Lecture I MR

Module One

A Decision Making Perspective on Marketing Research

Business Intelligence BI is the ability to access data from multiple sources within an organization for the purpose of analysis.It links the disparate operation systems to the end users of the data, thus creating an environment with free flow of information.It offers a reliable barometer of the business performance.The applications of BI tools are immense and can be profitable across different functions of an organization.http://www.bi-dw.info/businessintelligence/examples.htm

Need for Marketing IntelligenceMI focuses on the use of information as a source of strategic advantage.Need to have a thorough knowledge of customers, their attitudes, tastes and preferences.Need to analyze competition for benchmarking and making price, product, market and segment decisions.

Marketing ResearchMarketing Research, a critical part of Marketing Intelligence helps by providing accurate, relevant and timely (ART) information.Function of Marketing Research is to link an organization to its market through informationIdentify and define marketing opportunity and problemsGenerate, redefine and evaluate marketing actionsMonitor marketing performanceImprove understanding of marketing as a process

Role of Market ResearchSpecifies information required Designs method for collecting informationManages and implements data collection processInterprets results & communicates findings

Why study Marketing ResearchCareers

Research Organizations (e.g. A.C. Nielsen, J.D. Power Associates, ,CRISIL etc.)Marketing & Business Consultancies (e.g. Arthur Andersen, Price Waterhouse, McKinsey & Co, etc.)Marketing Departments of BusinessesAcademia

CRISIL -65 industiries and 150 corporates, 90 % Commercial Banks*

Situations where MR knowledge is essentialYour boss wants to introduce a new product and calls you for advice.Your ad agency wants your business to buy an expensive ad campaign.Your MR consultants present their findings about why your sales are falling. Do you accept their reasons?Your boss wants to reduce prices and calls you for advice.

Why study Marketing ResearchUniversal belief numbers dont lieIncrease chances of taking the right decisionIncrease confidence in your recommendations

Definition of Marketing ResearchMarketing research is the

systematic (pre-planned) and objective (measurable)identification, collection, analysis, and dissemination of information (information goes from market to organization)for the purpose of improving decision making (providing factual basis for taking a decision)related to the identification of opportunities and solution of problems in marketing.

Role of Marketing Research in Managerial Decision MakingFour Stages of Market Planning Situation analysis ProcessStrategy development

Marketing program development

Implementation

Situation AnalysisThe analysis of the environment in which the business operates

Market (sector-specific e.g. demand and supply, production, etc.)Economy (e.g. money supply, inflation, BOP, interest rates, etc.)*Consumer and society (buyer behavior, societal trends)Technology (obsolescence, innovations, inventions)Legal (laws regulating business)Political (govt. attitudes to business and specific sectors)Natural (effect of natural resources on business)Usually focus on trends which impact the marketing situation

Aspect of business environment?In which business is interested?Depletion of forest coverIncreased demand for gasoline in China and IndiaFed drops interest rates by a quarter of a pointSensex rises by 100 pointsConsumers increasingly prefer to buy onlineIncreasing trend in downloading songs from the InternetGrowing popularity of satellite radioPrivileges to Manufacturing

Case: MP3 playersIdentify at least one aspect of the external environment I-Pod would be interested in researching:

EconomicTechnologicalBuyer behaviorMarketLegal

Situation Analysis Common Marketing Research QuestionsDescribing the market:

How big is the existing market?How big is the potential market?How fast is the market growing?How brand loyal is the market?What competitive products exist?What is the supply situation in the market?

Situation Analysis Common Marketing Research QuestionsDescribing an organizations market position:What market share does the company hold?What market segments exist and which do we serve?Who are our primary competitors?What opportunities exist with distribution channels?

Situation Analysis Common Marketing Research QuestionsDescribing buyer behavior:Who are our customers? (i.e., demographic, geographic, psychographic segments)How do buyers perceive our brand and competing brands?What is the repurchase rate for our brand and competing brands?How satisfied are customers with our brand?Where do customers buy? When do they buy? Why do they buy?How much do buyers like our brand?



Implementation

Strategy DevelopmentMarket Research Provides Information to Assist Management With Three Critical DecisionsWhat business should we be in?How will we compete?What are the objectives for the business?

Strategy development Common Marketing Research QuestionsWhat business should we be in:

What products should we offer (e.g. Why did Apple get into the music business?)What technologies should we use (e.g. Should the TV industry go the LED or the OLED way??)*What market segments should we target (e.g. Under Armour serious athletes or even casual athletes?) What distribution channels should we use (e.g. FMCG- dealerships or Internet?)

Strategy development Common Marketing Research QuestionsHow will we compete

How do we differentiate ourselves / our product from competition (e.g. Should Lacoste be a premium brand or a mass market brand?)What attributes do consumers consider to be important (e.g. toothpaste whitening power or cavity protection?)How do we compare to competition (e.g. Pepsi and Coke who is winning?)

Strategy development Common Marketing Research QuestionsWhat our the business objectives

Sales Profits Market share Service objectives (Car dealers low prices or turnaround times)Customer satisfaction (self-survey or actual complaints)Attitudes, etc.



Implementation

Common QuestionsSegmentation which segment to target (e.g. BMW should they introduce an economy car?)Product How should the product be positioned (Should Apple I-Pod be a premium brand or a mass market brand?)Distribution exclusive / mass distribution (Barbie dolls should be sold exclusively through Toysrus or even in Walmart?)Advertising what appeals should be used (e.g. Dolce & Gabbana super low-rise jeans should they use over-the-top sex appeal in their ads or not?)

Common QuestionsPersonal selling which customers should be approached personally (e.g. Epson printers is personal selling an option?)Price what price should be charged (e.g. should Starbucks drop their prices?)Branding how can brand loyalty be increased (e.g. should TATA salt institute a customer rewards program?)Customer satisfaction how can it be measured



Implementation

Common questions - ImplementationDid the marketing program achieve its objectives (e.g. did the share a Coke campaign improve Attitudes?)*Should the marketing program be modified, continued or terminated (e.g. Madhuri Dixit in Olay ..white.. Whiter whitest white should the company pull the campaign?)

Factors Influencing Marketing Research DecisionsAvailability of DataIs the information on hand inadequate?Do not conduct marketing research!Conduct Marketing ResearchNature of DecisionIs the decision of considerableimportance?Benefits vs. CostsDoes the value of the research exceed the cost?Time ConstraintsIs sufficient time available?YesYesYesYesNoNoNoNo

To learn when marketing research should and should not be conducted.When Managers Cannot Agree on What They Need to Know to Make a DecisionThe wrong phenomena might be studiedWhen Decision-Making Already ExistsFurther research may be redundant and costlyWhen the Costs of Conducting Research Outweigh the BenefitsPotential new products with large profit margins may have a greater potentialLearning ObjectivesDeciding Whether to Conduct Market Research

The Decision Whether to Conduct Market ResearchCost likely to be greater than benefit; e.g., eyeglasses replacement screw

SmallPossible benefits greater than cost; e.g., ultra expensive sportswear

Market SizeSmall Profit MarginLarge Profit MarginBenefits likely to be greater than costs; e.g., Mothers Recipe EntreeBenefits likely to be greater than costs; e.g.,medical equipmentLarge

Table 1.1

Advantages of Internet SurveysRapid Development, Real Time ReportingDramatically Reduced Costs Readily PersonalizedEase and Convenience Encourage Respondent ParticipationContact the Hard-to-ReachTo understand the importance of marketing research.Learning ObjectivesProfound Impact of the Internet

Other Uses of the Internet by Marketing ResearchersReplacement of libraries and printed materialsDistribution of requests for proposals Collaboration between the client and the research supplierData management and on-line analysisOral presentations of marketing surveysTo understand the importance of marketing research.Profound Impact of the InternetLearning Objectives

WEB FEEDhttp://educationportal.com/academy/lesson/marketing-research-definition-purpose-and-role-in-marketing-strategy.html

Class Assignment http://knowledge.wharton.upenn.edu/article/what-marketers-need-to-know-about-binge-buying/

STEPS IN MARKETING RESEARCH

5 key steps in Marketing ResearchDefine the ProblemCollect the DataAnalyse and interpret the dataReach a conclusionImplement your research

Define the ProblemIn this stage you need to identify the actual problems that are relating to the apparent symptoms. What information is needed in order to solve the problem?For example, poor sales within a business are not the problem, they are the symptom of a larger issue such as a weak marketing strategy.

Further business problems may include:Who are your target customers?What method could be implemented to reach these customers?Who are your customers and what advantages and disadvantages do they have over your business?What size is the consumer market you are trying to engage?

Collect the DataThere are two types of market research that can be performed:

Primary research - involves collecting information from sources directly by conducting interviews and surveys, and by talking to customers and established businesses.Secondary research - involves collecting information from sources where the primary research has already been conducted. Such information includes industry statistics, market research reports, news paper articles, etc.

Collection methods and techniquesQualitative research is where you seek an understanding of why things are a certain way. For example, a researcher may stop a shopper and ask them why they bought a particular product or brand.Quantitative research refers to measuring market phenomena in a numerical sense, such as when a bank asks consumers to rate their service on a scale of one to ten.

Analyse and interpret the dataYou must attach meaning to the data you have collected during your market research to make sense of it and to develop alternative solutions that could potentially solve your business problem. You should determine how the knowledge you have gained through researching your market can be applied and used to develop effective business strategies.

Reach a conclusionWith the alternatives you have developed to solve your problem in mind, perform a cost-benefit analysis of each alternative keeping in mind the potentially limited resources available to your business. You may also need to perform further investigation into each alternative solution to arrive at the best decision for your business in regards to meeting consumer demands.

Implement your researchPut your final solution into practice. Without completing this step your research could potentially have been a waste of your time and resources.

Marketing Research Agencies in IndiaIMRB International (Indian Market Research Bureau)IMRB has been responsible for establishing the first and television audience measurement system and the first radio panel in the countryIMRB International's specialised areas are consumer markets, industrial marketing, business to business marketing, social marketing and rural marketing

RNB ResearchRNB Research specializes in qualitative and quantitative custom market research. It has experience in most major sectors, particularly consumer products, media, retail, financial services, food and beverages, technology, telecommunications and internet research.

Thank You

CRISIL -65 industiries and 150 corporates, 90 % Commercial Banks*

Lecture I MR

Documents

Transcript of Lecture I MR