Introduction to Marketing Research

Marketing Research: Definition and Purpose

Many definitions of Marketing Research:
Marketing research is the systematic design, collection, analysis and reporting of data and findings relevant to a specific marketing situation facing the company. [Philip Kotler} the systematic gathering, recording and analyzing of all data about problems relating to the marketing of goods and services. [The American Marketing Association]

Basic Purpose of Marketing Research

Marketing research reduces uncertainty or error in decisionmaking. The information collected by conducting marketing research is used for problem solving and decision making in various areas of marketing.

Definition of Marketing Research

Marketing research is the systematic and objective identification collection analysis dissemination and use of information For the purpose of improving decision making related to the

identification and
solution of problems and opportunities in marketing

The Role of Marketing Research

Customer Groups Consumers Employees Shareholders Suppliers Controllable Marketing Variables Product Pricing Promotion Distribution
Information Needs

Uncontrollable Environmental Factors

Marketing Research

Assessing

Providing Information

Decision Making

Marketing

Economy Technology Laws & Regulations Social & Cultural Factors Political Factors

Marketing Managers Market Segmentation Target Market Selection Marketing Programs Performance & Control

Role of Marketing Research

Can help the marketing manager to:
(1) Identify and define marketing problems and opportunities accurately; (2) Understand markets and customers and offer reliable prediction about them; (3) Develop marketing strategies and actions to provide a competitive edge; and refine and evaluate them; (4) Facilitate efficient expenditure of funds; (5) Monitor marketing performance; and (6)Improve the understanding of marketing as a process.

Is important because of Rapid changing marketing environment; Need for up-to-date information for strategically important areas; Importance of research as an integral part of better operation.

Marketing Research
Used to identify and define market opportunities and problems

Information

Generate, refine, and evaluate marketing performance

Monitor marketing performance

Improve understanding of marketing as a process

Classification of Marketing Research

Problem-Identification Research Research undertaken to help identify problems which are not necessarily apparent on the surface and yet exist or are likely to arise in the future. Examples: market potential, market share, image, market characteristics, sales analysis, forecasting, and trends research. Problem-Solving Research Research undertaken to help solve specific marketing problems. Examples: segmentation, product, pricing, promotion, and distribution research.

A Classification of Marketing Research

Marketing Research

Problem Identification Research Market Potential Research Market Share Research Market Characteristics Research Sales Analysis Research Forecasting Research Business Trends Research

Problem-Solving Research

Segmentation Research

Product Research Pricing Research Promotion Research Distribution Research

Problem-Solving Research
SEGMENTATION RESEARCH

Determine the basis of segmentation

Establish market potential and responsiveness for various segments Select target markets Create lifestyle profiles: demography, media, and product image characteristics

PRODUCT RESEARCH Test concept

Determine optimal product design

Package tests Product modification Brand positioning and repositioning Test marketing Control score tests

PRICING RESEARCH

Pricing policies
Importance of price in brand selection

Product line pricing

Price elasticity of demand

Initiating and responding to price changes

PROMOTIONAL RESEARCH Optimal promotional budget Sales promotion relationship Optimal promotional mix Copy decisions Media decisions Creative advertising testing Evaluation of advertising effectiveness Claim substantiation

DISTRIBUTION RESEARCH

Determine
Types of distribution

Attitudes of channel members

Intensity of wholesale & resale coverage Channel margins Location of retail and wholesale outlets

When Marketing Research may not be necessary

Marketing research is almost always problem-oriented. Whether to conduct marketing research depends on the managers experience and wisdom; nature of decision situation [repetitive or atypical]; degree of uncertainty; and the value and importance of the research. Marketing research may not be necessary if:
Information is available/outcomes known. Insufficient time for marketing research. Non-availability of resources. Cost Vs Value of the Research. Outcomes known.

Thank You!