Introduction to Marketing Research

1. Chapter 1 Introduction to Marketing Research

2. Redefining Marketing Research The American Marketing Association (AMA) redefined Marketing Research as: The function that links the consumer, the customer, and public to the marketer throughINFORMATION (Case 1)

3. Used to identify and define market opportunities and problems Information Generate, refine, and evaluate marketing performance Monitor marketing performance Improve understanding of marketing as a process Redefining Marketing Research

4. Definition of Marketing Research Marketing research is the systematic process of • identification • collection • analysis • dissemination • and use of information

5. Classification of Marketing Research Problem-Identification Research • Research undertaken to help identify problems which are not necessarily apparent on the surface and yet exist or are likely to arise in the future.Examples: market potential, market share, image, market characteristics, sales analysis, forecasting, and trends research. Problem-Solving Research • Research undertaken to help solve specific marketing problems. Examples: segmentation, product, pricing, promotion, and distribution research.

6. Marketing Research Problem Identification Research Problem-Solving Research Market Potential Research Market Share Research Market Characteristics Research Sales Analysis Research Forecasting Research Business Trends Research Segmentation Research Product Research Pricing Research Promotion Research Distribution Research A Classification of Marketing Research

7. Table 1.1 SEGMENTATION RESEARCH • Determine the basis of segmentation • Establish market potential and responsiveness for varioussegments • Select target markets • Create lifestyle profiles:demography, media, and product image characteristics PRODUCT RESEARCH • Test concept • Determine optimal product design • Package tests • Product modification • Brand positioning and repositioning • Test marketing Problem-Solving Research

8. PROMOTIONAL RESEARCH • Optimal promotional budget • Sales promotion relationship • Optimal promotional mix • Copy decisions • Media decisions • Creative advertising testing • Evaluation of advertising effectiveness Table 1.1 cont. 0.00% APR PRICING RESEARCH • Pricing policies • Importance of price in brand selection • Product line pricing • Price elasticity of demand • Initiating and responding to price changes $ALE Problem-Solving Research

9. Table 1.1 cont. DISTRIBUTION RESEARCH Determine… • Types of distribution • Attitudes of channel members • Intensity of wholesale & resale coverage • Channel margins • Location of retail and wholesale outlets Problem-Solving Research

10. Marketing Research Process Step 1: Defining the Problem Step 2: Developing an Approach to the Problem Step 3: Formulating a Research Design Step 4: Doing Field Work or Collecting Data Step 5: Preparing and Analyzing Data Step 6: Preparing and Presenting the Report

11. Marketing Research Process • Problem definition: defining the marketing research problem to be addressed is the most important step because all other steps will be based on this definition. Researcher need a combination of discussions with decision-makers, interviews with experts and analysis of readily available secondary data and intelligence.

12. Marketing Research Process • Developing an approach to the problem: development of a broad specification of how the problem will be addressed allows the researcher to break the problem into salient issues and manageable pieces. Approach also involves the formulation of an objective or theoretical approach, analytical models, research questions, hypotheses and the identification of characteristics or factors that influence the research design. (Chapter 2)

13. Marketing Research Process • Research design formulation:This is a framework for conducting the marketing research project in the most effective manner, given available resources. The research design specifies the details of the procedures necessary for obtaining the required information. (Chapters 3 to 12)

14. Marketing Research Process • Fieldwork or data collection:Data collection involves the use of some kind of field force who could operate either in the field, as in the case of personal interviewing on a quantitative and/or qualitative basis. Fieldwork may also be conducted from an office or with the growth of mobile devices, from anywhere to manage stages of qualitative research and/or surveys conducted online, phone, or mail. (Chapter 13)

15. Marketing Research Process • Data preparation and analysis: the editing, coding, transcription, and verification of data allow researchers to derive meaning from the data. (Chapters 14 to 21) • Report preparation and presentation:the findings are communicated to the client. The report should address the specific research questions identified in the problem definition, describe the approach, the research design, data collection and the data analysis procedures adopted, and present the results and the major findings. (Chapter 23)

16. Customer Groups • Consumers • Employees • Shareholders • Suppliers Uncontrollable Controllable Environmental Marketing Factors Variables Marketing • Economy • Technology • Laws & Regulations • Social & Cultural Factors • Political Factors • Product • Pricing • Promotion • Distribution Research Assessing Marketing Providing Information Decision Information Making Needs Marketing Managers • Market Segmentation • Target Market Selection • Marketing Programs • Performance & Control The Role of Marketing Research

17. Marketing Research Suppliers & Services Marketing research suppliers and services provide most of the information needed for making marketing decisions. Internal supplier—a marketing research department located within the firm. Most major corporations have their own marketing research departments. External supplier—research suppliers that are not a part of the firm. The external supplier may offer the entire range of marketing services including problem definition, developing an approach, questionnaire design, sampling, data collection, data analysis, interpretation, and report preparation and presentation.

18. Marketing Research Suppliers & Services

19. Marketing Research Suppliers & Services List the services offered by a full-service marketing research supplier. 1.Syndicated services—offered by research organizations that provide information from a common database to different firms that subscribe to their services. 2.Customized services—offer a wide variety of marketing research services customized or tailor-made to suit the specific needs of a particular client. 3.Internet services—offered by firms that specialize in conducting marketing research on the Internet.

20. Marketing Research Suppliers & Services List the services offered by a limited-service marketing research supplier. • Field services. The supplier will administer questionnaires, edit them, develop a coding scheme, and transcribe the data onto diskettes or magnetic tapes for input into the computer. • Focus Groups and Qualitative Services. These suppliers provide facilities, recruitment, and other services related to focus groups and other forms of qualitative research such as depth interviews and projective techniques.

21. Marketing Research Suppliers & Services List the services offered by a limited-service marketing research supplier. • Technical and Analytical services. These services include questionnaire design and pretesting, determining the best means of collecting data, sampling plans, and other aspects of the research design. These services also offer sophisticated data analysis using multivariate techniques. • Other services. Some firm focus on specialized services such as research in ethnic markets.

22. U.S. Rank Organization Headquarters Website U.S. Global Non-U.S. 2007 2006 Top 15 U.S. Marketing Research Firms

23. Criteria for Selecting a Research Supplier • 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? • Do the supplier's personnel have both technical and non-technical expertise? • Can they communicate well with the client? Competitive bids should be compared on the basis of quality as well as price.

24. Skills required for a successful career in marketing research • Good understanding of marketing principles. • Strong background in statistics and quantitative methods. • Ability to use Internet. • Solid understanding of the behavioral sciences. • Effective verbal and written communication skills. • Creativity and common sense.

25. Marketing Information System • Marketing Information System (MkIS) - An overall Marketing Information System can be defined as a set structure of procedures and methods for the regular, planned collection, store, analysis and presentation of information for use in making marketing decisions. (Kotler, at al, 2006)

26. Marketing Information System • Decision support systems (DSS) have been developed to overcome the limitations of MkISand to enable decision makers to interact directly with the databases and analysis models. • For the database it provides the research data, for the model base it develops marketing models and analytical techniques, and for the software base it develops specialized programs for analyzing marketing data.

27. Marketing Research Associations Online 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.researchindustry.org)

28. 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) Marketing Research Associations Online

29. International marketing research • Developments in global communications through the growth of online communications and social media have resulted in more knowledgeable and demanding domestic and business consumers in international markets. • Given the growth and reach of trade, marketing and advertising activities would fuel the need for international marketing research.

30. Ethical issues in marketing research • Protecting the public from misrepresentation and providing full and accurate information to the supplier regarding the true purpose of the research, the nature of the problem being addressed and time, cost and resource constraints. • Some of the ethical issues in marketing research that pertain to the supplier include adherence to the basic and commonly accepted standards of scientific investigation: research should be conducted in an objective manner free of personal biases and motivations.