MANAGERS DECISION AND CHARACTERISTICS OF GOOD MARKETING RESEARCH
Effective marketing research involves the 6 steps given in the below:
1. Define the problem and research objectives.
2. Develop the research plan.
3. Collect the information.
4. Analyze the information.
5. Present the findings
6. Make the decision.
We are giving here a case of American Airlines who are constantly looking for new ways to serve its passengers. One of their ideas is to provide Internet service to the First-Class passengers who are high-business people traveling long hours in their planes. Therefore, the managers have commissioned a market research to find out whether it is worth the efforts.
The managers who commissioned the research need to weigh the evidence. If their confidence in the findings is low, they may decide against introducing the in-flight Internet service. It they are predisposed to launching the service, the findings support their inclination. They may even decide to study the issues further and do more research. The decision is theirs, but hopefully the research provided them with insight into the problem. (See below)
A growing number of organizations are using a marketing decision support system to help their marketing managers make better decisions. MITâ€™s John Little defines a marketing decision support system (MDSS) as a coordinated collection of data, systems, tools, and techniques with supporting software and hardware by which an organization gathers and interprets relevant information from business and environment and turns it into a basis for marketing action.
The model takes into account travel time as well as selling time. When launched, the model was tested at United Airlines with an experimental group that managed to increase its sales over a matched control by 8 percentage points. Once a year, Marketing News lists hundreds of current marketing and sales software programs that assist in designing marketing research studies, segmenting markets, setting prices and advertising budgets, analyzing media, and planning sales force activity.
In this article we are listing below the 7 characteristics of Good Marketing Research:
1 Scientific Method
Effective marketing research uses the principles of the scientific method: careful observation, formulation of hypotheses, prediction, and testing.
2. Research creativity
At its best, marketing research develops innovative ways to solve a problem: a clothing company catering to teenagers gave several young men video cameras, then used the videos for focus groups held in restaurants and other places teens frequent.
3. Multiple Methods
Marketing researchers shy away from over-reliance on any one method. They also recognize the value of using two or three methods to increase confidence in the results.
4. Interdependence of models and data
Marketing researchers recognize that data are interpreted from underlying models that guide the type of information sought.
5. Value and cost of information
Marketing researchers show concern for estimating the value of information against its cost. Cost are typically easy to determine , but the value of research is harder to quantify. It depends on the reliability and validity of the findings and managementâ€™s willingness to accept and act on those findings.
6. Healthy skepticism
Marketing researchers show a healthy skepticism toward glib assumptions made by managers about how a market works. They are alert to the problems caused by â€œMarketing Mythsâ€?
7. Ethical marketing
Marketing research benefits both the sponsoring company and its customers. The misuse of marketing research can harm or annoy consumers, increasing resentment at what consumers regard as an invasion of their privacy or a disguised sales pitch.