determining when to conduct marketing research
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Determining When to Conduct Marketing Research. Time constraints Availability of data Nature of the decision Benefits versus costs. Determining When to Conduct Marketing Research. Time Constraints. Availability of Data. Nature of the Decision. Benefits vs. Costs. Is sufficient time - PowerPoint PPT PresentationTRANSCRIPT
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Determining When to Conduct Marketing Research
• Time constraints
• Availability of data
• Nature of the decision
• Benefits versus costs
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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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Value versus Costs
• Potential Value of a Marketing Research Effort Should Exceed Its Estimated Costs
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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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I don’t knowif we should
enter the Australian
Market?
Information
Reduces
Uncertainty
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Table contains alternatives, states of nature, and consequences
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Conditional Probability of Getting Each Test Market Result Given Each State of Nature
Read by Row (Zk) within Column (Sj)
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Revision of Prior Probabilities in Light of Possible Test Market Results
Sj=State of Nature; Zk=Level of Success in Test
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