Chapter 1: The Role of Marketing Research in Management Decision Making

Question 1

Marketing

Answer 1

The process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives

Question 2

The Marketing Concept

Answer 2

A business philosophy based on consumer orientation, goal orientation, and systems orientation

Question 3

Consumer Orientation

Answer 3

The identification of an focus on the people or firms most likely to buy a product, and the production of a good or service that will meet their needs most effectively

Question 4

Goal Orientation

Answer 4

A focus on the accomplishment of corporate goals; a limit set on consumer orientation

Question 5

Systems Orientation

Answer 5

The creation of a system to monitor the external environment and deliver the desired marketing mix to the target market

Question 6

Marketing Mix

Answer 6

The unique blend of product/service, pricing, promotion, and distribution strategies designed to meet the needs of a specific target market

Question 7

External Marketing Environment

Answer 7

Marketing mix must be altered because of changes in the environment and to identify new opportunities

Question 8

Marketing Research

Answer 8

The planning, collection, and analysis of data relevant to marketing decision-making and the communication of the results of this analysis to management

Question 9

Three functional roles of Marketing Research

Answer 9

Descriptive, Diagnostic, and Predective functions

Question 10

Descriptive function

Answer 10

The gathering and presentation of statements of fact

Question 11

Diagnostic function

Answer 11

The explanation of data or actions

Question 12

Predictive function

Answer 12

Specification of how to use descriptive and diagnostic research to predict the results of a planned marketing decision

Question 13

Return on quality

Answer 13

A management objective based on the principles that:

• The quality being delivered is at a level desired by the target market
• Level of quality must have a positive impact on profitability

Question 14

Proactive management

Answer 14

Alters the marketing mix to fit newly emerging patterns in economic, social, and competitive environments

Question 15

Reactive management

Answer 15

Waits for change to have a major impact on the firm before deciding to take action

Question 16

Marketing strategy

Answer 16

A plan to guide the long-term use of a firm’s resources, based on its existing and projected internal capabilities and on projected changes in the external environment

Question 17

Applied research

Answer 17

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

Question 18

What results does applied research provide?

Answer 18

Short-term results solving firm-specific problems

Question 19

Basic (pure) research

Answer 19

Research aimed at expanding the frontiers of knowledge rather than solving a specific, programmatic problem

Question 20

What results does basic research provide?

Answer 20

Long-term results ultimately solving real-world problems

Question 21

Three broad categories of applied research

Answer 21

Programmatic, Selective, and Evaluative research

Question 22

Programmatic research

Answer 22

Research conducted to develop marketing option through marketing segmentation, marketing opportunity analysis, or consumer attitude and product usage studies

Question 23

Selective research

Answer 23

Research done to assess program performance

Question 24

Evaluative research

Answer 24

Research used to test decision alternatives

Question 25

When should a manager NOT conduct research?

Answer 25

When:

• Resources are lacking
• Research results would not be useful
• Opportunity for market entry has passed
• Decision has already been made, even when used improperly
• Unspecified objectives caused by lack of collaboration
• Information already exists
• Cost of conducting research outweigh benefits