Chapter OneChapter One

Copyright © 2006McGraw-Hill/Irwin

Marketing Research For

Managerial Decision Making

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• It’s a Jeep Thing, You Wouldn’t Understand

• Definition of Marketing Research– American Marketing Association

• Marketing Research—systematic process– Designing methods for collecting information– Managing the information collection process– Analyzing and interpreting results– Communicating findings to decision markers

Value of Marketing Research

Describe and explain the impact marketing research has on

marketing decisions

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• Purpose of Marketing

• Right Fit– To the right people– At the right place and time– With the right price– Through the use of the right blend of

promotional techniques

• Uncertainty

Demonstrate how marketing research fits into the marketing planning

process

Relationship Marketing &

Marketing Research Process

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• Relationship Marketing

• Three component for Success in Relationship Marketing– Knowledge of the market– Effective training programs– Employee empowerment and teamwork

Relationship Marketing &

Marketing Research Process

Demonstrate how marketing research fits into the marketing planning

process

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• Customer Relationship Management (CRM)• Customer/market knowledge– Demographics– Psychographics– Buying and service history– Preferences– Complaints– All other communications the customer has

with the company

Relationship Marketing &

Customer Relationship Mgmt

Demonstrate how marketing research fits into the marketing planning

process

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• Data Integration

• Information Technology– Basic reporting on customers– Data mining– Statistical analysis procedures– Data visualization

• Creating Customer Profiles

Demonstrate how marketing research fits into the marketing planning

process

Relationship Marketing &

Customer Relationship Mgmt

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• Market-planning Framework– Broad Decision• Which new markets to penetrate

• Which products to introduce

• Which new business opportunities to pursue

Demonstrate how marketing research fits into the marketing planning

process

Marketing Planning and Marketing

Research

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– Narrow Based Decisions• Advertising effectiveness

• Product positioning

• Sales tracking

• Monitoring performance

• Anticipating and initiating changes in marketing practices

• Accurate Information To Make the Right Decision

Demonstrate how marketing research fits into the marketing planning

process

Marketing Planning and Marketing

Research

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Demonstrate how marketing research fits into the marketing planning

process

Exhibit 1.1

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• Situation Analysis– Locate and identify new market opportunities– Identify groups of customers– Identify existing and potential competitors

Demonstrate how marketing research fits into the marketing planning

process

Marketing Situation Analysis

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• Market Analysis– Content Analysis

– In-Depth Interviews

– Formal Rating Procedures

• Market Segmentation

• Competitive Analysis– Importance-performance

analysis• Price

• Product performance

• Product quality

• Accuracy of shipping and delivery

• Convenience of store location

Demonstrate how marketing research fits into the marketing planning

process

Marketing Situation Analysis

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• Target Marketing Analysis– New-product opportunities– Demographics, attitudinal or behavioral

characteristics– User profiles, usage patterns, and attitude– Effectiveness of a firm’s current marketing

program

Demonstrate how marketing research fits into the marketing planning

processMarketing Strategy

Design

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Demonstrate how marketing research fits into the marketing planning

processExhibit 1.2

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• Positioning

• New-Product Planning– Concept and product testing and test marketing– Product testing– Product tests

Demonstrate how marketing research fits into the marketing planning

processMarketing Strategy

Design

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• Product Portfolio Analysis– Customer satisfaction studies• Attitudes

– Service quality studies• Mystery shopper

– Atmosphere

– Customer service

– Customer appreciation

Describe and explain the impact marketing research has on marketing decisions

Marketing Program Development

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• Distribution Decisions– Cycle time research– Retailing research– Logistic assessment• Total cost analysis

• Service sensitivity analysis

Demonstrate how marketing research fits into the marketing planning

process

Marketing Program Development

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Demonstrate how marketing research fits into the marketing planning

process

Exhibit 1.3

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• Pricing Decision

• Demand Analysis

• Sales forecasting– Qualitative– Quantitative.

Demonstrate how marketing research fits into the marketing planning

process

Marketing Program Development

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• Integrated Marketing Communication– Promotional Decisions• Acquire information about the performance of a

promotional program

• Employ the appropriate methodology

• Estimate adequate sample sizes

• Develop the proper scaling techniques

Demonstrate how marketing research fits into the marketing planning

process

Marketing Program Development

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• Advertising Effectiveness– Qualitative or quantitative or both– Measure a particular ad’s ability• To generate awareness of the product

• To communicate product benefits

• To create a favorable predisposition for the product

Demonstrate how marketing research fits into the marketing planning

process

Marketing Program Development

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• Attitudinal Research– Cognitive approach

– Affect approach

– Behavioral approach

• Personal Selling– Measurable objectives

– Non-measurable objectives

• Sales Tracking

Demonstrate how marketing research fits into the marketing planning

process

Marketing Program Development

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Demonstrate how marketing research fits into the marketing planning

process

Exhibit 1.4

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• Marketing Program Control– Product Analysis– Environmental Forecasting– Technology

Describe and explain the impact marketing research has on marketing decisions

Marketing Program Implementation and

Control

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• Marketing Research Industry– Growth– Revenue Increases• To postsale customer satisfaction studies

• To retail driven product scanning systems

• To database development for long-term brand management

• To international research studies

Understand the scope and focus of the marketing research industry

The Marketing Research Industry

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• Types of Marketing Research Firms– Internal– External– Customized– Standardized– Facilitating Agencies• Advertising agencies

• Field services

• Independent consultants

The Marketing Research Industry

Understand the scope and focus of the marketing research industry

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– Fundamental skills• Communication skills

• Interpersonal skills

• Statistical skills

– Skills for Marketing Researchers• Ability to understand and

interpret secondary data

• Presentation skills

• Foreign-language competency

• Negotiation skills

• Computer proficiency

The Marketing Research Industry

Understand the scope and focus of the marketing research industry

Changing Skills For A Changing Industry

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• Unethical Activities by the Client/Research User– Soliciting bids with no intentions of hiring– Using the information from the proposals yourself– Promising a prospective research provider a long-

term relationship or additional projects to get a low price

Ethics in Marketing Research Practices

Demonstrate ethical dimensions associated with marketing research

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• Unethical Activities by the Research Provider or Research Company– Unethical pricing practices– Do not provide the promised incentive– Create respondent abuse– Selling unnecessary research service– Other

• Unethical Activities by the Respondent

Ethics in Marketing Research Practices

Demonstrate ethical dimensions associated with marketing research

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Demonstrate ethical dimensions associated with marketing research

Exhibit 1.5

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Demonstrate ethical dimensions associated with marketing research

Exhibit 1.5(continued)

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Demonstrate ethical dimensions associated with marketing research

Exhibit 1.5(continued)

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• Five Major Trends– Increased emphasis on secondary data collection methods

– Movement toward technology-related data management

– Increased use of digital technology for information acquisition and retrieval

– Broader international client base

– Movement away from pure data analysis and toward data interpretation/information management

Understand emerging trends and new skills associated with marketing research

Emerging Trends

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– The Value of Marketing Research– Relationship Marketing and the Marketing

Research Process– Relationship Marketing and Customer

Relationship Management– Marketing Planning and Marketing Research– Marketing Situation Analysis– Marketing Strategy Design

Summary

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– Marketing Program Development– Marketing Program Implementation and

Control– The Marketing Research Industry– Ethics In Marketing Research Practices– Emerging Trends

Summary