CHAPTER 4

Conducting Marketing Research and

forecasting demand.
 Marketing Research

Marketing Research is the systematic design, collection, analysis,

and reporting of data relevant to a specific marketing
situation facing an organisation.
Define the problem and Research
objective

Develop the research plan

Collect the information

Analyze the information

Present the findings

Make the decision

Step 1: define the problem, the decision alternatives, and the
research objectives.

• Problem should not be defined too broadly or too

narrowly.
• Should set up research objectives
3 types of objectives
 Exploratory research
 Descriptive research
 Causal research
 Step 2: develop the research plan
Develop plan for gathering of information
Concerns:
• Data sources
• Research approaches
• Research instruments
• Sampling plan
• Contact methods
Data sources
• Secondary data
• Primary data
Research approaches
Collect primary data in 5 ways
• Observation
• Focus groups
• Surveys
• Behavioral data
• experiments
Observational research
• Gather fresh data by observing the relevant actors
and settings.
• Unobtrusively observing as they shop or they
consume product.
Ethnographic Research
A form of observational research that involves sending
trained observers to watch and interact with
consumers in their ‘natural habitat’
Uses concepts and tools from anthropology and other
social science disciplines to provide understanding of
how people live and work.
Following baby-boomer, women rounded financial
transactions because it was more convenient
Focus group Research
A gathering of 6 to 10 people selected by researchers
based on certain demographic, psychographic
considerations
Brought together to discuss various topics.
Survey research
• Gathering primary data by asking people questions
about their knowledge, attitudes, preferences and
buying behavior.
• Widely used for descriptive information
Experimental research
Gathering primary data by selecting matched groups of
subjects , giving them different treatments,
controlling related factors and checking for
differences in group responses.
Test effects on sales of two different prices in 2 cities
Research Instruments
1. Questionnaires
2. Mechanical devices
Questionnaires
• Most common instrument
• Closed-end questions
• Open-end questions
Closed-end questions
Dichotomous questions
Multiple choice
Likert scale: agreement
Semantic scale: bipolar
• Importance scale
• Rating scale
• Intention- to- buy scale
Open end questions
Completely unstructured
Word association
Sentence completion
Story completion
Picture
Thematic apperception test (TAT)
Instruments
Mechanical device to monitor consumer behavior
People meters to television sets
Check out scanners to record shopper’s purchases
Advertisers use eye cameras to study viewers eye
movements
 Sampling plan

Sample: a subgroup of elements of the population

selected for participation in the study.
Sampling unit: who should be surveyed?
Sample size: how many people should be surveyed?
Sampling procedure: how should we choose the
respondents?
 Sampling techniques

Non probability probability

convenience judgement quota

Simple
random Stratified Cluster
random
Contact methods
 Mail questionnaire
 Telephone interview
 Personal interview
 Online interview
 Step 3: collect the information

Constraints
Unavailability
Bias
 Step 4: Analyze the information

Extract finding by tabulating the data and developing

frequency distributions.
 Step 5: Present the findings

Translate data and information into insights and

recommendations
 Step 6: Make the decision.

Weigh the evidence

May go according to research findings
May proceed for further research