Dr. Wilhelmina D.

Lazatin, AFBE
 Marketing – the process of planning
and executing the conception, pricing,
distribution and promotion of ideas,
goods and services to create exchanges
that satisfy individual and
organizational objectives.
 Marketing Concept requires:
 Consumer orientation – where firms strive
to identify the people (or firms) most
likely to buy their products (their target
market) and to produce a good or offer a
service that will meet the needs of the
target consumers most effectively in the
face of competition.
 Goal orientation – a firm must be
consumer oriented only to the extent that
it also accomplishes corporate goals.
 Systems orientation – a system is a organized
whole – or a group of diverse units that form an
integrated whole – functioning or operating in
unison. Systems must be established to find our
what consumers want and to identify market
opportunities.
 Marketing mix – the unique blend of
product/service, pricing, distribution and
promotion strategies designed to meet the
needs of a specific target market
 Value equation – providing valuable bundles of
benefits
 Key Questions to Ask to Understand
Value Equation
 What do we sell?
 How do consumers view our company?
 What does our company/product mean?
 What do consumers desire?
 Marketing Research – the application of
scientific method in searching for the truth
about marketing phenomena. These
activities include defining marketing
opportunities and problems, generating and
evaluating marketing ideas, monitoring
performance and understanding the
marketing process.
 Roles of Marketing Research to
Management
 Descriptive Function – it includes
gathering and presenting statement of
facts.
 Diagnostic Function – this is the function
that explains the data and/or actions
 Predictive Functions – it determines new
trends in the market. It is anticipatory in
nature.
 Importance of Marketing Research to
Management

 The unrelenting drive for quality and

customer satisfaction
 Return on Quality – a management objective
that is based on the principles that (a) the
quality being delivered is at a level desired by
the target market and (b) that level of quality
must have a positive impact on profitability.
 Paramount importance of keeping existing
customers. Total customer satisfaction means
intimate understanding of their needs
through research.
 Understanding the ever-changing
marketplace. Market research helps
managers understand trends in the
marketplace and to take advantage of
opportunities.
 Applied and Basic Marketing Research

 Applied Research – research aimed at

solving a specific, pragmatic problem –
better understanding of the marketplace,
determination of why a strategy or tactic
failed, or reduction of uncertainty in
management decision making.
-it is also a research conducted to address
a specific marketing decision for a specific
firm or organization.
• Basic or Pure Research – research aimed at
expanding the frontiers of knowledge
rather than solving a specific, pragmatic
problem.
- it is a research conducted without a
specific decision in mind that usually does
not address the needs of specific
organization. It attempts to expand the
limits of marketing knowledge in general.
 The Scientific Method – the way researchers go
about using the knowledge and evidence to reach
objective conclusions about the real world.
Prior
knowledge/th Discovery
eory

Hypothesis

Hypothesis A Summary of the Scientific Method

testing
(observation/Ex
perimentation

Conclusions
(New
Knowledge)
 The use of the scientific method in applied
research ensures objectivity in gathering
facts and testing creative ideas for
alternative marketing strategies.

 In basic research, scientific research

contributes to conclusions that overtime
contribute to the development of general
laws about phenomena like price and value.
 Business Orientations
 Product orientation – describes a firm
that prioritizes decision making in a way
that emphasizes technical superiority in
the product.
 Production orientation – describes a firm
that prioritizes efficiency and
effectiveness of the production processes
in making decisions.
 Marketing concept – a central idea in
modern marketing thinking that focuses
on how the firm provides value to
customers more than on the physical
product or production processes.
 Marketing Orientation – the corporate
culture existing for firms adopting the
marketing concept. It emphasizes
customer orientation, long-term
profitability over short-term profits, and
cross-cultural functional perspective.
 Stakeholder Orientation – recognizes that
multiple parties are affected by firm
decisions. When a company makes a
decision to change a product line based on
marketing research, that decision affects
customers, employees and their families, the
owners of the company and even society in
general.
 Keeping Customers and Building
Relationships

 Marketers often talk about getting

customers, but keeping them is equally
important.
 Relationship Marketing – communicates
the idea that a major goal of marketing is
to build long-term relationships with
customers contributing to their success.
 Marketing Research and Strategic
Marketing Management

 Developing and implementing a

marketing strategy involves four stages:
 Identifying and evaluating market
opportunities
 Analyzing market segment and selecting
target markets
 Planning and implementing a marketing mix
that will provide value to customers and meet
organizational objectives
 Analyzing firm performance
 Planning and Implementing the Marketing
Mix
 Product Research – these are studies
designed to evaluate and develop new
products and to learn how to adapt
existing product lines. It encompasses all
applications of marketing research that
seek to develop product attributes that
will add value for consumers.
 Types of Product Research
 Concept Testing – exposes potential customers
to a new product idea to judge the acceptance
and feasibility of the concept.
 Product Testing – reveals a product prototype’s
strengths and weaknesses or determines
whether a finished product performs better
than competing brands or according to
expectations.
 Brand Name Evaluation Studies – investigates
whether the name is appropriate for a product.
 Package Testing – assesses size, color, shape,
ease of use and other attributes of a package.
 Pricing Strategy involves finding the amount of
monetary sacrifice that best represents the value
customers perceive in a product after considering
various market constraints. Pricing research addresses
consumer quality perceptions.

 Distribution Research – studies aimed at selecting

retail sites and warehouse locations. It is often needed
to gain knowledge about retailers and wholesalers’
operations and to learn their reactions to
manufacturer’s marketing policies. It may also be used
to examine the effect of just-in-time ordering systems
or exclusive distribution on product quality.
 Promotion research – investigates the
effectiveness of advertising, premiums, coupons,
sampling, discounts, public relations and other
sales promotions.
 The Integrated Marketing Mix

 Integrated Marketing Communication – all

promotion efforts should be coordinated to
communicate a consistent image.

 Integrated Marketing Mix – research studies

often investigate effects of various combinations
of marketing mix elements on important
outcomes like sales and image. Research
suggests that consumer-oriented firms are
particularly oriented toward integrating all
aspects of their marketing into a single message.
 Analyzing Marketing Performance

 Total Value Management – trying to manage

and monitor the entire process by which
consumers receive benefits from a company.
 Performance-monitoring research – refers to
research that regularly, sometimes routinely
provides feedback for evaluation and control of
marketing activity.
 Marketing metrics – quantitative ways of
monitoring and measuring marketing
performance.
 When is Marketing Research Needed?
 Time constraints
 Availability of data
 Nature of the decision to be made
 Value of research information in relation to
costs
 Will the payoff be worth the investment?
 Will the information gained by marketing research
improve the quality of the marketing decisions
enough to warrant the expenditure?
 Is the proposed research expenditure the best use of
the available funds?
 Marketing Research in the Twenty-First Century
 Communication technologies
 Global marketing research