Marketing Research,

Arab World Edition

Naresh K. Malhotra, Imad B. Baalbaki,
Nada Nasr Bechwati

Chapter 1: Introduction and Early

Phases of Marketing
Research

Lecturer: Insert your name here

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 Chapter Outline

1) Objectives

2) Overview

3) Definition of Marketing Research

4) A Classification of Marketing Research

5) Marketing Research Process

i. Step 1: Problem Definition

ii. Step 2: Development of an Approach to the Problem

iii. Step 3: Research Design Formulation

iv. Step 4: Fieldwork or Data Collection

v. Step 5: Data Preparation and Analysis

vi. Step 6: Report Preparation and Presentation

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 Chapter Outline (cont’d)

6) The Role of Marketing Research in Marketing Decision

Making

7) Marketing Research and Competitive Intelligence

8) The Decision to Conduct Research

9) The Marketing Research Industry

10) Selecting a Research Supplier
11) Careers in Marketing Research
12) The Role of Marketing Research in MIS and DSS
13) The Department Store Project

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 Chapter Outline (cont’d)

14) International Marketing Research

15) Ethics in Marketing Research
16) SPSS Windows
17) Summary

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 Redefining Marketing Research

The American Marketing Association (AMA)

redefined Marketing Research as:

The function that links the consumer, the

customer, and public to the marketer
through INFORMATION

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 Redefining Marketing Research

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

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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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 Market Research

Specifies the information necessary to address these

issues

Manages and implements the data collection process

Analyzes the results

Communicates the findings and their implications

Helps managers use this information to make

decisions

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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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Problem-Solving Research

Table 1.1
SEGMENTATION RESEARCH

 Determine the basis of

segmentation
 Establish market potential and
PRODUCT RESEARCH

responsiveness for various  Test concept

segments
 Select target markets
 Create lifestyle profiles:
demography, media, and
product image characteristics
 Determine optimal product design
 Package tests
 Product modification
 Brand positioning and repositioning
 Test marketing
 Control score tests

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 Problem-Solving Research

Table 1.1 cont’d

PROMOTIONAL RESEARCH

 Optimal promotional budget

0.00% APR  Sales promotion relationship
 Optimal promotional mix
 Copy decisions
 Media decisions
 Creative advertising testing
PRICING RESEARCH
 Claim substantiation
 Pricing policies
 Evaluation of advertising
 Importance of price in brand selection effectiveness
 Product line pricing
 Price elasticity of demand
 Initiating and responding to price changes $ALE
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 Problem-Solving Research

Table 1.1 cont’d

DISTRIBUTION RESEARCH

Determine…
 Type 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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 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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 Marketing Research Suppliers & Services

Internal suppliers
External suppliers
• Full-service suppliers
– Syndicated services
– Standardized services
– Customized services
– Internet services

• Limited-service suppliers
– Field services
– Focus groups and qualitative services
– Technical and analytical services
– Other services

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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 compared on the basis of quality as

well as price.

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Box 1.1
Selected Marketing Research Job Descriptions
Vice President of Marketing Research Director
Research
• Also part of senior
• Part of company’s top management management

team • Heads the development

and execution of all
• Directs company’s entire market research projects
research operation
Assistant Director of
• Sets the goals & objectives of the
Research
marketing research department
• Administrative assistant
(Senior) Project Manager to director
• Responsible for design, implementation, & research projects • Supervises research staff
members
Statistician/Data Processing
• Serves as expert on theory and application on statistical
techniques
• Oversees experimental design, data processing, and analysis

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Box 1.1 (cont’d)
Selected Marketing Research Job Descriptions

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

Analyst Fieldwork Director

• Handles details in execution of project
• Designs and pretests questionnaires
• Conducts preliminary analysis of data
•Handles selection, training, supervision,
and evaluation of interviewers and field
workers

Junior Analyst
• Secondary data analysis
• Edits and codes questionnaires
• Conducts preliminary analysis of data
Operational Supervisor
• Responsible for supervising operations
such as fieldwork, data editing & coding
• Involved in programming & data analysis

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 Preparation for a Career in Marketing 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 Vs. Decision
Support Systems

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 The Department Store Project

The following information was solicited:

1.Familiarity with the 10 department stores.
2.Frequency with which household members shopped at each
of the ten stores.
3.Relative importance attached to each of the eight factors of
the choice criteria.
4.Evaluation of the ten stores on each of the eight factors of
the choice criteria.
5.Preference ratings for each store.
6.Rankings of the ten stores (from most preferred to least
preferred).
7.Degree of agreement with 21 lifestyle statements.
8.Standard demographic characteristics (age, education,
etc.).
9.Name, address, and telephone number.

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 International Marketing Research

Macro challenges
Role of government, and state regulations
o E.g. Lack of census data in the Arab world
State of technology and infrastructure
o Impact on research methods and data reliability

Micro challenges
Readiness of businesses and consumers to participate in marketing
research studies

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 Table 1.4
Overview of Ethical Issues in Marketing Research
I. Problem Definition
- Using surveys as a guise for selling or fundraising
- Personal agendas of the researcher or client
- Conducting unnecessary research

II. Developing an Approach

- Using findings and models developed for specific
clients or projects for other projects
- Soliciting proposals to gain research expertise
without pay

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 Table 1.4 (cont’d)
Overview of Ethical Issues in Marketing Research
III. Research Design
- Formulating a research design more suited to the researcher's rather
than the client's needs
- Using secondary data that are not applicable or have been gathered
through questionable means
- Disguising the purpose of the research
- Soliciting unfair concessions from the researcher
- Not maintaining anonymity of respondents
- Disrespecting privacy of respondents
- Misleading respondents
- Disguising observation of respondents
- Embarrassing or putting stress on respondents
- Using measurement scales of questionable reliability & validity
- Designing overly long/sensitive questionnaires
- Using inappropriate sampling procedures and sample size

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 Table 1.4 (cont’d)
Overview of Ethical Issues in Marketing Research
IV. Fieldwork
- Increasing discomfort level of respondents
-Following unacceptable field work procedures

V. Data Preparation and Analysis

-Identifying and discarding unsatisfactory respondents
- Using statistical techniques when the underlying
assumptions are violated
-Interpreting the results and making incorrect conclusions and
recommendations

IV. Report Preparation and Presentation

- Incomplete reporting
- Biased reporting
- Inaccurate reporting

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Figure 1.6 A Concept Map for the Marketing Research Process

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