OHT 6.

Marketing information and research

Brassington and Pettitt: Principles of Marketing, 3rd Edition © Pearson Education Limited 2003
 OHT 6.2
The Nature of Marketing
Marketing: “The process of planning and executing the conception,
pricing, promotion, and distribution of ideas, goods, and services to
create exchanges that satisfy individual and organizational objectives.”

Marketing
Concept

Brassington and Pettitt: Principles of Marketing, 3rd Edition

Chapter One
2
© Pearson Education Limited 2003
 OHT 6.3

Importance of effective marketing information and

research

Effective penetration of markets requires specialised and

sophisticated approaches to identify, assess and satisfy
market demands.

Effective marketing information and research enables an

organisation to make better decisions on the most
appropriate market entry and competitive strategies.

Brassington and Pettitt: Principles of Marketing, 3rd Edition © Pearson Education Limited 2003
 OHT 6.4

Defining information requirements

Table 6.1

Brassington and Pettitt: Principles of Marketing, 3rd Edition © Pearson Education Limited 2003
 OHT 6.5
Marketing Research Defined

••Marketing
Marketingresearch
researchisisthe
thefunction
functionof
oflinking
linking
the
the consumer,
consumer, customer,
customer, and
and public
public to
to the
the
marketer
marketerthrough
throughinformation.
information.

•• Also,
Also, the
the planning,
planning, collection,
collection, and
and analysis
analysis
of
of data
data relevant
relevant toto the
the marketing
marketing decision
decision
making
making andand the
the communication
communication of of the
the results
results
of
ofthis
thisanalysis
analysistotomanagement.
management.

The Marketing Research Association:

Brassington and Pettitt: Principles of Marketing, 3rd Edition

Chapter One
5
© Pearson Education Limited 2003
 OHT 6.6 Defining market research
Marketing research is the function which links the
consumer, customer, and public to the marketer through
information - information used to identify and define
marketing opportunities and problems; generate, refine
and evaluate marketing actions, monitor marketing
performances, and improve understanding of marketing
as a process.
Marketing research specifies the information required to
address those issues; designs the method of collecting
information; manages and implements the data
collection process; analyses the results; and
communicates the findings and their implications.
McDonald and Gates, 1990
Brassington and Pettitt: Principles of Marketing, 3rd Edition © Pearson Education Limited 2003
 OHT 6.7 Market Research vs Marketing Research
(strictly speaking...)

Market Research Researching the immediate competitive

environment of the marketplace, including
customers, competitors, suppliers,
distributors and retailers
Marketing Research Includes all the above plus:
- companies and their strategies for products
and markets
- the wider environment within which the firm
operates (e.g. political, social, etc)

Brassington and Pettitt: Principles of Marketing, 3rd Edition © Pearson Education Limited 2003
 OHT 6.8
What is Marketing Research?
AMA definition
• Marketing research: the function that links the
consumer, customer, and public to the
marketer through information – information
used to identify and define marketing
opportunities and problems; generate, refine,
and evaluate marketing actions; monitor
marketing performance; and improve the
understanding of marketing as a process.

Ch 1
Brassington and Pettitt: Principles of Marketing, 3rd Edition
8
© Pearson Education Limited 2003
 OHT 6.9
Market Research vs. Marketing
Research
• Market research: the “systematic gathering,
recording, and analyzing of data with respect
to a particular market, where ‘market’ refers
to a specific group in a specific geographic
area.”

Ch 1
Brassington and Pettitt: Principles of Marketing, 3rd Edition
9
© Pearson Education Limited 2003
 OHT 6.10

The role of marketing research

• Consumer markets - In EU important to manufacturers

as retailers act as buffer between manufacturers and
end consumer. Provides accurate and reliable flow of
information to the marketing decision makers.

• B2B markets - Helps organisations understand the

marketing environment and make better informed
decisions about marketing strategies.

Brassington and Pettitt: Principles of Marketing, 3rd Edition © Pearson Education Limited 2003
 OHT 6.11

Sources of marketing information

• External sources - ad hoc studies using secondary or

primary research or continuous data which contains
views from customers, suppliers, channels of
distribution, strategic alliance partners, independent third
parties, etc.

• Internal sources - information obtained from internal

record keeping systems, sales reps, call details,
customer enquiries, etc.

Brassington and Pettitt: Principles of Marketing, 3rd Edition © Pearson Education Limited 2003
 OHT 6.12 The marketing research process

Brassington and Pettitt: Principles of Marketing, 3rd Edition © Pearson Education Limited 2003
 When and How Not to Conduct Market
OHT 6.13
Research
Occasion Comments/Example
Lack of resources If quantitative research is needed, it is not worth
doing unless a statistically significant sample can
be used
Research results not Where psychographic data (for example) is used
actionable which won’t help the company form firm actions

Closed mindset When research is used only as a rubber stamp of a

preconceived idea
Late timing re: When research results come too late to
process influence the decision

Poor timing re: If a product is in the ‘decline’ phase (e.g. records)

marketplace there’s little point in researching new product
varieties
Vague objectives Market research cannot be helpful unless it is
probing a particular issue
Cost outweighs
Brassington The expected
and Pettitt: Principles of Marketing, value of the information
3rd Edition should
© Pearson Education Limited 2003
benefit outweigh the cost of gathering the data
 OHT 6.14 The Marketing Research Impact
Its Importance to Management - Three Critical Functions

Descriptive:
• The gathering and presenting of statements of fact;

Diagnostic:
• The explanation of data or actions;

Predictive:
• The specification of how to use descriptive and
diagnostic research to predict the results of a planned
marketing decision.
Brassington and Pettitt: Principles of Marketing, 3rd Edition
Chapter One
14
© Pearson Education Limited 2003
 OHT 6.15 Return on Quality
Ensuring Management’s Continued Support

1. The quality being delivered is at a

level desired by the target market;

2. The quality level must have a

positive impact on profitability.
Brassington and Pettitt: Principles of Marketing, 3rd Edition
Chapter One
15
© Pearson Education Limited 2003
 OHT 6.16
Marketing Strategy

••AA plan
plan to
to guide
guide the
the long-term
long-term use
use of
of aa firm’s
firm’s resources
resources based
based
on
on itsits existing
existing and
and projected
projected internal
internal capabilities
capabilities and
and on
on
projected
projectedchanges
changesin inthe
theexternal
externalenvironment.
environment.

••The
Thedevelopment
developmentofofthe
themeans
meansby
bywhich
whichthe
thefirms
firmswill
willposition
position
itself
itselfin
inthe
theeyes
eyesof
ofthe
theconsumer.
consumer.

•• Marketing
Marketing research
research will
will enable
enable the
the firm
firm to
to determine
determine the
the best
best
course
courseof
ofaction
actionto
tomeet
meetthe
thestrategic
strategicobjectives
objectivesofofthe
thefirm.
firm.
Brassington and Pettitt: Principles of Marketing, 3rd Edition
Chapter One
16
© Pearson Education Limited 2003
 OHT 6.17
Types of Research Studies

Research aimed at solving Research aimed at expanding

a specific pragmatic the frontiers of knowledge
problem such as a better rather than for solving a
understanding of the specific problem. Research
marketplace, determining done for research sake.
why a strategy or tactic Universities, and other grant
failed, or reducing recipients, often conduct basic
uncertainty in management research. Sometimes called
decision making. “pure” research.
Brassington and Pettitt: Principles of Marketing, 3rd Edition
Chapter One
17
© Pearson Education Limited 2003
 OHT 6.18
Types of Applied Research Studies

Research conducted to develop marketing

Programmatic options through market segmentation, market
opportunity analyses, or consumer attitudes and
predict usage studies;

Selective Research used to test decision

alternatives;

Evaluative Research done to assess program

performance.

Brassington and Pettitt: Principles of Marketing, 3rd Edition

Chapter One
18
© Pearson Education Limited 2003
 Decision
OHT 6.19 to Conduct Marketing Research
Weighing the Pros and Cons

It’s not always a good idea – or in the best interest of

the business – to conduct marketing research.
Reconsider conducting marketing research under the
following circumstances:
 The resources are lacking
 The research results might not be useful
 The opportunity has passed
 The decision has already been made
 Managers cannot agree on what they need to know to make a decisio
 Decision-making information already exists
 The research cost outweighs the benefits of the research
 You do not have the time to do the research right
 Theand
Brassington research results
Pettitt: Principles will3rdlikely
of Marketing, Edition only
Chapter One
be shelved 19
© Pearson Education Limited 2003
 OHT 6.20 The Internet
Its Impact on Marketing Research

The Internet Impact:

Enables rapid access to information
Fosters easier executing of follow-up and longitudinal studies
Enables management to respond quickly to customers’ needs
Can dramatically reduce data collection costs
One can quickly publish, report, disseminate research results
Has transformed secondary data collection
Enables personalization of surveys & increase response rates
Facilitates quick survey response/analysis capabilities
Produces higher response rates
Ability to contact the hard-to-reach
Brassington and Pettitt: Principles of Marketing, 3rd Edition
Chapter One
20
© Pearson Education Limited 2003
 OHT 6.21 The Internet
Its Impact on Marketing Research

Advantages/Disadvantages
of Internet Surveys:
Rapid development and real time reporting
Dramatically reduced costs
Ability to personalize and tailor the study
General higher response rates
Ability to reach hard to reach
Ability to change the research focus quickly
Results might not be representative of the population
Ease of use might lead to over-surveying your audience
Not everyone has Internet access or good connection speed
Brassington and Pettitt: Principles of Marketing, 3rd Edition
Chapter One
21
© Pearson Education Limited 2003
 OHT 6.22
Marketing Research Ethics

Click to go the the

Marketing Research
Association for information
on marketing research ethics

• Moral principles or values generally governing the conduct

of an individual or group.

• Ethics is not a one-way relationship as all parties are

responsible for maintaining and fostering ethical standards
and conduct.

• If you are concerned about a research supplier, contact

research associations to vet suppliers.

Brassington and Pettitt: Principles of Marketing, 3rd Edition

Chapter One
22
© Pearson Education Limited 2003
 OHT 6.23
Marketing Research Ethics

••Low
Lowball
ballpricing;
pricing;
••Underpaying
Underpayingfield
fieldservices;
services;
••Allowing
Allowingbias/subjectivity;
bias/subjectivity;
••Abusing
Abusingrespondents;
respondents;
••Misleading
Misleadingclients
clientson
oncosts,
costs,etc.;
etc.;
••Selling
Sellingunnecessary
unnecessaryresearch;
research;
••Violating
Violatingclient
clientconfidentiality.
confidentiality.
Brassington and Pettitt: Principles of Marketing, 3rd Edition
Chapter One
23
© Pearson Education Limited 2003
 OHT 6.24
Marketing Research Ethics

••Issue
Issueaabid
bidwhen
whensupplier
supplierhas
hasalready
alreadybeen
beenselected;
selected;
••Solicit
Solicitfree
freeadvice
adviceunder
underthe
theguise
guiseof
ofaabid
bidrequest;
request;
••Make
Makefalse
falsepromises
promisesto
tothe
theresearcher;
researcher;
••Issue
Issueunauthorized
unauthorizedrequests
requestsfor
forproposals;
proposals;
••Withhold
Withholdinformation
informationthe
theresearch
researchsupplier
supplierneeds.
needs.

Brassington and Pettitt: Principles of Marketing, 3rd Edition

Chapter One
24
© Pearson Education Limited 2003
 OHT 6.25
Marketing Research Ethics

••Over
Overreport
reporthours
hoursworked;
worked;
••Falsify
Falsifydata
dataor
oranalysis;
analysis;
••Use
Useprofessional
professionalrespondents;
respondents;
••Overlook
Overlookproperly
properlyvalidating
validatingthe
thedata;
data;
••Use
Useothers’
others’research
researchasasoriginal
originalwork;
work;
••Overstate
Overstatequalifications;
qualifications;
••Provide
Providestaged
stagedreferences.
references.

Brassington and Pettitt: Principles of Marketing, 3rd Edition

Chapter One
25
© Pearson Education Limited 2003
 OHT 6.26
Respondents’ Rights

The Respondent Has the Right to:

••Choose
Choosewhether
whetherto
toparticipate
participatein
inthe
theresearch;
research;

••Withdraw
Withdrawfrom
fromthe
theresearch
researchatatany
anytime;
time;

••Be
Bein
inaasafe
safeenvironment
environmentduring
duringthe
theresearch;
research;

••Be
Beinformed
informedas
asto
towhat
whatthe
theresearch
researchisisabout;
about;

••Be
Begranted
grantedprivacy
privacyof
ofthe
theresearch
researchresults
resultsififpromised;
promised;

••Get
Getcompensated
compensatedfor
forparticipation
participationwhen
whenoffered.
offered.
©
26
Pearson Education Limited 2003
Brassington and Pettitt: Principles of Marketing, 3rd Edition
Chapter One
 OHT 6.27
Issues in Research Professionalism

A style of research in which zealous political

supporters deride one candidate to lead voters to
support the other candidate. Biased polling techniques
skew respondents’ answers.
Poll

Process by which research can attaining professional

standing among research authorities as being qualified.

Brassington and Pettitt: Principles of Marketing, 3rd Edition

Chapter One
27
© Pearson Education Limited 2003
 28
OHT 6.28 P&G Luring Women with their
Feminine Toothpaste

• P&G has came out with “Rejuvenating Effects” a gender specific toothpaste
targeting the female customers, who do 82% of the grocery shopping.
• The flavor and package of the product was decided on the basis of the results
from a customer survey filled out by women.
• Though the product is priced slightly higher than the other brands P&G hopes
to make women think about the toothpaste in the same light as skin care
lotions and shampoo.

Brassington and Pettitt: Principles of Marketing, 3rd Edition © Pearson Education Limited 2003
http://www.drvkumar.com/mr10/ Marketing Research 10th Edition
 29
OHT 6.29
Harley Davidson Exploring New Markets

• Problem: Flat domestic scales

• Solution:
– In 1999, Harley-Davidson started a rental program which provided a way to hook customers on
riding and thereby entice them into buying a motorcycle.

– 40 percent of those enrolled in the program were female and about 30 percent were under the age
of 35
• Result:
– Motorcycles rented went up from 401 days in 1999 to a total of 224,134 days worldwide in 2004.
– 32 percent of rental customers surveyed bought a bike or placed an order after renting, another
37 percent were planning to buy one within a year.

– Nearly half of the renters spent more than $100 on Harley-Davidson accessories, such as T-shirts
and gloves.

Brassington and Pettitt: Principles of Marketing, 3rd Edition © Pearson Education Limited 2003
http://www.drvkumar.com/mr10/ Marketing Research 10th Edition
 OHT 6.30
Coca Cola Failure: Background and Research

- Early 80s, share losses to Pepsi

- New Product research carried out
• $4m cost
• 200,000 taste tests
• 60% of consumers preferred it in blind tests
- BUT research was narrowly defined
• considered taste not emotions
• dropping Old Coke not mentioned

Brassington and Pettitt: Principles of Marketing, 3rd Edition © Pearson Education Limited 2003
 OHT 6.31

Selected Examples of Real-Life Situations in Which

Business Research Methods are Used
 A firm wants to produce and market a new product but first wants to ascertain if
there is a potential consumer demand for this product in markets x,y and z
 a multinational firm wants to establish a production facility in another country
after determining its technical and economic feasibility
 A government agency wants to ascertain the satisfaction level of its employees, the
causes for any possible discontent, and propose a scheme for enhancing this level
 A financial institution wants to invest in commodities and commissions a study to
determine the past trends and forecast future returns in a portfolio of commodities
 The CEO of a firm wants to undertake a SWOT-Analysis as part of his plan to
redefine his organization’s priorities

Brassington and Pettitt: Principles of Marketing, 3rd Edition © Pearson Education Limited 2003