CHAPTER 3

MARKETING RESEARCH
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MARKETING RESEARCH
DEFINITION

OF MARKETING RESEARCH THE IMPORTANCE OF MARKETING RESEARCH THE PROCESS IN MARKETING RESEARCH THE PROBLEMS IN MARKETING RESEARCH.

MARKETING RESEARCH

Marketing research

Marketing research is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization. Steps in the marketing research process.

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MARKETING RESEARCH

Marketing research is the function that links the consumer, customer, and public to the marketer through information. This information is used to identify and define marketing opportunities and problems; to generate, refine, and evaluate marketing actions; to monitor marketing performance; and to improve understanding of the marketing process. Marketing research specifies the information, manages and implements the data-collection process, analyzes the results, and communicates the findings and their implications. Marketing research is concerned with the application of theories, problem-solving methods, and techniques to identify and solve problems in marketing. In order to offset unpredictable consumer behavior, companies invest in market research.
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MARKETING RESEARCH

The importance of marketing research

Assist the firm in decision making regarding marketing the product and services. The firm can recognize the customer needs & wants & implement activities that give customer satisfaction. Identify the problems solving that relate with marketing. Help the firm to estimate future the dynamic and changes of marketing environment. Contribute in marketing mix management with effective strategy suggestion.

CLASSIFICATION OF MARKETING RESEARCH

Exploratory research

Marketing research to gather preliminary information that will help define problems and suggest hypothesis. Marketing research to better describe marketing problems, situations or markets such as the market potential for a product or the demographics and attitudes of consumers. Marketing research to test hypothesis about cause and effect relationships.

Descriptive research

Causal research

Applied research To better understand the market applied after research. Basic research To expand the frontiers of knowledge
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Figure 2.2

The Marketing Research Process

(8) Follow-up

(7) Writing and Presenting the

Report (1) Identifying the Problem and State the Marketing Research Objectives

(2) Creating of the Research Design

(6) Analyzing the Data

(3) Choosing the Method of Research

(5) Collecting the Data

(4) Selecting the Sampling Procedure

MARKETING RESEARCH
Steps

in the Marketing Research Process:

Defining the problem and research objectives. Developing the research plan for collecting information. Implementing the research plan collecting and analyzing the data. Interpreting and reporting the findings.

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MARKETING RESEARCH
Step

1: Defining the problem and research objectives

Dont

confuse the symptoms of the problem with its cause when defining the problem.

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MARKETING RESEARCH

Problem statement

problem statement gives a specific purpose to be achieved. The primary aim of problem statement is to get the attention of the target audience towards one point. If the scope of statement is too limited then it can limit the innovations and creativity.

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MARKETING RESEARCH

Objectives A marketing research project might have one of three types of objectives. Sometimes the objective is exploratoryto gather preliminary information that will help define the problem and suggest hypotheses. Sometimes the objective is descriptiveto describe things such as the market potential for a product or the demographics and attitudes of consumers who buy the product Sometimes the objective is casualto test hypotheses about cause-and-effect relationships.

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MARKETING RESEARCH

Theoretical framework

is a collection of interrelated concepts, like a theory but not necessarily so well worked-out. A theoretical framework guides your research, determining what things you will measure, and what statistical relationships you will look for.

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MARKETING RESEARCH

Hypothesis

an unproved theory, proposition, supposition, etc. tentatively accepted to explain certain facts or (working hypothesis) to provide a basis for further investigation, argument, etc. A tentative explanation for an observation, phenomenon, or scientific problem that can be tested by further investigation. Something taken to be true for the purpose of argument or investigation; an assumption. The antecedent of a conditional statement.
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MARKETING RESEARCH

The good characteristic of hypothesis

Determine the topic and the application for your hypothesis.

Narrow your topic down from general to specific, broad to narrow. A good hypothesis is your assumption or explanation of why or how something occurs. You are proposing an explanation or defending an argument. A good hypothesis is simple and concise.

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MARKETING RESEARCH

The good characteristic of hypothesis

A good hypothesis take a clear side.

A good hypothesis uses clearly defined terms.

A good hypothesis is testable.

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MARKETING RESEARCH
Step

2: Developing the Research Plan

Research objectives guide the determination of specific information needs. Research proposals outline the type of data needed and the research plan.
Secondary data: Information collected for another purpose which already exists. Primary data: Information collected for the specific purpose at hand

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MARKETING RESEARCH

Types of Data
Secondary data

Secondary data sources:

Government information Internal, commercial, and online databases Publications

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The advantages and disadvantages of secondary data.

Advantages of Secondary Data

1. Clarify the problem.

2. May provide a solution. 3. May provide primary data research method alternatives. 4. May alert the marketing researcher to potential problems or difficulties. 5. May provide necessary background information and build creativity

The advantages and disadvantages of secondary data.

Limitations of Secondary Data

Lack of Availability Lack of Relevance Inaccuracy 1. Who gathered the data?

2. What was the purpose of the study?

3. What and when was the information collected? 4. How was the information collected

5. Is the information consistent with other information?

Insufficiency

MARKETING RESEARCH

Types of Data
Primary data

Planning primary research:

Research approaches:

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Observation, survey, experiment

Contact methods:

Mail, telephone, online, personal

Sampling unit, sample size, sampling procedure Questionnaire, mechanical instruments

Sampling plan:

Research instruments:

MARKETING RESEARCH
Research

approaches:
research using people or

Observation

machines
Mystery shoppers, traffic counters, web site cookies are some examples. Discovers behavior but not motivations. Ethnographic research expands observation research to include consumer interviews.

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MARKETING RESEARCH
Research

approaches:

Survey

research is widely used to gather descriptive information.

Single source data systems gather information from consumer panels Survey research faces many problems

Experimental

research investigates cause and effect relationships.

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MARKETING RESEARCH
Key

Contact Methods Include:

Mail surveys Telephone surveys Personal interviewing:

Individual or focus group

Online (Internet) research

Each

contact method has strengths and weaknesses

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MARKETING RESEARCH

Strengths and Weaknesses of Contact Methods Relate to:

Flexibility
Sample

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Interviewer

control Data quantity Cost

effects Speed of data collection Response rate

MARKETING RESEARCH
Sample:

subgroup of population from whom information will be collected Sampling Plan Decisions:
Sampling unit Sample size Sampling procedure:

Probability samples Non-probability samples

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MARKETING RESEARCH
Research

Instruments:

Questionnaires

Include open-ended and closed-ended questions Phrasing and question order are key

Mechanical

instruments

Nielsen media research attaches people meters to television sets in selected homes to record who watches which programs.
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MARKETING RESEARCH
Step

3 of the Research Process: Implementing the Research Plan Involves collecting, processing, and analyzing information. Extract pertinent findings from the data. Tabulates the data and develops one way and two way frequency distribution. Apply the advanced statistical techniques.

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MARKETING RESEARCH

Step 4 of the Research Process: Interpreting and Reporting the Findings Draw conclusion and report them to management. Present important findings that are useful in the major decisions faced by management.

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MARKETING RESEARCH
The

characteristic of research reports:

The consideration of readers Consistency with research objectives Accurate/concise/clear Avoid the technical term Illustration- chart, table Grammar

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THE PROBLEMS IN MARKETING RESEARCH

Impinge the consumer freedom

uncomfortable feeling of consumer become issues in marketing research, dissatisfied of consumer may affect the low respond rate. Educate the consumer to differentiate between benefits of research with telemarketing or personal selling in order to obtain information.

Unethical

apply the research finding

The company apply the finding of research as claim in advertisement and promotion
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Data

nonexistent, unreliable or very costly to collect

THE PROBLEMS IN MARKETING RESEARCH

Survey

research suffers from a lack of sampling lists, few or unqualified interviews, poor language translation of questions, respondent refusals to interviewed or less than truthful responses. The variation of culture

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THANK YOU

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