PRINCIPLE OF MARKETING

Market Research
 MARKETING RESEARCH
- It is the process of planning, collecting, and
analyzing data relevant to a marketing decision.

- Its results are communicated to the

management in able to create a business strategy.
 IMPORTANCE OF MARKETING
RESEARCH
- Identify viable new products and services.
- Enable risk reduction
- Identify market opportunities and threats
- Determine the level of customer satisfaction
- Anticipate market trends or changes
- Decide on the best advertising medium
- Undertake location studies
 IMPORTANCE OF MARKETING
- Pre-test and RESEARCH
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
MARKETING RESEARCH PROCESS
STEP 1: Research need determination
- The problem situation has to be assessed initially to
determine if marketing research is needed at all.

- Marketing research is a costly, lengthy and tedious

process that it may become worthless if results are not
delivered to the decision maker on time.
STEP 2: Problem / Opportunity Definition
- Both problems and
opportunities can be subjects of
marketing research.

- Problem/opportunity must be
defined in precision
STEP 3: Establishment of research objectives

- The research objectives

must be specific, clear,
detailed, yet concise.
STEP 4: Research design determination
MAJOR TYPES OF MARKETING RESEARCH DESIGN:
1. Observational – social phenomenon is observed in
its natural setting.

2. Experimental – laboratory experiments and test

marketing; usually results from two sets of samples are
compared.
STEP 4: Research design determination
MAJOR TYPES OF MARKETING RESEARCH DESIGN:
3. Qualitative – includes focus groups, in-depth
interviews, and projective techniques.
– uses only a small number of respondents
Projective techniques allow respondents to project
their subjective or true opinions and beliefs onto other
people or even objects.
STEP 4: Research design determination
MAJOR TYPES OF MARKETING RESEARCH DESIGN:
4. Quantitative – use of surveys
– used to test observations
– respondents is relatively large and randomly
selected, and results are generally reflective of
the population
STEP 5: Information source / type identification
BASIC TYPES OF INFORMATION:
1. Primary Information – refers to data gathered by the
researcher himself/herself
– timely and relevant, but costly and time
consuming
STEP 5: Information source / type identification
BASIC TYPES OF INFORMATION:
2. Secondary Information – acquired from previously
conducted researches, journals, periodicals, and other
similar resources
– relatively easy and inexpensive
– examples are economic, macroeconomic, and
industry data.
STEP 6: Determination of data access methods
MOST POPULAR WAYS OF DATA ACCESS:
1. Person-administered surveys – administered
through face-to-face or telephone interviews.
2. Computer-administered surveys – faster method of
data access; real-time information is generated.
3. Self-administered surveys – respondents complete
the surveys on their own.
4. Hybrid surveys – multiple data methods
– complex to develop and administer
STEP 7: Data collection forms design
- Survey questionnaire must be carefully and
meticulously prepared in order to get accurate data.
- A typical survey has the following parts:
1. Introduction
2. Screening
3. Core
4. Classification
STEP 7: Data collection forms design
1. Introduction – greeting, researcher introduction an
affiliation, purpose, and a statement assuring the
respondent of confidentiality / anonymity.

2. Screening – series of questions designed to eliminate

respondents who are not qualified to take part in the
survey.
STEP 7: Data collection forms design
3. Core – body of the survey questionnaire

4. Classification – questions used to classify

respondents into different groups for stratification an
analysis purposes.
TYPES OF QUESTIONS USED IN QUESTIONNAIRES:
1. Categorical response questions
Dual Choice – either “yes” or “no”
Multiple Choice – three or more choices of
answers
2. Open-ended questions – respondent can answer
questions in his/her own words.
3. Metric questions – require respondents to answer
using number on a scale developed by the researcher.
STEP 8: Sample size and sampling plan determination
OPTIONS:
1. Do Census – giving questionnaires to every member
of the target population
2. Get a Sample Size – technically tells how many
people should be included in the sample.
SAMPLING METHODOLOGY
1. Non-Probability Sampling – all members of the
survey do not have equal chances of being selected to
be part of the sample.

2. Probability Sampling – utilizes the principle of

randomness.
NON-PROBABILITY SAMPLING
1. Convenience Sampling – researcher selects relatives,
friends, and/or classmates.
2. Judgement Sampling – researcher gives survey
questionnaire to individuals who in his/her judgement,
are qualified to participate in the survey.
3. Referral Sampling – researcher asks initial
respondents to provide other qualified respondents for
the
4. survey.
Quota Sampling – researcher specifies the
proportions of various classifications to be included in
NON-PROBABILITY SAMPLING
4. Quota Sampling
Example:
A researcher chose ……
11 males out of 120 males
10 females out of 100 females
9 children out of 150 children
PROBABILITY SAMPLING
1. Simple Random Sampling – researcher selects
survey respondents at random.
PROBABILITY SAMPLING
2. Systematic Sampling – researcher selects
respondents using sample frame, a random starting
point, and a skip interval.
Sample Frame – a list of all members of the
survey population.
Skip Interval – calculated interval (between
respondents to answer the questionnaire)
PROBABILITY SAMPLING
2. Systematic Sampling
PROBABILITY SAMPLING

3. Cluster Sampling –
random sampling is done on a
population of clusters therefore,
a cluster/subgroup is considered
a sampling unit
PROBABILITY SAMPLING

4. Stratified Sampling –
Elements within each stratum
are sampled.
STEP 9: Data collection
- Questionnaires are administered to the selected
respondents.
POSSIBLE PROBLEMS IN DATA COLLECTION
1. Fieldworker error – erroneous recording of
respondent responses.
2. Break offs – a respondent decides to abandon the
survey at midpoint
STEP 9: Data collection
- Questionnaires are administered to the selected
respondents.
POSSIBLE PROBLEMS IN DATA COLLECTION
3. Item omission – a respondent does not answer a
particular survey question but continues to answer the
rest of the questions.
4. Refusal – a potential respondent refuses to be a
participant in the survey.
STEP 10: Data analysis
- Collected data are summarized and generalized.
- Uses some statistical tools in data analysis such as
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
- Preparation and presentation of the report findings,
interpretations, conclusions, and recommendations to
the marketing decision makers – will serve as basis for
strategic or tactical decisions.
- Includes tables, graphs, and charts for the user to
visualize the results and findings.
EXAMPLES OF MARKETING RESEARCH
External factor research – helps understand
microenvironmental shifts.
Observation research – determines consumer behavior
Test marketing – gauge acceptability of the proposed
products.
Location studies – tool for site selection
EXAMPLES OF MARKETING RESEARCH
Test market studies – helps identify, quantify, and
understand the target market better.
Concept, product development, and product studies –
helps decides on the product design

Usage, studies, and image studies – helps increase

product awareness level and brand trial
Choose the letter of the correct answer.
1. This refers to data gathered by the researcher
himself/herself.
a. Primary information
b. Secondary information
c. Stratified data
d. Basic data
e. Graphical data
Choose the letter of the correct answer.
2. This is a type of sampling when the researcher
arbitrarily selects relatives, friends, and/or colleagues.
a. Judgement sampling
b. Quota sampling
c. Cluster sampling
d. Stratified sampling
e. Convenience sampling
Choose the letter of the correct answer.
3. It is a type of survey question that requires a
respondents to answer using number on a scale.
a. Metric question
b. Categorical question
c. Dual choice question
d. Multiple choice question
e. Open-end question
Choose the letter of the correct answer.
4. All are examples of marketing research EXCEPT:

a. External factor research

b. Location studies
c. Observation research
d. None of the above
e. All are marketing research
Choose the letter of the correct answer.
5. What is the last step of the marketing research
process?
a. Data collection
b. Data analysis
c. Report preparation and presentation
d. Research need determination
e. Problem identification