MKTG121
Introduction to MR
Map of Marketing Management:
Macro
Environment
Microenvironment
Consumer Heterogeneity:
Marketing and Other Stimuli: Product, Price, Place, Promotion, Economic,
Technological, Political, Cultural
Buyer’s Black Box: Buyers Decision Process, Characteristics affecting consumer
behavior
Buyers Response: Product Choice, Brand Choice, Dealer Choice, Purchase Timing,
Purchase Amount.
Marketing environment and related problems:
Economic: Purchasing power and buying patters
Technological: Sources of new product ideas
Political/Legal: Rules of playground
Cultural/Social: a society’s structure, values or views
Competitive: monitor the enemy
Marketing Decision Problems -Product
• What new features to add
• How to balance your product portfolio
• Whether to use a product differentiation strategy
• What is the best product positioning
• What brand name to use
• Whether to use individual branding?
• Whether to use product bundling or product lining
• What logo/words to use
• Product Life Cycle considerations
• If in a global market: Extension? Adaptation? Invention?
Marketing Decision Problems – Price
How to set the price?
-cost-plus pricing
-demand based or value-based pricing
-competitor indexing
Should there be a single price or multiple pricing? Should prices change in various
geographical areas (zone pricing)?
Price skimming strategy or penetration pricing strategy?
Are there legal restrictions on retail price maintenance or price discrimination?
What is the chance of getting involved in a price war?
Marketing Decision Problems - Promotion
Pull/ Push strategy?
Advertising
• Which channel? How frequent?
• Budget?
• Techniques?
• Pressure/Repetition/Appeal to emotion/Association/Slogan
Public Relations
• Publicity events?
• Press conferences/Press releases?
Sales Promotion
• Coupons?
• Discounts and sales?
• Point of purchase displays?
• Rebates?
Personal Selling
• Direct sale?
• Agency based?
Marketing Decision Problems - Place
What are my distribution channels?
Should the product be sold through a retailer? Through wholesale?
Where/When should the product or service be available?
Should distribution be exclusive, selective or extensive?
Should channel relationships be informal or contractual?
Should channel members share advertising (referred to as co-op ads)?
Decision Making
The mental processes (cognitive process)resulting in the selection of a course of
action among several alternative scenarios
Both Art and Science
• Intuitive thinking and systematic thinking
Complexity of Marketing Decision Making
•Individual behaviors vs. total market responses (buyers are not all rational!)
• Marketing-mix interaction (e.g., pricing and promotion)
• Competitive effects
• Delayed responses
• Multiple territories
• Functional interactions
• Company’s multiple goals
• Operation environment
Two Types of Marketing Research
Research on markets
• Market Potential Research
• Market Share Research
• Business/ Industry Trend Research
Research on actions on markets
• Product Research
• Pricing Research
• Promotion Research
• Place (Distribution) Research
Role of Marketing Research
Three functional roles of MR
• Descriptive function
Gathering and presenting statements of fact
• Diagnostic function
Data/actions are explained
• Predictive function
Predict the results of a planned marketing decision
Marketing Research Definition (AMA official version)
The function that links the consumer, customer, and public to the marketer through
information – information used to identify and define marketing opportunities and
problems; generate, refine, and evaluate marketing actions; monitor marketing
performance; and improve understanding of marketing as a process. Marketing
research specifies the information required to address these issues, designs the
method for collecting information, manages and implements the data collection
process, analyzes, and communicates the findings and their implications.
Marketing Research Definition
The process of
• Designing
• Gathering
• Analyzing
• Reporting
information that may be used to solve a marketing
problem
PART II
MDP, MRP, and MRQ
Marketing Decision Problems – Product
What new features to add
How to balance your product portfolio
Whether to use a product differentiation strategy
What is the best product positioning
What brand name to use
Whether to use individual branding?
Whether to use product bundling or product lining
What logo/words to use
Product Life Cycle considerations
If in a global market: Extension? Adaptation? Invention?
Management Decision Problem Marketing Research
Problem
Should a new product be introduced What is consumers
purchase intention for the
proposed new product?
What is the industry trend
regarding this
product category?
Should the Ad campaign be changed Have customers preference
changed (e.g. from
price to quality)?
How Effective the current advertising
campaign is?
Should the price of the brand be increased What are the impacts on
sales and profits of
carious levels of price changes
Marketing Research Problem (MRP) Marketing Research
Question (MRQ)
What is consumers purchase intention for product Whether consumers are
willing to buy this
product.
How frequently consumers will buy
this
Product.
