Some Management Information Needs in Different phases of the Administrative Process
A. Phase 1: Settings Goals and establishing Strategies: Research can monitor: Dissatisfaction and needs in relevant market segments. Demand size and trend industry /market structure and composition, competition market shares and profitability. Technological and materials innovations. Supply condition and prices. Distribution, environmental and legal developments. Media Trends.
B. Phase 2: Developing a Plan: Research can: Identify key market segments by product category. Identify market segment attitudes toward present products, promotions, and advertising Test the appeal of potential product producer attributes. Test the effectiveness of advertising and promotion. Evaluate the needs and attitudes of channel members.
C. Phase 3: Putting the Plan into Action: Research can monitor: Total industry and product class sales. Firm’s sales, by product and market Product availability in retail stores, shelf space, retail support, and so on. The cost and effectiveness of the firm’s marketing efforts, by product and market and by advertising promotion and so on. Awareness and trail in relevant market segments. Changes in competitive spending levels and strategies including price, packager, promotion and so on.
D. Phase 4: Evaluating the Plan’s Effectiveness; End of period compilation and aggregation of operating data to present an accurate picture of performance. Also, summary of survey findings on consumer awareness, trail attitudes preferences repurchase rates and so on.
Today many companies no longer think of marketing research in terms of only a single project. Through experience managers have learned that they with recurring decisions. As a consequence, they have fond it very helpful to use several regularly scheduled research projects that support or complement one another in providing mangers with the appropriate information needed for those recurring decisions.
When a company begins to regularly schedule the coordination of findings from several research projects designed to assist in specific recurring decision situations, the company has begun to develop a marketing information system – MIS for short. Such marketing information systems are beginning to evolve as the following two examples illustrate.
Concluding comments on marketing research usage: The foregoing discussions and materials show that marketing research being used to measure the characteristics of markets, to obtain information needed for forecasting, to evaluate new product ideas and improve easing products, to assist managers in making better advertising and promotion decisions, and for many other purposes. Marketing research is used throughout the four phases of the administrative process, from establishing strategies all the way through to evaluating the effectiveness of the marketing plan used to try to achieve the established strategy. The role of marketing research appears to be handed for higher levels of sophistication and utilization as more and more companies begin to develop to develop their own marketing information systems.
Interaction between Management and Marketing research:
Although the use of marketing research has been growing steadily the relationship between managers and marketing researchers is not always a smooth one. From the foregoing discussions the reader may have gained the impression that managers encounter no problems when they need to have some information obtained through research. In fact it is increasingly evident that misunderstanding often existS between managers and marketing researchers and that both parties lack good understanding of the role and needs of the other party.
Some of managements’ complaints about researchers are:
1. Research is not problem-oriented. It tends to provide a plethora of facts, not actionable results.
2. Researchers are too involved with techniques and they appear to be reluctant to get involved in management problems.
3. Research is slow, vague, and of questionable validity
4. Researchers cannot communicate, they do not understand and they do not talk the language of management.
Researchers have their complaints about management:
1. Management does not include research in discussions of basic problems Management tends to ask only for specific information about parts of problems.
2. Management pays no more than lip service to research and does not really understand or appreciate its value
3. Management does not allow enough time for research. They draw preliminary conclusions based on early or incomplete results.
4. Management relies more on intuition and judgment than on research. Research is used as a crutch, not a tool.