Chapter 2

THE MARKETING RESEARCH PROCESS

Ms. Mae E. Hernandez, MBA
Objectives:

• ∙ To understand the Marketing Research Process.

• ∙ To learn in detail about the various steps in the
Marketing Research Process
The Marketing Research Process

• Marketing Research reduces the uncertainty in the

decision-making process and increase the probability
and magnitude of success if conducted in a systematic,
analytical, and objective manner.
• Marketing research by itself does not arrive at marketing
decisions, nor does it guarantee that the organization will
be successful in marketing its products. It is only a tool
which helps in the decision making process.
The steps in Marketing Research Process

• Define the research problem

• Determine research design
• Identify data types and sources
• Design data collection forms
• Determine sampling design and size
• Collect the data
• Analyze and interpret the data
• Prepare the research report
1. Define the research problem

• The first step in Marketing is to define the research

problem. A problem well defined is half-solved. If a
problem is poorly defined, a good research design
cannot be developed.
2. Determine research design

• The research design specifies the method and procedure

for conducting a particular study.

Research designs can be classified into one of three

categories
∙ Exploratory research
∙ Descriptive research
∙ Causal research
Exploratory research

• Problems are formulated clearly in exploratory research. It

aims at clarifying concepts, gathering explanations,
gaining insight, eliminating impractical ideas, and forming
hypotheses.
Descriptive Study

• Undertaken when the researcher wants to know the

characteristics of certain groups such as age, sex,
educational level, income, occupation, etc.

Two basic types of descriptive research:

ülongitudinal studies
ücross sectional studies
Types of descriptive research

• Longitudinal studies are time series analyses that make

repeated measurements of the same individuals, thus
allowing one to monitor behavior such as brand-switching.

• Cross-sectional studies sample the population to make

measurements at a specific point in time.
Causal research

• Seeks to find cause and effect relationships between

variables. It accomplishes this goal through laboratory
and field experiments
3. Identify data types and sources

• The next step is to determine the sources of data to be

used. The researcher has to decide whether to go for
primary data or secondary data. Sometimes a
combination of both is used.
4. Design data collection forms

Once it has been decided to obtain primary data, the mode

of collection needs to be decided. Two methods are
available for data collection:
1. Observational methods
2. Survey methods
Observational methods

• As the name itself suggests, the data are collected

through observation. An observer observes and records
the data faithfully and accurately.
Surveys

• It is one of the most common methods of collecting data

for primary marketing research. Surveys can be:
• Personal
• Telephonic
• Mail
5. Determine sampling design and size

• A sampling plan is a very important part of the research

process. The marketing researcher has to decide
whether it will be a sample survey or a census.
Sample survey

• The population from which the sample has to be drawn

has to be well defined. A broad choice is to be made
between probability sampling and non-probability
sampling. The sample design is then chosen depending
on the suitability and the availability of the sample frame.
6. Collect the data

• The next step is to collect the data for which the research
process has been spelled out. The interviewing and the
supervision of field work should be looked into. One of
the most difficult tasks is interviewing for marketing
research. Many a time the respondents may not part with
crucial information unless approached with tact and
intelligence. Supervision of field work is important to
ensure timely and proper completion of the field survey.
7. Analyze and interpret the data

• The next step is to analyze the data that has been

collected from the field survey. The raw data is
transformed into the right format. First, it is edited so that
errors can be corrected or omitted. The data is then
coded; this procedure converts the edited raw data into
numbers or symbols. A codebook is created to document
how the data is coded. Finally, the data is tabulated to
count the number of samples falling into various
categories.
• Conjoint Analysis
The conjoint analysis is a powerful technique for
determining consumer preferences for product attributes.
• Hypothesis Testing: The null hypothesis in an experiment is the
hypothesis that the independent variable has no effect on the
dependent variable. The null hypothesis is expressed as H0.
This hypothesis is assumed to be true unless proven otherwise.
• The alternative to the null hypothesis is the hypothesis that the
independent variable does have an effect on the dependent
variable. This hypothesis is known as the alternative, research,
or experimental hypothesis and is expressed as H1.
• Once analysis is completed, make the marketing research
conclusion. In order to analyze whether research results are
statistically significant or simply by chance, a test of statistical
significance can be run.
8. Prepare the research report

• All the research findings have to be compiled in a report

to be then presented to the organization. The format of
the marketing research report varies with the needs of
the organization. The report often contains the following
sections:
• Authorization letter for the research
• Table of Contents
• List of illustrations
• Executive summary
• Research objectives
• Methodology
• Results
• Limitations
• Conclusions and recommendations
• Appendices containing copies of the questionnaires, etc.
Thank you!