1-1 vddf1 Chapter One Introduction to Marketing Research

1-2 Chapter Outline 1) Overview 2) Definition of Marketing Research 3) A Classification of Marketing Research 4) Marketing Research Process 5) The Nature of Marketing Research 6) Marketing Research Suppliers and Services 7) Selecting a Research Supplier 8) Careers in Marketing Research

1-3 Chapter Outline 9)The Role of Marketing Research in MIS and DSS 10)The Department Store Project 11)Marketing Research Associations Online 12)Summary

1-4 What is Marketing Chartered Institute of Marketing Philip Kotler The Management Process responsible for identifying, anticipating and satisfying customer requirements profitably Satisfying needs and wants through an exchange process Learn marketing.net Marketing is not about providing products and services it is essentially about providing changing benefits to the changing needs and demands of the customer The common theme is meeting needs and providing benefits

1-5 Marketing is the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return. Marketing is all about – Managing customers profitably. Goals: 1) to attract new customers but promising superior value 2) To keep & grow current customers by delivering satisfaction What is Marketing

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1-14 Defining Research Re search Looking for somethingAgain

1-15 Redefining Marketing Research The American Marketing Association (AMA) redefined Marketing Research as: The function which links the consumer, the customer, and public to the marketer through INFORMATION

1-16 Used to identify and define market opportunities and problems Generate, refine, and evaluate marketing performance Monitor marketing performance Improve understanding of marketing as a process Redefining Marketing Research

1-17 Definition of Marketing Research 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.

1-18 Market Research Specifies the information necessary to address these issues Manages and implements the data collection process Analyzes the results Communicates the findings and their implications

1-19 Market Research

1-20 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. Examples: market potential, market share, image, market characteristics, sales analysis, forecasting, and trends research. Problem Solving Research Research undertaken to help solve specific marketing problems. Examples: segmentation, product, pricing, promotion, and distribution research.

1-21 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 Promotion Research Distribution Research Fig 1.1

1-22 Problem Solving Research  Determine the basis of segmentation  Establish market potential and responsiveness for various segments  Select target markets  Create lifestyle profiles: demography, media, and product image characteristics SEGMENTATION RESEARCH  Test concept  Determine optimal product design  Package tests  Product modification  Brand positioning and repositioning  Test marketing  Control score tests PRODUCT RESEARCH Table 1.1

1-23 Problem Solving Research Table 1.1 cont. PRICING RESEARCH  Pricing policies  Importance of price in brand selection  Product line pricing  Price elasticity of demand  Initiating and responding to price changes $ALE PROMOTIONAL RESEARCH  Optimal promotional budget  Sales promotion relationship  Optimal promotional mix  Copy decisions  Media decisions  Creative advertising testing  Evaluation of advertising effectiveness  Claim substantiation 0.00% APR

1-24 Problem Solving Research Table 1.1 cont. DISTRIBUTION RESEARCH Determine…  Types of distribution  Attitudes of channel members  Intensity of wholesale & resale coverage  Channel margins  Location of retail and wholesale outlets

1-25 Marketing Research Process Step 1: Problem Definition Step 2: Development of an Approach to the Problem Step 3: Research Design Formulation Step 4: Fieldwork or Data Collection Step 5: Data Preparation and Analysis Step 6: Report Preparation and Presentation

1-26 Step 1: Problem Definition Purpose of the study Relevant background information The information needed and how it will be used in decision making Involves- 1. Discussion with decision makers 2. Interviews with industry experts 3. Analysis of secondary data 4. Some qualitative research

1-27 Step 2: Development of an Approach to the Problem Formulating an objective or theoretical framework Analytical models Research questions Hypotheses Identifying the information needed

1-28 Step 3: Research Design Formulation Framework or Blueprint for conducting marketing research Involves the following steps- 1. Definition of the information needed 2. Secondary data analysis 3. Qualitative research 4. Methods of colleting quantitative data 5. Measurements and scaling procedures 6. Questionnaire design 7. Sampling process and sample size 8. Plan of data analysis

1-29 Step 4: Fieldwork or Data Collection Involves a field force or staff that operates either in the field or electronically Proper selection, training, supervision and evaluation of the field force helps minimize data- collection errors

1-30 Step 5: Data Preparation and Analysis Editing Each questionnaire or observation form is inspected or edited Codes Number or letter codes are assigned to represent each response to each question Transcription Data from the questionnaires are transcribed or keypunched onto magnetic tape or disks or input directly into computer Verification Data are analyzed to derive information related to the components of MR

1-31 Step 6: Report Preparation and Presentation Entire project should be documented in written report that addresses - The specific research questions - Describes the approach - Research design - Data collection and data analysis procedure - Results and findings  Oral presentation should be made to management using tables, figures and graphs to enhance clarity and impact

1-32 The Role of Marketing Research Controllable Marketing Product Pricing Promotion Distribution Variables Marketing Research Marketing Decision Making Providing Information Assessing Information Needs Marketing Managers Market Segmentation Performance & Control Target Market Selection Marketing Programs Uncontrollable Environmental Factors Economy Technology Laws & Regulations Social & Cultural Factors Political Factors Customer Groups Employees Shareholders Suppliers Consumers Fig 1.2

1-33 Marketing Research Suppliers & Services LIMITED SERVICE Branded Products and Services Technical & Analytical Services Focus group & Qualitative Services Field Services FULL SERVICE Syndicate Services Customized Services Internet Services RESEARCH SUPPLIERS EXTERNAL INTERNAL Fig 1.3

1-34 Marketing Research Suppliers & Services Internal suppliers External suppliers Full-service suppliers Syndicated services Customized services Internet services Limited-service suppliers Field services Focus groups and Qualitative Services Technical and Analytical services Branded marketing research products

1-35 Criteria for Selecting a Research Supplier  What is the reputation of the supplier?  Do they complete projects on schedule?  Are they known for maintaining ethical standards?  Are they flexible?  Are their research projects of high quality?  What kind and how much experience does the supplier have? Has the firm had experience with projects similar to this one?  Do the supplier's personnel have both technical and non-technical expertise?  Can they communicate well with the client? Competitive bids should be obtained and compared on the basis of quality as well as price.