Dr. Michael R. Hyman, NMSU

Introduction to Marketing Research

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“It ain’t the things we don’t know that gets us in trouble. It’s the things we know that

ain’t so.”Artemus Ward

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Marketing Research Defined

The systematic and objective process of generating information for aid in making marketing decisions

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Nature of Marketing ResearchAnswers marketing questions by:

• Linking consumers, customers, and public to markets through information used to identify and define marketing

• Generating, refining, and evaluating marketing actions

• Monitoring marketing performance

• Helping to understand marketing as a process

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Marketing Research versus Marketing Information System

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MIS vs. Marketing Research

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Why Do Marketing Research?

• Make better marketing decisions

• Understand consumers and the marketplace

• Find out what went wrong

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Help managers select among viable alternatives

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Why Not Do Marketing Research?

• Lack of required resources• Poor timing in the marketplace• Decision has already been made• Managers cannot agree on needed

information• Needed information already exists• Costs outweigh benefits• Lose element of surprise

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Is sufficient time

available?

Information already on

handinadequate?

Is the decision of

strategicor tactical

importance?

Does theinformation

valueexceed the

research cost?

ConductMarketingResearch

Do Not Conduct Marketing Research

Time Constraints Availability of Data Nature of the Decision Benefits vs. Costs

Yes YesYesYes

No No No No

Determining When to Conduct Marketing Research

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I don’t knowif we should

enter the Australian

Market?

Information

Reduces

Uncertainty

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Value

•Decreased certainty•Increased likelihood of a correct decision•Improved marketing performance and resulting higher profits

Costs•Research expenditures•Delay of marketing decision and possible disclosure of information to rivals•Possible erroneous research results

Value Should Exceed Estimated Costs

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Marketing Research Activities

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Research by Stage in Product Life Cycle

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Research by Type of Marketing Mix Decision

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Qualities of a Good Researcher

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Help manager to understand real problem

Select among viable alternatives

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Structures analysis

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Fits technique to problem

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Good communication skills

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Avoids needless jargon

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Other Qualities

• Careful and conscientious

• Uses insider expertise

• Recognizes overt and covert purposes for marketing research

• Before doing research, knows– Manager’s decision rule– Decision time horizon– Impact of wrong decision

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• Maintains client confidentiality• Honesty• Punctuality• Flexibility• Delivers against projects specifications• Provides high-quality output• Responsive to client’s needs• High quality-control standards• Customer-orientated in interactions with client• Keeps client informed throughout a project

Top Things Clients Want in a Research Company or Department

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Considerations for Hiring Outside Suppliers

• Expertise

• Urgency of the decision

• Personnel resources

• Economic factors

• Objectivity

• Confidentiality

• Quality control

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Manager-Researcher Conflict

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Managers Researchers

1. Decision oriented 1. Technique oriented

2. Intuitive 2. Analytical

3. Managers like to confirm 3. Researchers like to explore

4. Time orientation toward: a. project immediacy (“I need it now.”) b. results about future behavior (“what will sales be next year?”)

4. Time orientation toward: a. Prolonging project (“later when we have time for a complete study”) b. results about past behavior (“our trend has been . . .”)

5. Frugal (“keep the cost down”) 5. Not cost conscious (“you get what you pay for”)

6. Results orientation: a. managers do not like surprises--when surprised they tend to reject the results b. concern (“aren’t we number one yet?”) c. certainty (“is it or isn’t it?”)

6. Results orientation: a. researchers love surprises b. abstraction (“our exponential gain. . .”) c. probability (“may be”)

7. Proactive 7. Reactive

Reasons for Manager-Research Conflict

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Possible Jobs in Marketing Research

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From Data to Action: Putting the Voice of the Customer to Work

Source: AMA Best Practice WebcastsSponsored by:  Maritz Webcast Date: January 27, 2005Time: 57 minutesPresenter: Dr. Randall Brandt, VP-Customer Experience and Loyalty Research, Maritz

Click here for free webcast (you’ll need to register on the AMA site; introduces many topics covered in this course)

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