Marketing Research

Marketing ResearchAaker, Kumar, Day and LeoneTenth EditionInstructor’s Presentation Slides

Chapter One

A Decision Making Perspective on

Marketing Intelligence

Marketing Research 10th Edition

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http://www.drvkumar.com/mr10/

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Market Research

Marketing Research 10th Edition http://www.drvkumar.com/mr10/

Business Intelligence

• BI is the ability to access data from multiple sources within an organization and deliver it to business users for analysis

• It links the disparate operational systems to the end users of the data, thus creating an environment with free flow of information

• It offers a reliable barometer of business performance

• It helps to analyze what is behind trends and anomalies in the business

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Provide data on


Financial Intelligence

Marketing Intelligence

Accounting Intelligence

Marketing Research

Management Intelligence

....................

Prospects Customers Competition Products/Markets

Primary Sources Secondary Sources Standardized Sources

Customer Relationship Marketing/ Database Marketing


What is Marketing Intelligence?

Market intelligence (MI) is, “the process of acquiring and

analyzing information in order to understand the market

(both existing and potential customers); to determine the

current and future needs and preferences, attitudes and

behavior of the market; and to assess changes in the

business environment that may affect the size and nature

of the market in future.”

- Cornish S. L

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Need for Marketing Intelligence

• Producers have little direct contact with consumers (geographical distance and channel layers).

• Channel has little knowledge about customer attitudes, preferences and changing tastes.

• Need to understand competition, without spying on them.

• Management goals involve sales targets and market share achievement.

• Need to identify successful new product developments early in the process to ensure growth and revenue maximization by finding a balance between costs and prices of products.

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Domains of Marketing Intelligence

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Pro

du

ct D

ecis

ion

s

Cu

sto

mer

Seg

men

tati

on

dec

isio

ns

Brand and P

ricing

decisions

Keeping stakeholders

happy

Mar

ket e

stim

atio

n,

com

petit

ive

benc

h-

Mar

king

& d

istr

ibut

ion


Marketing Research• Marketing Research, a critical part of Marketing

Intelligence helps by providing accurate, relevant and timely (ART) information

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Links consumer, customer, and public to the marketer

through information used to:

• Identify and define marketing opportunity and

problems

• Generate, redefine and evaluate marketing actions

• Monitor marketing performance

• Improve understanding of marketing as a process (from AMA’s official definition of Marketing Research)


Role of Marketing Research in Managerial Decision Making

Four Stages of Market Planning Process

▫ Situation analysis

▫ Strategy development

▫ Marketing program development

▫ Implementation

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Marketing Planning Process

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•Performance monitoring•Refining strategies and program

•Define the business scope and

market segments served

•Establish competitive advantages

•Set performance objectives

Situation Analysis

StrategyDevelopment

MarketingProgram

Development

Implementation

•Understand the environment and the market•Identify threats and opportunities•Assess the competitive position

•Product and channel decision•Communication decisions•Pricing•Personal selling decisions


Situation Analysis

Analysis of

▫Market environment

▫Market characteristics

▫Consumer behavior

Research Approaches

▫Organize information obtained from prior studies (secondary)

▫Focus groups

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Strategy Development

Market Research Provides Information to Assist Management With Three Critical Decisions:

▫ What business should we be in?

▫ How will we compete?

▫ What are the objectives for the business?

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Marketing Program Development

• Programs embrace specific tasks

• Action program usually focuses on a single objective in

support of one element of overall business strategy

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• Segmentation decisions

• Product decisions

• Distribution decisions

• Advertising and promotion decisions

• Personal selling decisions

• Price decisions

• Branding decisions

• Customer satisfaction decisions

Representative Decisions that Draw on Marketing Research:

Implementation

• Starts with decision to proceed with a new program or strategy• Set specific measurable objectives for all elements of marketing

program• Shift research focus to :

▫ "Did the elements achieve their objectives?"

▫ “Should the marketing program be continued, discontinued, revised or expanded?"

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• Relevance

• Type and Nature of Information Sought

• Timing

• Availability of Resources

• Cost-benefit Analysis

Factors Influencing Marketing Research Decisions

Ethics in Marketing ResearchEthics of the Sponsor

▫ Overt and covert purposes

▫ Dishonesty in dealing with suppliers

▫ Misuse of research information

Ethics of the Supplier

▫ Violating client confidentiality

▫ Improper execution of research

Abuse of Respondents

▫ Falsifying answers

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Conquering Latino Homes

• Hispanics account for nearly 15% of the U.S. population.

• Research shows that Latino households contribute $600 billion of

$1.3 trillion purchasing power of multicultural population.

• In 2003 only 5.1% of total advertising dollars in the United States

was focused on Latinos.

• By 2050, Hispanic population would represent 25% of US

population.

• What do you think the problem is?

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P&G Luring Women with their Feminine Toothpaste

• P&G has came out with “Rejuvenating Effects” a gender

specific toothpaste targeting the female customers, who do

82% of the grocery shopping.

• The flavor and package of the product was decided on the

basis of the results from a customer survey filled out by

women.

• Though the product is priced slightly higher than the other

brands P&G hopes to make women think about the

toothpaste in the same light as skin care lotions and

shampoo.

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Harley Davidson Exploring New Markets

• Problem: Flat domestic scales

• Solution: ▫ In 1999, Harley-Davidson started a rental program which provided a way to

hook customers on riding and thereby entice them into buying a motorcycle.

▫ 40 percent of those enrolled in the program were female and about 30 percent were under the age of 35

• Result:▫ Motorcycles rented went up from 401 days in 1999 to a total of 224,134 days

worldwide in 2004. ▫ 32 percent of rental customers surveyed bought a bike or placed an order

after renting, another 37 percent were planning to buy one within a year.

▫ Nearly half of the renters spent more than $100 on Harley-Davidson accessories, such as T-shirts and gloves.

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Marketing Research

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