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Question
“Marketing research is the key to the success of a company”. Discuss the statement, keeping in view examples of some companies’ practices, where application of market research helped in formulating the right marketing strategy.

Answer
THE OBJECTIVE  OF   THE  MARKETING   RESEARCH  IS  
TO  PROVIDE  THE   MARKETING  MANAGEMENT, A  RANGE  
OF  VITAL  INFORMATION   ON  

Business Intelligence
Business Performance Management
Business rules
Data Mining
Predictive analytics
Purchase order request
Enterprise Architecture
Information technology management
Knowledge Base
Online analytical processing
ETC ETC
====================================================
The major  EXPECTATIONS   of   MARKETING  RESEARCH   are to:
reach an understanding of the relevant processes on the basis of the available historic information. This element forms the basis for the development of models, required for forecasting and simulation.
provide information on the current situation, especially for early warning purposes, for instance related to issues impacting on business,  resources or business status.
forecast changes and impacts, either natural or man-made, as an element in vulnerability assessments.
forecast the consequences of policy decisions and measures before they are implemented in reality. This implies evaluating options for several given scenarios based on the possible results and predicted consequences, and selecting the most acceptable alternative.
==============================================================
FOR  THE  MARKETING  MANAGEMENT,
THE  MARKETING RESEARCH  IS  THE  MAIN/MAJOR  TOOL  
-to feel the  market  sensitivity/ market reactions to  the  product/ price etc
which  helps in the  decision  to  provide the  market  the  right product/ right  price/right  promotion/
and  at  the  right  place.

IN OTHER  WORDS  FROM  THE  MARKET
-researched  information on various  aspects  of  the  product/market.
-to shape  the  future requirements  of  the  product/market.
AND  PUT  THE  PRODUCT  BACK  INTO  THE  MARKET.

THE  MARKET  RESEARCH   PROVIDES
Ad Tracking – periodic or continuous in-market research to monitor a brand’s performance using measures such as brand awareness, brand preference, and product usage.
Advertising Research – used to predict copy testing or track the efficacy of advertisements for any medium, measured by the ad’s ability to get attention, communicate the message, build the brand’s image, and motivate the consumer to purchase the product or service.
Brand equity research - how favorably do consumers view the brand?
Brand name testing - what do consumers feel about the names of the products?
Commercial eye tracking research - examine advertisements, package designs, websites, etc by analyzing visual behavior of the consumer
Concept testing - to test the acceptance of a concept by target consumers
Coolhunting - to make observations and predictions in changes of new or existing cultural trends in areas such as fashion, music, films, television, youth culture and lifestyle
consumer decision process research - to determine what motivates people to buy and what decision-making process they use
Copy testing – predicts in-market performance of an ad before it airs by analyzing audience levels of attention, brand linkage, motivation, entertainment, and communication, as well as breaking down the ad’s flow of attention and flow of emotion.
•   Customer satisfaction studies - exit interviews or surveys that determine a customer's level of satisfaction with the quality of the transaction
Demand estimation - to determine the approximate level of demand for the product
Distribution channel audits - to assess distributors’ and retailers’ attitudes toward a product, brand, or company
•   Internet strategic intelligence - searching for customer opinions in the Internet: chats, forums, web pages, blogs... where people express freely about their experiences with products, becoming strong "opinion formers"
Marketing effectiveness and analytics - Building models and measuring results to determine the effectiveness of individual marketing activities.
mystery shopping - An employee or representative of the market research firm anonymously contacts a salesperson and indicates he or she is shopping for a product. The shopper then records the entire experience. This method is often used for quality control or for researching competitors' products.
Positioning research - how does the target market see the brand relative to competitors? - what does the brand stand for?
Price elasticity testing - to determine how sensitive customers are to price changes
•   Sales forecasting - to determine the expected level of sales given the level of demand. With respect to other factors like Advertising expenditure, sales promotion etc.
Segmentation research - to determine the demographic, psychographic, and behavioural characteristics of potential buyers
Online panel - a group of individual who accepted to respond to marketing research online
•   Store audit - to measure the sales of a product or product line at a statistically selected store sample in order to determine market share, or to determine whether a retail store provides adequate service
Test marketing - a small-scale product launch used to determine the likely acceptance of the product when it is introduced into a wider market
Viral Marketing Research - refers to marketing research designed to estimate the probability that specific communications will be transmitted throughout an individuals Social Network. Estimates of Social Networking Potential (SNP) are combined with estimates of selling effectiveness to estimate ROI on specific combinations of messages and media.
All of these forms of marketing research can be classified as either problem-identification research or as problem-solving research.
A company collects primary research by gathering original data. Secondary research is conducted on data published previously and usually by someone else. Secondary research costs far less than primary research, but seldom comes in a form that exactly meets the needs of the researcher.
A similar distinction exists between exploratory research and conclusive research. Exploratory research provides insights into and comprehension of an issue or situation. It should draw definitive conclusions only with extreme caution. Conclusive research draws conclusions: the results of the study can be generalized to the whole population.
Exploratory research is conducted to explore a problem to get some basic idea about the solution at the preliminary stages of research. It may serve as the input to conclusive research. Exploratory research information is collected by focus group interviews, reviewing literature or books, discussing with experts, etc. This is unstructured and qualitative in nature. If a secondary source of data is unable to serve the purpose, a convenience sample of small size can be collected. Conclusive research is conducted to draw some conclusion about the problem. It is essentially, structured and quantitative research, and the output of this research is the input to MARKETING  INFORMATION  SYSTEM.
Exploratory research is also conducted to simplify the findings of the conclusive or descriptive research, if the findings are very hard to interpret for the marketing manager.
==================================================
FOR  THE  MARKETING  DEPARTMENT
MR   provides  such  informations  as

-consumer  research  data

-market  research  data

-market  surveys

-market  analysis

-competitors  analysis

-product  analysis

-product  test  analysis

-product  plans

-test  market  results

-market strategy   analysis

-sales  analysis

-distribution  analysis

-media  analysis

-promotion analysis

-customer satisfaction   survey

-retail audit  data

-marketing  auditing  data

-market  forecast

-sales  forecast

-sales  planning  data

-distribution  planning

-customer  analysis

-market  segment  analysis

-consumer [  socio/economic /demographic/psychographic]  data

ETC  ETC.
==================================================
WHICH   THE  MARKETING  DEPARTMENT  USE   FOR

-new  product  development

-new  product  planning

-new  product  testing

-new  product  test  marketing

-new   product  market  forecast

-new  product   sales forecast

-annual  market  forecast

-annual  sales  forecast

-annual  market  planning

-annual  sales  planning

-annual  distribution  planning

-annual  target  marketing

-market  segmentation

-annual  sales  development  programs

-annual  market  development  programs

-annual  sales  planning

-annual  distribution  planning

-annual  merchandising  planning
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Discuss the roleof marketing research in helping Nike management makethis decision. What kind of research should beundertaken?

MR can help NIKE understand
y
The composition of the market and determine the best way to segment themarket.
y
Decision making process of the consumers.
y
To what extent are consumers affected by the brand image and how importantare celebrities in fostering the image.
y
To what extent are consumers influenced by product characteristics.
y
Who are the consumers that that are concerned about product characteristics.
y
Exploratory research can be done to gain a basic understanding of such issuesfollowed by descriptive research in form of a single-sectional survey.
2. How would you describe the buying behavior of consumerswith respect to athletic footwear ?
y
There appear to be 2 segments
y
One concerned with the image of the brand of shoes
y
Other that focus on product characteristics.
y
Image segment is more influenced by celebrity endorsement .
y
Other segment considers product characteristics.
Q
3. What is the management decision problem facing Nikeas it attempts to retain its leadership position
?
y
W
hat Nike should doto retain its Leadershipposition in the USathletic footwearmarket?

Q
4. Define the marketing research problem facing Nike ,given the management decision problem you haveidentified
.
y
D
etermine the role that productcharacteristics, image, and otherfactors play in influential consumerschoice of shoe brand
y
W
hat is the market share of NIKEand its competitors.
y
W
hat are the demographic andpsychographic characteristics of consumers who are concerned withthe image.
y
W
hat are the demographic andpsychographic characteristics of consumers who are concerned withthe product characteristics.

Q
5. Develop two suitable research
Q
uestions andformulate two hypotheses for each?
y
W
hat is the lifestyle of consumers who are image sensitive.H
o
-consumers who are imagesensitive are young and activeH
1
-consumers who purchase athleticfootwear are not price sensitive.
y
W
hat I the lifestyle of typical NIKEconsumer.H
o
-typical NIKE consumer is youngan independentH
1
-typical NIKE consumer watchessport on television.

Q
6. How can the Internet be used to help Nike in conductingmarketing research and in marketing its products
y
Internet survey can be doneasking the recommendationfrom the consumers
y
The product innovation idea,new strategies, any demerit of the existing product can beasked through E-mails, websites, Questionnaire .
y
Through internet theresponses could be much fasterand the rate of error can bemuch lesser

y
Users can experiment with hundreds of possible color combinations for their shoes, and also lets them add personalidentification marks on their shoes. Using this data input Nikecan personalize and customize shoes for its consumers.
y
A small questionnaire could be asked to fill after each purchaseon web.
y
Attractive website designing could also be helpful, with thehelp of some web designers.



Q
1. Should Nike switch from a focus on celebrities to afocus on its products in its advertising? Discuss the roleof marketing research in helping Nike management makethis decision. What kind of research should beundertaken?
MR can help NIKE understand

The composition of the market and determine the best way to segment themarket.

Decision making process of the consumers.

To what extent are consumers affected by the brand image and how importantare celebrities in fostering the image.

To what extent are consumers influenced by product characteristics.

Who are the consumers that that are concerned about product characteristics.

Exploratory research can be done to gain a basic understanding of such issuesfollowed by descriptive research in form of a single-sectional survey.

Q
2. How would you describe the buying behavior of consumerswith respect to athletic footwear ?

There appear to be 2 segments

One concerned with the image of the brand of shoes

Other that focus on product characteristics.

Image segment is more influenced by celebrity endorsement .

Other segment considers product characteristics.

Q
3. What is the management decision problem facing Nikeas it attempts to retain its leadership position
?

What Nike should doto retain its Leadershipposition in the USathletic footwearmarket?


Q
4. Define the marketing research problem facing Nike ,given the management decision problem you haveidentified
.

Determine the role that productcharacteristics, image, and otherfactors play in influential consumerschoice of shoe brand

W hat is the market share of NIKEand its competitors.

What are the demographic andpsychographic characteristics of consumers who are concerned withthe image.

W hat are the demographic andpsychographic characteristics of consumers who are concerned withthe product characteristics.

Q
5. Develop two suitable research
Questions andformulate two hypotheses for each?

What is the lifestyle of consumers who are image sensitive.H
o
-consumers who are imagesensitive are young and activeH
1
-consumers who purchase athleticfootwear are not price sensitive.

W hat I the lifestyle of typical NIKEconsumer.H
o
-typical NIKE consumer is youngan independentH
1
-typical NIKE consumer watchessport on television.
Q
6. How can the Internet be used to help Nike in conductingmarketing research and in marketing its products

Internet survey can be doneasking the recommendationfrom the consumers

The product innovation idea,new strategies, any demerit of the existing product can beasked through E-mails, websites, Questionnaire .

Through internet theresponses could be much fasterand the rate of error can bemuch lesser

Users can experiment with hundreds of possible color combinations for their shoes, and also lets them add personalidentification marks on their shoes. Using this data input Nikecan personalize and customize shoes for its consumers.
A small questionnaire could be asked to fill after each purchaseon web.
Attractive website designing could also be helpful, with thehelp of some web designers.

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Leo Lingham

Expertise

human resource management, human resource planning, strategic planning in resource, management development, training, business coaching, management training, coaching, counseling, recruitment, selection, performance management.

Experience

18 years of managerial working exercise which covers business planning , strategic planning, marketing, sales management,
management service, organization development

PLUS

24 years of management consulting which includes business planning, corporate planning, strategic planning, business development, product management, human resource management/ development,training,
business coaching, etc

Organizations
Principal---BESTBUSICON Pty Ltd

Education/Credentials
MASTERS IN SCIENCE

MASTERS IN BUSINESS ADMINSTRATION

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