MARKETING RESEARCH

By
K. Sashi Rao
Training and Management Consultant
 Marketing Research Course Objectives

 To place marketing research in the context of marketing

 To help establish and understand customer needs,
preferences and their product-markets
 To learn the fundamentals of the marketing research
process and its methodologies for data collection,
analysis and interpretation
 To determine marketing research findings and draw
meaningful conclusions
 To help interpret these findings and conclusions to aid
managerial decision-making
 Course Outline

 Informational Perspective and Role of MR in Managerial

Decision-making(2 hrs)
 Research Process and Research Design & Research
Data(2)
 Questionnaires Design and Administration(2)
 Sampling Methods and Sample Design(2)
 Specific Marketing Research Techniques- I/II/III(6)
 Measurement Techniques in Marketing Research(2)
 Research in Marketing Mix(2)
 Research Findings and MR Reports Presentation(2)
Informational Perspective and
Role of MR in Managerial
Decision-making
Marketing & Marketing Research
 Marketing is the process of planning and executing
the conception, pricing, promotion, and distribution
of ideas, goods and services to create exchanges that
satisfies individual and organizational objectives. To
achieve these objectives, a thorough understanding
of customers and markets is necessary
 Marketing Research is the systematic gathering,
recording and analyzing the data about customers
and markets, issues, problems and challenges
relating to the marketing of ideas, goods and
services
 Marketing and Markets

 Marketing – It can be seen as being a set of

dynamic processes all to help in the sale of
ideas, goods and services
 Markets - they represent the
customers/consumers universe which marketing
aims to reach, satisfy and service
 Market Research and Marketing
Research

 Market Research: Obtaining useful information about

individual product- markets and their customers and / or
consumers
 Marketing research: - This goes beyond market research
as it extends the scope and enquiry into the various
elements and facets of marketing as an organizational
activity
 What is Marketing Research ?
It involves the following basic features and aimed to :

 Provide information to aid marketing decision making. This information

will generally be extremely focused and concentrated on customers,
markets and competitors

 Systematically collect information using a wide range of sources and

techniques

 Analyze the collected information using appropriate tools and

techniques

 Determine research findings and draw meaningful conclusions

 Communicate and disseminate the derived findings and conclusions

along with recommendations to be suitable and relevant to make any
needed marketing decision
 What is not Marketing Research?

 Marketing Research is not marketing and to be seen as

only its sub set

 Marketing Research does not directly contribute to product

sales or revenues

 Marketing Research is not the solution to all or inherent

marketing problems

 Marketing Research is just one part of a firm’s market

intelligence system
 Key Characteristics of Marketing
Research

 Purposive ness – as it is meant to obtain relevant information to aid

specific decision making

 Planning the research is also reflective of its focused approach

 Systematic conduct of research which means it is orderly, fair and

accurate as far as possible

 Objectivity is achieved thro’ impartiality and without bias or prejudice

in analysis and interpretation

 Need for Marketing Information(1)

 This stems from the adoption of the marketing concept-

where the whole of the organization should be driven by

a goal of serving and satisfying the customers in a

manner which enables the organizations’ financial and

strategic objectives to be achieved.

 Need for Marketing Information (2)

 Whatever be the type of organization, information is

critical if the correct products, services and offerings
are to be provided to customers
 In very small organizations / or neighborhood shops,
owners may personally know (a) the customers’
buying habits and attitudes (b) the competitors
activities and (c) changes in local market
 As organizations become larger and customers are
far too many and widespread, such personal
knowledge and / or experience is not enough
Need for Marketing Information(3)
 For any large organization, it becomes necessary to
obtain market intelligence in a systematic and
complete manner on its
 Customers- their numbers, profiles, buying habits and
preferences and motivations
 Competitors- to compare their capacity and performances in
competing markets
 Marketing environment- in terms of economic and industry
variables in a macro and micro form, like demographics,
local cultures and habits, country specific factors et al
 Role of Marketing Research
Public

Customer Consumer

Marketing research Assessing

market action

Monitoring
Information Communication of Create marketing
market
findings actions
performance

Collection, analysis Improve market

interpretation action
Past, present
and future

Opportunities Problems

Threats
Disciplines Marketing Research Draws Upon
 Psychology- the study of human behavior; the scientific study of the
human mind; the way in which somebody thinks or behaves or acts
 Anthropology- the study of human origins, societies and cultures
 Economics- The study of the production, consumption, protection and
transfer of wealth; the seeking of good value for money/ resources
used; demand creation and forecasting
 Statistics- the science of numbers and events; the collection, collation
and analysis of information in numbers
 Management- the managing and controlling money/ other resources for
a purpose
 Types of Marketing Research(1)

 Basic Research- that which is intended to expand the

body of knowledge in the field or to provide knowledge
for use by others –examples like Census Survey Data,
National Sample Survey Data, National Readership
Survey
 Applied Research- that which is intended to solve a
particular problem or guide a specific decision-examples
like market segmentation studies, consumer
preferences, distribution channels
Most marketing research falls into the Applied Research
category
 Types of Marketing Research(2)

 Preliminary Research- often necessary to help define a problem

or concept itself and/or initial conjectures or hypotheses are
formed-examples are product/idea concept testing surveys or
pilot surveys
 Conclusive Research- where these conjectures or hypotheses
are tested by firm evidence to help support or reject them-
examples are most applied research and could involve
secondary and primary data
 Performance Research- this is used to measure the
effectiveness of marketing strategies and moves by assessing
their benefits and outcomes linked to the incurred costs and
investments as well- example of measuring customer
satisfaction level both before and after specific marketing
interventions or awareness results pre- and post- ad campaigns
 Types of Marketing Research(3)

 Marketing Environment Research

 Customer Market Research

 Advertising and Promotional Research

 Product Research and Testing

 Sales Research and Analysis

 Distribution Research

Will discuss these in detail in separate session

 Who does Marketing Research?
 This may be done by a firm’s own market research staff alone, or given to
an outside research agency or use some combination of both options. Each
has their merits and demerits
 Internal Research- depends substantially on the nature and complexity of
the products-markets involved- examples of specialized industrial products or
technologically new product concepts; yet depending on them alone can
prevent new and useful insights, and could lack in objectivity
 External Research- definitely called for in large widespread one-time
projects; and where specialized tools/techniques are needed ; they bring in
more objectivity as not responsible for results; drawback could be to
establish the strong link between marketing research findings and ultimate
marketing decisions
 Since marketing research involves many and varied marketing and strategic
issues, a combination of internal and external research methods may be
called for
 Hence, sensible ‘outsourcing’ and/or ‘buying’ of external marketing research
becomes an important part of a firm’s marketing responsibility
 Steps In Marketing Research Project
Determine or define
Step 1 the marketing problem or
opportunity that is faced

Specify Gather and process

Step 2. what information is needed the information Step 5

Identify Analyze and interpret

Step 3 The sources of the the meaning Step 6
information

Present the findings Step 7

Decide on the to the decision makers
Step 4 Techniques for acquiring the
information
 Evolving Role of MR in Marketing
 First wave- marketing decisions based on data against
initial personal knowledge, hunches and guesses
 Second wave- moving from data based decisions to
information based decisions bringing in a managerial
perspective and with actionable insights
 Third wave- from information-based to system based
decision-making involving marketing analysis, IT and
marketing planning process
 Fourth wave- emergence of e-commerce and web-based
systems with large databases to move from mass
marketing to mass customization methods as used by
Amazon.COM, E-Bay or Dell Computers
 Marketing Research (MR) involves
People

 A major element of MR is all about PEOPLE

 PEOPLE are buyers, customers and consumers
 PEOPLE are users or clients of marketing
research studies
 PEOPLE are the doers who perform or carry out
marketing research
Nature of Marketing Information(1)

 Internal information -sales and cost data analysis

 External information - economic, industry environment data and
trends
 Position information – arriving at market shares analysis,
product-market positioning vis-à-vis competition
 Decision information – from various data analysis using
mathematical methods
 Forecast information – based on statistical trends analysis,
judgmental forecasting, market opinions and survey methods
In all these types of information, there is always a trade-off between
the value of information and the cost and time spent in putting
together such information
Nature of Marketing Information(2)

 Descriptive role – answers “what ”,”where”, “who”

and “when” questions
 Comparative role – answers “how” questions used
for performance measurement
 Diagnostic role – answers “why" questions and
provides explanations
 Predictive role – answers “what if” type of
questions to help determine future trends
 Descriptive nature of marketing
information
 What, where and when are customers are buying?
 Who are our existing and potential customers?
 What knowledge do customers have of a brand or range
of products?
 What attitudes do customers have towards specific
brands or products
 What advertising and marketing communications have
customers seen or been exposed to ?
 What should be the best way to reach customers?
 What after-sales service facilities are to be provided?
 Comparative nature of marketing
information
 How do you decide on selecting a good product?
 How do different market segments view the
same product?
 How does our product compare with the
competitors?
 How did this service performance differ from
previous experiences?
 How does this political party’s manifesto
compare with others?
 Diagnostic nature of marketing
information
 Why do you chose this brand?
 Why do customers buy this product over
alternatives?
 Why do customers believe this
advertisement ?
 Why do you shop at this supermarket?
 Why should sellers offer these features?
 Predictive nature of marketing
information
 What would happen if competitors reduced their
prices?
 What would happen if this new product is
launched?
 What would happen if this regulation is passed?
 What would happen if this political party came to
power?
 What could happen if government eliminate
taxes?
 Factors influencing MR decisions
 Relevance- to support future strategic and tactical decisions, not
just confirming previous wisdom
 Nature of information sought- is it already available from other
marketing intelligence
 Timing- always prior to taking key decisions with validity over
future time
 Resources availability- being available and means time and
money
 Research output- did research done achieve its objectives to seek
answers as research findings/conclusions with consequent
marketing outcomes/results
 Cost- benefit- did incurred research cost and time give required
positive benefits as research value and utility linked to MR budgets
 MR and Marketing Intelligence
 MR part of Marketing Intelligence System
 Marketing decisions need to take into account both
external/market considerations and internal/organizational
considerations
 Marketing decision-makers and/or Marketing Services
usually responsible for all Marketing Intelligence- who
initiate focused MR
 IT based and Web-based intelligence will now play bigger
role in Marketing Intelligence Systems
 Yet, human thought and managerial judgment essential that
data and information are transformed into actionable
knowledge to make business and marketing decisions
Information for Decision-making
 As already realized, information is essential to aid
decision-making
 Using information is a management discipline that needs
to be learnt, developed and integrated into managerial
thinking
 Good sound decisions are backed by authentic, reliable
and meaningful data
 Setting up and maintaining a ‘tailor-made’ marketing
information system (MIS) is vital for a firm’s success
 Such a MIS has to be based on internal and external
data; quantitative and qualitative inputs; and secondary
(desk) and primary (survey) data
Information Systems and MR(1)
 Use of information systems( whether computer
based or not) are revolutionizing the way
corporate decisions are being made
 MIS* -marketing information system is a subset
of management information system
 In increasingly computer and web-based
environments, both the MIS types are getting
blurred
 MR still plays a role where dynamic information
about markets and customers cannot always be
found out from mere sales/business analysis
Information Systems and MR(2)
An information system is a continuing and interacting structure
of people, equipment and procedures designed to gather,
sort, analyze, and distribute pertinent, timely, and accurate
information to decision makers.
While MR is concerned with the actual content of the
information and how generated, the information system is
concerned with managing the data flow from different
primary and secondary sources to managers who will use it.
This requires data bases to organize and store the information
and a decision support system to retrieve data, transform it
into usable information and disseminate it to users.
Information Systems and MR(3)
 Databases could be of (a) recurring day-day type like sales data (b)
periodic market/business information, trends et al ( c) non-recurring
one –time MR studies
 Information systems serves to emphasize that MR should not exist in
isolation as a one –time effort but be a part of a systematic and
continuous effort to improve the decision-making process
 Any so-called Marketing Decision Support System (MDSS) is meant to
combine marketing data from diverse sources into a single database
that line managers can enter interactively to quickly identify problems
and obtain standard , periodic reports, as well as answers to analytical
questions
 Evolving Role of MR in Marketing
 First wave- marketing decisions based on data against
initial personal knowledge, hunches and guesses
 Second wave- moving from data based decisions to
information based decisions bringing in a managerial
perspective and with actionable insights
 Third wave- from information-based to system based
decision-making involving marketing analysis, IT and
marketing planning process
 Fourth wave- emergence of e-commerce and web-based
systems with large databases to move from mass
marketing to mass customization methods as used by
Amazon.COM, E-Bay or Dell Computers
Marketing Research in Perspective
 Marketing research is dependent on the willing cooperation of both
the consumer public and organizations to provide information of
value to marketing decision makers.
 Direct marketing activity should not imply to the customer that it is
some form of marketing research
 Use of questionnaires as part of the a data building exercise for
direct marketing purposes cannot be described as marketing
research and should not be combined
 Marketing research information does not in itself make decisions; it
simply enables better informed decision-making.
 Managers still need to use judgment and when assessing
information. With growth in information sources as result of
computerization and the internet, managers need more guidance
and help in selecting appropriate information sources and their use
 Does MR always guarantee
success?
 Frankly, NO ! It all depends on the manner and rigor in
the way done ! Its effectiveness depends on:
 High quality and standard of research work
 Research findings and conclusions providing actionable
marketing information
 Clarity of report writing and presentation
 Willingness and organizational challenge to the status quo
 Where research helps to not only confirm organizational
understanding but reveal new insights as well
 Gaining political acceptability within the firm/client
organization to finally make research-based decisions
 Is MR still required and helpful?
 Overwhelmingly, the answer is YES !
 Without MR, decisions would be based on
hunches, guesses and poor judgments
 The main task is not so much the finding of
information; it is more to do with ensuring that
the information is relevant, and of a scale and
format that is manageable
 With the information explosion, the challenge is
to find that which is meaningful, has a sound
basis and provides the wherewithal to make
more informed and better decisions