Yale Consultancy Sdn Bhd Introduction to Marketing Research Yale Consultancy Sdn Bhd info@yaleconsultant.com 03-2021 0577 Yale Consultancy Sdn Bhd

“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 Yale Consultancy Sdn Bhd

What is Marketing? Marketing has been defined by the AMA as an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

What is the Marketing Concept? The Marketing Concept is a business philosophy that holds that the key to achieving organizational goals consists of the company’s being more effective than competitors in creating, delivering, and communicating customer value to its chosen markets.

What is Marketing Strategy? A Marketing Strategy consists of selecting a segment of the market as the company’s target market and designing the proper “mix” of the product/service, price, promotion, and distribution system to meet the wants and needs of the consumers within the target market.

Marketing Research Defined The systematic and objective process of generating information for aid in making marketing decisions Yale Consultancy Sdn Bhd

What is Marketing Research? (Burns and Bush Definition) Marketing research is the process of designing, gathering, analyzing, and reporting information that may be used to solve a specific marketing problem. Ch 1

What is Marketing Research? AMA definition Marketing research: the function that links the consumer, customer, and public to the marketer through information – information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve the understanding of marketing as a process. Ch 1

Market Research vs. Marketing Research Market research: the “systematic gathering, recording, and analyzing of data with respect to a particular market, where ‘market’ refers to a specific group in a specific geographic area.” Ch 1

Yale Consultancy Sdn Bhd Case Study Yale Consultancy Sdn Bhd

Learning by Doing: Let’s Apply Marketing to a Restaurant Target market segment? Marketing strategy Location? Menu? Prices? Type? Advertising? Ch 1

Restaurant Marketing Decisions What if you owned a restaurant located in Austin, Texas near the University of Texas? What would be your marketing strategy? How certain are you that you made the right decisions? Ch 1

Restaurant Marketing Decisions What if the restaurant was located near a university in a foreign country like China, Thailand, Italy, Iceland, or Peru? What would be your decisions? How certain are you that you made the right decisions now? So, what’s going on? Class comments? Ch 1

Key Point To practice marketing; to implement the marketing concepts; to implement marketing strategy, managers must make decisions. Many decisions require additional information and marketing research is needed in order to supply that information. Ch 1

We need Marketing Research to: Make the “right” decisions to Implement marketing Practice the marketing concept and Make the right decisions to select the right marketing strategy Ch 1

The Marketing Research Process Define the Problem Develop an Approach to the Problem Type of Study? Exploratory, Descriptive, Causal? Mgmt & Research Questions, Hypotheses Formulate a Research Design Methodology Questionnaire Design Fieldwork Prepare & Analyze the Data Prepare & Present the Report Yale Consultancy Sdn Bhd

What is the purpose of Marketing Research? To link the consumer to the marketer by providing information that can be used in making marketing decisions Ch 1

What are the uses of Marketing Research? Identify marketing opportunities and problems Generate, refine, and evaluate potential marketing actions Monitor marketing performance Improve marketing as a process Ch 1

Marketing Research Types Basic research Applied research Yale Consultancy Sdn Bhd

Basic Research Attempts to expand the limits of knowledge Not directly involved in the solution to a pragmatic problem Yale Consultancy Sdn Bhd

Basic Research Example Do consumers experience cognitive dissonance in low-involvement situations? Yale Consultancy Sdn Bhd

Applied Research Conducted when a decision must be made about a specific real-life problem Yale Consultancy Sdn Bhd

Applied Research Example Should McDonalds add Italian pasta dinners to its menu? Marketing research told McDonald’s 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 Yale Consultancy Sdn Bhd

Scientific Method The analysis and interpretation of empirical evidence (facts from observation or experimentation) to confirm or disprove prior conceptions Yale Consultancy Sdn Bhd

Using Marketing Research We can use Marketing Research to: Identify & Evaluate Opportunities Analyze Market Segments Select Target Markets Plan & Implement Marketing Mixes Analyze Marketing Performance Performance Monitoring Research Yale Consultancy Sdn Bhd

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. Yale Consultancy Sdn Bhd

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 25-54 with average household income of $38,000, are core customers. Targets this market with "The Good Life at a Great Price. Guaranteed. Sears." Yale Consultancy Sdn Bhd

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? Yale Consultancy Sdn Bhd

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

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” Yale Consultancy Sdn Bhd

Determining When to Conduct Marketing Research Time constraints Availability of data Nature of the decision Benefits versus costs Yale Consultancy Sdn Bhd

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 Yale Consultancy Sdn Bhd

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 uncertainty Increased likelihood of correct decision Improved marketing performance and resulting higher profits Costs Value Yale Consultancy Sdn Bhd

IT IS NOT A REPLACEMENT FOR MANAGERIAL JUDGEMENT!! ALWAYS Remember Marketing Research is a tool. It assists marketing managers in their decision making. IT IS NOT A REPLACEMENT FOR MANAGERIAL JUDGEMENT!! Yale Consultancy Sdn Bhd

Hot Topics in Marketing Research Online Marketing Research Growing Consumer/Respondent Resentment Globalization Ch 1

Hot Topics – Online Marketing Research Online research: the use of computer networks, including the Internet, to assist in any phase of the marketing research process including development of the problem, research design, data gathering, analysis, and report writing and distribution. Ch 1

Hot Topics – Online Marketing Research Web-based research: research that is conducted on web applications; may use traditional methods as well as on-line research methods in conducting research on web-based applications… Usability studies On-line survey research: collection of data using computer networks… Ordering samples online via Survey Sampling, Inc. Ch 1

Hot Topics – Online Marketing Research On-line survey research: collection of data using computer networks… Ordering samples online via Survey Sampling, Inc. Ch 1

Hot Topics – Growing Consumer/ Respondent Resentment Marketing research is invasive. Telemarketers and direct marketers have abused “marketing research.” The government through FTC has instituted a “Do not call” list. The marketing research industry is so far excluded from the ban of the “do not call” regulations. Ch 1

Hot Topics – Globalization As marketing firms spread globally, so did marketing research firms. According to Jack Honomichl, 48% of U.S. marketing research firms’ revenues were generated outside of U.S. The top 25 marketing research firms in the world earn 67% of their revenues outside their own country. Ch 1

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