What is Marketing Research

• Think of marketing research as a search for information

that will help you succeed in capturing market share. To
begin, let’s consider the differences between fundamental
and applied research.
• Fundamental research seeks to extend the boundaries of
knowledge ¡n a given area and doesn’t necessarily solve
your immediate problems. Nevertheless, it has useful
applications. It reveals information arid relationships that
could be useful at a later date.
• For example, The Green Yogurt company conducted
fundamental research about consumer preferences for
certain combinations of fruits, nuts, arid caramel that differ
in sugar type and strength of sweetness.
• Applied research gathers information to solve a
specific problem or set of problems.

• For instance, customers engaged in a blind taste

test would respond with what they specifically
liked or disliked about a new yogurt product
compared to a competitor’s product. You would
use this information to tune your business plan,
focus your advertising campaign, or improve your
product.
 FOCUING YOUR RESEARCH

• There are several important factors you must

consider before you begin, including:
. Your customers and competition
. Awareness and image of your product
. Product usage
. Undiagnosed problems with your product
• Customer desires and needs for new product
development
 THE BASIC RESEARCH PROCESS
• STAGE 1: FORMULATING THE PROBLEM
 What then is the difference between a
management problem and a research problem?

 Management problems focus on an action. Do

we advertise more?
Do we change our advertising message?
1 Do we change an under-performing product
configuration?
lf so, how?

Research problems, on the other hand, focus on

providing the information you need in order to
solve the management problem.
 HOW TO FORMULATE THE RESEARCH PROBLEM

• Problem formulation is simplified once we define the components of the

research problem.

1. Specify the Research Objective

A cleat statement of objectives will help you develop effective research,

It will help the decision ma.rs .valuate your project. It’s critical that you
have manageable objectives. (Two or three clear goals will help to keep
your research project focused and relevant)

2. Review the Environment or Context of the Problem

As a marketing researcher, you must work closely with your team. This
will help you determine whether the findings of your project will
produce enough information to be worth the cost. In order to do this.
you have to identify the environmental variables that will affect the
research project. These variables will be discussed in-depth in late
chapters.
3. Explore the Nature of the Problem Research problems
range from simple to complex, depending on the number
of variables and the nature of their relationship If you
understand the nature of the problem as a researcher, you
well be able to better develop a solution for the problem To
help you understand all dimensions. you might want to
consider focus groups of consumers, sales people manager,
or professionals to provide what is sometimes much
needed insight.

4. Define the Variable Relationships Marketing plans often

focus on creating a sequence of behaviors that occur
overtime, as in the adoption of a new package design, or
the introduction of a hew product. Such programs create a
commitment to follow some behavioral pattern in the
future. Studying such a process involves:
• Determining which variables affect the solution to
the problem.
• Determining the degree to which each variable can
be controlled.
• Determining the functional relationships between
the variables and which variables are critical to the
solution of the problem.
Marketing Research During the problem
formulation stage, you will want to generate
and consider as many courses of action and
variable relationships as possible.
5. The Consequences of Alternative Courses of
Action There are always consequences to any
course of action. Anticipating and
communicating the possible outcomes of
various courses of action ¡s a primary
responsibility in the research process.
 STAGE 2: METHOD OF INQUIRY

The scientific method is the standard pattern for

investigation. it provides an opportunity for you to use
existing knowledge as a starting point and proceed
impartially. The scientific method includes the following
steps:
1. Formulate a problem
2. Develop a hypothesis
3. Make predictions based on the hypothesis
4. Devise a test of the hypothesis
5. Conduct the test
6. Analyze the results
 STAGE 3: RESEARCH METHOD
In addition to selecting a method of inquiry (objective or
subjective), you must select a research method. There are two
primary methodologies that can be used to answer any
research question: experimental research and non-
experimental research.

Experimental research gives you the advantage of controlling

extraneous variables and manipulating one or more variables
that influences the process being implemented.

Non-experimental research allows observation but not

intervention. You simply observe and report on your findings.
STAGE 4: RESEARCH DESIGN

The research design is a plan or framework for

conducting the study and collecting data. It is
defined as the specific methods and procedures
you use to acquire the information you need.

STAG E 5: DATA COLLECTION TECHNIQUES

Your research design will develop as you select

techniques to use. There are many ways to collect
data. Two important methods to consider are
interviews and observation.
STAGE 6: SAMPLE DESIGN
Your marketing research project will rarely examine
an entire population. It’s more practical to use a
sample—a smaller but accurate representation of
the greater population. In order to design your
sample, you must find answers to these questions:
1. From which base population is the sample to be
selected?
2. 2. What ¡s the method (process) for sample
selection?
3. 3. What is the size of the sample?
 STAGE 7: DATA COLLECTION
Once you’ve established the first six stages, you can
move on to data collection. Depending on the mode of
data collection, this part of the process can require large
amounts of personnel and a significant portion of your
budget. Personal (face-to-face) and telephone interviews
may require you to use a data Marketing Research
collection agency (field service). Internet surveys
require fewer personnel, are lower cost, and can be
completed in days rather than weeks or months.
 STAGE 8: ANALYSIS AND INTERPRETATION

In order for data to be useful, you must analyze

it. Analysis techniques vary and their effectiveness
depends on the types of
information you are collecting, and the type of
measurements you are using. Because they
are dependent on the data collection, analysis
techniques should be decided before this step.
 STAGE 9: THE RESEARCH REPORT
• The research process culminates with the research
report. This report will include al! of your information,
including an accurate description of your research
process, the results, conclusions, and recommended
courses of action. There port should provide all the
information the decision maker needs to understand the
project. It should also be written in language that is
easy to understand. It's important to find a balance
between completeness and conciseness. You don’t want
to leave any information out; however, you can’t let the
information get so technical that it overwhelms the
reading audience.
• To develop a research design, you will rely on
three types of studies: exploratory studies,
descriptive studies, and causal studies.
Each depends on different information that
will help you. No matter how large or small
your project, conducting surveys and
establishing a research design is vital to your
success. If you don’t know where your project
is going, you won’t know if it’s succeeding.
• Exploratory studies generally encompass three
distinct methods:
• 1. Literature search .
• 2. Expert interviews
• 3. Case studies