Marketing Research Defined

Marketing Research is the systematic and

objective identification, collection, analysis and use of

information for the purpose of improved decision

making related to the identification and solution of
problems and opportunities in Marketing.
American Marketing Association

Problem Definition: Understand the

Symptoms of the Problem
Organization

Symptoms

Twenty-year-old

Membership has

neighborhood

been declining for

swimming

years. New water

association in a

park with wave pool

major city.

Problem Definition
Based on Symptom
Neighborhood

True Problem
Demographic changes:

residents prefer the Children in this 20-yearexpensive water

old neighborhood have

and water slides

park and have

grown up. Older

moved into town a

negative image of

residents no longer

few years ago.

swimming pool.

swim anywhere.

The Iceberg Principle

The principle indicating that the dangerous
part of many business problems is neither
visible to nor understood by managers.

Classification of Marketing Research

Marketing Research

Problem Identification
Research
- Market Potential
- Market Share
- Image Research
- Market Characteristics
- Sales Analysis
- Forecasting Research

- Business Trends
Research

Problem Solving Research

- Segmentation Research: basis of segmentation; establish
market potential & responsiveness for various segments; select
target markets and create lifestyle profiles; demography, media
and product image characteristics.
- Product Research: concept testing, package testing, product
modification, brand positioning and repositioning, market
testing, control store tests.
- Pricing Research: relevance of pricing in brand selection, pricing
policies, price elasticity of demand, response to price changes.
- Promotion Research: budget, sales and promotion relationship,
IMC campaign, copy and media decisions, creative testing,
evaluation of adv. effectiveness.
- Distribution Research: type, attitudes of channel members,
channel margins, location of retail and wholesale outlets.

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

Management Decision Problem Vs.

Research Problem
Management Decision Problem
Should a new product be
introduced?

Research Problem/ Questions

To determine consumer
preferences and purchase intentions
for the proposed new product.

Should the advertising

campaign be changed?

To determine the effectiveness

of the current advertising
campaign.

Should the price of the

brand be increased?

To determine the price elasticity

of demand and the impact on sales
and profits of various levels
of price changes.

A Classification of
Research Designs
Research Design
Conclusive
Research Design

Exploratory
Research Design

Descriptive
Research
Cross-Sectional
Design
Single CrossSectional Design

Causal
Research

Longitudinal
Design

Multiple CrossSectional Design

Exploratory & Conclusive Research

Differences
Exploratory

Conclusive

Objective:

To provide insights and

understanding.

To test specific hypotheses and

examine relationships.

Characteristics:

Information needed is defined only

loosely. Research process is
flexible and unstructured. Sample
is small and non-representative.
Analysis of primary data is
qualitative.

Information needed is clearly defined.

Research process is formal and
structured. Sample is large and
representative. Data analysis is
quantitative.

Findings/
Results:

Tentative.

Conclusive.

Outcome:

Generally followed by further

Findings used as input into decision
exploratory or conclusive research. making.

Consumption of Various Soft

Drinks by Various Age Cohorts
Percentage consuming on a typical day
Age

1950

1960

8-19
20-29
30-39
40-49
50+

52.9
45.2
33.9
23.2
18.1

62.6
60.7
46.6
40.8
28.8
C1

C1: cohort born prior to 1900

C2: cohort born 1901-10
C3: cohort born 1911-20
C4: cohort born 1921-30

1969

73.2
76.0
67.7
58.6
50.0
C2

1979

81.0
75.8
71.4
67.8
51.9
C3

C8
C7
C6
C5
C4

C5: cohort born 1931-40

C6: cohort born 1940-49
C7: cohort born 1950-59
C8: cohort born 1960-69

The Sampling Design Process

Define the Population

Determine the Sampling Frame

Select Sampling Technique(s)

Determine the Sample Size

Execute the Sampling Process

Classification of Sampling Techniques

Sampling Techniques

Probability
Sampling Techniques

Non probability
Sampling Techniques

Convenience
Sampling

Simple Random
Sampling

Judgmental
Sampling

Systematic
Sampling

Quota
Sampling

Stratified
Sampling

Snowball
Sampling

Cluster
Sampling

QUESTIONNAIRE DESIGN

Questionnaire Definition
A questionnaire is a formalized set of

questions for obtaining information from

respondents.
Questionnaire technique is generally associated
with Survey research, but it is also frequently used

as the measurement instrument in experimental

(causal) research.

Questionnaire Design Process

1)
2)
3)
4)
5)
6)
7)

Preliminary Decision
Question Content
Question Phrasing
Response Format
Question Sequence
Layout of the questionnaire
Pretest and Revision

Questionnaire Design Checklist

Step 1.

Specify The Information Needed

Step 2.

Type of Interviewing Method

Step 3.

Individual Question Content

Step 4.

Overcome Inability and Unwillingness to Answer

Step 5.

Choose Question Structure

Step 6.

Choose Question Wording

Step 7.

Determine the Order of Questions

Step 8.

Form and Layout

Step 9.

Reproduce the Questionnaire

Step 10. Pretest

Questionnaire Checking
A questionnaire returned from the field may be
unacceptable for several reasons.
Parts of the questionnaire may be incomplete.
The responses show little variance.
One or more pages are missing.
The questionnaire is received after the preestablished
cutoff date.
The questionnaire is answered by someone who does
not qualify for participation.

Coding
Coding means assigning a code, usually a number, to each possible
response to each question. The code includes an indication of the
column position (field) and data record it will occupy.
Coding Questions
Fixed field codes, which mean that the number of records for each respondent is the
same and the same data appear in the same column(s) for all respondents, are highly
desirable.
If possible, standard codes should be used for missing data. Coding of structured
questions is relatively simple, since the response options are predetermined.
In questions that permit a large number of responses, each possible response option
should be assigned a separate column.