The Purpose of Marketing Research – Flashcards
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What is the purpose of marketing research? (Textbook definition)
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To use formal research and data gathering to improve the marketing function within an organization
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What is the information from marketing research used for?
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Used to identify opportunities and problems, to monitor performance, and to link marketing inputs with outputs of interest such as awareness, satisfaction, sales, share and profitability
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Marketing Research
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-the process of designing studies and gathering, analyzing and reporting information that reduces uncertainty and leads to better managerial decision-making
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Aim of Marketing
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-to get the marketing mix right -the right products, to the right people, at the right time at the right price using the right promotion techniques -many products have failed (Ex: Betamax was better than VHS in every aspect, but was not marketed well and failed
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Descriptive Role
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-Gathering statements of fact -Learn about consumers' satisfaction toward a product -Use MR to determine demographics of product owners
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Diagnostic/Exploratory Role
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-Explaining the Effects of the current marking mix and identify possible new courses of action -Ex: explain trends in satisfaction, investigate what product changes could potentially be made to better suit a target market
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Predictive Role
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-Predicting the results of a planned marketing decision -Use Mr to predict the demand for a new product -find out whether product modifications will improve consumer satisfaction
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Situational Factors
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-Uncontrollable: -Demand -Competition -Political/Legal Regulatory -Economic Climate -Technological These go into the independent variables in The Marketing System Model
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Independent Variables
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-Controllable -Pricing -Promotion -Product -Place -These factors go into the dependent variable
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Dependent Variables
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-Behavioral Response -Awareness -Knowledge -Liking -Preference -Intent to Buy -Purchase These factors go into Performance Measures
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Performance Measures
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-Sales -Market Share -Profit -ROI -Cash Flow -Earnings -Image
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When should you conduct market research?
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-Is there time? -Is data needed? -Is it important? -Do the benefits outweigh the costs? -If no, do not conduct marketing research -If yes to these questions, conduct marketing research
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Marketing Research Ethics include being responsible for...
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-Long-term interest of the organization and its employees -Long-term interest of persons affected by company activities -Values for/conditions of society at large
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Industry is sensitive to...
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-Respondent's Rights -The Right to Choose -The Right to Be Informed -The Right to Privacy
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First Step of the Marketing Research Process
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-Problem Identification -Most important part -managers tend to start with a symptom and tend to be reactionary
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Management Decision Problem
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-general -decision oriented -multifaceted -Ex: should an advertising campaign be introduced to turn around slow sales?
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Marketing Research Problem
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-specific -data-oriented -focused -Ex: Determine the potential effectiveness of a marketing campaign (are the sales coming from existing customers, penetration the market?
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The Steps of Problem Identification
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1. Recognize the management decision problem 2. State the symptoms of the problem 3. Analyze the Situation (what is the decision making environment, what factors are likely causing the symptoms, what are the potential courses of action) 4. Translate the MDP into a marketing research problem 5. State the research objectives
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Research Objectives
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-a contract essentially -determines the reach, frequency, impact -the actual things you are going to do
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Secondary data
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-already exists
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Exploratory data
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-research you going to do yourself
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The Iceberg Principle
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-what managers see -they don't see the underlying issues
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Second Step of the Marketing Research Process
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-Determine the Research Design -the research design specifies methods and procedures for collecting and analyzing the needed information
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Exploratory Research
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-what consumer needs drive purchase? -Uses: formulate problems more precisely, establish priorities for research, eliminate impractical ideas, clarify concepts -Types: Focus groups, experience surveys, interviews -are not conclusive, cannot be generalized for the population -instead, provides qualitative insights -tends to be flexible, fast, relatively cheap, and easy -unstructured data collection results in qualitative data -helps guide future research
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Descriptive Research
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-which flavor is preferred most? by whom? -Uses: describe segment characteristics, estimate proportion of people who behave a certain way, make specific predictions -Types: surveys (Cross-sectional), panels (longitudinal) -Can provide answers to who, what, when, where, why and how but cannot identify cause-and-effect -Uses large, representative samples -Uses structured data collection, resolution in quantitative data -Provides conclusive results that inform decision making
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Causal Research
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-which store layout should we adopt? -Uses: provide evidence regarding causal relationships -Types: Laboratory experiments, field experiments -Requires a controlled environment -Results may be difficult to generalize form the experimental setting
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Step Three of the Marketing Research Process
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-Design the Data Collection Model -Secondary vs. Primary Data
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Step Four of The Marketing Research Process
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-Sampling and Data Collection -A sample is a subset from a larger population -Important to have a representative sample
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Step Five of the Marketing Research Process
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-Analyze and Interpret the Data -Data entry requires data cleaning, coding, and tabulation prior to statistical tests
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Step Six of the Marketing Research Process
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-Prepare and Report the Findings -The second most important step -Will depend on the audience -Fine line between technical and too technical -Needs to be cohesive
