Marketing Research

Marketing Research Aaker, Kumar, Day and Leone Tenth Edition Instructor’s Presentation Slides

ChapterOne A Decision Making Perspective on Marketing Intelligence http://www.drvkumar.com/mr10/

http://www.drvkumar.com/mr10/ Market Research

http://www.drvkumar.com/mr10/ Business Intelligence • BI is the ability to access data from multiple sources within an organization and deliver it to business users for analysis • It links the disparate operational systems to the end users of the data, thus creating an environment with free flow of information • It offers a reliable barometer of business performance • It helps to analyze what is behind trends and anomalies in the business

Business Intelligence .................... Management Intelligence Marketing Intelligence Accounting Intelligence Financial Intelligence Customer Relationship Marketing/ Database Marketing Marketing Research Primary Sources Secondary Sources Standardized Sources Provide data on Prospects Customers Competition Products/Markets http://www.drvkumar.com/mr10/ Business Intelligence

http://www.drvkumar.com/mr10/ What is Marketing Intelligence? Market intelligence (MI) is, “the process of acquiring and analyzing information in order to understand the market (both existing and potential customers); to determine the current and future needs and preferences, attitudes and behavior of the market; and to assess changes in the business environment that may affect the size and nature of the market in future.” - Cornish S. L

http://www.drvkumar.com/mr10/ Need for Marketing Intelligence • Producers have little direct contact with consumers (geographical distance and channel layers). • Channel has little knowledge about customer attitudes, preferences and changing tastes. • Need to understand competition, without spying on them. • Management goals involve sales targets and market share achievement. • Need to identify successful new product developments early in the process to ensure growth and revenue maximization by finding a balance between costs and prices of products.

http://www.drvkumar.com/mr10/ Domains of Marketing Intelligence Brand and Pricing decisions Keeping stakeholders happy Product Decisions Market estimation, competitive bench- Marking & distribution Customer Segmentation decisions

http://www.drvkumar.com/mr10/ Marketing Research • Marketing Research, a critical part of Marketing Intelligence helps by providing accurate, relevant and timely (ART) information • Links consumer, customer, and public to the marketer through information used to: • Identify and define marketing opportunity and problems • Generate, redefine and evaluate marketing actions • Monitor marketing performance • Improve understanding of marketing as a process • (from AMA’s official definition of Marketing Research)

http://www.drvkumar.com/mr10/ Role of Marketing Research in Managerial Decision Making Four Stages of Market Planning Process • Situation analysis • Strategy development • Marketing program development • Implementation

http://www.drvkumar.com/mr10/ Marketing Planning Process Situation Analysis • Understand the environment and the market • Identify threats and opportunities • Assess the competitive position • Define the business scope and • market segments served • Establish competitive advantages • Set performance objectives Strategy Development • Product and channel decision • Communication decisions • Pricing • Personal selling decisions Marketing Program Development • Performance monitoring • Refining strategies and program Implementation

http://www.drvkumar.com/mr10/ Situation Analysis Analysis of • Market environment • Market characteristics • Consumer behavior Research Approaches • Organize information obtained from prior studies (secondary) • Focus groups

http://www.drvkumar.com/mr10/ Strategy Development Market Research Provides Information to Assist Management With Three Critical Decisions: • What business should we be in? • How will we compete? • What are the objectives for the business?

http://www.drvkumar.com/mr10/ Marketing Program Development • Programs embrace specific tasks • Action program usually focuses on a single objective in support of one element of overall business strategy Representative Decisions that Draw on Marketing Research: • Segmentation decisions • Product decisions • Distribution decisions • Advertising and promotion decisions • Personal selling decisions • Price decisions • Branding decisions • Customer satisfaction decisions

http://www.drvkumar.com/mr10/ Implementation • Starts with decision to proceed with a new program or strategy • Set specific measurable objectives for all elements of marketing program • Shift research focus to : • "Did the elements achieve their objectives?" • “Should the marketing program be continued, discontinued, revised or expanded?" Factors Influencing Marketing Research Decisions • Relevance • Type and Nature of Information Sought • Timing • Availability of Resources • Cost-benefit Analysis

http://www.drvkumar.com/mr10/ Ethics in Marketing Research Ethics of the Sponsor • Overt and covert purposes • Dishonesty in dealing with suppliers • Misuse of research information Ethics of the Supplier • Violating client confidentiality • Improper execution of research Abuse of Respondents • Falsifying answers

http://www.drvkumar.com/mr10/ Conquering Latino Homes • Hispanics account for nearly 15% of the U.S. population. • Research shows that Latino households contribute $600 billion of $1.3 trillion purchasing power of multicultural population. • In 2003 only 5.1% of total advertising dollars in the United States was focused on Latinos. • By 2050, Hispanic population would represent 25% of US population. • What do you think the problem is?

http://www.drvkumar.com/mr10/ P&G Luring Women with their Feminine Toothpaste • P&G has came out with “Rejuvenating Effects” a gender specific toothpaste targeting the female customers, who do 82% of the grocery shopping. • The flavor and package of the product was decided on the basis of the results from a customer survey filled out by women. • Though the product is priced slightly higher than the other brands P&G hopes to make women think about the toothpaste in the same light as skin care lotions and shampoo.

http://www.drvkumar.com/mr10/ Harley Davidson Exploring New Markets • Problem: Flat domestic scales • Solution: • In 1999, Harley-Davidson started a rental program which provided a way to hook customers on riding and thereby entice them into buying a motorcycle. • 40 percent of those enrolled in the program were female and about 30 percent were under the age of 35 • Result: • Motorcycles rented went up from 401 days in 1999 to a total of 224,134 days worldwide in 2004. • 32 percent of rental customers surveyed bought a bike or placed an order after renting, another 37 percent were planning to buy one within a year. • Nearly half of the renters spent more than $100 on Harley-Davidson accessories, such as T-shirts and gloves.

Marketing Research