Marketing XLRI Notes

7/25/2019 Marketing XLRI Notes

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Brief of Course Outline

Decision making will be learnt in the course Visualization is through identifying the research problem Analysis is through data collection and data analysis Solution is how the participants are translating the analysis into

decision.

Decision making will be evaluated through courseembedded Case Analysis.

Grading will be as per institute norms.

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Business Research

To provide thoroughunderstanding of the researchprocess

To provide a well-structuredmethod in carrying outresearch investigation

To familiarize with majortechnique

Objective ofcourse

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What are different examples of research?

Why should we conduct research?

Business research provides information to guidebusiness decisions

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Research

Reduces risk in decision makingLets move away from making decisions based on anecdotalevidence (i.e., information or casual observation that is notbased on facts or careful study)

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Defining Business Research

Systematic and objective process of gathering,recording, and analyzing data for aid in makingbusiness decisions (Zikmund, 2007).

Systematic enquiry that provides information toguide managerial decisions (Cooper & Schindler, 2009) .

Process of determining, acquiring, analyzing,synthesizing, and disseminating relevant business data,information, and insights to decision makers in waysthat mobilize the organization to take appropriatebusiness actions that, in turn, maximize businessperformance

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Defining Research

The function which links the consumer, thecustomer, and public to the manager throughINFORMATION .

Used to identify & defineopportunities and problems

Generate, refine, & evaluateperformance

Monitor performance

Improve understanding of process

Information

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Defining Research

Research is the systematic & objectiveidentification

collection

analysis

Dissemination &

use of information

For improving decision making related to:

Identification & Solution of problems &opportunities in business

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Few pointers about Research

Research is all about finding something, the absence of which maydistort our ability to take informed decisions (Nwokah et al., 2009).

The ability to take an informed decision is generated through asystematic study that is conducted through various interrelatedstages.

All the steps in a research are interrelated and no independentactivity is launched without considering the decisions on the previousstages.

One has to really understand that, from problem identification to

presentation of findings,every step is interlinked and interrelated .

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Research Suppliers & Services

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LIMITED SERVICE

OtherServices

Technical& AnalyticalServices

Focus Groups& QualitativeServices

FieldServices

FULL SERVICE

SyndicateServices

CustomizedServices

InternetServices

RESEARCHSUPPLIERS

EXTERNALINTERNAL


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Research

ProblemIdentification ResearchTo help identify problems which

are not necessarily apparent on the surface& yet exist or are likely to arise in the future

Market Potential Research

Market Share ResearchMarket Characteristics ResearchSales Analysis ResearchForecasting ResearchBusiness Trends Research

Segmentation Research

Product ResearchPromotion ResearchDistribution Research

A Classification of Research

ProblemSolving Research

To help solve specific problems.

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Problem-Solving Research

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Segmentation Research

Determine the basis ofsegmentation

Establish market potential &responsiveness for varioussegments

Select target markets

Create lifestyle profiles:demography, media, &product image characteristics

Product Research

Test concept

Determine optimal productdesign

Package testsProduct modification

Brand positioning &repositioning

Test marketing


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Pricing ResearchPricing policies

Importance of price in brandselection

Product line pricing

Price elasticity of demand

Initiating and responding toprice changes

0.00%

$ALE

Promotional ResearchOptimal promotional budget

Sales promotion relationship

Optimal promotional mix

Ad Copy decisions

Media decisions

Creative advertising testing

Evaluation of advertisingeffectiveness

Distribution ResearchTypes of distribution

Attitudes of channel membersIntensity of wholesale & resale coverageChannel marginsLocation of retail & wholesale outlets


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Research Process

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Steps of Research Process

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Step 1: Defining the Problem

Step 2: Developing an Approach to the Problem

Step 3: Formulating a Research Design

Step 4: Doing Field Work or Collecting Data

Step 5: Preparing and Analyzing Data

Step 6: Preparing and Presenting the Report


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Chain Restaurant Study

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He was working for a restaurantchain in town and wanted helpanalyzing the data he hadcollected while conducting amarketing research study.

One day I received a phonecall from a research analyst

who introduced himself as oneof our alumni


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When we met, he presented me with a copy ofthe questionnaire and asked how he should

analyze the data.My first question to him was .


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Rather, the goal of data analysis is to

Provide Information related to

the Problem Components

When he lookedperplexed, I explainedthat data analysis is notan independent exercise.


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I was surprised to learn that he did not have a clearunderstanding of the marketing research problem andthat a written definition did not exist. So before goingany further, I had to define the marketing researchproblem.

Once that was done, I found that much of thedata collected was not relevant to theproblem. In this sense, the whole study was a

waste of resources. A new study had to bedesigned and implemented to address theproblem defined.


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Problem Definition

The truly serious mistakes are made not as aresult of wrong answers but because of askingwrong questions

Peter Drucker

The most important step in research

Covers purpose of study, relevant backgroundinformation, information needed, and how it will beused in decision making

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Research: Stories

Failure Disney Land Europe (Paris) in 1992Coca Cola launch of new Coke in early 1980sSuccess of Starbuck in Japan in 1996

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Problem Definition Genesis

Drivers for problem formulation: Unaticipated change, basically in the environment of focal firm(suppliers, competitors, customers)

Planned change (estimation, effects, outcome)

Serendipity (random ideas or information)

Situation Narration by management

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Exercise before Problem Definition

1. Discussion with Decision maker

2. Discussion with Industry expert

3. Secondary Data

4. Qualitative Research

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Focusing on 3Cs Analysis


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Factors to be Considered inEnvironmental Context of the Problem

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Past Information & Forecasts

Resources & Constraints

Objectives

Buyer Behavior

Legal Environment

Economic Environment

Marketing & Technological Skills

Management Decision Problem(MDP)

A statement specifying the type of managerial actionrequired to solve the problem.

It asks what a decision maker needs to do. It is action oriented. It focuses on symptoms.

The problem facing the decision maker for whichthe research is intended to provide answers orinformation

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Research Problem(RP)

A statement specifying the type of information neededby the decision maker to help solve the managementdecision problem and how the information can beobtained efficiently and effectively.

It asks what information is needed & how it shouldbe obtained

Information oriented Focus on underlying cause

A statement of the decision problem into researchterms

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MDP Vs RP

MDP RP

Should a new product be To determine consumer preferencesintroduced? and purchase intentions for the

proposed new product.

Should the advertising To determine the effectivenesscampaign be changed? of the current advertising

campaign .

Should the price of the To determine the price elasticitybrand be increased? of demand and the impact on sales

and profits of various levelsof price changes.

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Problem Definition

MDP asks what Decision maker needs to do whereas,

RP asks what information is needed & how it canobtained effectively & efficiently

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Problem Definition

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Errors in Defining Problem

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CommonErrors

Problem Definition istoo Broad

Does Not Provideguidelines for SubsequentSteps

e.g., Improving the

Companys Image

Problem Definition istoo Narrow

May Miss Some ImportantComponents of the Problem

e.g. Changing Prices in

Response to a CompetitorsPrice Change.

Interest generated?

Documents

Marketing XLRI Notes