01a introduction to market research
TRANSCRIPT
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Introduction toMarketing Research
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Marketing Research Defined
The systematic and objectiveprocess of generating
information for aid in makingmarketing decisions.
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The American Marketing Association (AMA)redefined Marketing Research as:
The function which links the consumer, the
customer, and public to the marketerthrough INFORMATION
Redefining Marketing Research
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Used to identify anddefine marketopportunities andproblems
Generate, refine, andevaluate marketingperformance
Monitor marketing
performance
Improve understandingof marketing as aprocess
Redefining Marketing Research
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Marketing research is the systematic and objective
identification
collection
analysis dissemination
and use of information
for the purpose of improving decision making related to the
identification and
solution of problems and opportunities in marketing.
Definition of Marketing Research
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Marketing research is the systematic andobjective identification, collection, analysis,dissemination, and use of information for the
purpose of assisting management in decisionmaking related to the identification and solutionsof problems and opportunities in marketing
(Naresh Malhotra)
Marketing Research
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Marketing research - is the gathering of information onall activities of marketing
Market research - is the gathering of information on aparticular market for a product or service
Marketing research has a wider scope than market
research
Marketing and Market Research
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Specifies the information necessary to addressthese issues
Manages and implements the data collectionprocess
Analyzes the results
Communicates the findings and theirimplications
Market Research
Cl ifi i f M k i
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Problem Identification Research Research undertaken to help identify problems which are
not necessarily apparent on the surface and yet exist orare likely to arise in the future. Examples: market
potential, market share, image, market characteristics,sales analysis, forecasting, and trends research.
Problem Solving Research
Research undertaken to help solve specific marketingproblems. Examples: segmentation, product, pricing,promotion, and distribution research.
Classification of MarketingResearch
Cl ifi i f M k i
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Marketing Research
ProblemIdentification Research
Problem SolvingResearch
Market Potential Research
Market Share ResearchMarket Characteristics ResearchSales Analysis ResearchForecasting Research
Business Trends Research
Segmentation ResearchProduct Research
Promotion Research
Distribution Research
Classification of MarketingResearch
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Determine the basis of segmentation
Establish marketresponsiveness for various
segments
Select target markets
Create lifestyle profiles:demography, media, andproduct image characteristics
SEGMENTATION RESEARCH
Test concept
Determine optimal product design
Package tests
Product modification
Brand positioning andrepositioning
Test marketing
Control score tests
PRODUCT RESEARCH
Problem Solving Research
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PRICING RESEARCH
Pricing policies
Importance of price in brand selection
Product line pricing
Price elasticity of demand
Initiating and responding to price changes
$ALE
PROMOTIONAL RESEARCH
Optimal promotional budget
Sales promotion relationship
Optimal promotional mix
Copy decisions
Media decisions
Creative advertising testing
Evaluation of advertising effectiveness
Claim substantiation
0.00% APR
Problem Solving Research
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DISTRIBUTION RESEARCH
Determine
Types of distribution
Attitudes of channel members
Intensity of wholesale & resale coverage
Channel margins
Location of retail and wholesale outlets
Problem Solving Research
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Identify changes in the existing market
Build up a knowledge bank
Improve market awareness & opportunities
Reduce risk and uncertainty
Support marketing mix decisions
Support marketing planning and controls
Improve understanding of marketing
Solve ad hoc problems
Scope of Marketing Research
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The Marketing Research Process
Define the Problem Develop an Approach to the Problem
Type of Study? Exploratory, Descriptive, Causal?
Mgmt & Research Questions, Hypotheses
Formulate a Research Design Methodology
Questionnaire Design
Fieldwork
Prepare & Analyze the Data
Prepare & Present the Report
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Marketing Research TypesBasic research
Applied research
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Basic Research
Attempts to expand the limitsof knowledge
Not directly involved in thesolution to a pragmaticproblem
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Basic Research Example
Do consumers experiencecognitive dissonance in
low-involvementsituations?
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Applied Research
Conducted when a decision must bemade about a specific real-life problem
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Applied Research Example
Should McDonalds add Italian pastadinners to its menu?
Marketing research told McDonalds it
should not
Should Procter & Gamble add a high-priced home teeth bleaching kit to its
product line? Research showed Crest Whitestrips
would sell well at a retail price of $44
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Scientific Method
The analysis and interpretation ofempirical evidence (facts fromobservation or experimentation)to confirm or disprove priorconceptions
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Using Marketing Research
We can use Marketing Research to:Identify & Evaluate Opportunities
Analyze Market Segments
Select Target Markets
Plan & Implement Marketing Mixes
Analyze Marketing Performance Performance Monitoring Research
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Identifying and EvaluatingOpportunities
Examples
Mattel Toys investigates desires for play
experiences Home cooking is on the decline.
Purchase of precooked home
replacement meals is on the rise. Number of investors trading stock on
the Internet is growing.
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Analyze Market Segments andSelect Target Markets
Examples
Cadillac investigates buyers demographic
characteristics MTV, monitoring demographic trends, learns
the Hispanic audience is growing rapidly
Sears learns women, age 25-54 with averagehousehold income of $38,000, are corecustomers. Targets this market with "The Good
Life at a Great Price. Guaranteed. Sears."
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Plan and Implementa Marketing Mix
Price: Safeway does a competitive pricinganalysis
Distribution: Caterpillar Tractor Co. investigates
dealer service program.
Product: Oreo conducts taste test, Oreo cookievs. Chips Ahoy
Promotion: How many consumers recall theLife Tastes Good. Coca Cola! slogan?
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Analyze Marketing Performance
This years market share is
compared to last years.
Did brand image change afternew advertising?
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Performance-monitoring Research
Research that regularly providesfeedback for evaluation and control
Indicates things are or are not goingas planned
Research may be required toexplain why something went wrong
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Determining When to ConductMarketing Research
Time constraints
Availability of data
Nature of the decisionBenefits versus costs
D t i i Wh t C d t
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Is sufficient
time
available?
Information
already on
hand
inadequate?
Is the
decision of
strategic
or tactical
importance?
Does the
information
value
exceed the
research cost?
Conduct
Marketing
Research
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 ConductMarketing Research
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Value
Decreased uncertaintyIncreased likelihood ofcorrect decision
Improved marketingperformance andresulting higher profits
Costs
Research expendituresDelay of marketingdecision and possibledisclosure of information
to rivalsPossible erroneousresearch results
Potential Value of a Marketing ResearchEffort Should Exceed Its Estimated Costs
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ALWAYS Remember
Marketing Research is a tool.
It assists marketing managers in
their decision making. IT IS NOT A
REPLACEMENT FORMANAGERIAL
JUDGEMENT!!
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ControllableMarketing
Product
Pricing
Promotion
Distribution
Variables
MarketingResearch
MarketingDecisionMaking
ProvidingInformation
AssessingInformationNeeds
Marketing Managers
Market Segmentation
Performance & Control
Target Market Selection
Marketing Programs
Uncontrollable
Environmental
Factors
Economy
Technology
Laws &Regulations
Social & CulturalFactors
Political Factors
Customer Groups
Employees Shareholders
Suppliers
Consumers
The Role of Marketing Research
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U.S. rank Worldwide research Non-U.S. research Percent2001 2000 revenues* revenues* non-U.S.
($, in millions) ($, in millions) revenues
1 2 VNU, Inc. New York vnu.com $2,400.00 $1,100.00 45.80%
2 3 IMS Health, Inc. Fairfield, Conn. imshealth.com 1,171.00 702 60
3 4 Information Resources, Inc. Chicago infores.com 555.9 135.6 24.4
4 6 The Kantar Group Fairfield, Conn. kantargroup.com 962.3 663.2 68.9
5 5 Westat, Inc. Rockville, Md. westat.com 285.8
6 7 Arbitron, Inc. New York arbitron.com 227.5 7.9 3.5
7 NOP World US New York nopworld.com 224.1 17.5 7.8
8 8 NFO WorldGroup Greenwich, Conn. nfow.com 452.9 289.9 64
9 9 Market Facts, Inc. Arlington Heights, Ill. marketfacts.com 189.7 33.5 17.7
10 11 Taylor Nelson Sofres USA London tnsofres.com 166.9 16.4 9.8
11 11 Maritz Research Fenton, MO. maritzresearch.com 181.7 54.6 30
12 23 Ipsos New York ipsos.com 204.3 91.4 44.7
13 15 J.D. Power and Associates Westlake Village, Calif. jdpa.com 128 18.7 14.6
14 14 Opinion Research Corp. Princeton, N.J. opinionresearch.com 133.6 42.2 31.6
15 10 The NPD Group, Inc. Port Washington, N.Y. npd.com 101.7 13 12.8
16 17 Jupiter Media Metrix, Inc. New York jmm.com 85.8 17.2 20
17 18 Harris Interactive, Inc. Rochester, N.Y. harrisinteractive.com 75.4 10.5 13.9
18 20 Abt Associates, Inc. Cambridge, Mass. abtassociates.com 62.8 9.4 15
19 19 C&R Research Services, Inc. Chicago crresearch.com 43.6
20 22 Wirthlin Worldwide McLean, Va. wirthlin.com 46.8 7.2 15.4
21 24 Lieberman Research Worldwide Los Angeles lrwonline.com 43.1 4.3 10
22 25 Burke, Inc. Cincinnati burke.com 45.5 11.2 24.6
23 21 MORPACE International, Inc. Farmington Hills, Mich. morpace.com 48.3 15.9 32.9
24 26 Market Strategies, Inc. Livonia, Mich. marketstrategies.com 31.7 1.5 4.7
25 30 GfK Custom Research, Inc. Minneapolis customresearch.com 29.8 0.9 3.9
Organization Headquarters Web site
Top U.S. Marketing Research Firms