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

In this chapter you will learn: To review the marketing concept and the marketing mix, to comprehend the marketing environment within which managers must make decisions, to define marketing research, to understand the importance of marketing research in shaping marketing decisions, to learn when marketing research should and should not be conducted.

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.

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

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

Nature of Marketing

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

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

Applied Research versus Basic Research

Applied research

To better understand the market

Basic research

To expand the frontiers of knowledge

To understand the importance of marketing research.

Market Research and

Decision Making

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

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

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

Deciding Whether to Conduct

Market Research

Cost likely to be greater than benefit;

e.g., eyeglasses replacement screw

Small Possible benefits

greater than cost;

e.g., ultra expensive sportswear

Benefits likely to be greater than costs;

e.g., Stouffers frozen entries

Benefits likely to be greater than costs;

e.g.,medical equipment

Large

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

To understand the importance of marketing research.

Profound Impact of the Internet

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

To understand the importance of marketing research.

Profound Impact of the Internet

• 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

SUMMARY

The End

Copyright © 2004, John Wiley & Sons, Inc.