
marketing mix.
• It is essential that an overall research plan
involves all elements of marketing strategy.
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Types of Marketing Mix Research
• Product Research
• Designed to evaluate and develop new products and to
learn how to adapt existing product lines.
•
•
•
•
Concept testing
Product testing
Brand-name evaluation
Package testing
• Pricing Research
• Involves finding the amount of monetary sacrifice that
best represents the value customers perceive in a
product after considering various market constraints.
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Types of Marketing Mix Research
• Distribution Research
• Studies aimed at selecting retail sites or
warehouse locations in support of the
distribution channel.
• Marketing Channel
• A network of interdependent institutions that
perform the logistics necessary for consumption to
occur.
• Supply Chain
• Another term for a channel of distribution, meaning
the link between suppliers and customers.
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Types of Marketing Mix Research
• Promotion Research
• Investigates the effectiveness of advertising,
premiums, coupons, sampling, discounts,
public relations, and other sales promotions.
• Promotion—the communication function of
the firm responsible for informing and
persuading buyers.
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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The Integrated Marketing Mix
• Integrated Marketing Communication
• All promotional efforts (advertising, public
relations, personal selling, event marketing,
and so forth) are coordinated to communicate
a consistent image.
• Integrated Marketing Mix
• Research studies often investigate the effects
of various combinations of marketing mix
elements on important outcomes like sales and
image.
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Analyzing Marketing Performance
• Total Value Management
• Trying to manage and monitor the entire process by
which consumers receive benefits from a company.
• Performance-Monitoring Research
• Research that regularly, sometimes routinely, provides
feedback for evaluation and control of marketing
activity.
• Market-share analysis and sales analysis are the most
common forms.
• Marketing Metrics
• Quantitative ways of monitoring and measuring
marketing performance.
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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EXHIBIT
Should We Conduct Marketing Research?
1.5
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“Jacques” Daniels
• Research findings:
• Japanese use JD as a
dinner beverage
• Australian’s drink
distilled spirits at home
• British like to drink at
bars and restaurants
• Chinese prefer “knockoffs” to save money and
enjoy it with green tea
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Marketing Research in the 21st
Century
• Communication Technologies
• Always “connected”—time, place, and distance
are irrelevant.
• Decreases in information acquisition, storage,
access, and transmission costs.
• Global Marketing Research
• Business research is increasingly global.
• Cultural cross-validation
• Empirical findings from one culture also exist and
behave similarly in another culture.
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