Ch1.Intro MR

Marketing Research &MIS

Slide 1© Associate Professor Dr. Jamil Bojei, 2014



WHY WE NEED MARKETINGRESEARCH?



INFORMATION IS POWER

No Information – Weakness/Vulnerability

Lack of objectives & Direction

Faulty Plans and Strategies

Poor Defense & Low Entry Barriers



INFORMATION IS POWER

Information merely provides the environmentfor reducing/eliminating weaknesses BUT

does not automatically provide acompetitive edge,

HENCE,



…”STRATEGIC USE OFINFORMATION IS REAL POWER

• Use the right information

Concise rather than voluminous information

Reliable/verified information rather thaninformation from unknown/questionablesources

Objective information than opinions andhearsay

Relevant rather than impressive information

Actionable rather than interesting information



ROLES OF MARKETINGRESEARCH



UncontrollableEnvironmental

Factors• Economy• Technology• Competition• Laws and

Regulation• Social and Cultural

Factors• Political Factors

AssessingInformation

Needs

Customer Groups• Consumers• Employees• Channel Members• Suppliers

MarketingResearch

Marketing Managers•Market Segmentation •Marketing Programs•Target Market Selection •Performance and Control

ControllableMarketingVariables

• Product• Pricing• Promotion• Distribution

MarketingDecisionMaking

ProvidingInformation

The Role of Marketing Research in Marketing Decision Making



ROLES OF MARKETINGRESEARCH

“The role of a marketing research mustinclude consulting skills, technicalproficiency, and sound management. Thefocus of the role is to provide information toidentify marketing problem and solutions insuch a way that action can be taken.”

Ron Tatham, Chairman, Burke, Inc.



The Role of Marketing ResearchMarketing Research

A Formal Communication Link with the Environment

Provide Accurate and Useful Information

Better Decision Making

a) Planningb) Problem-solvingc) Control

a) Specifying

b) Collecting

c) Analyzing

d) Interpreting

For



Kinds of Questions MarketingResearch Can Help Answer

I Planning

A. What kinds of people buy our product?

Where do they live?

How much do they earn?

How many of them are there?

B. Is the market for our product increasing ordecreasing?

Are there promising markets that we have not yetreached?

C Are there markets for our product in other countries?




II ProblemSolving

A. Product

B. Price

C. Channels ofDistribution

D. Communication

• Which, of various productdesigns, is likely to be thesuccessful?

• What kind of packagingshould we use our product?




II ProblemSolving

A. Product

B. Price


D. Communication

• What price should we chargefor our new product?

• As product costs decline,should we lower our prices ortry to develop a higherquality product?




II ProblemSolving

A. Product

B. Price


D. Communication

• Where, and by whom shouldour product be sold?

• What kinds of incentivesshould we offer to inducedealers to push our product?




II Problem Solving

A. Product

B. Price


D. Communication

• How effective is our advertising?Are the right people seeing it?How does it compare with thecompetition’s advertising?

• What kinds of sales promotionaldevices-coupons, contests,rebates, and so forth-should weemploy?

• What combination of media-newspaper, radio, television,magazines-should we use?



III Control

A. What is our overall market share? In eachgeographic area? By each customer type?

B. Are customers satisfied with our product? Howis our record for service? Are there manyreturns?

C. How does the public perceive our company?What is our reputation with dealers?




ProblemIdentification

Research

•Market Potential Research•Market Share Research•Image Research•Market CharacteristicsResearch•Forecasting Research•Business Trends Research

MarketingResearch

A Classification of Marketing Research

ProblemSolving

Research

•Segmentation Research

•Product Research

•Pricing Research

•Promotion Research

•Distribution Research



PROBLEM IDENTIFICATION VSPROBLEM SOLVING RESEARCH

• Problem identification

Research that is undertaken to help identifyproblems that are not necessary apparent on thesurface and yet exist or are likely to arise in thefuture.

• Problem solving research

Research undertaken to help solve specificmarketing problems.



Marketing Research Industry: Supplier and Services

ResearchSuppliers

Internal

Limited Service

Full Service

External

Other ServicesField ServicesCustomizedServices

SyndicatedServices Internet

Services



Marketing Research Suppliers & Services

• Internal suppliers

• External suppliers

Full-service suppliers

• Syndicated services

• Standardized services

• Customized services

• Internet services

Limited-service suppliers

• Field services

• Coding and data entry services

• Analytical services

• Data analysis services

• Branded marketing research products



Selected Marketing Research Career Descriptions

Vice President of MarketingResearch

• Part of company’s top

management team

• Directs company’s entire market

research operation

• Sets the goals & objectives of the

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 director

•Supervises research staff members

Senior Project Manager• Responsible for design, implementation, &research projects



Analyst• Handles details in execution of

project• Designs & pretests questionnaires• Conducts preliminary analysis of

data

Junior Analyst• Secondary data analysis• Edits and codes questionnaires• Conducts preliminary analysis of data

Fieldwork Director• Handles selection, training,supervision, and evaluation ofinterviewers and field workers

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

Statistician/Data Processing• Serves as expert on theory and

application on statistical techniques• Oversees experimental design, data

processing, and analysis

Selected Marketing Research Career Descriptions



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? Are they flexible? Are their research projects of high quality? What kind and how much experience does the

supplier have? Has the firm had experience withprojects similar to this one?

Do the supplier's personnel have both technical andnon-technical expertise?

Can they communicate well with the client? Competitive bids should be obtained and compared on

the basis of quality as well as price.



THE MARKETINGINFORMATION SYSTEM

• MIS consists of people, equipment, andprocedures to gather,sort, analyze, evaluate, anddistribute needed, timely and accurate informationto marketing decision makers.

• The MIS helps managers to:

Assess information needs

Develop needed information

Distribute information



THE MARKETINGINFORMATION SYSTEM





Marketing Information System

• Internal records system

Marketing managers rely on internal reports onorders, sales, prices, cost, inventory levels,receivables, payables, and so on. By analyzingthis information, they can spot importantopportunities and problems.



Marketing Information System

• Marketing intelligence system is a set of procedures and sources used by

managers to obtain everyday information aboutdevelopment in the marketing environment.

Marketing managers collect marketingintelligence by reading books, newspapers, andtrade publications; talking to customers,suppliers, and distributors; and meeting withother company managers.



Marketing Information System• Marketing decision support system

Is defined as collected data that may be assessed andanalyzed using tools and techniques that assistsmanager in decision making.

Once companies collect large amount of information,they store this information in huge databases that, whenassessed with decision-making tools and techniques(such as break-even analysis, regressions models, andlinear programming), allow companies to ask “what-if”questions. Answers to these questions are thenimmediately available for decision making.



Marketing Information System• Marketing Research system

Marketing managers often commission marketingstudies of specific problems and opportunities. Theymay request a market survey, a product-preference test,a sales forecast by region, or an advertising evaluation.It. it is the job of the marketing researcher to producecustomer insight into the problem.

We define marketing research as the systematic design,collection, analysis, and reporting of data and findingsrelevant to a specific marketing situation facing thecompany.



Expert Systems

InternalBilling,

Production,and OtherRecords

DecisionSupportSystems

MarketingInformation

Systems

The Development of MIS and DSS

=ExternalMarket

Information+



MIS

• Structured problems

• Use of reports

• Informationdisplaying restricted

• Can improvedecision making byclarifying new data

Marketing Information Systems (MIS)vs.

Decision Support Systems (DSS)

DSS

• Unstructured problems

• Use of models

• Adaptability

• Can improve decisionmaking by using “whatif” analysis



Stakeholders in Marketing Research:

An Ethical Perspective

Client

MarketingResearcher

Public

Respondents

Documents

Ch1.Intro MR