Lecture Marketing research - Chapter 1: The role of Marketing research in management decision making

Chapter One

The Role of
Marketing Research
in Management
Decision Making

Copyright © 2004
John Wiley & Sons, Inc.


Learning Objectives
1. To review the marketing concept and the
marketing mix.
2. To comprehend the marketing environment
within which managers must make
decisions.
3. To define marketing research.
4. To understand the importance of marketing
research in shaping marketing decisions.
5. To learn when marketing research should and
should not be conducted.


Learning Objectives
Nature of Marketing

To review the marketing concept and
the marketing mix.

Marketing:

The process of planning and executing the conception,
pricing, promotion, and distribution of ideas, goods, and
services.
The Marketing Concept
(1) a consumer orientation
(2) a goal orientation
(3) a systems orientation


Nature of Marketing

Learning Objectives
To comprehend the marketing
environment.

The External Marketing Environment
Marketing research is the key to understanding the
environment
• provides information for altering marketing mix
• identifies new opportunities


Market Research and
Decision Making

Learning Objectives
To define marketing research.

Marketing Research Defined
The planning, collection, and analysis of data relevant to

market decision making and communication of the results of
this analysis to management.
The Importance of Marketing Research to Management
• descriptive function
• diagnostic function
• predictive function


Market Research and
Decision Making

Learning Objectives
To understand the importance of
marketing research.

The Proactive Role of Marketing Research
A proactive management:
• alters the marketing mix to fit newly
emerging patterns in economic, social,
and competitive environments
• new opportunities
• develops a long-run marketing strategy


Market Research and
Decision Making

Learning Objectives
To understand the importance of
marketing research.

Applied Research versus Basic Research
Applied research
To better understand the market.
Basic research
To expand the frontiers of knowledge.


Deciding Whether to Conduct
Market Research

Learning Objectives
To learn when marketing research
should and should not be conducted.

In a number of situations it is best not to conduct market
research.
• A Lack of Resources
• lack of funds
• insufficient funds to implement decisions from research
• Research Results Would Not Be Useful
• Clients may be hard-pressed to use the information


Deciding Whether to Conduct
Market Research

Learning Objectives
To learn when marketing research
should and should not be conducted.

Opportunity Has Passed
Marketing research should not be undertaken if the
opportunity for successful entry into a market has
passed.
The Decision Has Already Been Made
Marketing research may be used improperly.


Deciding Whether to Conduct
Market Research

Learning Objectives
To learn when marketing research
should and should not be conducted.

When Managers Cannot Agree on What They Need to
Know to Make a Decision
The wrong phenomena might be studied
When Decision-Making Already Exists
Further research may be redundant and costly
When the Costs of Conducting Research Outweigh the
Benefits
Potential new products with large profit margins may have
a greater potential


Table 1.1

The Decision Whether to Conduct Market Research

Market Size

Small Profit Margin

Small Cost likely to be
greater than benefit;
e.g., eyeglasses
replacement screw

Large Benefits likely to be
greater than costs;
e.g., Stouffers frozen entries

Large Profit Margin

Possible benefits
greater than cost;
e.g., ultra expensive
sportswear

Benefits likely to be
greater than costs;
e.g.,medical equipment


Learning Objectives
Profound Impact of the Internet

To understand the importance of
marketing research.

Advantages of Internet Surveys
Rapid Development, Real Time Reporting
Dramatically Reduced Costs
Readily Personalized
Ease and Convenience Encourage Respondent
Participation
Contact the Hard-to-Reach


Learning Objectives
Profound Impact of the Internet

To understand the importance of
marketing research.

Other Uses of the Internet by Marketing Researchers
Replacement of libraries and printed materials
Distribution of requests for proposals and proposals
Collaboration between the client and the research
supplier
Data management and on-line analysis
Oral presentations of marketing surveys


SUMMARY

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Marketing Concept
External Marketing Environment
Marketing Research Defined
Proactive Role of Marketing Research
Applied Research vs Basic Research
When Not To Conduct Research
Advantages of Internet Surveys


The End

Copyright © 2004, John Wiley & Sons, Inc.