Gino class chapter 1

Chapter 01: Marketing Research for Managerial Decision Making

Overview

• Essential of Marketing Research

  • Authors: Joseph F. Hair, Jr., David J. Ortinau, Dana E. Harrison

  • The significance of marketing research in decision-making.

Growing Complexity of Marketing Research

• Data Management

  • Use of databases and data warehouses to store big data.

  • Customer Relationship Management (CRM) systems for managing information.

  • Hybrid research techniques combine multiple methods for effective data collection.

• Marketing Research Definition

  • Links organizations to their markets through information gathering.

  • Key tasks include:

    • Designing collection methods.

    • Managing data collection processes.

    • Analyzing data and interpreting results.

    • Sharing findings with decision makers.

Role and Value of Marketing Research

• Contextual Decision-Making

  • New contexts in managerial decisions may lack experience.

  • Marketing research employs social sciences for methodologies and theories.

• Application of Research

  • Addresses issues related to the four Ps (Product, Place, Promotion, Price).

  • Theoretical research applies to a broad range of marketing contexts.

Marketing Mix Variables

Product

• New Product Development

  • Importance of concept testing and test marketing.

    • Evaluates product performance and improvement potential.

• Branding & Positioning

  • Detects shifts in consumer perceptions.

  • Uses perceptual mapping to visualize market positioning.

Place/Distribution

• Retail Market Research

  • Key areas include trade area analysis, store image studies, in-store traffic patterns, and location analysis.

  • Behavioral targeting in online retailing enhances ad relevancy.

  • Understanding shopper marketing’s effect on the purchase journey through category management and promotions.

Promotion

• Promotional Effectiveness

  • Need for effective return on promotional budgets.

  • Challenges in measuring ad performance across traditional and digital media.

  • Common research tasks:

    • Advertising effectiveness studies.

    • Attitudinal research.

    • Sales tracking.

Price

• Pricing Decisions

  • Involves setting prices for new products and adjusting prices for existing ones.

  • Research questions include:

    • Demand potential at different price points.

    • Sales forecasts at various price levels.

    • Price sensitivity across different market segments.

Consumers and Markets

Segmentation Studies

• Understanding Consumer Needs

  • Benefit and lifestyle studies inform market segmentation research.

  • Combines customer characteristics with product benefits for segmentation profiles.

  • Ethnography as a method for in-depth consumer observation.

Marketing Theory

• Purpose of Theory

  • Generalizes relationships between marketing concepts.

  • Adoption & Diffusion Theory

    • Explains new product acceptance in the market.

  • Five Characteristics of Services Marketing

    • Reliability, empathy, responsiveness, assurance, and tangibles.

Marketing Research Industry Growth

• Major growth factors:

  • Post-sale customer satisfaction studies.

  • Retail product scanning systems.

  • Database development for brand management.

  • Increased focus on international research studies.

Types of Marketing Research Firms

• Internal vs External

  • Internal: units within companies.

  • External: hiring firms on a fee basis.

• Customized vs Standardized Research

  • Customized offers tailored services; standardized provides general services.

Changing Skills for a Changing Industry

• Essential Skills:

  • Communication (verbal & written).

  • Interpersonal skills for teamwork.

  • Statistical analysis proficiency.

  • Key skills for marketing jobs include:

    • Interpreting secondary data.

    • Presentation and negotiation skills.

    • IT proficiency.

Ethical Questions in Marketing Research

• Pricing & Client Ethics:

  • Issues with pricing methods and selling nonessential services.

  • Importance of client confidentiality and proprietary methodologies.

Conducting Ethical Research

• Pressure in Research:

  • Issues arise from client pressures leading to research misconduct.

  • Risks of inadequate budgeting and unethical practices like curbstoning.

Respondent Considerations

• Abuse of Respondents

  • Neglecting incentives or misrepresenting research.

  • Ethical implications of deceptive practices.

Marketing Research Codes of Ethics

• Principles to Adhere:

  • Compliance with laws and ethical standards.

  • Protection of respondent confidentiality and voluntary cooperation.

  • Commitment to accuracy, transparency, and fair competition.

Emerging Trends in Marketing Research

• Industry Trends:

  • Increased focus on secondary data collection and technology-related management.

  • Expanded digital technology usage in information acquisition.

  • Growing international client base and trend towards data interpretation.

Development of Marketing Analytics

• Focus on Analytics:

  • Utilizes data, statistics, and technology to solve marketing problems.

  • Relies on digital secondary data and advanced analytics techniques.

Conclusion

• Understanding the evolving landscape of marketing research is crucial for effective decision-making in business contexts.