Session1 What is Market Research New

8/6/2019 Session1 What is Market Research New

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Introduction to Marketing

Research

Role of Marketing Research in Management Decision Making

Learning Objectives

� To review the marketing concept and themarketing mix.

� To comprehend the marketing environment

within which managers must make decisions.� To define marketing research.� To understand the importance of marketing

research in shaping marketing decisions.

� To learn when marketing research should andshould not be conducted.

Because Marketing Research is

part of Marketing we shouldunderstand:

� What is marketing?

� What is the marketing concept?

� What is marketing strategy?

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 itsstakeholders.

What is the Marketing Concept?

� The Marketing Concept is a businessphilosophy that holds that the key toachieving organizational goals

consists of the company¶s being moreeffective than competitors in creating,delivering, and communicatingcustomer value to its chosenmarkets.

What is Marketing Strategy?

� A Marketing Strategy consists of

selecting a segment of the market as

the company¶s target market anddesigning the proper ³mix´ of the

product/service, price, promotion, and

distribution system to meet the wants

and needs of the consumers withinthe target market.

Learning by Doing:

Let¶s Apply Marketing toa Restauranta Restaurant

� Target market segment?

� Marketing strategy ±Location?

±Menu?

±Prices? ±Type?

±Advertising?

Restaurant Marketing Decisions

� What if you owned a restaurant

located near Rizvi college?

� What would be your marketingstrategy?

� 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 China, Thailand, Italy, Iceland, or

� What would be your decisions?

� How certain are you that you made

the right decisions now?

� So, what¶s going on?.....??

K ey 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 thatinformation.

We need Marketing Research to:

� Make the ³right´ decisions to

� Implement marketing

� Practice the marketing concept and� Make the right decisions to select the

right marketing strategy

What is Marketing Research?

� Marketing research is the process of

designing, gathering, analyzing, and

reporting information that may be used to

solve a specific marketing problem withrespect to a particular market,{where

µmarket¶ refers to a specific group in a

specific geographic area}, and make a

particular marketing decision, and thencommunication of the results of this

analysis to the management.

What is Marketing Research?

AMA definition� Marketing research: the function thatlinks the consumer, customer, andpublic to the marketer through

information ± information used toidentify and define marketingopportunities and problems;generate, refine, and evaluatemarketing actions; monitor marketingperformance; and improve theunderstanding of marketing as aprocess.

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

What is the purpose of

Marketing Research?� To link the consumer to the marketer by providing information that can beused in making marketing decisions

Purpose

Why Research?

� Research focuses & organizes information. Itensures that such information is timely andpermits leadership to:

1. Reduce business risks

2. Spot current and upcoming problems in theenvironment

3. Develop plans of action

4. Measure satisfaction/dissatisfaction

5. Assess abilities & weakness

6. Analyze effectiveness, gaps and voids

7. See what the competition is doing

8. Benchmark best practices

What can Market Research

answer?1. Who are the major customers andcompetitors?

2. What kind of people are they?

3. What do they want from a product?4. Why are they buying what they are

buying?

5. How have they been treated in the past

by us & others?6. What do they think of us & others?

7. Are our image building programs working

Critical Components

� Know thy self

� Know the customer

� Know the market� Know them sneaky competitors

� Know the industry

� Know what you don¶t know !!!

Advantages of Market Research

± Helps focus attention on objectives

± Aids forecasting, planning and strategic

development ± May help to reduce risk of new product

development

± Communicates image, vision, etc.

± Globalisation makes market informationvaluable (HSBC adverts!!)

Decisions that can be guided by

market research

� There are four directions a companycould look to expand its business.

1. Existing customers ± existingproducts

2. Newer markets/customers ±existing products

3. Expanding product line ± existingcustomers

4. New customers ± new products

³High level´ business questions

Financial problem solving

� How can we reverse a fall in sales (or

achieve an increase in sales)?� How can we obtain more profit from

the product/service?

� How can we improve the satisfactionof our customers so that loyalty is

improved?

³High level´ business questions

M eeting opportunities

� How can we improve our offer to customers (theproduct/service, the delivery, the guarantees, the servicesupport etc)?

� What is the optimum price we should charge?

� How can we segment the market so that we can better satisfy customers¶ needs?

� What is the best route to market?

� How can we persuade people to buy our products whenthey are being tempted in other directions?

� How can we increase our sales in other territories?

� Which new products or services could we offer to our customers?

Classifying Marketing Research

Studies� Identifying marketing opportunities

and problems

±Market-demand determination ±Market segments identification

± Marketing audits SWOT analysis

Studies� Generating, refining, and evaluating

potential marketing actions

± Proposed marketing-mix evaluationtesting

±New-product prototype testing

±Advertising pretesting«

Studies� Monitoring marketing performance

± Image analysis«bank image

analysis ±Tracking studies...sales, market

shares of all brands in our category

ustomer satisfaction studies

Primary Research

Market Research

� Primary Research

± First hand information

± Expensive to collect, analyse and evaluate

± Can be highly focussed and relevant

± Care needs to be taken with the approach and

methodology to ensure accuracy

± Types of question ± closed ± limited

information gained; open ± useful informationbut difficult to analyse

Secondary Research

Internal Sources

� Company Accounts

� Internal Reports and Analysis

� Stock Analysis

� Retail data - loyalty cards, till data, etc.

External Sources

� Government Statistics (e.g.Population Census)

� Trade publications

� Household Expenditure Survey� Magazine surveys

� Other firms¶ research

� Research documents ± publications, journals, etc.

Market Research

� Quantitative and QualitativeInformation:

� Quantitative ± based on numbers ±

56% of 18 year olds drink alcohol atleast once a week - doesn¶t tell youwhy, when, how

� Qualitative ± more detail ± tells youwhy, when and how!

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

DecidingWhether to Conduct

Market Research

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.

Market Research

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

Market Research

The Decision Whether to Conduct Market Research

Cost likely to be greater

than benefit;

e.g., eyeglasses replacement

Small Possible benefits

greater than cost;e.g., ultra expensive

sportswear

Market Size Small Profit Margin Large Profit Margin

Benefits likely to be

greater than costs;e.g., market for Soaps

Benefits likely to be

greater than costs;e.g.,medical equipment

Disadvantages of Market Research

± Information only as good

as the methodology used

± Can be inaccurate or unreliable ± Results may not be what the business wants to

± May stifle initiative and µgut feeling¶

± Always a problem that we may never knowenough to be sure!

Hot Topics in Marketing

Research� Online Marketing Research

� Growing Consumer/Respondent

Resentment� Globalization

Hot Topics ± Online Marketing

Research� Online research: the use of computer networks, including the Internet, toassist in any phase of the marketing

research process includingdevelopment of the problem,research design, data gathering,analysis, and report writing and

distribution.

Hot Topics ± Growing Consumer/

Respondent Resentment� Marketing research is invasive.

� Telemarketers and direct marketers

have abused ³marketing research.´� The government through FTC has

instituted a ³Do not call´ list.

� The marketing research industry is sofar excluded from the ban of the ³do

not call´ regulations.

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 firmsin the world earn 67% of their revenues outside their own country.

Thank you ! ;-)

Session1 What is Market Research New

Documents

Induction Session1

Dlld session1

day2 session1

Jumpstart Session1

WriteTEL: Session1

Tutorial Session1

OM Session1

Erlang session1

Bootcamp2 session1

Mv session1

Session1 Overview

ASM session1

Acsga Session1

Md session1

day1 session1

ECO Session1

Lecture Session1

Phonology Session1

Session1 tokbox

Economics Session1