Date post: | 27-Dec-2015 |
Category: |
Documents |
Upload: | helen-little |
View: | 215 times |
Download: | 0 times |
1
Lecture 18 35. Marketing Research
36. Marketing Organisation
2
Introduction to Market ResearchPrepared for:
… in association with HK IPD, IP Australia
3
INTRODUCTION: MARKET RESEARCH
Market research is the systematic and objective identification, collection, analysis and reporting of information for the purpose of assisting organisations in decisions relating to the understanding of the behaviours and attitudes of people and their organisations, the ultimate aim being the development and implementation of solutions to problems or opportunities.
In this first chapter, the role and importance of market research will be reviewed:
What is market research? The role of market research Whether to conduct market research In-house vs. external research
4
1) THE ROLE OF MARKET RESEARCH
The role of market research is to help organisations—in this case IP agencies—align themselves to:(1) their customers; in the narrow context users of the IP agencies services, and in the wider context the general public(2) their organisational goals, which will reflect government policy and vary across individual Economies (3) changing market conditions
Market Research
Customers PolicyGoals
MarketEnvironment
Descriptive Diagnostic Predictive
Alignment
Function
Measure awareness Explain behaviour Predict outcomes / trends
5
2) WHEN TO CONDUCT A RESEARCH STUDY
No organisation should commence a research study before assessing the value of such work in relation to the expense.
The very first task is to ask: Should I conduct market research at all?
There are several situations where it may be best not to proceed:
(1) Limited financial resources
There are at least two situations in which a lack of funding should preclude marketing research:(a) When the organisation lacks the funds to do the research properly. (b) When funds are available to do the research but are insufficient to implement any recommendations from the findings of the research.
(2) Precise objectives have not been formulated
(3) The costs of conducting research outweigh the benefits (or return on objectives - ROO).
(4) Inappropriate timing
6
3) IN-HOUSE vs EXTERNAL MARKET RESEARCH
The second question: Should I conduct market research myself or hire a research company?
Some large MNCs do nearly all their research in-house, including project design and focus groups. Others choose to outsource or do both on a case-to-case basis.
The key elements necessary for successful internally managed research projects are:
(1) long-term vision; (2) clearly defined goals; (3) earmarked budget;(4) project execution and management skills; and (5) a means of measuring success.
Advantages of outsourcing research
(1) Expertise and experience(2) Confidentiality and security (3) Unbiased viewpoint(4) More efficient
Advantages of conducting in-house research
(1) Lower costs(2) Stronger domain knowledge(3) Better control
7
The case for in-house research can be made under two circumstances:
(1) Where the burden of the research effort is shared with a research firm. This can occur in several ways:
(a) the IP agency has access to surveyors (e.g. student interns) that can be trained then deployed by the research firm;(b) the IP agency has its own research instruments. Research firms will always charge for questionnaire development as this is time consuming and requires a high level of expertise. Using the Pilot template or sharing templates used by other APEC Economies—even if these still require some modification to specific objectives—should reduce the overall cost; and(c) the IP agency has a captive audience (for self-completion surveys) .
In these circumstances, a research company should still be retained in order to advise on the correct implementation, sampling, etc.
(2) Exploratory research, which does not need to be representative, can often be undertaken internally.
8
Marketing information and research
Importance of effective marketing information and research
Effective penetration of markets requires specialised and sophisticated approaches to identify, assess and satisfy
market demands.
Effective marketing information and research enables an organisation to make better decisions on the most appropriate
market entry and competitive strategies.
Defining market research
Marketing research is the function which links the consumer, customer, and public to the marketer through information -
information used to identify and define marketing opportunities and problems; generate, refine and evaluate marketing actions, monitor marketing performances, and
improve understanding of marketing as a process.
Marketing research specifies the information required to address those issues; designs the method of collecting information;
manages and implements the data collection process; analyses the results; and communicates the findings and their
implications.
McDonald and Gates, 1990
The role of marketing research
• Consumer markets - In EU important to manufacturers as retailers act as buffer between manufacturers and end
consumer. Provides accurate and reliable flow of information to the marketing decision makers.
• B2B markets - Helps organisations understand the marketing environment and make better informed decisions about
marketing strategies.
Types of marketing research
• Exploratory.
• Descriptive.
• Causal or predictive.
Origins of research data
• Qualitative research - the collection of data that are open to interpretation, e.g. peoples’ opinions.
• Quantitative research - the collection of data that is quantifiable and is not open to the same level of interpretation as qualitative research, e.g. sales
figures, market share data, etc.
Continuous research
On going research usually undertaken by market research agencies and offered to organisations for a subscription or
agreement to purchase the updated findings.
Approaches include:
• Consumer panels.
• Home audits.
• Omnibus surveys.
• Retail audits.
Marketing information systems
(MIS)
Effective systems of organising, structuring and managing the storage, access and dissemination of
market research data.
The marketing information system
Figure 6.1
Defining information requirements
Table 6.1
Sources of marketing information
• External sources - ad hoc studies using secondary or primary research or continuous data which contains views from customers, suppliers, channels of distribution, strategic
alliance partners, independent third parties, etc.
• Internal sources - information obtained from internal record keeping systems, sales reps, call details, customer enquiries,
etc.
The marketing research process
Figure 6.2
Secondary research (1 of 2)
• Sometimes referred to as desk research.
• Consists of data and information that is already in existence and which can be accessed by the organisation.
• Can be cheaper and quicker to access than primary research.
• May provide an organisation with information that it would not otherwise have time to gather.
• Secondary data may not always be up to date, be applicable to an organisation, or give the full picture.
Secondary research (2 of 2)
Secondary data sources include:
• Government - e.g. Central Statistical Office.
• Chambers of commerce.
• Trade associations.
• Commercial publications - e.g. Dun & Bradstreet, Mintel, etc.
• Internet - e.g. country reports and news, etc.
Primary research
• Sometimes called field research.
• Is undertaken or commissioned by an organisation for a specific purpose.
• The required information does not already exist.
• It is exactly tailored to a problem.
• Can be expensive and time consuming.
Online market research
The website provides several novel methods for the collection of primary data for example:
• Server based log file analysis of site activity.
• Browser based site activity data.
• Panel activity.
• Online focus groups.
• Online questionnaires.
• Mystery shoppers.
Advantages and disadvantagesof internet research
Table 6.5(a)Source: Alex Johnston, Technology and Communications Director for New Media Research International, as reported by Gray
(2000b).
Advantages and disadvantagesof internet research
Table 6.5(b)Source: Alex Johnston, Technology and Communications Director for New Media Research International, as reported by Gray
(2000b).
Sampling
Figure 6.3Source: Adapted from Tull and Hawkins (1990).
Business Functions and Organisation
Business Functions
Human Resources
Sales and Marketing
Research and Development
Production/Operations
Customer Service
Finance and Accounts
Administration and IT
Human Resources Recruitment and retention
– Job descriptions
– Person Specifications
Dismissal
Redundancy
Motivation
Professional development and training
Health and safety and conditions at work
Liaison with trade unions
Sales and MarketingMarket research
Promotion strategies
Pricing strategies
Sales strategies
The sales team
Product – advice on new product development, product improvement, extension strategies, target markets
Research and Development
New product development
Product improvements
Competitive advantage
Value added
Product testing
Efficiency gains
Cost savings
Finance and AccountsCash flow
– Monitoring income/revenue
– Monitoring expenditure
Preparing accounts
Raising finance
– Shares
– Loans
Links with all other functional areas
Production/Operations Acquiring resources
Planning output – labour, capital, land
Monitoring costs
Projections on future output
Production methods
– Batch; Flow; Job; Cell
Efficiency
Customer Service
Monitoring distribution
After-sales service
Handling consumer enquiries
Offering advice to consumers
Dealing with customer complaints
Publicity and public relations
Business Organisation
Organisation by type
Global businesses – complex organisation structures
National – organisation possibly stretches throughout the country
Regional – could be through a county or wider area (North West, South East, etc.)
Local – small organisations serving local area or community
Business Organisation
Authority – the right to make decisions and carry out tasks
Span of control – the number of people a superior is responsible for
Chain of Command – the relationship between different levels of authority in the business
Hierarchy – shows the line management in the business and who has specific responsibilities
Delegation – authority to carry out actions passed from superior to subordinate
Empowerment – giving responsibilities to people at all levels of the business to make decisions
Administration and IT
•Managing estates – cleaning, health and safety, maintenance, security
•Reception
•Clerical work – reporting, recording, record keeping, communication
•Overview of quality control
•Use of IT systems
Organisation Charts
Hierarchical Structure
Managing Director
Sales DirectorMarketingDirector
Finance Director
A B C D Market Research
Strategy PurchasingManager
Sales Manager
AccountsManager
Organisation Charts
MD
Middle Management
Workers
Pyramidal Structure
SeniorManagement
Organisation Charts
R&D
Marketing Sales
Production
Finance
MD
Centralised/Entrepreneurial
Organisation Charts
Sales
Marketing
Production
Accounts
Collaborative
Organisation Charts
Marketing Sales
ProductionFinance
R&D
Circular/Flat
Organisation Charts
Project
Marketing
R&DSales
Finance
HRProduction
Matrix Structure
Organisation Charts
Changes to business structures
Linked to new thinking on leadership and management
Less hierarchical
Emphasis on communication and collaboration between sections
Global businesses – more complex structures
DEVELOPING SUCCESSFUL
MARKETING AND CORPORATE STRATEGIES
CHAPTER
DEFINITION OF ORGANIZATIONS
• Profit
Business Firm
• Organizations as defined by profit
Nonprofit Organization
Both commonly referred to as the Firm
the Company the Corporationthe Organization
ORGANIZATION’S LEVELS OF STRATEGY
Corporate Level-create value for stockholders
Functional Level –execute plan on daily basis
Business Unit Level- plan direction for each SBU
Department-specialized functions of daily operation
Mission -statement of the organization’s purpose for existing, often identifying its customers, markets,
products, technology, and values.
Goals or Objectives
• Quality
• Profit
• Sales
• Market Share
• Customer Satisfaction
• Employee Welfare
• Social Responsibility
FOCUS OF THE STRATEGY
SETTING STRATEGIC DIRECTIONS
- Competencies-identify what you do best
• A Look Around: Where Are We Now?
- Identify your Customers
• Competitive Advantage-your unique strength
- Competitors-identify the biggest threats
SETTING STRATEGIC DIRECTIONS
• Growth Strategies: Where Do We Want to Go?
Business Portfolio Analysis (BCG Matrix)
• Relative Market Share-horizontal axis
• Market Growth Rate-vertical axis
Cash Cows (LH)
Stars (HH)
Dogs (LL)
Question Marks or Problem Children (HL)
Boston Consulting Group portfolio analysis for Kodak sbu’s in 2003
Kodak self-service kiosk
Kodak film sales: US,Canada, & W. Europe
Kodak digitalphoto printer
Kodak digitalcamera
SETTING STRATEGIC DIRECTIONS
• Growth Strategies: How Do We Get There?
Market-Product Analysis
• Market Penetration- same product; same market
• Market Development- same product; new market
• Product Development-new product; same market
• Diversification - new product; new market
Four market-product strategies: alternative ways to expand sales revenues for Ben & Jerry’s
THE STRATEGIC MARKETING PROCESS
• How do we allocate our resources to get wherewe want to go?
• How do we convert our plans to actions?
• How do our results compare with our plans,and do deviations require new plans?
Marketing Plan
Step 1: SWOT Analysis
THE STRATEGIC MARKETING PROCESS -The Planning Phase
GOOD NOWMaintain & build
GOOD FUTUREPrioritize &
optimize
BAD NOWRemedy or stop
BAD FUTUREIntercept and
counter
Ben & Jerry’s: SWOT analysis
Step 2: Market-Product Focus and Goal Setting
• Market Segmentation
• Set Marketing and Product Goals
• Select Target Markets
• Find Points of Difference
• Position the Product
Which Product-Which Customers
Step 3: Marketing Program
• Product Strategy
• Price Strategy
• Promotion Strategy
• Place (Distribution) Strategy
Marketing Program Strategy
Elements of the marketing mix that comprise a cohesive marketing program
Obtaining Resources
Designing the Marketing Organization-delegating who does what
Developing Schedules-Linear or Gantt
THE STRATEGIC MARKETING PROCESS-The Implementation Phase
Tasks to complete a term project
Gantt chart for scheduling the term project
Comparing Results With Plans to Identify Deviations
Acting on Deviations
• Filling the Planning Gap – Marketing’s Job
THE STRATEGIC MARKETING PROCESS-The Control Phase
Evaluation & control of Kodak’s marketing program
Profit
Profit is the reward to a business firm for the risk it undertakes in offering a product for sale. It is also the money left over after a firm’s total expenses
are subtracted from its total sales.
Profit is the reward to a business firm for the risk it undertakes in offering a product for sale. It is also the money left over after a firm’s total expenses
are subtracted from its total sales.
Mission is a statement of the organization’s scope, often identifying
its customers, markets, products, technology, and values.
Mission is a statement of the organization’s scope, often identifying
its customers, markets, products, technology, and values.
Mission
Goals or objectives convert the mission into targeted levels of performance to be
achieved, often by a specific time.
Goals or objectives convert the mission into targeted levels of performance to be
achieved, often by a specific time.
Goals or Objectives
Market share is the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry,
including the firm itself.
Market share is the ratio of sales revenue of the firm to the total sales revenue of all firms in the industry,
including the firm itself.
Market Share
A marketing plan is a road map for the marketing activities of an organization for a specified future period of time. It allocates the 4P’s of a firm to reach the
target market.
A marketing plan is a road map for the marketing activities of an organization for a specified future period of time. It allocates the 4P’s of a firm to reach the
target market.
Marketing Plan
SWOT analysis is an acronym describing an organization’s appraisal of
its internal Strengths and Weaknesses and its external Opportunities and
Threats.
SWOT analysis is an acronym describing an organization’s appraisal of
its internal Strengths and Weaknesses and its external Opportunities and
Threats.
SWOT Analysis
Market segmentation involves aggregating prospective buyers into groups, or segments, that (1) have
common needs and (2) will respond similarly to a marketing action.
Market segmentation involves aggregating prospective buyers into groups, or segments, that (1) have
common needs and (2) will respond similarly to a marketing action.
Market Segmentation
Points of difference are those characteristics of a product that make it
superior to competitive substitutes.
Points of difference are those characteristics of a product that make it
superior to competitive substitutes.
Points of Difference