PresentationOf Case~

Cost - Conscious Marketing ResearchBy

Group-2

Submitted To:Submitted By:Dayalabagh Educational ManagementDepartment of Management. Arjit Parashar

The "Big decision” or “Small Decision” Myth

Why Marketing Research?Universal belief – numbers don’t lieIncrease chances of taking the right decisionIncrease confidence in your

recommendations

Manager PerceptionFinancial stakes

Cost-benefit perspective

Incremental quality and value of the information

•The cost & time, it would take to decision of market research

Manager’s CallUncertainty avoidanceBenefits of research are proportional to the

manager’s uncertainty about which way to goTactical decisions in the short run and

strategic decisions in the long run

Factors Influencing Marketing Research Decisions

Availability of DataIs the information on hand inadequate?

Do not conduct marketing research!

Conduct Marketing Research

Nature of DecisionIs the decision of considerableimportance?

Benefits vs. CostsDoes the value of the research exceed the cost?

Time ConstraintsIs sufficient time available?

Yes Yes Yes Yes

No No No No

Restaurant manager Adding a line of Mexican dishes Investing in a series of advertisementsCalled in a research professional How likely acceptance of the

repositioning strategy would be“Unless the survey found virtually no

interest in Mexican food in the area, the manager was going ahead with the decision to add the line.”

Research expenditure was unnecessary and that the money could more productively be used to ensure that the new line got the advertising to have the best chances of succeeding

3 or 4 Advertisement optionMore economic

Response to advertising can be analyzed

Defects in one or two ads can be identified

Best Timing of telecasting the advertisement

Taste PreferencesMexican Food lover age groupOwn Brand ValueMany more underlined scenariosSide effects of a bad decision

Which actions to take…..

Small DecisionsTropicana redesigned its orange juice

packaging,

dropping the iconic image of an orange skewered by a straw, it failed to adequately test for consumer reactions

with disastrous results, Sales dropped by 20 percent, and Tropicana reinstated the old package design after only a few months.

low-cost research

Quick-and-dirty study that may be worse than no research at all

Ask Questions to ManagersDo you routinely research consumer

behavior (retention, acquisition, usage) and why consumers behave that way (awareness, satisfaction, perceived quality)?

Do you also compare the decisions with your key competitor?

Do you adjust short-term tactics according to the change in your marketing-based asset?