STEPS IN MARKETING RESEARCH

The chances of making good decisions improve when the right information is provided at the right
time. In order to attain this goal, the marketing researcher should follow several steps.

Stage 1: Formulating the Marketing Research Problem

Formulating a problem is the first step in the research process. In many ways, research starts with a
problem that management is facing. This problem needs to be understood, the cause diagnosed, and
solutions developed.

A management problem must first be translated into a research problem. Management problems
focus on an action. Research problems, on the other hand, focus on providing the information needed in
order to solve the management problem.

Once the problem is given an approach from a research angle, finding a solution is easier. For
example, “sales are not growing” is a management problem. Translated into a research problem, the
company may examine the expectations and experiences of several groups such as potential customers,
first time buyers, and repeat purchasers. This will determine if the lack of sales is due to:

1. Poor expectations that lead to a general lack of desire to buy, or

2. Poor performance experience and a lack of desire to purchase.

Stage 2: Statement of Research Objectives

After identifying and defining the problem and formulating the research problem, the researcher
must take a formal statement of research objective. Such objectives may be stated in qualitative and
quantitative terms and expressed as research questions, statement or hypothesis. For example, the research
objective, “to find out the extent to which sales promotion schemes affected the sales volume” is research
objective expressed as a statement.

On the other hand, a hypothesis is a statement that can be refuted or supported by empirical finding.
The same research objective could be stated as, “To test the proposition that sales are positively affected by
the sales promotion schemes undertaken this summer.” Example another hypothesis may be: “The new
packaging pattern has resulted in increase in sales and profits.” Once the objectives or the hypotheses are
developed, the researcher is ready to choose the research design.

Stage 3: Research Design

The research design is a plan or framework for conducting the study and collecting data. It is
defined as the specific methods and procedures used to acquire the information needed. It represents a
framework for the research plan of action.

The objectives of the study are included in the research design to ensure that data collected are
relevant to the objectives. At this stage, the researcher should also determine the type of sources of
information needed, the data collection method (e.g., survey or interview), the sampling, methodology, and
the timing and possible costs or research.
 There are three types of research design:

 Exploratory Research

Exploratory research is used in cases where the marketer has little or no understanding
about the research problem due to lack of proper information. For example, a marketer has heard
about social media marketing techniques which are employed by their competitors with great
success but he is not familiar with using these for his products/services.

The marketer needs to use exploratory research to gain/discover insights about this
situation. Thus, when the goal of the marketer is to precisely formulate problems, clear concepts,
gain insights, eliminate impractical ideas and form hypotheses then exploratory research is used.

Exploratory research follows an unstructured format and makes use of qualitative

techniques, secondary research and expert’s opinions. For example, the marketer from the previous
case san use books, syndicated research, case studies, focus groups, expert interviews and survey
techniques to conduct exploratory research.

The results of exploratory research can’t be used for marketing decisions in most cases at
least not directly. However, the core goal of exploratory research is to equip marketers with enough
information to facilitate marketers plan a format research design correctly. For example by
conducting exploratory research the marketer can find out that the competition is using popular
social media channels like, Facebook, Twitter, LinkedIn and YouTube to search target consumers
effectively and successfully engaging customers with the brand directly. Now with this information
he can plan a formal research design to test his hypotheses.

 Descriptive Research

Descriptive research describes marketing problems, situations, or markets, such as the

market potential for a product or the demographics and attitudes of consumers.

Descriptive research is used to find accurate answers of questions like:

1. Who are users of my product/ services?
2. How they are using my product/ services?
3. What proportion of population uses my product/ services?
4. What is the future demand for my products/ services?
5. Who are all my competitors?

Thus descriptive research is used to explain, monitor and test hypotheses created by marketers
to help them find accurate answers. Due to this reason descriptive research is rigid, well structure
and well planned and uses quantitative techniques like questionnaires, structured interviews, data
analysis etc.

 Causal Research

Causal research is used by marketers to find cause and effect relationships of variables. It is
also sometimes referred as “If… The…” method. In this type of variables, the marketer tries to
understand the effects of manipulating independent variable on other dependent variable.

Causal research uses field and laboratory experimentation techniques to achieve its goals.
This research is used by marketers mainly to predict and test hypotheses.

Here are cases where causal research can be used:

1. What will happen to sale of my product if I change the packaging of the product?
2. What will happen to sale of my product if I change the design of the product?
3. What will happen to sale of my product if I change the advertising?

Stage 4: Planning the Sample

Sampling involves procedures that use a small number of items or parts of the population (total
items) to make conclusion regarding the population. A marketing research project will rarely examine an
entire population. It’s more practical to use a sample which is a smaller but accurate representation of the
greater population. In order to design a sample, a researcher must find answers to these questions:
 1. From which base population is the sample to be selected?
2. What is the method (process) for sample selection?
3. What is the size of the sample?

Upon knowing who relevant population is established there is already a base for the sample. This will
allow the researcher to make inferences about a larger population. There are two methods of selecting a
sample from a population: probability or non-probability sampling.

The probability method relies on a random sampling of everyone within the larger population.
Randomly choosing subjects can increase the chance that a sample will reflect the population at large. Here
are some types of probability methods of sampling:

1. Simple random sampling- simple random sampling refers to any sampling method that has the
following properties:
i. The population consists of N objects.
ii. The sample consists of n object.
iii. If all possible samples of n objects are equally likely to occur, the sampling
method is called simple random sampling.

There are many ways to obtain a simple sample. One way would be the lottery method. Each of the N
population members is assigned a unique mirror. The numbers are placed in a bowl and thoroughly mixed.
Then, a blind-folded researcher selects n numbers. Population members having the selected numbers are
included in the sample.

2. Stratified sampling- With stratified sampling, the population is divided into groups, based on
some characteristic. Then, within each group, a probability sample (often a simple random
sample) is selected. In stratified sampling, the groups are called strata. As an example, a
national survey is conducted. The researcher might divide the population into groups or strata
based on geography-north, east, south, and west. Then, within each stratum, he might randomly
select survey respondents.

3. Cluster sampling- With cluster sampling, every member of the population is assigned to one,
and only one, group. Each group is called a cluster. A sample of clusters is chosen, using a
probability method (often simple random sampling). Only individuals within sampled clusters
are surveyed.

Note the difference between cluster sampling and stratified sampling. With stratified
sampling, the sample includes elements from each stratum. With cluster sampling, in
contrast, the sample includes elements only from sampled clusters.

4. Multistage sampling- With multistage sampling, a sample is selected by using combinations of

different sampling methods. For example, in Stage 1, the researcher might use cluster sampling
to choose clusters from a population. Then, in stage 2, he might use simple random sampling to
select a subset of elements from each chosen cluster for the final sample.

5. System random sampling- With systematic random sampling, the researcher creates a list of
every member of the population. From the list, he randomly selects the first sample element
from the first k elements on the population list. Therefore, he selects every kth element on the
list. This
 method is different from simple random sampling since every possible sample of n elements is
not equally likely.

Non-probability method is based in part on the judgement of the researcher, and often employs
convenience samples, or by other sampling methods that do not rely on probability. Here are some types of
non-probability methods of sampling:

1. Voluntary sample – a voluntary sample is made up of people who self-select into the
survey. Often, these folks have a strong interest in the main topic of the survey.
Suppose, for example, that a news show asks viewers to participate in an online poll.
This would be a volunteer sample. The sample is chosen by the viewers, not by the
survey administrator.

2. Convenience sample – A convenience sample is made up of people who are easy to

reach. Consider the following example. A researcher interviews shoppers at a local mall.
If the mall was chosen because it was a convenient site from which to solicit survey
participants and/or because it was close to the researcher’s home or business, this would
be convenience sample.

The final stage of the sample design involves determining the appropriate sample size. This
important step involves cost and accuracy decisions. Larger samples generally reduce sampling error and
increase accuracy, but also increase costs.

Stage 5: Data Collection Techniques

The collection of data relates to the gathering of facts to be used in solving the problem. Hence,
methods of market research are essentially methods of data collection.

There are two kinds of data:

1. Secondary data are facts and figures that have already been recorded before the marketing research
project. Data that are secondary can be collected from concerned reports, magazines and other periodicals,
especially written articles, government publications, company publications, books, etc. There are two
sources of secondary data which are the internal sources and external sources. Internal sources include data
that exists and is stored inside the organization. External data is data that is collected by other people or
organizations from the organization’s external environment.

2. Primary data are facts and figures that are newly corrected for the marketing research project. Data that
are primary can be collected from the original base through empirical research by means of various tools.

There are many ways to collect data. Two important methods to consider are interviews and
observation.

Interviews required a researcher to ask questions and receive responses. Common modes of
research communication include interviews conducted face-to-face, by mail, by telephone, by email, or
over the Internet. This broad category of research techniques is known as survey research. These
techniques are used in both non-experimental research and experimental research.

Another way to collect data is by observation. Observing a person’s or company’s past or present
behavior can predict future purchasing decisions. Data collection techniques for past behavior can include
analyzing company records and reviewing studies published by external sources.

In order to analyze information from interview or observation techniques, a researcher must record
results. Because the recorded results are vital, measurement and development are closely linked to which
data collection techniques he decided on.

The way of recording of data changes depends on which method to use.

Stage 6: Analysis and Interpretation

In order for data to be useful, they must be analyzed. Analysis techniques vary on their
effectiveness depends on the types of information collected, and the type of measurements to be used.
Because they are dependent on the data collection, analysis techniques should be decided before this step.

Stage 7: The Marketing Research Report

 The marketing research process culminates with the research report. This
report will include all of information, including an accurate description of the
research process, the results, the conclusions, and recommended courses of action.
The report should provide all the information the decision maker needs to
understand the project.

It should also be written in language that is easy to understand. It’s important to find a balance between
completeness and conciseness. The researches don’t want to leave any information out. However, he can’t
let the information get so technical that it overwhelms the reading audience