The document discusses the role of marketing research in management decision-making, including its definition and importance within the marketing process. It outlines types of research studies, reasons for conducting or not conducting research, and the historical development of marketing research. The lecture aims to enhance understanding of the marketing environment, the value of research, and the decision-making framework for marketing managers.

1. The Role of Marketing Research in Management Decision Making Week 1 (1) Dr. Kelly Page Cardiff Business School E: pagekl@cardiff.ac.uk T: @drkellypage T: @caseinsights FB: kelly@caseinsights.com

2. Review the marketing concept and the marketing mix; Comprehend the marketing environment within which managers must make decisions; Define marketing research; Understand the importance of marketing research in shaping marketing decisions; Learn when marketing research should and should not be conducted; Understand the history of marketing research. Lecture Objectives

3. Marketing: “ The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.” The Nature of Marketing Marketing Concept Systems Goals Customer Marketing Mix Orientations

4. Marketing research is the planning, collection, and analysis of data and information relevant to marketing decision making and the communication of the results of this analysis throughout the organisations and/or its stakeholders Opportunistic Nature of Marketing Research Identify the market and/or community of interest Helps in decision making for resource allocation The External Marketing Environment Marketing research is the key to understanding the environment Provides information for altering marketing decisions Identifies new opportunities and threats Marketing Research Defined

5. Its Importance to Management – Three Critical Roles Descriptive: The gathering and presenting of statements of fact; Diagnostic: The explanation of data or actions; Predictive: The specification of how to use descriptive and diagnostic research to predict the results of a planned marketing decision. Marketing Research Impact Critical Roles:

6. Types of Research Studies APPLIED (Commercial) Research aimed at solving a specific pragmatic problem To better understand the market. E.g., better understanding of the marketplace, determining why a strategy or tactic failed, or reduction of uncertainty in management decision making. BASIC (Academic) Research aimed at expanding the frontiers of knowledge rather than for solving a specific problem. To contribute to knowledge. E.g., Research done for research sake. Universities, and other grant recipients, often conduct basic research. Sometimes called “pure” research. Applied Basic Can use a combination of both.

7. Research conducted to develop marketing options through market, market opportunity analyses, or consumer attitude and product usage studies (e.g., market segmentation) Research used to test decision alternatives (e.g., new product testing) Research done to assess program performance (e.g., ad tracking) Applied Research Types Programmatic Selective Evaluative

8. Decision to Conduct Marketing Research Reasons NOT to conduct marketing research: Resources are lacking; Research results would not be useful to management; Opportunity has passed; The decision has already been made; Managers cannot agree on what they need to know; Decision-making information already exists; The costs of conducting research outweigh the benefits; You do not have the time to do the research right; The research results will likely only be shelved.

9. Decision to Conduct Marketing Research To Research or Not to Research? Had marketing research been around in the 16th century, Shakespeare would have wisely considered: Cost likely greater than benefit - research might be unwise Small Profit Large Profit Small Market Size Large Market Size Cost likely lower than benefit.but market size might be limiting - research might be wise Benefits likely greater than costs and market size offers potential - research might be wise Benefits will most certainly outweigh costs - research is likely most profitable here

10. The Development of Marketing Research Understanding the Historical Context Inception - Pre-1900: Harrisburg, PA - first research survey in 1824 Mail surveys introduced in 1895 with 10% response rate Early Growth - 1900-1920: Curtis Publishing started first research department in 1911 Recall measures and scaling introduced Adolescent Years - 1920-1950: A.C. Nielsen begins research in 1922 1940s focus groups and random sampling selection begin WWII gets social scientist into marketing research Mature Years - 1950-Present: Change from seller’s market to buyer’s market is key Market segmentation techniques develop 1960s predictive and descriptive mathematics employed 1990s OTC software enables masses to analyze data

11. 2000+ Impact of Technology Task: To acquire secondary data and/or information about stakeholders Access secondary data Web; CD-ROMs; Open Source Distribute secondary data Channel: Web; Email; Removable storage devices (i.e., Zip drives); Format: PDF, Word document, Excel spreadsheet etc. Task: To acquire primary data and/or information about stakeholders Surveys Telephone; Facsimile; Personal Computers ; Specialist Hardware & Software (e.g., CATI/CAPI); Email; Web/Internet Focus Groups & Depth Interviews Video & Audio Equipment; Computer hardware technologies (e.g., notebooks); Software technologies (e.g., word processing, database); Chat Rooms, News groups; Conferencing Software; Observation People Meter; Geographic Information Systems (GIS); Electronic turnstiles, traffic counters & Optical mark scanners; Internet tracking software (cookies); Promotion tracking systems & software; Social Media, Netnography Task: To store, manage and/or analyse secondary and/or primary stakeholder data Data Management Marketing Information Systems (MkIS); Database or warehousing Systems; Graphic Development Software (CAD)

12. Lecture Summary Lecture Objectives The Nature of Marketing Research Marketing Research Defined The Marketing Research Impact Return on Quality Marketing Strategy Types of Research Studies Applied Research Types Decision to Conduct Marketing Research The Development of Marketing Research Impact of Technology Lecture Summary

13. The content of this work is of shared interest between the author, Kelly Page and other parties who have contributed and/or provided support for the generation of the content detailed within. This work is licensed under a Creative Commons Attribution-NonCommercial-Share Alike 2.0 UK: England & Wales. http://creativecommons.org/ Kelly Page (cc)