Chapter Outline

1) Overview
2) What does Marketing Research Encompass
3) The Nature of Marketing Research
4) Definition of Marketing Research
5) A Classification of Marketing Research
6) The role of Marketing Research in MIS and DSS
7) Marketing Research Suppliers and Services
8) Selecting a Research Supplier
 Chapter Outline (cont.)
9) Careers in Marketing Research
10) Marketing Research Process
11) The Department Store Patronage Project
12) International Marketing Research
13) Ethics in Marketing Research
14) Internet and Computer Applications
15) Focus on Burke
16) Summary
17) Key Terms and Concepts
18) Acronyms
RIP 1.1 The American Marketing Association
Redefines Marketing Research

Used to identify and

define market
opportunities and
Marketing research is the problems
function which links the
Generate, refine, and
consumer, customer, and
evaluate marketing
public to the marketer
performance
through
Monitor marketing
performance

Improve understanding of
marketing as a process
 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
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. Several
aspects of this definition is noteworthy.

1. Marketing research is systematic. Thus systematic planning is

required at all stages of the marketing process. The procedures
followed at each stage are methodologically sound, well
documented, and, as much as possible, planned in advance.
Marketing research uses the scientific method in that data are
collected and analyzed to test prior notions or hypothesis.
2. Marketing research attempts to provide accurate information that
reflects a true state of affairs. It is objective and should be conducted
impartially. Although research is always influenced by the
researcher’s philosophy, it should be free from the personal or
political biases of the researcher or the management.

Research that is motivated by personal or political gain involves a

breach of professional standards. Such research is deliberately bias so
as to result in predetermined findings.

The motto of every researcher should be:

“ Find it and tell it like it is.”
Marketing research involves identification, collection, analysis,
dissemination, and use of information . Each phase of this
information is important. We identify or define the marketing
research problem or opportunity and then determine what
information is needed to investigate it. Because marketing
opportunity translates into a research problem, to be investigated, the
terms problem and opportunity are used interchangeably here.

Next, the relevant sources of information are identified and a range of

data collection methods varying in sophistication and complexity are
evaluated for their usefulness. The data are collected using the most
appropriate method; they are analyzed and interpreted, and
Interferences are drawn. Finally, the findings, implications, and
recommendations are provided in a format that allows the
information to be used for marketing decision making and to be acted
upon directly.

The role and salient characteristics of marketing research may be

described by the acronyms:

R = Recognition of information needs

E = Effective decision making
S = Systematic and Objective
E = Exude/Dissemination information

A = Analysis of information
R = Recommendations for action

C= Collection of information

H = Helpful to managers

A Classification of Marketing Research

Organizations engage in marketing research for two reasons:

•To identify the problems

•To solve marketing problems

 Problem Identification Research

This research undertakes to help identify problems that are perhaps

not apparent on the surface and yet exist or are likely to arise in the
future.

Examples:

oMarket Potential
oMarket Share

oBrand or company image

oSales analysis
oShort and long range forcasting
A declining market potential indicates that the firm is likely to have a
problem achieving its growth targets.

Similarly, a problem exists if the market potential is increasing but

the firm is losing market share.

The recognition of economic, social, or cultural trends, such as

changes in consumer behavior, may point to underlying problems or
opportunities.
Problem Solving Research

Once a problem or opportunity has been identified, problem solving

research is undertaken to arrive at a solution.

The findings of problem solving research are used in making

decisions that will solve specific marketing problems. Most
companies conduct problem solving research.

However, both types of research go in hand in hand , and a given

marketing research project may combine both types of research
Fig 1.2 A Classification of Marketing Research
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
 Table 1.1 Problem Solving Research

• Determine the basis of segmentation • Test concept

• Establish market potential and
responsiveness for various • Determine optimal product design
segments
• Package tests
• Select target markets
• Create lifestyle profiles:demography, • Product modification
media, and product image
characteristics
• Brand positioning and repositioning

• Test marketing

• Control score tests

 Table 1.1 Contd.
PRICING RESEARCH
• Importance of price in brand selection

• Pricing policies

• Product line pricing

$ALE
• Price elasticity of demand

• Initiating and responding to price changes

PROMOTIONAL RESEARCH

0.00% APR • Optimal promotional budget

• Sales promotion relationship

• Optimal promotional mix

• Copy decisions

• Media decisions

• Creative advertising testing

 Table 1.1 Contd.
Determine…
•Types of distribution
•Attitudes of Channel members
•Intensity of wholesale & resale coverage
•Channel margins
•Location of retail and wholesale outlets
Fig 1.3 Management Information Systems
Versus Decision Support Systems

MIS DSS

problems
• Structured Problems • Unstructured Problems
• Use of Reports • Use of Models
• Rigid Structure • User Friendly Interaction
• Information Displaying Restricted • Adaptability
• Can Improve Decision Making • Can Improve Decision Making
by Clarifying Data by Using “What if” Analysis
 The Marketing Research Process
Step – 1: Problem Definition:

The first step in any marketing research project is to define the

problem. In defining the problem, the researcher should take into
account the purpose of the study, the relevant background
information, the information needed, and how it will be used in
decision making. Problem definition involves discussion with the
decision makers, interviews with industry experts, analysis of
secondary data, and perhaps, some qualitative research such as focus
groups. Once the problem has been defined, the research can be
designed and conducted properly.
Step – 2: Development of an Approach to the Problem

This step includes formulating an objective or theoretical framework,

analytical models, research questions, and hypotheses and identifying
the information needed. This process is guided by discussions with
management and industry experts, analysis of secondary data, and
qualitative research.

Step – 3: Research Design Formulation

A research design is a framework or blueprint for conducting the
marketing research project.

Formulating research design involves following steps:

❖ Definition of the information needed

❖Determination of possible answers to the research question and test

of hypotheses

❖ Method of collecting quantitative data ( survey, observation, and

experimentation)

❖Method of collecting qualitative data

❖Measurement and scaling procedure (precisely defining the variables)

❖Questionnaire design
❖Sample process and sample size (selection of respondents)
❖Plan of data analysis
Step – 4: Field Work or Data Collection:

Data collection involves a field force or staff that operates either in

the field, as in the case of personal interviewing, from an office by
telephone, through traditional, or electronically (e-mail or internet).

Proper selection, training, supervision, and evaluation of the field

force help minimize data-collection errors.

Step – 5: Data Preparation and Analysis:

Data preparation includes the editing, coding, transcription, and
verification of data. Each questionnaire or observation form is
inspected or edited and, if necessary, corrected. Number or letter
codes are assigned to represent each response to each question in the
Questionnaire. The data from the questionnaire are transcribed or
keypunched onto magnetic tape or disks, or input directly into the
computer. The data are analyzed to derive information related to the
components of the marketing research problem and, thus, to provide
input into the management decision problem.

Step – 6: Report preparation and presentation

The entire project should be documented in a written report that

address the specific research question identified; describes the
approach, the research design, data collection, and data analysis
procedures adopted, and presents the results and the major findings.
The findings should be presented in a comprehensible format so that
management can readily use them in the decision-making process,
In addition, an oral presentation should be made to management
using tables, figures, and graphs to enhance clarity and impact. The
internet is also being used to disseminate marketing results and
reports, which can be posted on the Web and made available to
managers on a worldwide basis.

Here, we described research process as a sequence of steps, it should

be noted that these steps are interdependent and iterative. Thus, at
each step, the researcher should not only look back at the previous
steps but also look ahead to the following steps.
The Role of Marketing Research in Marketing Decision Making:

The nature and role of marketing research can be better understood in

the light of the basic marketing paradigm depicted in Figure.

The emphasis in marketing is on the identification and satisfaction of

customer needs. In order to determine customer needs and to
implement marketing strategies and programs aimed at satisfying
those needs, marketing managers need information. They need
information about customers, competitors, and other forces in the
market place. In recent years many factors have increased the need
for more and better information. As firms have become national and
Fig 1.1 The Role of Marketing Research
Customer Groups
• Consumers
• Employees
• Shareholders
• Suppliers
Uncontrollable
Controllable Environmental
Marketing Factors
Variables
Marketing •Economy
•Product
Research •Technology
•Pricing
•Laws & Regulation
•Promotion
•Social & Cultural
•Distribution Factors
Assessing Marketing •Political Factors
Providing
Information Information Decision
Needs Making

Marketing Managers
• Market Segmentation
• Target Market Selection
• Marketing Programs
• Performance & Control
international in scope, the needs for information on larger and more
distant markets has increased. As consumers have become more
affluent and sophisticated , marketing manager needs better
information on how they will respond to product and other marketing
offerings. As competition has become more intense, managers need
information on the effectiveness of their marketing tools. As the
environment changes more rapidly, marketing managers need more
timely information.

The task of marketing research is to asses information needs and

provide management with relevant, accurate, reliable, valid , correct,
and actionable information.
Figure 1.4

RESARCH EXTE
INTE
SUPPLIERS RNAL
RNAL

FULL LIMITED
SERVICE SERVICE
Field Branded
Syndicate Internet Products
Services
Services Services and Services

Standardized Customized Coding and

Services Services Data Entry Data
Services Analytical Analysis
Services Services
1. External Suppliers:

External suppliers are outside firms hired to supply marketing

research data. These external suppliers provide marketing research

services collectively comprise the marketing research industry.

External suppliers are classified as:

i) Full-service suppliers: They offer the entire range of marketing

research services:
Problem definition, approach development, questionnaire design,

Sampling, data collection, data analysis, and interpretation, to report

Preparation and presentation. The service provided by the suppliers
Can be further broken down into syndicated services, customized
services, and internet services.

▪Syndicated Services:
Companies that collect and sell common pools of data designed to
serve information needs shared by a number of clients.

Ex- Nielsen Media Research provides information on audience size

and demographics characteristics of household watching specific
television programs.

▪Customized Services:
They offer a wide variety of marketing research services customized
to suit a client’s specific needs. Each marketing research is treated
Uniquely. They offer research services that best meets the needs of
each client.

▪ Internet Services:
Companies that have specialized in conducting marketing research on
the internet. They offer a broad range of customized quantitative and
qualitative online marketing research for consumers, business to
business, and professionals markets.

ii. Limited Service Suppliers:

Companies that specialized in one or a few phase of the marketing
research project.

Services offered by the suppliers are classified as:

▪ Field Services:

They collect data through mail, personal, telephone, or electronic

interviewing, and firms that specialize in interviewing are called field
serviced organizations.

▪Focus Group and Qualitative Services;

It provides facilities and recruitment of respondents for focus groups

and other forms of qualitative research such as one-on-one depth
interviews. Some firms may provide additional services such as
moderators and prepare focus group reports.

▪ Technical and Analytical Services:

Services related to design issues and computer analysis of
Quantitative data, such as those obtained in large surveys.

Criteria for Selecting a Research Supplier

A firm should keep some basics in mind:

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 technical and non-technical
expertise? In other words, in addition to technical skills, are the
personnel assigned to the task sensitive to the client’s needs, and do
they share the client’s research ideology?

Do they have professional research certification offered by the

Marketing Research Association (MRA)?

Can they communicate well with the client?

RIP 1.3 Top 50 Marketing
Research Organizations
RIP 1.3 Contd.
RIP 1.3 Contd.
RIP 1.2 Organization of Marketing
Research at Oscar Mayer

Brand Research Marketing Systems and

Analytics (MSA)
Conducts Primary & Secondary
Research Performs Sales Analysis
Based on Shipment & Store
Serves As Marketing Scanner Data
Consultants
Supports Computer End
Analyzes Market Trends Users within Marketing
Advances the State of the Art in Department
Marketing Research Serves as Source of
Marketing Information
RIP 1.4 Full Services Versus Limited Service
Marketing Research Firms
Susan Adelman and Kevin Heaken of Survey Service, Inc. and
Heaken Research, both field survey firms, find that more often
today clients will perform the problem definition and design the
survey instrument in-house to subcontract the data collection. This
is done in order to cut costs in market research. This has also
changed the method and approach of the full-service companies to
meet new customer needs. Burke Marketing Research, a large
full-service company, has replaced many in-house departments for
end-users who have cut their in-house staff because of a
downsizing trend. An example would be Ocean Spray or Quaker
Oats which have cut marketing staff and subcontract all marketing
research to companies such as Burke and Maritz Marketing
Research.
 RIP 1.5 Contd.

So now, the end-user simply provides the full-service company

with a management decision problem, which is interpreted and
articulated into the marketing research problem by a full-service
company and the other steps are also performed by the market
research company. Some companies believe that they can reduce
costs by going straight to the field-service companies. However,
according to Cathy Kneidl, VP for Quality Control Services, a
branch of Maritz, this is a mistake because the steps leading up to
the data collection are omitted, which renders the market research
questionable. The approach and process of market research are
critical to obtain data that can be useful or can be interpreted to
improve or make sound management decisions. The issue is
determining if the company requires a full-service company, which
would undertake the entire research process, or is field research
satisfactory, as in the case of Samsonite. Samsonite wanted to test
the market for responses to various suitcase colors. For this
research, a full-service firm was not necessary, only a survey had
to be administered to confirm trends or preferences.
Fig 1.5 Selected Marketing Research
Career Descriptions
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.
 Selected Marketing Research
Career Descriptions
Vice President of Marketing Research Director
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
Senior Analyst
Fig 1.5 Contd. Statistician/Data Processing
• Participates in the development of •Serves as expert on theory and
projects application on statistical techniques
• Carries out execution of assigned •Oversees experimental design, data
projects processing, and analysis
• Coordinates the efforts of analyst,
junior analyst, & other personnel
development of research design
and data collection
• Prepares final report
Analyst
• Handles details in execution of
project
• Designs & pretests questionnaires
• Conducts
• Preliminary analysis of data

Junior Analyst Field Work Director

• Secondary data analysis •Handles selection, training,
• Edits and codes questionnaires supervision, and evaluation of
• Conducts preliminary analysis of data interviewers and field workers
RIP 1.5 A Sample of
Marketing
Research Jobs
RIP 1.6 Marketing Research at
Marriott Corporation
Marriott functions in three main areas: lodging (Marriott
Hotels and Resorts, Marriott Suites, Residence Inns,
Courtyard Hotels, and Fairfield Inns), contract services
(Marriott Business Food and Services, Education,
Health-Care, In-Flight Services, and Host International,
Inc.) and restaurants (family restaurants, Travel Plazas,
and Hot Shops). It is probably best known, however, for its
lodging operations.

Marketing research at Marriott is done at the

corporate level through the Corporate Marketing
Services (CMS). CMS’s goals include providing
the management of the different areas of Marriott
with the information they need to better
understand the market and the customer.
RIP 1.6 Contd.

CMS conducts many different types of research. They use

quantitative and qualitative research approaches such as
telephone and mail surveys, focus groups, and customer intercept
to gain more information on market segmentation and sizing,
product testing, price sensitivity of consumers, consumer
satisfaction, and the like.
The process of research at Marriott is a simple stepwise
progression. The first step is to better define the problem to be
addressed and the objectives of the client unit and to develop an
approach to the problem. The next step is to formulate a research
design and design the study. CMS must decide whether to
conduct its own research or buy it from an outside organization.
RIP 1.6 Contd.

If the latter option is chosen, CMS must decide whether or not to

use multiple firms. Once a decision is made, the research is carried
out by collecting and analyzing the data. Then, CMS presents the
study findings. The final step in the research process is to keep a
constant dialogue between the client and the CMS. During this
stage, CMS may help explain the implications of the research
findings or may make suggestions for future actions.

Marketing Research
RIP 1.7 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)
RIP 1.7 Contd.

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)