An introduction to Marketing Research

Marketing Research
Chapter 1.
An introduction to Marketing Research
Marketing – is a process of all activities necessary for the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.

Marketing Research
Chapter 1.
An introduction to Marketing Research
Information is the competitive advantage that drives success…just so long as the information is appropriate and adequate and we know how to use that information! Competitors can copy and better equipment, processes and products but they can’t replicate the company’s information and intellectual capital.’

Marketing Research
Chapter 1.
An introduction to Marketing Research
‘Most marketers don’t need more information, they need the right information and the managers need to be able to determine how to use this information appropriately and effectively so as to enhance performance.’

Marketing Research
Chapter 1.
An introduction to Marketing Research
Marketing research – is the process of designing, gathering, analyzing, and reporting information that may be used to solve a specific marketing problem.
The purpose of marketing research – to link the consumer to the marketer by providing information that can be used in making marketing decisions.

Marketing Research
Chapter 1.
An introduction to Marketing Research
Identifying Market Opportunities and Problems
Ex. Research shows, that one in twenty 12-year-old is dieting.
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There is a demand for diet products for the teen market segment
Market segment identification
SWOT – analysis
Product/service use studies
Environmental analysis studies
Competitive analysis
What are the Uses of Marketing Research?

Marketing Research
Chapter 1.
An introduction to Marketing Research
2.Generate, Refine and Evaluate Potential Marketing Actions.
What are the alternative ways of appealing to the teen diet market?
Would a new diet drink, chain of “teen” health clubs or specially formulated diet pills?
What marketing mix?
New product testing
Pricing testing
Advertising testing
TV and recall studies
In-store promotion effectiveness studies
Distribution effectiveness studies
What are the Uses of Marketing Research?

Marketing Research
Chapter 1.
An introduction to Marketing Research
3. Monitor Marketing Performance.
These studies help to evaluate how well marketing mix is performing
Image analysis
Customer satisfaction studies
Employee satisfaction studies
Distributor satisfaction studies
Tracking research
4. Improve marketing as a process
These studies are needed to expand knowledge of marketing as a process
Predictors of new-product success
The impact of long-term ads on consumer choice
Measuring the advantage to being the first product in the market
What are the Uses of Marketing Research?

Marketing Research
Chapter 1.
An introduction to Marketing Research
Marketing Information System (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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What is the ROLE?

Marketing Research
Chapter 1.
An introduction to Marketing Research
The ROLE of the MIS – to determine decision makers’ information needs, acquire the needed information and distribute that information to the decision makers in a form and at a time when they can use it for decision making.

Marketing Research
Chapter 1.
An introduction to Marketing Research
Components of MIS
Internal Reports System
(система сбора внутренней отчетности)
Marketing Intelligence System
(система сбора текущей внешней маркет.информации)
Marketing Decision Support System
(система анализа маркетинговой информации)
Marketing Research System

Marketing Research
Chapter 1.
An introduction to Marketing Research
1. Internal Reports System – gathers info. generated by internal reports.
Revenue
Product purchase price
Transportation charges
Direct costs of sale, such as commission to sales persons
Rental cost for retail space
Salaries and wages
collects all information about internal space of the company
2. Marketing Intelligence System – is a set of procedures and sources used by managers to obtain everyday information about developments in the environment
collects all information about external space of the company
Informal information-gathering procedures
Formal information-gathering activities

Marketing Research
Chapter 1.
An introduction to Marketing Research
3. Marketing Decision Support System is defined as collected data that may be accessed and analyzed using tools and techniques that assist managers in decision making.
4. Marketing Research System.
For specific situations!

Marketing Research
Chapter 1.
An introduction to Marketing Research
NOTE!
Marketing Research projects are launched only when there is a need of information, not available from:
internal reports system
marketing intelligence system
marketing decision support system

Ethics and
Marketing Research

Marketing Research
Chapter 1. An introduction to Marketing Research
Ethics and Marketing Research
Ethics may be defined as a field of inquiry into determining what behaviors are deemed appropriate under certain circumstances.

Marketing Research
Chapter 1. An introduction to Marketing Research
Ethics and Marketing Research
One’s philosophy usually determines appropriate, ethical behavior.
We use the 2 philosophies of deontology and teleology to explain this behavior.
In the area of MR there are codes of Ethics:
Prohibiting selling under the guise of conducting research;
Maintaining research integrity by avoiding misrepresentation and omission of pertinent research data;
Treating outside clients and suppliers fairly

Marketing Research
Chapter 1. An introduction to Marketing Research
Ethics and Marketing Research
Several ethical issues may arise in the practice of MR that center around how others are treated.
Buyers
Suppliers
Respondents
deception (can occur in 2 forms: omission of information and giving the respondent false information)
confidentiality and anonymity
invasions of privacy

Marketing Research
Chapter 1. An introduction to Marketing Research The MR process

Marketing Research
Chapter 1. An introduction to Marketing Research The MR process
1. Establish the need for marketing research.

Marketing Research
Chapter 2 – Defining the Problem and determining research objectives
Defining the problem is critical to setting the direction for all subsequent steps of the MR process.
This is particularly true for custom-designed research as opposed to standardized research.

There are 2 instances in which Marketing Research should be undertaken.
If it helps you gain a meaningful competitive advantage
If it allows you to stay abreast of your markets

Marketing Research
Chapter 2 – Defining the Problem and determining research objectives
There are 2 types of problem with which a marketing researcher must contend:
A marketing-management problem
We always have symptoms
2. The marketing research problem - providing relevant, accurate, and unbiased information (соответствующая, точная и объективная информация) that managers can use to solve their marketing management problems

Marketing Research
Chapter 2 – Defining the Problem and determining research objectives
Sometimes marketers confuse problem with symptoms.
Xerox become concerned a number of years ago that it was rapidly losing photocopier sales to Japanese competitors.
Is it a problem or symptom?

Marketing Research
Chapter 2 – Defining the Problem and determining research objectives
Consider, for example:
The new-product introduction for which sales are below target. symptom
The marketing management problem – what to do about the shortfall?
Should the target be revised? Was it too optimistic?
Should the product be withdrawn?
Should one of the other elements of the marketing mix, such as advertising, be altered?
One of the possibilities – the adv.campaign, supporting the new-product introduction has been ineffective
(was not creating sufficient awareness)
This suspicion could serve as the basis for a research problem. What is the research problem?

Marketing Research
Chapter 2 – Defining the Problem and determining research objectives
The research problem would then become:
The assessment of product awareness among potential customers.

Marketing Research
Chapter 2 – Defining the Problem and determining research objectives
Marketing management problem – what needs to be done?
Research problem involves determining what information to provide and how that information can best be secured.

Marketing Research
Chapter 2 – Defining the Problem and determining research objectives
Relationship between decision problem and research problem