In this sense, a firm's marketing department is often seen as of prime importance within the
functional level of an organization. Information from an organization's marketing department
would be used to guide the actions of other departments within the firm. As an example, a
marketing department could ascertain (via marketing research) that consumers desired a new
type of product, or a new usage for an existing product. With this in mind, the marketing
department would inform the R&D department to create a prototype of a product/service based
on consumers' new desires.
The production department would then start to manufacture the product, while the marketing
department would focus on the promotion, distribution, pricing, etc. of the product. Additionally,
a firm's finance department would be consulted, with respect to securing appropriate funding for
the development, production and promotion of the product. Inter-departmental conflicts may
occur, should a firm adhere to the marketing orientation. Production may oppose the installation,
support and servicing of new capital stock, which may be needed to manufacture a new product.
Finance may oppose the required capital expenditure, since it could undermine a healthy cash
flow for the organization.
Herd behavior in marketing is used to explain the dependencies of customers' mutual
behavior. The Economist reported a recent conference in Rome on the subject of the simulation
of adaptive human behavior. It shared mechanisms to increase impulse buying and get people "to
buy more by playing on the herd instinct." The basic idea is that people will buy more of
products that are seen to be popular, and several feedback mechanisms to get product popularity
information to consumers are mentioned, including smart card technologya Japanese chain of
convenience stores which orders its products based on "sales data from department stores and
research companies;" aMassachusetts company exploiting knowledge of social networking to
improve sales; and online retailers who are increasingly informing consumers aboutAn emerging
area of study and practice concerns internal marketing, or how employees are trained and
managed to deliver the brand in a way that positively impacts the acquisition and retention of
customers, see also employer branding.
Diffusion of innovations research explores how and why people adopt new products, services,
and ideas.With consumers' eroding attention span and willingness to give time to advertising
messages, marketers are turning to forms of permission marketing such as branded
content, custom media and reality marketing.
Marketing research involves conducting research to support marketing activities, and the
statistical interpretation of data into information. This information is then used by managers to
plan marketing activities, gauge the nature of a firm's marketing environment and attain
information from suppliers. Marketing researchers use statistical methods such as quantitative
research, qualitative research, hypothesis tests, Chi-squared tests, linear
regression, correlations, frequency distributions, poisson distributions, binomial distributions,
etc. to interpret their findings and convert data into information. The marketing research process
spans a number of stages, including the definition of a problem, development of a research plan,
collection and interpretation of data and disseminating information formally in the form of a
report. The task of marketing research is to provide management with relevant, accurate, reliable,
valid, and current information.
A distinction should be made between marketing research and market research. Market research
pertains to research in a given market. As an example, a firm may conduct research in a target market, after selecting a suitable mar