Introduction to Marketing Research

1. Introduction to Marketing Research Dr. Michael R. Hyman, NMSU

3. “It ain’t the things we don’t know that gets us in trouble. It’s the things we know that ain’t so.” Artemus Ward

6. Marketing Research Defined The systematic and objective process of generating information for aid in making marketing decisions

7. Nature of Marketing Research Answers marketing questions by: • Linking consumers, customers, and public to markets through information used to identify and define marketing • Generating, refining, and evaluating marketing actions • Monitoring marketing performance • Helping to understand marketing as a process

9. Marketing Research versus Marketing Information System

10. MIS vs. Marketing Research

13. Why Do Marketing Research? • Make better marketing decisions • Understand consumers and the marketplace • Find out what went wrong

14. Help managers select among viable alternatives

15. Why Not Do Marketing Research? • Lack of required resources • Poor timing in the marketplace • Decision has already been made • Managers cannot agree on needed information • Needed information already exists • Costs outweigh benefits • Lose element of surprise

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

25. Information Reduces Uncertainty I don’t know if we should enter the Australian Market?

26. Value Should Exceed Estimated Costs Costs Value • Research expenditures • Delay of marketing decision and possible disclosure of information to rivals • Possible erroneous research results • Decreased certainty • Increased likelihood of a correct decision • Improved marketing performance and resulting higher profits

27. Marketing Research Activities

32. Research by Stage in Product Life Cycle

33. Research by Type of Marketing Mix Decision

34. Qualities of a Good Researcher

35. Help manager to understand real problem Select among viable alternatives

36. Structures analysis

37. Fits technique to problem

38. Good communication skills

39. Avoids needless jargon

40. Other Qualities • Careful and conscientious • Uses insider expertise • Recognizes overt and covert purposes for marketing research • Before doing research, knows • Manager’s decision rule • Decision time horizon • Impact of wrong decision

41. Top Things Clients Want in a Research Company or Department • Maintains client confidentiality • Honesty • Punctuality • Flexibility • Delivers against projects specifications • Provides high-quality output • Responsive to client’s needs • High quality-control standards • Customer-orientated in interactions with client • Keeps client informed throughout a project

44. Considerations for Hiring Outside Suppliers • Expertise • Urgency of the decision • Personnel resources • Economic factors • Objectivity • Confidentiality • Quality control

45. Manager-Researcher Conflict

47. Reasons for Manager-Research Conflict Managers Researchers 1. Decision oriented 1. Technique oriented 2. Intuitive 2. Analytical 3. Managers like to confirm 3. Researchers like to explore 4. Time orientation toward: a. Prolonging project (“later when we have time for a complete study”) b. results about past behavior (“our trend has been . . .”) 4. Time orientation toward: a. project immediacy (“I need it now.”) b. results about future behavior (“what will sales be next year?”) 5. Not cost conscious (“you get what you pay for”) 5. Frugal (“keep the cost down”) 6. Results orientation: a. managers do not like surprises--when surprised they tend to reject the results b. concern (“aren’t we number one yet?”) c. certainty (“is it or isn’t it?”) 6. Results orientation: a. researchers love surprises b. abstraction (“our exponential gain. . .”) c. probability (“may be”) 7. Proactive 7. Reactive

48. Possible Jobs in Marketing Research