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Chapter One

Introduction to Marketing Research

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Definition of Marketing Research

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.

(Naresh Malhotra)

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What is Business Research?

A systematic Inquiry whoseobjective is to provide informationto solve managerial problems.

(Cooper)

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Systematic

1. OrderlinessEx. Sensex at 11 a.m.

-Ex.70 % of survey is done onSaturday and 30 % of survey

on other days of week

2. Impartiality- Ex. Juniors Vs. seniors

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Why Study Research?

Research provides you with theknowledge and skills needed forthe fast-paced decision-makingenvironment

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Factors stimulate scientific approachto decision making

Managers increased need for moreand better information

The availability of improvedtechniques and tools to meet theseneed

Information overload if discipline isnot employed

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Need of Better Information

Global and domestic competition ismore vigorous

Explosive technology growth

Innovation in communication

Trade communication

More variables to consider Question of quality of information

and not quantity of information

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Need of Acquiring Research Skills

To gather more information beforeselecting a course of action

Ex. Dissatisfied customer toldby sales personnel

To do a research study for high-

level executives

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continue..

To understand research design

Ex. Evaluate the proposal from agency

To evaluate and resolve a current

management dilemmaEx. Analyze the past data of organization

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Different Styles of Research

Pure Research/Basic Research:is intended to expand the body ofknowledge in a field or to provide

knowledge for the use of others.Applied Research: is carried on for

the solving of a particular problem

or for guiding a specific decisionand usually its results are private.

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Classification of Marketing Research

Problem/Opportunity Identification Research Research undertaken to help identify problems/

opportunities which are not necessarily apparent on thesurface and yet exist or are likely to arise in the future.Examples: market potential, market share, image,

market characteristics, sales analysis, forecasting, andtrends research.

Problem Solving Research Research undertaken to help solve specific marketing

problems. Examples: segmentation, product, pricing,promotion, and distribution research.

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A Classification of Marketing Research

Marketing Research

Problem/ OpportunityIdentification Research

Problem Solving

Research

Market Potential Research

Market Share ResearchMarket Characteristics ResearchSales Analysis ResearchForecasting Research

Business Trends ResearchControlling & Monitoring

Segmentation ResearchProduct Research

Pricing Research

Promotion Research

Distribution Research

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Problem Solving 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

SEGMENTATION RESEARCH

Determine optimal product design

Package tests

Product modification

Brand positioning and

repositioning

Test marketing

PRODUCT RESEARCH

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Problem Solving Research

PRICING RESEARCH

Pricing policies

Importance of price in brand selection

Product line pricing

Price elasticity of demand

Initiating and responding to price changes

SALE

PROMOTIONAL RESEARCH

Sales promotion relationship

Optimal promotional mix

Copy decisions

Media decisions

Creative advertising testing

Evaluation of advertising effectiveness

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Problem Solving Research

DISTRIBUTION RESEARCH

Determine

Types of distribution

Attitudes of channel members

Intensity of wholesale & resale coverage

Channel margins

Location of retail and wholesale outlets

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Marketing Research Process

Step 1: Problem Definition

Step 2: Development of an Approach to

the Problem: Information

needed,sources of information

Step 3: Research Design Formulation

Step 4: Fieldwork or Data Collection

Step 5: Data Preparation and Analysis

Step 6: Report Preparation and

Presentation

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Characteristics of Good Research?

Purpose clearly defined

Research process detailed

Research design thoroughlyplanned

Limitations frankly revealed

High ethical standards applied

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Characteristics Good Research? (cont.)

Adequate analysis for decision-makers needs

Findings presentedunambiguously

Conclusions justified

Researchers experiencereflected

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The Manager-ResearcherRelationship

Managers obligations Specify problems clearly

Provide adequate background information

Access to company information gatekeepers

Mention time duration and budget Researchers obligations

Develop a creative research design

Provide answers to important business questions

Honesty

Consider time and cost

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Manager-Researcher Conflicts

Managements limited exposure toresearch

Manager sees researcher as threat

to personal status Researcher has to consider

corporate culture and political

situations Researchers isolation from

managers

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When Primary Research Should be Avoided

When information cannot be applied to acritical managerial decision Ex. Long termFinancial planning, plant location study

When managerial decision involves little risk

When management has insufficientresources to conduct a study

When the cost of the study/Researchoutweighs the level of risk of the decision

Un-researchable question Ex. Shouldpension be given in your organization?

When research is Politically motivated

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The Role of Marketing Research

Controllable

Marketing

Product

Pricing

Promotion

Distribution

Variables

MarketingResearch

MarketingDecisionMaking

ProvidingInformation

AssessingInformation

Needs

Marketing Managers

Market Segmentation

Performance & Control

Target Market Selection

Marketing Programs

Uncontrollable

Environmental

Factors

EconomyTechnology

Laws &Regulations

Social & CulturalFactors

Political Factors

Customer Groups

Employees

ShareholdersSuppliers

Consumers

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Marketing Research Suppliers & Services

Internal suppliers External suppliers

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Criteria for Selecting a Research Supplier

What is the reputation of the supplier?

Do they complete projects on schedule?

Are they known for maintaining ethical standards?

Are they flexible?

Are their research projects of high quality?

What kind and how much experience does the supplierhave? Has the firm had experience with projects similarto this one?

Do the supplier's personnel have both technical and non-

technical expertise? Can they communicate well with the client?

Competitive bids should be obtained and compared onthe basis of quality as well as price.