WhyInformation

IsNeeded

MarketingEnvironment

StrategicPlanning

Customer Needs

Competition

Many definitions of Marketing Research: › “Marketing research is the systematic design,

collection, analysis and reporting of data and findings relevant to a specific marketing situation facing the company.” [Philip Kotler

› “the systematic gathering, recording and analyzing of all data about problems relating to the marketing of goods and services.” [The American Marketing Association]

Basic Purpose of Marketing Research› Marketing research reduces uncertainty or error

in decision-making. The information collected by conducting marketing research is used for problem solving and decision making in various areas of marketing.

Can help the marketing manager to:

(1) Identify and define marketing problems

and opportunities accurately;

(2) Understand markets and customers and

offer reliable prediction about them;

(3) Develop marketing strategies and

actions to provide a competitive edge;

and refine and evaluate them;

(4) Facilitate efficient expenditure of funds;

(5) Monitor marketing performance; and

(6)Improve the understanding of marketing

as a process.

Is important because of

Rapid changing

marketing

environment;

Need for up-to-

date information

for strategically

important areas;

Importance of

research as an

integral part of

better operation.

Consists of people, equipment, and procedures to gather, sort, analyze, evaluate and distribute needed, timely, and accurate information to marketing decision makers.

Function: Assess, Develop and Assess, Develop and Distribute Information.Distribute Information.

Marketing Information System

Developing Information

InformationAnalysis

InternalData

MarketingResearch

MarketingIntelligence

DistributingInformation

Assessing InformationNeeds

Marketing Managers

Marketing EnvironmentMarketing Environment

Mar

keti

ng

Dec

isio

ns

and

C

om

mu

nic

atio

ns

Obtains Needed Information for Marketing Managers From the Following Sources

Obtains Needed Information for Marketing Managers From the Following Sources

Internal DataCollection of Information from Data Sources Within the Company

Internal DataCollection of Information from Data Sources Within the Company

Marketing IntelligenceCollection and Analysis of Publicly Available Information about

Competitors and the Marketing Environment

Marketing IntelligenceCollection and Analysis of Publicly Available Information about

Competitors and the Marketing Environment

From: Accounting, Sales Force, Marketing, Manufacturing, Sales From: Accounting, Sales Force, Marketing, Manufacturing, Sales

From: Employees, Suppliers, Customers, Competitors, Marketing Research Companies

From: Employees, Suppliers, Customers, Competitors, Marketing Research Companies

Marketing ResearchDesign, Collection, Analysis, and Reporting of Data about a Situation

Marketing ResearchDesign, Collection, Analysis, and Reporting of Data about a Situation

ExploratoryResearch

DescriptiveResearch

CausalResearch

•Test hypotheses about cause- and-effect relationships.

.

•Test hypotheses about cause- and-effect relationships.

.

•Gathers preliminary information that will help define the problem

and suggest hypotheses.

•Gathers preliminary information that will help define the problem

and suggest hypotheses.

•Describes things as consumers’ attitudes and demographics

or market potential for a product.

•Describes things as consumers’ attitudes and demographics

or market potential for a product.

Secondary Primary

Determine the Specific Information Needed Determine the Specific Information Needed

Information collected for the specific purpose at hand.

Information collected for the specific purpose at hand.

Both Must Be:RelevantAccurateCurrentImpartial

Both Must Be:RelevantAccurateCurrentImpartial

Information that has been previously collected.

Information that has been previously collected.

Experimental ResearchExperimental Research

Observational ResearchObservational Research

Gathering data by observing people,actions and situations

(Exploratory)

Gathering data by observing people,actions and situations

(Exploratory)

Survey ResearchSurvey Research

Asking individuals aboutattitudes, preferences or

buying behaviors (Descriptive)

Asking individuals aboutattitudes, preferences or

buying behaviors (Descriptive)

Using groups of people to determine cause-and-effect

relationships(Causal)

Using groups of people to determine cause-and-effect

relationships(Causal)

Qualitative research involves collecting, analyzing, and interpreting data by observing what people say or do. › Uses a smaller number of individuals and ‘observes’ them for

a time span of between 1 and 2 hours. -----“soft approach”

Quantitative research is the traditional mainstream of marketing research. › It is also called “survey research”. Involves the use of

questions and large number of respondents within a brief span of time, say 15 to 45 minutes.

› Its purpose is very specific-- e.g. a nationwide survey on the Road Pricing System for cars. The ‘hard approach’ to marketing research.

1. Define the Problem2. Establish Research Objective3. Determine Research Design

4. Identify Information Needs and Sources5. Determine Methods of Data Collection6. Design Instrument for Data Collection

7. Determine Sample Plan and Sample Size8. Collect Data9. Analyze Data

10. Prepare and Present Final Report

Once the symptoms of a problem are detected..› Conduct some initial fact finding to determine the nature of the

true problem. › Talk to others about the problem and conducting a preliminary

literature search on the topic. In the initial stage, a problem may be recognized in a very

broad and general form only. This may restrict the research program from being comprehensively designed.

Both the researcher and the marketing manager (or the research client ) need to work together to formulate the problem into a precise and definite statement.

This fact-finding exercise helps the researcher to refine his educated guess to a more accurate problem statement.

“If you do not know what you are looking for, you won’t find it”

Research objectives are related to and determined by the problem definition. In establishing research objectives, the researcher must answer the following questions:i) What specific information should the project provide? ii) If more than one type of information will be

developed from the study, which is the most important? and

finally, iii) What are the priorities?

When specifying research objectives, development of hypotheses, might be very helpful.

When achieved, objectives provide the necessary information to solve the problem.

3. Research Design step involves the development of a research plan for carrying out the study. › There are a number of alternative research

designs. The choice will largely depend on the research purpose.

EXPLO RATO RYF ocu s G rou p ;O b serva tion ;

O th ers .

Q UALITATIVE RESEARCH

DESCRIPTIVES u rvey research

CAUSALL ab ora to ry E xp erim en t

F ie ld E xp erim en t

Q UANTITATIVE RESEARCH

M ARKET ING RESEARCH

4. After defining the problem the researcher must determine what kind of information will best meet the research objectives. › Secondary

information› Primary

information

5. Marketing research information may be collected in many ways: › via mail, telephone, fax,

Internet, or personal interview.

› using consumer panels, consisting of individuals who have agreed to provide purchasing and media viewing behavior.

A primary responsibilities of a marketing researcher is to design the data collection instrument or questionnaire in a manner so that it is easily understood by the respondent and administered to them.

The researcher must determine the criteria that would enable a respondent to take part in a study. › The sampling design must result in the proper

sample of respondents being selected. Different sampling designs are available to researchers.

The researcher must properly manage and oversee the data collection process. › If interview method is used, the researcher must

train interviewers and develop procedures for controlling the quality of the interviewing.

› [This is not necessary if survey methodology is used, where the research instruments are completed by the respondents. ]

The ‘raw’ research data needs to be edited, tabulated and analyzed to find the results and to interpret them. › the method used may be manual or computer based. › The analysis plan follows from the research objective of

the study. › Association and relationships of variables are identified

and discussed in the light of the specific marketing problem.

The researcher has to submit a written report and often make an oral presentation to management or the client. › In conducting all the marketing research activities; the

marketing researchers must adhere to ethical standards.

Marketing Constructs Operational definitions

Attitudes towards brands Number of people with positive, negative or neutral feeling Brand Awareness Percent of respondents that have heard of the brand Brand familiarity Consumers that have tried or seen the brand Brand loyalty How many times the respondent bought (used) the product Comprehension of

product benefits Respondents opinion as to what the product does to themDemographics Respondents’ age, sex, marital status etc.Past purchase or use Percent of respondents that bought(used) the

product/service Psychographics How consumers think and behave

Purchase intention Number (%) of respondents planning to buy a product Reach The number (%) of households exposed to an

advertisement schedule during a given period of time.

Satisfaction How the respondents evaluate the performance of the product or the service