Chapter OneCopyright © 2006John Wiley & Sons, Inc.Copyright © 2006John Wiley & Sons, Inc.

The Role of Marketing Research

in Management Decision Making

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To review the marketing concept and the marketing mix.

Nature of Marketing

• Marketing– The process of planning and executing the

conception, pricing promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organization objectives

• Marketing Concept1. Consumer Orientation2. Goal Orientation3. Systems Orientation

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• Opportunistic Nature of Marketing Research– Identify the target– Marketing mix

• The External Marketing Environment– Marketing research is the key to understanding

the environment– Provides information for altering marketing mix– Identifies new opportunities

To review the marketing concept and the marketing mix.

Nature of Marketing

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To define marketing research.Marketing

Research and Decision Making• Marketing Research Defined

– The planning, collection, and analysis of data relevant to market decision making and communication of the results of this analysis to management.

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• The Importance of Marketing Research to Management– Descriptive function– Diagnostic function– Predictive function

To define marketing research.Marketing

Research and Decision Making

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– Paramount importance of existing customers• Customer retention • Marketing research

– Used to understand customers’ needs and to satisfy those needs

– Leads to customer satisfaction

– Understand the ever-changing market place

To define marketing research.Marketing

Research and Decision Making

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To understand the importance of marketing researching shaping

marketing decision.

• Proactive Role of Marketing Research– Proactive management:

• alters the marketing mix to fit newly emerging patterns in economic, social, and competitive environments

• new opportunities• develops a long-run marketing strategy

– Proactive manager– Proactive marketing strategic plan

Marketing Research and

Decision Making

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To understand the importance of marketing research.

• Applied Research versus Basic Research– Applied research

• To better understand the market.Basic research

• To expand the frontiers of knowledge.• Nature of Applied Research

– Programmatic research– Selective research– Evaluative research

Marketing Research and

Decision Making

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To learn when marketing research should and should not be conducted.

Decision to Conduct

Marketing Research• Decision to Conduct Marketing Research

– Reasons not to conduct marketing research• Resources are lacking• Research results would not be useful• Opportunity has passed• The decision has already been made• Managers cannot agree on what they need to know• Decision-making information already exists• The costs of conducting research outweigh the

benefits

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• Impact of the Internet• Growth Drivers of the Internet

– Provides more rapid access– Improves response time to customer needs– Increases follow-up studies and longitudinal

research– Creates cost cutting opportunities

Profound Impact of the Internet on

Marketing ResearchTo learn how the Internet is

changing marketing research

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• Internet Surveys Have Several Specific Advantages– Rapid development, real-time reporting– Dramatically reduced costs– Personalization– Higher response rates– Ability to contact the hard-to-reach

To learn how the Internet is changing marketing research

Profound Impact of the Internet on

Marketing Research

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• Internet Enhances the Research Process and Dissemination of Information– Virtually replacement of printed material– Distributions of request for proposals (RFPs)

and the proposals themselves– Collaboration between effected parties– Data management and online analysis– Publishing and distribution of reports– Online presentation

To learn how the Internet is changing marketing research

Profound Impact of the Internet on

Marketing Research

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The End

Copyright © 2006 John Wiley & Sons, Inc.