11

Principles of
Marketing
Quarter 4 – Module 7:
Defining Marketing Research, its
Importance and Identifying the
Steps in Marketing Research

REGION VI - WESTERN VISAYAS

Principles of Marketing – Grade 11 Alternative Delivery Mode Quarter 4– Module 7:
Defining Marketing Research, its Importance and Identifying the Steps in Marketing
Research First Edition, 2021

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Development Team of the Module

Writer: Helen Grace T. Bellardo, Windee C. Nuñal
Editors: Ma. Teresa F. Mijares
Management Team:
Mar sette D. Sabbaluca, CESO VI
Ly nee A. Peňaflor, PhD., ASDS
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Raulito D. Dinaga, EPS-LRMS
Ma. Teresa F. Mijares, EPS-Math Othelo
M. Beating, PDO-II-LRMS

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 11

Principles of
Marketing
Quarter 4 – Module 7:
Defining Marketing Research, its
Importance and Identifying the
Steps in Marketing Research

This instructional material was collaboratively developed and

reviewed by educators from public and private schools, colleges, and
or/universities. We encourage teachers and other education stakeholders to
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s to the Department of
Education action@deped.gov.ph
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We value your feedback and recommendations.

Introductory Message
For the facilitator:

Welcome to the Principles of Marketing Alternative Delivery Mode (ADM) Module on Defining
Marketing Research, its Importance and Identifying the Steps in Marketing Research!

This module was collaboratively designed, developed and reviewed by educators both from
public and private institutions to assist you, the teacher or facilitator in helping the learners
meet the standards set by the K to 12 Curriculum while overcoming their personal, social,
and economic constraints in schooling.

This learning resource hopes to engage the learners into guided and independent learning
activities at their own pace and time. Furthermore, this also aims to help learners acquire the
needed 21st century skills while taking into consideration their needs and circumstances.

In addition to the material in the main text, you will also see this box in the body of the
module:

Notes to the Teacher

This contains helpful tips or strategies that will
help you in guidinglearners.
the

As a facilitator, you are expected to orient the learners on how to use this module. You also
need to keep track of the learners' progress while allowing them to manage their own
learning. Furthermore, you are expected to encourage and assist the learners as they do the
tasks included in the module.

For the learner:

Welcome to the Principles of Marketing Alternative Delivery Mode (ADM) Module on Defining
Marketing Research, its Importance and Identifying the Steps in Marketing Research.

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

This module has the following parts and corresponding icons:

What I Need to This will give you an idea of the skills or
Know competencies you are expected to learn in the
module.

2
 What I This part includes an activity that aims to check
Know what you already know about the lesson to take.
If you get all the answers correct (100%), you
may decide to skip this module.

What’s This is a brief drill or review to help you link the

In current lesson with the previous one.

What’s In this portion, the new lesson will be introduced

New to you in various ways; a story, a song, a poem, a
problem opener, an activity or a situation.

What is This section provides a brief discussion of the

It lesson. This aims to help you discover and
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topic. You may check the answers to the
exercises using the Answer Key at the end of the
module.

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what you learned from the lesson.

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Do you transfer your new knowledge or skill into real
life situations or concerns.

This is a task which aims to evaluate your level of

mastery in achieving the learning competency.
Assessment
Additional In this portion, another activity will be given to you
to enrich your knowledge or skill of the
Activities
lesson learned.
This contains answers to all activities in the
module.
Answer Key
At the end of this module you will also find:

References This is a list of all sources used in developing this

module.

The following are some reminders in using this module:

1. Use the module with care. Do not put unnecessary mark/s on any part of the module.
Use a separate sheet of paper in answering the exercises.
2. Don’t forget to answer What I Know before moving on to the other activities included
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5. Finish the task at hand before proceeding to the next.
6. Return this module to your teacher/facilitator once you are through with it.

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If you encounter any difficulty in answering the tasks in this module, do not hesitate to
consult your teacher or facilitator. Always bear in mind that you are not alone.
We hope that through this material, you will experience meaningful learning and gain
deep understanding of the relevant competencies. You can do it!

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 What I Need to Know

As you engage yourself in the study of the Principles of Marketing, it is important to

understand some fundamental marketing concepts and strategies.

The module has only one lesson, namely:

• Lesson 7 – Defining Marketing Research, its Importance and Identifying the Steps in
Marketing Research

After going through this module, you are expected to:

• conduct marketing research, interpret market buying behavior on product or service, and
identify the product or service target market (ABM_PM11-Iei-11).

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 What I Know
Before you start the lesson, perform the activity below to check what you already know about
the lesson to take.

TRUE OR FALSE
Direction: Read each statement below carefully. Place a T on the line if you think a
statement is TRUE. Place an F on the line if you think the statement is FALSE.

1. ___ Open-end questions are questions where options are provided.

2. ___ Primary information is information acquired from previously conducted
researches, journals, and other similar sources.
3. ___ Information collected from company records are called internal data.
4. ___ Non-probability sampling methods utilize the principle of randomness.
5. ___ Focus groups (FGD) is a marketing research tool that involves a large group of
people.
6. ___ Census is a type of survey that gives questionnaires to every member of the
target population.
7. ___ Secondary information refers to data gathered by the researcher for the specific
research problem.
8. ___ Referral sampling is when a researcher arbitrarily selects respondents to be
given survey questionnaires.
9. ___ Person-administered surveys could either be administered through telephone
interviews.
10. ___ Location studies determine ideal retail store locations and are a valuable tool in
site selection.

Defining Marketing
Lesson
Research, its Importance
7 and Identifying the Steps in
Marketing Research

What’s In
In your previous lesson, you learned the different elements that influence marketing
planning. As a marketer, the expectation for you is to be proficient in identifying the
strengths, weaknesses, opportunities, and threats of your organization to better plan and
strategize. Accomplish the activity below to assess what you have learned so far.

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SWOT ANALYSIS
Direction: Identify if the following statements are Strengths, Weaknesses, Opportunities, or
Threats.
- Patented technology - Competition - Untapped market - High Cost
- Existing customer base - Lack of funding - Price erosion - Fast growth
STRENGHTS WEAKNESSES

OPPORTUNITIES THREATS

What’s New
Why does marketing research matter? Because no one has all the answers all the time.
Because people and attitudes and behaviors change. Because customers, competitors, the
economy, and other factors can all affect your success. Marketing is an increasingly datarich
field, and doing it well means using all the information you can to gain insights into what your
customers want and how you can give them value. Without that information, you’re trying to
shoot a target in the dark.
In this module, you will learn marketing research – one of the tools that organizations use to
understand what is happening in the markets they serve.

What is It
Marketing Research is a function under the Marketing Information System (MIS) of a
business organization. It is in charge of the acquisition and evaluation of the market and
consumer-based information for decision making to assist in marketing strategic direction.

Importance of Marketing Research

Most companies have complete information about their product from the production stage to
its distribution to the market. But it is a challenge to know what happens to the product after
it is purchased. Who uses the product, how it is used, how much or how little of it is used,
and the general attitudes of the consumer toward the product are not known explicitly.
Consequently, for new products, companies are not always confident in their market
acceptance. The value of the product is difficult to measure because perceptions are
subjective.

For this reason, marketing research is essential despite being expensive. It can address the
following issues that companies often encounter:
• Recognize feasible new products and services
• Facilitate risk reduction
• Categorize market opportunities and threats
• Measure the level of customer satisfaction
• Determine and anticipate trends or changes in the market
• Adopt the best advertising medium
• Pre-test and post-test advertising and promotional campaigns
• Gauge the results of test marketing

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 • Appraise the outcome of packaging, brand name, and label testing
• Determine consumer price awareness and sensitivity
• Carry out location studies
Steps in the Marketing Research Process
The diagram below illustrates the marketing research process:

Research need Problem/opportunity Establishment of Research design

determination definition research objectives determination
(1) (2) (3) (4)

Sample size and Determination of Information

Data collection
sampling plan data access sources/types
forms design
determination methods identification
(7)
(8) (6) (5)

Report preparation
Data collection Data analysis
and presentation
(9) (10)
(11)

Step 1: Research needs determination.

An assessment is needed to determine and evaluate the necessity before conducting the
marketing research process to save time, effort, and cost.

Step 2: Problem/opportunity definition.

Problems and opportunities must be defined to set the general research direction and
operational parameters.

Step 3: Establishment of research objectives.

Research objectives aim to gather specific information to address gaps. It must be clear,
detailed, and operational.

Step 4: Research design and determination.

The methods and procedures in the data collection and analysis must be determined. There
are four types of marketing research designs:
1. Observational design. It observes the social phenomenon in its natural setting, and
observations can be made at any one time or regularly within a period.
2. Experimental design. It includes laboratory experiments and test marketing.
3. Qualitative design. It includes focus groups, in-depth interviews, and projective
techniques. This type of research uses only a small number of respondents. Thus,
results are not reflective of the general population.
4. Quantitative design. An example of this type of research is the use of surveys. It
tests observations, and the respondents are relatively large and randomly selected.
The results are generally reflective of the population.

Step 5: Information source/type identification

The type of information used can be primary and secondary information. Primary
information refers to data gathered by the personally by the researcher for the specific
research problem. Conversely, secondary information those acquired from previously
conducted researches, journals, and other similar sources.

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Information can also be sourced from company records called internal data or through
spontaneous and unstructured discussions that involve a small group of people called focus
group discussion (FGD).

Step 6: Determination of data access methods

The most common method of accessing data is through face-to-face or telephone interviews
called person-administered surveys. However, a faster way is a computeradministered
survey which eliminates the need for laborious data tabulation and can generate data in real-
time. A third method is a self-administered survey where the respondents complete the
survey on their own. A fourth method that is complex to develop and administer but delivers
comprehensive insights is a hybrid survey that combines quantitative and qualitative
research.

Step 7: Data collection forms design

The most common form used in data collection is a survey questionnaire with the following
major parts:
• Introduction. It contains a greeting, researcher introduction and affiliation, purpose,
and a statement assuring the respondent of confidentiality/anonymity of their
responses.
• Screening. It is a series of questions designed to eliminate respondents who are not
qualified to take part in the survey.
• Core. It is the body of the survey questionnaire.
• Classification. These are questions used to arrange respondents into groups for
stratification and analysis purposes.
Several types of questions in questionnaires to use:
• Categorical response questions – questions with the provision of options. There
are two types of categorical questions, namely: dual choice, where there are only two
types of answers, usually “yes” or “no,” and multiple-choice, where there are three or
more choices of answers.
• Open-end questions – a respondent can answer these questions in his/her words.
• Metric questions – questions that require respondents to answer using the number
on a scale developed by the researcher. It can be natural, which requires a
numbered response to the property being measure, such as age. They can also be
synthetics, which uses numbers on a scale to measure a specific property, usually 1
to 10.

Step 8: Sample size and sampling plan determination

Ideally, questionnaires are given to every member of the target population to achieve 100%
accuracy in the conduct of a consumer survey. This type is called a census.

For mass-marketed products, however, this could involve a total population of several
million, making it costly, time-consuming, and impractical. A viable alternative to the survey
is to gather only a representative portion of the target population or a sample.

How many people should the sample be, or technically, how large is the sample size? The
sample size is determined using three variables: confidence level, variability, and margin of
error. Variability is usually pegged at 50%. On the other hand, common confidence levels
used in surveys are 90%, 95%, and 99%, while the margin of error may range anywhere
from 2% to 10%. The higher the confidence level and the lower the margin of error, the
larger the sample size becomes.

In practice, common sample sizes are 100 (at a 95% confidence level, 50% variability, and
10% margin of error), 1,068 (usually rounded up to 1,200, at a 95% confidence level, 50%
variability, and 3% margin of error), and 2,401 (at a 95% confidence level, 50% variability,
and 2% margin of error). Usually, when the target population is rather small (example, 600)

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a census is used. Slovin’s Formula can also be used when calculating an appropriate
sample size from a population.

Sample Problem:
Use Slovin’s Formula to find out what sample of the population of 1,000 people you need to
take for a survey on their network preference.

The Slovin’s formula is given by:

𝑁
𝑛= 2)
(1 − 𝑁𝑒
Where: n = Number of samples N = Total population e = Margin of
error
Step 1: Set the confidence level. For example, a confidence level of 95% (which will give it a margin of error of 5% or 0.05).
Step 2: Plug the data into the formula. In this example, the 95% confidence level with a population size of 1,000 is used.

𝑁
𝑛= 2 )
(1 − 𝑁𝑒

𝑛=
𝑛 = 285.714286
Step 3: Round the answer to a whole number
285.714286 = 𝟐𝟖𝟔

After the calculation of the sample size, the sampling plan is determined. Sampling
methodology can either be non-probability or probability-based.

Non-probability sampling does not involve probabilities. All members of the survey
population do not have equal chances of being selected to be part of the sample.

These are types of non-probability sampling:

• Convenience sampling – the researcher arbitrarily selects relatives, friends,
classmates, etc. to be given survey questionnaires.
• Judgment sampling – the researcher gives survey questionnaires to individuals who
are his/her judgment, are qualified to participate in the survey.
• Referral sampling – the researcher asks initial respondents to provide other
qualified respondents for the survey. It is an option when the target survey population
is rather hard to find.
• Quota sampling – the researcher specifies the proportions of various classifications
to include in the survey.

Because non-probability surveys do not involve randomness in the respondent selection,

they are not very reliable, and results are usually not generalizable to the population.

On the other hand, probability sampling methods utilize the principle of randomness.
Randomness is when every member of the survey population has an equal non-zero chance
of being selected as part of the sample. Some types of probability sampling methods are:
• Simple random sampling – when the researcher selects survey respondents so that
each member of the population has an equal chance of being chosen as a sample.
• Systematic sampling – a probability sampling method where the researcher selects
respondents using a sampling frame (a list of all the members of the survey
population), a random starting point, and a skip interval (calculated as sample
population list size/sample size).
• Cluster sampling – sampling method that groups the survey population into
subgroups, each of which represents the entire survey population.
• Stratified sampling – the survey population is divided into sub-groups, and
proportional samples for all the sub-groups are included in the sample using the
principle of randomness.

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Step 9: Data collection
It is the stage in the process where the questionnaires are administered to the selected
respondents. Although seemingly mechanical step, some problems may arise in data
collection such as field worker errors (e.g. erroneous recording of respondent responses),
break-offs (e.g. when a respondent decides to abandon the survey at midpoint), item
omission (e.g. when a respondent does not answer a particular survey question but
continues to answer the rest of the questions), or when a potential respondent refuses to be
a participant in the survey.

Step 10: Data analysis

At this stage, the collected data is summarized and generalized. The differences and
relationships between and among data are determined. Some common statistical tools used
in data analysis are percentage, mean, range, standard deviation, hypothesis tests,
confidence interval, percentage and mean difference tests, cross-tabulation, correlation, and
regression analysis.

Step 11: Report preparation and presentation

The last step in the marketing research process is the preparation and the presentation of
the report findings, interpretations, conclusions, and recommendations to marketing
decision-makers. These serve as a basis for strategic or tactical decisions. To highlight the
credibility of the report, the researcher design utilized, types of secondary data included,
procedures used to collect primary data, the sample size, and sampling process must be
included, procedures used to collect primary data, the sample size, and sampling processes
must be included in the report. Tables, graphs, and charts must be incorporated for the user
to visualize the results and findings.

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 factor research – The information from theses researches helps
researchers identify macro-environmental shifts. These are bases in pinpointing
opportunities and anticipating threats.
• Observation research – This is an invaluable aid in determining consumer behavior.
It assists marketers in determining the retail shelf placement strategy to use. I also
reveal the effectiveness of point-of-purchase
• Test marketing – Based on test marketing results, the company shall gauge the
acceptability of a proposed product/service. The company can have the opportunity
to recalibrate elements in the marketing mix and to measure their effects on
consumer demand and overall satisfaction. Its findings can result in the
discontinuance of a proposed product/service if results indicate a general lack of
interest.
• Target market studies – This helps identify, quantify, and understand the target
market better. Companies may decide to redefine their 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. They can also be a basis to decide on the
packaging, to determine the market reaction, and to justify brand positioning.
• Pricing tests – they 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
affect total demand for the product or service.
• Location studies - they determine ideal retail store locations and are a valuable tool
in site selection.

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 • 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 or
service advertising themes 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 or service awareness level and brand trial. Also,
the results can reveal product usage and allow the company to develop strategies to
increase usage frequency. It can also help in determining if the distribution should be
expanded or the development of an alternative distribution outlet. Finally,
product/service purchase drivers can be quantified to calibrate their value offer
effectively.

What’s More
Solve for the following using Slovin’s Formula.
1. A researcher plans to conduct a survey. If the population is 1,000,000, find the
sample size if the margin of error is 2%.
2. Suppose that you have a group of 5,000 employees and you want to survey them to
find out which tools are best suited to their jobs. You decide that you are happy with a
margin of error of 0.05. How many employees are required to be surveyed?

What I Have Learned

Fill in the Black
Direction: Fill the blanks with the correct answer. Use separate sheet of paper.

1. _________________ is the function responsible for acquiring and evaluating market

and consumer-based information for decision making and the determination of marketing
strategic direction.
2. One the purposes marketing research is to _______ and post-test advertising and
promotional campaigns.

(Questions 3 – 13) The steps in the marketing research process are:

3. Step 1: Establishment of research objectives
___________________ 4. Step 2: Research need determination
___________________ Sample size and sampling plan determination
5. Step 3: ___________________ Determination of data access methods
6. Step 4: ___________________ 7. Research design and determination
Step 5: ___________________ 8. Information source/type identification
Step 6: ___________________ Report preparation and presentation
Data collection forms design
9. Step 7: ___________________
Data analysis
10. Step 8: __________________
Data collection
11. Step 9: __________________ Problem/opportunity definition

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12. Step 10: _________________ 13. Step 11: _________________

14. The formula in computing the sample size using Slovin’s formula is n = ___________.
15. Marketing research reports information that can aid in making effective marketing
decisions, rather than resorting to unsupported _____ decisions.

What I Can Do

Multiples Choice
Direction: Determine the type of questions in the questionnaire below. Write the letter
before the number.
a. Categorical response questions
b. Open-end questions
c. Metric questions
Questions: Response options
___ 1. Have you purchased a new automobile since ___ Yes
January 1st of this year? ___ No

___ 2. If you have purchased a new automobile since Make: __________ Mode:
January 1st, what make and model is it? __________
___ 3. If you have purchased a car since January 1st, ___ Extremely likely
how likely that you will buy a new car sometime ___ Quite likely
before December 31st of this year? ___ Unlikely
___ Extremely unlikely

___ 4. How strongly do you agree with the following Disagree Agree
1 2 3 4 5
statement?
When buying a car, I tend to rely heavily on the
reputation of the car brand.
Text response:
___ 5. If you have not purchased a new automobile
this year, what is the most important reason for your
decision not to buy a new car?
___ 6. Are there any other reasons that you have not Text response:
bought a new car this year?

Assessment

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MULTIPLE CHOICE
Direction: Write the letter of the correct answer in a separate sheet.
1. Which marketing process is a systematic way to link collected and analyzed marketing
information of customer insights with marketing opportunities and solutions to marketing
problems?
a. marketing mix
b. marketing research
c. marketing campaign
d. marketing process

2. A camera company had a system set up to captured their customer’s information

fromcompany interactions. The information included buying behaviors, communication
preferences, gender, geographic location, and age. What is this type of collection of
information called?
a. marketing research
b. competitive intelligence
c. internal data
d. primary data
3. Caroline started doing her marketing research process by identifying the problem of poor
marketing message penetration. What does Caroline need to articulate next?
a. Research need determination
b. Problem/opportunity definition
c. Establishment of research objectives
d. Research design and determination

4. Source information previously collected from either outside or inside an organization

isknown as:
a. Primary information
b. Secondary information
c. Observational information
d. Internal information

5. Which of these count as data?

a. The number of males and females in a group
b. The number of employees in an organization
c. A tape recorded interview
d. All of these

6. Which of the following is TRUE?

a. Secondary data are more accurate than primary data.
b. The researcher should attempt to gather secondary data before initiating a search for
primary data.
c. Primary data are gathered by the researcher and secondary data by other
researchers.
d. They are all false

7. A quantitative research study aims to achieve all of the following, EXCEPT:

a. test various types of hypotheses
b. make accurate predictions about relationships between market factors and behavior
c. generate sustainable competitive advantages for an organization
d. gain meaningful insights into the relationships between variables

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8. The optimal number of participants for a focus group is: c
a. 1-2 members
b. 3-7 members
c. 8-12 members
d. 12-20 members

9. The basic rule for data collection process is:

a. Begin with primary data, then supplement if needed with secondary data.

b. Begin with secondary data, then proceed if necessary to collect primary data.
c. Always investigate external sources of secondary data first.
d. Design a field experiment to collect primary data.

10. Most conclusive research designs involve qualitative research techniques. a. True
b. False

Additional Activities

Essay Questions. Write your answer in a separate sheet.

1. What are the limitation of marketing research?
_________________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________.
2. Examine the impact of the COVID-19 pandemic in the online selling industry applying the
steps in marketing research.
_________________________________________________________________________
_________________________________________________________________________
________________________________________________________________________.

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References
Curriculum Guide in Principles of Marketing
Most Essential Learning Competencies (MELC) for Principles of Marketing
So, R. & Torres O. Principles of Marketing, 2016. Vibal Group, Inc.

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