MARKETING RESEARCH

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MARKETING RESEARCH
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Introduction to Marketing Research
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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 companys
  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 companys 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 Lets 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, whats 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

• 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 pretestingsee Insight Express
  AdInsight ad pretesting

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Classifying Marketing Research Studies

• Monitoring marketing performance
• Image analysisbank 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 companyHow does background music affect
  perceptions of productsHow preshopping
  information affects product returnsUnderstanding
  cultural differences in consumer impatienceall
  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
  systemdata 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 web-based 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
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• 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

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Article Overview

• Marketing Research Online, on tap.
• Marketing Magazine
• ROI Real-Time
• Promo Magazine
• Search for Tomorrow
• FastCompany Magazine

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Marketing Research Online, on tap. Marketing
Magazine
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Online Panels Pros

• 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

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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

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Online Research in Practice
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ROI Real-Time Promo Magazine
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Reasons for Marketing Research

• Measure Impact of Marketing
• ROI
• More complex due to integration
• New methods developed
• Digital Promotions

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Digital Promotions

• Research Results Improves ROI
• Reduces data entry costs
• Improves data accuracy
• Saves time
• Ability to change

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Data Collection

• Ability to Measure Sales Consumer Behavior
• Given
• Accurate self-entered data
• Ready-for-use databases
• Immediacy of real-time results

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Search for Tomorrow FastCompany Magazine
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Search for Tomorrow

• Goal of Internet Marketing Research
• Search-Based Ads Google Yahoo
• Identifying Audiences, Web-surfing Habits
• Effectively Displaying Ads in Relation to User

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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

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Key Points

• Research is an Essential Part of Marketing.
• Dont Let Yourself or Your Company Fall Behind.

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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?