The Nature of Marketing Research Marketing research is

The Nature of Marketing Research • Marketing research is one of the principal tools for answering questions because it: – Links the consumer, customer, and public to the market through information used to identify and define marketing – Generates, refines, and evaluates marketing actions – Monitors marketing performance – Underlines the understanding of marketing as a process

Marketing Research Defined The systematic and objective process of generating information for aid in making marketing decisions

The American Marketing Association Redefines Marketing Research Marketing research is the function which links the consumer, customer, and public to the marketer through used to identify and define market opportunities and problems generate, refine, and evaluate marketing performance monitor marketing performance improve understanding of marketing as a process

The Marketing Research Process • specifying what information is required; • designing the method for collecting information; • managing and implementing the collection of data; • analyzing the results; and • communicating the findings and their implications.

Information Reduces Uncertainty I don’t know if we should enter the Australian Market?

Marketing Research Types Basic research Applied research

Basic Research • Attempts to expand the limits of knowledge • Not directly involved in the solution to a pragmatic problem

Basic Research Example • Do consumers experience cognitive dissonance in low-involvement situations?

Applied Research • Conducted when a decision must be made about a specific real-life problem

Applied Research Example • Should Mc. Donalds add Italian pasta dinners to its menu? • Marketing research told Mc. Donald’s it should not? • Should Procter & Gamble add a high-priced home teeth bleaching kit to its product line? • Research showed Crest Whitestrips would sell well at a retail price of $44

Scientific Method • The analysis and interpretation of empirical evidence (facts from observation or experimentation) to confirm or disprove prior conceptions

Scientific Method is a formalized research procedures that can be characterized as logical, objective, systematic, reliable, valid, impersonal, and ongoing.

Marketing Concept • • Central idea in marketing Evolved over time Not production-oriented Marketing-oriented

Marketing Concept Consumer Oriented Long Run Profitability Cross-Functional Effort

No One Know Better than Mom !!! Does she know : How much underwear you own ? Jockey International Does ?

No One Know Better than Mom !!! Does she know : The number of ice cube you put in a glass? Coca-Cola Does ?

No One Know Better than Mom !!! Does she know : Which pretzels you usually eat first the broken ones or the whole ones? Try asking Frito-Lay

Knows • We put 3. 2 ice cubes in a glass • See 69 of its commercial everyday • Prefer cans out of vending machines to be at a temperature of 2 C

Did you know that ? 38 % North Americans would rather had a tooth pulled than take their car to a dealership for repairs

For every 10, 000 Canadians in 1992 there were 8. 13 automated teller machines while there were only 5. 26 for Americans and 3. 36 for Germans

Lever Brothers Co. uncovered the fact that 79% of women said they didn’t trust their husbands to do the laundry

NOTHING ABOUT OUR BEHAVIOR IS SACRED !!! 68% of consumers prefer their toilet paper to unwind over the spool rather than the under.

Campbell Soup gave up trying to learn our opinions about the ideal sized meatball after a series of tests showed that we prefer one so big it wouldn’t fit in the can

Our favorite toothbrush color is BLUE Only 37% of us are using one that’s more than six months old 47 % put water on brush before apply the paste 15 % put water on after the paste 24 % do both 14 % don’t wet the brush at all

Keeping Customers and Building Relationships • RELATIONSHIP MARKETING - the idea that a major goal of marketing is to build long-term relationships with the parties who contribute to the company’s success. • Marketers want customers for life. • Managing the relationships that will bring about additional exchanges

Total Quality Management • Much in common with marketing concept • Focus on integrating customer-driven quality throughout the organization. • Stresses continuous improvement

Stages in Developing and Implementing a Marketing Strategy • Identifying and evaluating opportunities • Analyzing market segments and selecting target markets • Planning and implementing a marketing mix • Analyzing market performance

Identifying and Evaluating Opportunities Examples • Mattel Toys investigates desires for play experiences • Home cooking is on the decline. Purchase of precooked home replacement meals is on the rise. • Number of investors trading stock on the Internet is growing.

Analyze Market Segments and Select Target Markets Examples • Cadillac investigates buyers’ demographic characteristics • MTV, monitoring demographic trends, learns the Hispanic audience is growing rapidly • Sears learns women, age 25 -54 with average household income of $38, 000, are core customers. Targets this market with "The Good Life at a Great Price. Guaranteed. Sears. "

• • test concept determine optimal product design package tests product modification brand positioning and repositioning test marketing control score tests • • • types of distribution attitudes of Channel members intensity of wholesale & resale coverage • • channel margins location of retail and wholesale outlets

• • • importance of price in brand selection pricing policies product line pricing price elasticity of demand initiating and responding to price changes 0. 00% APR • • optimal promotional budget sales promotion relationship optimal promotional mix copy decisions media decisions creative advertising testing claim substantiation evaluation of advertising effectiveness

Plan and Implement a Marketing Mix • Price: Safeway does a competitive pricing analysis • Distribution: Caterpillar Tractor Co. investigates dealer service program. • Product: Oreo conducts taste test, Oreo cookie vs. Chips Ahoy • Promotion: How many consumers recall the “Life Tastes Good. Coca Cola!” slogan?

Analyze Marketing Performance • This year’s market share is compared to last year’s. • Did brand image change after new advertising?

Performance-monitoring Research • Research that regularly provides feedback For evaluation And control • Indicates things are Or are not going as planned • Research may be required To explain why something “went wrong”

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 Is sufficient time available? Information already on hand inadequate? No Yes No Nature of the Decision Yes Benefits vs. Costs Is the Does the decision of Yes information Yes strategic value or tactical exceed the importance? research cost? No Do Not Conduct Marketing Research No Conduct Marketing Research

Potential Value of a Marketing Research Effort Should Exceed Its Estimated Costs Value • Decreased certainty • Increased likelihood of a correct decision • Improved marketing performance and resulting higher profits • Research expenditures • Delay of marketing decision and possible disclosure of information to rivals • Possible erroneous research results

Marketing Research in the 21 st Century • Increased globalization • Growth of the Internet and other information technologies

Global Research • Business Research is increasingly global • Market knowledge is essential • A. C. Nielsen - more that 67% international business

Global Marketing Research • General information about country economic conditions and political climate • Cultural and consumer factors • Market and competitive conditions demand estimation

The Internet is Transforming Society • • Time is collapsing. Distance is no longer an obstacle. Crossing oceans is only a mouse click away. People are connected 24 hours a day, seven days a week. • "Instantaneous" has a new meaning.

Internet Research • Seeking facts and figures about an issue • Surveys on Web sites