Marketing Research Chapter One Notes Marketing Research: what is it?Marketing Research: Function that links an organization to it market through gathering of information -Critical part of marketing intelligence that obtains information on consumer needs -It facilitates the identification and definition of market driven opportunities and problems, the development -Enables the monitoring of marketing performance and improved understanding of marketing as a business process -Organizations use market research information to identify new product opportunities, develop advertising strategies, and implement new data gathering methods to better understand customers -Links an organization to its market through the gathering of information -Systematic Process Marketing Research Process 1. Problem Definition 2.
Development of an approach to the problem 3. Reserach Design Formulation 4. Data Collection 5. Data Analysis 6. Report Preparations and Presentation Marketing Planning and Decision Making -Decisions must have be made with a high level of confidence -Marketing research is the foundation of market planningResearch Benefits Marketing decisions… -Situation analysis -Strategy design -Program development Marketing Situation Analysis Situation analysis: to monitor the appropriates of a firms marketing strategy and to determine whether changes to the strategy are necessary -Includes 3 decision are: 1. Market analysis 2.
Market Segmentation 3. Competition Analysis When conducting a situation analysis, Market Research can… -Locate and identify new market opportunities for a company (opportunity assessment) -Identify segments of customers within a product market (segmentation) -Identify existing and potential competitors strengths and weaknesses (performance analysis) Market AnalysisOpportunity Assessment: involves collecting information on product markets for the purpose of forecasting how they will change -Collect information relevant to macro environmental trends and access how those trends will influence the product market Approaches to market analysis and opportunity assessment … 1. Content Analysis---researchers analyze various trade publications, newspaper articles, academic literature, web sites, or computer databases for information on trends in a given industry 2. In depth interviews: researchers conduct formal, structured interviews with experts in a given field 3. Formal rating procedures- researchers use structure questionnaires to gather info on environmental occurrences Market SegmentationBenefit and Lifestyle studies: examine similarities and differences in consumer needs.
Use these studies to identify 2 or more segments within the market for a particular company’s products. Data is compared to purchase patterns of particular products to develop market segmentation profiles Competitive Analysis Importance performance analysis can be used to evaluate competitor’s strategies, strengths, limitations, and future plans. Asks consumers to identify key attributes that drive purchase behavior. Attributes examined include price, product performance, and product quality, accuracy of shipping and delivery, and convenience of store locationMarketing Strategy Design -Information collected can be used to design marketing strategy -Target Market Analysis -Positioning -New product planning Target Market Analysis/market segmentation Target Marketing Analysis: identifies segments the company wishes to serve as well as the needs of those groups Information provided -New Product opportunities -Demographics, psychographics, attitudes -User profiles, usage patterns -Effectiveness of current strategy Positioning Positioning: Company seeks to establish meaning consistent with customer’s needs and preferences. Aka perceptual mapping.
Refers to perception of company versus competition in mind of consumer.Info is used to make perceptual maps New Product Planning -Research tasks related to new-product planning are concept and product testing Test Marketing: provide information for decisions on product improvements and new product introduction Marketing Program Development -Gathers info for total marketing mix -Product portfolio analysis -Distribution decisions -Pricing decisions -Integrated marketing communication Product Portfolio Analysis -Total product line typically is the focal point -Customer satisfaction studies: assesses the strengths and weaknesses customers perceive in a firm marketing mixes. Measure customer attitudes. Distribution Decisions 3 types of distribution related research studies are cycle time research, retail store image, and supply chain efficiency Cycle-time research: centers on reducing the time between the initial contact and final delivery of the product Retail Research: includes studies on a variety of topics such as trade area analysis, store image/perception, in store traffic patterns, and location analysis Pricing Decisions -Involve pricing new products, establishing price levels in test-market situations, and modify prices for existing products Integrated Marketing communications -Promotional decisions -Need to have reliable metrics to accurately get a return on investment Executive DashboardsExecutive dashboards: intranet for a select group of managers who are the main decision maker in the company -Displays metrics that they want everyone to focus when making decisions -give managers a snapshot of the current status of their business -Metrics often displayed as key performance indicators (KPIs) The Marketing Research Industry Types of research firms -Internal/external---internal (organizational units that reside within a company (IBM, Proctor and Gamble, Kraft all have internal marketing research departments); external (marketing research providers, perform all aspects of research) -Customized/Standardized--- -Customized: provide specialized, highly tailored services to the client.
Concentrate on one specific area -Standardized: more general services.Follows an established, common approach in research design so the results of a study conducted for one client can be compared to norms from studies done for the other clients. -many standardized research firms also provide syndicated business services that include data made or developed from a common data pool or base -Brokers/facilitators Suppliers of information 1. Corporate/In house ex Proctor and gamble 2. External ex D&B, IRI, etc -Customized versus syndicated services ex PRIZM The marketing research industry… -Worldwide spending on MR---30 billion per year -Real spending on MR has steadily on MR has steadily grown, over the decades, through the recent recession has taking its toll -Steady growth in non-US share of MR industry.
In 2009 firms got only 32% of their revenue from US operation -Obviously the picture isn’t as rosy as of late, but things are on the rebound Top 10 research activities… 1. Industry characteristics and trends 2. Product satisfaction 3. Market share analysis 4. Segmentation studies 5. Purchase behavior 6.
Brand awareness 7. Purchase intentions 8. Brand preference 9. Concept developments and testing 10. Demand analysis/market potential Ethics in marketing research practices… The main sources of ethical issues in marketing research are the interactions among the 3 groups… 1. The research information providers 2.
The research information users 3. The respondents Ethical questions in general business practices Pricing issues, client confidentiality, and use of “black box” are dilemmas for research providers -Branded black box methodologies: methodologies offered by research firms that are branded and do not provide information about how the methodology works Conducting research not meeting professional standards Curbstoning: data collection personnel fillings out surveys for fake respondents Abuse of respondents… Not provide promised incentive Saying interviews are short, when really there a hour Using fake sponsors At the end of any study involving deception, a debrief (explanation of any deception) is needed after Cant be psychologically or physically harmedSugging/frugging: claiming that a survey is for research purposes and then asking for a sale or donation Esomars ethical principles… Conform to all national and international laws Behave ethically Be particularly careful with children and other vulnerable groups Ensure respondents are cooperating voluntarily and are well informed of risk Respect rights of respondents Protect personal data and use only for intended purpose Conduct projects with accuracy, transparency, objectivity, and quality Conform to principle of fair competition Emerging trends… Secondary data Technology-based data management Digital information acquisition and retrieval International client base Information management
