MARKETING RESEARCH

Presented by
Lijin Mathew
Definition : 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.”
 Marketing research is the process of designing, gathering, analyzing,
and reporting information that may be used to solve a specific marketing
problem.
Marketing Research Process Evolves From
Answers to Five Key Questions
• Why should we do research?
• What research should be done?
• Is it worth doing the research?
• How should the research be designed to achieve
the research objectives?
• What will we do with the research?
Need of marketing research

 To undertake marketing effectively

 Changes in technology
 Changes in consumer tastes
 Market demand
 Changes in the product ranges of competitors
 Changes in economic conditions
 Distribution channels
Factors to be Investigated through
Market Research
 Trends in the market
 Segmentation of the market
 Information available
 SWOT analysis
 Effectiveness of Marketing
 Purpose of Marketing Research
 Gain a more detailed understanding of consumers’ needs:
 e.g., views on products’ prices, packaging, recent advertising campaigns

 Reduce the risk of product/business failure:

 there is no guarantee that any new idea will be
a commercial success
 Can help to achieve commercial success
 Forecast future trends:
 it can also be used to anticipate future customer needs
 7 Characteristics of a Good Marketing
Research
1. Scientific Method : Research should use principles of scientific
methods ;careful observation, formulation of hypothesis,
prediction and testing
2. Research Creativity : Research should develop innovative ways to
solve a problem
3. Multiple Methods : Try to use 2 or 3 methods for getting more
confidence and more accurate result
4. Interdependence of models and data : Researchers recognize that
data are interpreted from underlying models that guide the type
of information sought
5. Value and Cost of Information : Estimation of cost and value, it is easier to
determine cost but value is harder, it depends on the
reliability and validity of information
6. Healthy Skepticism : Researcher shows a healthy skepticism towards
glib assumptions made by managers
7. Ethical Marketing : Marketing research benefits both the sponsoring
company and its customers
Marketing Research Methods
1. Based on questioning
 Qualitative marketing research -
generally used for exploratory purposes - small number of
respondents - not generalizable to the whole population - statistical
significance and confidence not calculated - examples include focus
groups, in-depth interviews, and projective techniques
 Quantitative marketing research -
generally used to draw conclusions - tests a specific hypothesis -
uses random sampling techniques so as to infer from the sample to
the population - involves a large number of respondents
2. Based on observations
 Ethnographic studies –
by nature qualitative, the researcher observes social phenomena
in their natural setting - observations can occur “cross- sectionally”
(observations made at one time) or “longitudinally” (observations
occur over several time-periods) - examples include product-use
analysis and computer cookie traces.
 Experimental techniques -
by nature quantitative, the researcher creates a quasi-artificial
environment to try to control spurious factors, then manipulates at
least one of the variables - examples include purchase laboratories
and test markets
Marketing Research Techniques
Types
1. Qualitative Research
2. Quantitative Research
 Primary Market Research
 Secondary Market Research
1. Qualitative Research
 qualitative market research which mainly takes into account the
opinions and feelings of a customer about products and services
 It tries to get behind the customer’s mind
2. Quantitative Research
 This type of research work is based on hard facts and statistical data
rather than the feelings and opinions of the customers or consumers
 This type of research is useful both in terms of primary market research
and secondary market research
 Some of the common examples of quantitative research include exit
surveys, questionnaires, on-site fieldwork, the shopping bag survey,…
 Primary Market Research
 Also called as “Field Research”
 Primary market research is a kind of market research which is done by
the business or company itself with the objective of gathering
information that can be used to improve the products, services, and
functions
 It doesn’t use any information that is already made available through
other sources
 One can gather primary data or information through qualitative research
methods as well as quantitative research methods
 It is a method that only answers specific questions
5 Primary Market Research Techniques

1. Focus Groups :
 This method involves getting a group of people in a room or a
place and asking them insightful questions regarding the
product, its development, their preferences, and feedback, etc
 These types of focus groups can be run or conducted at any
location feasible for the company or business
 Participants in such focus groups are then compensated by
either free coupons, vouchers, gifts or money, etc.
 It is one type of qualitative research
2. Surveys and Questionnaire
 The term ‘surveys’ is a broad term that covers a lot of things
such as survey questionnaires, survey forms, survey interviews
and customer satisfaction cards, etc.
 It is a straightforward method of knowing whether or not the
customer is satisfied with the business’s existing services and
products or what kind of changes would the consumer like to
see
3. Observation
• There are two major observation techniques
• observation through interaction and communication with
the subject
• observation through no interaction and communication
with the subject
• This is more of a personal approach in comparison to surveys
and questionnaires
• Its come under Quantitative research
4. Trials and experimentation
 This method of primary research involves scientific tests where
hypotheses and variables, etc. are used
 This is a quantitative type of market research
5. In-depth Interviews
 It is a qualitative research
 It takes into consideration the kinds of choices and preferences
a customer
 Interviews, unlike focus groups, involve interaction between
one moderator and one respondent and several types of modes
and methods may be used to conduct them.
 Secondary Market Research
 secondary market research is a research technique that does not aim to
gather new information, it relies on already available information from
multiple sources
 This research focuses on data or information that was collected by other
people and is available for either free or paid use for others
 It takes into account many different sources for collection of
information including government data, office data, newspapers,
magazines, the internet, etc
 One of the benefits of doing secondary market research is that it is
mostly free and takes less time
2 Main sources of Secondary Market Research Data
1. Internal Sources
 Internal sources are those kinds of secondary market research
sources that already exist and are collected in the business’s
database or file system
 It include information that has already been collected by the
company and proves useful for future projects, etc
 Examples
 Balance Sheet
 Profit and Loss Account
 Inventory Records
 Sales Figures
2. External Sources
 External sources are those sources that present data that is
collected by other businesses or people
 These are collected from outside the business’s environment
and include multiple sources
 Examples
 Government Sources
 Universities and Colleges
 Internet
 Competitor Data
Classification of Marketing Research
Marketing Research

Problem Problem-Solving
Identification Research Research

• Market Potential Research • Segmentation Research

• Market Share Research
• Market Characteristics Research
• Sales Analysis Research
• Forecasting Research
• Business Trends Research
• Product Research
• Pricing Research
• Promotion Research
• Distribution Research
Problem-Solving Research

1. 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 image characteristics
2. Product Research
 Test concept
 Determine optimal product design
 Package tests
 Product modification
 Brand positioning and repositioning
 Test marketing
 Control store tests
3. Pricing Research
 Pricing policies
 Importance of price in brand selection
 Product line pricing
 Price elasticity of demand
 Initiating and responding to price changes

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4. Promotional Research
 Optimal promotional budget
 Sales promotion relationship
 Optimal promotional mix
 Copy decisions
 Media decisions
 Creative advertising testing
 Evaluation of advertising effectiveness
5. Distribution Research

 Types of distribution
 Attitudes of channel members
 Intensity of wholesale & retail coverage
 Channel margins
 Location of retail and wholesale outlets
Market Research Process
Step 1: Defining the Problem and Objectives

Step 2: Develop the Research Plan

Step 3: Collect the Information

Step 4: Analyze the Information

Step 5: Present the Findings

Step 6: Making Decision

Areas Covered by Marketing Research
Customer Groups
• Consumers
• Employees
• Shareholders
• Suppliers
Uncontrollable
Controllable Environmental
Marketing Factors
Variables
Marketing • Economy
• Product
Research • Technology
• Pricing
• Laws &
• Promotion Regulations
• Distribution • Social & Cultural
Marketing Factors
Assessing Providing
Information Information Decision • Political Factors
Needs Making

Marketing Managers
• Market Segmentation
• Target Market Selection
• Marketing Programs
• Performance & Control
MISTAKES TO AVOID WHEN DOING MARKET
RESEARCH
 Doing only primary market research or secondary market research
 Using only the web for research
 Limited Vision
 Not being able to identify your target audience
 Not giving consumers an incentive to communicate with you
Benefits of Market Research
 Tapping Opportunities
 Encouraging Communication
 Minimization of the risks
 Find out possible problems