Chapter One
Chapter One
Introduction to Marketing Research
Introduction to Marketing Research
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What Would You Do?
Figure 1.1 Introduction to Marketing Research: An Overview
Definition of Marketing Research
Fig.
1.2
A Classification of Marketing Research
Marketing Research Process
Fig
1.3
Application to Contemporary Issues
Technology
Ethics
International
Be a DM! Be an MR! Experiential LearningWhat Would You Do?
Marketing Research Process
Fig
1.4
The Role of Marketing Research in Decision Making
Fig
1.5
The Inform
ation Value Chain for Marketing Research
Fig
1.6
Figure 1.1 Introduction to Marketing Research: An Overview (cont.)
Be a DM! Be an MR! Experiential LearningOpening Vignette
Marketing Research Industry
Selecting a Research Supplier
Fig
1.7
Table
1.1
What Would You Do?
Application to Contemporary Issues
Technology
Ethics
International
Be a DM! Be an MR! Experiential Learning
Careers in Marketing Research
The Role of Marketing Research in MIS and DSS
Fig. 1.8 and 1.9
What Would You Do?
Definition of Marketing Research
Marketing research is the systematic and objective
�identification,
�collection,
�analysis,
�dissemination, and
�use of inform
ation
for the purpose of improving decision making related to the
�identification and
�solution of problems and opportunities in marketing.
Identification of
Inform
ation
Needed Collection of
Data
Identifying and
Solving Marketing
Problems
Figure 1.2 Defining Marketing Research
Analysis of
Data Dissemination of
Inform
ation
Use of
Inform
ation
Market Research
•Specifies the inform
ation necessary to address
these issues
•Manages and implements the data collection
•Manages and implements the data collection
process
•Analyzes the results
•Communicates the findings and their implications
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
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.
Problem
Identificatio
n Research
Marketing
Research
Figure 1.3 A Classification of Marketing Research
Problem
Solving
Research
•M
ark
et P
ote
ntial R
esearc
h
•M
ark
et S
hare
Researc
h
•Im
age R
esearc
h
•M
ark
et C
hara
cte
ristics
Researc
h
•Fore
casting R
esearc
h
•B
usin
ess T
rends R
esearc
h
•S
egm
enta
tion
Researc
h
•P
roduct R
esearc
h
•P
ricin
g R
esearc
h
•P
rom
otion R
esearc
h
•D
istrib
ution R
esearc
h
Problem Solving Research
�Determ
ine the basis of segmentation
�Establish market potential and
responsiveness for various
segments
SEGMENTATION RESEARCH
�Test concept
PRODUCT RESEARCH
Table
1.1
segments
�Select target markets
�Create lifestyle profiles:
demography, media, and
product image characteristics
�Test concept
�Determ
ine optimal product
design
�Package tests
�Product modification
�Brand positioning and
repositioning
�Test marketing
�Control score tests
Problem Solving Research
Table
1.1
(cont.)
PROMOTIONAL RESEARCH
�Optimal promotional budget
�Sales promotion relationship
�Optimal promotional mix
�Copy decisions
�Media decisions
PRICING RESEARCH
�Pricing policies
�Importance of price in brand selection
�Product line pricing
�Price elasticity of demand
�Initiating and responding to price changes
�Media decisions
�Creative advertising testing
�Evaluation of advertising effectiveness
�Claim substantiation
Problem Solving Research
DISTRIBUTION RESEARCH
Determ
ine…
�Types of distribution
�Attitudes of channel members
�Intensity of wholesale & resale coverage
�Channel margins
�Location of retail and wholesale outlets
Segmentation Research
-determ
ine basis of segmentation
-establish market potential and responsiveness for various segments
-select target markets and create lifestyle profiles for demography,
media, and product image characteristics
Product Research
Problem Solving Research
Product Research
-test concept
-determ
ine optimal product design
-package tests
-product modification
-brand positioning and repositioning
-test marketing
-control store tests
Problem Solving Research (Cont.)
Pricing Research
- importance of price in brand selection
- pricing policies
- product line pricing
- product line pricing
- price elasticity of demand
- initiating and responding to price changes
Problem Solving Research (Cont.)
•Promotional Research
-optimal promotional budget
-sales promotion relationship
-optimal promotional mix
-optimal promotional mix
-copy decisions
-media decisions
-creative advertising testing
-claim substantiation
-evaluation of advertising effectiveness
Problem Solving Research (Cont.)
Distribution Research
- determ
ine type of distribution
- determ
ine type of distribution
- attitudes of channel members
- intensity of wholesale and retail coverage
- channel margins
- location of retail and wholesale outlets
Figure 1.4 The Marketing Research Process
Step 1: Defining the Problem
Step 2: Developing an Approach to the Problem
Step 3: Form
ulating a Research Design
Step 3: Form
ulating a Research Design
Step 4: Doing Field Work or Collecting Data
Step 5: Preparing and Analyzing Data
Step 6: Preparing and Presenting the Report
Uncontrollable
Environmental
Factors
•E
conom
y•Technolo
gy
•C
om
petition
•Law
s a
nd
Regula
tion
•S
ocia
l and
Customer Groups
•C
onsum
ers
•E
mplo
yees
•C
hannel M
em
bers
•S
upplie
rs
Marketing
Controllable
Marketing
Variables
•P
roduct
•P
ricin
g
•P
rom
otion
•D
istrib
ution
Figure 1.5 The Role of Marketing Research in Marketing Decision M
aking
•S
ocia
l and
Cultura
l Facto
rs•P
olit
ical Facto
rs
Assessing
Inform
ation
Needs
Marketing
Research
Marketing Managers
•M
ark
et S
egm
enta
tion • M
ark
eting P
rogra
ms
•Targ
et M
ark
et S
ele
ction • P
erform
ance a
nd
Control
Marketing
Decision
Making
Providing
Inform
ation
The Information Value
Chain
Figure 1.6 The Inform
ation Value Chain
Data
Information
Data
with
struct
ure
Knowledge
Info
rmatio
n e
ndowed
with
meanin
g
Decision
Making
Pro
cess
es
Outc
om
es
Implementing
Action
Exp
ertise
in m
easu
rem
ent
Figure 1.7 Marketing Research Industry: Supplier and Services
Researc
h
Supplie
rs
Inte
rnal
Exte
rnal
Lim
ited S
erv
ice
Full
Serv
ice
Oth
er Serv
ices
Fie
ld S
erv
ices
Custo
miz
ed
Serv
ices
Syndic
ate
d
Serv
ices
Inte
rnet
Serv
ices
Marketing Research Suppliers & Services
•Internal suppliers
•External suppliers
–Full-service suppliers
•Syndicated services
•Standardized services
•Customized services
•Customized services
•Internet services
–Limited-service suppliers
•Field services
•Coding and data entry services
•Analytical services
•Data analysis services
•Branded marketing research products
Criteria for Selecting a Research Supplier
�W
hat is
the reputa
tion o
f th
e s
upplie
r?
�D
o they c
om
ple
te p
roje
cts
on s
chedule
?
�Are
they k
now
n for m
ain
tain
ing e
thic
al sta
ndard
s?
�Are
they fle
xib
le?
�Are
their researc
h p
roje
cts
of hig
h q
ualit
y?
�W
hat kin
d a
nd h
ow
much e
xperience d
oes the s
upplie
r �
What kin
d a
nd h
ow
much e
xperience d
oes the s
upplie
r have? H
as the firm
had e
xperience w
ith p
roje
cts
sim
ilar
to this
one?
�D
o the s
upplie
r's p
ers
onnel have b
oth
technic
al and
non-technic
al expertis
e?
�C
an they c
om
munic
ate
well
with the c
lient?
Com
petitive b
ids s
hould
be o
bta
ined a
nd c
om
pare
d o
n
the b
asis
of qualit
y a
s w
ell
as p
rice.
Careers in Marketing Research
•C
are
er opportunitie
s a
re a
vaila
ble
with m
ark
eting
researc
h firm
s (e.g
., A
C N
iels
en, Burk
e, In
c., M
/A/R
/C)
•C
are
ers
in b
usin
ess a
nd n
on-b
usin
ess firm
s a
nd
agencie
s w
ith in-h
ouse m
ark
eting researc
h d
epartm
ents
(e.g
., P
rocte
r & G
am
ble
, C
oca-C
ola
, AT &
T, th
e F
edera
l
Tra
de C
om
mis
sio
n, U
nited S
tate
s C
ensus B
ure
au)
Tra
de C
om
mis
sio
n, U
nited S
tate
s C
ensus B
ure
au)
•Advertis
ing a
gencie
s (e.g
., B
BD
O Inte
rnational, O
gilv
y &
Math
er, J
. W
alter Thom
pson, Young &
Rubic
am
)
•Positio
ns: vic
e p
resid
ent of m
ark
eting researc
h, re
searc
h
directo
r, a
ssis
tant directo
r of re
searc
h, pro
ject m
anager,
field
work
directo
r, s
tatisticia
n/d
ata
pro
cessin
g s
pecia
list,
senio
r analy
st, a
naly
st, junio
r analy
st, a
nd o
pera
tional
superv
isor.
Selected Marketing Research Career Descriptions
Vice President of Marketing
Research
•Part of company’s top
management team
•Directs company’s entire market
research operation
Research Director
•Also part of senior
management
•Heads the development
and execution of all
research projects
•Sets the goals & objectives of the
marketing research department
Assistant Director of Research
•Administrative assistant to director
•Supervises research staff members
SeniorProjectManager
•Responsible for design, implementation, &
research projects
Analyst
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
Statistician/Data Processing
Selected Marketing Research Career Descriptions
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
Statistician/Data Processing
•Serves as expert on theory and
application on statistical techniques
•Oversees experimental design, data
processing, and analysis
Preparation for a Career in Marketing Research
•Take a
ll th
e m
ark
eting c
ours
es y
ou c
an.
•Take c
ours
es in s
tatistics a
nd q
uantita
tive m
eth
ods.
•Acquire Inte
rnet and c
om
pute
r skills. K
now
ledge o
f
pro
gra
mm
ing languages is a
n a
dded a
sset.
pro
gra
mm
ing languages is a
n a
dded a
sset.
•Take c
ours
es in p
sycholo
gy a
nd c
onsum
er behavio
r.
•Acquire e
ffective w
ritten a
nd v
erb
al com
munic
ation
skills.
•Thin
k c
reatively
. C
reativity a
nd c
om
mon s
ense
com
mand a
pre
miu
m in m
ark
eting researc
h.
Internal
Billing,
Production,
and Other
Records
Decision
Marketing
Inform
ation
Systems
Figure 1.8 The Development of MIS and DSS
=External
Market
Inform
ation
+
Expert Systems
Decision
Support
Systems
MIS
•Structured problems
Figure 1.9 Marketing Inform
ation Systems (MIS)
vs.
Decision Support Systems (DSS)
DSS
•Unstructured problems
•Use of reports
•Inform
ation
displaying restricted
•Can improve
decision making by
clarifying new data
•Use of models
•Adaptability
•Can improve decision
making by using “what
if” analysis
Figure 1.10 Stakeholders in Marketing Research:
An Ethical Perspective
Clie
nt
Mark
eting
Researc
her
Public
Respondents
Domestic
AA
PO
R: A
merican A
ssocia
tion for P
ublic
Opin
ion R
esearc
h
(ww
w.a
apor.org
)
AM
A: A
merican M
ark
eting A
ssocia
tion (w
ww
.am
a.o
rg)
AR
F: The A
dvertis
ing R
esearc
h F
oundation (w
ww
.am
ic.c
om
/arf)
Marketing Research Associations Online
AR
F: The A
dvertis
ing R
esearc
h F
oundation (w
ww
.am
ic.c
om
/arf)
CA
SR
O: The C
ouncil
of A
merican S
urv
ey R
esearc
h O
rganiz
ations
(ww
w.c
asro
.org
)
MR
A: M
ark
eting R
esearc
h A
ssocia
tion (w
ww
.mra
-net.org
)
QR
CA
: Q
ualit
ative R
esearc
h C
onsultants
Associa
tion
(ww
w.q
rca.o
rg)
RIC
: R
esearc
h Industry C
oalit
ion (w
ww
.researc
h industry.
org
)