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Chapter One

Introduction to Marketing Research

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WHAT IS MARKETING?

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WHAT IS MARKETING?Identification and satisfaction of needs andwants of the customers

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Marketing information regarding Customers

Competitors

Other forces in the marketIs very crucial

Task of Marketing Research:

Assess information needs and providemanagement with relevant, accurate,reliable, valid, current and actionable

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Competitive Intelligence

The process of enhancing marketplacecompetitiveness through a greaterunderstanding of a firms competitorsand the competitive environment.

Its ethical

Informed decisions about everything

Crucial for emerging knowledgeeconomy

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Redefining Marketing Research

The American Marketing Association(AMA) redefined Marketing Researchas:

The function which links the consumer, the

customer, and public to the marketer

through INFORMATION

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Used to identify and

define market

opportunities and

problems

Generate, refine, andevaluate marketing

performance

Monitor marketing

performance

Improve understanding

of marketing as a

process

Redefining Marketing Research

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Definition of Marketing Research

Marketing research is the systematicand objective

identification

collection

analysis

dissemination 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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Systematic

Systematic planning at eachmarketing step.

Methods at each step

Well documentation

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Objective

M.Researchattempts to provideaccurate info: that reflects truestate of affairs

M.Research should be free frompolitical or personal biasness

Find it , tell it like it is

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Research Problem=Marketing Opportunity

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Classification of Marketing Research

Organizations are engaged in M.Research fortwo reasons

1. Identify the Marketing problem

2. Solve marketing Problem

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Classification of Marketing Research

Problem Identification Research |To help identify problems which are not

necessarily apparent on the surface and yetexist 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 distributionresearch.

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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

Test marketing

Control score tests

PRODUCT RESEARCH

Table 1.1

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Problem Solving Research

Table 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

Copy decisions

Media decisions

Creative advertising testing

Evaluation of advertising effectiveness

Claim substantiation

0.00% APR

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Problem Solving Research

Table 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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Step 1: Problem Definition

Considerations: Purpose of the study

Relevant background information

Information needed Use of info: in decision making

Discussions with decision makers

Interviews with industry experts

Analysis of secondary data and other

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1-20Step 2: Development of an Approach to the

Problem

Formulate an objective or theoreticalframe work

Analytical models

Research questions Hypothesis

Discussion with management and industry expertsAnd other

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Step 3: Research Design Formulation

Blueprint for conducting the research project

Details the procedures

Its main purpose is to Design a study thatinclude

Definition of information needed

Secondary data analysis

Qualitative research

Methods to qualitative research(Survey, observationand experimentation)

Measurement and scaling procedures Questionnaires design

Sampling process and sample size

Plan of data analysis

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Step 4: Fieldwork or Data Collection

Field work in case of personalinterviewing

e.g. In-home, shopping malls.

Mediums Personal interviewing

Telephone

Electronic mail

etc

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Step 5: Data Preparation and Analysis

Preparation Editing

Coding

TranscriptionVerification

Analysis to drive necessary

information to the problem

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1 24Step 6: Report Preparation and

Presentation

Final findings should bedocumented in written report

Report includes:

Used approaches Research design

Methods of data collection

Data collection and analysisprocedures

Presentation of results and findings(comprehensible)

Oral presentation is essential part

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The Marketing research industry

Consist of External supplierswhoprovide marketing researchservices

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Marketing Research Suppliers & Services

LIMITED SERVICE

Branded

Products

and Services

Data

Analysis

ServicesAnalytical

Services

Coding and

Data Entry

Services

Field

Services

FULL SERVICE

Syndicate

Services

Standardized

Services

Customize

d

Services

Internet

Services

RESEARCH

SUPPLIERSEXTERNAL

INTERNAL

Fig 1.3

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Limited Service

Field Service: Whose primary services/expertise are in

collecting data using all mediums.

Coding and data entry services: Whose expertise are toconvert collected data in to usable database.

Analytical services:

Those who provide guidance in development of researchdesign.

e.g. Pretesting of questionnaires, determining the bestmeans of collecting data and Sampling plan etc.

Data Analysis Services: (Tab houses) Those who have

expertise in conducting statistical analysis.Branded marketing research products: those who are

specialized in collecting and analyzing data with brandedservices/products to address specific type of researchproblems. e.g. TeleNation

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Selected Marketing Research

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Selected Marketing ResearchCareer Descriptions

Vice-President of Marketing Research: The senior position inmarketing research. The vice president (VP) is responsible for the

entire marketing research operation of the company and serves

on the top management team. This person sets the objectives and

goals of the marketing research department.

Research Director: Also a senior position. The research director hasthe general responsibility for the development and execution of all

the marketing research projects.

Assistant Director of Research: Serves as an administrative assistant

to the director and supervises some of the other marketing

research staff members.

(Senior) Project Manager: Has overall responsibility for design,

implementation, and management of research projects.

Statistician/Data Processing Specialist: Serves as an expert on

theory and application of statistical techniques. Responsibilities

include experimental design, data processing, and analysis.

Fig 1.4

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Selected Marketing Research Career Descriptions

Vice President of MarketingResearch

Part of companys top

management team

Directs companys entire marketresearch operation

Sets the goals & objectives of the

marketing research department

Research DirectorAlso part of senior

management

Heads the development

and execution of allresearch projects

Assistant Director of Research

Administrative assistant to director

Supervises research staff members

Senior Project ManagerResponsible for design, implementation, &

research projects

Fig 1.4 cont.

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Analyst Handles details in execution of

project

Designs & pretests questionnaires

Conducts preliminary analysis ofdata

Junior Analyst Secondary data analysis

Edits and codes questionnaires

Conducts preliminary analysis of data

Fieldwork DirectorHandles selection, training,

supervision, and evaluation of

interviewers and field workers

Senior Analyst Participates in the development of projects

Carries out execution of assigned projects

Coordinates the efforts of analyst, junior analyst, & other personnel in the

development of research design and data collection

Prepares final report

Fig 1.4 cont.

Statistician/Data Processing Serves as expert on theory and

application on statistical techniques

Oversees experimental design, data

processing, and analysis

Selected Marketing Research Career Descriptions

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Criteria for Selecting a Research Supplier

What is the reputation of the supplier?

Do they complete projects on schedule?

Are they known for maintaining ethicalstandards?

Are they flexible?

Are their research projects of high quality?

What kind and how much experience does thesupplier have? Has the firm had experiencewith projects similar to this one?

Do the supplier's personnel have both technicaland non-technical expertise?

Can they communicate well with the client?

Competitive bids should be obtained andcompared on the basis of quality as well asprice.

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Preparation for a Career in Mktg. Research

Take all the marketing courses you can.

Take courses in statistics and quantitativemethods.

Acquire Internet and computer skills.Knowledge of programming languages is an

added asset.

Take courses in psychology and consumerbehavior.

Acquire effective written and verbalcommunication skills.

Think creatively. Creativity and common sensecommand a premium in marketing research.

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M t I f ti S t & D i i S t

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Management Information Systems & Decision SupportSystems

MIS: set of procedures and practices employedin analyzingand assessingMarketinginformation gathered continuously fromsources inside and outside of a firm.

Pertinent information to the decision makers onongoing basis

Provide info: continuously rather than ad-hocresearch studies

Customized procedures (Decision makers)

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Decision Support System(DSS)

System that enables decision makers to interact directly

with both database and analysis models.

e.g. Procter & Gamble chose Polycom forworldwide video communications support

Types:

Communications Driven DSS

Data-Driven DSS

Document-Driven DSS

Knowledge-Driven DSS

Model-Driven DSS

Spreadsheet-based DSS

Web-based DSS

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