Marketing Research
Aaker, Kumar, Day and Leone
Tenth Edition
Instructors Presentation Slides
Chapter One
A Decision Making
Perspective on
Marketing Intelligence
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Marketing Research 10th Edition
Market Research
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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 business performance
It helps to analyze what is behind trends and anomalies in the
business
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Marketing Research 10th Edition
Business Intelligence
Business Intelligence
Financial
Intelligence
Management
Intelligence
Marketing
Intelligence
....................
Customer Relationship
Marketing/ Database Marketing
Marketing
Research
Primary Sources
Accounting
Intelligence
Secondary Sources
Standardized Sources
Provide data on
Prospects
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Customers
Competition
Products/Markets
Marketing Research 10th 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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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.
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Marketing Research 10th Edition
Domains of Marketing Intelligence
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Marketing Research 10th 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 10th Edition
10
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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11
Marketing Planning Process
Situation
Analysis
Strategy
Development
Understand the environment and the market
Identify threats and opportunities
Assess the competitive position
Define the business scope and
market segments served
Establish competitive advantages
Set performance objectives
Marketing
Program
Development
Product and channel decision
Communication decisions
Pricing
Personal selling decisions
Implementation
Performance monitoring
Refining strategies and program
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12
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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13
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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14
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:
Segmentation decisions
Personal selling decisions
Product decisions
Price decisions
Distribution decisions
Branding decisions
Advertising and promotion
decisions
Customer satisfaction decisions
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15
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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16
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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17
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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18
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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19
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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