Chapter One

Introduction to Marketing Research

vddf 1
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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

Market Share Research
Market Characteristics Research
Sales Analysis Research
Forecasting Research
Business Trends Research
Segmentation Research
Product Research
Promotion Research
Distribution 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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25
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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
project
• Designs & pretests questionnaires
• Conducts preliminary analysis of
data
• Serves as expert on theory and
application on statistical techniques
• Oversees experimental design, data
processing, and analysis

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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