Marketing Research
Aaker, Kumar, Leone and Day Eleventh Edition Instructors Presentation Slides
Chapter One
A Decision Making Perspective on Marketing Intelligence
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Marketing Research 11th Edition
Market Research
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Marketing Research 11th Edition
Business Intelligence
BI is the ability to access data from multiple sources within an organization and deliver it to business users for analysis It links the disparate operational systems to the end users of the data, thus creating an environment with free flow of information It offers a reliable barometer of the business performance It helps to analyze what is behind trends and anomalies in the business
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Marketing Research 11th Edition
Business Intelligence
Business Intelligence Financial Intelligence Management Intelligence Marketing Intelligence Accounting Intelligence
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Marketing Research
Customer Relationship Marketing/ Database Marketing
Primary Sources
Secondary Sources
Standardized Sources
Provide data on
Prospects
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Customers
Competition
Products/Markets
Marketing Research 11th Edition
What is Marketing Intelligence?
Market intelligence (MI) is, the process of acquiring and analyzing information in order to understand the market (both existing and potential customers); to determine the current and future needs and preferences, attitudes and behavior of the market; and to assess changes in the business environment that may affect the size and nature of the market in future.
- Cornish S. L
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Marketing Research 11th Edition
Need for Marketing Intelligence
Producers have little direct contact with consumers (geographical distance and channel layers). Channel has little knowledge about customer attitudes, preferences and changing tastes. Need to understand competition, without spying on them. Management goals involve sales targets and market share achievement. Need to identify successful new product developments early in the process to ensure growth and revenue maximization by finding a balance between costs and prices of products. The need is to look at least 5 to 10 years in advance
Pharmaceutical companies do it on a regular basis because they have to plan for what happens when a particular patent expires.
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Marketing Research 11th Edition
Domains of Marketing Intelligence
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Marketing Research 11th Edition
Marketing Research
Marketing Research, a critical part of Marketing Intelligence helps by providing accurate, relevant and timely (ART) information
Links consumer, customer, and public to the marketer through information used to: Identify and define marketing opportunity and problems Generate, redefine and evaluate marketing actions Monitor marketing performance Improve understanding of marketing as a process
(from AMAs official definition of Marketing Research)
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Marketing Research 11th Edition
Role of Marketing Research in Managerial Decision Making
Four Stages of Market Planning Process
Situation analysis Strategy development Marketing program development Implementation
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Marketing Planning Process
Situation Analysis
Understand the environment and the market Identify threats and opportunities Assess the competitive position Define the business scope and served market segments Establish competitive advantages Set performance objectives Product and channel decision Communication decisions Pricing Personal selling decisions Performance monitoring Refining strategies and program
Marketing Research 11th Edition
Strategy Development
Marketing Program Development
Implementation
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Situation Analysis
Analysis of
Market environment Market characteristics Consumer behavior
Research Approaches
Organize information obtained from prior studies (secondary) Focus groups
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Strategy Development
Market Research Provides Information to Assist Management With Three Critical Decisions:
What business should we be in? How will we compete? What are the objectives for the business?
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Marketing Program Development
Programs embrace specific tasks Action program usually focuses on a single objective in support of one element of overall business strategy
Representative Decisions that Draw on Marketing Research:
1. Segmentation decisions 2. Product decisions 3. Distribution decisions 4. Advertising and promotion decisions
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5. Personal selling decisions 6. Price decisions 7. Branding decisions 8. Customer satisfaction decisions
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Implementation
Starts with decision to proceed with a new program or strategy Set specific measurable objectives for all elements of marketing program Shift research focus to :
"Did the elements achieve their objectives?" Should the marketing program be continued, discontinued, revised or expanded?"
Factors Influencing Marketing Research Decisions
Relevance Type and Nature of Information Sought Timing Availability of Resources Cost-benefit Analysis
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Ethics in Marketing Research
Ethics of the Sponsor
Overt and covert purposes Dishonesty in dealing with suppliers Misuse of research information
Ethics of the Supplier
Violating client confidentiality Improper execution of research
Abuse of Respondents
Falsifying answers
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Conquering Latino Homes
Hispanics account for nearly 15% of the U.S. population. Research shows that Latino households contribute $600 billion of $1.3 trillion purchasing power of multicultural population. In 2003 only 5.1% of total advertising dollars in the United States was focused on Latinos. By 2050, Hispanic population would represent 25% of US population. What do you think the problem is?
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P&G Luring Women with their Feminine Toothpaste
P&G has came out with Rejuvenating Effects a gender specific toothpaste targeting the female customers, who do 82% of the grocery shopping. The flavor and package of the product was decided on the basis of the results from a customer survey filled out by women. Though the product is priced slightly higher than the other brands P&G hopes to make women think about the toothpaste in the same light as skin care lotions and shampoo.
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Harley Davidson Exploring New Markets
Problem: Flat domestic scales Solution:
In 1999, Harley-Davidson started a rental program which provided a way to hook customers on riding and thereby entice them into buying a motorcycle. 40 percent of those enrolled in the program were female and about 30 percent were under the age of 35
Result:
Motorcycles rented went up from 401 days in 1999 to a total of 224,134 days worldwide in 2004. 32 percent of rental customers surveyed bought a bike or placed an order after renting, another 37 percent were planning to buy one within a year. Nearly half of the renters spent more than $100 on Harley-Davidson accessories, such as T-shirts and gloves.
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End of Chapter One
