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Chapter One

Introduction to Marketing Research

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Chapter Outline

1) Overview

2) Definition of Marketing Research

3) A Classification of Marketing Research

4) Marketing Research Process

5) The Nature of Marketing Research

6) Marketing Research Suppliers and Services

7) Selecting a Research Supplier

8) Careers in Marketing Research

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Chapter Outline

9) The Role of Marketing Research in MIS and DSS

10) The Department Store Project

11) Marketing Research Associations Online

12) Summary

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Marketing Research

‘The systematic gathering, recording and analysing of

data about problems relating to the marketing of goods and

services’

American Marketing Association

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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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Therefore…..

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

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Science or Art? Objectivity of Investigator

Unbiased Procedural integrity Accurate reporting

Accuracy of Measurement Valid and Reliable Meaningful and useful Appropriate design (sample, execution)

Open-minded to Findings Willing to refute expectations Acknowledge limitations

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Science or Art? Objectivity of Investigator

Unbiased Procedural integrity Accurate reporting

Accuracy of Measurement Valid and Reliable Meaningful and useful Appropriate design (sample, execution)

Open-minded to Findings Willing to refute expectations Acknowledge limitations

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Difficulties of Achieving “Scientific Studies” in Marketing Investigator is deeply involved

in the use of the results. Imprecise measuring devices Very complex and interrelated

subject matter Difficulty using experiments Influence of the measurement

process on results Time pressure for results

1-15Classification 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.

1-16A Classification of Marketing Research

Marketing Research

Problem Identification Research

Problem Solving Research

Market Potential ResearchMarket Share ResearchMarket Characteristics ResearchSales Analysis ResearchForecasting ResearchBusiness Trends Research

Segmentation Research

Product Research

Promotion Research

Distribution Research

Fig 1.1

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Eureka Forbes….

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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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Samsung 3 Door Refrigerator

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1-21Fashionable Swatch Wrist Watches

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Problem Solving ResearchTable 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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The New Titan Raga Collection

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Problem Solving ResearchTable 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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The Role of Marketing Research

ControllableMarketing

•Product

•Pricing

•Promotion

•Distribution

Variables

Marketing Research

MarketingDecisionMaking

ProvidingInformation

AssessingInformationNeeds

Marketing Managers

• Market Segmentation

• Performance & Control

• Target Market Selection• Marketing Programs

UncontrollableEnvironmentalFactors

•Economy

•Technology

•Laws & Regulations

•Social & Cultural Factors

•Political Factors

Customer Groups

• Employees• Shareholders

Suppliers•

• Consumers

Fig 1.2

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The role of MR in Marketing decision making: MR is being surrounded by Marketing

managers, Customer groups, Controllable marketing variables and Uncontrollable environmental factors.

Assessing information needs, providing information and marketing decision making will supplement the MR.

Marketing managers have to take care of market segmentation, target market selection, marketing programes and performance and control.

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MR & Competitive Intelligence:

Competitive intelligence may be defined as the process of enhancing market place competitiveness through a greater understanding of a firm’s competitors and the competitive environment.

It involves the legal collection and analysis of information regarding the capabilities, vulnerabilities and intentions of business competitors, conducted by using information databases and other open sources and through ethical marketing research inquiry.

1-31Marketing Research Suppliers & Services

LIMITED SERVICE

BrandedProducts

and Services

DataAnalysisServices

AnalyticalServices

Coding and Data Entry Services

Field Services

FULL SERVICE

SyndicateServices

StandardizedServices

Customized

Services

InternetServices

RESEARCHSUPPLIERS EXTERNALINTERNAL

Fig 1.3

1-32Selected Marketing ResearchCareer 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 company’s top

management team

• Directs company’s 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

1-35Marketing Research Suppliers & Services

Internal suppliers External suppliers

Full-service suppliers Syndicated services Standardized services Customized services Internet services

Limited-service suppliers Field services Coding and data entry services Analytical services Data analysis services Branded marketing research products

1-36Criteria 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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Careers in Marketing Research

1.Career opportunities are available with marketing research firms (e.g., AC Nielsen, Burke, Inc., M/A/R/C)

2.Careers in business and non-business firms and agencies with in-house marketing research departments (e.g., Procter & Gamble, Coca-Cola, AT & T, the Federal Trade Commission, United States Census Bureau)

3.Advertising agencies (e.g., BBDO International, Ogilvy & Mather, J. Walter Thompson, Young & Rubicam)

4.Positions: vice president of marketing research, research director, assistant director of research, project manager, field work director, statistician/data processing specialist, senior analyst, analyst, junior analyst, and operational supervisor.

1-38Preparation for a Career in Mktg. Research

1.Take all the marketing courses you can.

2.Take courses in statistics and quantitative methods.

3.Acquire Internet and computer skills. Knowledge of programming languages is an added asset.

4.Take courses in psychology and consumer behavior.

5.Acquire effective written and verbal communication skills.

6.Think creatively. Creativity and common sense command a premium in marketing research.

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Management Information Systems vs.Decision Support Systems

Unstructured Problems

Use of Models

User Friendly Interaction

Adaptability

Can Improve Decision

Making by Using “What if”

Analysis

DSSMIS

Structured Problems

Use of Reports

Rigid Structure

Information Displaying

Restricted

Can Improve Decision Making

by Clarifying Data

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The Dept. Store Project

The following information was solicited:1. Familiarity with the ten 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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M.R. Agencies: In India: Lintas India Ltd. & Pathfinders India IMRB – Indian Marketing Research Bureau HTA – Hindustan Thompson Associates Ltd. MARG – Marketing & Advertising Research Group ORG – Operations Research Group NCAER – National Council of Applied Economic

Research MODE – Marketing Operations Design and Enquiry

Service MRAS – Marketing Research and Advisory Services MBS – Marketing and Business Associates CSO & CSB – Central Statistical Organization &

Bureau

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IMRB

It is the largest MR agency in India, promoted by HTA (Hindusthan Thompson Associates), established in 1971.

The wide ranging research services provided by IMRB can be classified into two broad categories:1. Customer Specific Research services :=>Consumer Research=>Industrial Market Research=>Qualitative Research=>Media Research ….contd

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IMRB

2.Syndicated Research Services (Especially in the field of Market Measurement and Media planning): =>The National Readership Survey (NRS)=>Businessmen’s Readership Survey (BRS)=>Television Rating Points (TRP) System=>Market Pulse – household purchase panel=>Rural Market Probe

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Other Studies ORG :

=>Retail Stores Audit on Consumer Products as well as Pharmaceutical Products=>Prescription Audit =>Market Pulse

Government Publications : =>Statistical Abstract of India=>Annual Survey of Industries=>Reserve Bank Bulletins=>Census Report

Non – Government Publications

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Domestic

AAPOR: American Association for Public Opinion Research (www.aapor.org)

AMA: American Marketing Association (www.ama.org)

ARF: The Advertising Research Foundation (www.amic.com/arf)

CASRO: The Council of American Survey Research Organizations (www.casro.org)

MRA: Marketing Research Association (www.mra-net.org)

QRCA: Qualitative Research Consultants Association (www.qrca.org)

RIC: Research Industry Coalition (www.research industry.org)

Marketing Research Associations Online

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International

ESOMAR: European Society for Opinion and Marketing Research (www.esomar.nl)

MRS: The Market Research Society (UK) (www.marketresearch.org.uk)

MRSA: The Market Research Society of Australia (www.mrsa.com.au)

PMRS: The Professional Marketing Research Society (Canada) (www.pmrs-aprm.com)

Marketing Research Associations Online

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HORIZONS/OPPORTUNITIESHORIZONS/OPPORTUNITIESHORIZONS/OPPORTUNITIESHORIZONS/OPPORTUNITIES

Re-define the market for MRRe-define the market for MR

Address industry issues

pro-actively

Address industry issues

pro-actively

Develop new business models

Develop new business models

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I Issues & Trends in M.R.: Importance of Marketing strategy Product variety & customization Emphasis on quality Advanced technology In creased complexity of business environment Intense competition. Customized research---- A type of research conducted by the

MR Agency for its client. The whole research project is designed to collect the information as required by a particular client.

In-house research----Research conducted by the staff within the firm.

Outside- research services( hiring) --- Include MR Agencies, Ad Agencies (copy research) & Consultants.

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Some recent trends:

More than 72% of the firms are investing on Innovation.

Customer delight at low cost – through e- marketing.

Right Ergonomics pays rich dividends - ROI, studies have shown that a return of up to $ 17.80 for every $1 invested.

The new practice of Global Product Development - Current approach includes, co- location of cross- functional teams, to foster close collaboration among engineering, marketing, manufacturing and supply- chain functions.

Sales by Multi- product Retailers…

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