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Role of Marketing Research in strategic decision making.pptx
- 1. Role of Marketing Research in strategic decision making • Marketing research consists of the systematic process of obtaining, analyzing,& reporting of data/information for decision making. • Industrial marketing research is one part/component of industrial marketing intelligence. • Some of the IM research are to forecast sales, identify market potential, competitive analysis & new product research. 1 C R Krishna Prasad. Associate Professor
- 2. Difference b/w consumer & industrial marketing research: Areas of surveys methods Industrial Research Consumer Research Sample Size Small sample due to small universe or population & concentration of buyers Large sample due to large universe, individual buyers are distributed Respondent cooperation & accessibility More difficult due to tome constraint; accessibility is limited to working time Less difficult to obtain data; accessibility is easier Defining respondent More difficult as buying decisions are made by several members in the buying committee Simple, as individuals or house hold users are generally the buyers 2 C R Krishna Prasad. Associate Professor
- 3. Marketing Research Process 1.Identify the problem & define research objectives 2. Develop the research design/plan 3. Collect the data 4. Process & analyze the data 5. Present the research findings 3 C R Krishna Prasad. Associate Professor
- 4. Industrial Market Research v/s Consumer Market Research • Industrial market research is what provides clients the information they need to generate qualified leads and then sales. C R Krishna Prasad. Associate Professor 4
- 5. • The importance of industrial market research cannot be over-stated because it defines the specific target markets and products that will produce increased sales and higher profit margins. • More specifically, industrial market research defines the companies that are most like your best customers and most likely to need what you sell in the marketplace. C R Krishna Prasad. Associate Professor 5
- 6. There are four key factors that make B2B market research special and different to consumer markets: • The decision making unit is far more complex in B2B markets than in consumer markets • B2B products and their applications are more complex than consumer products • B2B marketers address a much smaller number of customers who are very much larger in their consumption of products than is the case in consumer markets • Personal relationships are of critical importance in B2B markets. C R Krishna Prasad. Associate Professor 6
- 7. Types of Industrial Market Research • Situation and market analysis for marketing plan development • Market potential and market penetration research • Data mining – previous customer and transactions analysis • Competitive Intelligence – corporate and/or product • Determination of primary and niche markets • Customer and/or employee satisfaction surveys • Corporate and/or brand awareness surveys • Industry exposure database development • Comprehensive prospect profiling C R Krishna Prasad. Associate Professor 7
- 8. Consumer Market Research • Consumer Market Research is market research that is carried out with consumers as opposed to research that is carried out with businesses (B2B). • Consumer Market Research can be qualitative (e.g. focus groups or depth interviews) or quantitative (e.g. structured telephone interviews or structured face to face interviews) in nature. C R Krishna Prasad. Associate Professor 8
- 9. The Standard industrial classification system(sic) • A standard series of four-digit codes created by the U.S. government in 1937 for categorizing business activities. • In 1997, the use of SIC codes was replaced in most (but not all) capacities by a six-digit code called the North American Industry Classification System (NAICS). C R Krishna Prasad. Associate Professor 9
- 10. • The codes are used to promote better communication across business sections and between countries. • One major government department that still uses SIC codes is the Securities and Exchange Commission (SEC). • The SIC codes are listed in a business's electronic data gathering, analysis and retrieval system (EDGAR) filings in order to indicate the industry to which the company belongs. C R Krishna Prasad. Associate Professor 10
- 11. • For example, if you see that a company has a 3721 SIC code on its EDGAR filing, this means that the company belongs to the aircraft industry. C R Krishna Prasad. Associate Professor 11
- 12. The Standard industrial classification system(sic) • It is one of the source of secondary data • It is a manual SIC manual classifies industrial products into: • Agriculture , forestry & fishing • Mining • Construction • Manufacturing • Services 12 C R Krishna Prasad. Associate Professor
- 13. Sales Forecasting • Enables effective planning of business process. Sales forecast is used buy several departments: I. Manufacturing or Production dept: for setting up production capacity II. Finance dept: for raising cash for investment/operations/ profit planning III. Purchase dept: for purchases IV. HR dept: for manpower planning C R Krishna Prasad. Associate Professor 13
- 14. Forecasting Approaches I. Top down/Break Down Approach II. Bottom up/ Build up Approach C R Krishna Prasad. Associate Professor 14
- 15. Top down/Break Down Approach • Sales Forecast is developed at the SBU level • The head of the sales/marketing breaks down the company sales forecast into region, district, territory, salesperson & individual sales quotas. C R Krishna Prasad. Associate Professor 15