Marketing Research

1Prof. Chinmay Gandhi

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Chapter 1

Introduction to Marketing Research

Prof. Chinmay Gandhi

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What is Marketing Research? Marketing research is "the process or set of processes that links

the consumers, customers, and end users to the marketer through

information — information used to identify and define marketing

opportunities and problems; generate, refine, and evaluate

marketing actions; monitor marketing performance; and improve

understanding of marketing as a process.

Marketing research specifies the information required to address

these issues, designs the method for collecting information,

manages and implements the data collection process, analyzes the

results, and communicates the findings and their implications.

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Used to identify and define market opportunities and problems

Generate, refine, and evaluate marketing performance

Monitor marketing performance

Improve understanding of marketing as a process

Marketing Research

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Definition of Marketing Research

Marketing research is the systematic and objective

identification

collection

Analysis

and use of information

for the purpose of improving decision making related to the

identification and

solution of problems and opportunities in marketing.

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Market Research

Specifies the information necessary to

address these issues

Manages and implements the data collection

process

Analyzes the results

Communicates the findings and their

implications

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Classification of Marketing Research

Problem Identification Research

Research undertaken to help identify problems which are not

necessarily apparent on the surface and yet exist or are likely to arise in

the future. Examples: market potential, market share, image, market

characteristics, sales analysis, forecasting, and trends research.

Problem Solving Research

Research undertaken to help solve specific marketing problems.

Examples: segmentation, product, pricing, promotion, and distribution

research.

1-8A Classification of Marketing Research

Marketing Research

Problem Identification Research

Problem Solving Research

Market Potential ResearchMarket Share ResearchMarket Characteristics ResearchSales Analysis ResearchForecasting ResearchBusiness Trends Research

Segmentation Research

Product Research

Promotion Research

Distribution Research

Fig 1.1

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Problem Solving Research

Determine the basis of segmentation

Establish market potential and responsiveness for various segments

Select target markets

Create lifestyle profiles: demography, media, and product image characteristics

SEGMENTATION RESEARCH

Test concept

Determine optimal product design

Package tests

Product modification

Brand positioning and repositioning

PRODUCT RESEARCH

Table 1.1

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Problem Solving ResearchTable 1.1 cont.

PRICING RESEARCH

Pricing policies

Importance of price in brand selection

Product line pricing

Price elasticity of demand

Initiating and responding to price changes

$ALE

PROMOTIONAL RESEARCH

Optimal promotional budget

Sales promotion relationship

Optimal promotional mix

Media decisions

Creative advertising testing

Evaluation of advertising effectiveness

0.00% APR

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Problem Solving ResearchTable 1.1 cont.

DISTRIBUTION RESEARCH

Determine…

Types of distribution

Attitudes of channel members

Intensity of wholesale & resale coverage

Channel margins

Location of retail and wholesale outlets

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Marketing Research Process

Step 1: Problem Definition

Step 2: Development of an Approach to the Problem

Step 3: Research Design Formulation

Step 4: Fieldwork or Data Collection

Step 5: Data Preparation and Analysis

Step 6: Report Preparation and Presentation

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The Role of Marketing Research

ControllableMarketing

•Product

•Pricing

•Promotion

•Distribution

Variables

Marketing Research

MarketingDecisionMaking

ProvidingInformation

AssessingInformationNeeds

Marketing Managers

• Market Segmentation

• Performance & Control

• Target Market Selection• Marketing Programs

UncontrollableEnvironmentalFactors

•Economy

•Technology

•Laws & Regulations

•Social & Cultural Factors

•Political Factors

Customer Groups

• Employees• Shareholders

Suppliers•

• Consumers

Fig 1.2

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Management Information Systems vs.Decision Support Systems

Unstructured Problems

Use of Models

User Friendly Interaction

Adaptability

Can Improve Decision

Making by Using “What if”

Analysis

DSSMIS

Structured Problems

Use of Reports

Rigid Structure

Information Displaying

Restricted

Can Improve Decision Making

by Clarifying Data

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AAPOR: American Association for Public Opinion Research (www.aapor.org)

AMA: American Marketing Association (www.ama.org)

ARF: The Advertising Research Foundation (www.amic.com/arf)

CASRO: The Council of American Survey Research Organizations (www.casro.org)

MRA: Marketing Research Association (www.mra-net.org)

QRCA: Qualitative Research Consultants Association (www.qrca.org)

RIC: Research Industry Coalition (www.research industry.org)

Marketing Research Associations Online

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ESOMAR: European Society for Opinion and Marketing Research (www.esomar.nl)

MRS: The Market Research Society (UK) (www.marketresearch.org.uk)

MRSA: The Market Research Society of Australia (www.mrsa.com.au)

PMRS: The Professional Marketing Research Society (Canada) (www.pmrs-aprm.com)

Marketing Research Associations Online