Ø The analysis and interpretation of empirical evidence (facts from observation or experimentation) to confirm or disprove prior conceptions
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EXHIBIT 1.1 A Summary of the Scientific Method
• The process includes:
Ø Specifying what information is required Ø Designing the method for collecting information Ø Managing and implementing the collection of data Ø Analyzing the results Ø Communicating the findings and their implications
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LEARNING OUTCOMES
After studying this chapter, you should be able to
1. Explain why marketing research is essential to business success 2. Define marketing research 3. Identify the difference between applied and basic research 4. Explain how marketing research is relevant to product, pricing,
v Customer-oriented—decisions are made with a conscious awareness of their effect on the consumer.
v Emphasis on long-run profitability rather than short-term profits or sales volume.
consumer-oriented Ø identify optimal pricing to maximize profitability Ø increase sales efficiency through effective use of
market data.
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The Managerial Value of Marketing Research for Strategic Decision Making
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Marketing Research: A Means for Implementing the Marketing Concept
• Marketing research can help:
Ø maximize customer satisfaction with purchase Ø identity after-sale services Ø prevent commercialization of products that are not
v Cross-functional perspective—marketing is integrated across other business functions.
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Business Orientations
• Product-oriented Firm
Ø A firm that prioritizes decision making in a way that emphasizes technical superiority in the product
Ø Marketing research can help a company achieve the goal of creating valuable experiences for customers.
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The Nature of Marketing Research
• Marketing research is one of the principal tools for answering questions because it:
Ø A central idea of marketing that involves focusing on how the firm provides value to customers more than on the physical product or production process
• Developing and implementing a marketing strategy involves four stages:
1. Identifying and evaluating market opportunities 2. Analyzing market segments and selecting target
process
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Marketing Research
• Marketing Research Defined
Ø The systematic and objective process of generating information for aid in making marketing decisions
• Production-oriented Firm
Ø A firm that prioritizes efficiency and effectiveness of the production processes in making decisions
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EXHIBIT 1.2 Business Marketing Orientations
Ø Links the consumer, customer, and public to the market through information used to identify and define marketing
Ø Generates, refines, and evaluates marketing actions Ø Monitors marketing performance Ø Underlines the understanding of marketing as a
• Basic Research
Ø Research conducted without a specific decision in mind that usually does not address the needs of a specific organization.
v Attempts to expand the limits of marketing knowledge in general
markets 3. Planning and implementing a marketing mix that
will provide value to customers and meet organizational objectives 4. Analyzing firm performance
promotion, and distribution decisions 5. Discuss how marketing research helps the firm develop and
implement strategy 6. Identify the situations that call for market research and those that
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Applied and Basic Marketing Research
• Applied Research
Ø Research conducted to address a specific marketing decision for a specific firm or organization.
v Is not aimed at solving a pragmatic problem.
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Marketing Research Examples
• AppliedБайду номын сангаасResearch:
Ø Should McDonald’s add Italian pasta dinners to its menu?
• Understanding the Value Equation
Ø Companies must produce bundles of benefits that consumers will view as valuable.
Ø Key questions:
v What do we sell? v How do consumers view our company? v What does our company/product mean? v What does our company/product mean?
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EXHIBIT 1.3 Long-Run Profitability
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Keeping Customers and Building Relationships
• Relationship Marketing
Ø The idea that a major goal of marketing is to build long-term relationships with the customers contributing to their success.