12 SENIOR HIGH SCHOOL

PRINCIPLES OF
MARKETING
Quarter 3 – Module 5
Marketing Research
Introductory Message

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Thank you.

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 This module was designed to provide with fun and meaningful opportunities for
guided and independent learning at our own pace and time. You will be enabled to
process the contents of the learning resource while being an active learner.

The module is subjected to discuss marketing research which is a useful and necessary
tool for helping marketers and organization’s executive leadership to make wise decisions.
Carrying out marketing research can involve highly specialized skills that go deeper than the
information outlined in this module.

Pre-assessment:
Directions: Write True if the statement is correct and False if otherwise. Write your
answer in your activity notebook.
1. Sampling errors in data are likely to occur.
2. If the problem is correctly defined, all is wasted effort.
3. Market research allows a company to discover the target market and get opinions
and other feedback from consumers about their interest in the product or service.
4. Conducting a market research is costly.
5. Enable risk reduction is being addressed by marketing research.
6. Marketing research can be used to identify marketing opportunities and
problems.
7. Conclusions tell a researcher exactly what he or she should be looking for.
8. Causal research uncovers factors that cause on event.
9. Final report must not be overstated.
10. Target market studies help identify, quantify, and understand the target market
better.

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 ’s In

Task 1
Direction: Check your understanding about the Marketing Research by doing this activity.
Accomplish this on your notebook.
1. Calliah started doing her marketing research process by identifying the problem of
poor marketing message penetration. What does Calliah need to articulate next? Choose your
answer below and Explain briefly
a. Develop the research plan c. Conduct research
b. Objectives for the research

Task 2
Direction: Accomplish this on your notebook.
1. State an observation about how people behave when they are buying or
using a particular product. Ideally, it should be something that you think not
too many people have noticed.

PRODUCT:

Observations:

is It

Marketing Research
Marketing research is a function under a business organization’s Marketing
Information System (MIS). MIS is primarily responsible for the gathering, analysis, and
timely distribution of information for the use of marketing decision makers.

Definition
Market research is the process of determining the viability of a new service or product
through research conducted directly with potential customers. Market research allows a
company to discover the target market and get opinions and other feedback from consumers
about their interest in the product or service.

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The Purpose and Importance of Marketing Research
Companies have complete information about their products from production to
distribution. However, it is a challenge for the companies to know what happens to the
product after it was purchased. Who uses the product, how it is used, how much or how little
of it used, and the general attitudes of the consumer toward the product are not known
explicitly. Thus, for new products or new markets, the company may not be completely
certain whether the product will be accepted by the market. The value of the product to the
consumer is difficult to measure because perceptions of the value are subjective.
Although marketing research can be costly, it is indispensable. The following are
some of the issues that can be addressed by marketing research:
➢ Identify viable new products and services
➢ Enable risk reduction
➢ Identify market opportunities and threats
➢ Determine the level of customer satisfaction
➢ Pinpoint and anticipate market trends or changes
➢ Decide on the best advertising medium
➢ Pre-test and post-test advertising and promotional campaigns
➢ Evaluate the results of test marketing
➢ Evaluate the results of packaging, brand name, and label testing
➢ Determine consumer price awareness and sensitivity
➢ Undertake location studies

Steps in the Marketing Research Process

Marketing research can and should be used for various reasons. Marketing research
can be used to identify marketing opportunities and problems, generate and evaluate potential
marketing actions or plans, monitor marketing performance and improve marketing as a
process.
Here are the 11 steps to conducting marketing research, but note that not all marketing
research follows these steps.

1. Establishing the need for marketing research

This could seem basic but is in fact fundamental to conducting marketing research.
Research takes time and money. Marketing research is not needed when information is
readily available (this could be through secondary data), when there is not enough time to
conduct a proper research study and answers are needed immediately, when you can afford
the What Is It research or when the costs outweigh the value. It could also simply be that the
answer is obvious.

2. Defining the problem

According to the authors, this is by far the most important step. If the problem is
incorrectly defined, all is wasted effort. Marketing research should only be conducted to

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answer a problem. There are also needs to be alternatives. If there are no alternatives, no
decision is necessary.

3. Establishing research objectives

Objectives tell a researcher exactly what he or she should be looking for and what he
or she must do to obtain the information necessary to allow the manager to choose between
the decision and the alternatives.

4. Determining research design

o Exploratory research: informal search to learn more about the research problem, learn
terms and definitions or identify opportunities
o Descriptive research: most basic; used to describe the marketing phenomena
o Causal research: uncover factors that cause on event

5. Identifying information types and sources

o Primary: information collected specifically for the problem at hand
o Secondary: information already collected

6. Determining methods of accessing data

This can be done through observing consumers, surveys, online etc.

7. Designing data collection forms

Designing the form in which data will be collected. It can be a questionnaire or an
observation form.

8. Determining sample plan and size

Sample plan: describes how each sample element is to be drawn from the total
population Sample size: how many elements of the population should be used to make up the
sample

9. Collecting data
Non-sampling errors in data are likely to occur and researchers need to know the
sources of these errors to implement controls to minimize them.

10. Analyzing data

Data analysis involves entering data into computer files, inspecting data for errors,
and running tabulations and various statistical tests.

11. Preparing and presenting the final report

It is important that it is not overstated as it is the report that properly communicates
the results to the client.

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Making Marketing Research-based Decisions

Marketing research reports include a lot of information that can aid organizations in
making effective marketing decisions, rather than resorting to unsupported “gut feel”
decisions. Some examples of reports and the marketing decisions they can support are:
• External factors research - The information from these researches helps
marketers identify macro-environmental shifts. These are bases in pinpointing
opportunities and
• Observation research - This is an invaluable aid in determining consumer
behavior. It assists marketers in determining the retail shelf placement strategy
to use. It also
• Test marketing - Based on test marketing results, the company shall gauge
thereveals the effectiveness of point-of-purchase collateral materials.
acceptability of a proposed product/service. The company can, have the
opportunity to re-calibrate elements in the marketing mix and to measure their
effects on consumer demand and overall satisfaction. Its finding can result in
the discontinuance of a proposed product/service if results indicate a general
lack of
• Target market studies - These help identify, quantify, and understand the
target market better. Companies may decide to redefine its target market by
including characteristics the market should possess
• Concept, product development, and product studies- Using the results
generated by concept, product development, and product studies, marketing
organizations shall select the proposed product/service concepts that have the
highest level of market acceptance. It can also be used to decide on the
packaging, to determine the market acceptance. It can also be used to decide
on the packaging,
• Pricing tests - Pricing tests can be utilized by marketers to calculate a
product’s or service’s optimal price, to determine price elasticity, or to
determine how price adjustment can effect total demand for the product or
service.
• Location studies – Location studies determine ideal retail store locations and
is a valuable tool in site selection.
• Advertising pre- and post-testing - These tests can determine
advertising copy effectiveness, advertising recall, sales promotion
response rates, outdoor advertising traffic results, and the
effectiveness of public relations media placement. A
product’s/service’s advertising theme or message and the
mechanics of consumer sales promotions can be adjusted based on
these results.
• Usage, attitude, and image studies - These studies can provide cost-
effective ways on how to increase a product’s/ service’s awareness level and

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 brand trial. In addition, the results can reveal product usage and allow the
company to develop strategies to increase usage frequency. The effectiveness
of current distribution outlets can be ascertained. This can help in determining
if distribution outlets can be ascertained. This can help in determining if
distribution should be expanded or alternate distribution outlets should be
developed. Finally, product/service purchase drivers can be quantified to
calibrate its value offer effectively (So, R.C and Torres, O.G. 2016, 15-55).

’s More

Task 3

Direction: Read the following statement. Complete the table below. Accomplish this on your
notebook.

Design a cost-effective plan for observing how people buy for their basic needs in your
locality. Remember that cost is a primary concern.

Define the buyer (i.e., male/female, socio-

economic class, general location, when do
they shop, etc.)
Based on the above, define or identify the
goods that you observed. Make sure that there
will be no bias in your selection process.
Describe how you would determine your
observation strategy. Will you observe
anyone and everyone in the selected stores?
How would you minimize bias in your
observation process?

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 I Have Learned

Direction: Write a short reflection on your notebook.

I thought

I learned that

I Can Do

Task 4
Directions: Give what is being asked and write your responses on your activity notebook.

Recall the time you availed of a product or service that is considerably expensive.
What steps did you take before arriving at the decision of making the purchase?

Rubrics
Level of Achievement General Approach Comprehension
Exemplary • Addresses the task. • Demonstrates an accurate and complete
(15 pts quizzes) • States a relevant, justifiable understanding of the task.
answer. • Backs conclusions with data and
• Presents arguments in a logical warrants.
order. • Uses 2 or more ideas, examples and/or
arguments that support the answer.
Adequate • Does not address the task • Demonstrates accurate but only adequate
(10 pts quizzes) explicitly, although does so understanding of task because does not
tangentially. back conclusions with warrants and data.
• States a relevant and justifiable • Uses only one idea to support the answer.
answer. • Less thorough than above.
• Presents arguments in a logical
order.
Needs Improvement • Does not address the task. • Does not demonstrate accurate
(5 pts quizzes) • States no relevant answers. understanding of the task.
• Indicates misconceptions. • Does not provide evidence to support
• Is not clearly or logically their answer to the task.
organized.
No answer (0 pts)

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I. Multiple Choice: Identify what is asked in each item. Write the letter of the
correct answer in your notebook.
1. It allows a company to discover the target market and get opinions and other feedback
from consumers about their interest in the product or service.
A. Marketing C. Market survey
B. Market research D. Research
2. What is your analysis on the following statements?
Statement I: The value of the product to the consumer is easy to measure
because perceptions of the value are subjective.
Statement II: Marketing research can be used to identify marketing
opportunities and problems, generate and evaluate potential marketing
actions or plans, monitor marketing performance and improve
marketing as a process.
A. Only Statement II is true C. Both Statements are true
B. Only Statement 1 is true D. Both Statements are false
3. There are issues that can be addressed by marketing research. Which of the following is
not?
A. Identify viable new products and services
B. Evaluate the results of packaging, brand name, and label testing
C. Pre-test and post-test advertising and promotional campaigns
D. None of these

For items 4 – 14. Arrange the steps in conducting marketing research in chronological order.
Preparing and presenting the final report
Establishing the need for marketing research
Collecting data
Determining sample plan and size
Analyzing data
Determining research design
Identifying information types and sources
Determining methods of accessing data
Establishing research objectives
Designing data collection forms
Defining the problem

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II. Essay. Answer what is asked.

15 – 20. What are the importance of marketing research? Cite at least three.

Reflection

Complete the following statements. Write your statements in your activity notebook.

1. Why is marketing research important for business owners?

2. In what ways can marketing research help you as a consumer? Explain