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INTRODUCTION
Module Objectives
1
define marketing research, its importance to a business enterprise and identify the
steps in marketing research (ABM PM11-le-i-11);
select the appropriate target market segment and its positioning (ABM PM11-le-i-15).
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The Company
Marketing cannot function in a vacuum as
marketing decisions must always be
aligned with the organization’s goals and
strategies.
Suppliers
Customers
Competition
The demand for company’s products and services is
affected by the nature and intensity of competition.
Publics
Publics may include any individual or entity
with an actual or potential interest in the
company and its products or services. These
include the shareholders, community,
financial institutions, media, the
government, and society.
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An organization’s publics can affect the competitiveness of the company, and to some
extent, pose a threat to its survival.
Although there are many, only the factors that are directly relevant are considered. The
factors that indicate some level of uncertainty and may affect the organization (depending
on the business nature and product or service offering) are evaluated.
Economic Macroenvironment
The economic macroenvironment represents
economic factors that can directly affect an
organization.
Political-legal Macroenvironment
The political-legal macroenvironment
includes both political and legal
factors.
Sociocultural Macroenvironment
Demographic Macroenvironment
A company’s demographic
macroenvironment consists of changes in
population characteristics.
Technological Macroenvironment
Natural Macroenvironment
The natural macroenvironment refers to natural
resource inputs and environmental concerns.
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Market Research
Marketing research is a function under a business
organization’s Marketing Information (MkIS).
Some large companies maintain in-house marketing research, while others engage the
services of independent marketing research firms on a project basis. A number subscribes
to syndicated marketing research reports (such as reports prepared by IMS Health
Holdings, Inc. for the pharmaceutical industry).
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The Consumer Buying Process
The consumer process outlines consumer goes buying the steps a through when buying a
product/service. It is important for marketers to know this process to understand how
consumers buy.
Influencer – person who tries to convince others of the need for the product/service and
influences the purchase decision.
decider - the person who makes the final decision to purchase or makes the final decision
on any components such as what to buy, how to buy, where to buy, etc.
user —the person who actually uses the product/service whether or not he/she was
involved in the buying decision
Organizational Markets
Organzatonal markets are also widely dispersed geographically. There are three types of
organizational markets:
Industries are business organizations that purchase goods and services for the
purpose of producing other products and services or for use in their production and
operating processes.
Resellers are entities that buy goods and services in order to resell them at a profit
(most commonly distributors, wholesalers, and retailers)
Types of Organizational
Buying Decisions:
New task involves the purchase of products or services that the organization has
never bought before, or has not purchased for a long period of time
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Straight rebuy pertains to organizational purchases which have exactly the same
specifications as previously purchased
Deciders — parties who are empowered to make the purchase decision with regards
to product specifications or selection of suppliers
Buyers — responsible for the actual purchase; other than making the actual
purchase, buyers may be allowed to negotiate payment and/or credit terms, delivery
arrangements, and in some cases, even supplier selection
Gatekeepers — are individuals whose positions allow them to screen and/or prevent
supplier representatives and vital product/service information from reaching
participants who perform roles in the organizational buying decision; in some
instances, they may actually implicitly favor one supplier over another
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Consumer Segmentation Variables
Target Market
A company may, for example, decide its product’s target market to be:
“Males and females residing in Metro Manila to income classes who belong to income
classes A, B, and C, single, are between the ages 21 to 30, who are sports-minded and are
looking sports drink that can provide relief after strenuous physical activities.
positioning — the process of communicating the image of a brand into the minds of
stand out in comparison to its competitors
Unique — A brand must select a position that is not currently occupied by another brand.
Credible — Once a brand position is selected, it must ensure that it performs and fulfills
the promise of its position.
Perceptual mapping — This involves the identification of a com petitive brand’s position
using two variables or axes.
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Assessment
Essay
1. In 100-150 words, explain the importance of marketing research to a business
enterprise.
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