Introduction and Phases of Marketing Research

1. Chapter 1 Introduction and Phases of Marketing Research

2. Chapter 1 Outline 1) Definition of Marketing Research 2) The role of marketing research in marketing decision making 3) A Classification of Marketing Research 4) Marketing Research Process 5) Marketing Research Suppliers and Services 6) Careers in Marketing Research 7) Questions for Revision

3. First: Definition of Marketing Research Marketing research is the systematic and objective • identification • collection • analysis • dissemination • and use of information, For the purpose of improving decision making related to the • identification and • solution of problems and opportunities in marketing

4. Customer Groups • Consumers • Employees • Shareholders • Suppliers Uncontrollable Controllable Environmental Marketing Factors Variables Marketing • Economy • Technology • Laws & Regulations • Social & Cultural Factors • Political Factors • Product • Pricing • Promotion • Distribution Research Assessing Marketing Providing Information Decision Information Making Needs Marketing Managers • Market Segmentation • Target Market Selection • Marketing Programs • Performance & Control Second: The Role of Marketing Research in marketing decision making

5. Marketing Research Problem- Identification Research Problem-Solving Research Market Potential Research Market Share Research Market Characteristics Research Sales Analysis Research Forecasting Research Business Trends Research Segmentation Research Product Research Pricing Research Promotion Research Distribution Research Third: AClassification of Marketing Research

6. 1- Problem-Identification Research • Research undertaken to help identify problems which are not necessarily apparent on the surface and yet exist or are likely to arise in the future. • Examples: market potential, market share, brand or company image, market characteristics, sales analysis, forecasting, and trends research. • This type of research provides information about the marketing environment and helps diagnose a problem. • Example: a declining market potential indicates that the firm is likely to have a problem in achieving its growth targets. • Similarly, studying economic, social, and cultural environment may point to problems or opportunities.

7. 2- Problem-Solving Research • Research undertaken to help solve specific marketing problems. • Examples:segmentation, product, pricing, promotion, and distribution research. • The findings of this type of research are used in making decisions that will solve specific marketing problems. The two types of research go hand in hand, and a project of marketing research may combine both types of research. (Real research illustration Boeing 737) In Boeing 737 case the consumer surveys identified potential demand for smaller planes (problem identification). Subsequent product research led to the introduction of the new version of the Boeing 737, which cater to the 100-215-seat market (problem solving).

8. SEGMENTATION RESEARCH • Determine the basis of segmentation • Establish market potential and responsiveness for varioussegments • Select target markets PRODUCT RESEARCH • Test concept • Determine optimal product design • Package tests • Product modification • Brand positioning and repositioning • Test marketing • Controlled store tests Problem-Solving Research

9. PROMOTIONAL RESEARCH • Optimal promotional budget • Sales - promotion relationship • Optimal promotional mix • Copy decisions • Media decisions • Creative advertising testing • Evaluation of advertising effectiveness • Claim substantiation PRICING RESEARCH • Pricing policies • Importance of price in brand selection • Product line pricing • Price elasticity of demand • Response to price changes $ALE Problem-Solving Research

10. DISTRIBUTION RESEARCH Determine… • Types of distribution • Attitudes of channel members • Intensity of wholesale & resale coverage • Channel margins • Location of retail and wholesale outlets Problem-Solving Research

11. Fourth: Marketing Research Process Step 1: Defining the Problem Step 2: Developing an Approach to the Problem Step 3: Formulating a Research Design Step 4: Doing Field Work or Collecting Data Step 5: Preparing and Analyzing Data Step 6: Preparing and Presenting the Report

13. RESEARCH SUPPLIERS EXTERNAL INTERNAL LIMITED SERVICE FULL SERVICE Field Services Other Services Syndicated Services Internet Services Focus Groups and Qualitative Services Customized Services Standardized Services Technical and Analytical Services Fifth: Marketing Research Suppliers & Services

14. Marketing Research Suppliers & Services 1- Internal research supplier: Marketing research department located within a firm. 2- external research suppliers: outside marketing research companies hired to supply marketing research services. They constitute the marketing research industry. It includes two types of suppliers: • Full-service suppliers: companies that offer the full range of research activities from problem identification to report preparation and presentation. • Limited-service suppliers: companies that specialize in one or a few phases of the marketing research project such as: field services, coding and data entry, and data analysis.

15. Full-service suppliers • Syndicated services:companies that collect and sell common information of known commercial value, designed to serve information needs shared by a number of clients on a subscription basis (e.g. information on audience size and their demographic characteristics). • Standardized services: companies that use standardized procedures to provide marketing research for various clients when they ask (e.g. procedures for measuring advertising effectiveness). • Customized services: companies that tailor the research procedures to best meet each clients. • Internet services: companies that have specialized in conducting marketing research on the Internet.

16. Limited-service suppliers • Field services:companies whose primary service is collecting data for research projects. • Coding and data entry services: companies whose primary service is converting completed surveys of interviews into a usable database for conducting statistical research. • Analytical services: companies that provide guidance in the development of the research design such as: designing and pretesting questionnaires, determining the best means of data collection, designing sampling plan. • Data analysis services: firms whose primary service is to conduct statistical analysis of quantitative data. • Branded marketing research products: specialized data collection and analysis of patented procedures that developed to address specific types of research problems. These procedures are given brand names and marketed like any other branded product. e.g. Synovate’sTeleNation study.

17. U.S. Rank Organization Headquarters Website U.S. Global Non-U.S. 2007 2006 Top 15 U.S. Marketing Research Firms

18. Criteria for Selecting a Research Supplier • What is the reputation of the supplier? • Do they complete projects on schedule? • Are they known for maintaining ethical standards in doing marketing research? • Are their research projects of high quality? • What kind and how much experience does the supplier have? • Has the firm had experience with projects similar to this one? • Do the supplier's personnel have both technical and non-technical expertise? • Can they communicate well with the client? Competitive bids should be compared on the basis of quality as well as price.

19. Vice President of Marketing Research • Part of company’s top management team • Directs company’s entire market research operation • Sets goals & objectives of marketing research department • Research Director • Also part of senior management • Heads the development and execution of all research projects • Assistant Director of Research • Administrative assistant to research director • Supervises research staff members • Senior Project Manager • Responsible for design, implementation, & management research projects. Sixth: Marketing Research Career

20. Senior Analyst • Participates in the development of projects • Carries out execution of assigned projects • Coordinates the efforts of analyst, junior analyst, & other personnel in the development of research design and data collection • Prepares final report • Analyst • Handles details in execution of project • Designs & pretests questionnaires • Conducts preliminary analysis of data • Statistician/Data Processing • Serves as expert on theory and application on statistical techniques • Oversees experimental design, data processing, and analysis • Junior Analyst • Secondary data analysis • Edits and codes questionnaires • Conducts preliminary analysis of data • Fieldwork Director • Handles selection, training, supervision, and evaluation of interviewers and field workers Selected Marketing Research Career Descriptions

21. A Sample of Marketing Research Jobs

22. Preparation for a Career in Marketing Research • Take all the marketing courses you can. • Take courses in statistics and quantitative methods. • Acquire Internet and computer skills. • Take courses in psychology and consumer behavior. • Acquire effective written and verbal communication skills. • Think creatively. Creativity and common sensecommand a premium in marketing research.

23. Seventh: Questions for Revision • Explain The Role of Marketing Research in marketing decision making.(Slide 4) 2. Describe the steps in marketing research process. (slides 11-12) 3. Describe, with examples, a classification of marketing research. (slides 5-10) 4. What is the main difference between a full-service and a limited-service research suppliers? (slides 13-16) 5. List 5 criteria for selecting an external marketing research supplier. (slide 18)