The Nature Of Marketing Research

1. The Nature Of Marketing Research • Marketing Research Defined • The systematic and objective process of generating information to aid in making marketing decisions • The process includes: • Specifying what information is required • Designing the method for collecting information • Managing and implementing the collection of data • Analyzing the results • Communicating the findings and their implications

2. Basic and Applied Research • Basic (Pure) Research • Research conducted to expand the limits of knowledge, to verify the acceptability of a given theory, or to learn more about a certain concept • Attempts to expand the limits of marketing knowledge in general • Is not aimed at solving a pragmatic problem • Applied Research • Research conducted when a decision must be made about a real-life problem • Example: ???

3. The Scientific Method • Scientific Method • The techniques and procedures used to recognize and understand marketing phenomena • The analysis and interpretation of empirical evidence (facts from observation or experimentation) to confirm or disprove prior conceptions

4. The Marketing Concept • Marketing Concept • The most central idea in marketing thinking, which calls on managers to be consumer-oriented, to stress long-run profitability rather than sales volume, and to adopt a cross-functional perspective • Consumer oriented—decisions are made with a conscious awareness of their effect on the consumer • Emphasis on long-run profitability rather than short-term profits or sales volume • Cross-functional perspective—marketing is integrated across other business functions

5. Keeping Customers and Building Relationships • Relationship Marketing • The idea that a major goal of marketing is the building of long-term relationships with the parties that contribute to an organization’s success • A sale is not the end of a process but the start of an organization’s relationship with a customer—marketers want customers for life • Managing the relationships that will bring about additional exchanges—satisfied customers will return to a company that has treated them well

6. Total Quality Management • Total Quality Management • A business philosophy that focuses on integrating customer-driven quality throughout an organization with continuous improvement of product quality and service • Focuses on integrating customer-driven quality throughout the organization by evaluating itself through the eyes of the customer • Stresses continuous improvement—quality improvement is every employee’s job

7. Marketing Research: A Means for Implementing the Marketing Concept • Marketing research can help: • Maximize customer satisfaction with purchase • Identify after-sale services • Prevent commercialization of products that are not consumer-oriented • Identify optimal pricing to maximize profitability • Increase sales efficiency through effective use of market data.

8. The Managerial Value of Marketing Research for Strategic Decision Making • Developing and implementing a marketing strategy involves four stages: 1. Identifying and evaluating opportunities 2. Analyzing market segments and selecting target markets 3. Planning and implementing a marketing mix that will satisfy customers’ needs and meet the objectives of the organization 4. Analyzing marketing performance

9. Identifying and Evaluating Opportunities • Monitoring the competitive environment for signals indicating a business opportunity: • Helps managers recognize problems and identify opportunities for enriching marketing efforts • Motivates a firm to take action to address consumer desires in a way that is beneficial to both the customers and to the firm • Identifies changes in customer needs, uses, and demand for products • Example: ???

10. Analyzing and Selecting Target Markets • Analyzing and Selecting Target Markets • Determining which characteristics of market segments distinguish them from the overall market • Example: ???

11. Planning and Implementing a Marketing Mix • Product Research • Studies designed to evaluate and develop new products and to learn how to adapt existing product lines • Concept testing • Brand-name evaluation • Package testing • Pricing Research • Involves finding the amount of monetary sacrifice that best represents the value customers perceive in a product after considering various market constraints

12. Planning and Implementing a Marketing Mix (cont’d) • Distribution Research • Studies aimed at selecting retail sites or warehouse locations in support of the distribution channel • Promotion Research • Investigates the effectiveness of premiums, coupons, sampling deals, and other sales promotions • The Integrated Marketing Mix • Research studies investigate various combinations of marketing ingredients to gather information to suggest the best possible marketing program

13. Analyzing Marketing Performance • Performance-monitoring Research • Research that regularly provides feedback for evaluation and control of marketing activity • “What went right/wrong and why?”

14. Time Constraints Availability of Data Nature of the Decision Benefits versus Costs Conduct Marketing Research Is sufficient time available before a managerial decision must be made? Is the information already on hand inadequate for making the decision? Is the decision of considerable strategic or tactical importance? Does the value of the research information exceed the cost of conducting research? Yes Yes Yes Yes DETERMINING WHEN TO CONDUCT MARKETING RESEARCH No No No No Do Not Conduct Marketing Research When is Marketing Research Needed? • The determination of the need for marketing research centres on: • Time constraints • The availability of data • The nature of the decision • Benefits versus costs

15. Marketing Research in the 21st Century • Global Marketing Research • Business research is increasingly global • Market knowledge is essential: • General information about a country’s economic conditions and political climate • Cross-validation of cultural and consumer factors • Market and competitive conditions—demand estimation • Growth of the Internet • The Internet and other information technologies are dramatically changing the face of marketing research