Marketing Management

Sixteenth Edition

Chapter 5
Conducting Marketing
Research

Copyright © 2022, 2016, 2012 Pearson Education, Inc. All Rights Reserved
Learning Objectives
5.1 Define the scope of marketing research.
5.2 Explain the marketing research process, how to gather
and analyze market data, and how to develop a research
plan.
5.3 Explain how to measure and forecast market demand.
5.4 Define the different approaches to measuring marketing
productivity.

Copyright © 2022, 2016, 2012 Pearson Education, Inc. All Rights Reserved
 The Scope of
marketing research
• Importance of marketing insights
– Generating insights (how and why we observe
certain effects in the marketplace)

Copyright © 2016 Pearson Education Ltd. 4-3

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The real value of market research lies in the customer insights derived from research:

Customer insights are fresh understandings of

customers and the marketplace derived from
marketing information that become the basis for
creating customer value and relationships.

Many companies are now restructuring their marketing

research functions. They are creating customer
insights teams.
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Redefining Marketing Research

The American Marketing Association (AMA)

redefined Marketing Research as:

The function that links the consumer, the

customer, and public to the marketer
through INFORMATION.
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The Role of Marketing Research

Customer Groups
• Consumers
• Employees
• Shareholders
• Suppliers Uncontrollable
Controllable Environmental
Marketing Factors
Variables

•Product
Marketing •Economy
Research •Technology
•Pricing
•Laws &
•Promotion Regulations
•Placing/ •Social & Cultural
Distribution Marketing Factors
Assessing Providing
Information Information Decision •Political Factors
Needs Making

Marketing Managers
• Market Segmentation
• Target Market Selection
• Marketing Programs
• Performance & Control
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Apple store : results of marketing research

1. Store layout: thy physical layout and location of items in
a store.
Example: Apple Store

2. Store atmospherics: the way the store’s internal

environment affects the shopper’s mood and willingness to
visit and linger.

• Example: Steve Jobs on atmospherics

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Developing marketing information Systems

© Alexander Zschach | Dreamstime.com © Micromann | Dreamstime.com © Roberto1977 | Dreamstime.com

Internal Competitive Marketing

Databases marketing research
intelligence
 Figure 4.1
The Marketing Research Process

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Case Study: David Jones

One day I received a
phone call from a
research analyst who
introduced himself as
one of our alumni.
He was working for a
department store in
Sydney and wanted help
analyzing the data he
had collected while
conducting a market
research study.
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Case Study: David Jones

When we met, he presented me with a copy of the

questionnaire and asked how he should analyze
the data. My first question to him was,
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Case Study: David Jones

When he looked
perplexed, I
explained that data
analysis is not an
independent
exercise.

Rather, the goal of data analysis is to PROVIDE

INFORMATION RELATED TO THE PROBLEM
COMPONENTS.
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Case Study: David Jones

I was surprised to learn that he did
not have a clear understanding of
the market research problem and
that a written definition did not
exist. So before going any further,
I had to define the research
problem and objectives.

Once that was done, I found that

much of the data collected was not
relevant to the problem. In this
sense, the whole study was a waste
of resources. A new study had to be
designed and implemented to
address the problem defined.
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Step 1: Defining the problem and the research

objectives

Defining the problem Exploratory Descriptive

and the research research research
objectives is often
the hardest step in
the research process
Causal research
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Case Discussion: David Jones

Video Link: DAVID JONES

• What is the possible research problem?

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A Comparison of Types in Research Objectives

Exploratory Descriptive Causal
Objective: Discovery of ideas Describe market Determine
and insights characteristics cause and
or functions effect
relationships
Characteristics: Flexible, versatile Marked by the
prior formulation Manipulation of
of specific independent
hypotheses variables, effect
Often the front end on dependent
of total research Preplanned and variables
design structured
design Control
mediating
Methods: Interviews Surveys variables
Case studies Panels
qualitative analysis Observation Experiments
quantitative quantitative
analysis analysis
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Step 2: Developing the research plan (Research design)

2.1 Sources of 2.2 Research

data approaches

2.3 Data
2.4 Sampling
collection
plans
methods

2.5 Instruments
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2.1 sources of data

Primary
data

Secondary
data
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Primary Vs. Secondary Data

• Primary data are originated by a researcher for

the specific purpose of addressing the problem at
hand.

• Secondary data are data that have already been

collected for purposes other than the problem at
hand. These data can be located quickly and
inexpensively.
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A Comparison of Primary & Secondary Data

Primary Data Secondary Data

Collection purpose For the problem at hand For other problems

Collection process Very involved Rapid & easy
Collection cost High Relatively low
Collection time Long Short
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Gathering data: Sources of secondary data

Source category Selected examples
Internal sources Company profit and loss statements, balance sheets,
sales figures, sales call reports, invoices, inventory
records and prior research reports.

Government Australian Bureau of Statistics:

e.g. Year Book Australia (Cat. No. 1301.0)
publications
Household Expenditure Survey (Cat No.6530.0)
CDATA online from http://www.abs.gov.au
Other government departments
e.g. Tourism Research Australia, ABARE, BTE, RIRC

Periodicals & books Indexes: Business Periodicals Index

Business press: Australian Financial Review, Australian
Business Monthly & BRW
Trade Press: AdNews, Marketing Magazine

Commercial data Content Aggregation Services:

e.g. Ibis World, Datamonitor, Euromonitor
Market Research Services: e.g. AC Nielsen, Roy
Morgan, AMR Quantum, Sweeney Research
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2.2 Research approaches

Primary data collection depends on Research

approaches, which is divided into:

Qualitative
research Quantitative
(e.g. Focus
research
group (e.g., Survey,
discussion, Observation,
Depth Experiments)
interview)

Mixed
methods
research
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Qualitative Vs. Quantitative Research

Qualitative Research Quantitative Research

Objective To gain a qualitative To quantify the data and

understanding of the generalize the results from
underlying reasons and the sample to the population
motivations

Approach Exploratory Descriptive + Causal

Sample Small Large

Data Unstructured Structured

(Focus group, Depth (Survey, observation,
Interview) experiment)

Analysis Non-statistical Statistical

Develop an initial Recommend a final course of

Outcome understanding action
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2.3.1 Primary Data Collection Methods

(Qualitative Research)
• Focus Group Discussion: An interview conducted by a
trained moderator among a small group of respondents in
an unstructured and natural manner.Example.

• Depth Interview: An unstructured, direct, personal

interview in which a single respondent is probed by a
highly skilled interviewer to uncover underlying beliefs,
attitudes and feelings on a topic. Depth Interview with Bill
Gates

• Projective Techniques: An unstructured and indirect form

of questioning that encourages respondents to project
their underlying attitudes or feelings regarding the issues
of concern. (Picture Association)
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Example : Picture Testing

P-1 P-2 P-3

P-4 P-5 P-6

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2.3.2 Primary Data Collection: Quantitative Research

(Survey, Observation and Experiments)

Mail Telephone
Survey Survey

Personal Electronic
Survey Survey
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Online marketing research

Collecting primary
data online through
internet surveys,
online focus groups,
web-based
experiments, or by
tracking consumers’
online behaviour
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Real time Analytics & Innovation

• www.digitalmarketingnext.org
(Google Analytics)

• www.similarweb.com
(Comparative analytics sites)

• www.socialblade.com
(social media analytics sites)

• https://website.grader.com/
(performance of a website)
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2.4 Sampling plans

• A sample is a segment of the population selected for

marketing research to represent the population as a
whole
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2.5 Research instruments for quantitative survey

• The questionnaire or survey is by far the most

common research instrument
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Step 3: Collect the information

• After designing the research and

data collection plan, the researcher
needs to put the marketing research
plan into action (data collection).
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Step 4: Analyze the information

• The researcher must now analyse

the data, interpret the findings, draw
conclusions and report them to
management
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What is our Magic as A Marketing Analyst?

Source: Competing on analytics (Davenport, 2016)

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Software used in analytics…

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Step 5: Present the findings

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Example: Interpreting and reporting the findings

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MARKET RESEARCH FINDINGS

“Alternative”, Dare Iced Coffee : Result of Market
Research.
Dare Iced Coffee is being pitched as an alternative to
enjoying coffee in a cafe.

Dial-up Broadband
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Step 6: Make decisions (Case on Best Buy)

Using quantitative, qualitative, and observational research, Best Buy devel-
oped five customer personas to guide the redesign and relaunch of
GeekSquad.com, its national computer-support service:
• “Jill”—a suburban mom who uses her computer daily and de- pends on the
Geek Squad as on a landscaper or plumber.
• “Charlie”—a 50-plus male who is curious about technology but needs an
unintimidating guide.
• “Daryl”—a technologically savvy hands-on experimenter who oc- casionally
needs a helping hand.
• “Luis”—a time-pressed small business owner whose primary goal is to
complete tasks as expediently as possible.
• “Nick”—a prospective Geek Squad agent who views the site criti- cally and
needs to be challenged.
To satisfy Charlie, a prominent 911 button was added to the upper right-hand
corner in case a crisis arose, but to satisfy Nick, Best Buy created a whole
channel devoted to geek information.
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DEMONSTRATION:
IBM SPSS FOR SEGMENTATION

LET’S DO A SEGMENTATION FOLLOWING

BEST BUY CASE
Table 4.2: Good Marketing Research

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 Measuring Marketing Productivity

• Marketing metrics

• Marketing-mix
modeling

• Marketing
dashboards

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 Marketing metrics
• Measures that help marketers quantify,
compare, and interpret performance

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Customer Relationship
Loyalty programs

Apple Customer Service

43
 MARKETING-MIX MODELING
• Analyzes data from a variety of sources, such as retailer
scanner data, company shipment data, pricing, media,
and promotion spending data, to understand more
precisely the effects of specific marketing activities
(cause & effect modeling).

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 Marketing Dashboards
• “A concise set of interconnected
performance drivers to be viewed in
common throughout the organization.”

 Customer-performance scorecard

Stakeholder-performance scorecard

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 Table 4.4

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 Figure 4.3
Example of A Marketing Dashboard

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