MARKETING RESEARCH

Research may be defined as:

The
gathering

analysis

storage

retrieval and

dissemination of information

to aid decision making

Research is a systematic process, as you can see by the model above, and is one of the
most common and oft-repeated activities to be found in the marketing discipline. There are
very good reasons for this.
If we accept that planning is a necessary activity for marketing effectiveness, it follows that
we need to be as certain as we can of any decisions that we make. This certainty will only
be present if we are confident in what we are doing.
 Confidence comes from knowledge.
 Knowledge comes from investigating.
 Investigating means research.

Why Research?
There could be thousands of answers to this question – for example:
 to find out costs involved in advertising
 to find out what customers want to buy
 to determine which distribution methods are more efficient
 The reasons shown above, and thousands of others, could all be described as very valid reasons for
researching. However, they are primarily "research objectives" in that they actually outline the task in
hand. They highlight a problem which needs addressing and a proposal is then made to carry out
research as a component of some form of assessment.
The main reasons that lead to research being carried out are:
 to reduce risks
 to help in planning and forecasting results
 to aid "mix decisions"
 to improve decision-making capabilities.
To put it another way, research is a management tool which, in tandem with other available
management techniques, can help a much more effective outcome to be achieved.
Types of Research
The primary classifications of research are quantitative and qualitative.
(a) Quantitative research
"Quantitative" comes from quantity – meaning numbers. Results can be in the form of
numbers or percentages. This type of research is used to assess trends, potential and
actual growth or decline, etc. Data is relatively easy to collect and analyse and,
because of this, can be done by people who are not completely familiar with the
product or market. However, researchers must understand what they are doing if they
are to be effective.
(b) Qualitative research
Qualitative research is all about ideas and opinions, or likes and dislikes. Because
opinions are involved it requires greater skills on the part of the interviewer and the
analyst.
The results from qualitative research, if recorded on a Likert scale, or semantic
differential basis, can be quantified and this is very common. For example, questions
are posed and the interviewee is asked to give the opinion which is nearest to their own
– ranging from "very true" through a possible of five minimum options to "very untrue"
(see Figure 4.6).
Figure 4.6: Semantic Differential Scale

Strongly Agree Neither agree Disagree Strongly

The service is good.

The showroom is
spacious.

The literature is well-

The product is good

Other distinctions between different types of research that you need to be aware of are as
follows.
(c) Formal research
This type of research is where a plan has been developed and a system is set in
operation. It is structured and is aimed at achieving an objective. Because it is
formal, everyone has targets to aim for and everyone can monitor performance and
achievement. Formal research is planned.
(d) Informal research
Informal research is where information is gathered without a formal system in
operation, e.g. overheard conversations at exhibitions, gossip, hints from friends or
competitors, etc.
(e) Market research
This means an investigation into aspects of the market: the size, trends, competition,
legislation, barriers to entry, etc. Market research assists in the audit stages of
marketing planning. It is a general view of the market and is used as a basis for
decision making. It is really concerned with the comparative analysis of markets and
market sectors.
(f) Marketing research
Marketing research is the investigations into how to reach, or serve, the customer
and/or the end-user in the best way. Marketing research is concerned with the
marketing mix elements – product, price, place and promotion and, in most
circumstances, will include the "soft" elements of people, physical evidence and
processes. This type of research is undertaken by an organisation to make sure that it
is offering the best possible mix to its target audience.
It is not uncommon to get "market" and "marketing" research confused. It is worth reading
the two paragraphs above repeatedly until you are absolutely sure you know the difference.
The confusion between the two may well be because of the fact
that when researching markets, the researcher will obviously take into account such aspects
as the level of pricing which is being charged in the market, the type of distribution which is
preferred by the current market, the nature of the promotional activity undertaken by the
competition, etc. The researchers must do this if they are to form reasoned opinions – they
then move on and carry out their own individual research, to see which is the most
appropriate mix to offer to the chosen segment, and whether or not the organisation has the
resources to cope with the ideal mix. If the organisation does not have the resources, further
research may be carried out to see where costs can be reduced, etc.

Research Methods
The costs of researching can be very high – even if the organisation uses its own staff to
carry out the entire process – so it must be done in a structured and logical way.
There are two types of research.
(a) Desk or secondary research
Desk research is carried out by using information which has already been published by
another party – i.e. it is secondary. Such information can be:
 internal information, available in-house – past enquiries/sales records, etc.
 external information, available from sources which have reasons to publish
information of different types – market surveys, annual reports, etc.
Desk research is so called because it can literally be carried out from a desk in an
office. Using the Internet, telephone and postal services, researchers can obtain a vast
amount of previously published material which can help in making initial assessments
of a market.
Remember, though, that such information is secondary – i.e. not new, but second-
hand. Because the information collected has already been published, it will have been
prepared for someone other than the organization wishing to use it. This can present a
number of problems.
 It may be out of date.
 It may be irrelevant to the needs of the organisation.
 It may not be accurate (e.g. if collected for tax purposes).
  It may be based on a different statistical basis to that used in the home market,
which will make nonsense of the information.
Desk research can help in eliminating unsuitable markets or segments, which can
mean reduced costs and certainly reduced risk factors.
It is only when researchers are satisfied with the results of their desk research that an
organisation should consider moving on to more specific field research. Insufficient or
incorrect information can lead to unnecessary costs and expenditure as this may mean
that an entirely unsuitable market/sector was not eliminated at the appropriate time.
(b) Field or primary research
Field research is new (primary) research done by, or for, the organisation itself. It
relates directly to the problem in hand and should never be undertaken until desk
research has been completed satisfactorily.
Field research can be carried out by an assortment of means, including:
 visits
 questionnaires, and
 surveys.
All of these will involve some form of sampling. The size of sample researched will
depend on the nature of the product and market being investigated, but the sample
must always represent the whole target market. If it does not, it will not give an
accurate picture of the overall outcomes which can be expected.
Field research should be carried out by people who have good knowledge and
experience of both the product and the market itself. Failing this, they should at least
be experienced in undertaking research.
Field researchers should be capable of producing unbiased reports and
recommendations. A major problem to overcome in field research is personal bias on
the part of a researcher, or the "self-reference criterion", as it is sometimes called. This
simply means that people hold such strong opinions that they superimpose their own
ideas on what they hear or see – thus negating the results of the research activity. This
is more common in international research in that, very often, researchers think that
methods used in their home market will work in foreign markets and they do not "hear"
what is being said to them by the people being sampled.
Apart from aspects of interviewer bias which may occur, field research has two major
problems – money and time. It can be expensive in that external agencies need to be
engaged to conduct the research or, if personnel from the organisation are being used,
time will be lost while researchers are "away" from their normal duties.
As field research is based on people finding out about people – their likes, dislikes, etc.
– it can inevitably mean delays. People being researched may not be available; people
undertaking research may be ill or tied up with too many projects; people who are
responsible for analysis may have too many projects, etc. When planning field
research, potential delays should be considered and, where possible, some time
allowed accordingly.
(c) Internet research
A substantial amount of research is now undertaken online. E-consultants estimated
that, in 2005, 10% of all UK research was done online, worth £160 million. This figure
has certainly increased substantially today. The Internet is now used extensively for
general research, online focus groups, questionnaires/surveys, pop-up surveys and
extended e-mail groups.
 The Internet has become an obvious choice when doing research. However, like any
tool, it has unique characteristics that create both benefits and drawbacks.
On the positive side, the Internet offers:
 access to new and valuable sources of information (e.g. electronic journals and
Internet discussion groups)
 a more efficient route for accessing certain standard information (e.g.
newspapers, especially those from overseas, and electronic versions of existing
journals)
 access to vast amounts of information (there are 800 million pages of information
on the web)
 access to non-mainstream views (access to the world of social media)
 access to searchable databases and datasets
 access to government and international information
 global reach and generally very fast access
 a method of research which is generally cheaper than other research methods.
On the downside, the Internet has the following drawbacks.
 The Internet is a potpourri of information, which is one of its great strengths, but it
also contains a wealth of misinformation. It is sometimes difficult to separate the
truth from the trivia.
 There is a lack of permanence. Pages are unstable and they can disappear. This
makes it difficult for the researcher who wishes to cite references.
 Coverage can be selective. Some knowledge still resides in print.
 Much information is “password” protected or only accessible to those who are
registered or pay a subscription.
 Not everyone has access to the Internet, so on-line research may be biased.

Market Sensing
Market "sensing" relies on the level, or depth, of understanding of the external environment
on the part of the strategic marketer. If marketers are fully cognisant of the influencing
factors and any potential problems which may arise, they will be able to bring added value
(value judgment) to any decisions made.
This in-depth knowledge of the particular environment will mean that research will be more
focussed and, therefore, there will be a greater possibility of success.
There can be no doubt that in-depth knowledge is of tremendous advantage. However,
marketers must be careful. Not only is "instinct" notoriously unreliable, over-confidence in
one's knowledge or ability can lead to complacency and short sightedness. Unexpected
events or competitive activities can and will create havoc if they are allowed to catch you
unawares.
Another problem which crops up is that managers fail to communicate why they choose (or
do not choose) to take certain actions as a result of "market sensing". This can create
uncertainty in others and may result in resistance to proposed plans.
Organising Marketing Research
Marketing research exists to aid decision-makers.
The complexities of the market mean that external influences must be continuously
monitored, with information supplied to managers in time for action. The main aim of the
research process, then, must be that relevant information is gathered and assessed.
Information should be the servant of the decision-making manager by providing the means to
reduce uncertainty or risk.
(a) Constraints on the process
Information does not come free, it incurs a cost. Research's contribution to better
performance must be worth more than its cost. Information in business is not
worthwhile for its own sake.
Four major constraints are applicable to all forms of marketing research as follows (and
the acronym CATS is commonly used as an aide-memoire).
 Cost – the budget is not elastic
 Accuracy –the data must be processed accurately so that the information is
reliable within established parameters
 Time –the research must be completed in time to affect the decision
 Security –new product research, for example, is handicapped by the need for
security.
It is important to call only for sufficient information to allow the decision to be made in
conditions of acceptable risk. There is never sufficient budget (of money and/or time)
to allow for all potential information to be gathered. Thus marketers grow accustomed
to making decisions without access to complete information.
(b) The research plan
A plan for research is not really any different to any other plan. It should include all the
normal elements of objective, strategies and programmes and, above all, it should
be logical and structured.
The key elements of the plan are as follows.

 Outline the problem – could be investigation into new markets; research into
buying patterns; trends in market size, etc.
 Define the objectives – obviously based on what the problem is
 Determine the target to be researched – crucial in a research plan
 Decide how the research is to be carried out – questionnaires; panels, etc.
 Decide who is to carry out the research – in-house or external agency
 Determine the time scales
 Set or agree the budget – this may be done initially in order to help in making
other decisions
 Implement the plan – set everything in motion
 Monitor and control – constant checking to make sure that all activities are
being done and time targets, budgets, etc. are still on course
 Reach conclusions – report; action.
And, just as in every other plan, there may be amendments made owing to changes
which take place. A plan always needs to be flexible enough to cope with adaptations
 to meet the current situation. Having said that, if the planning activity is
carried out correctly, environmental conditions will have been anticipated
and amendments should be minor.
(c) Responsibility for the process
Problem definition, the starting point of research, is the responsibility of
the decision- maker not the researcher. In practice the two should be
able to work together to specify the extent of the problem. The researcher
must also know what it is that the marketer wishes to do, or what
alternatives are faced. Only then does he know what to research.
Responsibility for the other stages of the research process is as follows.
 Possible courses of action Decision-maker
 Planning the research Marketing researcher
 Using secondary data Marketing researcher
 Collecting primary data Marketing researcher
 Analysis and report Marketing researcher
 Decision(s) Decision-maker
 Implementing action Decision-maker.