Chapter 1 Marketing Research and Managerial Decision Making

2. Chapter 1Marketing Research and Managerial Decision Making

3. Learning Objectives • Describe the impact of marketing research on marketing decisions. • Demonstrate the relationship between marketing research and marketing planning. • Provide examples of marketing research studies. • Understand the scope and focus of the marketing research industry. • Explain the ethical dimensions of marketing research. • Discuss emerging trends and new skills needed in marketing research.

4. Business Goal: We’re All Trying to Do the Same Thing 1. Get Customers 2. Keep Customers 3. Grow Customers The only difference is how we do it!

5. A lasting competitive advantage? … The only true competitive advantage comes from the understanding you have of your customer that your competitors do not have! This information has to come from the customer – most often from planned marketing research programs.

6. Competing Globally Innovation Knowledge Competitive Advantage Information

7. … . . . the function that links an organization to its market through the gathering of information that improves marketing decision-making. Marketing Research

8. Why Marketing Research? Managers often make decisions that require additional information. Marketing research is needed to obtain, analyze and interpret information for management. This challenge has increased in recent years due to an explosion in data.

9. Developing long-term relationships with customers. Components of success . . . Knowledge of the market Effective training programs Employee empowerment & teamwork Relationship Marketing

10. Examples: Customer and Market Knowledge • Demographics and Psychographics • Buying and service history • Preferences • Complaints • All other communications company has with customer. Customer Relationship Management (CRM)

11. Marketing Planning & Decision Making • Market-planning framework . . . • Broad Decisions • Which new markets to penetrate? • Which products to introduce? • Which new business opportunities to pursue? • Narrow Decisions • Advertising effectiveness • Product positioning • Sales tracking & performance monitoring • Anticipating & initiating changes in marketing practices • Need accurate information to make the right decisions

12. Marketing Decision Making and Related Marketing Research Tasks

13. Locate and identify new market opportunities Identify groups of customers Identify existing/potential competitors’ strengths and weaknesses Situation Analysis

14. Marketing Situation Analysis Target Marketing Market Analysis Market Segmentation Competitive Analysis

15. Market Analysis Competitive Analysis Importance/Performance Content Analysis Indepth Interviews Product quality/performance Formal rating and tracking approaches Shipping & location Segmentation Pricing, etc. Marketing Situation Analysis

16. Target Marketing Analysis New product opportunities Demographics, attitudinal or behavioral characteristics User profiles, usage patterns, and attitudes Effectiveness of current marketing programs

17. Target Market Characteristics and Associated Variables Measured in Target Market Analysis

18. Positioning . . . New Product Planning • Concept testing • Product testing • Test marketing Marketing Strategy Design

19. Marketing Program Development • Product Portfolio Analysis • Customer satisfaction studies • Attitudes • Intentions • Service quality studies • Mystery shopper studies • Atmosphere • Customer service • Customer appreciation

20. Marketing Program Development • Distribution Decisions • Cycle time research • Retailing research • Logistic assessment • Total cost analysis • Service sensitivity analysis

21. Information Collection Process through Retail Optical Scanning Techniques

22. Pricing decisions • Demand analysis • Sales forecasting • Integrated marketing communications • Advertising effectiveness • Attitudinal research • Personal selling • Sales tracking Marketing Program Development

23. Marketing Program Development • Pricing Decisions • Potential demand • Price sensitivity • Other factors • Demand Analysis • Sales forecasting • Qualitative • Quantitative.

24. Marketing Program Development • Integrated Marketing Communications • Promotional Decisions • Acquire information about the effectiveness of promotional programs • Use the appropriate methodology • Estimate adequate sample sizes • Develop proper scaling techniques

25. Marketing Program Development • Advertising Effectiveness • Qualitative, quantitative or both • Measure a particular ad’s ability • To generate awareness of the product • To communicate product benefits • To create a favorable predisposition for the product

26. Attitudinal Research Cognitive approach Affect approach Behavioral approach Personal Selling Measurable objectives Non-measurable objectives Sales Tracking Marketing Program Development

27. Computerized Sales Tracking Form Illustrating Key Sales Tracking Variables

28. Product Analysis Environmental Forecasting Technology Marketing Program and Implementation Control

29. Internal External Types Standardized Customized Facilitating – ad agencies, field services, consultants Marketing Research Firms

30. Fundamental Skills Communication Interpersonal Statistical Computer proficiency Changing Skills for a Changing Industry Researcher Skills Understand and interpret secondary data Making presentations Foreign language competency Negotiation Computer proficiency

31. Research Company Pricing practices Respondent abuse Not providing incentive Selling unnecessary services Examples – Unethical Activities Research User Soliciting bids with no intention of hiring Using information from the proposals yourself Promising research company a long-term relationship or additional projects to get a low price

32. Respondents Providing Dishonest Answers Faking Behavior Unethical Behavior

33. Code of Ethics of the American Marketing Association

34. More secondary data Technology-related data management Five Major Trends Evaluation of alternatives Purchase Postpurchase behavior Emerging Trendsin Marketing Research