MARKETING RESEARCH

Marketing Research
What is marketing? What is the marketing concept? What is marketing strategy?

What is Marketing?
Marketing has been defined 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.
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Let s Apply Marketing to

a Restaurant
Target market segment? Marketing strategy
Location? Menu? Prices? Type? Advertising?
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Restaurant Marketing Decisions

What if you owned a restaurant located in Clifton near SZABIST? What would be your marketing strategy? How certain are you that you made the right decisions?

Restaurant Marketing Decisions

What if the restaurant was located near a University in a foreign country like UK, Thailand, USA? What would be your decisions? How certain are you that you made the right decisions now?

Key Points
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.

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

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Marketing Research
The systematic and objective process of generating information for aid in making marketing decisions

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The Marketing Research Process

Step One: Step Two: Step Three: Step Four: Step Five: Step Six: Establishing the Need for Marketing Research Defining the Problem Establishing Research Objectives Determining Research Design Identifying Information Types and Sources Determining Methods of Accessing Data
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The Marketing Research Process

Step Seven: Step Eight: Step Nine: Step Ten: Step Eleven: Designing Data Collection Forms Determining Sample Plan and Size Collecting Data Analyzing Data Preparing and Presenting the Final Report

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The Marketing Research Process

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Steps in the Marketing Research Process

Steps 1 Establish Need 2 Define Problem 3 Research Objectives

Figure out what to research

4 Determine Design 5 Identify Information Sources 6 Decide Data Collection Method 7 Design Questionnaire 8 Determine Sample Plan & Size 9 Collect Data

Design the way to do the research

Gather data from respondents Generate findings and interpret them

10 Analyze Data 11 Write and Present Report

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Step 1: Establish the Need for Marketing Research

Is there a real need for marketing research? Research takes time and costs money. Marketing research is not always needed.

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Step 1: Establish the Need for Marketing Research

When is marketing research not needed?
The information is already available. Decisions must be made now. We can t afford research. Costs outweigh the value of marketing research.

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Step 2: Define the Problem

This is the most important of the 11 steps. If the problem is incorrectly defined, all else is wasted effort. Problems may be either specific or general.
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Step 2: Define the Problem

Problems stem from gaps between what is supposed to happen and what did happen and gaps between what did happen and what could have happened.

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Step 3: Establish Objectives

Research objectives, when achieved, provide the information necessary to solve the problem identified in step 2. Research objectives state what the researchers must do.

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Step 4: Determine Research Design

Exploratory Research: collecting information in an unstructured and informal manner. Descriptive Research: refers to a set of methods and procedures describing marketing variables.

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Step 5: Identify Information Types and Sources

Primary information: information collected specifically for the problem at hand Secondary information: information already collected

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Step 6: Determine Methods of Accessing Data Secondary data is relatively easy to access; primary data is more complex.

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Step 7: Design Data Collection Forms

Questionnaire must be worded objectively, clearly, and without bias in order to communicate with respondents. Software programs are available to assist marketing researchers in preparing forms.
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Step 8: Determine Sample Plan and Size

Sample plan refers to the process used to select units from the population to be included in the sample. Sample size refers to determining how many elements of the population should be included in the sample.

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Step 9: Collect Data

Data collection is very important because, regardless of the data analysis methods used, data analysis cannot fix bad data. Non-sampling errors may occur during data collection.

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Step 9: Collect Data

Data collection errors may be attributed to field workers or respondents. Researchers must know the sources of these errors and the controls to minimize them.

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Step 10: Analyze Data

Data analysis involves entering data into computer files, inspecting data for errors, and running tabulations and various statistical tests. Data cleaning is a process by which raw data are checked to verify that the data have been correctly inputted from the data collection form to the computer software program.
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Step 11: Prepare and Present the Final Research Report

The last step is one of the most important phases of marketing research. Its importance cannot be overstated because it is the report, or its presentation, that properly communicates the results to the client.
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Role of Marketing Research

Quantitative vs. qualitative Applied vs. basic research Can be inaccurate Time and budget constrains
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Role of MR in Decision Making

Provides info Factors influencing MR
Time Data availability Nature of decision Cost-benefit Lack of resources
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Marketing Research Types

Basic research Applied research

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

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Applied Research
Conducted when a decision must be made about a specific real-life problem

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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

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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
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Identifying and Evaluating Opportunities

Examples: 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.

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Analyze Market Segments and Select Target Markets

Examples Cadillac investigates buyers demographic characteristics MTV, monitoring demographic trends, learns the Hispanic audience is growing rapidly.

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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?

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Analyze Marketing Performance

This year s market share is compared to last year s. Did brand image change after new advertising?

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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
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Determining When to Conduct Marketing Research

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

Time Constraints Availability of Data Nature of the Decision Benefits vs. Costs

Is sufficient time available?

Yes

Information already on hand inadequate?

Yes

Is the decision of strategic or tactical importance?

No

Yes

Does the information Yes value exceed the research cost?

No

Conduct Marketing Research

No

No

Do Not Conduct Marketing Research

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Potential Value of a Marketing Research Effort Should Exceed Its Estimated Costs
Decreased uncertainty Increased likelihood of correct decision Improved marketing performance and resulting higher profits Research expenditures Delay of marketing decision and possible disclosure of information to rivals Possible erroneous research results

Value

Costs
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ALWAYS Remember
Marketing Research is a tool. It assists marketing managers in their decision making.

IT IS NOT A REPLACEMENT FOR MANAGERIAL JUDGEMENT!!

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