Ғ. Н.Қисметова Ағылшын тілі грамматикасы

UNIT 12
Marketing research and channels of marketing
Text A.
Philip Kilter defines marketing as “a social and managerial process 
by which individuals and groups obtain what they need and want through 
creating and exchanging products and values with other”. Marketing 
research is used to assess the market’s response to the firm’s marketing 
inputs which include promotional activities such as price discounting, 
placement of in-store displays, multimedia advertising, and coopering; 
expanding distribution; and product development and enhancement. The 
goal of marketing research is to assist the firm in determining the most 
effective, i.e. most profitable, mix of marketing inputs given knowledge of 
the marketplace.
As a formal scientific discipline marketing research began in the 
early twentieth century with most analyses being based on survey data. In 
the 1930s, the A.C. Nielsen Company began collecting in-store data using 
manual audits. Today, with the advent of scanning technology, the amount 
of timely data available from stores and household has grown 
exponentially. Coincident with this data explosion, used data delivery 
systems and the techniques used to analyze the data have become 
increasingly sophisticated. Marketing research is an integral part of 
organizations in both the consumer durable and nondurable goods sectors, 
and in resent years the use of marketing principles has become increasing 
prevalent among nonprofit and government sectors.
Marketing research is interdisciplinary requiring the knowledge of 
economists, operations researchers, psychologists, and statisticians. For the 
economist, the economic theory of consumer behavior and the theory of 
the firm provide basic building blocks. Marketing research can be viewed 
as an operational or tactical activity and as a strategic activity. Although 
both activities require knowledge of the workings of the marketplace at 
both the macroeconomic and microeconomic levels, tactical analysis focus 
on monitoring a product’s performance and testing the working 
effectiveness of marketing programs relative to competitors. Strategic 
research involves selecting and optimizing marketing opportunities.
In order to understand the marketplace, the researcher must define the 
market in terms of both the geographic unit and the product class and 
collect data Data on consumer purchases permit an analyst to determine 
what was sold and how particular brands performed relative to each other. 
In addition to sales and price information, causal data assist the analyst in
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understanding the reason that sales took place. Examples of causal data are 
newspaper advertising which indicates the extent of retailer advertising 
support source of information for understanding the source of sales is 
television advertising. Measuring the effects of television advertising is 
relatively difficult owing to the dynamic effects such advertising has on 
consumer behavior, however.
Once the data are collected, the analyst may choose to evaluate the 
information by simply looking at the raw series together over time or 
compute straightforward measures such as market share in order to arrive 
at a qualitative assessment of market activity. Statistical models might be 
estimated in order to address issues such as temporary price reduction, 
effectiveness, the extent of cannibalization due to promotion activity, i. 
e...the extent to which sales of one specific product decline as a result of 
promoting another similar product produced by the same manufacturer, the 
competitive effects of promotions, differences between markets, 
competitive pricing points, long-term price elastic ties.
Forecasting is an activity likely to be undertaken by a business economist 
working in a marketing research department. Conventionally, business 
economists have been responsible for producing forecasts for the 
macroeconomic environment or for activity within industry groups. More 
recently, forecasting movements in mature product categories, in segments 
within categories, and in brands has increased in importance.
Forecasting the success or failure or new product introductions is also 
important. New product introductions require a considerable amount a 
firms resources, and failure to read the market place correctly and early in 
the development process can lead to costly errors. The development of a 
new brand begins with the identification of new market opportunities. 
Consumer survey research directed at identifying the market response to 
the brand concept and elements of the marketing mix, e.g. , pricing, is 
typically conducted. On the basis of the survey a firm may decide to 
continue with the development plans for the brand, revise current plans in 
response to the survey results, or cancel development plans completely. 
Comparisons may also be made between attitudes toward the new concepts 
and exiting products.

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