Introduction to

Marketing Research
Why Marketing Research
The suppliers of products and services need to
have information about final consumer, to
market their products and services effectively
As the company grows managers find
themselves more separated from the final
consumer of the products
The American Marketing
Association
Marketing research is the function which
links the consumer, customer, and public to
marketer through information
Information used to identify and define marketing
opportunities and problems
Information generate, refine, and evaluate marketing
actions
Information monitor marketing performance
Information improve understanding of marketing as a
process
Reasons for Doing Marketing Research: The Five Cs
1. Customers: To determine how well customer
needs are being met, investigate new target
markets, and assess and test new services and
facilities.
2. Competition: To identify primary competitors
and pinpoint their strengths and weaknesses.
3. Confidence: To reduce the perceived risk in
making marketing decisions.

Reasons for Doing Marketing Research: The Five Cs
4. Credibility: To increase the believability of
promotional messages among customers.
5. Change: To keep updated with changes in travelers
needs and expectations.
Five Key Requirements of Marketing Research
Information

1. Utility: Can we use it? Does it apply to us?
2. Timeliness: Will it be available in time?
3. Cost-effectiveness: Do the benefits outweigh the
costs?
4. Accuracy: Is it accurate?
5. Reliability: Is it reliable?
Marketing Research Programs and Projects
Marketing Research Program:
A plan or program to investigate several marketing
opportunities or problems (several projects).

Marketing Research Project:
An individual element of a marketing research
program in which a specific marketing opportunity or
problem is investigated.

Definition of MR
Marketing Research is the systematic and
objective identification, collection, analysis,
dissemination, and use of information for the
purpose of improving decision making
related to the identification and solution of
problems and opportunities in marketing
Kinds of research undertaken
Practically every company (99%) used MR to
measure market potential, characteristics of their
market, and their share of markets
More than 90% of the companies undertook MR to
obtain information that could help them make short-
range and long-range forecasts
More than 90% of the companies used MR to
evaluate new-product opportunities and acceptance,
and to test existing products relative to competitors
products
Approximately three fourths of the consumer
products companies and more than half of the
industrial companies undertook some form of
marketing research to help them make better
advertising decision
A Classification of Marketing
Research
Marketing Research
Problem
Identification research
Problem
Solving research
Market potential research
Market share research
Market characteristics research
Sales analysis research
Forecasting research
Business trends research
Segmentation research
Product research
Promotion research
Distribution research
Problem Solving Research
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
Problem Solving Research (cont.)
Product Research
Test concept
Determine optimal product line
Package tests
Product modification
Brand positioning and repositioning
Test marketing
Control score test
Problem Solving Research (cont.)
Pricing Research
Importance of price in brand selection
Pricing policies
Product line pricing
Price elasticity of demand
Initiating and responding to price changes
Problem Solving Research (cont.)
Promotional Research
Optimal promotional budget
Sales promotional relationship
Optimal promotional mix
Copy decisions
Media decisions
Creative advertising testing
Claim substantiation
Evaluation of advertising effectiveness
Problem Solving Research (cont.)
Distribution Research
Types of distribution
Attitudes of channel members
Intensity of wholesale &resale coverage
Channel margins
Location of retail and wholesale outlet
The Nature of Marketing Decisions
Recurring or routine decisions
Non recurring or less frequent decision
Process of Decision Making
Need for taking decision
Define specific area of decision making
Identify alternative courses of action
Evolve criteria for decision making
Evaluate alternative on the criteria
Select the most suitable alternative
implement
Marketing Research Process
Step 1: Problem identification
Step 2: development of an Approach to the
problem
Step 3: Research Design Formulation
Step 4: Fieldwork or Data Collection
Step 5: Data Preparation and Analysis
Step 6: Report Preparation and Presentation
Marketing Research Process
1. Formulate Problem:
a. Define research problem
b. Identify research objectives and related questions
2. Select Research Design And Data Collection
Method:
a. Collect and analyze secondary information
b. Select research design and primary data collection method


Marketing Research Process
3. Select Sample And Collect Data:
a. Decide on sample design and collect primary data
4. Analyze And Interpret Data
a. Analyze and interpret primary data
5. Prepare Research Report:
a. Draw conclusions and make recommendations
6. Communication of the Research Results
a. Present results to all interested parties


The Role of Marketing Research
Marketing
research
Controllable
Marketing
variables
Customer group
Consumers
Employees
Shareholders
Suppliers
Assessing
Information
need
Providing
information
Marketing
Decision
making
Marketing managers
Market segmentation
Target market selection
Marketing programs
Performance & control
Uncontrollable
Environmental
factors
Economy
Technology
Laws & regulation
Social & cultural Factors
Political factors
Product
Pricing
Promotion
Distribution
Role of Research in Marketing
Decision Making
Improving the understanding of marketing
context
Improving the understanding of nature of
decision making
Improving the process of decision making
MR suppliers & service
Research
suppliers
External
Internal
Full service
Syndicate
services
Standardized
services
Customized
services
Internal
services
Limited service
Field
services
Coding and
Data entry
services
Analytical
services
Data
Analysis
services
Branded
Product &
services
MR suppliers & service
Syndicated Service collect information of
known commercial value that they provide to
multiple clients on a subscription basis
Standardized service are research studies
conducted for different client firms but in a
standard way
Customerized services offer a wide variety
of marketing research services customized to
suit a clients specific needs


Internet service- are offered by several
marketing research firms including some who
have specialized in conducting marketing
research on the internet

Limited service suppliers
Field service collect data through mail,
personal, or telephone interviewing, and firms
that specialized in interviewing are called field
service organizations
Coding and data entry services include
editing completed questionnaire, developing a
coding scheme, and transcribing the data onto
diskettes or magnetic tapes for input into the
computer


Limited service suppliers
Analytical service including designing and
pretesting questionnaires, determining the best
means of collecting data, designing sampling
plans and other aspects of the research design
Data analysis service
Branded marketing research products-
The Role of Marketing Research in
MIS and DSS
Marketing information system is a
formalized set of procedures for generating,
analyzing, storing, and distributing information
to marketing decision makers on an ongoing
basis
MIS DSS
Structured Problems Unstructured Problems
Use of Reports Use of Models
Rigid Structure User-Friendly Interaction
Information Display
Restricted
Adaptability
Can Improve Decision
Making by Clarifying Raw
Data
Can Improve Decision
Making by Using What
If Analysis
Development of Research Questions
& Hypotheses
Components of the
MR Problem
Research Question
Hypotheses
Objective/
Theoretical
Framework

Analytical
Model
A Classification of MR Designs
Research Design
Exploratory
Research design
Conclusive research
design
Descriptive
research
Causal
research
Cross-Sectional
design
Longitudinal
design
Single cross
Sectional design
Multiple cross-
Sectional design