The Marketing Research Role in Marketing Management

Independent variables (Causes) Marketing mix (controllable) 1 Price decisions 2 Promotion decisions 3 Distribution decisions 4 Product decisions Situational Factors (uncontrollable) 1 Demand 2 Competition 3 Legal/political 4 Economic climate 5 Technological 6 Govt. regulation 7 Internal resources of the organization Dependent variables (Effects)

Behavioral Response 1 Awareness 2 Knowledge 3 Liking 4 Preference 5 Intent-to-buy 6 Purchase

Performance Measures 1 Sales 2 Market Share 3 Cost 4 Profit 5 ROI 6 Cash flow 7 Earnings / Share 8 Image

TYPES OF INFORMATION NEEDED FOR PLANNING AND CONTROL

I Situational analysis A Demand analysis 1 Buyers behavior and characteristics: a What do they buy? b Who buys? c Where do they buy? d Why do they buy? e How do they buy? f When do they buy? g How much do they buy? h How will buyers behavior and characteristics change in the future? i Are customers satisfied? At what level? j Are customers retained? At what level? 2 Market characteristics: a Market size potential b Segments c Selective demand d Future market trends

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B Competition 1 Who are competitors? 2 Competitor characteristics: a Marketing programs b Competitive behavior c Resources 3 Major strengths and weaknesses 4 Future competitive environment C General environment 1 Economic conditions and trends? 2 Government regulation and trends? 3 Pollution, safety, consumerism concerns 4 Technological trends 5 Political climate D Internal environment 1 Marketing resources / Skills 2 Production resources / Skills 3 Financial resources / Skills 4 Technological resources / Skills 5 Future trends in internal environment

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II

Marketing mix A Product 1 What product attributes/benefits are important? 2 How should the product be differentiated? 3 What segments will be attracted? 4 How important are service, warranty, and so on? 5 Is there a need for product variation/product line? 6 How important is packaging? 7 How is the product perceived relative to competitive offerings? B Place 1 What types of distributors should handle the product? 2 What are the channel attitudes and motivations for handling the product? 3 What intensity of wholesale/retail coverage is needed? 4 What margins are appropriate? 5 What forms o physical distribution are needed?

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C Price 1 What is the elasticity of demand? 2 What pricing policies are appropriate? 3 How should be product line be priced? 4 How do we establish price variations for a product? 5 How should we react to a competitive price threat? 6 How important is price to the buyer? D Promotion 1 What is the optimal promotional budget? 2 How important are sales promotion, advertising, and personal selling in stimulating demand? 3 What is the proper promotion mix? 4 How do you measure the effectiveness of the promotion tools? 5 What copy is most effective? 6 What media are most effective?

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III

Performance measures? 1 What are current sales by product line? 2 What are current market shares by product line? 3 What are current sales/market share by customer types, sales region, and so on? 4 What is our product/company image among customers, distributors, and the public? 5 What is the awareness level of our promotion? 6 What is the recall level of our brand name? 7 What percentage distributorship do we have in large retailers? Medium? Small? By geography? Customer type? 8 What percentage of the channel is selling below suggested retail price? What is the average retail price of our product? 9 What percentage of customers are satisfied? 10 What percentage of current customers are likely to repeat?

The Marketing Research Role in Marketing Management

1 Recognize a decision situation

2 Define the decision problem

3 Identify alternative courses of action

4 Evaluate the courses of action

5 Select a course of action 6 Implement and modify

The Marketing Research Role in Marketing Management

Decision-making Process Recognize a decision situation Define the decision problem Identify alternative courses of action Evaluate courses of action Select a course of action Implement and modify Marketing system Marketing mix Behavioral response

Situational factors

Performance measures

Information inputs Management experience and judgment Marketing research system

The key role of research

Product
Internal environment

Place

RESEARCH

External environment Promotion Price

The main categories of research

Strategic Tactical

Marketing research

Data bank

The two-way research process

Organisation

Quantitative - Objective Enquiries Quantitative - Subjective Information

Data source

Secondary data sources

Marketing research

Secondary information

Internal sources

External sources

Primary data sources

Marketing research

Primary information

SURVEYS Personal / Postal / Telephone Panel data / focus groups

OBSERVATION Personal

Mechanical

Survey method Personal interview

Advantages Question can be modified In-depth answers possible Much qualitative data from a small sample Flexible-can allow for reaction , visual information Observation improves accuracy Rapport leads to fewer refusals. No travel expenses, so economic if good return rate No interviewer bias Can be genuinely random Anonymous returns Can be completed at respondents leisure

Disadvantages Professional interviewers expensive Possible interviewer bias Can be slow People often not at home Invasion of privacy Disagreements can arise Non-response rate high, unless questions are short , simple and not too probing Takes longer Inflexible and no observation Higher postage rates increase costs Difficult and expensive to obtain complete, up-to-date mail lists.

Postal survey

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Telephone survey

Easy to administer Quick No travel expenses, so cheap if local and in evenings Flexible can allow for reaction and some in-depth answers Questions can be modified Some anonymity

Professional interviewers expensive Invasion of privacy Telephone charges can be high. No observation Hard to develop trust Not genuinely random-sample limited to respondents with Nonresponse rate high- engaged signal/no answer/refusals Scope and sample limited Might not be treated seriously More costly if incentives are large

Focus group

Informality and personal rapport encourages accuracy Questions can be modified Can run on a regular basis In-depth answers reliable Observations and recording of answers and reactions Visual details

Sampling methods
Sampling methods

Probability

Non-probability

Random

Stratified or multistage

Cluster

Convenience

Quota

Systematic

The chronological research process

1. Marketing dept. or manager defines background i.e. why research is necessary.

2. Research brief devised, including problem or opportunity to be analysed and clear statement of objectives.

3. Exploratory research carried out.

4. Hypothesis developed.

5. Research proposal and design prepared, including the method to be used / population to be surveyed/time-scale and costs/use of specialist agencies.

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6. Data collected prepared/supervised/verified.

7. Data analysed and evaluated-significant relationships established and inter

8. Research presented and reported, including specific data and findings / recommendations.

The marketing information system

INPUTS PROCESSING Classifying Storing Indexing Retrieving
FEEDBACK: ADJUSTING INFORMATION INTAKE

OUTPUTS Information for marketing decision making

External and internal information sources

Key elements of market selection

Segmentation Deciding on variables and determining segments

Targeting Which targets should be targeted and when?

Positioning Establish product position in consumer's minds

THE MARKETING RESEARCH ROLE IN MARKETING MANAGEMENT

Independent variables (causes)

Targeting Which targets should be targeted and when?

Positioning Establish product position in consumer's minds

The scope of buying behaviour

Marketing effort
Customers Individual buyer behaviour Organisational buying behaviour Decisionmaking units

Marketing / economic related Stimuli Social/cultural and environmental Personal and psychological Models of consumer behaviour

Reference group influences

Group influence of product class
Weak Public necessities: Clothing Strong Public luxuries: Cars Tobacco Wine

Group influence on brand type

Strong

Furniture Soaps Clocks and watches

Restaurant meals
Holidays

Private necessities: Beds Weak Detergents Breads and milk Roof insulation Soft drinks

Private necessities: Microwave ovens Video recorders Television games Instant coffee

Maslows hierarchy of needs

Origins LEARNED Stage and qualities 5.Self actualisation Self fulfillment Spiritual Creativity Development of talent Self-awareness Related products/services Education Specialist hobbies Sports

Luxury vacations
Gourmet food Long-life products

4.Self esteem Authority Status and reputation Political Prestige Self-respect Ego and confidence Peer and community respect INSTINCTIVE Promotion and achievement

Cars Housing Material goods Furniture Prestige items Books

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LEARNED

Sociological

3.Social identification Affiliation Love and sex Freedom Belonging Recognition Comparison

Cosmetics Clothing Entertainment Leisure Food and alcohol Tobacco

Psychological

2. Safety Security and stability Religion Protection Physical well-being Fair treatment Finance Safe future

Insurance Alarm systems Tyres and seatbelts Pensions Investments Medicines

Biological

INSTINCTIVE

1.Basic physiological Air Food Drink Sleep Comfort Survival

Bread Milk Beds and bedding Heating Lighting Basic garments

Maslows hierarchy applied to the marketing of biscuits

Maslows needs stage
1. Basic physiological 2. Safety 3. Social identification 4. Self -esteem 5. Self- actualisation

Message to consumer
Fills you up Pure through and through

Join the in-crowd

Special biscuit for the connoisseur Tease your taste buds with a new experience

Information processing
Stimuli

Exposure

Attention

Comprehension

Memory

Yielding/acceptance

Retention

The problem-solving process

Intensity of problem-solving

Routine

Limited

Extensive

Low

Medium

High

Involvement, price, purchase frequency, risk, information level

Problem recognition

Stimuli

Problem recognition

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Internal search for solution

Internal search for solution

Intention

Evaluation of alternative solutions

Purchase

Purchase decision

Satisfaction

Purchase act

Post-purchase evaluation

Factors influencing Organisational buying decisions

Interpersonal Relationships Conflicts Co-operation Authority Empathy Persuasiveness Organisational Prestige Goals/objectives Resources e.g. financial Decision-making units Purchasing policies Supplier Geographical location Nature of suppliers Purchasing environment Reliability Supplier interaction Information exchange Individual Age Income Education Status Personality Marketing Product quality and performance Benefits Quantity Availability Service Selling methods Distribution channels Economic Business conditions Product price Trade conditions Commercial risk Level of demand Environmental Social/cultural Laws and regulations Political decisions Competitive actions Ecological considerations

Organisational decisions

Technological Rate of change Technical features Design New product development Product complexity

The organisational buying decision process

Influencing factors Problem recognition Analysis of possible solution Information search Suppliers contacted and products sought Product solutions evaluated

Monitoring and feedback

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Suitable solutions chosen Terms negotiated

Purchase act Products and suppliers evaluated

P.E.S.T. Environmental factors

EXTERNAL ENVIRONMENT Political / Legal INTERNAL Economic ORGANIZATION ENVIRONMENT Technological Social / cultural

EXTERNAL ENVIRONMENT

PEST EXTERNAL FACTORS

Political / Legal Environment includes:
Central and local government systems; Political ideologies and pressure groups; Financing and grants; Voluntary codes of practice; Statutory legislation Consumer protection measures. Economic Environment includes: Stage of the business cycle prosperity/ recession/ depression/ recovery; Rate of inflation

Social / Cultural Environment includes: Demographic (population) and geographic trends; Socio-economic class groups; Status and background Norms and values Lifestyles and habits Peer groups and associates; Specific characteristics, e.g. language and practices
Technological Environment includes: Technology transfer Innovation Desirable effects living standards, leisure time;

Unemployment rate

Undesirable effects health hazards, unemployment, aesthetic and environmental Resource availability problems; Income levels total / disposable / discretionary Short term impact Long term application Interest rates

The competitive environment

COMPETITIVE ENVIRONMENT

Direct competition from marketers of the same products or service

Direct competition from marketers of similar products or service

ORGANIZATION

Competition from marketers of substitutable products or services

Indirect competition from marketers of all organizations for the consumers purchases

COMPETITIVE ENVIRONMENT

Forces Influencing Organizational Buying Behavior

Environmental forces
Economic Outlook: Domestic & Global Pace of Technological Change Global Trade Relations

Organizational forces Organizational Buying Behavior

Goals, Objectives and Strategies Organizational Position of Purchasing

Group forces

Roles, relative influence, and patterns of interaction of buying decision participants

Individual forces

Job Function, past experience and buying motives of individual decision participants

Strategic Priorities in Purchasing Strategic Priority

Modeling the Total Cost of Outside Purchases

Description
Developing a clear grasp of the factors that drive the cost of purchased products and services.

Creating Purchasing Strategies Tied to Corporate Goals

Conducting a rigorous analysis of the supply industry to determine how suppliers can contribute fundamental value to corporate goals. Structuring relationships with key suppliers to achieve mutual dependence and goal congruence.

Building and Sustaining Supplier Relationships

Integrating the Supply Chain

Managing purchase and flow of materials from suppliers through production and on to customers

Leveraging Supplier Innovation

Creating value by bringing suppliers directly into the new product development process

Major Elements of Organizational Buying Behavior

Evoked Set of Alternatives Individual Responsibilities Comprising the Buying Center
Environmental Constraints (Physical, Technological, Economic, Social) Organizational Requirements (Technical, Financial)

Sources of information

Evaluation Criteria

Interaction Structure

Feasible Set of Alternatives

Formation of Individual Preferences

Formation of Organizational Preferences

Organizational Choice

Drivers of Sustainable Success in Service Business

Strategic focus

Generosity

Executional Excellence

Brand Cultivation

Values Driven Leadership

Control of Destiny

Acting Small

Investment in Employee Success

Trust-based Relationships

Core Values That Sustain Service Performance

Excellence
INNOVATION

Joy

Respect Teamwork
INTEGRITY Social Profit

Strategy Connections
Continuous Change

Frequent Change Rare Change

Core Values

Unchanging

Strategy Connections
Continuous Change

Frequent Change Rare Change

Core Values

Unchanging

From Core Strategy to Total Product

Definition of Business Design of Business

Core Strategy

Integrated Substrategies
Market Offer Total Product

Design and Execution

Execution

Whole of Customers Experience with Company

Performance of Individual Activities

Model of Trust-Based Relationships

Employee Relationships Relationship Commitment Levels 1. 2. Trust of Company Perceived Fairness Partner Relationships Customer Relationships 3. 4. 5. 6. 7. Interest in Alternatives Acquiescence Cooperation Enhancement Identity Advocacy Ownership

Perceived Competence

The Zone of Tolerance Desired Service

Zone of Tolerance
Adequate Service

Investing in Employee Success

Investing in Employee Success

Strong Beginnings

Continuous Learning

Ownership Attitudes

A Service Branding Model

Companys Presented Brand

Brand Awareness

Brand Equity Customer Experience with Company Brand Meaning

Cultivating Brand Equity

Internalize the Brand

Dare to be Different

Brand Equity

Make an Emotional Connection

Determine Your Own Fame