A Decision Making Perspective on Marketing Intelligence

Marketing ResearchAaker, Kumar, Leone and Day Twelfth EditionInstructor’s Presentation SlidesChapter OneA Decision Making Perspective on Marketing Intelligence2Marketing 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 analysisIt links the disparate operational systems to the end users of the data, thus creating an environment with free flow of informationIt offers a reliable barometer of the business performanceIt helps to analyze what is behind trends and anomalies in the business3Marketing Research 12th Edition Business Intelligence4Provide data onBusiness IntelligenceFinancial IntelligenceMarketing IntelligenceAccounting IntelligenceMarketing ResearchManagement Intelligence....................ProspectsCustomersCompetitionProducts/MarketsPrimary SourcesSecondary SourcesStandardized SourcesCustomer Relationship Marketing/ Database MarketingMarketing 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. L5Marketing Research 12th Edition Need for Marketing IntelligenceProducers 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 Pharmaceutical companies do it on a regular basis because they have to plan for what happens when a particular patent expires. 6Marketing Research 12th Edition Domains of Marketing Intelligence7Product DecisionsCustomer Segmentation decisionsBrand and Pricing decisionsKeeping stakeholders happyMarket estimation, competitive bench-Marking & distributionMarketing Research 12th Edition Marketing ResearchMarketing Research, a critical part of Marketing Intelligence helps by providing accurate, relevant and timely (ART) information8Links 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 MakingFour Stages of Market Planning ProcessSituation analysis Strategy developmentMarketing program developmentImplementation9Marketing Research 12th Edition Marketing Planning Process10Performance monitoringRefining strategies and programDefine the business scope and served market segmentsEstablish competitive advantagesSet performance objectives Situation Analysis StrategyDevelopment MarketingProgramDevelopment ImplementationUnderstand the environment and the marketIdentify threats and opportunitiesAssess the competitive positionProduct and channel decisionCommunication decisionsPricingPersonal selling decisionsMarketing Research 12th Edition Situation AnalysisAnalysis ofMarket environmentMarket characteristics Consumer behaviorResearch ApproachesOrganize information obtained from prior studies (secondary)Focus groups11Marketing Research 12th Edition 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?12Marketing Research 12th Edition Marketing Program DevelopmentPrograms embrace specific tasksAction program usually focuses on a single objective in support of one element of overall business strategy13Segmentation decisionsProduct decisionsDistribution decisionsAdvertising and promotion decisionsPersonal selling decisionsPrice decisionsBranding decisionsCustomer satisfaction decisionsRepresentative Decisions that Draw on Marketing Research:Marketing Research 12th Edition ImplementationStarts with decision to proceed with a new program or strategySet specific measurable objectives for all elements of marketing programShift research focus to :"Did the elements achieve their objectives?"“Should the marketing program be continued, discontinued, revised or expanded?"14RelevanceType and Nature of Information SoughtTimingAvailability of ResourcesCost-benefit AnalysisFactors Influencing Marketing Research DecisionsMarketing Research 12th Edition Ethics in Marketing ResearchEthics of the SponsorOvert and covert purposesDishonesty in dealing with suppliersMisuse of research informationEthics of the SupplierViolating client confidentialityImproper execution of researchAbuse of Respondents Falsifying answers15Marketing Research 12th Edition Conquering Latino HomesHispanics 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?16Marketing Research 12th Edition 17End of Chapter One