CHAPTER 3 :

THE MARKETING ENVIRONMENT & MARKET RESEARCH

Scanning The Marketing Environment

Analyzing needs and trends in the macroenvironment
- create new solutions to satisfy consumer needs.

Identifying and responding the major macroenvironment forces

-Uncontrollable factors that needs monitoring and responds such as : a) Demographic Environment (population, ethnic, education)

b) Economic Environment (income distribution, credit availability) c) Natural Environment (raw materials, pollution) d) Technology Environment (innovation, R&D) e) Political-legal environment f) Social cultural environment

Marketing Research Process

Define problem and research objective
Develop the research plan Collect the information Analyze the information Present the findings Make the decisions

Marketing Research Process

STEP 1 : Define problem, the decision alternatives and research objective
- Identifying the reason or problem for which research is to be conducted. - Defining problems not too broadly or too narrow

STEP 2 : Develop the research plan

a) Collect data sources b) Research approach
i- Observational research ii -Ethnographic Research iii- Focus Group Research iv- Behavioral Data v- Experimental Research

c) Research Instrument
i- Questionnaire iii- Mechanical devices ii- Psychological tools iv- Qualitative measures

d) Sampling Plan
i- Sampling unit iii- Sampling procedure ii- Sample size

e) Contact methods
i- mail questionnaire ii- Personal interviewing

STEP 3: Collect the information

- Collecting all relevant data and information - Variety of data collection methodologies to consider.

STEP 4 : Analyze the information

- Data collecting stage the collected data is edited, corrected if required and validated.

 STEP 5 : Present the findings

-Entire process is documented with respect to organizational standards so that it can be referred in future for decision making process or to change or modify any specific process or module. -Present findings that are relevant to marketing decision facing by management

STEP 6 : Make the decision

- Organization who commissioned the research need to weigh the evidence before making decision.

7 Characteristics of Marketing Research

Scientific Method
- Using scientific method such as observation, prediction, testing.

Research Creativity
-Develop innovative ways to solve a problems

Multiple Methods
- Using two or more multiple methods to increase confidence in the results

Interdependence of models and data - Recognize the data interpreted from underlying models that guide
the information sought.

7 Characteristics of Marketing Research

Value and cost of information
-Concern on the estimation value of information against cost.

Healthy skepticism
- Alert problems that caused by marketing myths

Ethical Marketing
-The misuse of marketing research can harm consumers