1 Marketing Research Aaker, Kumar, Day Ninth Edition Instructor’s Presentation Slides

Marketing Research 9 th Edition Aaker, Kumar, Day 2 Chapter One A Decision Making Perspective on Marketing Intelligence

Marketing Research 9 th Edition Aaker, Kumar, Day 3 Market Research

Marketing Research 9 th Edition Aaker, Kumar, Day 4 Business Intelligence BI is the ability to access data from multiple sources within an organization and deliver it to business users for analysis It links the disparate operational systems to the end users of the data, thus creating an environment with free flow of information It offers a reliable barometer of the business performance It helps to analyze what is behind trends and anomalies in the business

Marketing Research 9 th Edition Aaker, Kumar, Day 5 Business Intelligence Provide data on Business Intelligence Financial Intelligence Marketing Intelligence Accounting Intelligence Marketing Research Management Intelligence ProspectsCustomersCompetitionProducts/Markets Primary SourcesSecondary SourcesStandardized Sources Customer Relationship Marketing/ Database Marketing

Marketing Research 9 th Edition Aaker, Kumar, Day 6 What is Marketing Intelligence? Market intelligence (MI) is, “the process of acquiring and analyzing information in order to understand the market (both existing and potential customers); to determine the current and future needs and preferences, attitudes and behavior of the market; and to assess changes in the business environment that may affect the size and nature of the market in future.” - Cornish S. L

Marketing Research 9 th Edition Aaker, Kumar, Day 7 Need for Marketing Intelligence Producers have little direct contact with consumers (geographical distance and channel layers). Channel has little knowledge about customer attitudes, preferences and changing tastes. Need to understand competition, without spying on them. Management goals involve sales targets and market share achievement. Need to identify successful new product developments early in the process to ensure growth and revenue maximization by finding a balance between costs and prices of products.

Marketing Research 9 th Edition Aaker, Kumar, Day 8 Domains of Marketing Intelligence Product Decisions Customer Segmentation decisions Brand and Pricing decisions Keeping stakeholders happy Market estimation, competitive bench- Marking & distribution

Marketing Research 9 th Edition Aaker, Kumar, Day 9 Marketing Research Marketing Research, a critical part of Marketing Intelligence helps by providing accurate, relevant and timely (ART) information Links consumer, customer, and public to the marketer through information used to: Identify and define marketing opportunity and problems Generate, redefine and evaluate marketing actions Monitor marketing performance Improve understanding of marketing as a process (from AMA’s official definition of Marketing Research)

Marketing Research 9 th Edition Aaker, Kumar, Day 10 Role of Marketing Research in Managerial Decision Making Four Stages of Market Planning Process Situation analysis Strategy development Marketing program development Implementation

Marketing Research 9 th Edition Aaker, Kumar, Day 11 Performance monitoring Refining strategies and program Define the business scope and served market segments Establish competitive advantages Set performance objectives Situation Analysis Strategy Development Marketing Program Development Implementation Understand the environment and the market Identify threats and opportunities Assess the competitive position Product and channel decision Communication decisions Pricing Personal selling decisions Marketing Planning Process

Marketing Research 9 th Edition Aaker, Kumar, Day 12 Situation Analysis Analysis of Market environment Market characteristics Consumer behavior Research Approaches Organize information obtained from prior studies (secondary) Focus groups

Marketing Research 9 th Edition Aaker, Kumar, Day 13 Strategy Development Market Research Provides Information to Assist Management With Three Critical Decisions: What business should we be in? How will we compete? What are the objectives for the business?

Marketing Research 9 th Edition Aaker, Kumar, Day 14 Marketing Program Development Programs embrace specific tasks Action program usually focuses on a single objective in support of one element of overall business strategy

Marketing Research 9 th Edition Aaker, Kumar, Day 15 Marketing Program Development (cont.) Representative Decisions that Draw on Marketing Research: Segmentation decisions Product decisions Distribution decisions Advertising and promotion decisions Personal selling decisions Price decisions Branding decisions Customer satisfaction decisions

Marketing Research 9 th Edition Aaker, Kumar, Day 16 Implementation Starts with decision to proceed with a new program or strategy Set specific measurable objectives for all elements of marketing program Shift research focus to : "Did the elements achieve their objectives?" “Should the marketing program be continued, discontinued, revised or expanded?"

Marketing Research 9 th Edition Aaker, Kumar, Day 17 Factors Influencing Marketing Research Decisions Relevance Type and Nature of Information Sought Timing Availability of Resources Cost-benefit Analysis

Marketing Research 9 th Edition Aaker, Kumar, Day 18 Ethics in Marketing Research Ethics of the Sponsor Overt and covert purposes Dishonesty in dealing with suppliers Misuse of research information Ethics of the Supplier Violating client confidentiality Improper execution of research Abuse of Respondents Falsifying answers

Marketing Research 9 th Edition Aaker, Kumar, Day 19 Conquering Latino Homes Hispanics account for nearly 12.5% of the U.S. population. Research shows that Latino households contribute $600 billion of $1.3 trillion purchasing power of multicultural population. In 2003 only 5.1% of total advertising dollars in the United States was focused on Latinos. By 2050, Hispanic population would represent 25% of US population. What do you think the problem is?

Marketing Research 9 th Edition Aaker, Kumar, Day 20 P & G has came out with “Rejuvenating Effects” a gender specific toothpaste targeting the female customers, who do 82% of the grocery shopping. The flavor and package of the product was decided on the basis of the results from a customer survey filled out by women. Though the product is priced slightly higher than the other brands P & G hopes to make women think about the toothpaste in the same light as skin care lotions and shampoo. P & G Luring Women with their Feminine Toothpaste

Marketing Research 9 th Edition Aaker, Kumar, Day 21 Harley Davidson Exploring New Markets Problem: Flat domestic scales Solution: In 1999, Harley-Davidson started a rental program which provided a way to hook customers on riding and thereby entice them into buying a motorcycle. 40 percent of those enrolled in the program were female and about 30 percent were under the age of 35 Result: Motorcycles rented went up from 401 days in 1999 to a total of 224,134 days worldwide in percent of rental customers surveyed bought a bike or placed an order after renting, another 37 percent were planning to buy one within a year. Nearly half of the renters spent more than $100 on Harley-Davidson accessories, such as T-shirts and gloves.