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5th edition Alvin C. Burns Ronald F. Bush

Introduction to Marketing Research

Because Marketing Research is part of Marketing we should understand:

What is marketing? What is the marketing concept? What is marketing strategy?

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What is Marketing?
Marketing has been defined by the AMA 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.
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What is the Marketing Concept?

The Marketing Concept is a business philosophy that holds that the key to achieving organizational goals consists of the companys being more effective than competitors in creating, delivering, and communicating customer value to its chosen markets.

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What is Marketing Strategy?

A Marketing Strategy consists of selecting a segment of the market as the companys 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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Learning by Doing: Lets 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 Austin, Texas near the University of Texas? What would be your marketing strategy? How certain are you that you made the right decisions?

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Restaurant Marketing Decisions

What if the restaurant was located near a university in a foreign country like China, Thailand, Italy, Iceland, or Peru? What would be your decisions? How certain are you that you made the right decisions now? So, whats going on? Class comments?
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Key Point
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.
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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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What is Marketing Research? (Burns and Bush Definition)

Marketing research is the process of designing, gathering, analyzing, and reporting information that may be used to solve a specific marketing problem.

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What is Marketing Research? AMA definition

Marketing research: the function that links the consumer, customer, and public to the marketer through information information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve the understanding of marketing as a Ch 1 process. 13

Market Research vs. Marketing Research

Market research: the systematic gathering, recording, and analyzing of data with respect to a particular market, where market refers to a specific group in a specific geographic area.

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What is the purpose of Marketing Research?

To link the consumer to the marketer by providing information that can be used in making marketing decisions

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What are the uses of Marketing Research?

Identify marketing opportunities and problems Generate, refine, and evaluate potential marketing actions Monitor marketing performance Improve marketing as a process
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Classifying Marketing Research Studies

Identifying marketing opportunities and problems Market-demand determination Market segments identification Marketing audits SWOT analysis

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Classifying Marketing Research Studies

Generating, refining, and evaluating potential marketing actions Proposed marketing-mix evaluation testing New-product prototype testing Advertising pretestingsee Insight Express AdInsight ad pretesting
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Classifying Marketing Research Studies

Monitoring marketing performance Image analysisbank image analysis Tracking studies...sales, market shares of all brands in our category Customer satisfaction studies

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Classifying Marketing Research Studies

Improving marketing as a process The purpose of these studies is to expand knowledge (basic research) of marketing as a process rather than to solve a specific problem facing a companyHow does background music
affect perceptions of productsHow preshopping information affects product returnsUnderstanding cultural differences in consumer impatienceall in Journal of Marketing.

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The Marketing Information System

An MIS is a structure consisting of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers.

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Components of an MIS
Internal Reports System Accounting information systemdata from income statement, etc. Marketing Intelligence System... Information coming from outside the firm Marketing Decision Support System (DSS)database with analytical tools Marketing Research System

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The Marketing Research System has a role in MIS because

It gathers information not gathered by the other MIS component subsystems. Marketing research studies are conducted for a specific situation facing the company. People Magazine study which of three different cover stories should we use? Marketing research projects unlike other MIS components are not continuous they have a beginning and an end. Ad Ch 1 23 hoc studies/Projects

Hot Topics in Marketing Research

Online Marketing Research Growing Consumer/Respondent Resentment Globalization

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Hot Topics Online Marketing Research

Online research: the use of computer networks, including the Internet, to assist in any phase of the marketing research process including development of the problem, research design, data gathering, analysis, and report writing and distribution.

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Hot Topics Online Marketing Research

Web-based research: research that is conducted on web applications; may use traditional methods as well as on-line research methods in conducting research on web-based applications Usability studies On-line survey research: collection of data using computer networks Ordering samples online via Survey Ch 1 Sampling, Inc. 26

Hot Topics Online Marketing Research

On-line survey research: collection of data using computer networks Ordering samples online via Survey Sampling, Inc.

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Hot Topics Growing Consumer/ Respondent Resentment

Marketing research is invasive. Telemarketers and direct marketers have abused marketing research. The government through FTC has instituted a Do not call list. The marketing research industry is so far excluded from the ban of the do not call regulations.
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Hot Topics Globalization

As marketing firms spread globally, so did marketing research firms. According to Jack Honomichl, 48% of U.S. marketing research firms revenues were generated outside of U.S. The top 25 marketing research firms in the world earn 67% of their revenues outside their own country.
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