Market Research Methods Lesson 1-WEB

8/8/2019 Market Research Methods Lesson 1-WEB

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Kevin Passmore


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Marketing Research Methods

Lesson One:

Introduction and Course Overview

Kevin Passmore


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Lesson Outline

THE ROLE OF MARKET RESEARCH IN

MANAGEMENT DESICISION MAKING

Nature of Marketing

Role of Market Research

Whether to Conduct Market Research


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Lesson Outline



Nature of MarketingNature of Marketing

Role of Market Research

Whether to Conduct Market Research


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THE NATUREOFMARKETING


To review the marketingconcept and the

marketing mix.

Marketing:The process of planning and executing theconception, pricing, promotion, and distribution

of ideas, goods, and services.

The Marketing Concept

(1) a consumer orientation(2) a goal orientation

(3) a systems orientation

The Role of Marketing Research inManagement Decision Making


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Marketing is the management process thatresponsible for identifying anticipating and

satisfying customer requirements profitably

Charted Institute of Marketing UK


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Marketing is the process of planning and

executing the conception pricing promotionand distribution of ideas goods and services

to create exchange and satisfy individual

and organisational objectives

American Marketing Association


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Marketing is about giving customers what

they want

Pettitt and Brassington


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The Role of Marketing Researchin Management Decision Making

To comprehend themarketing environment.

Identifying Target Markets and Researchingthe Marketing Mix: The OpportunisticNature of Marketing Research

A marketing mix:The unique blend of product/service,pricing, promotion, and distributionstrategies designed to reach a specific

target market.




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Lesson Outline



Nature of Marketing

Role of Market ResearchRole of Market Research Whether to Conduct Market Research


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To comprehend themarketing environment.

Altering the marketing mix because ofchanges:

new consumers

new businesses

different

tastes

needs

incomes

lifestyles

purchasing habits

THEEXTERNALMARKETINGENVIRONMENT

THEEXTERNALMARKETINGENVIRONMENT


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THE ROLE OFMARKETINGRESEARCH INDECISION

MAKING


MAKING

To define marketingresearch.

Marketing Research Defined

The planning, collection, and analysis of datarelevant to market decision making and

communication of the results of this analysisto management.

The Importance of Marketing Research toManagement

descriptive function diagnostic function predictive function

The Unrelenting drive for Quality and Customer

Satisfaction


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Demographics of Coupon Users

Average household size

Average age female head

Household income ($000)

Female head attended college

Average monthly grocery bill

Female head does not workoutside or works part time

3.6 3.2 3.4

43.1 45.2 41.9

$30.9 $29.1 $28.7

51% 50% 52%

$334 $292 $303

65% 61% 55%

Heavy(top 20%) Medium-Light Nonuser

Table

1

.1


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To understand theimportance of marketing

research.

The Paramount Importance of Keeping ExistingCustomers

Managers Must Understand the Ever-ChangingMarketplace

The Proactive Role of Marketing Research

A proactive management:

alters the marketing mix to fit newlyemerging patterns in economic, social,and competitive environments

new opportunities

develops a long-run marketing strategy


MAKING


MAKING


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Figure 1.1Emergent Markets



MAKING


MAKING


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Applied Research versus Basic Research

Basic research hopes to provide further

confirmation to an existing theory or to learnmore about a concept or phenomenon.

Most research undertaken by businesses is

applied research because it must be:

cost effective

of demonstrable value to the decisionmaker

To understand theimportance of marketing

research.THE ROLE OFMARKETINGRESEARCH INDECISION

MAKING


MAKING


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DECIDINGWHETHER TOCONDUCTMARKET

RESEARCH


RESEARCH

To learn when marketingresearch should andshould not be conducted.

A manager faced with several alternative

solutions to a problem should not

instinctively call for applied marketing

research.

The first decision to be made is whether to

conduct marketing research at all.

In a number of situations it is best not to

conduct market research.


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Lesson Outline



Nature of Marketing Role of Market Research

Whether to Conduct Market ResearchWhether to Conduct Market Research


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RESEARCH


RESEARCH

A Lack of Resources

Two situations:

lack of funds

insufficient funds to implementdecisions from research

Research Results Would Not Be Useful

Clients may be hard-pressed to use theinformation



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RESEARCH


RESEARCH

Poor Timing in the Marketplace

Marketing research should not be

undertaken if the opportunity forsuccessful entry into a market haspassed.

The Decision Has Already Been Made

Marketing research may be usedimproperly.



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RESEARCH

DECIDINGWHETHER TOCONDUCTMARKETRESEARCH

When Managers Cannot Agree on WhatThey Need to Know to Make a Decision

The wrong phenomena might be studied

When Decision-Making Already Exists

Further research may be redundant andcostly

When the Costs of Conducting ResearchOutweigh the Benefits

Potential new products with large profitmargins may have a greater potential



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Deciding Whether to Conduct Market ResearchTable 1.2

Cost likely to be greaterthan benefit; e.g.,

eyeglassesreplacement screw

tire valve extension

Small

DONT CONDUCTMARKETINGRESEARCH

Possible benefitsgreater than cost; e.g.,

ultraexpensiveLambeggehni-typesportswear

PERHAPSCONDUCTMARKETINGRESEARCH

Market Size Small Profit Margin Large Profit Margin


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Benefits likely to begreater than costs;e.g.,

Stouffers frozenentries

Crests tarter controltoothpastes

Large Benefits likely to begreater than costs; e.g.,

medical equipment

high-definition TV

CONDUCTMARKETINGRESEARCH

PERHAPSCONDUCTMARKETINGRESEARCH

Deciding Whether to Conduct Market ResearchTable 1.2

Market Size Small Profit Margin Large Profit Margin


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25

1. Matter matters less.

2. Distance matters less.

3. Time matters more.

4. Customization matters more.

5. People matter more.

How the information age isaffecting researchers and

decision makers:


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Ways to Use the Internet in MarketingResearch

Secondary source material Data collection

Project management

Report distribution

General communication

GOINGON- LINE

GOINGON- LINE

Major internet use


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McDonalds Case Study

New Menu & Information Launched as

Part of Ongoing Commitment to Informed

Choice


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Strategic Vision

Marketing correctly builds complete solutions


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Customer Value

Customer value =

perceived benefits perceived sacrifice

Market Research Methods Lesson 1-WEB

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