Exploring

Marketing Research
Basit Afzal
Chapter 1:

The Nature of Marketing

Research
Marketing research is one of the principal tools for
answering questions because it:

Basic research
Attempts to expand the limits of
knowledge.

Not directly involved in the solution to a
pragmatic problem

Links the consumer, customer, and public to the

market through information used to identify and define
marketing
Generates, refines, and evaluates marketing actions
Monitors marketing performance
Underlines the understanding of marketing as a
process

Applied research
Conducted when a decision must be
made about a specific real-life problem

Scientific method
The analysis and interpretation of
empirical evidence (facts from
observation or experimentation) to
confirm or disprove prior conceptions

Marketing Strategy Stage

Example of Market Research

1. Identifying and Evaluating

Opportunities

Mattel Toys investigates desires for play

experiences
MTV, monitoring demographic trends,
learns the Hispanic market is growing
rapidly

2. Analyze market Segments and

Cadillac investigates buyers
Select Target Markets
demographic characteristics
3. Plan and Implement a
Price: Safeway does a competitive
Marketing Mix
pricing analysis
Distribution: Caterpillar Tractor Co.
investigates dealer service program.
Product: Oreo conducts taste test, Oreo
cookie vs. Chips Ahoy
Promotion: consumers recall Coke
This years market share is compared to
last years.

4. Analyze Marketing
Performance

Performance-monitoring research
Research that regularly provides
feedback for evaluation and control

Indicates things are or are not going as
planned

Research may be required to explain
why something went wrong

Determining When to Conduct Marketing

Research
Time
Constraints
Is sufficient time
available before
a decision
must be made?

No

Availability
of Data
Yes

Is the info
already on
hand

No

Nature of
Decision
Yes

Is the decision Yes

strategic
importance?

No

Do Not Conduct Marketing Research

Benefits
vs. Costs
Does the value Yes
of info exceed
the cost of
research?

No

Conduct
Marketing
Research

Determining when to conduct

marketing research
Time constraints

Availability of data

Nature of the decision

Benefits versus costs

Marketing Research (MR)

Potential value of a marketing research effort should

exceed its estimated costs
Costs
Value
Decreased Certainty
Increased Likelihood
of a Correct Decision
Improved Marketing
Performance and
Resulting Higher
Profits

Research
Expenditures
Delay of Marketing
Decision and
Possible Disclosure
of Information to
Rivals
Possible Erroneous
Research Results

Marketing Research Defined

This process includes:

the systematic
design, collection,
analysis and
reporting of data and
findings relevant to a
specific marketing
situation facing the
company
(Philip Kotler)

specifying what information is required;

designing the method for collecting information;
managing and implementing the collection of data;
analyzing the results; and
communicating the findings and their implications.

IN-HOUSE Vs OUTSIDE
RESEARCH

IMPORTANCE OF MR
Shift from local to national to international
to multinational

Transition from Consumer need to wants

Shift from Price to Non-price competition

Uncertainty Influences the Type of

Research
CAUSAL OR
DESCRIPTIVE

EXPLORATORY
COMPLETELY
CERTAIN

ABSOLUTE
AMBIGUITY

Economic factors
Expertise
Special equipment
Political consideration
Promotional / legal
consideration
Administrative facts
Confidentiality

Degree of Problem Definition

Exploratory Research
(Unaware of Problem)
Our sales are declining and
we dont know why.
Would people be interested
in our new product idea?

Descriptive Research
(Aware of Problem)

Causal Research
(Problem Clearly Defined)

What kind of people are buying Will buyers purchase more of

our product? Who buys our
our products in a new package?
competitors product?
Which of two advertising
What features do buyers prefer campaigns is more effective?
in our product?

Exploratory Research
Initial research conducted to clarify and
define the nature of a problem

Does not provide conclusive evidence

Subsequent research expected

Causal Research

Conducted to identify cause-and-effect

relationships

Descriptive Research
Describes characteristics of a
population or phenomenon

Some understanding of the nature of
the problem

I keep six honest serving men, (they

taught me all I knew), their names are
what, and why, and when,
when, and how,
how
and where and who.
--Rudyard Kipling

Defining Problem Results in

Clear Cut Research Objectives
Symptom Detection
Analysis of
the Situation

Problem Definition

Exploratory
Research
(Optional)

Group discussion and focus group

Postal research questionnaires

Diary panels - sources of continuous
data

In-home scanning - hand-held light pen
to scan barcodes

Telephone research

Observation
home audit

direct observation

In-store testing

Primary data - collected firsthand

Secondary data - already exists, desk
research

Quantitative research - statistical basis

Qualitative research - subjective and
personal

sampling - studying part of a
population to learn about the whole

Statement of
Research Objectives

Terminology of Marketing
Research

CHALLENGES
Proper problem definition

Recruiting & Training of Staff

Acceptance of a stochastic world

Timely research & reports

Biased interpretive frames