Marketing Research Module-1 PDF

Preview

Summary

PAMANTASAN NG LUNGSOD NG PASIGAlcalde Jose St., Kapasigan, Pasig City COLLEGE OF BUSINESS AND ACCOUNTANCYMARKETINGRESEARCHMODULEOVERVIEWThis module aims to provide students with both theoretical and practical understanding of marketing research, how it is designed, conducted and assessed. More speci...

Description

PAMANTASAN NG LUNGSOD NG PASIG Alcalde Jose St., Kapasigan, Pasig City COLLEGE OF BUSINESS AND ACCOUNTANCY

MARKETING RESEARCH MODULE OVERVIEW This module aims to provide students with both theoretical and practical understanding of marketing research, how it is designed, conducted and assessed. More specifically, this module offers the relevant framework for making the right decisions involved in marketing research. The module is organized around the stages of a marketing research project (e.g. problem definition, design, data collection, data analysis, and documentation).

After completing this module, students will be able to demonstrate their understanding of the knowledge gained in each step of the marketing research process by applying theoretical concepts to a practical context in order to prepare students for their research. Addressing different student learning styles, the following teaching and assessment methods are applied in this course: Pre-readings, preliminary activities, discussion, post-activity, consultation, class discussions, case studies, group assignment and major exam.

CONTENT OUTLINE Module 1 Marketing Research: An Overview Objectives Preliminary Activity Discussion Definition of Marketing Research Marketing Research Definition Market Research Definition Importance of Marketing Research Functions of Marketing Research Scope of Marketing Research Limitations of Marketing Research Definition of Research Categories of Research Products that Failed in the Market Post-Activity Evaluation

COURSE LEARNING OUTCOMES Upon completion of the course, the students will be able to: A. Cognitive 1. Identify the marketing problem/s to aid in decision making. 2. Discuss the stages in marketing research process.

3. Differentiate research designs. 4. Identify the sources of marketing information and the various means of gathering such information.

B. Psychomotor 1. Retrieve primary and secondary data to solve the marketing problem. 2. Compute sample size using probability sampling techniques. 3. Solve a marketing problem based on integrative research evidence/s. 4. Prepare marketing research. 5. Present the marketing research in class.

C. Affective 1. Conform to marketing research ethics in addressing the marketing problem . 2. Demonstrate sensitivity to the biases and limitations of marketing data. 3. Contribute dynamically as a team member.

OBJECTIVE S After going through this module, you are expected to:

1. Define marketing research. 2. Differentiate market and marketing research. 3. Cite the importance of marketing research. 4. Discuss the functions of marketing research. 5. Explain in one's own words the scope of marketing research. 6. Identify the marketing research limitations. 7. Distinguish basic and applied research. 8. Determine the reasons why some products failed in the market.

PRELIMINARY ACTIVITY 1. Indicate the title of your Thesis in Grade 11 ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ 2. Indicate the title of your Feasibility Study in Grade 12 ________________________________________________________________ ________________________________________________________________ ________________________________________________________________

MODULE 1 MARKETING RESEARCH: AN OVERVIEW

DISCUSSION The principal task of marketing management is to fulfill the aspirations of the consumers. It is imperative therefore to understand what the consumers want; how they make various choices; or what they sources of information and influence process are. Thus, marketing research is the function that provides the necessary information about the consumer to the marketer. In the process, an organization can identify new opportunities in the market, evaluate and monitor marketing actions and, in general, evolve a better marketing programme to serve

the interests of the consumer. Thus, marketing research acts as the link between the consumer and the marketer.

WORD SEARCH

1.1 Definition of Marketing Research The American Marketing Association officially defines marketing research as: Marketing Research is the function that links the consumer and public to the marketer through information - information used to identify and define marketing opportunities and problems; generate, refine and evaluate marketing actions; monitor marketing performance and improve understanding of marketing as a process. Marketing research specifies the information required to address these issues, designs the method for collecting information, manages and implements the data collection process, analyses and communicates the findings and their implications. the systematic gathering, recording and analyzing of data relating to the marketing of goods and services‘. This definition highlights the role of marketing research as an aid to decision making. An important feature is the inclusion of the specification and interpretation of needed information. Too often, marketing research is considered narrowly as gathering and analyzing of data for someone to use. Firms can achieve and sustain a comprehensive advantage through the creative use of marketing information. Hence, marketing research is defined as information input to decisions, not simply the evaluation of decisions that have been made. Market research alone, however, does not guarantee success; the intelligent use of market research is necessary for business achievement. A competitive edge is more the result of how information is used than of who does or who does not have the information. Marketing research (also called consumer  research) is a form of business research. The field of marketing research as a statistical science was pioneered

by Arthur Nielsen with the founding of the ACNielsen Company in 1923. Marketing research is a systematic and objective study of problems pertaining to the marketing of goods and services. It is applicable to any area of marketing. Research is the only tool an organization has to keep in contact with its external operating environment. In order to be proactive and change with the environment simple questions need to be asked: • What are the customer needs and how are they changing? How to meet these changing needs? What do the customers think about existing products or services? What more are they looking at? • What are the competitors doing to retain customers in this environment? Are their strategies exceeding or influencing yours? What should you do to be more competitive? • How are macro and micro environmental factors influencing your organization? How will you react to this environment? Authors have defined Marketing Research in many ways: • Kotler (1999) defines marketing research as systematic problem analysis, model-building and fact-finding for the purpose of improved decision-making and control in the marketing of goods and services. • Richard Crisp defines marketing research as the systematic objective and exhaustive research for and study of the facts relevant to any problem in the field of marketing. • Clark and Clark have defined marketing research as the careful and objective study of product design, markets, and such transfer activities as physical distribution and warehousing, advertising and sales management. • Green and Tull have defined marketing research as the systematic and objective search for and analysis of information relevant to the identification and solution of any problem in the field of marketing. Marketing research helps in achieving this. Marketing research is systematic and logical way of assessing ways of satisfying customer needs. According to all the above definitions, Marketing Research starts by stating the

problem or the issue to be investigated; indicate what kind of information is required to resolve the problem; identify where and how to get it; specify the methodology for analyzing the research findings; sum up the research findings and then suggest the best solution for marketing decision making.

Figure 1. Market Research vs. Marketing Research

Marketing Research Definition Marketing Research, on the other hand, involves research related to marketing. It includes the marketing mix (product, price, promotion, place) and consider the types of research that relate to one of the four P’s. Examples include advertisement testing, product concept testing (e.g. usability testings), pricing research, channel research, etc.Market

Research Definition

Market Research refers to research that pertains to markets.  This is where you will dig into things like market trends (political, economic, socio-cultural, technological, legal, environmental or PESTLE), market players (direct and indirect competition), target market attributes, customer wants and needs, etc. Market research is viewed to be a broader phase than marketing research.

Overla p You’ll notice that many of the same items have been mentioned in each definition. Things like pricing, product attribute research, and competitive research are both related to the general market and the overall marketing effort.

1.2 Importance of Marketing Research Roque (2020), wrote an article on the 7 reasons why Marketing Research is important to a business, as follows: 1. Easily Spot Business Opportunities After undertaking a market research, it'll be revealed to the business who they want to reach out to (target customers), where they can reach them (marketing channels), and what they're interested in. Once these have been defined, the business would be able to easily spot business opportunities. 2. Lower Business Risks According to the Small Business Administration (SBA) Office of Advocacy's 2018 Frequently Asked Questions, roughly 80% of small business survive the first year. The way to make sure that the business survives for longer is to ensure that it got a steady stream of sales and customers. To do that, the business needs market research. 3. Create Relevant Promotional Materials If the business ever wondered what text or images to put on their fliers, website, or social media accounts, with thorough market research, the business would know exactly what to do. Since target customers have already expressed all their wants, needs, and frustrations with the business, the business would know exactly what to address and how to address it when they start creating their marketing materials. 4. Know Where to Advertise One of the problems that small business owners face is a limited budget. Because of this, the business marketing budget should be optimized to give the business best returns possible. The market research can help ensure that the business is reaching the intended audience in the channels where they’re most likely to see your message. 5. Outsell Competitors The business that knows their customers more tends to win more. If the business can beat their competitors at finding out the customers’ needs and business aim to fulfill those needs, the business got a better chance of standing out from the competition. 6. Set Better Goals for the Business When business owners set goals for their business, it’s typically related to growth in sales or customers. But without market

research, the business won’t be able to know if their goal is achievable and how to achieve it in the first place. 7. Makes Decision-Making Simple The need for and importance of marketing research frequently comes up when making tough business decisions. Instead of having arbitrary criteria for the decisions one makes as a business owner, the business owner can always go back to the market research report. Based on the report, will the decision lead to more customers? Will the business be able to reach more people who are likely to buy? Will it be clear to the customers that the business can meet their needs? While not all decisions should be solved by market research, many of them can be, such as: • where

to spend your advertising or marketing budget

• whether

there’s a demand for a new product you want to make • if you should open a storefront in a new location • which

products to discontinue and which ones to merely improve • how to price all your offers

There's a real need for market research because it provides the business with solid facts. Through market research, the business would make more informed decisions rather than resting the fate on guesswork.

1.3 Functions of Marketing Research Marketing decisions involve issues that range from fundamental shifts in the positioning of a business or the decision to enter a new market to narrow tactical questions of how best to stock a grocery shelf. The context for these decisions is the market planning process, which proceeds sequentially through four stages: 1. Situation Analysis 2. Strategy Development 3. Marketing Programme Development 4. Implementation The evaluation of past strategic decisions serves as an input to the situation assessment and thus it is a never-ending process. Situation Analysis Situation analysis is a marketing term and involves evaluation the situation and trends in a particular company's market. Situation analysis is often called the three C's, which refers to the three major elements

that must be studied. ● Customers ● Costs ● Competition The number of C's is sometimes extended to four, five or even six, with "Collaboration", Company and Competitive advantage being added. Effective marketing strategies are built on an in-depth understanding of the market environment of the business and the specific characteristics of the market. The microenvironment includes political and regulatory trends, economic and social trends, and technological trends. Marketing researchers tend to focus on those trends that affect the demand for products and services. Strategy Development A Strategy is an organization's plan to achieve its mission - which is the purpose for the organization's existence. The development process involves three conceptual ways in which firms achieve their mission: ● Differentiation ● Cost leadership ● Response Marketing Research provides significant help in finding answers to these questions: What business should we be in? What products or services should we offer? What technologies will we utilize? Which market segments should we emphatize?

Marketing research is essential for getting answers to three key questions about differentiation: What are the attributes of the product or services that create value for the customer?Which attributes are most important? How does the company compare with their competitors? Marketing research is needed to establish both the market share and the level of customer satisfaction. An objective is a desired performance result that can be quantified and monitored. Market Programme Development Programmes embrace specific tasks such as developing a new product or launching a new advertising campaign. An action programme usually focuses on a single objective in support of one element of the overall business strategy. This is where the bulk of ongoing marketing research is directed. Segmentation Decisions ● Which segment should be targeted? ● What benefits are most important for each segment? ● When should geographic area be entered? Product Decisions ● What product features should be included? ● How should the price be positioned? ● What type of package is preferred by the customers? Distribution Decisions ● What type of retailer should be used? ● What should be the mark-up

policy? ● Should a few outlets or many outlets be employed? Advertising and Promotion Decisions ● What appeals should be used in advertising? ● In which medium should the advertising be placed? ● What should be the budget? ● What sales promotion should be used and when should it be scheduled? Personal Selling Decisions ● What customer types have the most potential? ● How many salespeople are needed? Price Decisions ● What price level should be changed? ● What sales should be offered during the year? ● What response should be made to a competitor's price? Branding Decisions ● What should be the name, symbol, logo and slogan that will be associated with the product? ● What is the position that the brand should adopt vis-a-vis the competition? ● How can the brand loyalty be increased? Customer Satisfaction Decisions ● How should customer be satisfaction be measured?

● How often should it be measured? ● How should customer complaints be handled? Implementatio n Implementation: Implementation is the carrying out, execution, or practice of a plan, a method, or any design for doing something. Hence, implementation is the action that must follow any preliminary thinking in order that something may actually happen. The beginning of the implementation phase is signaled by a decision to proceed with a new programme or strategy and by the related commitments to objectives, budgets and time tables. At this point, the focus of marketing research shifts to questions as:

1. Did the elements of the marketing programme achieve their objectives? 2. How did sales compare with the objectives? 3. In what areas were the sales disappointing? Why? 4. Were the advertising objectives met? Did the product achieve its distribution objectives? 5. Are any supermarkets discounting the product? 6. Should the marketing programme be continued, revised or expanded? 7. Are customers satisfied with the product? 8. Should the product be changed on more featured added? 9. Should the advertising budget be changed? 10. Is the price appropriate? For research to be effective at this stage, it is important that specific measurable objectives be set for all elements of the marketing programme. There should be sales goals by geographic area; distribution goals, perhaps in terms of the number of stores carrying the product; and advertising goals such as achieving certain levels of awareness. The role of marketing research is to provide measures against these objectives and to provide more focused studies to determine why results are below or above expectations.

Scope of Marketing Research

Marketing research can be used in: • Product

Management: One of the major scope of marketing research is to manage the current products and new products. In product management Marketing Research is helpful in o Competitive

Intelligence – To understand the competitive product strategy. o Prelaunch

strategy for new

products o Test

Marketing – To monitor the performance of the brand by launching in a select area and then taking it across the country. In other words it is a small-scale product launch used to determine the likely acceptance of the product when it is introduced into a wider market.

o Concept

testing - to test the acceptance of a concept by target consumers. • Sales Analysis: Marketing research is used to study the sales trend and make suitable strategies when required. It is used to o Assess

market potential

o Estimation

of demand for a

product o Market o Study

share estimation

seasonal variation for a product

o Market

segmentation studies

o Estimate

size of the

market o Need • Corporate

analysis to find out where the product fits in

Research: Marketing Research is used to analyze the corporate effectiveness. Some examples are: o Assessing

the image of the company

o Knowledge • Advertising

of the company activities

Research: Advertising is an arena in which Marketing Research is extensively used. Some scope are: o Readership

feedbacks – Mainly carried out for newspapers and magazines o Advertising

Recall – To assess the recall of television or other adve...