CHAPTER: INTRODUCTION TO

MARKETING RESEARCH

Topics to be covered:
Definition of Marketing Research
A Classification of Marketing Research
The Marketing Research Process
The Role of Marketing Research in Marketing Decision Making
Marketing Research and Competitive Intelligence
Decision to Conduct Marketing Research
The Marketing Research Industry
Selecting a Research Supplier
The Role of Marketing Research in MIS and DSS
DEFINITION OF MARKETING RESEARCH
 Marketing research (MR) 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.

 Several aspects of this definition are noteworthy:

 Marketing research is systematic.
 It is objective and should be conducted impartially.
 It involves the identification, collection, analysis, dissemination,
and use of information.
A CLASSIFICATION OF MARKETING RESEARCH

 The following figure illustrates a classification of marketing

research:
(CONTINUED…)
 Problem-Identification Research: Research
that is undertaken to help identify problems that
are not necessarily apparent on the surface and
yet exist or are likely to arise in the future.

 Problem-Solving Research: Research

undertaken to help solve specific marketing
problems.
THE MARKETING RESEARCH PROCESS

 We conceptualize the marketing research

process as consisting of the following six steps:
 Problem Definition
 Development of an Approach to the Problem
 Research Design Formulation
 Fieldwork or Data Collection
 Data Preparation and Analysis
 Report Preparation and Presentation
THE ROLE OF MARKETING RESEARCH IN
MARKETING DECISION MAKING
 The nature and role of marketing research can be better understood in
light of the basic marketing paradigm given in the following figure:
MARKETING RESEARCH AND
COMPETITIVE INTELLIGENCE
 Competitive Intelligence (CI) may be defined as the
process of enhancing marketplace competitiveness
through a greater understanding of a firm’s competitors
and the competitive environment. This process is
unequivocally ethical.
 CI is a crucial part of the emerging knowledge economy.
By analyzing rivals’ moves, CI enables companies to
anticipate market developments rather than merely react
to them.
THE DECISION TO CONDUCT MARKETING
RESEARCH

 The decision to conduct marketing research

should be guided by the following
considerations:
 Costs versus the benefits
 Resources available to conduct the research
 Resources available to implement the research
findings
 Management’s attitude toward research
THE MARKETING RESEARCH INDUSTRY
 The marketing research industry consists of external suppliers
who provide marketing research services. The following figure
illustrates various marketing research suppliers and services:
SELECTING A RESEARCH SUPPLIER
 When developing criteria for selecting an outside
supplier, a firm should keep the following basics in
mind:
 What is the reputation of the supplier?
 Do they complete projects on schedule?
 Are they known for maintaining ethical standards?
 Are the flexible?
 Are their research projects of high quality?
 What kind and how much experience does the supplier have?
 Has the firm had experience with projects similar to this one?
 Do the supplier’s personnel have both technical and
nontechnical expertise?
THE ROLE OF MARKETING
RESEARCH IN MIS AND DSS
 The information obtained through marketing
research and sources such as internal records
and marketing intelligence becomes an integral
part of the firm’s marketing information system
(MIS).
(CONTINUED…)
 MIS is a formalized set of procedures for
generating, analyzing, storing, and distributing
information to marketing decision makers on an
ongoing basis. MIS is limited in the amount and
nature of information it provides and the way
this information can be used by the decision
maker. This is because the information is rigidly
structured and cannot be easily manipulated.
(CONTINUED…)
 Developed to overcome the limitations of an
MIS, decision support systems (DSS) enable
decision makers to interact directly with
databases and analysis models. Decision support
systems (DSS) are integrated systems including
hardware, communications networks, database,
model base, software base, and the DSS user
(decision maker) that collect and interpret
information for decision making.
(CONTINUED…)
 The following table identifies how a DSS differs from an MIS:

MIS DSS
Structured Problems Unstructured Problems

Use of Reports Use of Models

Rigid Structures User-Friendly Interaction

Information Displaying Restricted Adaptability

Can Improve Decision Making by Can Improve Decision Making by

Clarifying Raw Data using “What If” analysis
THANK YOU!