Chapter+1

1.1 Explain the role of marketing research in the marketing process
A process used to solve a specific marketing problem, including the methods of analyzing, designing, gathering, and reporting information. All of which may be used to help solve the problem. There are several other activities involved in the process including market intelligence, survey research, competitive intelligence, insight, data mining, and knowledge management. - purpose of marketing research is to link the consumer to the marketer by providing information that can be used in making decisions in the marketing process and to try to understand and predict consumer behaviour

1.2 Distinguish between market research and marketing research
Marketing research is the systematic and objective process used to solve a specific problem and identify solutions with a series of methods to fully understand that specific problem and aid in making marketing decisions. Market research is quite different; it’s the process of applying marketing research to a specific marketing segment. In other terms, market research is conducted prior to marketing research in order to gather the appropriate information and focus on the correct marketing segment.

2.1 Provide 2 examples of marketing research studies for each of the four types of marketing research activities.
The four types of marketing research activities are (1) Identifying market opportunities and problems, (2) Generating, refining, and evaluating potential marketing actions, (3) Monitoring marketing performance, and (4) Improving marketing as a process. 1. ** Identifying Market Opportunities and Problems ** Determining the strengths and weaknesses of competitors within the same market is the intention of the competitive analysis. The competitive analysis can also provide users with advantages over competitors through strategies and barriers.
 * // Competitive Analysis //

The first stage in marketing audits is the internal analysis of company strengths and weaknesses. The following stage revolves around external analysis which includes the opportunities and threats within the industry. The SWOT Analysis can help management to better understand how the business is doing in comparison to competitors. [|http://books.google.ca/books?hl=en&lr=&id=F6SQldy8KacC&oi=fnd&pg=PR6&dq=marketing+audits+SWOT&ots=AvMdrgu0xR&sig=33H-W1Kj0bFnsETyDVTpGJEOSsI#v=onepage&q=marketing%20audits%20SWOT&f=false]
 * // Marketing Audits SWOT //

2. ** Generating, Refining, and Evaluating Potential Marketing Actions ** Advertising pretesting is based on qualitative or quantitative criteria through methods such as, focus groups, consumer juries, dummy vehicles, physiological tests, etc. Advertising pretesting is used to ensure that the companies advertising objectives are met before all final decisions are made. Pretesting allows companies to better understand their target audience’s needs and desires. A company may choose to use advertising pretesting for larger campaigns to ensure that the target audience is reached and connected with on the basis of a new campaign. The following is a link that shows a Cadbury chocolate commercial from 2009 that did not do well in the initial pretesting stages but ended up being very successful as it created awareness about the product because it was memorable for consumers at the time. [] New product prototype testing allows companies to develop and introduce their products to the market for the first time. Testing prototypes in the market before finalizations are put in place allow you to better prepare for market entry. Prototype testing also allows companies to make adjustments to the product to better meet the needs of the consumers. Some diet clinics use prototype testing to more accurately monitor how the product works on real clientele. These clinics make sure that the supplements are safe to prescribe and have people volunteer to try the supplement for a specified period of time. [] (The above link is a website that outlines the importance of prototype testing for dietary supplements.)
 * // Advertising pretesting //
 * // New-product prototype testing //

3. ** Monitoring Marketing Performance ** Customer satisfaction is of high importance to all companies, regardless of the industry. Without customers to buy the products and services being offered, the business would cease to exist. Customer Satisfaction studies allow companies to monitor what they are doing right and wrong in the view of the consumers. Customers are what keep businesses running and they can provide vital information to help businesses improve. An example of a trade that customer satisfaction is of high importance to is home-builders and contractors. J.D Power and Associates offers a program in Alberta to new homeowners that allow them to rate and provide feedback on their experiences throughout the entire building process. []
 * // Customer Satisfaction Studies //

Employee satisfaction is directly linked to employee engagement and the outcome and success level of the business. Employees that are content in their work places will perform better and provide better service to customers, creating an overall better experience for all members of the business. Employee satisfaction studies tell employers if staff is satisfied in the current work environment and provide knowledge that may assist them in implementing new techniques to improve on current conditions.
 * // Employee Satisfaction Studies //

4. ** Improving Marketing as a Process ** First managers must set realistic and attainable performance goals. They need to understand what they need to improve and by how much. If managers can learn from and about the industry market they are more likely to succeed. Managers are provided with numerous opportunities to learn about the market, through customers, employees, competitors, and distributors. Advertising tends to have significant impact on consumers as they are bombarded with hundreds of advertisements daily. Advertising affects individuals differently depending on consumer loyalty and price sensitivity. Long-term advertisements are seen to reduce price sensitivity among loyal consumers and increase price sensitivity in non-loyal consumers. [] The above website is a link to the MSI website that discusses in further detail the effects of long-term advertising.
 * // How Managers learn about the market //
 * // The impact of long-term advertising on consumer choice //

3.1 Explain why marketing research was not popular before the Industrial Revolution.
- Businesses were located near their customers before the Industrial Revolution - the economy was based on barter exchange between artisans and craftsmen directly with their customers - there was no need to “study” their consumers since they were interacting directly with them on a daily basis - they knew their customers’ needs and wants right away - There was very little global exchange, therefore low marketing elsewhere was not needed.

== 3.2 Distinguish among full service supplier firms, limited-service supplier firms, syndicated data service firms, standardized service firms, customized service firms, and online research service firms. Give situations where you would use each type. ==

Marketing research projects can be completed entirely by full-service supplier firms. Full-service supplier firms often perform all tasks in the marketing research process. Typically full-service supplier firms are larger in size and have the needed skills to perform in all aspects of the research process.
 * Full-service Supplier Firms: **

Marketing research is restricted to minimal activities in limited-service supplier firms. They specialize in only a few stages of the marketing research project.
 * Limited-service Supplier Firms: **

Grocery stores and/or retail stores may choose to use limited-service supplier firms to complete marketing research. A grocery store may aspire to evaluate only the level of customer service achieved and has the opportunity to choose a supplier that is specialized in that particular type of marketing research.

These service firms collect data and information and provide the research in standardized form to a large number of companies. A syndicate is a self-organized group of companies that negotiates specific business or advocates on a common interest. These groups are provided with equal information that has not been modified to meet any one company’s particular needs. Companies that support a like cause such as environmental issues or poverty may choose to collaborate and may choose to receive data as a syndicate. Standardized service firms use an established process to collect all research data, and provide each client with specific information tailored to their needs. A benefit to Standardized service firms is that several clients can share in the costs of the standardized research process.
 * Syndicated data service firms: **
 * Standardized Service Firms: **

Smaller firms that cannot afford the high expenses that accompany research objectives may choose to use standardized service firms. The process of collecting data is standardized but each client still receives data that is adapted to their specific needs.

Customized service firms deal with each client’s problem as a unique project. The research is tailored to meet the individual needs of one client. An extensive amount of time and effort is put into the research project and addresses the problem at hand. Full-service research companies often address these services and can be very expensive.
 * Customized Service Firms: **

An example of a situation in which a company may choose to use customized service firms for research would be when dealing with a unique product or service. If a company is providing a unique service then they would likely want the research known only to those within the company. Conducting private research projects may give a company competitive advantage.

Most online research service firms could be placed in any of the other categories as virtually all firms use online research today. Providing services online is the specialization of online research service firms. Online research is becoming more and more popular. Large and small companies would be able to use online research service firms. The information provided is standardized and readily available to others.
 * Online Research Service Firms: **

3.3 What advantages does a company enjoy through maintaining its own internal marketing research department? -Firms with higher sales volumes (over $500 million) usually have their own formal internal marketing department -they can afford it and can staff the department

Many advantages to having an internal marketing department: - Staff can be fully aware of the firm’s operations as well as changes in the industry - With the growing use of databases, internal marketing department can provide up-to-date information whenever needed - Departments within the firm can communicate amongst each other to get the best information possible - Only spend 1% of sales on marketing research
 * Better insight to identify opportunities and problems suitable for marketing research
 * Encourages increased cohesion within the company

- They can see the wider picture within a particular company (ie. company philosophy), by staying fluent in company ideology they can see the exact formula that is needed to build a comany from the backbone of its industry professionalism. An internal marketing research department spends a specific amount of daily time on projects that attain possible opportunities in the marketplace perpetually.