MGT301 Principles of Marketing Lecture-12

Summary of Lecture-11

Marketing Information System (MIS)

The Marketing Information System Marketing managers Analysis Planning Implemen- tation Control Assessing information needs Distributing information Internal records Marketing decisions and communication Marketing environment Test markets Marketing channels Competitors Publics Macro- environment forces Marketing Information System Developing information Marketing intelligence Marketing research Marketing decision support analysis

Steps..  Assessing the Marketing Information Needs  Developing the Marketing Information  Analyzing Marketing Information  Distributing and using Marketing Information

Today’s Topics Marketing Research

Marketing research is the planning, collection, and analysis of data relevant to marketing decision and analysis of data relevant to marketing decision making and the communication of the results of this analysis to management.

 Marketing Research is part of the  Marketing Intelligence feedback  program  Marketing Research is the Primary  tool for exploring new Opportunities  in the Marketplace The Role of Marketing Research in Decision Making

 Marketing Research Plays Three Functional Roles: Descriptive  The gathering and presentation of statements of fact. Diagnostic  The explanation of data or actions. Predictive  Specification of how to best take advantage of opportunities as they arise in the ever-changing marketplace. The Importance of Marketing Research to Management

The Unrelenting Drive for Quality and Customer Satisfaction The Paramount Importance of Keeping Existing Customers The Need for Managers to Understand the Ever-Changing Marketplace Trends Influencing the Importance of Marketing Research

The Proactive Role of Marketing Research

Understanding the nature of the marketing system is necessary for a successful marketing orientation. By having a thorough knowledge of factors that have an impact on the target market and the marketing mix, management can be proactive rather than reactive.

 Measurement of market potential.  Analysis of market share.  Determination of market characteristics.  Sales analysis.  Product testing.  Forecasting.  Studies of business trends.  Studies of competitors' products. Uses & Application of Research in Marketing

Who Does “Custom” Marketing Research In-house research departments Custom research firms Consulting firms Marketing Research Suppliers Marketing Research Suppliers Advertising agencies Syndicated services Colleges and universities

Steps in the Marketing Research Process

1. Problem Definition and the Research Objectives 1. Problem Definition and the Research Objectives 2. Developing the Research Plan 3. Implementation 4. Interpretation and Reporting of Findings 4. Interpretation and Reporting of Findings

Problem/ Opportunity Identification & Formulation Problem/ Opportunity Identification & Formulation Creation of the Research Design Creation of the Research Design Choice of Method of Research Choice of Method of Research Selection of the Sampling Procedure Selection of the Sampling Procedure Collection of the Data Collection of the Data Analysis of the Data Analysis of the Data Writing and Presenting the Report Writing and Presenting the Report Follow-up

The research process begins with the recognition of a marketing problem or opportunity. Step 1: Problem Definition and the Research Objectives As changes occur in the firm’s external environment, marketing managers are faced with the questions, “Should we change the existing marketing mix?” and, “If so, how?”

The first responsibility of the researcher is to work with the marketing manager to clearly articulate the management decision problems whose symptoms have been observed and then to define precisely the marketing research problem. Role of the Marketing Researcher

Three Key Questions to Answer at the Problem/Opportunity Definition Stage

Why is the information being sought? Does the information already exist? Can the question really be answered?

Definition of Research Objectives These objectives are stated in terms of the precise information necessary to answer the marketing research problem/opportunity. Objectives must be as specific and unambiguous as possible. The entire research effort is geared toward achieving the objectives.

 The research design is the plan to be followed to answer the research objectives or hypotheses.  There is no single, best research design. Instead, the investigator faces an array of choices, each with certain advantages and disadvantages. Step-2 Developing the Research Plan

 Research objectives guide the determination of specific information needs.  Research proposals outline the type of data needed and the research plan.  Primary data:  Secondary data

Secondary/Primary Data Balance Primary Data  Accurate  Up-to-date  Purpose design Secondary Data  Available  Cheap  Quick

 Exploratory  Descriptive  Causal

Exploratory Research –Exploratory research is usually small-scale research undertaken to define the exact nature of the problem and to gain a better understanding of the environment within which the problem has occurred.

Descriptive Research –Implicit in descriptive research is the fact that management already knows or understands the underlying relationships of the problem area. –Descriptive studies are limited to answering who, what, when, where, and how questions. e.g. Market potential for a product

Causal Research –In causal studies the researcher investigates whether one variable causes or determines the value of another variable. A dependent variable is a variable expected to be predicted or explained. An independent variable is a variable in an experiment that the market research can, to some extent, manipulate, change, or alter.

 A research design, either descriptive or causal, is chosen according to a project’s objective.  The next step is to select a means of gathering data (or research methods). Choosing a Basic Method of Research

Survey –Research in which an interviewer interacts with respondents (except in mail surveys) to obtain facts, opinions, and attitudes. Observation –Descriptive research that monitors respondent’s actions without direct interaction. Basic Research Methods/ Approaches

Experiments –The objective of experiments is to measure causality. –An experiment is distinguished by the researchers changing one or more variables -- price, package, design while observing the effects of those changes on another variable (usually sales).

Enough for today...

Summary Steps in the Marketing Research Process

1. Problem Definition and the Research Objectives 1. Problem Definition and the Research Objectives 2. Developing the Research Plan 3. Implementation 4. Interpretation and Reporting of Findings 4. Interpretation and Reporting of Findings

Problem/ Opportunity Identification & Formulation Problem/ Opportunity Identification & Formulation Creation of the Research Design Creation of the Research Design Choice of Method of Research Choice of Method of Research Selection of the Sampling Procedure Selection of the Sampling Procedure Collection of the Data Collection of the Data Analysis of the Data Analysis of the Data Writing and Presenting the Report Writing and Presenting the Report Follow-up

Marketing Research (cont..) Marketing Research (cont..) Consumer Market-understanding the consumer Consumer Market-understanding the consumer Next….

MGT301 Principles of Marketing Lecture-12