Introduction to

Marketing Research

1-1
 Opening Vignette

Definition of Marketing Research ( Fig 1.2)

Experiential Learning

A Classification of Marketing Research (Fig1.3)

What Would You Do?

Marketing Research Process (Fig 1.4)

The Role of Marketing Research in Decision Making (Fig 1.5)

Marketing Research and Competitive Intelligence

Be an MR!

The Decision to Conduct Marketing Research (Fig 1.6) Table 1.1

Marketing Research Industry (Fig. 1.7)

Selecting a Research Supplier

Be a DM!

Employability in Marketing Research

The Role of Marketing Research in MIS and DSS (Fig 1.8 & Fig 1.9)

Application to Contemporary Issues (Fig 1.10)

International Social Media Ethics (Fig 1.11)
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/assisting

management related to the

› identification and
› solution of problems and opportunities in marketing
Figure 1.2 Defining Marketing Research
Identification of Identifying and
Information Solving Marketing
Needed
Problems

Collection of
Data

Analysis of
Data

Dissemination of
Information

Use of
Information
Market 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
Classification of Marketing Research
Problem Identification Research
 Research undertaken to help identify problems which
are not necessarily apparent on the surface and yet
exist or are likely to arise in the future. Examples:
market potential, market share, image, market
characteristics, sales analysis, forecasting, and trends
research.

Problem Solving Research

 Research undertaken to help solve specific marketing
problems. Examples: segmentation, product, pricing,
promotion, and distribution research.
Figure 1.3 A Classification of Marketing Research

Marketing
Research
Problem- Problem-
Identification Solving
Research Research

• Market Potential Research • Segmentation Research

• Market Share Research • Product Research
• Image Research
• Market Characteristics • Pricing Research
Research • Promotion Research
• Forecasting Research
• Business Trends Research • Distribution Research
Problem-Solving Research
SEGMENTATION RESEARCH PRODUCT RESEARCH

 Determine the basis of  Test concept

segmentation  Determine optimal product
 Establish market potential and design
responsiveness for  Package tests
various  Product modification
segments  Brand positioning and
 Select target markets repositioning
 Create lifestyle profiles:  Test marketing
demography, media, and  Control store tests
product image characteristics
Problem-Solving Research (Cont.)
PRICING RESEARCH PROMOTIONAL RESEARCH
L E
 Pricing policies $A  Optimal promotional budget
 Importance of price in brand  Sales promotion relationship
selection  Optimal promotional mix
 Product line pricing  Copy decisions
 Price elasticity of demand  Media decisions
 Initiating and responding to  Creative advertising testing
price change  Evaluation of advertising
effectiveness
 Claim substantiation

0.00% APR
Problem-Solving Research (Cont.)
DISTRIBUTION RESEARCH
Determines…
 Types of distribution
 Attitudes of channel members
 Intensity of wholesale & resale coverage
 Channel margins
 Location of retail and wholesale outlets
Figure 1.4 The 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 6: Preparing and Presenting the Report

Figure 1.5 The Role of Marketing Research in
Marketing

Uncontrollable Customer Groups

Environmental • Consumers Controllable
Factors • Employees Marketing
• Economy • Channel Members Variables
• Technology • Suppliers
• Competition
• Product
• Laws and • Pricing
Regulation • Promotion
• Social and Cultural • Distribution
Factors
• Political Factors Marketing
Research

Assessing Providing
Marketing
Information Decision Making
Information
Needs

Marketing Managers
• Market Segmentation • Marketing Programs
• Target Market Selection • Performance and Control
 Marketing Research and Competitive
Intelligence

 The process of enhancing marketplace competitiveness

through a greater understanding of a firm’s competitors
and the competitive environment.

 Strategic and Competitive Intelligence Professionals

(SCIP) consists of members conducting competitive
intelligence for large and small companies.
Figure 1.6 The Decision to Conduct Marketing Research
Does the management have a positive No
attitude towards research?

Yes
Are enough resources available to collect No
additional information and implement the
findings?
Yes Do Not
Is additional information needed to No Conduct
make the decision? Marketing
Research
Yes

Is the decision of strategic or tactical No

importance?

Yes

Does the value of additional information exceed No

the cost of research?

Yes
Conduct Marketing Research
Marketing Research Suppliers & Services
 Internal suppliers
 External suppliers
› Full-service suppliers
› Syndicated services
› Standardized services
› Customized services
› Internet services
› Limited-service suppliers
› Field services
› Focus groups and Qualitative services
› Technical and Analytical services
› Other services
Copyright © 2011 Pearson Education, Inc. Chapter 1 - 15
Figure 1.7
Marketing Research Industry: Suppliers and Services
Research
Suppliers

Internal External

Full Service
Limited Service

Field Services
Syndicated Internet/
Services Social Media
Services Other Services
Qualitative Services
Customized
Services Analytical Services
1-16
Global Market Research Firms
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 supplier have? Has
the firm had experience with projects similar to 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 on the basis of
quality as well as price.

Copyright © 2011 Pearson Education, Inc. Chapter 1 - 18

Careers in Marketing Research
 Career opportunities are available with marketing research firms
(e.g., Nielsen, Burke, Inc., M/A/R/C)
 Careers in business and non-business firms and agencies with in-
house marketing research departments (e.g., Procter & Gamble,
Coca-Cola, AT&T, the Federal Trade Commission, the U.S. Census
Bureau)
 Advertising agencies (e.g., BBDO International, Ogilvy & Mather, J.
Walter Thompson, Young & Rubicam)
 Positions: vice president of marketing research, research director,
assistant director of research, project manager, field work director,
statistician/data processing specialist, senior analyst, analyst,
junior analyst, and operational supervisor

Copyright © 2011 Pearson Education, Inc. Chapter 1 - 19

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

• Supervises research staff members

Senior Project Manager

• Responsible for design, implementation, & research projects

Copyright © 2011 Pearson Education, Inc. Chapter 1 - 20

Selected Marketing Research Career Descriptions (Cont.)

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

Analyst Statistician/Data Processing

• Handles details in execution of project • Serves as expert on theory and application on

• Designs & pretests questionnaires statistical techniques
• Conducts preliminary analysis of data • Oversees experimental design, data processing, and
analysis

Junior Analyst
Fieldwork Director
• Secondary data analysis
• Edits and codes questionnaires • Handles selection, training, supervision, and
• Conducts preliminary analysis of data evaluation of interviewers and field workers

Copyright © 2011 Pearson Education, Inc. Chapter 1 - 21

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
command a premium in marketing research.

Copyright © 2011 Pearson Education, Inc. Chapter 1 - 22

Copyright © 2011 Pearson Education, Inc. Chapter 1 - 23
International Marketing Research
 The United States accounts for about 40 percent of
worldwide marketing research expenditures; another 40
percent is attributable to Western Europe and about 10
percent to Japan.
 International marketing research should be sensitive to
differences in customs, communication, and culture.
 The environment in the countries or international
markets that are being researched influences the way
the six steps of the marketing research process should
be performed.
 These environmental factors include marketing,
government, legal, economic, structural, informational,
technological, and sociocultural factors.
Copyright © 2011 Pearson Education, Inc. Chapter 1 - 24
Marketing Research & Social Media
 All social media share certain common characteristics
that make them very relevant as a domain for
conducting marketing research.
 Social media are marked by user-generated content.
 Users are able to rate, rank, comment on, review and
respond to the new world of media.
 People form online communities by combining one-to-
one (e.g. email and instant messaging), one-to-many
(web pages and blogs) and many-to-many (wikis)
communication modes.
 Social communities open up new avenues for
understanding, explaining, influencing and predicting the
behaviors of consumers in the marketplace.
Copyright © 2011 Pearson Education, Inc. Chapter 1 - 25
Marketing Research & Social Media (Cont.)
Social Media Summary
 We advocate the use of social media as an additional
domain in which to conduct marketing research to
supplement and complement, but not to replace, the
traditional ways in which research is conducted.
 Social media research services: Nielsen (
www.nielsen.com), Cymfony (www.cymfony.com),
Attensity (www.attensity.com), BrandsEye
(www.brandseye.com).

Copyright © 2011 Pearson Education, Inc. Chapter 1 - 26

Ethics in Marketing Research
 Marketing research activities affect four stakeholders:
(1) the marketing researcher, (2) the client, (3) the
respondent, and (4) the public.
 Ethical issues arise when conflict occurs between these
stakeholders (Figure 1.11) and this can happen at each
step of the marketing research process.
 In the face of conflict, the behavior of the stakeholders
should be guided by codes of ethics.

Copyright © 2011 Pearson Education, Inc. Chapter 1 - 27

Figure 1.11 Stakeholders in Marketing Research:
An Ethical Perspective

Client

Marketing
Public
Researcher

Respondents

Copyright © 2011 Pearson Education, Inc. Chapter 1 - 28

Overview of Ethical Issues in Marketing Research

I. Problem definition

› Using surveys as a guise for selling or fundraising

› Personal agendas of the researcher or client
› Conducting unnecessary research
 
II. Developing an approach

› Using findings and models developed for specific clients

or projects for other projects
› Soliciting proposals to gain research expertise without pay
› Inaccurate reporting

Copyright © 2011 Pearson Education, Inc. Chapter 1 - 29

Overview of Ethical Issues in Marketing Research (Cont.)

III. Research Design

› Formulating a research design more suited to the

researcher's rather than the client's needs
› Using secondary data that are not applicable or have
been gathered through questionable means
› Disguising the purpose of the research
› Soliciting unfair concessions from the researcher
› Not maintaining anonymity of respondents
› Disrespecting privacy of respondents
› Misleading respondents
› Disguising observation of respondents

Copyright © 2011 Pearson Education, Inc. Chapter 1 - 30

Overview of Ethical Issues in Marketing Research (Cont.)

III. Research Design (Cont.)

› Embarrassing or putting stress on respondents

› Using measurement scales of questionable reliability &
validity
› Designing overly long questionnaires, overly sensitive
questions, piggybacking
› Using inappropriate sampling procedures and sample size

Copyright © 2011 Pearson Education, Inc. Chapter 1 - 31

Overview of Ethical Issues in Marketing Research (Cont.)

IV. Field Work

› Increasing discomfort level of respondents

› Following unacceptable field work procedures

V. Data Preparation and Analysis

› Identifying and discarding unsatisfactory respondents

› Using statistical techniques when the underlying
assumptions are violated
› Interpreting the results and making incorrect conclusions
and recommendations

Copyright © 2011 Pearson Education, Inc. Chapter 1 - 32

Overview of Ethical Issues in Marketing Research (Cont.)

VI. Report Preparation and Presentation

› Incomplete reporting
› Biased reporting
› Inaccurate reporting

Copyright © 2011 Pearson Education, Inc. Chapter 1 - 33

Acronym: Research
The role and salient characteristics of marketing
research can be described by the acronym
RESEARCH:
R ecognition of information needs
E ffective decision making
S ystematic and objective
E xodus/dissemination of information
A nalysis of information
R ecommendations for action
C ollection of information
H elpful to managers
Copyright © 2011 Pearson Education, Inc. Chapter 11 - 34
THANK YOU