MR CH 1 SUMMARY

What is marketing?
• Marketing is an organizational function and a set of processes for creating, Communicating, and delivering value to customers and for
managing customer Relationships in ways that benefit the organization and its stockholders.
• Is the process whereby individual and groups obtain what they need and want through exchanging products and value with others at
profit.
➢ Marketing is used to create, keep and satisfy the customer. With the customer as the Focus of its activities.

Customer value: the difference between the values the customer gain from owning and Using product and the cost of obtaining it.
Customer satisfaction: the extent to which a products perceived performance match buyers expectations.
Marketing mix: the unique blend of product/service, pricing, promotion, and distribution strategies designed to meet the needs of a specific
target market.

➢ Marketing managers attempt to get the right goods or services to the right people at the right place at the right time at the right price,
using the right promotion technique. This may be accomplished by following the marketing concept, which is based on consumer
Orientation, goal orientation, and systems Orientation.
➢ To make the “right” marketing decisions, Marketing research is a primary channel for providing that information.
➢ Marketing research plays a key role in providing information managers need to shape the marketing mix. Marketing research has
grown in importance because of management’s focus on customer satisfaction and retention. It is also a key tool in proactive
management.

What is marketing research?

Marketing research as the systematic and objective identification, collection, analysis, and dissemination of information for the purpose of
assisting management in decision making related to the identification and solution of problems (and opportunities) in marketing.

This definition contains the following elements:

1. Identification: the marketing research involves defining problem (or opportunity) and determining the information that is needed to
address it.
2. Collection: which means that data must be obtained from relevant sources.
3. Analysis: which means that data are analyzed, interpreted, and inferences are drawn.
4. Dissemination of information: the findings, implications, and recommendations are provided in a format that makes this information
actionable and directly useful as an Input into decision making.

Functions of Marketing Research

Marketing research can be viewed as playing three functional roles: descriptive, diagnostic, and predictive.
1- Its descriptive function includes gathering and presenting statements of fact. e.g What is the historic sales trend in the industry?
What are consumers’ attitudes and beliefs toward a product?
2- The second role of research is the diagnostic function, wherein data and/or actions are explained. The explanation of data or actions.
3- predictive function Specification of how to use descriptive and diagnostic research to predict the results of a planned marketing
decision.

The Proactive Role of Marketing Research

• By having a thorough knowledge of factors that have an impact on the target market and the marketing mix, management can be
proactive rather than reactive.
• Proactive management modify the marketing mix to fit newly emerging patterns in economic, social, and competitive environments,
whereas reactive management waits for change to have a major impact on the fi rm before deciding to take action.
• Marketing research is an excellent tool for discovering opportunities in the marketplace.

External Marketing Environment

➢ Although managers can control the marketing mix, they cannot control elements in the external environment that continually mold
and reshape the target market.
➢ Over time, the marketing mix must be modified according to changes in the environment in which consumers and businesses exist,
work, compete, and make purchasing decisions.
➢ Some new consumers and businesses will become part of the target market, while others will drop out of the market; those who
remain may have different tastes, needs, incomes, lifestyles, and purchase habits than the original target consumers.
➢ Marketing research is a key means for understanding the environment. Knowledge of the environment helps a firm not only to alter
its present marketing mix, but also to identify new opportunities.

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Dalia Elaraby PPT by DR. Ola El Azzazy
 MR CH 1 SUMMARY
The Marketing Research Process.
Emphasize the importance of these steps since the entire research project will be conducted within this framework. Each step will be
discussed more fully throughout the course and this is simply an introduction to the general research process.

1. Problem definition: defining the marketing research problem or the to be addressed is the most important step because all other steps
will be based on this definition.
2. Developing an approach to the problem: this step involves formulating an objective or theoretical framework, analytical models,
research questions, and hypotheses and identifying the information.
3. Research design formulation: a framework for conducting the marketing research project that specifies the procedures necessary for
obtaining the required information.
- Formulating the research design involves the following steps:
• Definition of the information needed
• Qualitative research (survey, observation, and experimentation)
• Methods of collecting quantitative data
• Sampling process and sample size
• Plan of data analysis

4. Fieldwork or data collection: a field force (personal interviewing, phone, mail, or electronic surveys) gathers project data. While
seemingly trivial in nature, to obtain meaningful results field workers must be accurate and thorough in data collection.
5. Data preparation and analysis: the editing, coding, transcription, and verification of data allow researchers to derive meaning from the
data.
6. Report preparation and presentation: the findings are communicated to the client.

The report should address the specific research questions identified in the problem definition, describe the approach, the research design, data
collection and the data analysis procedures adopted, and present the results and the major findings.

Characteristics of MR

1- Continuous process:
• Marketing research is a continuous process because it begins with identifying marketing opportunity and determining customers needs
and then designing the suitable marketing mix that satisfy those needs.
• Also marketers need information to interpret their past performance and analyze current marketing environment.
• They need to develop knowledge on their particular markets and to evaluate their marketing efforts and solve problems that may
appear.

2- Systematic & scientific process:

Marketing research is systematic. Thus, systematic planning is required at all stages of the marketing research process. The procedures
followed at each stage are methodologically sound, well documented, and, as much as possible, planned in advance. Marketing research
uses the scientific method in that data are collected and analyzed to test prior notions or hypotheses.

3- Marketing research is objective:

It should be free from the personal or political biases of the researcher or the management. Research which is motivated by personal or
political gain. Such research is deliberately biased so as to result in predetermined findings.

4- Wide scope:
Marketing research has a wide scope. It includes product research, market research, consumer research, promotion research,
international market research, price research and distribution research.

Importance of MR

1. The emphasis in marketing is on the identification and satisfaction of customer needs. so that marketing strategies and programs can
be designed to satisfying those needs, marketing managers need information presented to him through marketing research.
Marketing research provides the information for decision makers at each step of the marketing decision process. It is the goal of
marketing research to provide relevant, accurate, reliable, valid, and current information to management in order to facilitate
managerial decisions.
2. As competition has become more intensive, managers need information on the effectiveness of their marketing tools.
3. Before introducing, new products those products are tested with the help of marketing research. Which helps in finding out
consumers’ responses to new products and develops a suitable marketing mix.
4. Aid to decision-making: MR helps the managers take practical decisions. Decisions based on experience and research is better than
decisions based on intuition. Functions such as description, evaluation, explanation and prediction by the marketing researcher help
in practical decision-making.

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 MR CH 1 SUMMARY
Decision to conduct marketing research

➢ The decision should be guided by a number of considerations including the costs versus the benefits, the resources available to
conduct the research, the resources available to implement the research findings, and management’s attitude toward research.
➢ Marketing research should be undertaken when the expected value of information it generates exceeds the costs of conducting the
marketing research project.
➢ In general, the more important the decision confronting management and the greater the uncertainty or risk facing them, the greater
the value of information obtained.

Who conduct marketing research

Categorize the two types of suppliers by their relationship to the client, internal or external.
• Internal supplier—a marketing research department located within the firm where all the marketing research staff members are
employees of the firm. Most major corporations have their own marketing research departments.
• External supplier—research suppliers that are not a part of the firm. The external supplier may offer the entire range of marketing
services including problem definition, developing an approach, questionnaire design, sampling, data collection, data analysis,
interpretation, and report preparation and presentation.

Selected Marketing Research Career Descriptions

• Vice President of Marketing Research: The senior position in marketing research. The vice president (VP) is responsible for the entire
marketing research operation of the company and serves on the top management team. This person sets the objectives and goals of the
marketing research department.
• Research Director: also a senior position. The research director has the general responsibility for the development and execution of all
the marketing research projects.
• Assistant Director of Research: Serves as an administrative assistant to the director and supervises some of the other marketing
research staff members.
• (Senior) Project Manager: Has overall responsibility for design, implementation, and management of research projects.
• Statistician/Data Processing Specialist: Serves as an expert on theory and application of statistical techniques. Responsibilities include
experimental design, data processing, and analysis.

Skills Required for A Successful Career In Marketing Research.

1. Good understanding of marketing principles.

2. Strong background in statistics and quantitative methods.
3. Ability to use mainframe, microcomputers, and the Internet.
4. Solid understanding of the behavioral sciences.
5. Solid understanding of marketing research ethics
6. Effective verbal and written communication skills.
7. Creativity and common sense.

The Relationship Between Marketing Research And MIS.

What is the meaning of marketing information system?

A marketing information System (MKIS) is a management information system (MIS) designed to Support marketing decision making.

➢ Explain to the students that information obtained by marketing research and other sources such as internal record keeping and
marketing intelligence becomes an integral part of the firm’s marketing information system (MIS).

➢ MIS provides information continuously rather than on the basis of ad hoc research studies. The design of an MIS focuses on each
decision maker’s responsibilities, style, and information needs.

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Dalia Elaraby PPT by DR. Ola El Azzazy