Chapter One 09 23 2014 Marketing cross functional decision making Process of planning and executing the conception pricing promotion and distribution of ideas goods and services to create exchanges that satisfy individual and organizational objectives Marketing is the activity set of institutions and processes for creating communication delivering and exchanging offerings that have value for customers clients partners and society at large The Marketing Concept A business philosophy Satisfy the consumer and earn a long term relationship 1 Consumer Orientation 2 Cross functional Orientation 3 Goal Orientation Marketing Research a means to implement the marketing concept Planning collection and analysis of data relevant to marketing decision making and the communication of the results of this analysis to management Three Roles of Marketing Research o 1 Descriptive Role gathering statements of facts o 2 Diagnostic Explanatory Role explaining effects of marketing mix actions or data o 3 Predictive Role predicting the results of a planned marketing decision Two Types of Research o 1 Applied Research conducted when a decision must be made about a specific pragmatic problem Almost all marketing research studies conducted by businesses o 2 Basic or Pure Research attempts to expand the limits of knowledge rather than solving a pragmatic problem Value of Marketing Research o Decreased uncertainty o Increased likelihood of a correct decision o Improved marketing performance and resulting higher profits Costs of Marketing Research o Research expenditures Four Questions to Answer When to Conduct Market Research o Time Constraint is time available o Availability of Data is the data at hand inadequate o Nature of the Decision is it important o Benefits v Costs Unanimous Yes Conduct market research Any No s Do not conduct market research Chapter Three 09 23 2014 Major Steps in the Marketing Research Process 1 Identification of the problem An easy mistake a symptom is not the problem A symptom occurs as a result of a problem The Iceberg Principle After finding the symptom analyze the situation situation analysis before formulating the CORRECT research problem 1 Understand the decision makers objectives and constraints What causes you to notice the problem symptom What factors do you think have created this situation What are the key decisions you are trying to make What actions will you take depending upon the gathered information Find out the research constraints i e time costs etc 2 Understand the decision makers environment Information related to the company s external environment i e the industry economy competition Information related to the company s internal environment i e background of the company its organization its products target market promotion 3 Understand how the symptom occurs of something else i e what are the causes to focus the research on o Research techniques to analyze the situation Discussions with Decision Makers Experience surveys i e interview industry experts internal or external Secondary or historic data analysis Exploratory research Use preliminary research techniques Define the problem formulate 1 Management Decision Problem MDP Action Oriented Asks what the decision maker needs to do Focuses on symptoms o 2 Marketing Research Problem MRP Information Oriented Asks what information is needed Focuses on the underlying causes Three step approach to formulate the MDP and MRP 1 Broad Statement to determine the effectiveness of advertising campaign X 2 Specific Components To investigate recall measures of the new campaign To investigate overall liking of the new campaign To gather demographic information 3 Translate specific components into research questions and or hypotheses Research Questions specific components of the problem refined statements of the Not too broad or too narrow Research question may be in the form of a hypothesis unproven statement or proposition about a phenomenon of interest possible answer to the research question 2 Selection of basic research design Research Design Three Major Research Designs a master plan that specifies methods and procedures for collecting and analyzing the information needed 1 Exploratory Research Techniques if little is known about the problem o Discovery of ideas and insights NOT conclusive o Typically provides qualitative data o Information needed defined loosely o Research process flexible and unstructured and open ended o Sample is small and non representative o Does not provide conclusive evidence o Subsequent research expected o Improves efficiency of large scale descriptive causal research quantitative o Often used in Problem Definition Process 2 Descriptive Research Techniques if the problem is somewhat clear o Describe market characteristics or functions o Information need is well defined o Process is formal and structured o Sample is large and representative o Who what why when where how questions are typically answered o Conclusive nature o Assists in Decision Making 3 Causal Research Techniques if the problem is very clear o Determine cause and effect relationships o Problem clearly defined o Information needed is clearly defined o Manipulation of one or more independent variables o Controlled environment o Sample is large and representative o Conclusive nature 3 Collecting the data 4 Preparing and analyzing data 5 Preparing and resenting results Chapters 4 5 Exploratory Research 09 23 2014 Clarify concepts develop ideas discover ideas Not looking for conclusive evidence just to bring focus o Broad unstructured questions o Subjective qualitative in nature o Small samples Takes several forms o Pilot studies o Experience surveys o Secondary data analysis o Case studies Primary and Secondary data in Marketing Research Primary Data of addressing the problem at hand originated by a researcher for the specific purpose o Involves all steps of the marketing research process Secondary Data purposes other than the problem at hand data which has had already been collected for o Also called historic data Secondary Data Popularity of Secondary data in marketing research o Very Popular in syndicated research company sales data and scanner data o Main Pros Inexpensive but not always free Obtained rapidly May be hard to obtain certain information through primary data Secondary Data sources o Numerous in the digital age o Two main Secondary Data Objectives External secondary data originated inside the firm Internal secondary