Principles of marketing: Lecture 12

MGT301
Principles of Marketing
Lecture­12


Summary
of  
Lecture­11


Marketing Information System (MIS)


The Marketing
Information System
Marketing
managers

Marketing Information System
Developing information

Analysis
Planning

Assessing
information
needs

Internal
records

Marketing
intelligence

Implementation

Marketing
environment
Test
markets
Marketing
channels
Competitors

Control
Distributing
information

Marketing
decision
support
analysis

Marketing
research

Marketing decisions and communication

Publics
Macroenvironment
forces

Steps..





Assessing the Marketing Information Needs
Developing the Marketing Information
Analyzing Marketing Information
Distributing and using Marketing Information 


Today’s Topics
Marketing Research


Marketing research is the planning, collection,
 and analysis of data relevant to marketing decision 
making and the communication of the results of this 
analysis to management.


The Role of Marketing Research in 
Decision Making








 Marketing Research is part of the 
Marketing Intelligence feedback 
program
 Marketing Research is the Primary 
tool for exploring new Opportunities 
in the Marketplace


The Importance of Marketing Research to 
Management
Marketing Research Plays Three Functional Roles:
Descriptive
 The gathering and presentation of statements of fact.
Diagnostic
 The explanation of data or actions.
Predictive 
 Specification of how to best take advantage of 
opportunities as they arise in the ever­changing 
marketplace.



Trends Influencing the Importance of 
Marketing Research 
The Unrelenting Drive 
for Quality and 
Customer Satisfaction

The Paramount 
Importance of 
Keeping Existing 
Customers

The Need for Managers to 
Understand the Ever­Changing 
Marketplace


The Proactive Role of Marketing Research


Understanding the nature of the marketing system is
 necessary for a successful marketing orientation.
  By having a thorough knowledge of factors that 
have an impact on the target market and the 
marketing mix, management can be proactive 
rather than reactive.


Uses & Application of Research in 
Marketing
Measurement of market potential.


Analysis of market share.



Determination of market characteristics.



Sales analysis.



Product testing.



Forecasting.



Studies of business trends.



Studies of competitors' products.


Who
Who Does
Does “Custom”
“Custom” Marketing
Marketing Research
Research

Marketing
Marketing
Research
Research
Suppliers
Suppliers

In-house
In-house research
research departments
departments
Custom
Custom research
research firms
firms
Consulting
Consulting firms
firms
Advertising
Advertising agencies
agencies
Syndicated
Syndicated services
services
Colleges
Colleges and
and universities
universities

Steps in the Marketing Research Process


1.
1. Problem
Problem Definition
Definition and
and the
the
Research
Research Objectives
Objectives
2.
2. Developing
Developing the
the Research
Research Plan
Plan

3.
3. Implementation
Implementation
4.
4. Interpretation
Interpretation and
and Reporting
Reporting
of
of Findings
Findings

Follow-up

Writing and
Presenting the
Report

Analysis of
the Data

Creation of
the Research
Design
Problem/
Opportunity
Identification &
Formulation

Collection of the
Data

Choice of Method
of Research

Selection of the
Sampling
Procedure

Step 1: 
Problem Definition and the Research 
Objectives
The research process begins with the recognition of a marketing 
problem or opportunity.

As changes occur in the firm’s external environment, marketing 
managers are faced with the questions, “Should we change 
the existing marketing mix?” and, “If so, how?”


Role of the Marketing Researcher
The first responsibility of the researcher is to work with the 
marketing manager to clearly articulate the management 
decision problems whose symptoms have been observed and 
then to define precisely the marketing research problem.


Three Key Questions to Answer at the 
Problem/Opportunity Definition Stage


Why is the
information
being
sought?

Can the question
really be
answered?

Does the
information
already
exist?


Definition of Research Objectives

These objectives are stated in terms of the precise 
information necessary to answer the marketing research 
problem/opportunity.
Objectives must be as specific and unambiguous as possible. 
The entire research effort is geared toward achieving the 
objectives.


Step­2
Developing the Research Plan


The research design is the plan to be followed to answer the 
research objectives or hypotheses.



There is no single, best research design.  Instead, the 
investigator faces an array of choices, each with certain 
advantages and disadvantages.



Research objectives guide the determination of specific 
information needs.



Research proposals outline the type of data needed and the 
research plan.


Primary data:



Secondary data


Secondary/Primary Data Balance
Primary Data

Secondary Data



Accurate

 Available



Up­to­date

 Cheap



Purpose design

 Quick