Lecture Marketing research (12th edition) - Chapter 1: A decision making perspective on marketing intelligence

Chapter 1 - A decision making perspective on marketing intelligence. In this chapter, the following content will be discussed: Business intelligence, what is marketing intelligence? need for marketing intelligence, marketing planning process,...

Aaker, Kumar, Leone and  Day 

Twelfth Edition

Instructor’s Presentation  Slides

Chapter   One

A Decision Making  Perspective on  Marketing Intelligence

Marketing Research 12th Edition

• BI is the ability to access data from multiple sources within an  organization and deliver it to business users for analysis

• It links the disparate operational systems to the end users of the  data, thus creating an environment with free flow of information

• It offers a reliable barometer of the business performance

• It helps to analyze what is behind trends and anomalies in the  business

Provide data on

Business Intelligence

Financial  Intelligence

Marketing  Intelligence IntelligenceAccounting 

Marketing  Research

Management 

.

Primary Sources Secondary Sources Standardized Sources

Customer Relationship  Marketing/ Database Marketing

Marketing Research 12th Edition

Market intelligence (MI) is, “the process of acquiring and analyzing  information in order to understand the market (both existing and 

potential customers); to determine the current and future needs and 

preferences, attitudes and behavior of the market; and to assess changes 

in the business environment that may affect the size and nature of the  market in future.”

­ Cornish S. L

• Producers have little direct contact with consumers (geographical  distance and channel layers)

• Channel has little knowledge about customer attitudes, preferences  and changing tastes

• Need to understand competition, without spying on them

• Management goals involve sales targets and market share 

achievement

• Need to identify successful new product developments early in the  process to ensure growth and revenue maximization by finding a  balance between costs and prices of products

• The need is to look at least 5 to 10 years in advance 

plan for what happens when a particular patent expires. 

Marketing Research 12th Edition

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• Marketing Research, a critical part of Marketing Intelligence 

helps by providing accurate, relevant and timely (ART) 

information

Links consumer, customer, and public to the marketer  through information used to:

•    Identify and define marketing opportunity and  problems

•    Generate, redefine and evaluate marketing actions

•    Monitor marketing performance

•    Improve understanding of marketing as a process 

(from AMA’s official definition of Marketing Research)

Marketing Research 12th Edition

Managerial Decision Making

Four Stages of Market Planning Process

• Performance monitoring

• Refining strategies and program

• Define the business scope and served market segments

• Establish competitive advantages

• Set performance objectives

  Situation  Analysis

 Strategy Development

  Marketing Program Development

 Implementation

• Understand the environment and the market

• Identify threats and opportunities

• Assess the competitive position

• Product and channel decision

• Communication decisions

• Pricing

• Personal selling decisions

Marketing Research 12th Edition

Analysis of

▫Market environment

▫Market characteristics 

▫Consumer behavior

Research Approaches

▫Organize information obtained from prior 

studies (secondary)

▫Focus groups

Management With Three Critical Decisions:

▫ What business should we be in?

▫ How will we compete?

▫ What are the objectives for the business?

Marketing Research 12th Edition

• Programs embrace specific tasks

• Action program usually focuses on a single objective in support of one 

element of overall business strategy

1 Segmentation decisions

2 Product decisions

3 Distribution decisions

4 Advertising and promotion 

decisions

5 Personal selling decisions

6 Price decisions

7 Branding decisions

8 Customer satisfaction decisions

Representative Decisions that Draw on 

Marketing Research:

• Starts with decision to proceed with a new program or strategy

• Set specific measurable objectives for all elements of marketing program

• Shift research focus to :

▫ "Did the elements achieve their objectives?"

▫ “Should the marketing program be continued, discontinued, revised or expanded?"

• Relevance

• Type and Nature of Information Sought

• Timing

• Availability of Resources

• Cost­benefit Analysis

Factors Influencing Marketing Research 

Decisions

Marketing Research 12th Edition

Ethics of the Sponsor

Ethics of the Supplier

Abuse of Respondents 

• Hispanics account for nearly 17% of the U.S. population.

• Research shows that Hispanic market contribute more than $1.2 trillion 

towards purchasing power of multicultural population.

• Advertisement spending in the United States directed toward Hispanics 

increased by 11.1 percent from 2011 to 2012. 

• Marketers reportedly spent in excess of $8 billion dollars, up from $3 billion 

in 2003.

• By 2050, Hispanic population would represent 25% of US population.

• What do you think the problem is?

Marketing Research 12th Edition

End of Chapter One