Marketing Research

Based on “MARKETING
RESEARCH: AN APPLIED APPROCH”
NARESH K. MALHOTRA
DANIEL NUNAN • DAVID F. BIRKS

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Chapter One: Introduction to Marketing Research
 Objectives
After reading this chapter, you should be able to:
1) understand the nature and scope of marketing research and its role in supporting marketing
decisions;

2) describe the steps in the marketing research process;

3) distinguish between problem-identification and problem-solving marketing research;

4) appreciate the impact that technology is having on the marketing research industry;

5) understand the types and roles of research suppliers, including internal and external, full-service
and limited-service suppliers;

6) understand why some marketers may be skeptical of the value of marketing research;

7) appreciate the skills that researchers will need to succeed in the future world of marketing research
 What does ‘marketing research’ mean?
• The term ‘marketing research’ is relatively recent, yet the concepts that underlie it are not new.
Marketing research has been a well-established part of commercial life for more than 100 years. It has
successfully navigated the huge social, political and economic changes facing the world over this
period and has continued to prosper.

• It is the function that links the consumer and public to the marketer through INFORMATION. This
information used to identify and define marketing opportunities and problems; generate, refine, and
evaluate marketing actions; monitor marketing performance; and improve understanding of marketing
as a process.
• It is defined as “ the systematic and objective identification, collection,
analysis and use of information for the purpose of assisting management in
decision making related to the identification and solution of problem (and
opportunities) in marketing.
Marketing research:
 Specifies the information required to address these
issues,
 Designs the method for collecting information,
 Manages and implements the data collection process,
 Analyzes the results,
 and Communicates the findings and their
implications.

• Thus, Marketing research supports decision making

through collecting, analyzing and interpreting
information to identify and solve marketing problems.
The role of marketing research within the marketing
system
The role of the researcher in supporting the marketing decision maker can therefore be
summarized as helping to:

describe the nature and scope of customer groups;

understand the nature of forces that shape customer groups;

understand the nature of forces that shape the marketer’s ability to satisfy targeted
customer groups; test individual and interactive variables that shape consumer experiences;

monitor and reflect upon past successes and failures in marketing decisions.
 Marketing Research Process

A set of six steps that define the tasks to be accomplished in conducting a marketing research study. These
include;

 Problem definition,
 Developing a research approach,
 Research design,
 Fieldwork or data collection,
 Data analysis and.
 Communicating research findings.
 1. Problem Definition
 The logical starting point in wishing to support the decision maker is trying to understand the
nature of the marketing problem.
 Clearly defining a research problem can be the most challenging stage in a research project.
 It involves understanding the environmental context of the problem, and discussion with
decision makers, in-depth interviews with industry experts and the collection and analysis of
readily available published information (from both inside and outside the firm).
 Once the problem has been precisely defined, the researcher can move on to designing and
conducting the research process with confidence.
 2. Developing a Research Approach
 It involves identifying factors that influence research design.

 A key element of this step involves the selection, adaptation and development of an
appropriate theoretical framework to underpin a research design, and identify the
information needed.

 It helps the researcher to decide ‘what should be measured or understood’ and ‘how best
to encapsulate and communicate the measurements or understandings’
 3.Research design.
 It is a framework or blueprint for conducting
a marketing research project, that details the
procedures necessary for obtaining the
required information.

 Its purpose is to establish a study design that

will either test the hypotheses of interest or
determine possible answers to set research
questions, and ultimately provide the
information needed for decision making.
4. Fieldwork or data collection.

 It could be simplified to ‘collecting the required data’.

 5. Data analysis.
 Data preparation includes the editing, coding, transcription and verification of data.

 This is perhaps the least glamorous aspect of market research but is critical in ensuring the
integrity and accuracy of findings.

 The process of data integrity and analysis is essentially the same for both quantitative and
qualitative techniques, for data collected from both secondary and primary sources.

 The data are analyzed to drive information related to the components of the marketing
research and provide input into the management decision process.
6. Communicating findings (Report preparation and
presentation)
 The traditional route through which to carry out research would be to document the research
with a written report, that address all steps.

 However, due to increasing pressures on managers’ time, researchers use alternative means.
Frequently these are visual, and can include videos, images or infographics to enhance clarity
and impact.

 Marketing research consists of six stages. Within these six broad steps are many iterations
and routes that can be taken, reflecting the reality of marketing research in practice.
Infographic Examples
 Internet and Applications
 There are many ways in which the internet can be useful for marketing researchers. For
example it can be used as:

A) A source of secondary data

B) A source of information that feeds into the firms marketing.

C) Such data don’t require extra step of data input because the data are electronically sent
from respondents.
The marketing research process

Detailing iterations
between stages
Malhotra, 2019
 A Classification of Marketing Research
Problem identification research:

 Research undertaken to help identify problems that are not necessarily apparent on the surface, yet exist
or are likely to arise in the future.

 It provides information about the marketing environment and helps diagnose a problem.

Problem-solving research:

 Research undertaken to help solve specific marketing problems.

 The findings of problem-solving research are used to support decisions that tackle specific marketing
problems
A Classification of Marketing Research
 Marketing Research Suppliers or Agencies.
Marketing research suppliers could be internal or external.

External suppliers: Outside marketing research companies hired to supply marketing research services.
They can be classified as full-service or limited-service suppliers;

• Full-service suppliers: Offer the entire range of marketing research services: for example, defining a
problem, developing a research design, conducting focus group interviews, designing questionnaires,
sampling, collecting, analyzing and interpreting data and presenting reports.

• Limited-service suppliers: Companies that specialize in one or a few phases of a marketing-

research project.
Marketing Research Suppliers

FAPO CBSOR
 Services Provided by External Full-service
Marketing Research suppliers
Syndicated services collect information of known commercial value that they provide to multiple clients on a
subscription basis. Surveys, diary panels, scanners and audits are the main means by which these data are collected.

Customized services Companies that offer a variety of marketing research Services specifically designed to suit a
client’s particular needs. Each marketing-research project is treated uniquely.

Online services Companies that offer a combination or variety of secondary data and intelligence gathering, survey
or qualitative interviewing, social media engagement and the analysis and publication of research findings,
exclusively online.

Market research reports and advisory services provide off-the-shelf reports as well as data and briefs on a range
of markets, consumer types and issues; as such, they are thought of as part of the broader information market and not
necessarily part of the traditional marketing research industry.
 Services Provided by External Limited-Service
Marketing Research Suppliers
Field services Companies that collect data through postal surveys, face-to-face interviews,
telephone interviews and the internet.

Coding and data entry services Companies that offer such services as editing completed
questionnaires, developing a coding scheme and transcribing the data for input into a computer.

Analytical services Companies that provide such services as designing and pre-testing
questionnaires, determining the best means of collecting data and designing sampling plans.

.
 Services Provided by External Limited-Service
Marketing Research Suppliers

Branded marketing research products and services Companies that offer specialized data
collection and analysis procedures developed to address specific types of marketing research
problems. These procedures can be patented, given brand names and marketed like any other
branded product.

Panel providers Companies that offer researchers the opportunity to access consumer, b2b
and specialist panels of participants, alongside scripting and hosting surveys.

Software providers Companies that provide software packages that create platforms to
script, host and analyze surveys, or software as a service (SaaS) options.
 Services Provided by External Limited-Service Marketing
Research Suppliers

Online community providers Companies that build online research communities where
researchers can employ a wide variety of quantitative and qualitative techniques to connect to
consumers.

Online focus groups and streaming Companies that provide platforms for running online
focus groups and streaming the results.

Reporting Companies that offer research companies reporting solutions that seek to engage
clients in oral and electronic presentations beyond conventional reporting methods such as
hard-copy reports and PowerPoint.
 The Future in Marketing Research
 Marketing researchers are now responding to the
growth in technology in many fields, as market
researchers recognized how engaging with theses new
technologies would have a significant impact upon the
nature, value, and integrity of the work they undertake.

 Facebook and other social media

 Neuromarketing and neuroscience technologies

Some of the Key Issues Raised by the Growth in Technology
 Trust. Ensuring that research buyers understand the basis of the advice they are given.

 Theoretical base. At the moment, many new techniques are being used in a theoretical
vacuum; thus researchers need to address this and rebuild a body of knowledge and theory
that supports the techniques being used.

 Ethical base. There are new privacy, security and safety issues. For example, social media has
changed the rules on how ‘findable’ somebody is. This has enormous implications for privacy
and safety.

 Skills gap. Marketing research industry is facing a skills gap and there is a lack of appropriate
technical skills among researchers.
 Summary
 Marketing research provides support to marketing decision makers by helping to describe the
nature and scope of customer groups, understand the nature of forces that shape the needs of
customer groups and the marketer’s ability to satisfy those groups, test individual and
interactive controllable marketing variables and monitor and reflect upon past successes and
failures in marketing decisions.

 Thus, the overall purpose of marketing research is to assess information needs and provide the
relevant information in a systematic and objective manner to improve marketing decision
making.
 Summary
 Marketing research is not the absolute solution for all marketing problems. There are
examples where marketing research has not adequately supported decision makers.

 However, many of the problems that arise from poor marketing research drive from poor
communications between decision makers and researchers.

 By having the technical skills to conduct research in a professional and ethical manner,
researchers are increasingly expected to have the ability to interpret their findings in a
manner that is relevant to decision makers.