Chapter 1

Introduction and Early Phases

of Market Research

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 Boeing: Taking Flight
75% of world fleet – 13,000 commercial jetliners
The study was a survey based on 913 interviews conducted in the UK,
Tokyo, and Hong Kong with international travelers (aged 18 and
over), who had taken at least one recent eight-hour or longer flight.
Interviews between November 2003 to February 2004.
First, screened and qualified by telephone or via in-person interviews.
Then completed an online survey at home or work or at a central
interviewing location. In each region, Harris polled equal numbers of
Premium Class Business, Economy Business, and Economy Leisure
travelers.
Findings were analyzed and BCA developed a new version of BOEING
737 family – the 737-600, 700, 800, 900 models. Orders more than
5200 airplane

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 RESEARCH

R Recognition of information needs

E Effective decision making
S Systematic and objective
E Exude or disseminate information
A Analysis of information
R Recommendation for action
C Collection of information
H Helpful to managers

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 Marketing Research

The American Marketing Association (AMA)

defined Marketing Research as:

The function that links the consumer, the

customer, and public to the marketer through
INFORMATION

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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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 A Classification of Marketing Research

Problem-Identification Research
 Research undertaken 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 Problem-Solving
Identification Research Research

Market Potential Research Segmentation Research

Market Share Research
Market Characteristics Research Product Research
Sales Analysis Research Pricing Research
Forecasting Research Promotion Research
Business Trends Research
Distribution Research
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 Problem-Solving Research

SEGMENTATION RESEARCH
 Determine the basis of segmentation
 Establish market potential and
PRODUCT RESEARCH
responsiveness for various
segments  Test concept

 Select target markets  Determine optimal product design

 Create lifestyle profiles:  Package tests

demography, media, and
product image characteristics
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 Product modification
 Brand positioning and repositioning
 Test marketing
 Control store tests
1-8
 Problem-Solving Research
PROMOTIONAL RESEARCH
 Optimal promotional budget
0.00% APR
 Sales promotion relationship
 Optimal promotional mix
 Copy decisions
 Media decisions
 Creative advertising testing

PRICING RESEARCH  Evaluation of advertising effectiveness

 Pricing policies
 Importance of price in brand selection
 Product line pricing
 Price elasticity of demand $ALE
 Initiating and responding to price changes
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 Problem-Solving Research
DISTRIBUTION RESEARCH

Determine…
 Types of distribution
 Attitudes of channel members
 Intensity of wholesale & retail coverage
 Channel margins
 Location of retail and wholesale outlets

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 Marketing Research Process

Step 1: Defining the Problem

Step 2: Developing an Approach to the Problem

Step 3: Formulating a Research Design

Step 4: Doing Field Work or Collecting Data

Step 5: Preparing and Analyzing Data

Step 6: Preparing and Presenting the Report

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 The Role of Marketing Research
Customer Groups
• Consumers
• Employees
• Shareholders
• Suppliers
Uncontrollable
Controllable Environmental
Marketing Factors
Variables
Marketing • Economy
• Product
Research • Technology
• Pricing
• Laws &
• Promotion Regulations
• Distribution • Social & Cultural
Assessing Marketing Factors
Providing
Information Information Decision • Political Factors
Needs Making

Marketing Managers
• Market Segmentation
• Target Market Selection
• Marketing Programs
• Performance & Control

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