Marketing Research: Marketing Research Is The Systematic Gathering, Recording, and Analysis of Data About Issues
Marketing Research: Marketing Research Is The Systematic Gathering, Recording, and Analysis of Data About Issues
Marketing Research: Marketing Research Is The Systematic Gathering, Recording, and Analysis of Data About Issues
Marketing research is the systematic gathering, recording, and analysis of data about issues
relating to marketing products and services. The goal of marketing research is to identify and
assess how changing elements of the marketing mix impacts customer behavior. The term is
commonly interchanged with market research; however, expert practitioners may wish to draw
a distinction, in that market research is concerned specifically with markets, while marketing
research is concerned specifically about marketing processes.[1]
Marketing research is often partitioned into two sets of categorical pairs, either by target market:
Thus, marketing research may also be described as the systematic and objective identification,
collection, analysis, and dissemination of information for the purpose of assisting management in
decision making related to the identification and solution of problems and opportunities in
marketing.[3]
Contents
1 Role of marketing research (MR)
2 Marketing research characteristics
3 Comparison with other forms of business research
4 Classification of marketing research
5 Types of marketing research
6 Marketing research methods
7 Business to business market research
8 Marketing research in small businesses and nonprofit organizations
9 International Marketing Research plan
10 Commonly used marketing research terms
11 Selecting a research supplier
12 Careers in marketing research
13 See also
14 Notes
15 References
16 External links
Marketing managers make numerous strategic and tactical decisions in the process of identifying
and satisfying customer needs. They make decisions about potential opportunities, target market
selection, market segmentation, planning and implementing marketing programs, marketing
performance, and control. These decisions are complicated by interactions between the
controllable marketing variables of product, pricing, promotion, and distribution. Further
complications are added by uncontrollable environmental factors such as general economic
conditions, technology, public policies and laws, political environment, competition, and social
and cultural changes. Another factor in this mix is the complexity of consumers. Marketing
research helps the marketing manager link the marketing variables with the environment and the
consumers. It helps remove some of the uncertainty by providing relevant information about the
marketing variables, environment, and consumers. In the absence of relevant information,
consumers' response to marketing programs cannot be predicted reliably or accurately. Ongoing
marketing research programs provide information on controllable and non-controllable factors
and consumers; this information enhances the effectiveness of decisions made by marketing
managers.[4]
Traditionally, marketing researchers were responsible for providing the relevant information and
marketing decisions were made by the managers. However, the roles are changing and marketing
researchers are becoming more involved in decision making, whereas marketing managers are
becoming more involved with research. The role of marketing research in managerial decision
making is explained further using the framework of the "DECIDE" model:
D
Define the marketing problem
E
Enumerate the controllable and uncontrollable decision factors
C
Collect relevant information
I
Identify the best alternative
D
Develop and implement a marketing plan
E
Evaluate the decision and the decision process
The DECIDE model conceptualizes managerial decision making as a series of six steps. The
decision process begins by precisely defining the problem or opportunity, along with the
objectives and constraints.[4] Next, the possible decision factors that make up the alternative
courses of action (controllable factors) and uncertainties (uncontrollable factors) are enumerated.
Then, relevant information on the alternatives and possible outcomes is collected. The next step
is to select the best alternative based on chosen criteria or measures of success. Then a detailed
plan to implement the alternative selected is developed and put into effect. Last, the outcome of
the decision and the decision process itself are evaluated.
Marketing research is objective. It attempts to provide accurate information that reflects a true
state of affairs. It should be conducted impartially. While research is always influenced by the
researcher's research philosophy, it should be free from the personal or political biases of the
researcher or the management. Research which is motivated by personal or political gain
involves a breach of professional standards. Such research is deliberately biased so as to result in
predetermined findings. The motto of every researcher should be, "Find it and tell it like it is."
The objective nature of marketing research underscores the importance of ethical considerations,
which are discussed later in the chapter.
Market research is broader in scope and examines all aspects of a business environment.
It asks questions about competitors, market structure, government regulations, economic
trends, technological advances, and numerous other factors that make up the business
environment (see environmental scanning). Sometimes the term refers more particularly
to the financial analysis of companies, industries, or sectors. In this case, financial
analysts usually carry out the research and provide the results to investment advisors and
potential investors.
Product research - This looks at what products can be produced with available
technology, and what new product innovations near-future technology can develop (see
new product development).
Problem identification research is undertaken to help identify problems which are, perhaps, not
apparent on the surface and yet exist or are likely to company image, market characteristics,
sales analysis, short-range forecasting, long range forecasting, and business trends research.
Research of this type provides information about the marketing environment and helps diagnose
a problem. For example, The findings of problem solving research are used in making decisions
which will solve specific marketing problems.
The Stanford Research Institute, on the other hand, conducts an annual survey of consumers that
is used to classify persons into homogeneous groups for segmentation purposes. The National
Purchase Diary panel (NPD) maintains the largest diary panel in the United States.
Standardized services are research studies conducted for different client firms but in a standard
way. For example, procedures for measuring advertising effectiveness have been standardized so
that the results can be compared across studies and evaluative norms can be established. The
Starch Readership Survey is the most widely used service for evaluating print advertisements;
another well-known service is the Gallup and Robinson Magazine Impact Studies. These
services are also sold on a syndicated basis.
There are two main sources of data - primary and secondary. Primary research is conducted
from scratch. It is original and collected to solve the problem in hand. Secondary research
already exists since it has been collected for other purposes. It is conducted on data published
previously and usually by someone else. Secondary research costs far less than primary research,
but seldom comes in a form that exactly meets the needs of the researcher.
A similar distinction exists between exploratory research and conclusive research. Exploratory
research provides insights into and comprehension of an issue or situation. It should draw
definitive conclusions only with extreme caution. Conclusive research draws conclusions: the
results of the study can be generalized to the whole population.
Exploratory research is conducted to explore a problem to get some basic idea about the solution
at the preliminary stages of research. It may serve as the input to conclusive research.
Exploratory research information is collected by focus group interviews, reviewing literature or
books, discussing with experts, etc. This is unstructured and qualitative in nature. If a secondary
source of data is unable to serve the purpose, a convenience sample of small size can be
collected. Conclusive research is conducted to draw some conclusion about the problem. It is
essentially, structured and quantitative research, and the output of this research is the input to
management information systems (MIS).
Exploratory research is also conducted to simplify the findings of the conclusive or descriptive
research, if the findings are very hard to interpret for the marketing managers.
Based on questioning:
Based on observations:
There are four key factors that make B2B market research special and different to consumer
markets:[6]
The decision making unit is far more complex in B2B markets than in consumer markets
B2B products and their applications are more complex than consumer products
B2B marketers address a much smaller number of customers who are very much larger in
their consumption of products than is the case in consumer markets
Personal relationships are of critical importance in B2B markets.
Below are some steps that could be done by SME (Small Medium Entreprise) to analyze the
market [7]:
Note as important : Overall analysis is should be based on 6W+1H (What, When, Where,
Which, Who, Why and How)question.
Applied research sets out to prove a specific hypothesis of value to the clients paying for
the research. For example, a cigarette company might commission research that attempts
to show that cigarettes are good for one's health. Many researchers have ethical
misgivings about doing applied research.
Sugging (from "SUG", for selling under the guise of market research) forms a sales
technique in which sales people pretend to conduct marketing research, but with the real
purpose of obtaining buyer motivation and buyer decision-making information to be used
in a subsequent sales call.
Frugging comprises the practice of soliciting funds under the pretense of being a
research organization.
When developing criteria for selecting an outside supplier, a firm should keep some basics 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 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? In other words, 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? [8]
The cheapest bid is not always the best one. Competitive bids should be obtained and compared
on the basis of quality as well as price. A good practice is to get a written bid or contract before
beginning the project. Decisions about marketing research suppliers, just like other management
decisions, should be based on sound information.[8]
The most common entry-level position in marketing research for people with bachelor's degrees
(e.g., BBA) is as operational supervisor. These people are responsible for supervising a well-
defined set of operations, including field work, data editing, and coding, and may be involved in
programming and data analysis. Another entry-level position for BBAs is assistant project
manager. An assistant project manager will learn and assist in questionnaire design, review field
instructions, and monitor timing and costs of studies. In the marketing research industry,
however, there is a growing preference for people with master's degrees. Those with MBA or
equivalent degrees are likely to be employed as project managers.[9]
A small number of business schools also offer a more specialized Master of Marketing Research
(MMR) degree. An MMR typically prepares students for a wide range of research methodologies
and focuses on learning both in the classroom and the field.
The typical entry-level position in a business firm would be junior research analyst (for BBAs)
or research analyst (for MBAs or MMRs). The junior analyst and the research analyst learn about
the particular industry and receive training from a senior staff member, usually the marketing
research manager. The junior analyst position includes a training program to prepare individuals
for the responsibilities of a research analyst, including coordinating with the marketing
department and sales force to develop goals for product exposure. The research analyst
responsibilities include checking all data for accuracy, comparing and contrasting new research
with established norms, and analyzing primary and secondary data for the purpose of market
forecasting.
As these job titles indicate, people with a variety of backgrounds and skills are needed in
marketing research. Technical specialists such as statisticians obviously need strong backgrounds
in statistics and data analysis. Other positions, such as research director, call for managing the
work of others and require more general skills. To prepare for a career in marketing research,
students usually:
[edit] Notes
1. ^ McDonald, Malcolm (2007), Marketing Plans (6th ed.), Oxford, England: Butterworth-
Heinemann, ISBN 978-0750683869, http://books.google.com/?
id=os0K20MsepoC&pg=PA364&dq=%22market+research+vs.+marketing+research%22&q=
2. ^ [1]
3. ^ Malhotra, Naresha K. (2002), Basic Marketing Research: A Decision-Making Approach, Upper
Saddle River, NJ: Prentice Hall, ISBN 0133768562 9780133768565 0130090484
9780130090485
4. ^ a b Twedt, Dick Warren (1983), 1983 Survey of Marketing Research, Chicago: American
Marketing Association
5. ^ Marketing Research: An Applied Orientation 2006 (5th Edition) by Naresh Malhotra. ISBN
0132221179
6. ^ Business-to-Business Marketing By Paul Hague, Nick Hague and Matt Harrison (undated)
accessed October 9, 2006
7. ^ Wibowo Martino, Marketing Management for Small Medium Enterprises, Jakarta,Indonesia,
2008, unpublished material
8. ^ a b c Glazer, Rashi (October 1991), Marketing in an Information-Intensive Environment:
Strategic Implications of Knowledge as an Asset, Upper Saddle River, NJ: Journal of Marketing,
pp. 1–19
9. ^ a b c Boudreaux, Michael (March 1984), "Prepare for Your Future in Marketing, Your
Interviews, and Something 'Extra'", Student Edition Marketing News (2): 3–4
10. ^ Kinnear, Thomas C.; Root, Ann R. (1988), 1988 Survey of Marketing Research, Chicago:
American Marketing Association
References
Bradley, Nigel Marketing Research. Tools and Techniques.Oxford University Press,
Oxford, 2007 ISBN 0-19-928196-3 ISBN 978-0-19-928196-1
Marder, Eric The Laws of Choice—Predicting Customer Behavior (The Free Press
division of Simon and Schuster, 1997. ISBN 0-684-83545-2
Young, Charles E, The Advertising Handbook, Ideas in Flight, Seattle, WA, April 2005.
ISBN 0-9765574-0-1
Kotler, Philip and Armstrong, Gary Principles of Marketing Pearson, Prentice Hall, New
Jersey, 2007 ISBN 978-0-13-239002-6, ISBN 0-13-239002-7