INTRODUCTION TO

MARKETING
RESEARCH
Marketing Research Defined

The systematic and objective

process of generating information
for aid in making marketing
decisions
The Marketing Research Process
 Define the Problem
 Develop an Approach to the Problem
 Type of Study? Exploratory, Descriptive, Causal?
 Mgmt & Research Questions, Hypotheses
 Formulate a Research Design
 Methodology
 Questionnaire Design
 Fieldwork
 Prepare & Analyze the Data
 Prepare & Present the Report
Marketing Research Types

Basic research

Applied research
Basic Research
 Attempts to expand the limits of
knowledge
 Not directly involved in the

solution to a pragmatic problem

Basic Research Example
Do consumers experience
cognitive dissonance in low-
involvement situations?
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
Using Marketing Research
 We can use Marketing Research to:
 Identify & Evaluate Opportunities
 Analyze Market Segments
 Select Target Markets
 Plan & Implement Marketing Mixes
 Analyze Marketing Performance
Performance Monitoring Research
Plan and Implement
a Marketing Mix
 Price, Distribution, Product and Promotion
Analyze Marketing Performance

 This year’s market share is compared

to last year’s.
 Did brand image change after new

advertising?
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
Availability of data

Nature of the decision

Benefits versus costs

Determining When to Conduct Marketing
Research
Time Constraints Availability of Data Nature of the Decision Benefits vs. Costs
Is the Does the
Information
Is sufficient Yes Yes decision of Yes information Yes Conduct
already on
time
hand
strategic value Marketing
available? or tactical exceed the Research
inadequate?
importance? research cost?

No No No No

Do Not Conduct Marketing Research

Potential Value of a Marketing Research Effort
Should Exceed Its Estimated Costs
Research expenditures
Decreased uncertainty Delay of marketing
Increased likelihood of
decision and possible
correct decision disclosure of information
Improved marketing
to rivals
performance and Possible erroneous
resulting higher profits research results

Costs
Value
ALWAYS Remember
 Marketing Research is a tool.
 It assists marketing managers in

their decision making.

 IT IS NOT A
REPLACEMENT FOR
MANAGERIAL
JUDGEMENT!!
 Learning by Doing:
17
Let’s Apply Marketing to
a Restaurant
 Target market segment?
 Marketing strategy
 Location?
 Menu?
 Prices?
 Type?
 Advertising?
Ch 1
 Restaurant Marketing Decisions
18

 What if you owned a restaurant located in

Merkato, Bahir Dar near Bahir Dar University?
 What would be your marketing strategy?
 How certain are you that you made the right
decisions?

Ch 1
 Restaurant Marketing Decisions
19

 What if the restaurant was located near a Factory?

 What would be your decisions?
 How certain are you that you made the right
decisions now?

Ch 1
 Key Point
20

 To practice marketing; to implement the marketing

concepts; to implement marketing strategy,
managers must make decisions.
 Many decisions require additional information and
marketing research is needed in order to supply that
information.

Ch 1
 We need Marketing Research
21 to:
 Make the “right” decisions to
 Implement marketing
 Practice the marketing concept and
 Make the right decisions to select the right
marketing strategy

Ch 1
 What is Marketing Research?
22
(Burns and Bush Definition)
 Marketing research is the process of designing,
gathering, analyzing, and reporting information that
may be used to solve a specific marketing problem.

Ch 1
 What is Marketing Research?
23
AMA definition
 Marketing research: the function that links the
consumer, customer, and public to the marketer
through information – information used to identify
and define marketing opportunities and problems;
generate, refine, and evaluate marketing actions;
monitor marketing performance; and improve the
understanding of marketing as a process.

Ch 1
 Market Research vs. Marketing
24
Research
 Market research: the “systematic gathering,
recording, and analyzing of data with respect to a
particular market, where ‘market’ refers to a
specific group in a specific geographic area.”

Ch 1
 What is the purpose of Marketing
25
Research?
 To link the consumer to the marketer by providing
information that can be used in making marketing
decisions

Ch 1
 What are the uses of
26
Marketing Research?
 Identify marketing opportunities and problems
 Generate, refine, and evaluate potential marketing
actions
 Monitor marketing performance
 Improve marketing as a process

Ch 1
 Classifying Marketing Research
27
Studies
 Identifying marketing opportunities and problems
 Market-demand determination
 Market segments identification
 Marketing audits SWOT analysis

Ch 1
 Classifying Marketing Research
28
Studies
 Generating, refining, and evaluating potential
marketing actions
 Proposed marketing-mix evaluation testing
 New-product prototype testing
 Advertising pretesting…see Insight Express
AdInsight ad pretesting…

Ch 1
 Classifying Marketing Research
29
Studies
 Monitoring marketing performance
 Image analysis…bank image analysis
 Tracking studies...sales, market shares of all
brands in our category
 Customer satisfaction studies

Ch 1
 Classifying Marketing Research
30
Studies
 Improving marketing as a process
 The purpose of these studies is to expand
knowledge (basic research) of marketing
as a process rather than to solve a specific
problem facing a company…How does
background music affect perceptions of products…
How preshopping information affects product
returns…Understanding cultural differences in
consumer

Ch 1
 Hot Topics in Marketing Research
31

 Online Marketing Research

 Growing Consumer/Respondent Resentment
 Globalization

Ch 1