Introduction to Marketing Research Marketing Problems

Wisconsin Bell has a capacity problem During 10 – 11am and 2 – 3pm the long distance

networks are stressed In order to shift calls to different times, the Product

Manager decides to offer customers discounts on calls placed between 11:30am – 1:30pm

Will customers shift their calling patterns?

Introduction to Marketing Research Marketing Problems

Pepsi Foods (food supplier for Pizza Hut, Taco Bell and Burger King) customer service ratings are fine (5.7 on a scale from 1 to 7), yet market share decreased again last quarter (down 2 more points) Why is market share decreasing?

Introduction to Marketing Research Marketing Problems

3M has developed a new “abrasive” – it is a less intrusive alternative (it creates less of a mess) to sand blasting (and is more effective) How much will customers pay for this product?

Introduction to Marketing Research Marketing Problems

Maytag introduces a new line of washers and driers Are customers who purchased them satisfied?

Introduction to Marketing Research How do we solve these problems?

Hunches of Managers NO! Need objective information

Need research Research Provides

Help managers reduce decision-making risk Importance of Marketing Research to Management

Descriptive – describes conditions and/or situations Customer satisfaction is down

Diagnostic – diagnoses actual problems Why is customer satisfaction down?

Predictive – predict what is going to happen in the future If satisfaction is at 6.0 (out of 7), what are future sales?

Introduction to Marketing Research Marketing Research Defined

Systematic gathering, recording, and analyzing data about problems related to the marketing of ideas, goods, and services

Who Uses Marketing Research Marketing/Brand Managers

Help “position” the brand with respect to competitors Advertising/Promotion Managers

Determine the effectiveness of their campaigns Sales Managers

Which reps are performing well? poorly? Why? Any marketing manager that needs information to help

make better decisions

Introduction to Marketing Research Marketing Concept and Marketing Research

Determine the marketing mix in accordance with the needs and wants of a set of target customers

How does marketing research “fit” with the marketing concept?

Helps identify target customers Identifies target customers’ needs and wants Predict target customers’ responses to marketing mix

alternatives Help explain why the responses are what they are

Introduction to Marketing Research Marketing Research and Marketing

Performance All managers are interested in results

(performance) Marketing Research can be used to:

Monitor Sales Accounting reports come too late

Measure market share – percent of customers in the target market that purchase our brand

Measure customer share – percent of an individual customer’s purchases from us

Introduction to Marketing Research Marketing Research and Marketing Performance

Marketing Research can be used to: Assess Customer Satisfaction

Maytag routinely performed “first 100 satisfaction” studies Make sure to “base-line” results

Need to compare to someone Advertising/Promotional Effectiveness

Pre-Tests – assess reactions before campaign starts (PREDICT) ARS Persuasion System – after seeing ads in a laboratory

setting, customers are asked if they would choose advertised brand (Fisher Price)

Post-tests – assess the performance of a campaign Burke Day-after-Recall (DAR) tests Behavior based evaluations – e-Trade looks at number of

inquiries as a result of “pop-up” ads

Introduction to Marketing Research When to conduct Marketing Research?

Should a $100K study be performed to provide information on a $10K decision?

Need to assess the value of the research Cost of research versus perceived costs of making a

“bad” decision Thus, when it is financially wise to do so!

Introduction to Marketing Research

Who performs the research tasks? Primary Research Firms

Introduction to Marketing Research

Who performs the research tasks? Secondary Research

Firms