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King Fahd University of Petroleum & Minerals
Department of Management and Marketing
MKT 345 - Marketing Research
by Dr. Alhassan G. Abdul-Muhmin
Lectures 1 & 2
Introduction to Marketing
Research and its Role in a Firm
Reference: Zikmund, Chapter 1
LEARNING OUTCOMES
At the end of the discussion you should be able to:
1. define marketing research
2. identify and explain key concepts in the definition of
marketing research
3. explain the difference between basic and applied
research
4. list and explain the different ways in which marketing
research serves an organization
5. list the conditions under which research may not be
conducted prior to a marketing decision
6. identify the different kinds of marketing research
suppliers in the global, GCC, and Saudi Arabia
marketing research industry
WHAT IS MARKETING RESEARCH?
1. A systematic and objective process of
generating information to aid in marketing
decisions (Zikmund 8e, p. 3)
2. The application of the scientific method
in searching for the truth about marketing
phenomena Zikmund & Babin 9e, p. 3)
What keywords can be identified from these
definitions?
THE KEY WORDS
• From Zikmund 8e, the key words are:
1. Information
2. Process
3. Systematic
4. Objective
5. Decisions
• From Zikmund & Babin 9e, they are:
1. Scientific method
2. Truth
3. Marketing phenomena
The Key Words
1. Information –
– The primary function of marketing research (MR) is to
provide information, not just to collect data.
– Thus the MR function is also responsible for analyzing
data collected, interpreting results, drawing conclusions,
making recommendations, and communicating these to
the decision maker.
2. Decisions –
–
–
MR is usually conducted not just for the sake of doing
research, but because the results will be used in decision
making.
Research helps the decision-maker by reducing the risk
of making a wrong decision.
The Key Words
3. Process –
– MR is a process consisting of distinct activity
stages
– Decisions have to be made in each stage
4. Systematic –
– MR should be conducted systematically (i.e. in
an orderly manner) NOT haphazardly (or in a
disorganized manner)
5. Objectivity –
– MR should conducted objectively (i.e. without
bias from the person doing the research) NOT
subjectively (i.e. with the results depending on
who is doing the research)
The Key Words
6) The Scientific Method
• The scientific method is defined as the methods,
techniques, and procedures used to ensure that
research is conducted in a systematic and objective
manner.
– Thus “science” is not only about mixing chemicals and observing what
happens; it is about being systematic and objective in trying to arrive at
the truth about a phenomenon
7) Truth
• Also referred to as “objective reality”
• Facilitated by systematicity and objectivity in
scientific inquiry
8) Marketing Phenomena
• What distinguishes “marketing research” from
other “social science research”
The Official A.M.A. Definition of
Marketing Research
Marketing research is the function that links the consumer,
customer, and public to the marketer through information information used to [make marketing decisions such as]:
–
–
–
–
identify and define marketing opportunities and problems;
generate, refine, and evaluate marketing actions;
monitor marketing performance; and
improve understanding of marketing as a process
Marketing research [as a process]:
–
–
–
–
–
specifies the information required to address these issues;
designs the method for collecting the information;
manages and implements the data collection process;
analyzes the results; and
communicates the findings and their implications
(Footnote # 11 for Chapter 1; on p. 796)
CLASSIFICATION OF MARKETING
RESEARCH
• There are several ways of classifying mkt research:
1. By application of research results
– basic vs applied research
2. By focal research design
– exploratory, descriptive, or causal research
3. By type of data collected
– qualitative or quantitative research
4. By locus of problem
– problem identification or problem solving
research,
BASIC VS APPLIED RESEARCH
Basic (or Pure) Research
•Research that is conducted to:
– expand the boundaries of knowledge
– verify the acceptability of a given theory, or
– learn more about a certain concept
•The findings usually do not have immediate implications for
marketing practice.
Applied Research
•Research that is conducted to provide information to:
– solve a real-life marketing problem, or
– make decisions about particular courses of marketing
action
Both basic and applied research use the scientific method –
THE ROLE OF MARKETING RESEARCH
IN A FIRM
• MR is important in most business firms
because it helps them to:
1. implement the marketing concept the philosophy of modern marketing
2. carry out strategic marketing - the
practice of modern marketing
1) The Role of MR in Implementing the Marketing
Concept
The Marketing Concept - is a modern philosophical
idea that identifies three components to successful
marketing:
1. Consumer/Customer orientation
2. Cross-functional integration
3. Profit orientation  Long run profitability
Other key concepts in modern marketing are:
– Customer Relationship Management (CRM) 
building and maintaining long-term relationships with
valued customers
–
Total Quality Management (TQM) – focus on
continuous, customer-driven quality improvements
..Marketing Research and the Marketing Concept
1. MR helps a firm to become customer oriented by
providing information for the firm to:
– identify customer needs
– determine ways to satisfy those needs
– measure customer satisfaction so the firm can improve its
performance
– eliminate the commercialization of products that are
technically exciting, but that do not satisfy customer needs.
2. MR helps a firm to adopt a cross-functional
integration by:
– gathering market information, and
– communicating the information to all relevant departments
•
MR information links all departments to each other
just like a string links the beads of a rosary together.
..Marketing Research and the Marketing Concept
3.
MR helps a firm to improve its profitability by providing
information for:
–
–
3.
sales and cost analyses
selective targeting, etc
MR helps a firm to implement CRM by:
–
–
4.
gathering and storing customer-related information
designing data-mining projects to better serve customers
MR helps a firm to implement TQM by
–
–
analyzing and bringing the customer perspective to quality
improvement efforts
collecting and analyzing information for bench-marking
2) The Role of MR in Strategic Marketing
Strategic Marketing - What marketing managers
do to help chart the future strategic directions of
their firms. It generally involves:
1. identifying and evaluating market opportunities
2. analyzing market segments and selecting target
markets
3. planning and implementing the marketing
programs (the marketing mix)
4. analyzing marketing performance
Role of Marketing Research in Strategic
Marketing: Identifying and Evaluating
Market Opportunities
MR provides information for:
–
–
–
diagnosing markets, e.g. changes in
demographics, consumer tastes, preferences,
etc
estimating market potentials and forecasts
evaluating market opportunities
Role of Marketing Research in Strategic
Marketing: Analyzing Market Segments
and Selecting Target Markets
Marketing Research provides information to
determine:
1. segment characteristics
2. segment growth potential
3. segment attractiveness, etc
Role of Marketing Research in Strategic
Marketing: Planning and Implementing
Marketing Programs
MR provides information on all aspects of the 4Ps
1. Product research (e.g. concept testing, product testing,
brand name evaluation, etc)
2. Pricing related information (e.g. competitive price levels,
customers' price consciousness, effectiveness of price
discounts, etc)
3. Place-related information (e.g. effectiveness of alternative
distribution channels, retail site location, optimum amount
of shelf space, etc)
4. Promotion-related information (e.g. effectiveness of
different types of ads, sales promotion methods, message
Role of Marketing Research in Strategic
Marketing: Analyzing Market
Performance
Marketing Research provides information
to:
1. determine market shares
2. assess brand health
3. assess customer satisfaction levels, etc.
FACTORS AFFECTING DECISION TO CONDUCT
OR NOT CONDUCT MARKETING RESEARCH
1.
Time Constraints – When there are time constraints to a
decision research may not be conducted
2.
Availability of Data – When data to help solve the problem or
make the decision is already available internally research may
not be conducted
3. Nature of the Decision – When the decision is tactical as
opposed to strategic research may not be conducted
4.
Benefits vs. Costs – When the cost of gathering the
information exceeds its benefit in reducing the risk of a wrong
decision research may not be conducted. The relevant
questions to ask are:
–
–
Is the payoff from the research worth the investment?
Will the information collected improve the quality of the decision
enough to justify the expenditure?
–
Is the proposed expenditure the best use of the funds?
Determining When to (or Not to) Conduct
Marketing Research
Time Constraints
Availability of Data
Is sufficient
time
available?
Information
already on
hand
inadequate?
No
Yes
No
Nature of the Decision
Yes
Is the
decision of
strategic
or tactical
importance?
Yes
No
Do Not Conduct Marketing Research
Benefits vs. Costs
Does the
information Yes
value
exceed the
research cost?
No
Conduct
Marketing
Research
MARKETING RESEARCH SUPPLIERS & SERVICES
EXTERNAL MARKETING
RESEARCH
SUPPLIERS
FULL SERVICE
Syndicated
Services
Standardized
research
Services
Internet
Services
Customize
d
Services
LIMITED SERVICE
Branded
Products
and Services
Field
Services
Coding and
Data Entry
Services
Analytical
Services
Data
Analysis
Services
Marketing Research Suppliers & Services
• Full-service suppliers
– Research suppliers that contract for the
entire ad hoc marketing research project of
a client.
– Also typically provide:
• Customized services – Research services tailored to
the needs of a specific client
• Syndicated services – Standardized information that
is of interest to many clients who are willing to pay a
subscription to obtain the information, e.g. retail audit
services
• Standardized services – Typically involving
development and use a unique methodology for
investigating a phenomenon, e.g. TNS Tracker
Marketing Research Suppliers & Services
•
Limited-service suppliers
– Research suppliers that specialize in
particular research activities, such as:
1.
2.
3.
4.
5.
6.
Field interviewing services
Coding and data entry services
Analytical services
Data analysis services
Branded marketing research products
etc