Chapter 2 The subjects to which companies apply their marketing research have been surveyed (at 5 year intervals) by the American Marketing Association for over thirty years. These categories are as follows: Markets, Products, Sales force problems , Distribution channel studies, Advertising, Problems broader than marketing. This is the most studied( over 95% of companies engage in these subjects) What are their sales potentials? Their characteristics? What share of their purchases ( in our product lines) are we winning?
(over 95% of companies engage in studying
these subjects) How well will our new products be accepted? With what sales potential? What about competitive products? How do our present products stack up?
(90% of manufacturing companies study
these) Measurement of market potentials Market share analysis Determining market characteristics Sales analysis Sales quota and territories Distribution channels Test market audits Short range forecasting Long range forecasting Pricing studies Business trend studies Management information systems(MIS) Acquisition studies Rate high in research use. How should territory boundaries be set? How should sales quotas be set?
( over 90% of manufacturers study these
repetitive problems) Done by 85% of the manufacturers Most consumer goods companies and a majority of financial services companies conduct these How effective are our ads? How strong is the proposed copy? Which media are appropriate for our markets and products? Include business expectations and short term forecasts that rate high Acquisition studies also very common The effects of inadequate interface may be observed in the following: Case A- Agency communicated with the Marketing Exec Vice president by phone and by mail and only once in a direct meeting but got the full brief. Case B- Agency had many meetings with the client company through their managers but never met the real client ( Mktg Exec VP) till the report stage when it was too late. There has to be a clear understanding of the problem by the researcher from the client (someone senior enough) Even 2 meetings with a senior are better than 6 meetings with a junior , since it can lead to wrong problem definition. Keep researcher informed on: The precise problem(s) faced by the client and the way that a decision is going to be made. All limitations on the costs and time for doing the study The background of the problem and its environment. What data will be provided by the client and where to obtain it Any changes in the situation that arise as the study is under way. Being honest and clear regarding the meaning and limitations of the expected findings Being of maximum help in presenting and explaining the conclusions and aiding the clients application Demanding that the client provide the information needed to plan and conduct the study. This includes explicating the goals and the problems faced. 1) Ascertaining- the objectives that the firm is trying to accomplish (relevant to the particular problem area) 2)Recognizing that the problem exists and locating it. 3)Determining the problem’s nature and environment 4) Searching for and selecting alternatitive solutions 5)Deciding which solution should be adopted. Set objectives Discover problems and define Analyse problem environment Search and select alternatives Decide on action to take Implement