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Ch apte r One

Intr odu cti on to Mar keting Res ear ch


Figure 1.1 Introduction to Marketing Research: An Overview

Opening Vignette
Experiential Learning

Definition of Marketing Research

What Would You Do?


Fig.
1.2
A Classification of Marketing Research

Fig
1.3
Marketing Research Process
Be an MR!

Fig
1.4
The Role of Marketing Research in Decision Making

Fig
1.5 The Information Value Chain for Marketing Research
Be a DM!

Fig
1.6

Application to Contemporary Issues


International Technology Ethics
Figure 1.1 Introduction to Marketing Research: An Overview (cont.)

Opening Vignette
Experiential Learning

Marketing Research Industry

What Would You Do?


Fig Table
1.7 1.1
Selecting a Research Supplier

Careers in Marketing Research


Be an MR!

The Role of Marketing Research in MIS and DSS


Be a DM!

Fig. 1.8 and 1.9

Application to Contemporary Issues


International Technology Ethics
Definition of Marketing Research
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.
Figure 1.2 Defining Marketing Research
Identification of
Information
Needed
Identifying and
Solving Marketing
Collection of Problems
Data

Analysis of
Data

Dissemination of
Information

Use of
Information
Market Research
• Specifies the information necessary to address
these issues

• Manages and implements the data collection


process

• Analyzes the results

• Communicates the findings and their implications


Classification of Marketing Research
Problem Identification Research
• Research undertaken to help identify problems which
are not necessarily apparent on the surface and yet
exist or are 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 marketing
problems. Examples: segmentation, product, pricing,
promotion, and distribution research.
Figure 1.3 A Classification of Marketing Research

Marketing
Research
Problem Problem
Identificatio Solving
n Research Research

• Market Potential Research


• Market Share Research • Segmentation
• Image Research Research
• Market Characteristics
• Product Research
Research • Pricing Research
• Forecasting Research
• Business Trends • Promotion Research
Research • Distribution Research
Table 1.1

Problem Solving Research

SEGMENTATION RESEARCH

 Determine the basis of segmentation


 Establish market potential and
PRODUCT RESEARCH
responsiveness for various  Test concept
segments
 Determine optimal product
 Select target markets
design
 Create lifestyle profiles:
 Package tests
demography, media, and
product image characteristics  Product modification
 Brand positioning and
repositioning
 Test marketing
 Control score tests
Table 1.1 (cont.)

Problem Solving Research


PROMOTIONAL RESEARCH
 Optimal promotional budget
 Sales promotion relationship
 Optimal promotional mix
 Copy decisions
 Media decisions
 Creative advertising testing
 Evaluation of advertising effectiveness
PRICING RESEARCH
 Claim substantiation
 Pricing policies
 Importance of price in brand selection
 Product line pricing
 Price elasticity of demand
 Initiating and responding to price changes
Problem Solving Research
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
Segmentation Research
- determine basis of segmentation
- establish market potential and responsiveness for various segments
- select target markets and create lifestyle profiles for demography,
media, and product image characteristics

Product Research
- test concept
- determine optimal product design
- package tests
- product modification
- brand positioning and repositioning
- test marketing
- control store tests
Problem Solving Research (Cont.)

Pricing Research

- importance of price in brand selection


- pricing policies
- product line pricing
- price elasticity of demand
- initiating and responding to price changes
Problem Solving Research (Cont.)

• Promotional Research
- optimal promotional budget
- sales promotion relationship
- optimal promotional mix
- copy decisions
- media decisions
- creative advertising testing
- claim substantiation
- evaluation of advertising effectiveness
Problem Solving Research (Cont.)

Distribution Research
- determine type of distribution
- attitudes of channel members
- intensity of wholesale and retail coverage
- channel margins
- location of retail and wholesale outlets
Figure 1.4 The Marketing Research Process

Step 1: Defining the Problem

Step 2: Developing an Approach to the Problem

Step 3: Formulating a Research Design

Step 4: Doing Field Work or Collecting Data

Step 5: Preparing and Analyzing Data

Step 6: Preparing and Presenting the Report


Figure 1.5 The Role of Marketing Research in Marketing Decision Making

Customer Groups
• Consumers Controllable
Uncontrollable • Employees Marketing
Environmental • Channel Members Variables
Factors • Suppliers
• Economy • Product
• Technology • Pricing
• Competition • Promotion
• Laws and • Distribution
Regulation
• Social and Marketing
Cultural Factors
• Political Factors Research

Assessing Marketing Providing


Information Decision Information
Needs Making

Marketing Managers
• Market Segmentation • Marketing Programs
• Target Market Selection • Performance and
Control
Figure 1.6 The Information Value Chain

The Information Value


Chain
Data Information Knowledge Decision Implementing
Data with structure Information endowed Making Action
with meaning Processes Expertise
Outcomes in measurement
Figure 1.7 Marketing Research Industry: Supplier and Services

Research
Suppliers

Internal External

Full Service

Limited Service

Syndicated
Services Internet
Services
Customized Field Services Other Services
Services
Marketing Research Suppliers & Services
• Internal suppliers
• External suppliers
– Full-service suppliers
• Syndicated services
• Standardized services
• Customized services
• Internet services
– Limited-service suppliers
• Field services
• Coding and data entry services
• Analytical services
• Data analysis services
• Branded marketing research products
Criteria for Selecting a Research Supplier
 What is the reputation of the supplier?
 Do they complete projects on schedule?
 Are they known for maintaining ethical standards?
 Are they flexible?
 Are their research projects of high quality?
 What kind and how much experience does the supplier
have? Has the firm had experience with projects similar
to this one?
 Do the supplier's personnel have both technical and
non-technical expertise?
 Can they communicate well with the client?

Competitive bids should be obtained and compared on


the basis of quality as well as price.
Careers in Marketing Research
• Career opportunities are available with marketing
research firms (e.g., AC Nielsen, Burke, Inc., M/A/R/C)
• Careers in business and non-business firms and
agencies with in-house marketing research departments
(e.g., Procter & Gamble, Coca-Cola, AT & T, the Federal
Trade Commission, United States Census Bureau)
• Advertising agencies (e.g., BBDO International, Ogilvy &
Mather, J. Walter Thompson, Young & Rubicam)
• Positions: vice president of marketing research, research
director, assistant director of research, project manager,
field work director, statistician/data processing specialist,
senior analyst, analyst, junior analyst, and operational
supervisor.
Selected Marketing Research Career Descriptions

Research Director
Vice President of Marketing
Research • Also part of senior

• Part of company’s top management

management team • Heads the development

• Directs company’s entire market and execution of all

research operation research projects

• Sets the goals & objectives of the


marketing research department Assistant Director of Research
•Administrative assistant to director
•Supervises research staff members

Senior Project Manager


• Responsible for design, implementation, &
research projects
Selected Marketing Research Career Descriptions

Senior Analyst
• Participates in the development of projects
• Carries out execution of assigned projects
• Coordinates the efforts of analyst, junior analyst, & other personnel in the
development of research design and data collection
• Prepares final report

Analyst Statistician/Data Processing


• Handles details in execution of • Serves as expert on theory and
project application on statistical techniques
• Designs & pretests questionnaires • Oversees experimental design, data
• Conducts preliminary analysis of processing, and analysis
data

Junior Analyst Fieldwork Director


• Secondary data analysis • Handles selection, training,
• Edits and codes questionnaires supervision, and evaluation of
• Conducts preliminary analysis of data interviewers and field workers
Preparation for a Career in Marketing Research

• Take all the marketing courses you can.


• Take courses in statistics and quantitative methods.
• Acquire Internet and computer skills. Knowledge of
programming languages is an added asset.
• Take courses in psychology and consumer behavior.
• Acquire effective written and verbal communication
skills.
• Think creatively. Creativity and common sense
command a premium in marketing research.
Figure 1.8 The Development of MIS and DSS

Internal
Billing, External Marketing
Production,
and Other
+ Market
Information
= Information
Systems
Records

Decision
Support
Systems

Expert Systems
Figure 1.9 Marketing Information Systems (MIS)
vs.
Decision Support Systems (DSS)

MIS DSS
• Structured problems • Unstructured problems
• Use of reports • Use of models
• Information • Adaptability
displaying restricted
• Can improve • Can improve decision
decision making by making by using “what
clarifying new data if” analysis
Figure 1.10 Stakeholders in Marketing Research:
An Ethical Perspective

Client

Marketing
Public
Researcher

Respondents
Marketing Research Associations Online
Domestic
AAPOR: American Association for Public Opinion Research
(www.aapor.org)
AMA: American Marketing Association (www.ama.org)
ARF: The Advertising Research Foundation (www.amic.com/arf)
CASRO: The Council of American Survey Research Organizations
(www.casro.org)
MRA: Marketing Research Association (www.mra-net.org)
QRCA: Qualitative Research Consultants Association
(www.qrca.org)
RIC: Research Industry Coalition (www.research industry.org)

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