Introduction to Marketing Research

1. Introduction to Marketing Research • Marketing Problems • Wisconsin Bell has a capacity problem • During 10 – 11am and 2 – 3pm the long distance networks are stressed • In order to shift calls to different times, the Product Manager decides to offer customers discounts on calls placed between 11:30am – 1:30pm • Will customers shift their calling patterns?

2. Introduction to Marketing Research • Marketing Problems • Pepsi Foods (food supplier for Pizza Hut, Taco Bell and Burger King) customer service ratings are fine (5.7 on a scale from 1 to 7), yet market share decreased again last quarter (down 2 more points) • Why is market share decreasing?

3. Introduction to Marketing Research • Marketing Problems • 3M has developed a new “abrasive” – it is a less intrusive alternative (it creates less of a mess) to sand blasting (and is more effective) • How much will customers pay for this product?

4. Introduction to Marketing Research • Marketing Problems • Maytag introduces a new line of washers and driers • Are customers who purchased them satisfied?

5. Introduction to Marketing Research • How do we solve these problems? • Hunches of Managers • NO! • Need objective information • Need research • Research Provides • Help managers reduce decision-making risk • Importance of Marketing Research to Management • Descriptive – describes conditions and/or situations • Customer satisfaction is down • Diagnostic – diagnoses actual problems • Why is customer satisfaction down? • Predictive – predict what is going to happen in the future • If satisfaction is at 6.0 (out of 7), what are future sales?

6. Introduction to Marketing Research • Marketing Research Defined • Systematicgathering, recording, and analyzing data about problems related to the marketing of ideas, goods, and services • Who Uses Marketing Research • Marketing/Brand Managers • Help “position” the brand with respect to competitors • Advertising/Promotion Managers • Determine the effectiveness of their campaigns • Sales Managers • Which reps are performing well? poorly? Why? • Any marketing manager that needs information to help make better decisions

7. Introduction to Marketing Research • Marketing Concept and Marketing Research • Determine the marketing mix in accordance with the needs and wants of a set of target customers • How does marketing research “fit” with the marketing concept? • Helps identify target customers • Identifies target customers’ needs and wants • Predict target customers’ responses to marketing mix alternatives • Help explain why the responses are what they are

8. Introduction to Marketing Research • Marketing Research and Marketing Performance • All managers are interested in results (performance) • Marketing Research can be used to: • Monitor Sales • Accounting reports come too late • Measure market share – percent of customers in the target market that purchase our brand • Measure customer share – percent of an individual customer’s purchases from us

9. Introduction to Marketing Research • Marketing Research and Marketing Performance • Marketing Research can be used to: • Assess Customer Satisfaction • Maytag routinely performed “first 100 satisfaction” studies • Make sure to “base-line” results • Need to compare to someone • Advertising/Promotional Effectiveness • Pre-Tests – assess reactions before campaign starts • ARS Persuasion System – after seeing ads in a laboratory setting, customers are asked if they would choose advertised brand (Fisher Price) • Post-tests – assess the performance of a campaign • Burke Day-after-Recall (DAR) tests • Behavior based evaluations – e-Trade looks at number of inquiries as a result of “pop-up” ads

10. Introduction to Marketing Research • When to conduct Marketing Research? • Should a $100K study be performed to provide information on a $10K decision? • Need to assess the value of the research • Cost of research versus perceived costs of making a “bad” decision • Thus, when it is financially wise to do so!

11. Introduction to Marketing Research • Who performs the research tasks? • Primary Research Firms

12. Introduction to Marketing Research • Who performs the research tasks? • Secondary Research Firms