MARKETING
RESEARCH
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Introduction to Marketing
Research
2
Because Marketing Research is
part of Marketing we should
understand:
• What is marketing?
• What is the marketing concept?
• What is marketing strategy?
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What is Marketing?
• Marketing has been defined by the AMA as an
organizational function and a set of processes
for creating, communicating and delivering
value to customers and for managing
customer relationships in ways that benefit
the organization and its stakeholders.
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What is the Marketing Concept?
• The Marketing Concept is a business
philosophy that holds that the key to
achieving organizational goals consists of the
company’s being more effective than
competitors in creating, delivering, and
communicating customer value to its chosen
markets.
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What is Marketing Strategy?
• A Marketing Strategy consists of selecting a
segment of the market as the company’s
target market and designing the proper “mix”
of the product/service, price, promotion, and
distribution system to meet the wants and
needs of the consumers within the target
market.
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Learning by Doing:
Let’s Apply Marketing to
a Restaurant
• Target market segment?
• Marketing strategy
– Location?
– Menu?
– Prices?
– Type?
– Advertising?
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Restaurant Marketing Decisions
• What if you owned a restaurant located in
Austin, Texas near the University of Texas?
• What would be your marketing strategy?
• How certain are you that you made the right
decisions?
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Restaurant Marketing Decisions
• What if the restaurant was located near a
university in a foreign country like China,
Thailand, Italy, Iceland, or Peru?
• What would be your decisions?
• How certain are you that you made the right
decisions now?
• So, what’s going on? Class comments?
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Key Point
• To practice marketing; to implement the
marketing concepts; to implement marketing
strategy, managers must make decisions.
• Many decisions require additional information
and marketing research is needed in order to
supply that information.
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We need Marketing Research to:
•
•
•
•
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Make the “right” decisions to
Implement marketing
Practice the marketing concept and
Make the right decisions to select the right
marketing strategy
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What is Marketing Research?
(Burns and Bush Definition)
• Marketing research is the process of
designing, gathering, analyzing, and reporting
information that may be used to solve a
specific marketing problem.
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What is Marketing Research? AMA
definition
• Marketing research: the function that links the
consumer, customer, and public to the
marketer through information – information
used to identify and define marketing
opportunities and problems; generate, refine,
and evaluate marketing actions; monitor
marketing performance; and improve the
understanding of marketing as a process.
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Market Research vs. Marketing
Research
• Market research: the “systematic gathering,
recording, and analyzing of data with respect
to a particular market, where ‘market’ refers
to a specific group in a specific geographic
area.”
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What is the purpose of Marketing
Research?
• To link the consumer to the marketer by
providing information that can be used in
making marketing decisions
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What are the uses of
Marketing Research?
• Identify marketing opportunities and
problems
• Generate, refine, and evaluate potential
marketing actions
• Monitor marketing
performance
• Improve marketing
as a process
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Classifying Marketing Research Studies
• Identifying marketing opportunities and
problems
– Market-demand determination
– Market segments identification
– Marketing audits SWOT analysis
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Classifying Marketing Research Studies
• Generating, refining, and evaluating potential
marketing actions
– Proposed marketing-mix evaluation testing
– New-product prototype testing
– Advertising pretesting…see Insight Express
AdInsight ad pretesting…
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Classifying Marketing Research Studies
• Monitoring marketing performance
– Image analysis…bank image analysis
– Tracking studies...sales, market shares of all
brands in our category
– Customer satisfaction studies
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Classifying Marketing Research Studies
• Improving marketing as a process
– The purpose of these studies is to expand
knowledge (basic research) of marketing
as a process rather than to solve a specific
problem facing a company…How does
background music affect perceptions of
products…How preshopping information affects
product returns…Understanding cultural
differences in consumer impatience…all in
Journal of Marketing.
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The Marketing Information System
• An MIS is a structure consisting of people,
equipment, and procedures to gather, sort,
analyze, evaluate, and distribute needed,
timely, and accurate information to marketing
decision makers.
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Components of an MIS
• Internal Reports System… Accounting
information system…data from income
statement, etc.
• Marketing Intelligence System... Information
coming from outside the firm…
• Marketing Decision Support System
(DSS)…database with analytical tools
• Marketing Research System
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The Marketing Research System has
a role in MIS because…
• It gathers information not gathered by the
other MIS component subsystems.
• Marketing research studies are conducted
for a specific situation facing the company.
People Magazine study – which of three
different cover stories should we use?
• Marketing research projects unlike other
MIS components are not continuous – they
have a beginning and an end. Ad hoc
studies/Projects
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Hot Topics in Marketing Research
• Online Marketing Research
• Growing Consumer/Respondent Resentment
• Globalization
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Hot Topics – Online Marketing
Research
• Online research: the use of computer
networks, including the Internet, to assist in
any phase of the marketing research process
including development of the problem,
research design, data gathering, analysis, and
report writing and distribution.
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Hot Topics – Online Marketing
Research
• Web-based research: research that is
conducted on web applications; may use
traditional methods as well as on-line research
methods in conducting research on webbased applications… Usability studies
• On-line survey research: collection of data
using computer networks… Ordering samples
online via Survey Sampling, Inc.
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Hot Topics – Online Marketing
Research
• On-line survey research: collection of data
using computer networks… Ordering samples
online via Survey Sampling, Inc.
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Hot Topics – Growing Consumer/
Respondent Resentment
• Marketing research is invasive.
• Telemarketers and direct marketers have
abused “marketing research.”
• The government through FTC has instituted a
“Do not call” list.
• The marketing research industry is so far
excluded from the ban of the “do not call”
regulations.
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Hot Topics – Globalization
• As marketing firms spread globally, so did
marketing research firms.
• According to Jack Honomichl, 48% of U.S.
marketing research firms’ revenues were
generated outside of U.S.
• The top 25 marketing research firms in the
world earn 67% of their revenues outside
their own country.
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Innovative Online Marketing
Research Methods
“Over 80% of market researchers in Europe and
North America intend to increase their use of
online as a research channel over the next six
months.”
~ New Media Age
Article Overview
• Marketing Research: Online, on tap.
Marketing Magazine
• ROI Real-Time
Promo Magazine
• Search for Tomorrow
FastCompany Magazine
Marketing Research: Online, on tap.
Marketing Magazine
Online Panels: Pros
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•
•
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Real Time Results
Time and Money Savings
Convenient for Consumers
More Relaxed Environment
– Higher Quality
– Honest and Reasoned Responses
• Access to Target Audiences Unrestricted by
Geography
Online Panels: Cons
• Online Profile vs. General Population
• Lengthy Questionnaires  Poor Quality
• Poor Recruitment and Badly Managed Panels
 Damaged Data
• Technical Problems
• Higher Programming Costs
Online Research in Practice
ROI Real-Time
Promo Magazine
Reasons for Marketing Research
• Measure Impact of Marketing
• ROI
• More complex due to integration
• New methods developed
– Digital Promotions
Digital Promotions
•
Research Results Improves ROI
1.
2.
3.
4.
Reduces data entry costs
Improves data accuracy
Saves time
Ability to change
Data Collection
• Ability to Measure Sales & Consumer
Behavior
• Given…
– Accurate self-entered data
– Ready-for-use databases
– Immediacy of real-time results
Search for Tomorrow
FastCompany Magazine
Search for Tomorrow
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•
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Goal of Internet Marketing Research
Search-Based Ads; Google & Yahoo
Identifying Audiences, Web-surfing Habits
Effectively Displaying Ads in Relation to
User
Recap: Popular Trends in Online
Marketing Research
We Discussed the Use Of:
 Online Panels
 Online Promotions
 Search Engines
Others Trends:
 Online Surveys w/ Incentives
 Monitoring of Web-based forums
Key Points
Research is an Essential Part of Marketing.
Don’t Let Yourself or Your Company Fall
Behind.
Class Discussion
• What types of online research have you
personally participated in?
• Do you believe that some research methods are
better done in the traditional fashion? Why or
why not?
• In class, we talked about the Richness vs. Reach
Trade-Off? Which would you prefer?