Principles of Marketing - Carson College of Business

Report
Ice Breakers
• Name
• Where you were born
• Most interesting and/or fun thing you did over break
• What you like best about WSU/Pullman
Discussion Questions
• What is marketing?
• What is marketing research?
• How does marketing research play a role in managerial
decision-making?
• What are the different steps in a marketing research project?
Role of
Marketing Research
in Managerial Decision-Making
Chapter 1
What is Marketing?
• American Marketing Association Definition:
• 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 stakeholders.
• In sum, marketing is about…
• meeting needs
• delivering value to all people affected by a transaction
• getting the right product to the right folks at the right time/place for the
right price using an appropriate combination of promotional techniques
(the four Ps)
What is Marketing Research?
• American Marketing Association (p. 4 in your book):
• …the function that links an organization to its market through the
gathering of information. This information allows for the identification
and definition of market-driven opportunities and problems and allows
for the generation, refinement and evaluation of marketing actions. It
allows for the monitoring of marketing performance and improved
understanding of marketing as a business process.
• Malhotra & Peterson (2006, p. 5):
• …the systematic and objective identification, collection, analysis,
dissemination, and use of information that is undertaken to improve
decision making related to identifying and solving problems (also known
as opportunities) in marketing.
• Feinberg et al. (2008, p. 4):
• … the systematic process of using formal research and consistent data
gathering to improve the marketing function within an organization.
This information is used to identify opportunities and problems,
monitor performance, and link marketing inputs with outputs of
interest, such as awareness, satisfaction, sales, share and profitability.
The “Marketing Concept”
• Need for marketing research based on “marketing concept”
• Idea introduced in 1952, GE’s Annual Report:
• The (marketing) concept introduces the marketer at the beginning
rather than at the end of the production cycle and integrates
marketing into each phase of the business. Thus, marketing,
through its studies and research, will establish for the engineer, the
designer, and manufacturer, what the customer wants in a given
product, what price he (or she) is willing to pay, and where and
when it will be wanted. Marketing will have authority in product
planning, production scheduling, and inventory control, as well as
in sales, distribution, and servicing of the product.
• Gave rise to the “Marketing System”
• Conceptual model linking Independent Variables (causes) to
Dependent Variables (outcomes)
• Understanding the link between IVs and DVs (and reducing
uncertainty) is a key function of marketing research 
Marketing System
Independent Variables
Marketing Mix
(controllable)
Pricing
Promotion
Product
Distribution
Situational Factors
(uncontrollable)
Demand
Competition
Legal/political
Economic climate
Technology
Gov regulation
Dependent Variables
Understanding relationship
between IVs and DVs
is a key function of MR
Behavior
Awareness
Knowledge
Liking
Preference
Intent to buy
Purchase
Performance
Measures
Sales
Market share
Profit
ROI
Image
From Feinberg et al. (2008)
The Decision-Making Process
1. Recognize a unique marketing problem or opportunity
2. Clarify the decision (what do we need to know?)
3. Identify alternative courses of action
4. Evaluate the alternatives
5. Select a course of action
6. Implement selected course of action and monitor results
From Feinberg et al. (2008)
Common Questions Addressed
by Marketing Researchers
•
Where are new market opportunities (based on macroenvironmental trends)?
•
How should we segment the market (based on customer characteristics)?
•
How are we doing (compared to the competition)? Are consumers satisfied with our
product or service? If not, what should we improve?
•
How should we position our product (relative to the competition)?
•
How will people respond to a new product concept? Test marketing…
•
If our product is priced at $100, what will be the expected demand?
•
How effective is our advertising? Promotions? Sales force?
•
What’s in store for the future, and how should we adapt?
Marketing Research Process:
Transforming Data into Information
Chapter 2
Overview
• Types of Marketing Research Firms
• When is Marketing Research Needed?
• Decision-Makers vs. Researchers
• Iceberg Principle: Symptoms vs. Underlying Problems
• Steps in Marketing Research
• Elements in a Marketing Research Proposal
• Unethical Activities in Marketing Research
Marketing Research Industry
Research Supplier
Internal
External
Full Service
Syndicated
AC Nielsen
Customized
Synovate
Limited Service
Internet
Greenfield
On-Line
Field
Services
Data Coding
and Entry
Data
Analysis
Field Work
Chicago
Davis
Coding
Group
SDR
Atlanta
Malhotra & Peterson (2006)
Decision
Maker
Exhibit 2.3
When is Marketing Research Needed?
Type of
information
Nature of
decision
Can decision problem be resolved
with subjective information?
NO
Is problem of strategic importance?
YES
NO
Don’t undertake the
Info research process
Bring in
Marketing Researcher
YES
Availability
of data
Is secondary data inadequate for
addressing the problem?
YES
NO
Time
constraints
Is there enough time to collect
data for managerial decision?
YES
Are there enough resources
($, people) to carry out the study?
NO
Resources
required
NO
YES
Cost/Benefit
Ratio
Does value of research
outweigh costs of research?
YES
NO
Do undertake the
Info research process
When NOT to conduct research…
1. Sufficient information for a decision already exists
2. Insufficient time for research – must make an immediate decision
3. Insufficient resources for research
4. When costs of research are greater than its benefits
Components of the Research Proposal
1. Purpose of proposed research plan (problem, objectives)
2. Type of study (e.g., exploratory, causal, primary, secondary etc.)
3. Define target population and sample size
4. Describe sampling technique and actual data collection methods to be used
5. Research instruments to be used
6. Possible managerial benefits
7. Proposed cost of whole project
8. Describe primary researchers and research firm
9. Proposed tables (how data might be presented)
Researchers vs. Decision-Makers
Researchers
Decision-Makers
• Like to explore new questions
• Want info to confirm decision
• Can tolerate long investigations
• Want quick information
• Not concerned about cost
• Less willing to pay for more info
• Enjoy surprises
• Dislike & reject surprises
• Tentative; speak in probabilities
• Decision- and results-oriented
• Interested in past behavior
• Interested in future performance
Iceberg Principle: Symptoms vs. Problems
Four Broad Phases in Information Research
Ten steps 
Ten Steps in Information Research
Step 1:
Identify and Clarify Information Needs
• The researcher must work with the decision-maker (requestor) to…
• Understand the reason for the research request
• Help decision maker separate out symptoms (e.g., low sales) from
causes (e.g., poor quality products)
• Figure out unit of analysis: Individuals ? Couples? Families?
• Narrow down independent variables (causes) and dependent variables
(consequences)
Step 2:
Specify Research Questions
and Define Research Problem
• Most important step, because it influences all remaining steps
• Initial research question
• Will Boise support new stadium and a move from Single-A to Triple-A?
• Revised research questions
• Your questions?
Step 3:
Confirm Research Objectives and
Evaluate the Value of the Information
• Building on the research questions, develop specific objectives of the
research project and figure out the value of the information. For example,
our objective is to find out:
• Will Boise residents (and surrounding area) support a new stadium?
• How many games would they be willing to attend with new stadium?
• Would they attend more games if the Hawks were Triple-A?
• How much more are they willing to spend if new stadium and Triple-A?
Step 4:
Determine Research Design and Data Sources
•
Exploratory
• Unstructured or semi-structured data collection on a limited group of
respondents
• Focus groups, interviews, pilot studies
• Can be used to develop future studies
•
Descriptive
• Describes existing characteristics of a target population
•
Causal
• Manipulate an independent variable (e.g., in-store music) and observe effect on
dependent variable (e.g., sales)
Step 5:
Determine Sample Plan and Size
•
Census (a survey of all those in the target population) vs. a Sample (a smaller
group of respondents who are representative of the target population)
Step 6:
Assess Measurement Issues and Scales
•
Goal here is to determine what level of information is needed and to choose
reliable and valid measures to assess the constructs of interest.
Step 7:
Pretest the Questionnaire
•
A small group of respondents completes the questionnaire and provides feedback
on it so any adjustments can be made before final sample completes it.
Step 8:
Collect and Prepare the Data
•
•
Interviewer-administered/self-completed questionnaires or observation
Data must be coded (female = 1; male = 2) and cleaned up (look for errors)
Step 9:
Analyze the Data (the Fun Part)
•
Assess frequencies, relationships, cause and effect
Steps 10 & 11:
Transform Data (Results) into Information
Prepare the Final Report
•
•
Interpret what the results mean. Answer the “so what?” question.
Prepare the final report.
Unethical Activities…
•
by Client (End User)
• Solicit proposals, but choose none. Use proposals as a guideline for how to
conduct one’s own study.
• Promise a long-term relationship to get a low introductory rate, but then
never follow through with more projects
•
by Researcher
• Unethical pricing: promise low price, then jack it up
• Fail to provide (promised) incentives to research subjects
• Abuse respondents; promise short survey that turns into an hour; pass along
information without permission; collect information without permission
• Selling useless research services
• Interviewers make up data (“curbstoning” or “rocking chair” interviewing)
• Interviewers create “phantom” data (duplicate actual data to boost sample)
• Change or fail to report results in an effort to reach a certain conclusion
•
by Respondent
• Give misleading responses (can include “socially desirable” responding)

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