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Chapter 1

Introduction, Evolution and Emerging Issues

Marketing ResearchText and Cases

byRajendra Nargundkar

Role of Marketing Research

1. To provide information to decision makers in the marketing department of an organization2. Types of decisions – 1. Strategic and 2. Tactical3. Strategic Decisions- Related to Segmentation of the Market, Target Market Selection, and Positioning of the Product4. Tactical decisions- Related to the 4 Ps of marketing – Product, Pricing, Promotion and Place (distribution)

Marketing Strategy

Segmentation

Target Market Selection

PositioningInformation for Marketing Decisions

Marketing Plan

Ps of Marketing

PRODUCTPRICINGPROMOTIONPLACE

Slide 1

LEVEL 1(Strategic)

LEVEL 2(Tactical)

Fig 1. The Role of Marketing Research

Slide 2 Marketing Information System

1. Information can come from multiple sources

2.Two main sources are Marketing Intelligence and Marketing Research

3.Marketing Intelligence - a continuous process, usually internally managed, based on published or otherwise available data, may be stored for future use

4.Examples of Intelligence - Industry Data, Competitor’s Announcements

5.Marketing Research - data collected for specific action or decision problem, focused, with a time and budget, done by external marketing research company or by company staff, usually with a written report and/or presentation to the study’s sponsor

Marketing Intelligence Marketing Research

Ongoing Process Project based on Information Gap

Usually done in-house Mostly outsourced to M.R. Companies

Not meant for immediate Action oriented action

General purpose Very specific answers to questions

Focus on competition, Focus on consumers, influencers,environment etc.

Table 1: Marketing Intelligence versus Marketing Research

Slide 3

Who Does The Marketing Research?

1. Professional marketing research companies like ORG-MARG, IMRB, TN Sofres Mode, Gallup MBA.

2. In-house marketing research department

3. Company staff from marketing/sales/customer service departments

Each of these has got advantages and disadvantages. What could they be?

Slide 4Typical Applications of Marketing Research

1. Segmentation Studies to identify consumer segments based on their demographic, psychographic or behavioral characteristics.

2. To evaluate specific product-markets/segments for the potential demand

3. Positioning Studies to study consumer perceptions regarding the brand being studied vis-à-vis competing brands

4. Concept Testing, or Product –related research

5. Pricing research to determine price perceptions and correct levels of prices

6. Distribution Research to determine convenience of shopping channels, availability of brands and point of purchase behaviour

7. Advertising Research to test effectiveness of ads, media etc.

This is only a broad listing of categories. Can you give some specific examples of marketing research applications ?

Slide 5When To Do Marketing Research?

1. There is an information gap

2. The cost of filling this gap is less than cost of a wrong decision

3. The research will be completed in time to help in decision-making

Limitations of Marketing Research 1. It is not fool-proof, and involves some errors associated with measurement and interpretation of findings

2. Other inputs for decision-making which should be used along with M.R. are corporate policy, marketing goals, judgement, experience, intuition, and passion

3. The results of M.R. depend on the methodology used

Slide 6Secondary and Primary Research

1. Primary research is information specifically collected for the marketing research being done.

2. Secondary research is that which is available for reference to a researcher, but collected for some other purpose (not for the current marketing research)

3. Some common sources of secondary data are newspapers, magazines, the internet, and internal or external reports compiled or published by various organizations

4. Some common forms of primary data collection are personal or telephonic interviews with customers, retailers, mail surveys of respondents, focus group discussions, etc.

Slide 7Ethical Considerations in Marketing Research

1. Like every profession, marketing research has its own ethical code of conduct

2. Information collected for research purposes should not be used out of context

3. Confidential information should be used only by M.R. agency and the client.

4. Marketing Researcher should not be biased towards any conclusions, and should report accurately the findings of the research study

5. Respondent’s right to privacy and right not to participate in a study must be respected

Slide 8

Emerging Issues

Marketing Research using the internet

1. It is possible to do online research using the internet, but its validity is not easy to establish, particularly in India

2. Online research can be done using email, HTML forms, or downloadable survey forms

3. Qualitative research can also be done through chat sessions as a substitute for focus groups. These days, voice chats are also be possible

DATA SOURCES

Company RecordsSurveysOther Sources

BUILD DATA WAREHOUSE

DATA MINING

Look for Patterns of Purchase, Behaviour, Attitudes by analysing data from WAREHOUSE

Use the mined data to design marketing or communication campaigns

Measure Results of the Campaign, and refine/repeat the process if needed

Slide 9

Fig. 2. Using Data Warehousing and Data Mining

Slide 10Data Warehousing and Data Mining

1. Data from various sources-scanners at supermarkets, surveys, billing information etc. can be stored on computer in a virtual warehouse.

2. This stored data can be examined (mined) for correlations, patterns of purchase, and used to design CRM initiatives to attract existing customers or target new customers for a given product.

3. Huge amounts of data are involved, and require hardware, specialized software, and creative and analytically skilled people to make use of it