Chapter One
Introduction to Marketing Research
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Chapter Outline
1) Overview
2) Definition of Marketing Research
3) A Classification of Marketing Research
4) Marketing Research Process
5) The Nature of Marketing Research
6) Marketing Research Suppliers and
Services
7) Selecting a Research Supplier
8) Careers in Marketing Research
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Chapter Outline
9) The Role of Marketing Research in MIS and
DSS
10) The Department Store Project
11) Marketing Research Associations Online
12) Summary
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Marketing Research
‘The systematic gathering, recording
and analysing of data about
problems relating to the marketing
of goods and services’
American Marketing Association
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Redefining Marketing Research
The American Marketing Association
(AMA) redefined Marketing Research as:
The function which links the consumer, the
customer, and public to the marketer
through INFORMATION
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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
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Therefore…..
Marketing research is the systematic and objective
identification
collection
analysis
dissemination
and use of information
for the purpose of improving decision making related to
the
identification and
solution of problems and opportunities in
marketing.
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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
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Science or Art?
Objectivity of Investigator
Unbiased
Procedural integrity
Accurate reporting
Accuracy of Measurement
Valid and Reliable
Meaningful and useful
Appropriate design (sample, execution)
Open-minded to Findings
Willing to refute expectations
Acknowledge limitations
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Science or Art?
Objectivity of Investigator
Unbiased
Procedural integrity
Accurate reporting
Accuracy of Measurement
Valid and Reliable
Meaningful and useful
Appropriate design (sample, execution)
Open-minded to Findings
Willing to refute expectations
Acknowledge limitations
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Difficulties of Achieving
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“Scientific Studies” in Marketing
Investigator is deeply involved in
the use of the results.
Imprecise measuring devices
Very complex and interrelated
subject matter
Difficulty using experiments
Influence of the measurement
process on results
Time pressure for results
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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.
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A Classification of Marketing Research
Fig 1.1
Marketing Research
Problem Problem Solving
Identification Research Research
Market Potential Research
Segmentation Research
Market Share Research
Market Characteristics Research Product Research
Sales Analysis Research Promotion Research
Forecasting Research Distribution Research
Business Trends Research
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Eureka Forbes….
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Problem Solving Research
Table 1.1
SEGMENTATION RESEARCH
Determine the basis of segmentation
Establish market potential and
PRODUCT RESEARCH
responsiveness for various
segments Test concept
Select target markets
Determine optimal product design
Create lifestyle profiles:
Package tests
demography, media, and
product image characteristics Product modification
Brand positioning and
repositioning
Test marketing
Control score tests
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Samsung 3 Door Refrigerator
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20
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Fashionable Swatch Wrist Watches
21
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22
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Problem Solving Research
Table 1.1 cont. PROMOTIONAL RESEARCH
Optimal promotional budget
0.00% APR Sales promotion relationship
Optimal promotional mix
Copy decisions
Media decisions
Creative advertising testing
Evaluation of advertising effectiveness
PRICING RESEARCH Claim substantiation
Pricing policies
Importance of price in brand selection
Product line pricing
Price elasticity of demand $ALE
Initiating and responding to price changes
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The New Titan Raga Collection
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Problem Solving Research
Table 1.1 cont.
DISTRIBUTION RESEARCH
Determine…
Types of distribution
Attitudes of channel members
Intensity of wholesale & resale coverage
Channel margins
Location of retail and wholesale outlets
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Marketing Research Process
Step 1: Problem Definition
Step 2: Development of an Approach to
the Problem
Step 3: Research Design Formulation
Step 4: Fieldwork or Data Collection
Step 5: Data Preparation and Analysis
Step 6: Report Preparation and
Presentation
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The Role of Marketing Research
Fig 1.2 Customer Groups
• Consumers
• Employees
• Shareholders
• Suppliers Uncontrollable
Controllable Environmental
Marketing Factors
Variables
Marketing •Economy
•Product
Research •Technology
•Pricing
•Laws &
•Promotion Regulations
•Distribution •Social & Cultural
Assessing Marketing Factors
Providing
Information Information Decision •Political Factors
Needs Making
Marketing Managers
• Market Segmentation
• Target Market Selection
• Marketing Programs
• Performance & Control
The role of MR in Marketing decision
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making:
MR is being surrounded by Marketing managers,
Customer groups, Controllable marketing variables
and Uncontrollable environmental factors.
Assessing information needs, providing information
and marketing decision making will supplement the
MR.
Marketing managers have to take care of market
segmentation, target market selection, marketing
programes and performance and control.
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MR & Competitive Intelligence:
Competitive intelligence may be defined as
the process of enhancing market place
competitiveness through a greater
understanding of a firm’s competitors and
the competitive environment.
It involves the legal collection and analysis
of information regarding the capabilities,
vulnerabilities and intentions of business
competitors, conducted by using
information databases and other open
sources and through ethical marketing
research inquiry.
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Marketing Research Suppliers & Services
Fig 1.3
RESEARCH
INTERNAL SUPPLIERS EXTERNAL
FULL SERVICE LIMITED SERVICE
Field Branded
Syndicate Internet Products
Services
Services Services and Services
Customiz Coding and
Standardized
ed Data Entry Data
Services
Services Services Analysis
Analytical
Services Services
Selected Marketing Research
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Career Descriptions
Fig 1.4
Vice-President of Marketing Research: The senior position in
marketing research. The vice president (VP) is responsible for the
entire marketing research operation of the company and serves
on the top management team. This person sets the objectives and
goals of the marketing research department.
Research Director: Also a senior position. The research director has
the general responsibility for the development and execution of all
the marketing research projects.
Assistant Director of Research: Serves as an administrative assistant
to the director and supervises some of the other marketing
research staff members.
(Senior) Project Manager: Has overall responsibility for design,
implementation, and management of research projects.
Statistician/Data Processing Specialist: Serves as an expert on
theory and application of statistical techniques. Responsibilities
include experimental design, data processing, and analysis.
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Selected Marketing Research Career Descriptions
Fig 1.4 cont.
Research Director
Vice President of Marketing
Research • Also part of senior
• Part of company’s top management
management team • Heads the development
• Directs company’s entire market and execution of all
research operation research projects
• Sets the goals & objectives of the
marketing research department Assistant Director of Research
•Administrative assistant to director
•Supervises research staff members
Senior Project Manager
• Responsible for design, implementation, &
research projects
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Selected Marketing Research Career Descriptions
Fig 1.4 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 • Serves as expert on theory and
project application on statistical techniques
• Designs & pretests questionnaires • Oversees experimental design, data
• Conducts preliminary analysis of processing, and analysis
data
Junior Analyst Fieldwork Director
• Secondary data analysis • Handles selection, training,
• Edits and codes questionnaires supervision, and evaluation of
• Conducts preliminary analysis of data interviewers and field workers
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Marketing Research Suppliers & Services
Internal suppliers
External suppliers
Full-service suppliers
Syndicated services
Standardized services
Customized services
Internet services
Limited-service suppliers
Field services
Coding and data entry services
Analytical services
Data analysis services
Branded marketing research products
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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.
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Careers in Marketing Research
1.Career opportunities are available with marketing
research firms (e.g., AC Nielsen, Burke, Inc.,
M/A/R/C)
2.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, United States
Census Bureau)
3.Advertising agencies (e.g., BBDO International,
Ogilvy & Mather, J. Walter Thompson, Young &
Rubicam)
4.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.
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Preparation for a Career in Mktg. Research
1.Take all the marketing courses you can.
2.Take courses in statistics and quantitative
methods.
3.Acquire Internet and computer skills.
Knowledge of programming languages is an
added asset.
4.Take courses in psychology and consumer
behavior.
5.Acquire effective written and verbal
communication skills.
6.Think creatively. Creativity and common
sense command a premium in marketing
research.
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Management Information Systems vs.
Decision Support Systems
MIS DSS
Structured Problems
Unstructured Problems
Use of Reports
Use of Models
Rigid Structure
User Friendly Interaction
Information Displaying
Adaptability
Restricted
Can Improve Decision
Can Improve Decision Making
Making by Using “What if”
by Clarifying Data
Analysis
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The Dept. Store Project
The following information was solicited:
1. Familiarity with the ten department stores.
2. Frequency with which household members shopped at
each of the ten stores.
3. Relative importance attached to each of the eight
factors of the choice criteria.
4. Evaluation of the ten stores on each of the eight
factors of the choice criteria.
5. Preference ratings for each store.
6. Rankings of the ten stores (from most preferred to
least preferred).
7. Degree of agreement with 21 lifestyle statements.
8. Standard demographic characteristics (age, education,
etc.)
9. Name, address, and telephone number.
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M.R. Agencies:
In India:
Lintas India Ltd. & Pathfinders India
IMRB – Indian Marketing Research Bureau
HTA – Hindustan Thompson Associates Ltd.
MARG – Marketing & Advertising Research Group
ORG – Operations Research Group
NCAER – National Council of Applied Economic Research
MODE – Marketing Operations Design and Enquiry
Service
MRAS – Marketing Research and Advisory Services
MBS – Marketing and Business Associates
CSO & CSB – Central Statistical Organization & Bureau
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IMRB
It is the largest MR agency in India, promoted
by HTA (Hindusthan Thompson Associates),
established in 1971.
The wide ranging research services provided by
IMRB can be classified into two broad
categories:
1. Customer Specific Research services :
=>Consumer Research
=>Industrial Market Research
=>Qualitative Research
=>Media Research ….contd
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IMRB
2.Syndicated Research Services (Especially
in the field of Market Measurement and
Media planning):
=>The National Readership Survey (NRS)
=>Businessmen’s Readership Survey (BRS)
=>Television Rating Points (TRP) System
=>Market Pulse – household purchase
panel
=>Rural Market Probe
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Other Studies
ORG :
=>Retail Stores Audit on Consumer Products as
well as Pharmaceutical Products
=>Prescription Audit
=>Market Pulse
Government Publications :
=>Statistical Abstract of India
=>Annual Survey of Industries
=>Reserve Bank Bulletins
=>Census Report
Non – Government Publications
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Marketing Research Associations Online
Domestic
AAPOR: American Association for Public Opinion Research
(www.aapor.org)
AMA: American Marketing Association (www.ama.org)
ARF: The Advertising Research Foundation (www.amic.com/arf)
CASRO: The Council of American Survey Research Organizations
(www.casro.org)
MRA: Marketing Research Association (www.mra-net.org)
QRCA: Qualitative Research Consultants Association
(www.qrca.org)
RIC: Research Industry Coalition (www.research industry.org)
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Marketing Research Associations Online
International
ESOMAR: European Society for Opinion and Marketing
Research (www.esomar.nl)
MRS: The Market Research Society (UK)
(www.marketresearch.org.uk)
MRSA: The Market Research Society of Australia
(www.mrsa.com.au)
PMRS: The Professional Marketing Research Society (Canada)
(www.pmrs-aprm.com)
HORIZONS/OPPORTUNITIES
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Re-define the Address industry
market for MR issues
pro-actively
Develop new
business models
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I Issues & Trends in M.R.:
Importance of Marketing strategy
Product variety & customization
Emphasis on quality
Advanced technology
In creased complexity of business environment
Intense competition.
Customized research---- A type of research conducted by the MR
Agency for its client. The whole research project is designed to collect
the information as required by a particular client.
In-house research----Research conducted by the staff within the firm.
Outside- research services( hiring) --- Include MR Agencies, Ad
Agencies (copy research) & Consultants.
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Some recent trends:
More than 72% of the firms are investing on
Innovation.
Customer delight at low cost – through e-
marketing.
Right Ergonomics pays rich dividends - ROI,
studies have shown that a return of up to $ 17.80
for every $1 invested.
The new practice of Global Product Development -
Current approach includes, co- location of cross-
functional teams, to foster close collaboration
among engineering, marketing, manufacturing
and supply- chain functions.
Sales by Multi- product Retailers…
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