Introduction to Marketing Research

1
Introduction to Marketing Research

• Marketing Problems
• Wisconsin Bell has a capacity problem
• During 10 11am and 2 3pm the long distance
  networks are stressed
• In order to shift calls to different times, the
  Product Manager decides to offer customers
  discounts on calls placed between 1130am
  130pm
• Will customers shift their calling patterns?

2
Introduction to Marketing Research

• Marketing Problems
• Pepsi Foods (food supplier for Pizza Hut, Taco
  Bell and Burger King) customer service ratings
  are fine (5.7 on a scale from 1 to 7), yet market
  share decreased again last quarter (down 2 more
  points)
• Why is market share decreasing?

3
Introduction to Marketing Research

• Marketing Problems
• 3M has developed a new abrasive it is a less
  intrusive alternative (it creates less of a mess)
  to sand blasting (and is more effective)
• How much will customers pay for this product?

4
Introduction to Marketing Research

• Marketing Problems
• Maytag introduces a new line of washers and
  driers
• Are customers who purchased them satisfied?

5
Introduction to Marketing Research

• How do we solve these problems?
• Hunches of Managers
• NO!
• Need objective information
• Need research
• Research Provides
• Help managers reduce decision-making risk
• Importance of Marketing Research to Management
• Descriptive describes conditions and/or
  situations
• Customer satisfaction is down
• Diagnostic diagnoses actual problems
• Why is customer satisfaction down?
• Predictive predict what is going to happen in
  the future
• If satisfaction is at 6.0 (out of 7), what are
  future sales?

6
Introduction to Marketing Research

• Marketing Research Defined
• Systematic gathering, recording, and analyzing
  data about problems related to the marketing of
  ideas, goods, and services
• Who Uses Marketing Research
• Marketing/Brand Managers
• Help position the brand with respect to
  competitors
• Advertising/Promotion Managers
• Determine the effectiveness of their campaigns
• Sales Managers
• Which reps are performing well? poorly? Why?
• Any marketing manager that needs information to
  help make better decisions

7
Introduction to Marketing Research

• Marketing Concept and Marketing Research
• Determine the marketing mix in accordance with
  the needs and wants of a set of target customers
• How does marketing research fit with the
  marketing concept?
• Helps identify target customers
• Identifies target customers needs and wants
• Predict target customers responses to marketing
  mix alternatives
• Help explain why the responses are what they are

8
Introduction to Marketing Research

• Marketing Research and Marketing Performance
• All managers are interested in results
  (performance)
• Marketing Research can be used to
• Monitor Sales
• Accounting reports come too late
• Measure market share percent of customers in
  the target market that purchase our brand
• Measure customer share percent of an individual
  customers purchases from us

9
Introduction to Marketing Research

• Marketing Research and Marketing Performance
• Marketing Research can be used to
• Assess Customer Satisfaction
• Maytag routinely performed first 100
  satisfaction studies
• Make sure to base-line results
• Need to compare to someone
• Advertising/Promotional Effectiveness
• Pre-Tests assess reactions before campaign
  starts
• ARS Persuasion System after seeing ads in a
  laboratory setting, customers are asked if they
  would choose advertised brand (Fisher Price)
• Post-tests assess the performance of a campaign
• Burke Day-after-Recall (DAR) tests
• Behavior based evaluations e-Trade looks at
  number of inquiries as a result of pop-up ads

10
Introduction to Marketing Research

• When to conduct Marketing Research?
• Should a 100K study be performed to provide
  information on a 10K decision?
• Need to assess the value of the research
• Cost of research versus perceived costs of making
  a bad decision
• Thus, when it is financially wise to do so!

11
Introduction to Marketing Research

• Who performs the research tasks?
• Primary Research Firms

12
Introduction to Marketing Research

• Who performs the research tasks?
• Secondary Research Firms