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 Marketing Research
Definition
 The systematic gathering, recording and analyzing of
data about problems relating to the Marketing of
goods and services.
-American Marketing Association
 Systematic problem analysis, model-building and factfinding for the purpose of improved decision-making
and control in the marketing of goods and services‘.
-Kotler
The function which links
the consumer, the
customer, and public to
the marketer
through INFORMATION
Redefining Marketing Research
Used to identify and
define market
opportunities and
problems
Generate, refine, and
evaluate marketing
performance
Monitor marketing
performance
Improve understanding
of marketing as a
process
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.
A Classification of Marketing Research
Marketing Research
Problem
Identification Research
Market Potential Research
Market Share Research
Market Characteristics Research
Sales Analysis Research
Forecasting Research
Business Trends Research
Problem Solving
Research
Segmentation Research
Product Research
Promotion Research
Distribution Research
Problem Solving Research
SEGMENTATION RESEARCH
 Determine the basis of segmentation
 Establish market potential and
responsiveness for various
segments
PRODUCT RESEARCH
 Select target markets

Test concept
 Create lifestyle profiles:
demography, media, and
product image characteristics

Determine optimal product design

Package tests

Product modification

Brand positioning and
repositioning

Test marketing

Control score tests
Problem Solving Research
PROMOTIONAL RESEARCH
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APR
PRICING RESEARCH

Optimal promotional budget

Sales promotion relationship

Optimal promotional mix

Copy decisions

Media decisions

Creative advertising testing

Evaluation of advertising effectiveness

Claim substantiation

Pricing policies

Importance of price in brand selection

Product line pricing

Price elasticity of demand

Initiating and responding to price changes
$ALE
Problem Solving Research
DISTRIBUTION RESEARCH
Determine…
 Types of distribution
 Attitudes of channel members
 Intensity of wholesale & resale coverage
 Channel margins
 Location of retail and wholesale outlets
 Basic research
 Basic research is also called fundamental or pure
research. As the name itself refers, Basic Research is of
basic nature which is not carried out in response to a
problem. It is more educative, towards understanding
the fundamentals and aim at expanding the knowledge
base of an individual or organization. It does not have
any commercial potential.
 Applied research
 Applied Research on the other hand is carried out to seek
alternate solutions for a problem at hand. Applied research
is done to solve specific, practical questions; its primary aim
is not to gain knowledge. It specifies possible outcomes of
each of the alternatives and its commercial implications.
 Applied research can be carried out by academic or
industrial institutions. Often, an academic institution such
as a university will have a specific applied research program
funded by an industrial partner interested in that program.
Electronics, informatics, computer science, process
engineering and drug design are some of the common
areas of applied research.
 Applied research can further be divided into:



Problem-solving research: It involves research oriented
towards a crucial problem facing the organization which
may be issue specific.
Ex: How do we improve the communication skills of our
employees?
Problem-oriented research: The research is oriented
towards a crucial problem facing the organization. It is
undertaken inside the organization or by an external
consultant on its behalf. This research is conceptual in
nature and newer innovative techniques of problemsolving are applied.
Scope of Marketing Research
 Marketing research can be used in:
 Product Management: One of the major scope of
marketing research is to manage the current products
and new products. In product management Marketing
Research is helpful in
 Competitive Intelligence – To understand the
competitive product strategy.
 Pre-launch strategy for new products
 Test Marketing – To monitor the performance of the
brand by launching in a select area and then taking it
across the country. In other words it is a small-scale
product launch used to determine the likely
acceptance of the product when it is introduced into a
wider market.
 Concept testing - to test the acceptance of a concept
by target consumers.
 Sales analysis: Marketing research is used to study the
sales trend and make suitable strategies when required. It
is used to
 Assess market potential
 Estimation of demand for a product
 Market share estimation
 Study seasonal variation for a product
 Market segmentation studies
 Estimate size of the market
 Need analysis to find out where the product fits in
 Corporate Research: Marketing Research is used to
analyze the corporate effectiveness. Some examples are:
 Assessing the image of the company
 Knowledge of the company activities
 Advertising Research: Advertising is an arena in which
Marketing Research is extensively used. Some scope are:
 Readership feedbacks – Mainly carried out for
newspapers and magazines
 Advertising Recall – To assess the recall of television or
other advertising and thereby assess its effectiveness.
 Syndicated Research: This is compiled by agencies on a
regular basis and sold to organizations on subscription
basis.
The Marketing Research Process
The Marketing Research Process: 11 Steps
• Step One:
•
•
•
•
Step Two:
Step Three:
Step Four:
Step Five:
• Step Six:
Establishing the Need for Marketing
Research
Defining the Problem
Establishing Research Objectives
Determining Research Design
Identifying Information Types and
Sources
Determining Methods of Accessing
Data
•
•
•
•
•
Step Seven:
Step Eight:
Step Nine:
Step Ten:
Step Eleven:
Designing Data Collection Forms
Determining Sample Plan and Size
Collecting Data
Analyzing Data
Preparing and Presenting the Final
Research Report
Step One: Establish the Need for Marketing
Research
• Marketing Research is not needed when the:
• required information is already available
• decisions need to be made now
• organization can’t afford the research
• costs outweigh the value of the research
Step Two: Define the Problem
• The most important step in the marketing
research process is defining the problem.
Step Three: Establish Research Objectives
• What information is needed in order to
solve the problem?
Step Four: Determine Research Design
• Exploratory Research: collecting information in
an unstructured and informal manner
• Descriptive Research: refers to a set of methods
and procedures describing marketing variables
• Causal Research (experiments and other
approaches): allows isolation of causes and
effects
Step Five: Identify Information Types and Sources
• Secondary Data: information that has been
collected for some purpose other than the
research at hand
• Primary Data: information that has been gathered
specifically for the research objectives at hand
The Marketing Research Process
Step Six: Determine Methods of Accessing Data
• Secondary Data: accessing data through
sources such as the Internet and library
• Primary Data: collecting data from
participants through methods such as
telephone, mail, online, and face-to-face
(quantitative), and observation studies
and focus groups (qualitative)
Step Seven: Design Data Collection Forms
• The design of the data collection form that is
used to ask or observe and record information in
marketing research projects is critical to the
success of the project.
• It is easy to write a set of questions but very
difficult to construct a questionnaire.
• General types of “instruments” (forms)
• Questionnaires
• Observation Study forms (protocols)
The Marketing Research Process
Step Eight: Determine Sample Plan and Size
• Sample plan: refers to the process used to
select units from the population to be
included in the sample
• Sample size: refers to determining how
many elements (units) of the population
should be included in the sample
The Marketing Research Process
Step Nine: Collect Data
• Sound data collection is very important
because, regardless of the data analysis
methods used, data analysis cannot “fix”
bad data.
• Nonsampling errors may occur during data
collection. These are related to poor
design and/or execution of the data
gathering.
• Sampling errors may occur based purely
on chance
The Marketing Research Process
Step Ten: Analyze Data
• Data analysis: involves entering data into
computer files, inspecting data for errors
(data cleaning), running tabulations
(frequencies), and conducting various
statistical tests
The Marketing Research Process
Step Eleven: Prepare and Present the Final Research Report
• Findings are presented, often by
research objective, in a clear and
concise way.
• The need for a good report cannot be
overstated. It is the report, and/or its
presentation,
that
properly
communicates the results to the
client.
What is a Marketing Information System (MIS)?
A marketing information system consists of
people, equipment, and procedures to gather,
sort, analyze, evaluate, and distribute needed,
timely, and accurate information to marketing
decision makers.
Objectives
 Understand the importance
of information to the
company.
 Know the definition of a
marketing information
system and be able to discuss
its subparts.
 Learn the steps in the
marketing research process.
Objectives
 Learn how companies
analyze and distribute
marketing information.
 Realize the special issues
some marketing researchers
face, including public policy
and ethical issues.
Characteristics of Marketing Information System
 Information- Accurate, continuous
flow to all
 Scientific base with the help of OR
techniques
 Future Oriented
 Ongoing Process
 It provides pertinent information,
collected from sources both internal
and external to the company, for use
as the basis of marketing decision
making.
Need for Marketing Information System
 Complexity of Marketing
 Competitor Analysis
 Demand Forecasting
 Better understanding of
the consumer
 New Innovation
 Economic Indicators
 Planning of resources
Components of marketing Information System
SOURCES OF INFORMATION
Internal
Reporting
System
Marketing
Intelligence
System
INFORMATION
Marketing
Managers
Assessment of
Needs
2. Distribution
Marketing
Environments
1.
An
Analytical
Marketing
System
Marketing
Research
System
Marketing Decisions and Communications
Analysis, Planning,
Implementation, Control
Developing Information
Assessing
Information
Needs
Internal
Records
Marketing
Intelligence
Distributing
Information
Decision
Support
Marketing
Research
Marketing Decisions and Communications
Marketing Environment
Marketing Information System
Target Markets, Marketing Channels, Suppliers,
Competitors, Publics, Macro-environment Forces
Marketing Managers
Kotler Model of MKIS
 Internal Marketing System
 Detailed reports on Orders, Sales, Prices, Inventory Levels, Payables and
so on
 Marketing Intelligence System
 Marketing research is focused, Market intelligence is not
 Unfocused Scanning -The manager, by virtue of what he/she reads,
hears and watches exposes him/herself to information that may prove
useful. Whilst the behavior is unfocused and the manager has no
specific purpose in mind, it is not unintentional
 Semi-Focused Scanning -Again, the manager is not in search of
particular pieces of information that he/she is actively searching but
does narrow the range of media that is scanned. For instance, the
manager may focus more on economic and business publications,
broadcasts etc. and pay less attention to political, scientific or
technological media.
 Informal Search -This describes the situation where a fairly
limited and unstructured attempt is made to obtain
information for a specific purpose. For example, the marketing
manager of a firm considering entering the business of
importing frozen fish from a neighboring country may make
informal inquiries as to prices and demand levels of frozen and
fresh fish.
 Formal Search -This is a purposeful search after information in
some systematic way. The information will be required to
address a specific issue. Whilst this sort of activity may seem
to share the characteristics of marketing research it is carried
out by the manager him/herself rather than a professional
researcher.
Marketing Decision Support System
.. a coordinated collection of data, systems, tools and
techniques with
supporting software and hardware
by which an organization
gathers and interprets relevant information from business
and environment and
turns it into a basis for marketing action.
-Kotler
Marketing Decision Support System
... a set of statistical tools and decision models
with supporting hardware and software
available to marketing managers to assist them
in analyzing data and making better marketing
decisions.
-Dyer and Forman
Characteristics of DSS
 DSS offer users flexibility, adaptability, and a quick
response
 DSS allow users to initiate and control the input and
output
 DSS operate with little or no assistance from professional
programmers
 DSS provide support for decisions and problems whose
solutions cannot be specified in advance
 DSS use sophisticated analysis and modeling tools
Identifying DSS Problem
 Problems should be identified by users
 There must be a body of data to work with and analyze
 The problem must be one for which no simple formula
provides a solution
 There must be some systematic way of thinking about
the problem that a DSS can automate or assist
 The problem must be important enough to engage the
time and energy of management groups ranging from
first line supervisors to senior management
Components of DSS
DSS
Database
Internal Records
Marketing Intelligence
Marketing Research
DSS Software System
Decision Models
OLAP Tools
Data Mining Tools
User
Interface
Interactive
Quick response
(Adapted from Laudon and Laudon)
Levels of DSS
Level 1
Level 2
Level 3
Data Management
Data acquisition, storage and retrieval
Data Analysis
Finding and analyzing relationships
between variables
Decision Analysis
Prioritization and choice among
decision alternatives
DSS Level 1 – Data Management
 Tools
 Database
 Database management system
(DBMS)
 Query facilities
 Report writers
 Document and image
management system
DSS Level 1-Data Management
 The difficulties
 The amount of data increases exponentially
 Data
are
scattered
through
out
organizations and are collected by many
individuals using several methods and
devices
 Only small portions of an organization’s
data are relevant for specific decisions
 An ever-increasing amount of external data
needs to be considered in making decisions
DSS Level 2 – Data Analysis
 Basic data analysis tools
 Spreadsheet
What-if analysis
 Goal seeking analysis
 Sensitivity analysis
 Graphical tools
 Statistical tools

DSS Level 2-Data Analysis
 OLAP (online analytical processing)
tools
 Access very large amounts of data
 Analyze the relationships between
many types of business elements
 Involve aggregated data
 Compare aggregated data over time
periods
 Present data in different perspectives
 Involve complex calculations
between data elements
DSS Level 3 -Decision Analysis
 Nature of Marketing criteria
 Quantitative criteria
Monetary
e.g. $ sales value, costs,
contribution
 Non-monetary
e.g. sales growth rate, market
share
 Qualitative criteria
e.g. image, satisfaction

DSS Level 3 -Decision Analysis
 Difficulties in decision making
 Human cognitive limitations
Short term memory (7+2)
 Scaling technique
 Need to combine different scales
 No scales for qualitative factors

Measurement
 The assignment of numbers
to characteristics of objects,
persons, states, or events,
according to rules
Scales of Measurement
 What you can or cannot
say about the object
 Which statistical analyses
Interval
you may use
• Performance rating
on a 0 to 10 scale
Nominal
7
3
6
1
2
3
• Numbers assigned
to runners
Ordinal
• Rank order of winners
Ratio
• Time to finish
Components of Measurement
 True Characteristic: Direct reflection of the characteristic of interest
 Short term characteristic of Respondent: hunger, fatigue or anger
 Situational characteristic : reflection of the surroundings in which the




measurement is taken
Characteristic of the measurement process: reflection of the interviewer,
interviewing method and the like
Characteristics of the measuring instrument : reflection of ambiguous or
misleading questions
Characteristics of the response process: reflection of mistaken replies
caused by checking wrong response and the like
Characteristics of the analysis: reflection of mistakes in coding, tabulating
and the like
Mapping Rules
 Classification
 Order
 Distance
 Origin
Difficulty of Measurement
 Dangerfield
Syndrome
 Less Training
 Delegation
 Response is
Inaccurate
 Irrelevant Data
Secondary Data
 Problems Encountered with Secondary Data
 Availability
 Relevance
 Accuracy
 Sufficiency
 Internal sources of Secondary data
 Accounting Records
 Sales Force Reports
 Miscellaneous Reports
 Internal Experts
 External Sources Of Secondary data
 Computerized databases
 Bibliographic databases
 Numeric databases
 Database Systems
 Associations
 Government agencies





Data on Population, Income, and Housing
Data on Industrial and Commercial Product sales, Agricultural
producers, wholesalers, retailers and Service Organizations
Data on Financial and other Characteristics of Firms
Data on Employment
Miscellaneous reports
 Syndicated services


Directories
Other Published Sources
 External Experts
 International secondary data



Nature of International secondary data
Internal Sources of International Secondary data
External Sources of Secondary data
 Databases
 Foreign Government Sources
 U.S. Govt.
 International Political Organizations
Attitude
 A predisposition or a tendency to
respond positively or negatively
towards a certain idea, object,
person, or situation. Attitude
influences an individual's choice of
action and responses to challenges,
incentives, and rewards (together
called stimuli).
Procedure In Attitude Scaling
 Collection of data
 Processing of the data
 Formation of Scale
Components of Attitude
 Cognitive Component
 Affective Component
 Behavioral Component
Advanced Scaling Techniques
 Single Item Scales







Itemized Category Scales
Rank Order Scales
Comparative Scales
Paired Comparison Scales
Constant Sum Scales
Pictorial Scales
Q-Sort Scale
 Considerations for Developing Single Item Scales
 Number of Scale category
 Types of Poles used in the scale
 Balance of Scale
 Strength of Anchor
 Types of Poles used in the scale
 Labeling of Categories
 Continuous Scales
 Multi Item Scales
 Profile Analysis
 Thurstone type of Scale
 Likert Scales
 Semantic differential
 Stapel Scales