Role of Marketing Research in Strategic Planning and Decision Making

The Nature and Scope of Marketing Research

Identifying Market Opportunities and Constraints

Who are our potential competitors and how strong are their market positions? How satisfied are consumers with current offerings on the market ? Are there any unmet consumer needs? How is our offering likely to be perceived by consumers relative to competitors offerings ? Marketing research can help answer these and other questions of interest to marketers

Identifying Marketing Opportunities and Constraints (Contd)

Identify
Potential customers strengths and weaknesses Consumer satisfaction with current market offerings Consumer perceptions of the offer relative to competitors

Goal
Maintain competitiveness

Role of Marketing Research in the Organization/Business

Marketing Research Definition

A set of techniques and principles for systematically collecting, recording, analyzing, and interpreting data that can aid decision makers who are involved with marketing goods, services or ideas

Principles of Marketing Research

Principle #1
Attend to the timeliness and relevance of research

Principle # 1: Attend to the Timeliness and Relevance of Research

Ford and GM developed extremely successful SUVs Recent concerns over fuel prices have changed consumers perceptions and purchase intentions of SUVs Volvo, Porsche and Volkswagen entered the SUV market in 2004 after significant investment in R&D conducted prior to the recent shift in consumers opinions

Principle #2
Define research objectives carefully and clearly

Principle #3
Do not conduct research to support decisions already made

Principle # 2: Define Research Objectives Carefully and Clearly

Microsoft e-Home devices
Marketing research demonstrated consumers acceptance of this concept Implementation was stalled because associated Internet-enabled technologies were not yet available or just entering the market

Principle # 3: Do Not Conduct Research to Support Decisions Already Made

Sony Mini-disc Players
Successful product in Japan Launched in the US and failed miserably due to popularity of competing technologies (i.e., Apple iPod)

The Role of Marketing Research in Analysis and Interpretation

Marketing Research can be used to identify profitable customers and not-profitable customers
Profitable Customers: those who are more likely to spend large amounts of money and become repeat customers Not-Profitable Customers: those who are more likely to spend less money on each transaction and might not return

Marketing Researchs Relationship to Decision Making Activity

Marketing Research Applications

Gathering data from markets Conducting customer surveys Determining the needs of your customers Evaluating customer response to advertising

Marketing Research Applications (Contd)

Gathering sales and market share data on your competitors Testing your products in the marketplace Estimating potential product sales