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Anderson, Paul F (1982), Marketing, strategic planning and the theory of the rm , Journal of Marketing, 46 (Spring), 15 26 Day, George S (1984), Strategic Marketing Planning St Paul, MN: West Publishing Co
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Marketing decision makers have selective needs for information Marketing decision makers are usually faced with a time constraint and must make decisions rather quickly so both the timelines and accuracy of information are important As marketing activities become increasingly complex and broader in scope, the nature of the marketing information required also changes Marketing information must be comprehensive, sophisticated and have a wide angle of focus At the same time organizations face a data explosion which requires the manager to screen data for effective and ef cient generation of useful information Organizations are concerned with the management of the process of informing marketing decisions but may not be directly involved in the actual research process, normally the responsibility of specialists in the organization or professional research organizations The marketing manager must be able to recognize the need for marketing research in the organization and how best to carry out a marketing research study
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Strategic and operational marketing information
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Senior managers in the organization require information to be collected from time to time on an ad hoc basis to help them take highly unstructured decisions whereas operational managers require prespeci ed information to take highly structured decisions It is possible to envisage a continuum of information needs and decisions for different levels of management:
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Information needs Management level Strategic management Decisions Unstructured
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The nature of the information needed may be separated, therefore, into descriptive information about the market itself, strategic marketing information and information concerning operational issues Regarding descriptive
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[76] Strategic Marketing
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information about the market itself, the organization may be interested in knowing which markets hold the greatest promise and within these markets which segments are likely to be more lucrative than others It is also necessary to determine risk levels in the market Information for strategic marketing decisions might include, for example, information on the competitive position to adopt and the entry mode most appropriate for a new product market Similarly, the sequence of subsequent markets to enter and the timing of market entry require information of a strategic nature In general terms strategic marketing information is required to help the organization discover the sales potential for a particular product or service In speci c terms marketing information provides answers to the following issues: Identity and description of the market segments offering greatest sales potential Attributes of the product most in demand and any adaptation needed Expected sales revenues at different prices Alternative marketing options for the product Costs of achieving marketing objectives Operational decisions for which information is required refer to issues arising in implementing the marketing programme Here the organization is concerned about the relative emphasis to place on the elements of the marketing mix It is also necessary to have operational marketing information when the product has been in the market for some time and it becomes necessary to ne tune or calibrate levels of the elements of the marketing mix
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Information on latent customer needs
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A customer orientation means directly appealing to customers by offering a better match of products or services to customer needs A customer orientation views the organization as identifying the needs and wants of potential customers and then designing, providing and communicating values to match customer requirements As a result, the organization serves satis ed customers who produce high levels of sales and long-term pro ts It is assumed that customers carry out intensive searches to nd the product or service which meets their needs and that, once found, loyal patronage follows A successful customer orientation suggests that the organization must: Identify customer needs and wants with great accuracy Determine how much customers value the different things they want
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Obtaining customer information [77]
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Design and provide products and services to meet customer requirements and communicate these values to customers It has been argued, however, that a customer orientation is based on four questionable assumptions: that customers know what they want; that marketing research can ascertain what potential customers want; that satis ed customers will reward the organization with repeat purchases and loyalty; and that the competitive offers are signi cant enough to be important to customers (Oxenfeldt and Moore 1978, p 44) These authors cite a number of situations where the above assumptions may not hold If customers do not know or cannot articulate what they want, the organization may be forced to guess If customers cannot identify signi cant differences among products and the purchase is not very important, brand choice will not be based on a search of all brands in the category but on a brand that satis ed in the past, on recall of advertising or on a sales promotion When such product parity occurs, organizations sometimes attempt to introduce signi cant product or service improvements or emphasize small differences through advertising, allowing greater retail margins to encourage them to promote the organization s brand None of these approaches need be in the customer s best interests but they are commonly used by many organizations Too great a focus on customers can lead to rapid and illusory product innovation and differentiation, short product life cycles, and an emphasis on small batch production of specialized products and services This is especially true in af uent markets when incomes are rising In such circumstances it is especially important to take account of trends in the environment and the activities of competitors A special case is that of high technology products; customers only know what they have experienced; they cannot imagine what they do not know about emergent technologies and new materials, for example They do, however, understand outcomes what a new product or service should do for them By focusing on the bene ts a new product might provide customers, Ulwick (2002) suggests that data may be used to formulate a completely new product strategy that addresses important unsatis ed needs