Marketing Research for Managerial Decision Making

Flashcards for reviewing key concepts in marketing research, covering topics from research design to ethical considerations and emerging trends.

What is the role of marketing research?

It links an organization to its market through information gathering, including designing collection methods, managing the collection process, analyzing results, and sharing insights with decision-makers.

Data warehouses (databases)

Big Data

Marketing Research

Function that links an org to its market through gathering of information

What does marketing research draw on for methods and theory?

The social sciences

What is the sequence for Marketing research (the big picture)?

Understanding the questions that need to be addressed - then use appropriate tools and techniques

What areas does marketing research apply to?

Problems involving the four Ps (Product, Place, Promotion, Price).

What are the two main questions answered Marketing Mix Variables -Product? During New Product Development and Introduction?

How does a product perform for the customer? How can a product be improved or exceed customer expectations?

Four p’s of Marketing Mix - Product: Branding

Research detects early changes in meaning and attitude

Marketing Mix Variables - Product: Positioning

Understanding how customers perceive products

Positioning: What is the purpose of perceptual mapping?

To understand how consumers perceive products and fix products on two or more dimensions impacting purchase. High/Low quality & High/low price.

Marketing Mix Variables - Place/Distribution: What does retail market research include?

Trade area analysis, store image studies, in-store traffic patterns, and location analysis.

(Place/Distribution)Retail research

Focuses on database development through optical scanning at the point of purchase

What is behavioral targeting?

Online retailers working with content sites to display ads based on data collected about user behavior.

What understanding does shopper marketing give?

An understanding of a customer’s purchase journey and adresses product category management and Displays, Sales, Packaging, promotion, and marketing

Marketing Mix Variables - Promotion: traditional and Digital, media present challenges in what?

obtaining reliable metrics to accurately gauge advertising return.

what is the job of marketing researchers when it comes to Promotion?

To develop meaningful metrics and then collect data for those metrics

What are three common research tasks in integrated marketing communications?

Advertising effectiveness studies, attitudinal research, and sales tracking.

What are all the pricing decisions that must be made for the Marketing mix Variable Price?

pricing new products, establishing price levels in test marketing, and modifying prices for existing products

What questions does marketing research provide answers to regarding pricing decisions?

How large is the demand potential within the target market at various price levels? What are the sales forecasts at various price levels? How sensitive is demand to changes in price levels? Are there identifiable segments that have different price sensitivities? Are there opportunities to offer different price lines for different target markets?

What do benefit and lifestyle studies examine?

Consumers’ needs

Consumers and Markets - Segmentation Studies:

Includes Benefit and lifestyle studies

• major component of mark. segmentation research

• objective: data on customer charact., product benefits, and brand preferences

• if combined with other demographics, it creates segmentation profiles

• highlights problems and opportunities based on customer behavior

What is the purpose of Marketing Theory?

To generalize relationships between concepts in a way applicable to a wide variety of settings.

What does adoption and diffusion theory help marketers understand?

How new products are adopted and spread through the market.

What five characteristics are important to consumers according to services marketing research?

Reliability, empathy, responsiveness, assurance, and tangibles. (RESAT)

What does information overload theory explain?

Why consumers are more likely to purchase from a sample of 6 versus 24. Too much can overwhelm them and lead to decision fatigue.

What characteristics are linked to a salesperson's success? (sales research)

Likability, similarity, and trustworthiness

What are some reasons for the marketing research industry's record growth?

Post-sale customer satisfaction studies(1/3 of research- company revenues), retail-driven product scanning systems(another 1/3 of revenue), database development for long-term brand management, and international research studies.

Internal vs External marketing Research Firm

Internal research firms operate within a company, focusing on its specific needs, while external firms provide research services to various clients, offering broader industry insights.

What is the difference between customized and standardized research firms?

Customized research firms provide tailored services, while standardized research firms provide general services (syndicated business services).

What are some essential skills required in a research firm?

Communication skills, interpersonal skills, and statistical skills.

What are the top five skills candidates need for marketing jobs?

Understand and interpret secondary data, presentation skills, foreign language competency, negotiation skills, and information technology proficiency.

What are some ethical questions in general business practices related to marketing research? Pricing Issues

“Soft” costs to pad on total project cost

Selling nonessential services is unethical

What are some ethical questions regarding general business practices related to marketing research? Client confidentiality issues

When firms specialize, it is tempting to reuse research results from one client to another.

What are some ethical questions regarding general business practices related to marketing research? branded “black box” methodologies

when they are propriety and firms will not disclose how method works. (methodology not black box just because it is branded)

Why does client pressure mess with the professional standards of research?

• client may pressure to prove predetermined conclusion

• client may not provide sufficient budget

How does curbstoning contribute to unmet professional standards of research?

Curbstoning refers to the practice of falsifying data by having enumerators fill in surveys without actually conducting the interviews, have friends fill out surveys or anyone convenient and not designated sample. May not follow up on callback procedures.

Examples of Abuse of respondents

research firms may neglect incentives, misrepresent time requirements or use fake sponsors. (Debrief)

What is sugging or frugging?

Research used just to collect names, which is unethical. There should be no invasion of customer privacy

Marketing Research Association guidelines

no deanonymizing data, as online information has that capability, and online actions may be observed but with no identifying information

What are some unethical activities of the client/research user?

“Client” Requesting research proposals with no intention of hiring, promising a long-term relationship to obtain a low price and then providing no further business, and overstating results.

What is the primary unethical practice by the respondent?

Providing dishonest answers or fake behavior. (selfish and ego)

What are some ethical guidelines from the American Marketing Association?

Researchers will conform to all laws and behave ethically, use special care when conducting research among children, respondents’ cooperation is voluntary, rights of respondents as private individuals are respected, personal data will never be used for any other purpose, and ensure work is accurate, transparent, objective, and appropriate.

What are some emerging trends in the marketing research industry?

Increased emphasis on secondary data collection methods, movement toward technology-related data management, expanded use of digital technology, a broader international client base, and movement beyond data analysis toward data interpretation/information management.

What does marketing analytics use to solve marketing business problems?

Data, statistics, mathematics, and technology

Marketing analytics and big data rely on

lots of digital secondary data

enhanced computer processing power

knowledge of mathematical modeling

computer programming skills

access to specialized software