Chapter 1: Introduction to Marketing Research

Marketing
The activity, set of institutions, and processes for creating, communicating delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.
Modern Marketing
Thought holds that firms should collaborate with and learn from consumers.
Over Resent Years Marketing Thought Has evolved to a Service-Centered Views
(A) Identifies core competencies
(B) Identifies potential customers who can benefit from these core competencies
(C) Cultivates relationships with these customers by creating value that meets their specific needs
(D) Collects feedback from the market, learns from the feedback, and improves the values offered to the public
Crowdsourcing
The practice of obtaining services or ideas by asking for assistance from large groups of people, generally online communities.
Core Competencies
Specific factors or characteristics that a business sees as being key strengths for how it provides service products.
Product Orientation
oriented towards a product, “we make and sell product X” (Build it and they will come.)
Sales Orientation
“To be successful we must set high sales quotas and sell,sell, sell!”
Market Concept
A business philosophy that holds that the key to achieving organizational goals consists of the company being more effective than competitors in creating, delivering, and communicating customer value to its chosen target markets.- Philip Kotler (Apple’s organizational goal is to be better at communicating to customers that iPhones are better than Galaxy phones.)
Marketing Stragey
Consists of selecting a segment of the market as the company’s target market and designing the proper “mix” of product/ service, price, promotion, and distribution system to meet the wants and needs of the consumers within the target market.
Marketing Research
The process of designing, gathering, analyzing, and reporting information that may be used to solve a specific marketing problem.
AMA Definition of Marketing Research
The function that links the consumer, customer, and public to the marketer through information-information used to identity and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve the understanding of marketing as a process.
American Marketing Association
Marketing Research Association
Market Research (MRA)
A process used to define the size, location, and/or makeup of the market for a product or service.
Function of Marketing Research
To link the consumer to the marketer by providing information that can be used in marketing decisions.
B2C
Retail consumers
B2B
Business consumers
The AMA Definition the Different Uses of Marketing Research:
(1) Identifying market opportunities and problems
(2) Generating, refining, and evaluating potential market actions
(3) Monitoring marketing performance
Identification of Market Opportunities and Problems
Some marketing research is designed to find out what consumers’ problems are and to assess the suitability of different proposed methods of resolving those problems. (high fuel prices = Prius) Exhibit 2.5
Generating, Refining, and Evaluating Potential Marketing Actions
We think of “actions” as strategies, and strategies involve selecting a target market and designing a marketing mix to satisfy the wants and needs of that target market. [General Mills = Annie’s Organic Foods (pg 8)]
Selecting Target Markets
Not only are managers interested in knowing the size of the market segment but also they want to know if that segment is growing or shrinking and how well competitors are fulfilling the wants and needs of that segment. (Nissan = Leaf pg. 9)
Product Research
Products will die. You must have a process in place to identify and test new products. Quickly and inexpensively. (Research conducts on hybrids such as gas mileage)
Pricing Research
What a consumer will pay and pricing tactics (buy one get one)
Promotion Research
How much do you spend on advertising, sales force, publicity/PR, promotions, media form, etc.
Distribution Research
What are the best channels to get our product to consumers?
Monitoring Marketing Perfeormance
To assess performance on some variables. For example, to track how many units of these products are sold, through which chains, at what retail price, and so on.
Basic Research
Research that is conducted to expand knowledge rather than to solve a specific problem
Applied Research
Research that is conducted to solve specific problems.
Marketing Information System (MIS)
A structure consisting of people, equipment, and procedure to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers.
Internal Reports System
Gathers information generated within a firm, including orders, billing, receivables inventory levels, stockouts, and so on.
Marketing Intelligence System
Defined as a set of procedures and sources used by managers to obtain everyday information about pertinent developments in the environment. (clipping bureaus – clipping articles about a product)
Marketing Decision Support System (DSS)
Defined as collected data that may be accessed and analyzed using tools and techniques that assist managers in decision making. (sales persons complete daily activity reports)
Marketing Research Systems
Gathers information for a specific situation facing the company. Systematically and scientific. Marketing research has a beginning and an end. (What deliver system would be best for WalMart To Go.)