TYPES OF MARKETING

RESEARCHES

Julieta A. Delos Reyes

Agricultural and Applied Economics 121
2nd Semester 2018-2019
SESSION OBJECTIVES
At the end of the lecture, the students should be able to :
1. understand the difference between problem-solving and
problem-identification marketing researches; and
2. Discuss the different type of problem-solving and
problem-identification marketing researches
TYPES OF PROBLEM-IDENTIFICATION
RESEARCHES
Market Potential Research
A type of marketing research which estimates the amount
of money a producer expects to make from the product or
service to be offered

Market potential is the highest estimated net revenue a

producer realizes from his/her enterprise
TYPES OF PROBLEM-IDENTIFICATION
RESEARCHES
Steps in Estimating Market Potential
1. Define the market segment (target market)
2. Define the geographic boundaries of the market
3. Identify the competitors
4. Determine the total market size
5. Estimate the market share (covering costs and own salary)
6. Determine the average annual consumption
7. Estimate an average selling price
TYPES OF PROBLEM-IDENTIFICATION
RESEARCHES
Market Share Research
 A type of marketing research which estimates the percentage of a
market accounted for by each business expressed either in number of
units sold or revenue
 Market share is the portion of the total market demand a producer wants
to capture
“guesstimate”
 Determine the share of the market that must be captured to achieve
break-even and get more to obtain profit
TYPES OF PROBLEM-IDENTIFICATION
RESEARCHES
Image Research
 A type of marketing research which analyzes the image of a
brand, product or company
Studies consumer perceptions of the firm and its products
Image measurement compares the customers’ and non-
customers’ perceptions of the firm with the firm’s perceptions
of itself and thus identify perceptual gaps
e.g., brand, product, or company image studies
TYPES OF PROBLEM-IDENTIFICATION
RESEARCHES
Market Characteristics Research/Market Studies
 Describe the size of the market, buying power of the
consumers, availability of distributors, and consumer profiles

 Give an idea as to take advantage of the consumers and their

choices and buying power
TYPES OF PROBLEM-IDENTIFICATION
RESEARCHES
Sales Analysis Research
 A type of marketing research which analyzes sales by
geographic region, product line, type and size of the
account
 e.g. CARAGA Region as main consumer of corn in the
country.
TYPES OF PROBLEM-IDENTIFICATION
RESEARCHES
Forecasting and Trends Analysis Research
 A type of marketing research which projects marketing
data and analyzes their trends
 Assumes that the same trend will be followed for the
succeeding periods
 One limitation is unavailability of time-series data with
appropriate aggregation.
TYPES OF PROBLEM-IDENTIFICATION
RESEARCHES
Industry Analysis Research
 Profit margin varies between industries due to differences
in industry structure
 Porter’s Five Forces
1. Supplier Power – supplier concentration, importance of volume to
supplier, differentiation of inputs, impact of inputs on cost or
differentiation, switching costs of firms in the industry, presence of
substitute inputs, threat of forward integration, and cost relative to
total purchases in industry
TYPES OF PROBLEM-IDENTIFICATION
RESEARCHES
Industry Analysis
 Porter’s Five Forces
2. Threat of New Entrants (Barriers to Entry) – absolute cost advantages,
proprietary learning curve, access to inputs, government policy, economies
of scale, capital requirements, brand identity, switching costs, access to
distribution, expected retaliation, and proprietary products
3. Buying Power – bargaining leverage, buyer volume, buyer information,
brand identity, price sensitivity, threat of backward integration, product
differentiation, buyer concentration vs industry, substitutes available, and
buyers’ incentives
TYPES OF PROBLEM-IDENTIFICATION
RESEARCHES
Porter’s Five Forces
4. Threat of Substitutes – switching costs, buyer inclination to
substitute, and price-performance trade-off of substitutes

5. Degree of Rivalry – exit barriers, industry concentration, fixed

costs/value added, industry growth, intermittent overcapacity,
product differences, switching costs, brand identity, diversity of
rivals, and corporate stakes
TYPES OF PROBLEM-SOLVING RESEARCHES
 A type of marketing research which identify the groups of
consumers with relatively homogeneous perceptions upon
positioning the brands and consumers in the same space
 e.g., benefit segmentation study

 Market Segmentation
 Process of identifying and separating a total market based on
certain consumers’ characteristics and behaviors so that different
marketing strategies can be used for each segment
TYPES OF PROBLEM-SOLVING RESEARCHES
Variables Used in Market Segmentation
 Geographic location
a. By country
b. By island group and region
c. By province, municipality/city, and barangay
d. Rural vs urban
e. Warm vs cold
TYPES OF PROBLEM-SOLVING RESEARCHES
Variables Used in Market Segmentation
 Demographic variables
a. Age g. Occupation
b. Gender h. Education
c. Family size i. Religion
d. Civil status j. Generation
e. Income k. Nationality
f. Race and ethnicity
TYPES OF PROBLEM-SOLVING RESEARCHES
Variables Used in Market Segmentation
 Psychographic variables
a. Social class
b. Activities and Interests
c. Opinions
d. Personality (compulsive, filial, outgoing, authoritarian,
ambitious)
e. Lifestyle (achievers, strivers, survivors)
TYPES OF PROBLEM-SOLVING RESEARCHES
Variables Used in Market Segmentation
 Behavioral variables
a. Occasions (regular, special)
b. Benefits (quality, service, economy, convenience, speed)
c. User status (non-user, ex-user, potential user, first-time user, regular user)
d. User rates (light, medium, heavy)
e. Loyalty status (none, medium, strong, absolute)
f. Readiness stage (unaware, aware, informed, interested, desirous, intending to
buy)
g. Attitude toward product (enthusiastic, positive, indifferent, negative, hostile)
TYPES OF PROBLEM-SOLVING RESEARCHES
Product Research
1. New Product Development Study
 Evaluation of new product concepts and existing brands on a
test basis to determine how consumers perceive the new
concepts
 Proportion of preferences for each new product is one indicator
of its success
2. Product Usage Studies
Describe consumption patterns
TYPES OF PROBLEM-SOLVING RESEARCHES
Pricing Research
 Pricing Studies
 Describe the range and frequency of price changes (i.e., price
analysis) and probable consumer response to proposed price
changes (i.e., price sensitivity study)
TYPES OF PROBLEM-SOLVING RESEARCHES
Promotion and Advertising Research
1. Promotion Research
A type of marketing research which analyzes how promotion strategies
help the achieve marketing objectives of a firm

2. Advertising Studies
Describe media consumption habits and audience profiles for specific
television programs and magazines

3. Advertising Evaluation Study

Assess the effectiveness of advertising using print and broadcast media
TYPES OF PROBLEM-SOLVING RESEARCHES
Distribution and Logistics Research

 Distribution Studies
 Determine traffic flow patterns and the number of location of
distributors
 Determine the fastest route
 Analyze which is better, fastest vs. cheapest route
 Hire vs. owning vs. leasing
END OF LECTURE 8
SELECTED REFERENCES

Brohado, A. 2004. 2004. Measurement and Scaling II. Lecture for LCE 508
(Market Research). Downloaded for fep.up.pt
Easwaran, S. and S.J. Singh. 2013. Marketing Research: Concepts, Practices
and Cases. Oxford University Press
Malhotra