1. 1-1 Copyright © 2010 Pearson Education, Inc. Introduction and Early Phases of Marketing Research Chapter 1

2. 1-2 Copyright © 2010 Pearson Education, Inc. Chapter Outline 1) Overview 2) Definition of Marketing Research 3) A Classification of Marketing Research 4)Marketing Research Process 5)Careers in Marketing Research 6)The Department Store Project

3. 1-3 Copyright © 2010 Pearson Education, Inc. Redefining Marketing Research The American Marketing Association (AMA) redefined Marketing Research as: The function that links the consumer, the customer, and public to the marketer through INFORMATION

4. 1-4 Copyright © 2010 Pearson Education, Inc. Definition of Marketing Research A more thorough definition for this course: Marketing research is the systematic and objective  identification  collection  analysis  dissemination  and use of information For the purpose of improving decision making related to the  identification and  solution of problems and opportunities in marketing

5. 1-5 Copyright © 2010 Pearson Education, Inc. Classification of Marketing Research Problem-Identification Research Research undertaken to help identify problems which are not necessarily apparent on the surface and yet exist or are likely to arise in the future. Example: conduct research on emerging trends in the market. Problem-Solving Research Research undertaken to help solve specific marketing problems. Example: conducting research on your pricing strategy.

6. 1-6 Copyright © 2010 Pearson Education, Inc. A Classification of Marketing Research Marketing Research Problem Identification Research Problem-Solving Research Market Potential Research Market Share Research Market Characteristics Research Sales Analysis Research Forecasting Research Business Trends Research Segmentation Research Product Research Pricing Research Promotion Research Distribution Research

7. 1-7 Copyright © 2010 Pearson Education, Inc. Problem-Solving Research 1.Determine the basis of customer segmentation Through demographics, media preferences, product preferences, etc. 2.Establish market potential and responsiveness for various segments 3.Select target markets E.g. high-end, tech-savvy, suburban customers aged 35-55. SEGMENTATION RESEARCH 1.Test product concept 2.Determine optimal product design 3.Package tests 4.Product modification 5.Brand positioning and repositioning 6.Test marketing PRODUCT RESEARCH

8. 1-8 Copyright © 2010 Pearson Education, Inc. Test marketing How does test marketing work? http://www.cbsnews.com/news/columbus-ohio- test-market-of-the-usa/ What does test marketing aim to accomplish? Why Columbus, OH?

9. 1-9 Copyright © 2010 Pearson Education, Inc. Problem-Solving Research PRICING RESEARCH  Pricing policies  Branding through pricing  Product line pricing $ALE PROMOTIONAL RESEARCH  Choosing the optimal promotional budget  Choosing the optimal promotional mix  Media decisions  Creative advertising testing  Evaluation of advertising effectiveness 0.00% APR

10. 1-10 Copyright © 2010 Pearson Education, Inc. Problem-Solving Research DISTRIBUTION RESEARCH Determine the…  Proper types of distribution  Intensity of wholesale & resale coverage  Channel margins  Ideal location(s) of retail and wholesale outlets

11. 1-11 Copyright © 2010 Pearson Education, Inc. Marketing Research Process Step 1: Defining the Problem (Chapter 2) Step 2: Developing an Approach to the Problem (Chapter 2) Step 3: Formulating a Research Design (Chapter 3-12) (Data desired, measurement decision, survey design, sampling decisions) Step 4: Doing Field Work or Collecting Data (Chapter 13) Step 5: Preparing and Analyzing Data (Chapters 14-21) Step 6: Preparing and Presenting the Report (Chapter 23) Who needs to know this process?

12. 1-12 Copyright © 2010 Pearson Education, Inc. Selected Marketing Research Career Descriptions Vice President of Marketing Research Part of top management team Directs company’s market research operation Sets goals & objectives Research Director Part of senior management Heads the development and execution of all research projects Assistant Director of Research Supervises research staff members Senior Project Manager Responsible for design, implementation, & research projects Professor/ Post-doc Conducts research for academic publication Consults outside organizations on special projects

13. 1-13 Copyright © 2010 Pearson Education, Inc. Analyst Handles details in execution of project Designs & pretests questionnaires Conducts preliminary analysis of data Junior Analyst Secondary data analysis Edits and codes questionnaires Conducts preliminary analysis of data Fieldwork Director Handles selection, training, supervision, and evaluation of interviewers and field workers Senior Analyst Participates in: Development and execution of projects Coordinates the efforts of analyst, junior analyst, & other personnel during research design and data collection Prepares final report Statistician/Data Processing Oversees experimental design, data processing, and analysis Selected Marketing Research Career Descriptions

14. 1-14 Copyright © 2010 Pearson Education, Inc. Careers in Marketing Research Career opportunities are available with marketing research firms e.g., AC Nielsen, Burke. Careers in business and non-business firms with in-house marketing research departments e.g., Procter & Gamble, Coca-Cola, the Federal Trade Commission, United States Census Bureau Advertising agencies e.g., BBDO International, Ogilvy & Mather, J. Walter Thompson Universities e.g., UMass, UNH, Northeastern, BU, Harvard, etc.

15. 1-15 Copyright © 2010 Pearson Education, Inc. Top 10 U.S. Marketing Research Firms Full list at: https://www.ama.org/Documents/Honomichl50Report_June2013.pdf https://www.ama.org/Documents/Honomichl50Report_June2013.pdf

16. 1-16 Copyright © 2010 Pearson Education, Inc. Top Local Marketing Research Firms

17. 1-17 Copyright © 2010 Pearson Education, Inc. The Department Store Project (a real example) Dr. Malhotra (from Georgia Tech and the author of our book) gathered the following information on department stores: 1.Frequency with which household members shopped at ten different department stores. 2.Preference ratings for each store. 3.Rankings of the ten stores (from most preferred to least preferred). 4.Standard demographic characteristics (age, education, etc.). How can Sears use this information?

18. 1-18 Copyright © 2010 Pearson Education, Inc. Thank You! Questions?