MR_Chap001

Marketing Research Overview

• Growth of Marketing Research: Increased complexity due to digital advances.

• Data Storage: Databases or data warehouses manage big data.

• CRM Systems: Utilize customer information management.

• Research Techniques: Hybrid methods combining multiple collection approaches.

• Tasks of Marketing Research:

  • Designing information collection methods.

  • Managing the collection process.

  • Analyzing and interpreting results.

  • Sharing findings with decision-makers.

Importance of Marketing Research

• Role of Research: Necessary for informed managerial decisions, especially in new contexts.

• Methodology: Utilizes social sciences for theory and methods.

• Big Data: Expands analytical options available to marketers.

• Focus on Four Ps: Involves product, price, place, and promotion.

• Theoretical Research: Essential in understanding various marketing issues.

Product Marketing Variables

• New Product Development: Involves concept testing and product testing.

• Customer Interaction: Measures how a product meets expectations and potential improvements.

• Branding and Positioning:

  • Early identification of shifts in brand perception.

  • Perceptual mapping to assess consumer perceptions of products.

Perceptual Map in Fast Food Market

• Exhibit 1.1: Visual representation of fast food market positioning based on price and quality.

Distribution Marketing Variables

• Retail Market Research: Encompasses trade area analysis, store image studies, traffic patterns, and location insights.

• Database Development: Utilizes technology for real-time data collection.

• Behavioral Targeting: Ads tailored based on user behavior on content sites.

• Shopper Marketing: Analyzes customer journey, focusing on product management and promotional strategies.

Promotion Marketing Variables

• Return on Investment: Importance of maximizing promotional budgets.

• Media Metrics: Need for reliable metrics for traditional and digital media.

• Common Research Tasks:

  • Advertising effectiveness studies.

  • Consumer attitude research.

  • Sales performance tracking.

Pricing Marketing Variables

• Pricing Strategies: Assessing demand potential and price optimization.

• Market Research Questions:

  • Demand forecast at varied price points.

  • Sensitivity of demand to price changes.

  • Potential targeted pricing segments.

Consumer and Market Segmentation

• Segmentation Studies: Analyze consumer needs, preferences, and lifestyle.

• Data Objective: Collect data on customer attributes and brand preferences.

• Ethnography: Extended observations that reveal consumer behavior patterns.

Marketing Theory

• Theory Purpose: Generalizing relationships applicable to diverse marketing settings.

• Adoption and Diffusion Theory: Understanding product adoption trends in markets.

• Consumer Behaviors: Key service marketing characteristics include reliability, empathy, etc.

• Information Overload Theory: Explains consumer behavior in choosing from options.

• Sales Research Success Factors: Likability and trust traits in salespersons.

Growth of the Marketing Research Industry

• Key Growth Factors:

  • Customer satisfaction studies post-sale.

  • Retail-driven product data systems.

  • Long-term brand management development.

  • International market research expansion.

Types of Marketing Research Firms

• Firms Classification: Internal vs external; customized vs standardized.

• Syndicated Services: Typically provided by standardized research firms.

Skills for the Changing Industry

• Required Skill Sets:

  • Communication skills (verbal and written).

  • Interpersonal skills for teamwork.

  • Statistical skills for data analysis.

• Top Skills for Candidates:

  • Data interpretation.

  • Presentation abilities.

  • Proficiency in foreign languages.

  • Negotiation and IT skills.

Ethical Questions in Marketing Research

• Pricing Issues: Ethical concerns over project costs and services.

• Client Confidentiality: Importance of data privacy and integrity in sharing results.

• Methodological Transparency: The dilemma of proprietary methodologies.

Professional Standards in Research

• Client Pressures: Risks of compromising research integrity.

• Research Integrity: Avoiding 'curbstoning' and dishonest data collection practices.

• Sampling Issues: Importance of proper sample adherence in research.

Abuse of Respondents in Research

• Misrepresentation & Deception: Potential unethical practices in data collection.

• Guidelines Compliance: Importance of integrity in marketing research.

Client/Research User Ethics

• Ethical Client Behavior: Concerns over client intentions in procuring research.

• Long-Term Promises: Risks of clients failing to deliver and overstating results.

Respondent Ethics

• Dishonesty in Responses: Impact of false answers on research validity.

• Economic Dysfunction: Financial incentives may lead respondents to misrepresent.

Marketing Research Codes of Ethics

• AMA Guidelines: Commitment to ethical research practices.

• Child Protection: Special considerations in involving children in research.

• Voluntary Participation: Ensuring respondent privacy and data protection.

Emerging Trends in Marketing Research

• Research Trends: Increasing focus on secondary data methods and technology management.

• International Client Base: Expansion of services globally.

Development of Marketing Analytics