marketing research- myth
TRANSCRIPT
PresentationOf Case~
Cost - Conscious Marketing ResearchBy
Group-2
Submitted To:Submitted By:Dayalabagh Educational ManagementDepartment of Management. Arjit Parashar
The "Big decision” or “Small Decision” Myth
Why Marketing Research?Universal belief – numbers don’t lieIncrease chances of taking the right decisionIncrease confidence in your
recommendations
Manager PerceptionFinancial stakes
Cost-benefit perspective
Incremental quality and value of the information
•The cost & time, it would take to decision of market research
Manager’s CallUncertainty avoidanceBenefits of research are proportional to the
manager’s uncertainty about which way to goTactical decisions in the short run and
strategic decisions in the long run
Factors Influencing Marketing Research Decisions
Availability of DataIs the information on hand inadequate?
Do not conduct marketing research!
Conduct Marketing Research
Nature of DecisionIs the decision of considerableimportance?
Benefits vs. CostsDoes the value of the research exceed the cost?
Time ConstraintsIs sufficient time available?
Yes Yes Yes Yes
No No No No
Restaurant manager Adding a line of Mexican dishes Investing in a series of advertisementsCalled in a research professional How likely acceptance of the
repositioning strategy would be“Unless the survey found virtually no
interest in Mexican food in the area, the manager was going ahead with the decision to add the line.”
Research expenditure was unnecessary and that the money could more productively be used to ensure that the new line got the advertising to have the best chances of succeeding
3 or 4 Advertisement optionMore economic
Response to advertising can be analyzed
Defects in one or two ads can be identified
Best Timing of telecasting the advertisement
Taste PreferencesMexican Food lover age groupOwn Brand ValueMany more underlined scenariosSide effects of a bad decision
Which actions to take…..
Small DecisionsTropicana redesigned its orange juice
packaging,
dropping the iconic image of an orange skewered by a straw, it failed to adequately test for consumer reactions
with disastrous results, Sales dropped by 20 percent, and Tropicana reinstated the old package design after only a few months.
low-cost research
Quick-and-dirty study that may be worse than no research at all
Ask Questions to ManagersDo you routinely research consumer
behavior (retention, acquisition, usage) and why consumers behave that way (awareness, satisfaction, perceived quality)?
Do you also compare the decisions with your key competitor?
Do you adjust short-term tactics according to the change in your marketing-based asset?