CHAPTER 1: The Role of Marketing Research (MKT 455)

Marketing channel

A network of interdependent institutions that performs the logistics necessary for consumption to occur.

Marketing orientation

for firms adopting the marketing concept. It emphasizes customer orientation, long-term profitability over short-term profits, and a cross-functional perspective.

Online sentiment analysis

using data indicating the total positive or negative mentions of a brand on the Internet to assess and understand the strength of the brand

Marketing concept

A central idea in modern marketing thinking that focuses on how the firm provides value to customers more than on the physical product or production process.

Supply chain

Another term for a channel of distribution, meaning the link between suppliers and customers.

2. Understand the difference between basic and applied marketing research.

Applied marketing research seeks to facilitate managerial decision-making. Basic or pure research seeks to increase knowledge of theories and concepts. Both are important. Applied research examples are emphasized in this text although practically all of the tools and techniques that are discussed are appropriate to either type of research. Some use the term market research to refer to applied research and marketing research to refer to basic research.

Relationship marketing

Communicates the idea that a major goal of marketing is to build long-term relationships with the customers contributing to their success.

Customer oriented

Describes a firm in which all decisions are made with a conscious awareness of their effect on the consumer.

Product oriented

Describes a firm that prioritizes decision making in a way that emphasizes technical superiority in the product.

Production oriented

Describes a firm that prioritizes efficiency and effectiveness of the production processes in making decisions

3. Understand how the role of marketing research changes with the orientation of the firm.

Every company has a particular operating orientation. Production-oriented companies emphasize producing outputs as efficiently as possible. Generally, this leads to an emphasis on low- cost production and low-cost positioning in the marketplace. Product-oriented companies emphasize producing a sophisticated product that is also technologically advanced. Firms that are oriented around the marketing concept become very consumer oriented. Market-oriented firms view all employees as customers who need marketing intelligence to make good decisions. Stakeholder oriented companies try to balance concerns of all internal and external constituencies, including consumers. Marketing-oriented and stakeholder oriented companies tend to do more marketing research and emphasize marketing research more than do other firms.

Promotion research

Investigates the effectiveness of advertising, premiums, coupons, sampling, discounts, public relations, and other sales promotions.

Pricing

Involves finding the amount of monetary sacrifice that best represents the value customers perceive in a product after considering various market constraints.

5. Know when marketing research should and should not be conducted.

Marketing managers determine whether marketing research should be conducted based on (1) time constraints, (2) availability of data, (3) the nature of the decision to be made,and (4) the benefit of the research information versus its cost. Research should only be conducted when time is available, relevant data can be found and does not already exist, the decision can be shaped by information, and the benefits outweigh the cost of doing the research.

4. Be able to integrate marketing research results into the strategic planning process.

Marketing research is a means of implementing the marketing concept, the most central idea in marketing.The marketing concept says that a firm must be oriented both toward consumer satisfaction and toward long-run profitability (rather than toward short-run sales volume). Marketing research can help implement the marketing concept by identifying consumers' problems and needs, improving efficiency, and evaluating the effectiveness of marketing strategies and tactics.The development and implementation of a marketing strategy consist of four stages: (1) identifying and evaluating opportunities, (2) analyzing market segments and selecting target markets, (3) planning and implementing a marketing mix that will provide value to customers and meet the objectives of the organization, and (4) analyzing firm performance. Marketing research helps in each stage by providing information for strategic decision-making. In particular, marketing research aimed at the marketing mix seeks information useful in making better decisions about product design, promo- tion, distribution, and pricing.

1. Know what marketing research is and what it does for business.

Marketing research is the application of the scientific method in searching for the truth about market and marketing phenomena. Research applications include defining marketing opportunities and problems, generating and evaluating marketing ideas, monitoring performance, and generally understanding the marketing process and the way consumers extract value from consumption.Thus, it is the intelligence-gathering function in business.This intelligence assists in decisions ranging from long-range planning to near- term tactical decisions.Although many business decisions are made "by the seat of the pants" or based on a manager's intuition, this type of decision making carries with it a large amount of risk. By first researching an issue and gathering intelligence on customers, competitors, and the market, a company can make a more informed decision.The result is less risky decision making.

Integrated marketing communication

Means that all promotional efforts (advertising, public relations, personal selling, event marketing, and so forth) should be coordinated to communicate a consistent image.

Marketing metrics

Quantitative ways of monitoring and measuring marketing performance.

6. Appreciate the way that technology and internationalization are changing marketing research.

Technology has changed almost every aspect of marketing research. Modern computing and media technologies including smart devices (phones, watches, tablets, etc.) and social networking make data collection, study design, data analysis, data reporting, and practically all other aspects of research easier and better in many respects. Researchers do have to be aware of the multiple ways that companies interact with consumers. Furthermore, as more companies do business outside their own borders, companies are doing research in an international marketplace. This places a greater emphasis on research that can assess the degree to which research tools can be applied and interpreted the same way in different cultures.Thus, research techniques often must culturally cross-validate results.

Promotion

The communication function of the firm responsible for informing and persuading buyers.

Integrated marketing mix

The effects of various combinations of marketing-mix elements on important outcomes.

Scientific method

The way researchers go about using knowledge and evidence to reach objective conclusions about the real world.

Culturally cross-validate

To verify that the empirical findings from one culture also exist and behave similarly in another culture.

Total value management

Trying to manage and monitor the entire process by which consumers receive benefits from a company.

Stakeholder orientation

recognizing that multiple parties are affected by firm decisions.

Geo-demographics

refers to information describing the demographic profile of consumers in a particular geographic region.

Performance-monitoring research

refers to research that regularly, sometimes routinely, provides feedback for evaluation and control of marketing activity.

Applied Marketing Research

research conducted to address a specific marketing decision for a specific firm or organization.

Basic marketing research

research conducted without a specific decision in mind that usually does not address the needs of a specific organization. It attempts to expand the limits of marketing knowledge in general and is not aimed at solving a particular pragmatic problem.