Marketing
Research
Chapter 1
☺ Introduction and early phases of marketing
research
Chapter Outline
1) Overview
2) Definition of Marketing Research 3) A Classification of Marketing
Research
4) Marketing Research Process
5) The Role of Marketing
Research in Marketing Decision Making
6) Marketing Research and Competitive Intelligence 7) The Decision to Conduct
Research
8) Marketing Research
Suppliers and Services 9) Selecting a Research
Supplier
10) Careers in Marketing Research
11) The Role of Marketing
Research in MIS and DSS
12) The Department Store Project
13) International Marketing Research 14) Ethics in Marketing Research
15) Summary
• The function that links the
consumer ,customer ,&public to the marketer through
information-
The American Marketing Association (AMA) redefined Marketing Research
as:
Used to identify and define market
opportunities and problems
Generate, refine, and evaluate marketing performance
Monitor marketing performance
Improve understanding
Marketing research
Specifies the information necessary to address these issues
Manages and implements the data collection process
Analyzes the results
Communicates the findings and their implications
Helps managers use this information to make decisions
Marketing research:
Is the systematic & objective identification collection analysis disseminationinformation for the
purpose of improving decision making
related to the
identification and
solution of problems
& opportunities in marketing.
research problem or opportunity
investigate it.
a research problem to be investigated)
the terms
“problem”
&
“opportunity”
Are used
interchangeably
information sources are identified and a range of
data collection methods varying in
sophistication &
complexity are evaluated for their
usefulness.
finally
The findings Implications recommendations • Are provided in a format that allows the information to be used formarketing
decision making and to be acted upon directly
A classification
of marketing research
reasons
for classifying marketing
research into
Marketing Research
Problem
Identification Research
Problem-Solving Research
Market Potential Research Market Share Research
Market Characteristics Research
Sales Analysis Research
Segmentation Research
Product Research Pricing Research
Fig. 1.1
identify
problems
that are perhaps ,not apparent on the surface and yet exist or are likely to happen in the future.identification research include:
Market potential Market share Brand or company image Market characteristics Sales analysis Short range forecasting Long rang forecasting Business trend research.in making
decision that will solve specific
marketing problems.
Most companies conduct problem–solving research.
segments
Select target markets Create lifestyle profiles:demography, media, and
product image characteristics
oTest concept
oDetermine optimal product design
oPackage tests
oProduct modification
oBrand positioning and repositioning
PRODUCTRESEARCH
PRICING RESEARCH
Pricing policies
Importance of price in brand selection
Product line pricing $ALE
0.00%
APRPROMOTIONAL RESEARCH
• Optimal promotional budget
• Sales promotion relationship
• Optimal promotional mix
• Copy decisions
• Media decisions
• Creative advertising testing
• Evaluation of advertising effectiveness
DISTRIBUTION RESEARCH
Determine…
Types of distribution
Attitudes of channel members
Intensity of wholesale & resale coverage
Channel margins
Location of retail and wholesale outlets
Problem identification research &
Problem-solving research Go Hand in hand
And
Given marketing research project
May combine
Marketing Research Process
Step 1 : Problem Definition
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
Marketing Research Process
Step 1: Defining the Problem
Step 2: Developing an Approach to the Problem
Step 3: Formulating a Research Design
Step 4: Doing Field Work or Collecting Data Step 5: Preparing and Analyzing Data
Step 1: problem definition
In defining the problem, the researcher should take into account:
the purpose of the study.
The relevant background information
The information needed
How it will be used in decision making
Problem definition involves:
Discussion with the decision makers Interviews with industry experts Analysis of secondary data (& some qualitative research such as focusOnce the Problem Has been
defined
The research Can be Designed
And
Conducted properly
Example New Cook
case
Step2:development of an approach to the problem includes:
Formulating an objective or theoretical framework Analytical models Research questions Hypotheses & identifying the information needed.Step 3 :research design formulation
A research design is ablueprint
forconducting the marketing research project.
Formulating the research design involves:
Definition of the information needed Secondary data analysis Qualitative research Methods of collecting quantitative data Measurement & scaling procedures Questionnaire design Sampling process & sample sizeStep 4 :fieldwork or data collection involves:
A field force or staff that operateseither in the field (personal interviewing – from office by telephone –through mail –or electronically).
Proper selection Training Supervision Evaluation of the field force helpminimize data –collection errors.
Step 5:data preparation and analysis includes:
Editing
Coding
Transcription
Verification of data
Each questionnaire is inspected or edited or corrected
The data from the questionnaires are transcribed onto disks
The data are analyzed to derive information related to the components of the marketing research
problem
Step 6:report preparation and presentation
The entire project should bedocumented in a written report that addresses the specific research
questions identified
Describes
the approach The research design Data collection Data analysis procedures adopted Presents the results & the major findings In addition an oral presentationThe role of marketing research
in marketing decision making
Controllable Marketing
• Product
• Pricing
• Promotion
• Distribution Variables
Marketing Research
Marketing Decision Making Providing
Information Assessing
Information Needs
Marketing Managers
Uncontrollable Environmental Factors
• Economy
• Technology
• Laws &
Regulations
• Social &
Cultural Factors
• Political Factors
Fig. 1.2
• Consumers
• Employees
• Shareholders
• Suppliers
Customer Groups
EXAMPLE: J & J’ S
GENTLENESS COULD NOT HANDLE PAIN
J&j is considered to be the world’s most broadly based manufacturer of
health care products .
Despite its success in the industry j&j ‘s attempt to use its company name on baby aspirin proved to be unsuccessful
J&j baby products are perceived as gentle but gentleness is not what
people want a baby aspirin.
Although baby aspirin should be safe genteelness per se is not a desirable
feature.
Some people perceived that a gentle aspirin may not be effective enough.
,marketing managers make numerous strategic & tactical decisions in the process of identifying and satisfying
customer needs.
These decisions are complicated by interactions between the controllable marketing variables of product pricing
promotion & distribution.
Further complications are added by
uncontrollable environmental factors such as
• general economic conditions .
• technology –
• public polices and laws
• Political environment
• Competition
• Social
• Cultural changes
• Another factor in this mix is the
complexity of the various customer group:
• Consumers
• Employees
• Shareholders
• Marketing research helps the marketing manager link
the marketing variable with the environment &the
customer group
Marketing research & competitive intelligence
Competitive intelligence (CI)
The process of enhancing marketplace competitiveness
through a greater
understanding of a firm’s
competitors & the competitive environment .
The decision to conduct
marketing research
This decision
Should be guided by a number of consideration including:
1. The costs versus the benefits
2. The resources available to conduct the research.
3. The resources available to implement the research findings
4. Management’s attitude toward research
Marketing research should be undertaken
When the expected value of information it generates exceeds the costs ofconducting the marketing research project.
Resources Especially time
& money are always limited
If either time or money is notavailable in adequate amounts to
conduct a quality project
The projectprobably should not be
undertaken.
The marketing
research industry
marketing research services.
information needed for making marketing decisions.
encompass various areas of marketing research.
Research suppliers can be classified as internal or
external
Internal supplier:
Is a marketing research department within the firm .
Example: coca cola company –Colgate Palmolive ford – bank of America
maintain in-house marketing research department.
External suppliers
Are outside firms hired to supply marketing research data
External suppliers can be classified.
Full-service suppliers Offer the entire range of
marketing research services :
problem definition – questionnaire design –
sampling –data
collection-data analysis –interpretation-report
perpetration&
presentation
Limited –service suppliers
Full-service suppliers
can be broken down into
Syndicated services
Standardized services
Customized services
Internet services
Syndicated services
Collect information of known commercial value that they provide to multiple clients on
subscription basis.
Standardized services
Are research studies conducted for different client firms but in a
standard way.
Customized services
Offer a wide variety of marketing
research services customized to suit a client’s specific needs.
Internet services
Are offered by several marketing
research firms, including some that have specialized in conducting
marketing research on the internet.
Limited-services suppliers
Specialize in one or a few phase of the marketing research project .
Services offered by such
suppliers are classified as
• field services
• coding
• data entry
• analytical services
• data analysis
Marketing Research Suppliers & Services
LIMITED SERVICE
Branded Products and Services
Data Coding and
Data Entry Field Services
FULL SERVICE
Syndicate Services
Standardized Services
Customized Services
Internet Services
RESEARCH
SUPPLIERS EXTERNAL INTERNAL
Fig. 1.5
A firm that cannot conduct an
entire marketing research in-house must select an external supplier for
one or more phases of the project.
sources.
A firm may not have the technical expertise to undertake certain phases
of a project.
A firm should keep some basis in mind.
?
What is the reputation of the supplier??
Do they complete projects on schedule??
Are they known for maintaining ethical standards?
Are they flexible?
Are they 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 personal have both technical & nontechnical expertise?In addition to technical skills
? Are the personnel assigned to the task sensitive to the client’s needs and do
they share the client’s research ideology?
? Can they communicate well with the client?
Remember:
The cheapest bid is not
always the best one
.Careers in marketing research
Selected Marketing Research Career Descriptions
1-Vice President of Marketing Research:
The senior position in marketing research. The vice president (VP) is responsible for the entire marketing research operation of the company and
serves on the top management team.
This person sets the objectives and goals of the marketing research
Fig. 1.6
2-Research Director:
Also a senior position. The research director has the general responsibility
for the development and execution of all the marketing research projects.
3-Assistant Director of Research:
Serves as an administrative assistant to the director and supervises some of the
other marketing research staff members.
4-(Senior) Project Manager:
Has overall responsibility for design, implementation, and management of
research projects.
5. senior analyst 6. Analyst
7. Junior analyst
8. Fieldwork director
9. Operational supervisor
Selected Marketing Research Career Descriptions
Vice President of Marketing Research
• Part of company’s top management team
• Directs company’s entire market research operation
• Sets the goals & objectives of the marketing research department
Research Director
• Also part of senior management
• Heads the
development and execution of all research projects
Assistant Director of Research
• Administrative assistant to director
Fig. 1.6 cont.
Analyst
• Handles details in execution of project
• Designs & pretests questionnaires
• Conducts preliminary analysis of data
Junior Analyst
• Secondary data analysis Fieldwork Director
•Handles selection, training,
Senior Analyst
• Participates in the development of projects
• Carries out execution of assigned projects
• Coordinates the efforts of analyst, junior analyst, & other personnel in the development of research design and data collection
• Prepares final report
Fig. 1.6 cont.
Statistician/Data Processing
• Serves as expert on theory and application on statistical techniques
• Oversees experimental design, data processing, and analysis
Selected Marketing Research Career Descriptions
The role of marketing research in
MIS& DSS
A marketing information system is a formalized set procedures for generating –
analyzing –storing &
distributing information to marketing decision makers
on an ongoing basis.
The definition of MIS is similar to that marketing research except that an MIS provides
information continuously rather than the basis of ad
hoc research information
NOTE THAT
Decision support systems are integrated systems including:
hardware
Communications
network
,database
model base
software base
DSS user (decision maker)
Management Information Systems Vs.
Decision Support Systems
Unstructured Problems
Use of Models
User Friendly Interaction
Adaptability
Can Improve Decision
MIS DSS
Structured Problems
Use of Reports
Rigid Structure
Information Displaying Restricted
Fig. 1.7
Preparation for a Career in Marketing Research
Take all the marketing courses you can.
Take courses in statistics and quantitative methods.
Acquire Internet and computer skills. Knowledge of programming languages is an added asset.
Take courses in psychology and consumer behavior.
Acquire effective written and verbal communication skills.
Think creatively. Creativity and common sense
International marketing research
The untitled state accounts for only 39 percent of the marketing research
expenditures worldwide.
About 40 percent of all marketing research is conducted in western Europe.
9 percent in Japan
Most of European research is done in Germany –United kingdom France Italy
With the globalization of markets marketing research has assumed a
truly international character & this trend is likely to continue.
International
ESOMAR: European Society for Opinion and Marketing Research (www.esomar.nl)
MRS: The Market Research Society (UK) (www.marketresearch.org.uk)
MRSA: The Market Research Society of Australia (www.mrsa.com.au)
PMRS: The Professional Marketing Research
Marketing Research Associations Online
