Unit 1 - Marketing, Marketing Information System and Marketing Research

8/3/2019 Unit 1 - Marketing, Marketing Information System and Marketing Research

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Marketing, Marketing InformationSystem and Marketing Research

Marketing Research


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Introduction

Marketing a fast changing and dynamic field.

Substantial increase in labour force engaged in

marketing.

Pronounced shift in the orientation of firms from

production to marketing.An ever-increasing premium placed on making sound

marketing decisions

Companies becoming more market-driven in their

strategic decision making.

To meet such requirements, emergence of a

formalized means of acquiring information to assist in

such a decision making process marketing research


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Meaning

Marketing Research is a part of Marketing

Therefore, we should understand what is

Marketing

Marketing Concept

Marketing Strategy


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What is Marketing?

Marketing has been defined by the American

Marketing Association (AMA) as an organizationalfunction and a set of processes for creating,

communicating and delivering value to customers

and for managing customer relationships in ways

that benefit the organization and its stakeholders.


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What is the Marketing Concept?

TheMarketing Concept is a business philosophy

that holds that the key to achieving organizationalgoals consists of the companys being more effective

than competitors in creating, delivering, and

communicating customer value to its chosen

markets.


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What is Marketing Strategy?

AMarketing Strategy consists of selecting a

segment of the market as the companys targetmarket and designing the proper mix of the

product/service, price, promotion, and distribution

system to meet the wants and needs of the

consumers within the target market.


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Lets Apply Marketing to a Restauranta Restaurant

Target market segment?

Marketing strategy

Location?

Menu?

Prices?

Type?

Advertising?


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Restaurant Marketing Decisions

What if you owned a restaurant located in Durbar

Marg? Or near a University/Campus? What would be your marketing strategy?

How certain are you that you made the right

decisions? What if you want to open a restaurant in a different

city? In Pokhara, for instance?

How certain are you that you made the right

decisions now?


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Key Points

To practice marketing; to implement the marketing

concepts; to implement marketing strategy,managers must make informed decisions.

Many decisions require additional information and

marketing research is needed in order to supplythat information.


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What is Research?

Research.What kinds of images does this word

conjure up for you? Other ways of acquiring information and knowledge?

Examples:

Do Nepali consumers make buying decisions interms of quality or price?

In general, who has higher self-esteem, a first born

child or a last born child?

Are love marriages happier than arranged ones?

Tenacity..Intuition..Authority..Rationalism..

Observation


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What is Research?

Researchconnotes a systematic and objective

investigation of a subject or problem in order todiscover relevant information or principles.

Classification:

Basic/Fundamental/Pure Research seeks toextend the boundaries of knowledge in a given

area with no necessary immediate application to

existing problems

Applied/Decisional Research attempts to useexisting knowledge as an aid to the solution of

some given problem or set of problems.


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In a problem solving context the emphasis is on

applied or decisional research. Hence, Marketing Research is the systematic and objective

search for and analysis of information relevant to the

identification and solution of any problem in the fieldof marketing.

Note

Systematic

Objectivity

Thoroughness

Problem


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What is Marketing Research?

According to American Marketing Association

Marketing Research is the function that links the

consumer, customer, and public to the marketer

through information information used to

identify and define marketing opportunities andproblems;

generate, refine, and evaluate marketing actions;

monitor marketing performance;

and improve the understanding of marketing as a

process.


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What is Marketing Research?

Marketing research

specifies the information required to address these

issues,

designs the methods for collecting information,

manages and implements the data collectionprocess,

Analyzes the results, and

communicates the findings and their implications.


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Market research is an aid to decision making

not a substitute for it.


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Marketing Research in Practice

The function of marketing research within a company

is to provide the informational and analytical inputsnecessary for effective

planning of future marketing activity

control of marketing operations in the presentevaluation of marketing results.

Marketing research are conducted

on abroad array of topics market potential, marketshare, market characteristics, sales analysis, short-rangeand long-range forecasting, business trend analysis

by a variety of types and sizes of organizations

for different purposes.


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Problem-Situation Models and Decision Making

Example: A marketing manager is considering

increasing the advertising appropriation for one of thecompanys products.

Net additional sales will depend upon factors such as

The nature of the campaignThe advertising-sales response relationship

The action of the competitors

A necessary part of the process of this decision is theformulation of a problem-situation model.


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Model

A conceptual scheme that specifies a measure of the

outcome(s) to be achieved, the relevant variables,and their functional relationship to the outcome(s).

Problem-situation model may be defined as:

U=f(Ai, Sj)U= the measure of the outcomes

Ai= the variables that are under the control of the decision

maker

Sj= the environmental factors or constants

f = the functional relationship between the dependentvariable and independent variables


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Model of Sales-advertising Relationship

Advertising

Sales


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Or, analysis of the sales-advertising relationship in

the past might indicate that it takes the form of aGompertz-type (S-shaped) curve such that it is

represented by the equation as follows:

Log Y= log k+ (log G)B

P

where Yis sales response,p is amount of

advertising, and k, G, and B are constants which

provide a reasonably good predictive equation over

the range of advertising of interest to the decisionmaker.


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Model

Explicit Models - expressed

Verbal

Graphical

Logical Flow

Symbolic (Mathematical)

Implicit Model

Models are necessarily simplification and abstraction

to some degree of the reality of the problem situation

The decision maker attempts to abstract the

important elements of the problem situation and

represent them so that they are simple enough to

be understood and manipulated, yet realisticenou h to ortra the essentials of the situation.


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Information and Decision Making

Information refers to the recorded experience that is

useful for decision making.Consists of recorded experience which will reduce

the level of uncertainty in making a decision

Dependent on the decision maker and the contextof the decision

Information must be

Accurate

Current

Sufficient/Complete

Available

Relevant


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Information and Decision Making

Many companies develop more or less formal

system for obtaining, processing and disseminatingdecision information.

To a large extent in many companies, such systems

are not formally structured and/or are equated withthe activity of marketing research.

There is more to marketing information system

(MIS) than marketing research.

Marketing research can be considered as one ofthe subsystems


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Marketing Information System


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MIS

The activities performed by an MIS and its

subsystems include the capability to:Store and retrieve data easily

Generate reports and analyses, both standard and

as hoc as requiredProvide modeling and what-if analysis

Create high quality visual aids

Integrate all of functions listed above.As marketing research becomes increasingly tied to

overall corporate strategic planning, the MIS must

have the capability to link with corporate information

system.


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The Role of Marketing Research

Customer GroupsConsumersEmployeesShareholdersSuppliers

Controllable Variables Product Price

Promotion Distribution

UncontrollableEnvironmental FactorsEconomyTechnology Laws and

RegulationsSocial and Cultural

FactorsPolitical Factors

AssessingInformation

ProvidingInformation

MarketingDecisionMakeing

Marketing MangersMarket SegmentationTarget Market

SelectionMarketing ProgramsPerformance and

Control

Marketing Research


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A Classification of Marketing Research

Problem Identification

Research

Problem Solving

Research

Segmentation Research

Product Research

Promotion ResearchDistribution Research

Market Potential Research

Market Share Research

Market Characteristics

Research

Sales Analysis Research

Forecasting Research

Business Trends Research

Marketing Research


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Problem Solving Research

Segmentation Research

Determine the basis of segmentation Establish market potential and responsiveness for various

segments Select target markets Create lifestyle profiles: demography, media, and product

image characteristics Product research

Test concept Determine optimal product design Package tests Product modification Brand positioning and repositioning Test marketing Control score tests


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Pricing Research

Pricing policies Importance of price in brand selection

Product line pricing

Price elasticity of demand

Initiating and responding to price changes

Promotional Research

Optimal promotional budget

Sales promotion relationship

Optimal promotional mix

Copy decisions

Media decisions

Creative advertising testing

Evaluation of advertising effectiveness


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Distribution Research

Determine

Types of distribution

Attitudes of channel members

Intensity of wholesale and resale coverageChannel margins

Location of retail and wholesale outlets

Documents

Unit 1 - Marketing, Marketing Information System and Marketing Research