detailed introduction to marketing research unit 1

MARKETING RESEARCH

INTRODUCTION

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• MARKETING IS THE PROCESS OF PLANNING AND EXECUTING THE

CONCEPTION, PRICING, PROMOTION, AND DISTRIBUTION OF IDEAS,

GOODS, AND SERVICES TO CREATE EXCHANGES THAT SATISFY

INDIVIDUAL OR ORGANIZATIONAL ACTIVITIES

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• MARKETING CONCEPT REQUIRES THAT CUSTOMER SATISFACTION

RATHER THAN PROFIT MAXIMIZATION BE THE GOAL OF AN

ORGANIZATION

• CUSTOMERS’ REQUIREMENTS SHOULD BE SATISFIED QUICKLY AND

EFFICIENTLY

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• RESEARCH ORGANIZATION SHOULD OBTAIN INFORMATION ON

CONSUMER NEEDS AND GATHER MARKETING INTELLIGENCE

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• MARKETING RESEARCH IS A CRITICAL PART OF A MARKETING

INTELLIGENCE SYSTEM; IMPROVE MANAGEMENT DECISION MAKING

BY PROVIDING RELEVANT, ACCURATE, AND TIMELY (RAT)

INFORMATION

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MINUTE MAID’S MARKET RESEARCH

ORANGE JUICE IS MORE THAN A BREAKFAST BEVERAGE

7 OUT OF 20 GLASSES CONSUMED BEFORE LUNCH

ADVT. $ 35 MN TO $ 45 MN. IN TWO YEARS

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MINUTE MAID’S MARKET RESEARCH

24% MARKET SHARE; 35% MARKET SHARE OF TROPICANA

47% MARKET SHARE OF ITS FROZEN JUICE SEGMENT; TROPICANA

5%

BUT IT IS SHRINKING – MORE TIME CONSUMING TO USE

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ROLE OF MARKETING RESEARCH IN MANAGERIAL DECISION MAKING

• MARKETING DECISIONS INVOLVE:

- SHIFTS IN THE POSITIONING OF A BUSINESS

- DECISION TO ENTER NEW MARKET

- HOW BEST TO STOCK A GROCERY SHELF

THIS IS KNOWN AS MARKET PLANNING PROCESS, WHICH HAS FOUR

STAGES

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SITUATION ANALYSIS

STRATEGY DEVELOPMENT

MARKETING PROGRAM DEVELOPMENT

IMPLEMENTATION

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SITUATION ANALYSIS

• UNDERSTAND THE ENVIRONMENT AND THE MARKET

• IDENTIFY THREATS AND OPPORTUNITIES

• ASSESS THE COMPETITIVE POSITION

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• DEFINE THE BUSINESS SCOPE AND SERVED MARKET SEGMENTS

• ESTABLISH COMPETITIVE ADVANTAGES

• SET PERFORMANCE OBJECTIVES

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MARKETING PROGRAM DEVELOPMENT

• PRODUCT AND CHANNEL DECISION

• COMMUNICATION DECISIONS

• PRICING

• PERSONAL SELLING DECISIONS

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IMPLEMENTATION

• PERFORMANCE MONITORING

• REFINING STRATEGIES AND PROGRAM

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SITUATION ANALYSIS

• EFFECTIVE MARKETING STRATEGIES ARE BUILT ON AN IN-DEPTH

UNDERSTANDING OF THE MARKET ENVIRONMENT OF THE BUSINESS,

AND THE SPECIFIC CHARACTERISTICS OF THE MARKET

• MACRO-ENVIRONMENT INCLUDES POLITICAL AND REGULATORY

TRENDS, ECONOMIC AND SOCIAL TRENDS, AND TECHNOLOGICAL

TRENDS

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SCOPE OF SITUATIONAL ASSESSMENT FOR A CONSUMER GOODS

MANUFACTURER

• MARKET ENVIRONMENT:

A) TECHNOLOGIES? HOW ELSE WILL CUSTOMERS SATISFY THEIR

NEEDS?

B) ECONOMIC TRENDS? DISPOSABLE INCOME?

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MANUFACTURER

MARKET ENVIRONMENT:

C) SOCIAL TRENDS? AGE, MARITAL STATUS, WORKING WOMEN,

OCCUPATION, LOCATION – IS IT AWAY FROM THE CITY? WHAT

VALUES ARE BECOMING FASHIONABLE?

D) POLITICAL AND REGULATORY? NEW LABELING AND SAFETY

REQUIREMENTS.

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MANUFACTURER

• MARKET CHARACTERISTICS:

A) MARKET SIZE, POTENTIAL, AND GROWTH RATE?

B) GEOGRAPHIC DISPERSION OF CUSTOMERS?

C) SEGMENTATION: HOE MANY DISTINCT GROUPS ARE THERE? WHICH

ARE GROWING?

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MANUFACTURER


D) COMPETITION? WHO ARE THE DIRECT RIVALS? WOW BIG ARE

THEY? WHAT IS THEIR PERFORMANCE? WHAT IS THEIR STRATEGY

INTENTIONS, AND LIKELY BEHAVIOUR WITH RESPECT TO PRODUCT

LAUNCHES, PROMOTIONS AND THE LIKE?

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MANUFACTURER


E) COMPETITIVE PRODUCTS? THEIR NATURE AND NUMBER

F) CHANNEL MEMBERS? WHAT IS THE DISTRIBUTION OF SALES

THROUGH SUPERMARKETS AND OTHER OUTLETS? WHAT ARE THE

TRENDS? WHAT ARE THEY DOING TO SUPPORT THEIR OWN BRANDS?

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MANUFACTURER

• CONSUMER BEHAVIOUR:

A) WHAT DO THEY BUT? A PRODUCT OR SERVICE? A CONVENIENCE,

SHOPPING, OR SPECIALTY GOOD? A SATISFACTION ….?

B) WHO BUYS? EVERYBODY? WOMEN ONLY? TEENAGERS (

DEMOGRAPHIC, GEOGRAPHIC,

PSYCHOGRAPHIC CLASSIFICATION)?

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MANUFACTURER


C) WHERE DO THEY BUY? WILL THEY SHOP AROUND OR NOT?

OUTLET TYPES?

D) WHY DO THEY BUY? MOTIVATIONS, PERCEPTIONS OF PRODUCT

AND NEEDS, INFLUENCE OF PEERS, PRESTIGE, INFLUENCE OF

ADVERTISING, MEDIA?

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MANUFACTURER


E) HOW DO THEY BUY? ON IMPULSE, BY SHOPPING (PROCESS THEY

GO THROUGH IN PURCHASING)

F) WHEN DO THEY BUY? ONCE A WEEK? EVERYDAY? SEASONAL

CHANGES?

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MANUFACTURER


G) ANTICIPATED CHANGES? INCIDENCE OF NEW PRODUCTS, SHIFTS

IN CONSUMERS’ PREFERENCES, NEEDS?

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• MARKETING RESEARCH SHOULD FOCUS ON THE FOLLOWING:

A) WHAT BUSINESS SHOULD WE BE IN?

B) HOW WILL WE COMPETE?

C) WHAT ARE THE OBJECTIVES FOR THE BUSINESS?

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• ABOUT DIFFERENTIATION, MARKETING RESEARCH SHOULD ANSWER:

1. WHAT ARE THE ATTRIBUTES OF THE PRODUCT OR SERVICE THAT

CREATE VALUE FOR THE CUSTOMER?

2. WHICH ATTRIBUTES ARE MOST IMPORTANT?

3. HOW DO WE COMPARE TO THE COMPETITION?

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• DEVELOPING THE MARKETING PROGRAM – REPRESENTATIVE

DECISIONS THAT DRAW ON MARKETING RESEARCH

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1. SEGMENTATION DECISIONS

• WHICH SEGMENT SHOULD BE THE TARGET?

• WHAT BENEFITS ARE MOST IMPORTANT FOR EACH SEGMENT?

• WHICH GEOGRAPHIC AREA SHOULD BE ENTERED?

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2. PRODUCT DECISIONS

• WHAT PRODUCT FEATURES SHOULD BE INCLUDED?

• HOW SHOULD THE PRODUCT BE POSITIONED?

• WHAT TYPE OF PACKING IS PREFERRED BY THE CUSTOMERS?

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3. DISTRIBUTION DECISIONS

• WHAT TYPE OF RETAILERS SHOULD BE USED?

• WHAT SHOULD BE THE MARKUP POLICY?

• SHOULD A FEW OUTLETS BE EMPLOYED OR MANY?

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4. ADVERTISING AND PROMOTION DECISIONS

• WHAT APPEALS SHOULD BE USED IN THE ADVERTISING?

• IN WHICH VEHICLES SHOULD THE ADVERTISING BE PLACED?

• WHAT SHOULD BE THE BUDGET?

• WHAT SALES PROMOTION SHOULD BE USED, AND WHEN SHOULD IT BE

SCHEDULED?

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5. PERSONAL SELLING DECISIONS

• WHAT CUSTOMER TYPES HAVE THE MOST POTENTIAL?

• HOW MANY SALESPEOPLE ARE NEEDED?

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6. PRICE DECISIONS

• WHAT PRICE LEVEL SHOULD BE CHANGED?

• WHAT SALES SHOULD BE OFFERED DURING THE PAST?

• WHAT RESPONSE SHOULD BE MADE TO COMPETITOR’S PRICE?

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7. BRANDING DECISIONS

• WHAT SHOULD BE THE NAME, SYMBOL, LOGO, AND SLOGAN THAT

WILL BE ASSOCIATED WITH THE PRODUCT?

• WHAT IS THE POSITION THAT THE BRAND SHOULD ADOPT VIS-À-VIS

COMPETITOR

• HOW CAN BRAND LOYALTY BE INVREASED?

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IMPLEMENTATION

• HERE THE FOCUS OF MARKETING RESEARCH SHIFTS TO QUESTIONS

SUCH AS:

• DID THE ELEMENTS OF THE MARKETING PROGRAM ACHIEVE THEIR

OBJECTIVES?

- HOW DID SALES COMPARE WITH OBJECTIVES?

- IN WHAT AREAS WERE SALES DISAPPOINTING? WHY?

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IMPLEMENTATION

- WERE THE ADVERTISING OBJECTIVES MET?

- DID THE PRODUCT ACHIEVE ITS DISTRIBUTION OBJECTIVES?

- ARE ANY SUPERMARKETS DISCONTINUING THE PRODUCT?

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IMPLEMENTATION

• SHOULD THE MARKETING PROGRAM BE CONTINUED, REVISED, OR

EXPANDED?

- ARE CUSTOMERS SATISFIED WITH THE PRODUCT?

- SHOULD THE PRODUCT BE CHANGED? MORE FEATURES BE ADDED?

- SHOULD THE ADVERTISING BUDGET BE CHANGED?

- IS THE PRICE APPROPRIATE?

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FACTORS THAT INFLUENCE MARKETING DECISIONS

• RELEVANCE – RESEARCH IS NOT FOR SATISFYING

CURIOSITY OR CONFIRM THE WISDOM OF PREVIOUS

DECISIONS

• TYPE AND NATURE OF INFORMATION SOUGHT

• TIMING

• AVAILABILITY OF RESOURCES

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ETHICS IN MARKETING RESEARCH

• ETHICS REFERS TO MORAL PRINCIPLES OR VALUES THAT GOVERN THE

CONDUCT OF INDIVIDUAL OR GROUP

• ETHICS IS APPLICABLE TO:

1. THE CLIENT WHO SPONSORS THE PROJECT

2. THE SUPPLIER WHO DESIGNS AND EXECUTE THE RESEARCH

3. THE RESPONDENT WHO PROVIDES THE INFORMATION

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•MARKETING RESEARCH IN

BUSINESS

•AN INTERESTING NOTE

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ARE U.S. CONSUMERS GLOBAL CUSTOMERS?

• A TYPICAL DAY IN THE LIFE OF AN AMERICAN:

• “HE DROVE HIS GERMAN CAR MADE OF SWEDISH STEEL AND

INTERIOR OF ARGENTINE LEATHER TO A GAS STATION, WHERE HE

FILLED UP WITH ARAB OIL SHIPPED IN A LIBERIAN TANKER AND

BOUGHT TWO FRENCH TIRES, COMPOSED OF RUBBER FROM SRI

LANKA

• AT HOME HE DROPPED HIS MOROCCAN BRIEFCASE, HUNG UP HIS

SCOTTISH TWEED COAT,

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REMOVED HIS ITALIAN SHOES AND EGYPTIAN COTTON SHIRT, THEN

DONNED A HONG KONG ROBE AND MATCHING SLIPPERS FROM

TAIWAN.

MORE COMFORTABLE NOW, HE POURED A CUP OF HOT BRAZILIAN

COFFEE INTO AN ENGLISH COFFEE MUG, SET MEXICAN PLACEMAT ON

AN IRISH LINEN TABLECLOTH ATOP A DANISH TABLE VARNISHED WITH

LINSEED OIL FROM INDIA.

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THEN HE FILLED HIS AUSTRIAN PIPE WITH TURKISH TOBACCO, LIT IT, AND

PICKED UP JAPANESE BALL POINT PEN WITH WHICH HE WROTE A

LETTER TO HIS CONGRESSMAN DEMANDING TO KNOW WHY THE

UNITED STATES HAS AN UNFAVOURABLE BALANCE OF TRADE.”

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ASSIGNMENT 1 (MR)

• MOST COMPANIES HAVE ENTIRE MARKETING RESEARCH STUDIES, OR

PART OF IT, SUCH AS INTERVIEWING, DONE BY OUTSIDE SUPPLIERS.

• WHAT FACTORS WILL DETERMINE WHETHER A FIRM DECIDES TO

‘MAKE VS BUY’ – THAT IS, TO CONTRACT OUT MOST OR ALL OF A

STUDY OR CONDUCT IT THEMSELVES

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ASSIGNMENT 2 (CB)

• MOST CELEBRITIES ACT IN THE CAPACITY OF PERSUASIVE ROLE

MODELS AND, THAT TOO, THEY USUALLY APPEAR IN TELEVISION

COMMERCIALS

• DISCUSS THE EFFECTIVENESS OF DEPLOYING A CELEBRITY SUCH AS A

POPULAR ACTOR OR SPORTSPERSON AS ITS AMBASSADOR

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detailed introduction to marketing research unit 1

Marketing