Chapter 1 - A decision making perspective on marketing intelligence. In this chapter, the following content will be discussed: Business intelligence, what is marketing intelligence? need for marketing intelligence, marketing planning process,...
Marketing Research Aaker, Kumar, Leone and Day Twelfth Edition Instructor’s Presentation Chapter One A Decision Making Perspective on Marketing Intelligence Marketing Research 12th Edition Business Intelligence • • • • BI is the ability to access data from multiple sources within an organization and deliver it to business users for analysis 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 anomalies in the business Marketing Research 12th Edition Business Intelligence Business Intelligence Financial Intelligence Management Intelligence Marketing Intelligence Customer Relationship Marketing/ Database Marketing Marketing Research Primary Sources Accounting Intelligence Secondary Sources Standardized Sources Provide data on Prospects Customers Competition Products/Markets Marketing Research 12th Edition What is Marketing Intelligence? Market intelligence (MI) is, “the process of acquiring and analyzing information in order to understand the market (both existing and potential customers); to determine the current and future needs and preferences, attitudes and behavior of the market; and to assess changes in the business environment that may affect the size and nature of the market in future.” Cornish S. L Marketing Research 12th Edition Need for Marketing Intelligence • • • • • • Producers have little direct contact with consumers (geographical distance and channel layers) Channel has little knowledge about customer attitudes, preferences and changing tastes Need to understand competition, without spying on them Management goals involve sales targets and market share achievement Need to identify successful new product developments early in the process to ensure growth and revenue maximization by finding a balance between costs and prices of products The need is to look at least 5 to 10 years in advance Marketing Research 12th Edition Domains of Marketing Intelligence si snoi or P d u c t ce D Ma co rke Ma mp t es rk eti tim in tiv at g & e io d ben n, ist ch rib ut io n Customer S egmentatio n decisions ng i rs c e i r d P ns ol d h n ke y a isio a t d c an de g s app r n B p i h e Ke Marketing Research 12th Edition 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) Marketing Research 12th Edition Role of Marketing Research in Managerial Decision Making Four Stages of Market Planning Process ▫ Situation analysis ▫ Strategy development ▫ Marketing program development ▫ Implementation Marketing Research 12th Edition 10 Marketing Planning Process Situation Analysis Strategy Development Marketing Program Development Understand the environment and the market • Identify threats and opportunities • Assess the competitive position • Define the business scope and served market segments • Establish competitive advantages • Set performance objectives • • • • • • Implementation • Product and channel decision Communication decisions Pricing Personal selling decisions Performance monitoring Refining strategies and program Marketing Research 12th Edition 11 Situation Analysis Analysis of ▫ Market environment ▫ Market characteristics ▫ Consumer behavior Research Approaches ▫ Organize information obtained from prior studies (secondary) ▫ Focus groups Marketing Research 12th Edition 12 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? Marketing Research 12th Edition 13 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: Segmentation decisions Personal selling decisions Product decisions Price decisions Distribution decisions Branding decisions Customer satisfaction decisions Advertising and promotion decisions Marketing Research 12th Edition 14 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 Costbenefit Analysis Marketing Research 12th Edition 15 Ethics in Marketing Research Ethics of the Sponsor ▫ ▫ ▫ Overt and covert purposes Dishonesty in dealing with suppliers Misuse of research information Ethics of the Supplier ▫ ▫ Violating client confidentiality Improper execution of research Abuse of Respondents ▫ Falsifying answers Marketing Research 12th Edition 16 Conquering Latino Homes • Hispanics account for nearly 17% of the U.S. population • Research shows that Hispanic market contribute more than $1.2 trillion towards purchasing power of multicultural population • Advertisement spending in the United States directed toward Hispanics increased by 11.1 percent from 2011 to 2012. • Marketers reportedly spent in excess of $8 billion dollars, up from $3 billion in 2003 • By 2050, Hispanic population would represent 25% of US population • What do you think the problem is? Marketing Research 12th Edition 17 End of Chapter One ... element of overall business strategy Representative Decisions that Draw on Marketing Research: Segmentation decisions Personal selling decisions Product decisions Price decisions Distribution decisions Branding decisions... e Ke Marketing Research 12th Edition 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 ... Monitor marketing performance • Improve understanding of marketing as a process (from AMA’s official definition of Marketing Research) Marketing Research 12th Edition Role of Marketing Research in