1. Chapter One The Role of Marketing Research in Management
Decision Making
Chapter One
Copyright © 2002
South-Western College Publishing Co.

2. Learning Objectives
1. To review the marketing concept and the marketing mix.
2. To comprehend the marketing environment within which managers must make decisions.
3. To define marketing research.
4. To understand the importance of marketing research in shaping marketing decisions.
5. To learn when marketing research should and should not be conducted.

3. Learning Objectives
6. To understand the history of marketing research.
7. To examine career opportunities in marketing research.

4. (1) a consumer orientation (2) a goal orientation
To review the marketing concept and the marketing mix.
The Nature of Marketing
Marketing:
The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services.
The Role of Market Research in Decision Making
The Profound Impact
of the Internet
The Marketing Concept
(1) a consumer orientation
(2) a goal orientation
(3) a systems orientation
Deciding Whether to Conduct Market Research
The History and Future of Marketing Research

5. The External Marketing Environment
To comprehend the marketing environment.
The Nature of Marketing
Identifying Target Markets and Researching the Marketing Mix: The Opportunistic Nature of Marketing Research
The Role of Market Research in Decision Making
A marketing mix:
The unique blend of product/service, pricing, promotion, and distribution strategies designed to reach a specific target market.
The Profound Impact
of the Internet
Deciding Whether to Conduct Market Research
The External Marketing Environment
The History and Future of Marketing Research
Altering the marketing mix because of changes.

6. Marketing Research Defined
To define marketing research.
The Nature of Marketing
Marketing Research Defined
The planning, collection, and analysis of data relevant to market decision making and communication of the results of this analysis to management.
The Role of Market Research in Decision Making
The Profound Impact
of the Internet
The Importance of Marketing Research to Management
Deciding Whether to Conduct Market Research
descriptive function
diagnostic function
predictive function
The History and Future of Marketing Research

7. The Unrelenting drive for Quality and Customer Satisfaction
To understand the importance of marketing research.
The Nature of Marketing
The Unrelenting drive for Quality and Customer Satisfaction
The Role of Market Research in Decision Making
The Paramount Importance of Keeping Existing Customers
The Profound Impact
of the Internet
Managers Must Understand the Ever-Changing Marketplace
Deciding Whether to Conduct Market Research
The History and Future of Marketing Research

8. The Proactive Role of Marketing Research
To understand the importance of marketing research.
The Nature of Marketing
The Proactive Role of Marketing Research
The Role of Market Research in Decision Making
A proactive management:
alters the marketing mix to fit newly emerging patterns in economic, social, and competitive environments
new opportunities
develops a long-run marketing strategy
The Profound Impact
of the Internet
Deciding Whether to Conduct Market Research
The History and Future of Marketing Research

9. Applied Research versus Basic Research
To understand the importance of marketing research.
The Nature of Marketing
Applied Research versus Basic Research
The Role of Market Research in Decision Making
Applied research
To better understand the market.
Basic research
To expand the frontiers of knowledge.
The Profound Impact
of the Internet
Deciding Whether to Conduct Market Research
The History and Future of Marketing Research

10. Programmatic research To better understand the market.
To understand the importance of marketing research.
The Nature of Marketing
The Nature of the Applied Research Depends on the Type of Research Conducted
The Role of Market Research in Decision Making
Programmatic research
To better understand the market.
Selective research
To expand the frontiers of knowledge.
Evaluative research
To assess program performance
The Profound Impact
of the Internet
Deciding Whether to Conduct Market Research
The History and Future of Marketing Research

11. Advantages of Internet Surveys
To understand the importance of marketing research.
The Nature of Marketing
Advantages of Internet Surveys
Rapid Development, Real Time Reporting
Dramatically Reduced Costs
Readily Personalized
Ease and Convenience Encourage Respondent Participation
Contact the Hard-to-Reach
The Role of Market Research in Decision Making
The Profound Impact
of the Internet
Deciding Whether to Conduct Market Research
The History and Future of Marketing Research

12. Other Uses of the Internet by Marketing Researchers
To understand the importance of marketing research.
The Nature of Marketing
Other Uses of the Internet by Marketing Researchers
The Role of Market Research in Decision Making
Replacement of libraries and printed materials
Distribution of requests for proposals and proposals
Collaboration between the client and the research supplier
Data management and on-line analysis
Oral presentations of marketing surveys
The Profound Impact
of the Internet
Deciding Whether to Conduct Market Research
The History and Future of Marketing Research

13. In a number of situations it is best not to conduct market research.
To learn when marketing research should and should not be conducted.
The Nature of Marketing
In a number of situations it is best not to conduct market research.
The Role of Market Research in Decision Making
A Lack of Resources
lack of funds
insufficient funds to implement decisions from research
Research Results Would Not Be Useful
Clients may be hard-pressed to use the information
The Profound Impact
of the Internet
Deciding Whether to Conduct Market Research
The History and Future of Marketing Research

14. Poor Timing in the Marketplace
To learn when marketing research should and should not be conducted.
The Nature of Marketing
Poor Timing in the Marketplace
Marketing research should not be undertaken if the opportunity for successful entry into a market has passed.
The Decision Has Already Been Made
Marketing research may be used improperly.
The Role of Market Research in Decision Making
The Profound Impact
of the Internet
Deciding Whether to Conduct Market Research
The History and Future of Marketing Research

15. The wrong phenomena might be studied
To learn when marketing research should and should not be conducted.
The Nature of Marketing
When Managers Cannot Agree on What They Need to Know to Make a Decision
The wrong phenomena might be studied
When Decision-Making Already Exists
Further research may be redundant and costly
When the Costs of Conducting Research Outweigh the Benefits
Potential new products with large profit margins may have a greater potential
The Role of Market Research in Decision Making
The Profound Impact
of the Internet
Deciding Whether to Conduct Market Research
The History and Future of Marketing Research

16. The Development of Market Research The Inception -- Pre-1900
To understand the history of marketing research.
The Nature of Marketing
The Development of Market Research
The Inception -- Pre-1900
Early Growth
The Adolescent Years
The Maturing of Marketing Research to Present
The Role of Market Research in Decision Making
The Profound Impact
of the Internet
Deciding Whether to Conduct Market Research
The History and Future of Marketing Research

17. The Decision Whether to Conduct Market Research
Market Size
Small Profit Margin
Large Profit Margin
Table 1.2
Cost likely to be greater than benefit;
e.g., eyeglasses replacement screw
Possible benefits greater than cost;
e.g., ultra expensive sportswear
Small
Large
Benefits likely to be greater than costs;
e.g., Stouffers frozen entries
Benefits likely to be greater than costs;
e.g.,medical equipment

18. The End
Copyright © 2002 South-Western College Publishing Co.