1. What kinds of decisions are made by marketing managers?

How does 
marketing research

help in supporting these decisions?

Within this framework of decision making, marketing research helps the marketing manager link the
marketing variables with their environment and customer groups. It helps remove some of the
uncertainty by providing relevant information about marketing variables, environment and
consumers.

The role of the researcher in supporting the marketing decision maker can therefore be summarised
as helping to:

Describe the nature and scope of customer groups;

Understand the nature of forces that shape customer groups;

Understand the nature of forces that shape the marketer’s ability to satisfy targeted customer
groups;

Test individual and interactive variables that shape consumer experiences; monitor and reflect
upon past successes and failures in marketing decisions.
 2. Briefly describe the phases of marketing research!

Step 1: Problem definition. The logical starting point in wishing to support the decision maker is
trying to understand the nature of the marketing problem that requires research support.
Marketing decision problems are not simple ‘givens’ (as will be discussed in Chapter 2). Many
researchers are surprised to learn that clearly defining a research problem can be the most
challenging stage in a research project. Once the problem has been precisely defined, the researcher
can move on to designing and conducting the research process with confidence.

Step 2: Develop the approach. In this step, you need to establish a budget, understand influencing
factors such as the environment or economy.

Step 3: Research design. A research design is a framework or blueprint for conducting a marketing
research project. It details the procedures necessary for obtaining the required information. Its
purpose is to establish a study design that will either test the hypotheses of interest or determine
possible answers to set research questions, and ultimately provide the information needed for
decision making.

Step 4: Fieldwork or data collection. In Figure 1.2, this stage could be simplified to ‘collecting the
required data’. In Figure 1.3, a whole array of relationships between stages of data collection is
shown, starting at secondary data collection and analysis through to quantitative research or
qualitative research. The process starts with a more thorough collection and analysis of secondary
data sources. Secondary data are data collected for some other purpose than the problem at
hand.

Step 5: Data analysis. Data preparation includes the editing, coding, transcription and verification
of data. This is perhaps the least glamorous aspect of market research but is critical

Step 6: Communicating findings. Even if steps one to five are followed in the best possible way, there
is no use carrying out research unless it can be communicated effectively to stakeholders. The in
ensuring the integrity and accuracy of findings.

3. Explain the difference between data, information and insight! Illustrate each of them with
an example!

Data is the raw product that when structured and organised becomes information. This
information is useful as it is – but when we are able to extract something that may lead to
competitive advantage – something novel and profound – then we are gaining insight.

Insights: Aha moment, eureka feeling when you come to a solution. Insights come when you dig
beneath the surface, looking beyond what the customer is saying, looking for motivation
behavior.

Consumer insight, as defined by Diageo, is: ‘A penetrating discovery about consumer

motivations, applied to unlock growth’:

Penetrating – same data, but much deeper understanding.

Discovery – ah-ha! eureka!

Motivations – understand the why?

Applied – leveraged for their brands.

Growth – organic from brand strategies based on deep consumer understanding.

Example: Data is raw numbers, info is how many households watched tv commercial for
example, insight is what motivates them to watch the tv commercial.

4. Define the concepts of problem-identification and problem solving research and give
examples for both!
How may effective problem-identification research enhance the practice of problem-solving
research? Illustrate it through an example!

Problem identification research

Research undertaken to help identify problems that are not necessarily apparent on the
surface, yet exist or are likely to arise in the future. Research of this type provides
information about the marketing environment and helps diagnose a problem. Example:
Knowing the Characteristics of Your Target Market(s): Market research sheds lights on the
intricacies of essential consumer demographics. Not just the widely prevailing similarities that
define specific consumer cohorts, but also the equally important differences. It is after all
essential to consider all aspects that drive various consumers to purchase from your
 company. Customers in different geographic regions are likely to exhibit different purchase
patterns and behaviors. Understanding the differences between subcultures and then
subsequently meeting those needs will help your business marketing strategies succeed.
Problem-solving research
Research undertaken to help solve specific marketing problems. Problem-solving research
linked to problem-identification research. Example:
Grouping customers by similar backgrounds or similar purchase behaviors.
Utilizing problem-solving research can determine how to most accurately
accomplish this and even how to design advertisements to attract those
groups. You will need to collect both qualitative and quantitative data to
accurately understand your market segments.
How they can improve both: because the diagnosis of the market share, market
potential, sales analysis and forecasting help or improve the practice of problem
solving research. It’s easier when the problem is identified so it’s enhance it

5. What is the purpose of a marketing research brief and what are its components?
A document produced by the users of research findings to communicate the perceived
requirements of a marketing research project.
The purpose of a written marketing research brief:
makes the initiator of the brief more certain of how the information to be collected will
support decision making.
ensures an amount of agreement or cohesion among all parties
It helps both the marketer and the researcher to plan and implement the research design.
It helps to reduce disputes that can occur when the gaps in decision makers’ knowledge are
not ‘filled’ as intended.
It can form the basis for negotiation with a variety of research organizations.

Components of the marketing research brief

 1 Background information. The background serves to put research objectives into context,
helping the researcher to understand why certain research objectives are being pursued.
2.Objectives. The first part of this section would detail which marketing decisions are to be
completed once the research has been undertaken. This requires decision makers to
explain what they see as the focus of the decisions they plan to make. They then go on to
explain what gap(s) they see in their knowledge. Those gaps create the focus for planned
research activities and set the research objectives.
3. Target to research: details of the characteristics of the target group(s) can help in many
research design decisions.
4 Who is to use the findings? This section would outline brief details of the decision makers
who will use the research findings. For example, certain decision makers may be
entrepreneurial and introspective, looking for short-term tactical advantages. The user
target of the research will determine the way information is shown and presented.
5 Constraints. The main limitation to researchers carrying out what they may perceive as
being the correct way to research a problem is the time and money that decision makers
can afford.
6 Administrative considerations. These would lay out administrative details in completing the
research project. Examples could be the expected delivery of interim reports, contacts in an
organisation that may be able to help supply further information, or refer ence to sources of
materials and individuals that are needed to complete the research successfully.

6. Differentiate between exploratory and conclusive research!

The primary objective of exploratory research is to provide insights into and an
understanding of marketing phenomena. Conducted to clarify ambigous situations or
discover ideas that may be potential business opportunities
Exploratory research can be useful in helping to better define a marketing problem or
identify a market opportunity. An exploratory design may be implemented to try to reveal
not just the symptoms observed in some situation, but potential underlying problems that
are causing those symptoms.
Exploratory research may also be used in cases where the problem must be defined more
precisely, relevant courses of action identified, or additional insights gained before going on
to confirm findings using a conclusive design.
exploratory research is meaningful in any situation where the researcher does not have
enough understanding to proceed with the research project. Exploratory research is
characterised by flexibility and versatility with respect to the methods, because formal
research protocols and procedures are not employed. Once a new idea or insight is
discovered, they may redirect their exploration in that direction. That new direction is
pursued until its possibilities are exhausted or another direction is found. For this reason,
the focus of the investigation may shift constantly as new insights are discovered. Thus, the
creativity and ingenuity of the researcher play a major role in exploratory research.
The objective of conclusive research is to describe specific phenomena, to test specific
hypotheses and to examine specific relationships. This requires that the information
needed is clearly specified.17 Conclusive research is typically more formal and structured
than exploratory research. It is based on large, representative samples, and the data
obtained are subjected to quantitative analysis.

Exploratory research
A research design characterized by a flexible and evolving approach to understanding
marketing phenomena that are inherently difficult to measure.

Conclusive research
A research design characterized by the measurement of clearly defined marketing
phenomena.

Differences between exploratory and conclusive research

 Summary of uses of exploratory research

1. To obtain some background information where absolutely nothing is known about the
problem area.
2. To define problem areas fully and to formulate hypotheses for further investigation and/or
quantification
3. To identify and explore concepts in the development of new products or forms of marketing
communications
4. During a preliminary screening process, such as in new-product development, in order to
reduce a large number of possible projects to a smaller number of probable ones.
5. To identify relevant or salient behavior patterns, beliefs, opinions, attitudes, motivations,
etc., and to develop structures of these constructs
6. 6 To develop an understanding of the structure of beliefs and attitudes in order to aid the
interpretation of data structures in multivariate data analyses.
7. 7 To explore the reasons that lie behind the statistical differences between groups that
may emerge from secondary data or surveys.
8. 8 To explore sensitive or personally embarrassing issues from the participants’ and/or the
interviewer’s perspective.
9. 9 To explore issues that participants may feel deeply about, that are difficult for them to
rationalize and that they may find difficult to articulate.
10. 10 To ‘data-mine’ or explore quantitative data to reveal hitherto unknown connections
between different measured variables.

Summary of uses of conclusive research

1 To describe the characteristics of relevant groups, such as consumers, salespeople,

organizations, or target market.
2 To estimate the percentage in a specified population exhibiting a certain form of
behavior.
3 To count the frequency of events, especially in the patterns of consumer behavior.
4 To measure marketing phenomena to represent larger populations or target markets.
5 To be able to integrate findings from different sources in a consistent manner, especially
in the use of marketing information systems and decision support systems.
6 To determine the perceptions of product or service characteristics.
7 To compare findings over time that allow changes in the phenomena to be measured.
8 To measure marketing phenomena in a consistent and universal manner.
9 To determine the degree to which marketing variables are associated.
10 To make specific predictions.

7. What is syndicated research? Describe the retail audit method and its uses!

Syndicated data from institutions – Audit

• Syndicated research: A research study which is conducted and funded by a market research
firm but not for any specific client is called a syndicated research.
• Retail audit data allow decision makers to analyze their product structure, pricing and
distribution policy, and their position in relation to their competition.
• The uses of retail audit data include:
• (1) determining the size of the total market and the distribution of sales by type of
outlet, region or city;
• (2) assessing brand shares and competitive activity;
• (3) identifying shelf-space allocation and inventory problems;
• (4) analyzing distribution problems;
• (5) developing sales potentials and forecasts;
8. What are the similarities and differences between in-depth interviews and focus groups?
• In-depth interviews: guided conversations: An unstructured, direct personal interview in
which a single respondent is probed by a highly skilled interviewer to uncover underlying
motivations, beliefs, attitudes and feelings on a topic.

Focus group discussion: An interview conducted by a trained moderator with a small group of
respondents in an unstructured manner.

Main purpose: to gain insights by creating a forum where respondents feel sufficiently relaxed to
reflect and share their feelings and behavior, at their pace, using their language and logic.

Techniques used in qualitative research

What is a panel company and why are such companies dominating survey data collection
today?

What the the advantages and disadvantages of using their services in marketing research?

• A panel company recruits large numbers of potential respondents who agree to take part in
surveys for compensation.

Advantages
• Fast turnaround

• High quality

• Database information

• Access to targeted respondents

• Additional services

Disadvantages

• Not random samples

• Overused respondents

• Cost

What are the main steps of new product development and indicate some research
methodologies that can be used at the various steps? Describe three of the methodologies
mentioned in more detail.
When searching for new product development advice, there are several frameworks to help
you structure the journey. From generating new ideas to releasing the product into the public
domain. One of the most popular frameworks for new product development is called ‘the
eight stages‘:

 Idea generation – generate a lot of product ideas, using internal and external
sources. This includes updating or amending an existing product.
 Idea screening – there is no such thing as a bad idea. Until you reach this stage.
Examine and eliminate non-viable ideas.
 Concept development and testing – the idea or concept gets the first external
feedback. Up to this point, the idea is purely internal, but bringing in customer
opinion can help further develop the idea.
 Marketing strategy/business analysis – establish and describe the target market,
projected sales, price, and marketing budget and campaign.
 Product design/development – develop prototypes or beta version to test with a
panel of individuals. This will highlight the level of interest and desired product
features.
 Test marketing – validate the entire concept, from marketing angle and message to
packaging, advertising, and distribution.
 Bring the product to market – the grand unveiling. Locations and seasonality may be
factored into the decision.
 Step 1: Idea Generation
 Objective: Develop a large pool of potentially viable product ideas.
 Research supports this step by providing consumer insights and product needs in a
particular category. Often this stage involves extensive secondary (existing)
research to identify consumer trends. It is also valuable to review any existing primary
research a company has conducted.
 One rich source is customer satisfaction research, which can be used to identify
frustrations and gaps in current product offerings. Tracking study data can also
provide useful knowledge of the competitive brand landscape.
 From a primary research standpoint, online communities offer a great forum to
gather insights. This approach involves empaneling target consumers in order to
conduct longer-term product testing studies. This would include methods like
product usage diaries and mobile ethnographies. The research objective is to provide
the internal idea generation team with insights on gaps in current product offerings
or currently unfulfilled consumer needs.
 Steps 2 and 3: Idea Screening/Concept Development and Testing
 Objective: Determine the most viable ideas for further development.
 Market research is critical at this stage as it focuses on new product development
resources on the most promising ideas based on direct consumer feedback. Idea
screening research approaches depend greatly on the form the new product ideas take;
for ideas that are relatively easy to grasp with a sentence or two and visual, a MaxDiff
(also known as 'best/worst') method is useful, as it can be used to screen many
 ideas quickly. And because it does not use scales, MaxDiff is extremely valuable
in cross-cultural research, where scale use among respondents can differ greatly.
 For more complex product ideas, traditional concept testing utilizing rating
scales can be used. If considering an online method, it is important to understand
thoroughly the capabilities of your survey platform provider to ensure they can
program these more complex methods.


 Step 4: Business Analysis

 Objective: Develop a final concept and business viability.
 At this stage, the product development team looks to determine the business impact
potential of the new product by analyzing production costs and competitive
environment, as well as branding, marketing, and pricing strategy.
 Research at this stage focuses on testing more developed concept ideas, which
often include packaging and price point. This is where online methods have
become the norm given their ability to display images and video.
 A richer visual display provides respondents a better sense of the product idea, and
therefore a more true-to-life response in terms of purchase intent. The use of
virtual store shelves that can test different packaging and price points in a
competitive context is also used extensively. It provides a powerful data set to the
business team who can then develop volumetric models to help more precisely assess
the business value of a new product.
 Step 5: Product Development
 Objective: Configure and develop a product prototype.
 The transformation of a concept into an actual product can take time, but it is essential
that the market research team stay close to the project during development. This will
help ensure that the product stays true to the consumer insights that formed the
basis for the idea. Once an actual prototype is developed, market research is
used to test product performance with actual consumers through usage tests.
 Depending on the product, this can take the form of one time in-person tests (ready-
to-eat food products, websites and mobile apps lend themselves to this type of
testing) or longer-term in-home use tests for products that require multiple uses
in order to be evaluated.
 in home use tests have been revolutionized by mobile research as they allow users to
easily capture their 'in the moment' reactions to using a product (or service).
Combined with the image capture and recording capabilities of the smartphone,
mobile methods provide the product development team with important details that can
help perfect the final product configuration.


 Step 6: Test Marketing

 Objective: Introduce product into the market to validate the concept before
launch.
 Not all products receive the benefits of a test market, however for food and CPG
products this stage is crucial. From a market research standpoint, supporting a test
market can take many forms.
 Often the launch of a new product is supported by marketing, so ad/marketing
effectiveness research is conducted. This can be done before the launch on ad
concepts (pretest) or as a monitoring device once the campaign is launched
(tracking). It is important that the target consumer is clearly defined at this point,
 so a sample plan can be developed. And because this information is used to
project national results, it is critical at a quality sample provider be used.
 Test markets can also benefit from product satisfaction research. This feedback is
important as it provides the product development team with insights that can
help perfect details before the full product launch. There is a full range of methods
that can be used here, from simple mail-in postcard surveys to using QR codes that
allow users to provide immediate feedback on their mobile device.
 Steps 7 and 8: Commercialization/Monitoring and Evaluation
 Objective: Full product launch.
 In support of a product launch, many of the methods used to support a test market are
re-created – ad/marketing effectiveness testing, tracking, and customer satisfaction.
Most often it is the tracking study that is the highest profile and can have the
most business impact for a firm.
 Tracking study success depends on three key factors: quality sample, questionnaire
design, and reporting. A critical component for a tracking study is to get input and
buy-in from key stakeholders early in the process so the study results meet
executive expectations. And as noted earlier, the tracking results will also likely
inform future new product development.

1. IdeaResearch types
generation
Idea generation
CUSTOMER SATISFACTION RESEARCH, ONLINE COMMUNITIES,
MOBILE ETHNOGRAPHIES
2. Idea screening
3. Concept development & testing
CROSS-CULTURAL RESEARCH, FUCOS GROUPS, CONCEPT
TESTING, SCALES

4. Marketing analysis/Business analysis

PRICING RESEARCH, PACKAGE TESTING, ONLINE RESEARCH -

VISUALIZATION
5. Product design development

IN-PERSON TESTS, LONGER-TERM IN-HOME USE TESTS

6. Test marketing
AD EFFECTIVENESS RESEARCH, MARKETING
EFFECTIVENESS RESEARCH
7. Commersialisation
8. Introduction

AD/MARKETING EFFECTIVENESS RESEARCH,

TRACKING STUDY SUCCESS, CUSTOMER
SATISFACTION