Marketing Research

Kumar, Leone, Aaker and Day

Thirteenth Edition
Instructor’s Presentation Slides
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Chapter One

A Decision Making
Perspective on
Marketing Intelligence

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Business Intelligence
• BI incorporates the entire process of reporting,
warehousing, data management, analysis of future
trends and presentation of transactional information, as
well as extraction and loading tools, to help users make
better decisions

• It links the disparate operational systems to the end

users of the data, thus creating an environment with free
flow of information

• It offers a reliable barometer of the business

performance

• It helps to analyze what is behind trends and

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anomalies
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Business Intelligence
Business Intelligence

Financial Management Marketing Accounting ...................

Intelligence Intelligence Intelligence Intelligence .

Marketing Customer Relationship

Research Marketing/ Database Marketing

Primary Sources Secondary Sources Standardized Sources

Provide data on

Prospects Customers Competition Products/Markets

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What is Marketing Intelligence?

Marketing intelligence (MI) is, “viewed in its totality as a

continuing and interacting structure of people, equipment,
and procedures to gather, sort, analyze and distribute
pertinent, timely and accurate information for use by
marketing decision makers to improve their marketing
planning, implementation and control.”
- T. W. Tan and Z. U. Ahmed

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Need for Marketing Intelligence

• Producers have varying levels of direct contact with consumers.

• Consumer-to-consumer interactions have become very common.

• Channels have varying amounts of knowledge about customer

attitudes, preference, and tastes.

• Need to understand competition, and be prepared to act quickly.

• Management goals involve sales targets and market share

achievement.

• Need to identify successful new offerings to ensure growth and

revenue maximization by finding a balance between costs and
prices of products.

• Although the future is uncertain, the need is to look at least 5 to 10

years in advance
• Pharmaceutical companies do it on a regular basis because they have to
plan for what happens when a particular patent expires. Technology
companies are always on the move in planning their next steps.
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Domains of Marketing
Intelligence
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Marketing Research
• Marketing Research, a critical part of Marketing
Intelligence helps by providing accurate, relevant and
timely (ART) information

Links consumer, customer, and public to the marketer

through information used to:
• Identify and define marketing opportunity and
problems
• Generate, redefine and evaluate marketing actions
• Monitor marketing performance
• Improve understanding of marketing as a process
(from AMA’s official definition of Marketing Research)

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Conquering Asian and Latino

Homes

• Hispanic population in the U.S. stood nearly at 57.5 million in July

2016.

• Asian Americans are presently the fastest growing ethnic group

in the U.S., estimated at more than 20 million in 2015.

• In the 2011 – 2016 period, while the overall U.S. population

increased by 3.7 percent, the Asian population increased nearly
17 percent, and the Hispanic population over 10 percent.

• Asians are projected to become the largest immigrant group in

U.S, overtaking the Hispanics in 2055.
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Role of Marketing Research in
Managerial Decision Making
Four Stages of Market Planning Process

▫ Situation analysis

▫ Strategy development

▫ Marketing program development

▫ Implementation

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Marketing Planning Process

Situation • Understand the environment and the market
Analysis • Identify threats and opportunities
• Assess the competitive position

• Define the business scope and served

Strategy market segments
Development • Establish competitive advantages
• Set performance objectives

• Product and channel decision

Marketing
• Communication decisions
Program
• Pricing
Development
• Personal selling decisions

• Performance monitoring
Implementatio • Refining strategies and program
n
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Situation Analysis
Analysis of
▫ Market environment
▫ Market characteristics
▫ Consumer behavior
Research Approaches
▫ Organize information obtained from prior
studies (secondary)
▫ Focus groups

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Strategy Development

Market Research Provides Information to

Assist Management With Three Critical
Decisions:

▫ What business should we be in?

▫ How will we compete?
▫ What are the objectives for the business?

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Marketing Program
Development
• Programs embrace specific tasks

• Action program usually focuses on a single objective in

support of one element of overall business strategy
Representative Decisions that Draw
on Marketing Research:
1. Segmentation decisions 5. Personal selling decisions

2. Product decisions 6. Price decisions

3. Distribution decisions 7. Branding decisions

4. Advertising and promotion 8. Customer satisfaction

decisions decisions

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Implementation
• Starts with decision to proceed with a new program or strategy
• Set specific measurable objectives for all elements of marketing
program
• Shift research focus to :
▫ "Did the elements achieve their objectives?"
▫ “Should the marketing program be continued, discontinued, revised or
expanded?"
Factors Influencing Marketing Research
Decisions
• Relevance
• Type and Nature of Information Sought
• Timing
• Availability of Resources
• Cost-benefit Analysis

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Ethics in Marketing Research

Ethics of the Sponsor
▫ Overt and covert purposes
▫ Dishonesty in dealing with suppliers
▫ Misuse of research information
▫ Disguising selling as research

Ethics of the Supplier

▫ Violating client confidentiality
▫ Improper execution of research

Abuse of Respondents
▫ Falsifying answers

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End of Chapter One