1. Essentials of Marketing Research William G. Zikmund
Chapter 1:
The Nature of
Marketing Research

2. The Nature of Marketing Research
Marketing research is one of the principal tools for answering questions because it:
Links the consumer, customer, and public to the market through information used to identify and define marketing
Generates, refines, and evaluates marketing actions
Monitors marketing performance
Underlines the understanding of marketing as a process

3. Marketing Research Defined
The systematic and objective process of generating information for aid in making marketing decisions

4. The Marketing Research Process
This process includes:
specifying what information is required;
designing the method for collecting information;
managing and implementing the collection of data;
analyzing the results; and
communicating the findings and their implications.

5. Information Reduces Uncertainty I don’t know if we should enter the
Australian
Market.
Information
Reduces
Uncertainty

6. “It ain’t the things we don’t know that gets us in trouble
“It ain’t the things we don’t know that gets us in trouble. It’s the things we know that ain’t so.”
Artemus Ward

7. Marketing Research Types
Basic research
Applied research

8. Basic Research Attempts to expand the limits of knowledge
Not directly involved in the solution to a pragmatic problem

9. Basic Research Example
Do consumers experience cognitive dissonance in low-involvement situations?

10. Applied Research
Conducted when a decision must be made about a specific real-life problem

11. Applied Research Example
Should McDonalds add Italian pasta dinners to its menu?
Marketing research told McDonalds that it should not
Should Procter & Gamble add a high-priced home teeth bleaching kit to its product line?
Research showed Crest Whitestrips would sell well at a retail price of $44

12. Scientific Method
The analysis and interpretation of empirical evidence (facts from observation or experimentation) to confirm or disprove prior conceptions

13. Marketing Concept Central idea in marketing Evolved over time
Not production-oriented
Marketing-oriented

14. Marketing Concept Consumer Oriented Long Run Profitability
Cross-Functional
Effort

15. Keeping Customers and Building Relationships
RELATIONSHIP MARKETING - the idea that a major goal of marketing is to build long-term relationships with the parties who contribute to the company’s success.
Marketers want customers for life.
Managing the relationships that will bring about additional exchanges

16. Total Quality Management
Much in common with marketing concept
Focus on integrating customer-driven quality throughout the organization.
Stresses continuous improvement

17. Stages in Developing and Implementing a Marketing Strategy
Identifying and evaluating opportunities
Analyzing market segments and selecting target markets
Planning and implementing a marketing mix
Analyzing market performance

18. Identifying and Evaluating Opportunities
Examples:
Mattel Toys investigates desires for play experiences
Home cooking is on the decline. Purchase of precooked home replacement meals is on the rise.
Number of investors trading stock on the Internet is growing.

19. Analyze Market Segments and Select Target Markets
Examples
Cadillac investigates buyers’ demographic characteristics
MTV, monitoring demographic trends, learns the Hispanic audience is growing rapidly
Sears learns women, age with average household income of $38,000, are core customers. Targets this market with "The Good Life at a Great Price. Guaranteed. Sears."

20. Plan and Implement a Marketing Mix
Price: Safeway does a competitive pricing analysis
Distribution: Caterpillar Tractor Co. investigates dealer service program.
Product: Oreo conducts taste test, Oreo cookie vs. Chips Ahoy
Promotion: How many consumers recall the “Life Tastes Good. Coca Cola!” slogan?

21. Analyze Marketing Performance
This year’s market share is compared to last year’s.
Did brand image change after new advertising?

22. Performance-monitoring Research
Research that regularly provides feedback for evaluation and control
Indicates things are or are not going as planned
Research may be required to explain why something “went wrong”

23. Determining When to Conduct Marketing Research
Time constraints
Availability of data
Nature of the decision
Benefits versus costs

24. Determining When to Conduct Marketing Research
Time Constraints
Availability of Data
Nature of the Decision
Benefits vs. Costs
Is sufficient
time
available?
Information
already on
hand
inadequate?
Is the
decision of
strategic
or tactical
importance?
Does the
information
value
exceed the
research cost?
Conduct
Marketing
Research
Yes
Yes
Yes
Yes No No No No
Do Not Conduct Marketing Research

25. Potential Value of a Marketing Research Effort Should Exceed Its Estimated Costs
Research expenditures
Delay of marketing decision and possible disclosure of information to rivals
Possible erroneous research results
Decreased certainty
Increased likelihood of a correct decision
Improved marketing performance and resulting higher profits

26. Marketing Research in the 21st Century
Increased globalization
Growth of the Internet and other information technologies

27. Global Research Business Research is increasingly global
Market knowledge is essential
A.C. Nielsen - more that 67% international business

28. Global Marketing Research
General information about country - economic conditions and political climate
Cultural and consumer factors
Market and competitive conditions - demand estimation

29. The Internet is Transforming Society
Time is collapsing.
Distance is no longer an obstacle.
Crossing oceans is only a mouse click away.
People are connected 24 hours a day, seven days a week.
"Instantaneous" has a new meaning.

30. Internet Research Seeking facts and figures about an issue
Surveys on Web sites