8 - The role of market research in the strategy making Flashcards
(54 cards)
What is the primary role of market research in strategy making?
Market research provides essential information and insights to make informed decisions, mitigate risks, and identify opportunities in the market.
What is the definition of market research?
It’s the systematic process of gathering, analyzing, and interpreting information about a market, including customers, competitors, and the environment.
What are the four fundamental aims of market research?
- Identify and define marketing opportunities/problems.
- Generate, refine, and evaluate marketing actions.
- Monitor marketing performance.
- Improve understanding of marketing as a process.
What is a “management problematic”?
A broad, action-oriented decision-making challenge or opportunity a manager faces.
Give an example of a management problematic.
How can we increase our market share in the smartphone industry?”
What is a “research problematic”?
A redefinition of the management problematic into a clear, concise, and actionable research question.
Give an example of a research problematic for the management problematic: “How can we increase our market share in the smartphone industry?”
“What are the key factors influencing consumer purchasing decisions for smartphones, and how do consumers perceive our brand compared to key competitors?”
What is secondary research?
Using existing data collected for purposes other than the current research project.
List the characteristics of secondary research methods.
Advantages
1. Cost-effective
2. Time-saving
3. Accessible
Disadvantages
1. Potential for irrelevance
2. Accuracy/reliability concerns
3. Outdated information
4. Lack of control
What is primary research?
Collecting original data specifically for the current research project.
List the characteristics of primary research methods.
Advantages:
1. Specific and relevant
2. Up-to-date
3. Control over data quality
4. Proprietary information
Disadvantages:
1. Time-consuming
2. Expensive
3. Requires expertise
4. Potential for bias
Why is there a need for complementary application of secondary and primary research methods?
Secondary research provides foundation and context, helps refine problems, and offers efficiency; primary research provides depth, specificity, and validation.
How can secondary and primary methods be applied complementarily?
Start with secondary research, identify information gaps, design primary research to fill those gaps, then analyze and synthesize both for strategic decisions.
What is a marketing database?
A centralized repository of information about customers, prospects, and other marketing-related data.
What is one possibility of using a marketing database?
Enables detailed customer segmentation and personalized communication.
What is one limitation of a marketing database?
Requires significant investment and maintenance; data quality issues.
What is database marketing?
A form of direct marketing that uses databases to generate personalized communications and offers.
What is one possibility of database marketing?
Highly targeted campaigns; improved customer retention.
What is one limitation of database marketing?
Can be perceived as intrusive; requires clean data
What is data mining?
The process of discovering patterns, trends, and anomalies in large datasets using statistical and computational techniques.
What is one possibility of data mining?
Identifying customer segments; predicting future purchasing behavior; optimizing pricing strategies.
What is one limitation of data mining?
Requires specialized skills; results need careful interpretation; ethical concerns.
What is the main role of Artificial Intelligence (AI) in market research and strategy?
AI can analyze vast amounts of data, identify complex patterns, and make predictions at speeds and scales impossible for humans.
List possibilities of AI in market research.
- Enhanced data analysis (e.g., sentiment from unstructured data).
- Predictive analytics (e.g., forecasting sales).
- Personalization at scale.
- Automated insights.
- Market simulation.
- Automated optimizaton