Ovais IMSciences January 23, 2014 Lectures 3 Marketing Research and The phenomena of marketing 1

1. Ovais IMSciences January 23, 2014 Lectures 3 Marketing Research and The phenomena of marketing 1

2. CLASSIFICATION OF MARKETING RESEARCH • There are several ways of classifying mkt research: • By application of research results • basic vs applied research • By focal research design • exploratory, descriptive, or causal research • By type of data collected • qualitative or quantitative research • By locus of problem • problem identification or problem solving research,

3. Marketing research Marketing research . . . .. . . links the consumer, customer and public to the marketer through informationwhich is used to identify and define marketing opportunities and problems; to generate, refine and evaluate marketing actions; and to improve understanding of marketing as a process and of the ways in which specific marketing activities can be made more effective.

4. THE ROLE OF MARKETING RESEARCH IN A FIRM • MR is important in most business firms because it helps them to: • implement the marketing concept - the philosophy of modern marketing • carry out strategic marketing - the practice of modern marketing

5. 1) The Role of MR in Implementing the Marketing Concept The Marketing Concept - is a modern philosophical idea that identifies three components to successful marketing: • Consumer/Customer orientation • Cross-functional integration • Profit orientation  Long run profitability Other key concepts in modern marketing are: • Customer Relationship Management (CRM)  building and maintaining long-term relationships with valued customers • Total Quality Management (TQM) – focus on continuous, customer-driven quality improvements

6. ..Marketing Research and the Marketing Concept • MR helps a firm to become customer oriented by providing information for the firm to: • identify customer needs • determine ways to satisfy those needs • measure customer satisfaction so the firm can improve its performance • eliminate the commercialization of products that are technically exciting, but that do not satisfy customer needs. • MR helps a firm to adopt a cross-functional integration by: • gathering market information, and • communicating the information to all relevant departments • MR information links all departments to each other just like a string links the beads of a rosary together.

7. ..Marketing Research and the Marketing Concept • MR helps a firm to improve its profitability by providing information for: • sales and cost analyses • selective targeting, etc • MR helps a firm to implement CRM by: • gathering and storing customer-related information • designing data-mining projects to better serve customers • MR helps a firm to implement TQM by • analyzing and bringing the customer perspective to quality improvement efforts • collecting and analyzing information for bench-marking

8. 2) The Role of MR in Strategic Marketing Strategic Marketing- What marketing managers do to help chart the future strategic directions of their firms. It generally involves: • identifying and evaluating market opportunities • analyzing market segments and selecting target markets • planning and implementing the marketing programs (the marketing mix) • analyzing marketing performance

9. Role of MR in SM: Identifying and Evaluating Market Opportunities MR provides information for: • diagnosing markets, e.g. changes in demographics, consumer tastes, preferences, etc • estimating market potentials and forecasts • evaluating market opportunities

10. Role of Marketing Research in Strategic Marketing: Analyzing Market Segments and Selecting Target Markets Marketing Research provides information to determine: • segment characteristics • segment growth potential • segment attractiveness, etc

11. Role of MR in SM : Planning and Implementing Marketing Programs MR provides information on all aspects of the 4Ps • Product research (e.g. concept testing, product testing, brand name evaluation, etc) • Pricing related information (e.g. competitive price levels, customers' price consciousness, effectiveness of price discounts, etc) • Place-related information (e.g. effectiveness of alternative distribution channels, retail site location, optimum amount of shelf space, etc) • Promotion-related information (e.g. effectiveness of different types of ads, sales promotion methods, message

12. Role of MR in SM : Analyzing Market Performance Marketing Research provides information to: • determine market shares • assess brand health • assess customer satisfaction levels, etc.

13. FACTORS AFFECTING DECISION TO CONDUCT OR NOT CONDUCT MARKETING RESEARCH • Time Constraints – When there are time constraints to a decision research may not be conducted • Availability of Data – When data to help solve the problem or make the decision is already available internally research may not be conducted • Nature of the Decision – When the decision is tactical as opposed to strategic research may not be conducted • Benefits vs. Costs – When the cost of gathering the information exceeds its benefit in reducing the risk of a wrong decision research may not be conducted. The relevant questions to ask are: • Is the payoff from the research worth the investment? • Will the information collected improve the quality of the decision enough to justify the expenditure? • Is the proposed expenditure the best use of the funds?

14. Determining When to (or Not to) Conduct Marketing Research Time Constraints Availability of Data Nature of the Decision Benefits vs. Costs Is sufficient time available? Information already on hand inadequate? Is the decision of strategic or tactical importance? Does the information value exceed the research cost? Conduct Marketing Research Yes Yes Yes Yes No No No No Do Not Conduct Marketing Research