Marketing Research:Marketing Research:

It’s Everywhere!It’s Everywhere!

target

market

product price

placepromotion

Marketing Management and the Infamous 4 Ps...Marketing Management and the Infamous 4 Ps...

Role of Marketing Research in Role of Marketing Research in Decision MakingDecision Making

Customer/Society

Strategic Marketing Plan:Organizational Resources,Objectives,Marketing Strategy,

Implementation and Control

Marketing Research

informs

Marketing Strategy/Marketing MixProduct-Price-Promotion-Distribution

influences

Definition of Marketing Research

Marketing research is the “function

which 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 understanding

of marketing as a process.”

Figure 3: Where the Marketing Research Dollars are Concentrated

Source: Inside Research, “Where the Money Is,” American Demographics (www.demographics.com).

Figure 5, continued

Source: “Marketing Fact Book,” Marketing News (July 7, 2003).

RESEARCH REALITIES 2: TOP 20 GLOBAL RESEARCH ORGANIZATIONS

Source: Honomichl Top 50 Annual Business Report on the Marketing Research Industry, Marketing News (June 9, 2003), Chicago: American Marketing Association.

e-Bay: Listening to Customerse-Bay: Listening to Customers

Vision: To help practically anyone trade practically anything on earth

To achieve the vision, e-Bay:– Blends marketing research with its overall business

strategy– Forms voice of the customer group to keep itself

informed about the needs and preferences of its customers

– Creates Feedback Forum for users to give each other ratings for each transaction

T.G.I.Friday’s: Using Marketing T.G.I.Friday’s: Using Marketing Research to Identify New Research to Identify New

OpportunitiesOpportunitiesHow the Research Was Conducted:

– Formal interviews with parents and children– Observation of young customers’ likes and

wantsResearch Showed

– Young customers want something beyond ordinary drinks

– T.G.I Friday’s created special kids’ drinks like Banana Kong

Marketing Research to Track Product Marketing Research to Track Product Performance and Customer Performance and Customer

Satisfaction of Products and ServicesSatisfaction of Products and ServicesResearch Showed

– Consumers wanted abundance of toppings

Marketing research led to revamping of pizza toppings

Developing and Implementing Developing and Implementing Marketing StrategiesMarketing Strategies

Develop an effective Marketing Mix

Price Place

Product Promotion

Principles of Marketing Principles of Marketing ResearchResearch

Principle #1: – Attend to the timeliness and relevance of research

Principle #2: – Define research objectives carefully and clearly

Principle #3: – Do not conduct research to support decisions already

made

Principle # 1: Attend to the Principle # 1: Attend to the Timeliness and Relevance of Timeliness and Relevance of

ResearchResearch

Ariel High Suds

Launch

LOW SALES RATES

1985 1986 1987 1988 1989

Marketing Research

Lag Time

Research and Decision Research and Decision MakingMaking

P&G’s Ariel High Suds– Research-related decisions--the timing of the

research studies prior to launch

Decision to forgo additional research to understand the impact of changed economic conditions – contributed to the initial lackluster performance of the product

Principle # 2: Define Research Principle # 2: Define Research Objectives Carefully and Objectives Carefully and

ClearlyClearlyCoca Cola tested New Coke against Coke

ClassicThey didn’t account for consumer reaction

to lack of choice between the two!End Result: New Coke failed

Principle # 3:Do Not Conduct Principle # 3:Do Not Conduct Research to Support Decisions Research to Support Decisions

Already MadeAlready MadeIndianized Yogurt:

– Decision was made to produce yogurt– Yogurt plant was constructed– Marketing research determined there was

only a very small market– Product failed in the marketplace

Nestlé's Dahi is a recent entrant in the yogurt market

Classification of Marketing Classification of Marketing ResearchResearch

Basic Research : to generate or create knowledge – Journal of Marketing articles

Applied research– To solve a problem– To develop strategies for products and services

How Do You Recruit a Nun? How Do You Recruit a Nun? Marketing Research Comes Marketing Research Comes

to the Rescueto the Rescue St.Benedictine Convent:

– Majority of Sisters 70+ years– Inability to attract new recruits

Conducted Focus Groups:– To determine why they were not able to recruit young

members– Research showed people perceived nuns to have a dull

existence Launched New Ad campaign Recruited an average of three nuns a year

In-house Marketing ResearchIn-house Marketing Research

Formal Marketing Department– Centralized: one marketing department for all

product lines– Decentralized: separate marketing departments

for individual product lines– Hybrid : combination of centralized and

decentralized

Exhibit 1.4 Illustrative Centralized Marketing Research Function in a Multibrand Company

Corporate Marketing Research Department

Responsibilities include:

• Designing Studies

• Constructing Questionnaires

• Selecting Samples

• Collecting Data

• Analyzing Data

• Preparing Reports

• Choosing External Research Providers

Corporate Marketing Department

Marketing of Brand A

Marketing of Brand B

Marketing of Brand C

Research Reports

Research Requests

Corporate Marketing Department

Marketing of Brand A

Marketing of Brand B

Marketing of Brand C

Requests Reports Requests Reports Requests Reports

Marketing Research Department for Brand A

Responsibilities Include:• Designing Studies• Constructing Questionnaires• Selecting Samples• Collecting Data• Analyzing Data• Preparing Reports• Choosing External Research Providers

Marketing Research Department for Brand B

Responsibilities Include:• Designing Studies• Constructing Questionnaires• Selecting Samples• Collecting Data• Analyzing Data• Preparing Reports• Choosing External Research Providers

Marketing Research Department for Brand C

Responsibilities Include:• Designing Studies• Constructing Questionnaires• Selecting Samples• Collecting Data• Analyzing Data• Preparing Reports• Choosing External Research Providers

Exhibit 1.5 Illustrative Decentralized Marketing Research Function in a Multibrand Company

Corporate Marketing Department

Marketing of Brand A

Marketing of Brand B

Marketing of Brand C

Research Reports

Research Requests

Research Requests

Research Requests

Corporate Marketing Research Department

Responsibilities include:

• Collecting Data

• Analyzing Data

• Preparing Reports

• Choosing External Research Providers

Marketing Research

Department for Brand A

Responsibilities Include:• Designing Studies• Constructing Questionnaires• Selecting Samples

Marketing Research

Department for Brand B

Responsibilities Include:• Designing Studies• Constructing Questionnaires• Selecting Samples

Marketing Research

Department for Brand C

Responsibilities Include:• Designing Studies• Constructing Questionnaires• Selecting Samples

Shared Responsibilities

for Research

Exhibit 1.6 Illustrative Mixed-Structure Marketing Exhibit 1.6 Illustrative Mixed-Structure Marketing Research Function in a Multibrand CompanyResearch Function in a Multibrand Company

External Marketing ResearchExternal Marketing Research

Large Commercial Firms:– AC Nielsen provides full service, planning through

recommendations

Small Commercial Firms – Specialize in one part of the process– Custom Research Inc. provides

marketing research,customer

satisfaction, and database

marketing services

External Marketing Research External Marketing Research (Cont’d)(Cont’d)

Academic Consultants Professors and students’

research projects

Trade Associations

International trade site (www.fita.org)

Marketing ServicesMarketing Services

Claritas Inc -- Specializes in providing marketing information to companies

Key supplier of information containing the profiles and life-styles of U.S. consumers on a zip code-by-zip code basis

Developed a information base by combining U.S. Census Bureau demographic data with life-style/attitudinal data generated through various regional surveys