Module One

A Decision Making
Perspective on Marketing
Research

Business Intelligence
BI

is the ability to access data from

multiple sources within an organization for
the purpose of analysis.
It links the disparate operation 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.
The applications of BI tools are immense
and can be profitable across different
functions of an organization.
http://www.bi-dw.info/businessintelligenc
e/examples.htm

Business Intelligence

Finance & Accounting

Intelligence

Marketing Intelligence

HR Intelligence

Marketing Research

Define problem & info. needs

Look for existing data

Design study

Collect & Analyze data

Use & Report data for decision making

Back-End Analysis

Operations Intelligence

Need for Marketing

Intelligence
MI

focuses on the use of information

as a source of strategic advantage.
Need to have a thorough knowledge
of customers, their attitudes, tastes
and preferences.
Need to analyze competition for
benchmarking and making price,
product, market and segment
decisions.

Marketing Research
Marketing

Research, a critical part of Marketing

Intelligence helps by providing accurate,
relevant and timely (ART) information.

Function

of Marketing Research is to link an

organization to its market through
information
Identify and define marketing opportunity
and problems
Generate, redefine and evaluate marketing
actions
Monitor marketing performance
Improve understanding of marketing as a
process

Role of Market
Research
Specifies

information required

Designs

method for collecting

information

Manages

and implements data

collection process

Interprets

results &
communicates findings

Why study Marketing

Research
Careers

Research Organizations (e.g. A.C.

Nielsen, J.D. Power Associates,
,CRISIL etc.)
Marketing & Business Consultancies
(e.g. Arthur Andersen, Price
Waterhouse, McKinsey & Co, etc.)
Marketing Departments of
Businesses
Academia

Situations where MR knowledge

is essential
Your

boss wants to introduce a new

product and calls you for advice.
Your ad agency wants your business
to buy an expensive ad campaign.
Your MR consultants present their
findings about why your sales are
falling. Do you accept their reasons?
Your boss wants to reduce prices and
calls you for advice.

Why study Marketing

Research
Universal

belief numbers dont

lie
Increase chances of taking the
right decision
Increase confidence in your
recommendations

Definition of Marketing
Research

Marketing research is the

systematic (pre-planned) and objective

(measurable)
identification, collection, analysis, and
dissemination of information (information
goes from market to organization)
for the purpose of improving decision
making (providing factual basis for taking
a decision)
related to the identification of
opportunities and solution of problems in
marketing.

Role of Marketing Research

in Managerial Decision
Making
Four Stages of
Market Planning

Situation analysis

Process
Strategy development

Marketing program development

Implementation

Situation Analysis
The

analysis of the environment in which the

business operates

Market (sector-specific
production, etc.)

e.g.

demand

and

supply,

Economy (e.g. money supply, inflation, BOP, interest

rates, etc.)*
Consumer and society (buyer behavior, societal trends)
Technology (obsolescence, innovations, inventions)
Legal (laws regulating business)
Political (govt. attitudes to business and specific sectors)
Natural (effect of natural resources on business)

Usually focus on trends which impact the marketing

situation

Aspect of business
environment?
Depletion of forest cover
In
which business is interested?
Increased

demand for gasoline in China and

India
Fed drops interest rates by a quarter of a
point
Sensex rises by 100 points
Consumers increasingly prefer to buy online
Increasing trend in downloading songs from
the Internet
Growing popularity of satellite radio
Privileges to Manufacturing

Case: MP3 players

Identify

at least one aspect of the

external environment I-Pod would
be interested in researching:

Economic
Technological
Buyer behavior
Market
Legal

Situation Analysis Common

Marketing Research Questions
Describing the market:
How

big is the existing market?

How big is the potential market?
How fast is the market growing?
How brand loyal is the market?
What competitive products exist?
What is the supply situation in
the market?

Situation Analysis Common

Marketing Research Questions
Describing an organizations
market position:
What

market share does the

company hold?
What market segments exist and
which do we serve?
Who are our primary competitors?
What opportunities exist with
distribution channels?

Situation Analysis Common Marketing

Research Questions

Describing buyer behavior:

Who are our customers? (i.e.,
demographic, geographic,
psychographic segments)
How do buyers perceive our brand
and competing brands?
What is the repurchase rate for
our brand and competing brands?
How satisfied are customers with
our brand?
Where do customers buy? When
do they buy? Why do they buy?
How much do buyers like our
brand?

Role of Marketing Research

in Managerial Decision
Making
Four Stages of
Market Planning

Situation analysis

Process

Strategy development

Marketing program development

Implementation

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?

Strategy development
Common Marketing Research
What business should we be in:
Questions

What products should we offer (e.g. Why

did Apple get into the music business?)
What technologies should we use (e.g.
Should the TV industry go the LED or the
OLED way??)*
What market segments should we target
(e.g. Under Armour serious athletes or
even casual athletes?)
What distribution channels should we use
(e.g. FMCG- dealerships or Internet?)

Strategy development
Common Marketing Research
How will we compete
Questions

How do we differentiate ourselves / our

product from competition (e.g. Should
Lacoste be a premium brand or a mass
market brand?)
What attributes do consumers consider
to be important (e.g. toothpaste
whitening power or cavity protection?)
How do we compare to competition
(e.g. Pepsi and Coke who is winning?)

Strategy development
Common Marketing Research
What our the business objectives
Questions
Sales Profits
Market share
Service objectives (Car dealers low
prices or turnaround times)
Customer satisfaction (self-survey or
actual complaints)
Attitudes, etc.

Role of Marketing Research in

Managerial Decision Making
Four Stages of
Market Planning

Situation analysis

Process
Strategy development

Marketing program development

Implementation

Common Questions
Segmentation

which segment to target (e.g.

BMW should they introduce an economy car?)
Product How should the product be
positioned (Should Apple I-Pod be a premium
brand or a mass market brand?)
Distribution exclusive / mass distribution
(Barbie dolls should be sold exclusively
through Toysrus or even in Walmart?)
Advertising what appeals should be used
(e.g. Dolce & Gabbana super low-rise jeans
should they use over-the-top sex appeal in
their ads or not?)

Common Questions
Personal

selling which customers should

be approached personally (e.g. Epson
printers is personal selling an option?)
Price what price should be charged (e.g.
should Starbucks drop their prices?)
Branding how can brand loyalty be
increased (e.g. should TATA salt institute a
customer rewards program?)
Customer satisfaction how can it be
measured

Role of Marketing Research in

Managerial Decision Making
Four Stages of
Market Planning

Situation analysis

Process
Strategy development

Marketing program development

Implementation

Common questions Implementation

Did

the marketing program

achieve its objectives (e.g. did the
share a Coke campaign improve
Attitudes?)*
Should the marketing program be
modified, continued or terminated
(e.g. Madhuri Dixit in Olay ..white..
Whiter whitest white should
the company pull the campaign?)

Factors Influencing Marketing

Research Decisions
Yes
Time
Constraints
Is sufficient
time
available?

No

Yes

Availability
of Data
Is the
information
on hand
inadequate?

No

Yes
Nature of
Decision
Is the
decision of
considerable
importance?

No

Yes
Benefits vs.
Conduct
Costs
Does the value Marketing
of the research Research
exceed the cost?

No

Do not conduct marketing research!

Deciding Whether to Conduct

Market Research

Learning Objectives
To learn when marketing research
should and should not be conducted.

When Managers Cannot Agree on What They Need to

Know to Make a Decision
The wrong phenomena might be studied
When Decision-Making Already Exists
Further research may be redundant and costly
When the Costs of Conducting Research Outweigh the
Benefits
Potential new products with large profit margins may have
a greater potential

Table 1.1

The Decision Whether to Conduct Market Research

Market Size

Small Profit Margin

Small Cost likely to be

greater than benefit;
e.g., eyeglasses
replacement screw

Large Benefits likely to be

greater than costs;
e.g., Mothers Recipe Entree

Large Profit Margin

Possible benefits
greater than cost;
e.g., ultra expensive
sportswear

Benefits likely to be
greater than costs;
e.g.,medical equipment

Learning Objectives
Profound Impact of the Internet

To understand the importance of

marketing research.

Advantages of Internet Surveys

Rapid Development, Real Time Reporting
Dramatically Reduced Costs
Readily Personalized
Ease and Convenience Encourage Respondent
Participation
Contact the Hard-to-Reach

Learning Objectives
Profound Impact of the Internet

To understand the importance of

marketing research.

Other Uses of the Internet by Marketing Researchers

Replacement of libraries and printed materials

Distribution of requests for proposals
Collaboration between the client and the research
supplier
Data management and on-line analysis
Oral presentations of marketing surveys

WEB FEED
http://educationportal.com/academy/lesson/
marketing-research-definition-purpose-androle-in-marketing-strategy.html

Class Assignment
http://knowledge.wharton.upenn.

edu/article/what-marketers-need
-to-know-about-binge-buying/

STEPS IN MARKETING RESEARCH

5 key steps in Marketing

Research
1.

Define the Problem

2.

Collect the Data

3.

Analyse and interpret the data

4.

Reach a conclusion

5.

Implement your research

Define the Problem

In

this stage you need to identify

the actual problems that are
relating to the apparent symptoms.
What information is needed in
order to solve the problem?
For example, poor sales within a
business are not the problem, they
are the symptom of a larger issue
such as a weak marketing strategy.

Further business problems may

include:
Who

are your target customers?

What method could be
implemented to reach these
customers?
Who are your customers and what
advantages and disadvantages do
they have over your business?
What size is the consumer market
you are trying to engage?

Collect the Data

There

are two types of market research

that can be performed:
1. Primary research - involves collecting
information from sources directly by
conducting interviews and surveys, and by
talking to customers and established
businesses.
2. Secondary research - involves collecting
information from sources where the
primary research has already been
conducted. Such information includes
industry statistics, market research
reports, news paper articles, etc.

Collection methods and

techniques
Qualitative

research is where you seek

an understanding of why things are a
certain way. For example, a researcher
may stop a shopper and ask them why
they bought a particular product or
brand.
Quantitative research refers to
measuring market phenomena in a
numerical sense, such as when a bank
asks consumers to rate their service on
a scale of one to ten.

Analyse and interpret the

data

You must attach meaning to the

data you have collected during your
market research to make sense of it
and to develop alternative solutions
that could potentially solve your
business problem.
You should determine how the
knowledge you have gained through
researching your market can be
applied and used to develop
effective business strategies.

Reach a conclusion
With

the alternatives you have

developed to solve your problem in
mind, perform a cost-benefit analysis
of each alternative keeping in mind
the potentially limited resources
available to your business.
You may also need to perform further
investigation into each alternative
solution to arrive at the best decision
for your business in regards to
meeting consumer demands.

Implement your research

Put

your final solution into

practice.
Without

completing this step

your research could potentially

have been a waste of your time
and resources.

Marketing Research Agencies

in India
IMRB

International (Indian Market

Research Bureau)
IMRB has been responsible for
establishing the first and television
audience measurement system and
the first radio panel in the country
IMRB International's specialised
areas are consumer markets,
industrial marketing, business to
business marketing, social
marketing and rural marketing

RNB Research
RNB

Research specializes in
qualitative and quantitative
custom market research.
It has experience in most major
sectors, particularly consumer
products, media, retail, financial
services, food and beverages,
technology, telecommunications
and internet research.

Thank You