Topic 5:

Market Research and Analysis

Marketing research is the systematic design,
collection, analysis, and reporting of data relevant to
a specific marketing situation facing an organization.

Marketing intelligence involves actively scanning

the general marketing environment; marketing
research involves more focused studies to gain
customer insights relating to specific marketing
decisions.
• Companies use marketing research in
Marketing Research
a wide variety of situations.
• For example, marketing research
enables marketers to:
– gain insights into customer motivations,
purchase behavior, and satisfaction
– assess market potential and market share
– measure the effectiveness of pricing, product,
distribution, and promotion activities
Steps in theResearch
Marketing Marketing Research Process

Interpreting
and reporting
Implementing the findings
the research
plan —
collecting and
Developing the analyzing the
research plan data
for collecting
information
Defining the
problem and
research
objectives
Defining the Problem and Research Objectives

Exploratory research
Descriptive research
Causal research
• Exploratory research – gathers preliminary information that will help
define the problem and suggest hypotheses (focus groups, interviews)
• Descriptive research – describes marketing problems, situations
or markets such as the market potential for a product or the
demographics and attitudes of consumers (who, when, how, why)
• Causal research (price/demand, environment/purchase rate) tests
hypotheses about cause-and-effect relationships
 Developing
Marketing the Research Plan
Research
• Outlines sources of
existing data

• Spells out the specific

research approaches,
contact methods,
sampling plans, and
instruments to gather
data

Decision by Red Bull to add a line of

enhanced waters to its already successful
mix of energy drinks would call for
marketing research
 Developing
Marketing the Research Plan
Research
• Red bull wants reactions to a
proposed new vitamin-
enhanced water drink.
• Expand beyond its energy drink
niche.
• Red bull introduced Red Bull
Cola in 2008
• A new line of enhanced waters
like Glacéau’s VitaminWater—
might help Red Bull leverage its
strong brand position even
further.
Developing the Research Plan (proposal)
Marketing Research
Management problem

Research objectives

Information needed

How the results will help

management decisions

Budget
 Developing the Research Plan
Marketing Research
Secondary data is information that already
exists somewhere, having been collected for
another purpose.
 Secondary data can be obtained for lower costs.
 They can be frustrating and inefficient
 May provide data that an individual company cannot collect
 Secondary data must be relevant, accurate, current and
impartial.
Primary data is information collected for the
specific purpose at hand.
 Just like secondary data primary data must be relevant,
accurate, current and unbiased.
 Gathering Secondary Data

Disadvantages
Advantages
- data may not be

Lower cost Relevancy

Obtained quickly Accuracy

Cannot collect Current/outdated

otherwise
Impartiality
 Planning primary data collection

Ethnographic research: Kraft

Canada sent out its president
(center) and other high-level
executives to observe actual
family life in diverse Canadian
homes. Videos of their
experiences helped marketers
and others across the company
to understand the role of Kraft’s
brands in people’s lives.
 Primary Data Collection
MarketingResearch
Research Approaches

Observational research involves gathering

primary data by observing relevant people,
actions, and situations.

Ethnographic research involves sending

trained observers to watch and interact with
consumers in their “natural environments.”
 Primary Data Collection
Marketing Research
Research Approaches
Survey research involves gathering primary data
by asking people questions about their knowledge,
attitudes, preferences, and buying behavior.

Experimental research involves gathering

primary data by selecting matched groups of
subjects, giving them different treatments,
controlling related factors, and checking for
differences in group responses.
 Primary Data Collection
Marketing
Strengths andResearch
Weakness of Contact Methods
Mail Telephone Personal Online
Flexibility Poor Good Excellent Good
Quantity of data that can be Good Fair Excellent Good
collected
Control of interviewer Excellent Fair Poor Fair
effects
Control of sample Fair Excellent Good Excellent

Speed of data collection Poor Excellent Good Excellent

Response rate Poor Poor Good Good

Cost Good Fair Poor Excellent

 Primary Data Collection
Marketing – Personal Contact Method
Research
Focus Group

– Six to 10 people
– Trained moderator
– Challenges
• Expensive
• Difficult to generalize
from small group
• Consumers not
always open and
honest
 Primary Data Collection
Marketing Research
Online Contact Methods
Online marketing
research Collecting Advantages
primary
data online through • Low cost
Internet surveys,
• Speed
online focus groups,
Web-based • Higher response rates
experiments, or • Good for hard to reach
tracking consumers’ groups
online behavior.
 Primary Data Collection
Sampling Plan
Marketing Research
A sample is a segment of the population
selected for marketing research to
represent the population as a whole.
– Who is to be studied? Sampling unit.
– How many people should be studied? Sample
size
– How should the people be chosen? Sampling
procedure
 Primary Data Collection
Sampling Plan – Types of Samples
Probability Sample
Simple random sample Every member of the population has a known and
equal chance of selection.
Stratified random The population is divided into mutually exclusive
sample groups and random samples are drawn from each
group.
Cluster (area) sample The population is divided into mutually exclusive
groups and the researcher draws a sample.
Nonprobability Sample
Convenience sample The researcher selects the easiest population
members.
Judgment sample The researcher uses their judgment to select
population members.
Quota sample The researcher finds and interviews a prescribed
number of people in each of several categories.
 Primary Data Collection
Marketing Research—Questionnaires
Research Instruments

• Most common
• In person, by phone, or online
• Flexible
• Researchers must be careful with wording
and ordering of questions
– Closed-ended
– Open-ended
• Useful in exploratory research
 Primary Data Collection
Marketing Research
Mechanical Research Instruments

Checkout
scanners

People Neuro-
meters marketing

Mechanical
devices
 Primary Data Collection
Mechanical Research Instruments
Marketing Research
Mechanical instruments: To
find out what ads work and
why, Disney researchers have
developed an array of devices
to track eye movement,
monitor heart rates, and
measure other physical
responses.
Marketing Research
Implementing the Research Plan

• Collecting the information

• Processing the information
• Analyzing the information

Interpreting and Reporting Findings

• Interpret findings
• Draw conclusions
• Report to management
 International marketing research

International marketing research follows the same

steps as domestic research from defining the
problem to reporting the result.
– Difficult to find good secondary data
– but more different problems – homogenous
markets VS diverse markets (race, language,
etc)
– vary in economic development, cultures and
customs and buying patterns
Public policy and ethics in marketing
Marketing Research
Two major public policy and ethics
issues in marketing research are:

• intrusions on consumer privacy

and;
• the misuse of research findings.
 Public policy and ethics
in marketing
Marketing Research
Misuse of research
findings: The Federal
Trade Commission
recently challenged
research-based
advertising and
packaging claims that
Kellogg’s Frosted
Mini-Wheats were
“clinically shown to
improve kids
attentiveness by
nearly 20%.”
END