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Using Research to Avoid Mistakes

Using Research to Avoid Mistakes. Chapter 9. Businesses Need Market Information. In order to meet customer needs ( marketing concept) , business people must understand customers

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Using Research to Avoid Mistakes

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  1. Using Research to Avoid Mistakes Chapter 9

  2. Businesses Need Market Information • In order to meet customer needs (marketing concept), business people must understand customers • Market information is necessary to to understand market segments, the global market, competition and change in the marketplace

  3. Market Segments • Businesses cannot meet the needs of all consumers • Businesses gather information to determine the differences among market segments and how to best meet the unique needs and wants of each segment

  4. The Global Market • Gathering information about a country and its people helps a business determine how to become effective global business people

  5. Competition • Becoming much more intense for most businesses • Decisions that will ensure customers will prefer one company’s products over another are becoming more difficult • Gathering information about competing business’s strengths and weaknesses is necessary to help businesses become more competitive

  6. The Changing Marketplace • What has changed? • Customer needs (technological advances, social/ cultural norms have changed) • Greater customer choices to satisfy their needs (promotion, competition and distribution) • Ease with which needs may be satisfied (financially & accessibility) • More information available and more informed consumers (consumer advocacy)

  7. Business Response to the Changing Marketplace • Effective marketing information improves the decisions of businesses • Effective marketing information reduces the risk(s) of decision-making

  8. What Types of Information Are Needed? Textbook, page 244

  9. Types of Information Needed for Effective Marketing Decisions • Different businesses need different information, but all businesses need information about: • Customers • Marketing Mix • Business Environment

  10. What Does a Business Need to Know About Customers? • Age • Gender • Income • Education • Family size • Home ownership • Address • Occupation • Attitudes • How money is spent • Primary needs • Product purchases • Purchase frequency • Brand preferences • Information needs • Media preferences • Shopping behavior

  11. What Does a Business Need to Know About Their Marketing Mix? • Basic products • Product features • Services • Product packaging • Guarantees • Repairs • Product price • Credit choices • Discounts • Location of sale • Type of store used • Display procedures • Use of salespeople • Promotion methods • Promotional message • Promotional media

  12. What Does a Business Need to Know About the Business Environment? • Type of competition • Competitor’s strengths • Competitor’s strategies • Economic conditions • Government regulations • New Technology • Consumer protection • Ethical issues • Tax policies • Proposed laws • International markets

  13. How is Marketing Information Managed? • Marketing Information System (MkIS) - an organized method of collecting, storing, analyzing, and retrieving information to improve the effectiveness and efficiency of marketing decisions

  14. Marketing Information Systems • All effective marketing information systems contain five elements: 1. Input 2. Storage 3. Analysis 4. Output 5. Decision-making

  15. Elements of a MkIS • Input - the information that goes into the system • many include company records, reports or information on competitors and customers

  16. Elements of a MkIS • Storage – the resources used to maintain the information so that it can be used when needed • May be as simple as a filing cabinet or a computer flash drive or external hard drive

  17. Elements of a MkIS • Analysis – the way in which information is studied so decisions can be made • Programs are written for computer systems that organize and analyze information

  18. Elements of a MkIS • Output – the results of the analysis and the ways it is presented to the people who need the information • Usually reports are prepared in which the information is summarized for managers to use in making decisions

  19. Elements of a MkIS • Decision-making • Because information is collected, stored and analyzed, decisions should be better and decision-maiking should be faster

  20. How is Marketing Research Used to Solve Problems? • Marketing Research – a procedure to identify solutions to a specific marketing problem through the use of scientific problem-solving

  21. Implementing a Marketing Research Study • Define the problem • Analyze the solution • Develop a data-collection procedure • Gather and study information • Propose a solution

  22. Define the Problem • The problem should be specific enough that researchers know what to study, who to involve in the study, and the types of solutions or results that might be appropriate for the problem

  23. Analyze the Situation • Review available information including similar problems or other studies that have been previously completed • A careful analysis may result in identifying a solution without further investigation

  24. Develop a Data-Collection Procedure • In this step the actual marketing research study is planned • There are two types of data that can be collected – secondary data and primary data

  25. Secondary Data • Def. – information already collected for another purpose that can be used to solve the current problem • Examples include: company records, government reports, independent research institutions, and trade associations and other business groups

  26. Primary Data • Def. – information collected for the first time to solve the problem being studied • It is the result of a study designed specifically in response to current needs of the company

  27. Gather & Study Information • No matter what method is used to gather the information, procedures must be carefully developed and followed to be sure the results are accurate

  28. Selecting the Participants • All of the people in the group the company is interested in studying are known as the population • A smaller group selected from the population is a sample • When selecting a sample, the researcher usually wants to be sure the small group is representative of the larger group (random sampling)

  29. Collecting the Data • When gathering information directly from other people, researchers must be careful to maintain the privacy of the individual and treat the person ethically • People reviewing the data must do so objectively and impartially (without bias)

  30. Analyzing the Data • First the information must be organized so that it is meaningful and easy to study in order to solve the problem for which the research was conducted • Numerical data is the easiest to organize

  31. Summaries of Marketing Information • The results of a study are usually organized into tables and graphs making it easier to analyze a great deal of information in a brief time and to make comparisons of information from different groups • The results are often summarized and analyzed in several different ways allowing marketers to consider several possible solutions

  32. Propose a Solution • Market researchers do not usually make decisions about solutions; they prepare a report of the study’s results for the marketing managers • Reports may be oral, written or both

  33. Preparing a Marketing Report • When preparing a report two items are very important: • The person preparing the report must know who will be receiving and reading the report • The report must clearly describe the purpose of the study and the research procedures following to collect the information in the report

  34. Research Report Format – Statement of the Problem • Organized the same as the study • Begins with a statement of the problem or the purpose of the research including a brief discussion of why the study was needed

  35. Research Report Format – Review of Secondary Data • The opening is followed by a summary of the secondary research that was conducted • What company reports or documents were reviewed? • Were the competition’s financial statements examined? • Is there any information in trade or industry publications pertaining to the problem?

  36. Research Report Format – Research Procedures • Description of the procedures used in the study including the population studied and the way a sample was obtained • Describes method(s) used to collect information (including surveys, observations or experiments)

  37. Research Report Format – Results of the Research • Most important part of the report • Results are presented in the form of tables or graphs with brief written/spoken explanations

  38. Research Report Format – Summary and Recommendations • Conclude with a summary of the most important information from the study • May also contain recommendations for solutions

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