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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 and
wants of the customers
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Marketing information regarding
Customers
Competitors
Other forces in the market
Is very crucial
Task of Marketing Research:
Assess information needs and provide
management with relevant, accurate,
reliable, valid, current and actionable
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Competitive Intelligence
The process of enhancing marketplace
competitiveness through a greater
understanding of a firms competitors
and the competitive environment.
Its ethical
Informed decisions about everything
Crucial for emerging knowledge
economy
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Redefining Marketing Research
The American Marketing Association
(AMA) redefined Marketing Research
as:

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, and
evaluate 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 systematic and 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 each
marketing step.
Methods at each step
Well documentation

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Objective
M.Research attempts to provide
accurate info: that reflects true
state of affairs
M.Research should be free from
political 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 for
two 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 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.
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A Classification of Marketing Research
Marketing Research
Problem
Identification Research
Problem Solving
Research
Market Potential Research
Market Share Research
Market Characteristics Research
Sales Analysis Research
Forecasting Research
Business 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
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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Step 2: Development of an Approach to the
Problem
Formulate an objective or theoretical
frame work
Analytical models
Research questions
Hypothesis

Discussion with management and industry experts
And 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 that
include
Definition of information needed
Secondary data analysis
Qualitative research
Methods to qualitative research(Survey, observation
and 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 personal
interviewing
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
Transcription
Verification
Analysis to drive necessary
information to the problem
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Step 6: Report Preparation and
Presentation
Final findings should be
documented in written report
Report includes:
Used approaches
Research design
Methods of data collection
Data collection and analysis
procedures
Presentation of results and findings
(comprehensible)
Oral presentation is essential part
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The Marketing research industry



Consist of External suppliers who
provide marketing research
services
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Marketing Research Suppliers & Services
LIMITED SERVICE
Branded
Products
and Services
Data
Analysis
Services
Analytical
Services
Coding and
Data Entry
Services
Field
Services
FULL SERVICE
Syndicate
Services
Standardized
Services
Customize
d
Services
Internet
Services
RESEARCH
SUPPLIERS
EXTERNAL
INTERNAL
Fig 1.3
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Full Service
Syndicated Services:
Sell of common pools of data on subscription basis.
e.g. Nielsen Media Research provides information on
audience demographic characteristics of those who
watch specific programs.
Standardized Service:
Use of standardized procedures to provide marketing
research to various clients.
e.g. measure of Advertising effectiveness
NOP world is well know for measuring print ad
effectiveness
Customized Services:
Cos that tailor research procedures to best meet the
needs of each client.
Internet services:
Those who have in conducting research on internet
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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 to
convert collected data in to usable database.
Analytical services:
Those who provide guidance in development of research
design.
e.g. Pretesting of questionnaires, determining the best
means 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 branded
services/products to address specific type of research
problems. e.g. TeleNation

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Selected Marketing Research
Career Descriptions
Vice-President of Marketing Research: The senior position in
marketing 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 has
the 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 Marketing
Research
Part of companys top
management team
Directs companys entire market
research operation
Sets the goals & objectives of the
marketing research department
Research Director
Also part of senior
management
Heads the development
and execution of all
research projects
Assistant Director of Research
Administrative assistant to director
Supervises research staff members
Senior Project Manager
Responsible 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 of
data
Junior Analyst
Secondary data analysis
Edits and codes questionnaires
Conducts preliminary analysis of data
Fieldwork Director
Handles 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 ethical
standards?
Are they flexible?
Are their research projects of high quality?
What kind and how much experience does the
supplier have? Has the firm had experience
with projects similar to this one?
Do the supplier's personnel have both technical
and non-technical expertise?
Can they communicate well with the client?
Competitive bids should be obtained and
compared on the basis of quality as well as
price.
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Preparation for a Career in Mktg. Research
Take all the marketing courses you can.
Take courses in statistics and quantitative
methods.
Acquire Internet and computer skills.
Knowledge of programming languages is an
added asset.

Take courses in psychology and consumer
behavior.

Acquire effective written and verbal
communication skills.
Think creatively. Creativity and common sense
command a premium in marketing research.
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Management Information Systems & Decision Support
Systems
MIS: set of procedures and practices employed
in analyzing and assessing Marketing
information gathered continuously from
sources inside and outside of a firm.
Pertinent information to the decision makers on
ongoing basis
Provide info: continuously rather than ad-hoc
research 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 for
worldwide 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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