Introduction to Marketing Research

Marketing Research: Definition and Purpose

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

Definition of Marketing Marketing research is the systematic and objective Research

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

The Role of Marketing Research

Customer Groups

Consumers Employees Shareholders Suppliers

Controllable Marketing Variables

Uncontrollable Environmental Factors

Product Pricing Promotion Distribution

Marketing Research

Assessing Information
Needs

Providing Information

Marketing Decision
Making

Economy Technology Laws & Regulations Social & Cultural Factors Political Factors

Marketing Managers Market Segmentation Target Market Selection Marketing Programs Performance & Control

Role of Marketing Research

Can help the marketing manager to:
Is important because of

(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;

Rapid changing marketing environment; Need for up-todate information for strategically important areas; Importance of research as an integral part of better operation.

Marketing Research
Used to identify and define market opportunities and problems

Informati on

Generate, refine, and evaluate marketing performance Monitor marketing performance Improve understanding of marketing as a process

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.

A Classification of Marketing Research

Marketing Research

Problem Identification Research Market Potential Research Market Share Research Market Characteristics Research Sales Analysis Research Forecasting Research Business Trends Research

Problem-Solving Research

Segmentation Research Product Research Pricing Research Promotion Research Distribution Research

Problem-Solving Research
SEGMENTATION RESEARCH

Determine the basis of segmentation Establish market potential and responsiveness for various segments

Select target markets Create lifestyle profiles: demography, media, and

PRODUCT RESEARCH

Test concept Determine optimal product design Package tests Product modification Brand positioning and repositioning Test marketing Control score tests

PRICING RESEARCH

Pricing policies Importance of price in brand selection Product line pricing Price elasticity of demand Initiating and responding to price changes

PROMOTIONAL RESEARCH

Optimal promotional budget Sales promotion relationship Optimal promotional mix Copy decisions Media decisions Creative advertising testing Evaluation of advertising

DISTRIBUTION RESEARCH Determine

Types of distribution Attitudes of channel members Intensity of wholesale & resale coverage Channel margins Location of retail and wholesale outlets

When Marketing Research may not be necessary

Marketing research is almost always problemoriented. Whether to conduct marketing research depends on the managers experience and wisdom; nature of decision situation [repetitive or atypical]; degree of uncertainty; and the value and importance of the research. Marketing research may not be necessary if:
Information is available/outcomes known. Insufficient time for marketing research. Non-availability of resources. Cost Vs Value of the Research. Outcomes known.

Thank You!