Misconception about Market research decision. Cost-Conscious Market Research. Market research decision. This PPT has two cases which eliminate the misconception by the manager while taking decision of market research

1. Presentation
Of Case~
Cost - Conscious Marketing Research
By
Group-2
Submitted To: Submitted By:
Dayalabagh Educational Management
Department of Management. Arjit Parashar

2. The "Big decision” or
“Small Decision” Myth

3. Why Marketing Research?
 Universal belief – numbers don’t lie
 Increase chances of taking the right decision
 Increase confidence in your recommendations

4. Manager Perception
 Financial stakes
 Cost-benefit perspective
 Incremental quality and value of the
information
• The cost & time, it would take to
decision of market research

5. Manager’s Call
 Uncertainty avoidance
 Benefits of research are proportional to the manager’s
uncertainty about which way to go
 Tactical decisions in the short run and strategic
decisions in the long run

6. Factors Influencing Marketing
Research Decisions
Availability
of Data
Is the
information
on hand
inadequate?
Do not conduct marketing research!
Conduct
Marketing
Research
Nature of
Decision
Is the
decision of
considerable
importance?
Benefits vs.
Costs
Does the value
of the research
exceed the cost?
Time
Constraints
Is sufficient
time
available?
Yes Yes Yes Yes
No No No No

7. Restaurant manager
 Adding a line of Mexican dishes
 Investing in a series of advertisements
 Called in a research professional
 How likely acceptance of the repositioning
strategy would be
 “Unless the survey found virtually no interest
in Mexican food in the area, the manager was
going ahead with the decision to add the line.”

8.  Research expenditure was unnecessary and that the
money could more productively be used to ensure that
the new line got the advertising to have the best
chances of succeeding
 3 or 4 Advertisement option
 More economic

9.  Response to advertising can be analyzed
 Defects in one or two ads can be identified
 Best Timing of telecasting the advertisement

10.  Taste Preferences
 Mexican Food lover age group
 Own Brand Value
 Many more underlined scenarios
 Side effects of a bad decision
Which actions to take…..

11. Small Decisions
 Tropicana redesigned its orange juice packaging,
 dropping the iconic image of an orange skewered
by a straw, it failed to adequately test for consumer
reactions
 with disastrous results, Sales dropped by 20
percent, and Tropicana reinstated the old package
design after only a few months.

12. low-cost research
 Quick-and-dirty study that may be worse
than no research at all

13. Ask Questions to Managers
 Do you routinely research consumer behavior
(retention, acquisition, usage) and why consumers
behave that way (awareness, satisfaction, perceived
quality)?
 Do you also compare the decisions with your key
competitor?
 Do you adjust short-term tactics according to the
change in your marketing-based asset?