Introduction To Marketing Research PDF

Introduction to Marketing Research 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...

Introduction to Marketing Research 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 target markets. Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved What is a 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. We cannot use just any strategy, We have to develop the “right” strategy What is the market, and how do we segment it? What are the wants and needs of each segment, and what is the size of each segment? Who are our competitors, and how are they already meeting the wants and needs of consumers? Which segment(s) should we target? Which product or service will best suit the target market? What is the best price? Which promotional method will be the most efficient? How should we distribute the product/service? Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved What is Marketing Research? Marketing research is the process of designing, gathering, analyzing, and reporting information that may be used to solve a specific marketing problem. Marketing research provides managers with new information to help them make decisions. Marketing research is the process of gathering information to make better decisions. Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Why do we need Marketing Research? Continuously changing world economy Political revolutions Businesses must anticipate what these changes will mean for their markets and capitalize on economic growth where it is occurring. Managers must determine: ○ what products to make or what services to offer ○ which methods of advertising are most effective ○ which prices will help their firm realize its target return on investment (ROI) ○ which distribution system will add the greatest value to the supply chain. Marketing or Market Research? Marketing research: a process used by businesses to collect, analyze, and interpret information used to make sound business decisions and successfully manage the business Market research: a process used to define the size, location, and/or makeup of the market for a product or service Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Marketing Research Function Marketing research links the consumer to the marketer by providing information that can be used in making marketing decisions. Creating that link to the consumer through marketing research is crucial. Thanks to globalization, online shopping, and social media, consumers today have more choices, more information, and more power to speak to others in the market than ever before. Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Uses of Marketing Research Identify marketing opportunities and problems Generate, refine, and evaluate potential marketing actions Monitor marketing performance Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Identifying Market Opportunities and Problems Some marketing research studies are designed to find out what consumers’ problems are and to assess the suitability of different proposed methods of resolving those problems. Examples: ○ Toyota’s Prius ○ Samsung’s thin LED TV ○ HBO Max Sometimes problems are not easily identified even when symptoms are present (market share falling, sales are down) Determining the cause of the symptoms sometimes requires research Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Generate, Refine and Evaluate Potential Marketing Actions Selecting target markets A great deal of marketing research is conducted to determine the size of various market segments. Is the segment is growing or shrinking How well competitors are fulfilling the wants and needs of that segment If research shows that a significant segment of the market has identifiable needs, then that segment is growing. If its needs are either not being met or are being met poorly by competition, this segment is an ideal market on which to focus. The company must determine how well its core competencies will allow it to satisfy that segment’s demand. Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Generate, Refine and Evaluate Potential Marketing Actions Product research The lesson of the product life cycle: Products will eventually become obsolete. Companies must have a process in place to identify and test new products. Testing may begin with idea generation and continues with concept tests that allow firms to quickly and inexpensively get consumers’ reactions to the concept of a proposed new product. Research studies are conducted on the proposed brand names and package designs of products before commercialization. Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Generate, Refine and Evaluate Potential Marketing Actions Pricing research When a revolutionary new product is created, marketers use research to determine the “value” consumers perceive in the new product. Using qualitative research in the form of asking potential buyers a series of open-ended questions Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Generate, Refine and Evaluate Potential Marketing Actions Promotion research As firms spend dollars on promotion, they want to know how effective those expenditures are for the advertising, sales force, publicity/PR, and promotional offers. Firms also conduct research on the effectiveness of different media. Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Generate, Refine and Evaluate Potential Marketing Actions Distribution Research What are the best channels to get our product to consumers? Where are the best dealers for our product, and how can we evaluate the service they provide? How satisfied are our dealers? Are our dealers motivated? Should we use multichannel distribution? How many distributors should we have? Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Monitor Marketing Performance Tracking data collected at point-of-sale terminals as consumer packages goods are scanned in grocery stores, mass-merchandisers, and convenience stores Tracking social media Tracking employee and customer satisfaction levels Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved