Chapter One The Role of

Marketing Research
in Management
Decision Making

Copyright © 2004
John Wiley & Sons, Inc.
 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.
 Learning Objectives
Nature of Marketing
To review the marketing concept and
the marketing mix.

Marketing:
The process of planning and executing the conception,
pricing, promotion, and distribution of ideas, goods, and
services.

The Marketing Concept

(1) a consumer orientation

(2) a goal orientation

(3) a systems orientation

 Learning Objectives
Nature of Marketing
To comprehend the marketing
environment.

The External Marketing Environment

Marketing research is the key to understanding the
environment
• provides information for altering marketing mix
• identifies new opportunities
 Learning Objectives
Market Research and
Decision Making To define marketing research.

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 Importance of Marketing Research to Management

• descriptive function
• diagnostic function
• predictive function
 Learning Objectives
Market Research and
Decision Making To understand the importance of
marketing research.

The Proactive Role of Marketing Research

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
 Learning Objectives
Market Research and
Decision Making To understand the importance of
marketing research.

Applied Research versus Basic Research

Applied research
To better understand the market.

Basic research
To expand the frontiers of knowledge.
 Learning Objectives
Deciding Whether to Conduct
Market Research To learn when marketing research
should and should not be conducted.

In a number of situations it is best not to conduct market

research.
• 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
 Learning Objectives
Deciding Whether to Conduct
Market Research To learn when marketing research
should and should not be conducted.

Opportunity Has Passed

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.
 Learning Objectives
Deciding Whether to Conduct
Market Research To learn when marketing research
should and should not be conducted.

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 Decision Whether to Conduct Market Research
Table 1.1

Market Size Small Profit Margin Large Profit Margin

Small Cost likely to be Possible benefits

greater than benefit; greater than cost;
e.g., eyeglasses e.g., ultra expensive
replacement screw sportswear

Large Benefits likely to be Benefits likely to be

greater than costs; greater than costs;
e.g., Stouffers frozen entries e.g.,medical equipment
 Learning Objectives
Profound Impact of the Internet To understand the importance of
marketing research.

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

 Learning Objectives
Profound Impact of the Internet To understand the importance of
marketing research.

Other Uses of the Internet by Marketing Researchers

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

SUMMARY

• Marketing Concept
• External Marketing Environment
• Marketing Research Defined
• Proactive Role of Marketing Research
• Applied Research vs Basic Research
• When Not To Conduct Research
• Advantages of Internet Surveys
 The End

Copyright © 2004, John Wiley & Sons, Inc.