Chapter 1 Marketing Research for Managerial Decision Making Copyright © 2013 by The McGraw-Hill...
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Transcript of Chapter 1 Marketing Research for Managerial Decision Making Copyright © 2013 by The McGraw-Hill...
Chapter 1
Marketing Research for Managerial Decision Making
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin
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Learning Objectives
• Describe the impact marketing research has on marketing decision making
• Demonstrate how marketing research fits into the marketing planning process
• Provide examples of marketing research studies
• Understand the scope and focus of the marketing research industry
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Learning Objectives
• Recognize ethical issues associated with marketing research
• Discuss new skills and emerging trends in marketing research
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The Growing Complexity of Marketing Research
• Technology and growth of global business are increasing the complexity of marketing research
• New data collection tools, including Twitter, clickstream tracking, and GPS, pose serious questions in regard to consumer privacy
• Current variety of available tools and techniques makes choosing a method for a particular research project increasingly challenging
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The Growing Complexity of Marketing Research
• Marketing research is a systematic process • Tasks include:– Designing methods for collecting information– Managing the information collection process– Analyzing and interpreting results– Communicating findings to decision makers
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The Role and Value of Marketing Research
• Marketing research draws heavily on the social sciences both for methods and theory
• Marketing research methods:– Are diverse– Span a wide variety of qualitative and quantitative
techniques – Borrow from disciplines such as psychology,
sociology, and anthropology
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The Role and Value of Marketing Research
• Marketing research can be applied to a wide variety of problems involving the four Ps: – Price– Place– Promotion– Product
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Marketing Research and Marketing Mix Variables
• Product - Product decisions are varied and include:– New product development and introduction– Branding– Positioning products
• Perceptual mapping: Used to picture the relative position of products on two or more product dimensions important to consumer purchase decisions
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Marketing Research and Marketing Mix Variables
• Place/Distribution - Decisions include choosing and evaluating:– Locations – Channels– Distribution partners
• Retailing research: Focus on trade area analysis, store image/perception, in-store traffic patterns, and location analysis
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Marketing Research and Marketing Mix Variables
• Behavioral targeting: Displays ads at one website based on the user’s previous surfing behavior
• Shopper marketing: Marketing to consumers based on research of the entire process consumers go through when making a purchase
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Marketing Research and Marketing Mix Variables
• Promotion - Important influences on any company’s sales– Essential that companies know how to obtain
good returns from their promotional budgets
• Most common research tasks in integrated marketing communications:– Advertising effectiveness studies– Attitudinal research– Sales tracking
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Marketing Research and Marketing Mix Variables
• Price - Pricing decisions involve:– Pricing new products– Establishing price levels in test marketing– Modifying prices for existing products
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Marketing Research and Marketing Mix Variables
• Marketing research provides answers:– How large is the demand potential within the
target market at various price levels? • What are the sales forecasts at various price levels?
– How sensitive is demand to changes in price levels?
– Are there identifiable segments that have different price sensitivities?
– Are there opportunities to offer different price lines for different target markets?
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Consumers and Markets – Segmentation Studies
• Major focuses of a marketing research project:– Creating customer profiles – Understanding behavioral characteristics
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Consumers and Markets – Segmentation Studies
• Benefit and lifestyle studies: Examine similarities and differences in consumers’ needs– Researchers use these studies to identify two or more
segments within the market for a particular company’s products
• Marketers use ethnographic research – To study consumer behavior as activities embedded in
a cultural context and laden with identity– Requires extended observation of consumers in
context
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Marketing Theory
• Important to many businesses– Can be useful in thinking business problems and
opportunities
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Types of Marketing Research Firms
• Internal or external• Custom or standardized• Brokers or facilitators
Types of Marketing Research Firms
Internal• Organizational units that
reside within a company• Benefits:
– Research method consistency– Shared information across the
company– Lower research costs– Ability to produce actionable
research results
External• Perform all aspects of the
research• Benefits:– Objective suppliers– Less subject to company politics
and regulations– Specialized talent for the same
cost – Greater flexibility in scheduling
studies and specific project requirements
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Types of Marketing Research Firms
• Customized research firms: Provide tailored services for clients
• Standardized research firms: Provide general results following a standard format so that results of a study conducted for one client can be compared to norms– Syndicated business services: Services provided
by standardized research firms that include data made or developed from a common data pool or database
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Changing Skills for a Changing Industry
• As marketing research firms expand, requirements for successfully executing marketing research projects will change
• Top five skills:– Ability to understand and interpret secondary data– Presentation skills– Foreign-language competency– Negotiation skills– Computer proficiency
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Ethics in Marketing Research Practices
• Major sources of ethical issues are the interactions among the three key groups:– Research information providers– Research information users– Respondents
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Exhibit 1.1 - Ethical Challenges in Marketing Research
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Ethical Questions in General Business Practices
• Potential ethical pitfalls for research providers:– Unethical pricing– Unnecessary or unwarranted research services– Client confidentiality issues– Use of “black-box” methodologies• Branded “black-box” methodologies: Offered by
research firms that are branded – Do not provide information about how the methodology
works
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Conducting Research Not Meeting Professional Standards
• Reasons:– Fearful of losing the business entirely– Client pressure to perform research to prove a
predetermined conclusion– Cost cutting– Interviewers working for research firms may also
engage in unethical behavior• Curbstoning: Data collection personnel filling out
surveys for fake respondents
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Abuse of Respondents
• Potential ways to abuse respondents in marketing research:– By not providing promised incentive to
respondents for completing interviews or questionnaires
– By stating that interviews are very short when in reality they may last an hour or more
– By using “fake” sponsors
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Abuse of Respondents
• At the end of any study involving deception, subjects must be “debriefed” to explain deception – Subject debriefing: Fully explaining to
respondents any deception that was used during research
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Abuse of Respondents
• Sugging/frugging: Claiming that a survey is for research purposes and then asking for a sale or donation
• De-anonymizing data: Combining different publicly available information, usually unethically, to determine consumers’ identities, especially on the Internet
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Unethical Activities of the Client/Research User
• Requesting detailed research proposals from several competing research providers with no intention of actually selecting a firm to conduct the research
• Promising a prospective research provider a long-term relationship or additional projects in order to obtain a very low price on the initial research project
• Overstating results of a marketing research project
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Unethical Activities by the Respondent
• Providing dishonest answers – Faking behavior
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Marketing Research Codes of Ethics
• Marketing Research Society summarizes the central principles in ESOMAR’s code as follows:– Conform to all national and international laws– Behave ethically – Be particularly careful with children and other
vulnerable groups– Ensure respondents are cooperating voluntarily
and are well informed of risks
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Marketing Research Codes of Ethics
– Respect rights of respondents – Protect personal data and use only for intended
purpose– Conduct projects with accuracy, transparency,
objectivity, and quality– Conform to principles of fair competition
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Emerging Trends
• Increased emphasis on secondary data collection methods
• Movement toward technology-related data management
• Expanded use of digital technology for information acquisition and retrieval
• Broader international client base• Movement beyond data analysis toward a data
interpretation/information management environment
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Marketing Research in Action:Continuing Case: The Santa Fe Grill
• What kind of information about products, services and customers should the owners of Santa Fe Grill consider collecting?
• Is a research project actually needed?– Is the best approach a survey of customers?– Should employees also be surveyed?– Why or why not?