1

Basit Afzal

Chapter 3
Marketing Research
The function that links the
consumer, customer, and
public to the marketer
through information. The
information is used to:
1. Identify and define
marketing opportunities
and problems.
2. Generate, refine, and
evaluate marketing
actions.
3. Monitor marketing
performance.
4. Improve understanding of
marketing as a process.

Reasons for Doing Marketing
Research: The Five Cs
1. Customers: To determine
how well customer needs
are being met, investigate
new target markets, and
assess and test new
services and facilities.
2. Competition: To identify
primary competitors and
pinpoint their strengths
and weaknesses.
3. Confidence: To reduce the
perceived risk in making
marketing decisions.

Reasons for Doing Marketing
Research: The Five Cs
4. Credibility: To increase the
believability of promotional
messages among
customers.
5. Change: To keep updated
with changes in travelers
needs and expectations.
2
Reasons for Not Doing
Marketing Research
1. Timing: It will take to much time.
2. Cost: The cost of the research
is too high.
3. Reliability: There is no reliable
research method available for
doing the research.
4. Competitive intelligence: There
is a fear that competitors will
learn about the organizations
intentions.
5. Management decision:
Management prefers to use
own judgment.
Marketing Research Process
Formulate Problem:
Define research problem
Identify research objectives
and related questions
Select Research Design And
Data Collection Method:
Collect and analyze secondary
information
Select research design and
primary data collection method


Marketing Research Process
Select Sample And Collect
Data:
Decide on sample design
and collect primary data
Analyze And Interpret Data
Analyze and interpret
primary data
Prepare Research Report:
Draw conclusions and
make recommendations
Communication of the
Research Results
Present results to all
interested parties


The Process of
Problem Definition
Ascertain the
decision makers
objectives
Ascertain the
decision makers
objectives
Ascertain the
decision makers
objectives
Understand
background of
the problem
Understand
background of
the problem
Understand
background of
the problem
Isolate/identify
the problem, not
the symptoms
Isolate/identify
the problem, not
the symptoms
Isolate/identify
the problem, not
the symptoms
Determine unit of
analysis
Determine unit of
analysis
Determine unit of
analysis
Determine
relevant variables
Determine
relevant variables
Determine
relevant variables
State research
questions and
objectives
State research
questions and
objectives
State research
questions and
objectives
3
Statement of
marketing
problem
Statement of
marketing
problem
Statement of
marketing
problem
Exploratory
research
(optional)
Exploratory
research
(optional)
Exploratory
research
(optional)
Statement of
marketing
problem
Broad
research
objectives
Broad
research
objectives
Broad
research
objectives
Specific
Objective 1
Specific
Objective 1
Specific
Objective 1
Specific
Objective 2
Specific
Objective 2
Specific
Objective 2
Specific
Objective 3
Specific
Objective 3
Specific
Objective 3
Research
Design
Research
Design
Research
Design
Results Results Results
Basic Questions -
Problem Definition
What is the purpose of the
study?
How much is already known?
Is additional background
information necessary?
What is to be measured?
How?
Can the data be made
available?
Should research be
conducted?
Can a hypothesis be
formulated?
Research Design
The research design is the master plan
specifying the methods and
procedures for collecting and
analyzing the needed information.

Is the Specification of Procedures for Collecting and
Analyzing the data
Necessary to help identify or react to a Problem or
Opportunity such that
The difference b/w Cost of obtaining various levels of
accuracy & expected
value of info associated with each level is maximized
Types of Research Design
Three traditional categories
of research design:
Exploratory
Descriptive
Causal
The choice of the most
appropriate design depends
largely on the objectives of
the research and how much
is known about the problem
and these objectives.

4
Basic Research Objectives and Research
Design
Research Objective Research Question
What new Product should be developed What benefits do people seek
What Product appeal will be effective in
Advertising Nature of Customer dissatisfaction
How can I service be improved

DESCRIPTIVE
How should new Product be distributed Where do people buy similar Products
What should be the target segment What kind of people now buy our products
How should our Product be changed What is our current image

CAUSAL
Will an increase in service staff be profitable What is relationship of service staff & Rev
Which Adv Program for Public transit should What would get people out of car and into
Be run Public transit
Should a new budget or No-Frills class of airfare Will the No-Frills airfare generate
Be introduced sufficient new Passengers to offset loss of
revenue from existing
EXPLORATORY
Research Design: Exploratory Research
Exploratory research is most commonly
unstructured, informal research that is
undertaken to gain background
information about the general nature of
the research problem.

Exploratory research is usually conducted
when the researcher does not know much
about the problem and needs additional
information or desires new or more recent
information.

Research Design: Exploratory Research
Exploratory research is used in a number of
situations:

To gain background information
To define terms
To clarify problems and hypotheses
To establish research priorities


Research Design: Exploratory Research
A variety of methods are available to
to conduct exploratory research
:
Secondary Data Analysis
Experience Surveys
Case Analysis
Focus Groups
Projective Techniques


5
Research Design: Descriptive Research
Descriptive research is undertaken to provide
answers to questions of who, what, where, when,
and how but not why.
Two basic classifications:

Cross-sectional studies
Longitudinal studies
Research Design: Descriptive Research
Cross-sectional Studies
Cross-sectional studies measure units from a
sample of the population at only one point in
time.

Sample surveys are cross-sectional studies
whose samples are drawn in such a way as to be
representative of a specific population.

On-line survey research is being used to collect
data for cross-sectional surveys at a faster rate of
speed.


Research Design: Descriptive Research
Longitudinal Studies
Longitudinal studies repeatedly draw sample
units of a population over time.

One method is to draw different units from the
same sampling frame.

A second method is to use a panel where the
same people are asked to respond periodically.

On-line survey research firms recruit panel
members to respond to online queries.


Research Design: Descriptive Research
Longitudinal Studies
Two types of panels:
Continuous panels ask panel members the
same questions on each panel measurement.
Discontinuous (Omnibus) panels vary
questions from one time to the next.

Longitudinal data used for:
Market tracking
Brand-switching
Attitude and image checks

6
Types of Experiments
Two broad classes:
Laboratory experiments: those in which the
independent variable is manipulated and
measures of the dependent variable are taken
in a contrived, artificial setting for the purpose
of controlling the many possible extraneous
variables that may affect the dependent
variable

Field experiments: those in which the
independent variables are manipulated and
measurements of the dependent variable are
made on test units in their natural setting
Research Design: Causal Research
Causality may be thought of as
understanding a phenomenon in terms
of conditional statements of the form If
x, then y.

Causal relationships are typically
determined by the use of experiments,
but other methods are also used.




P
R
O
B
L
E
M

Exploratory Exploratory Exploratory Exploratory
Research Research Research Research
Possible
Causes
Of the
Problem
Probable
Causes
Descriptive Descriptive Descriptive Descriptive
Research Research Research Research
Causal Research Causal Research Causal Research Causal Research
DETECTIVE FUNNEL
Primary Research Methods & Techniques
Surveys

Personal
interview
(intercepts)
Mail
In-house, self-
administered
Telephone,
fax, e-mail, Web
Surveys

Personal
interview
(intercepts)
Mail
In-house, self-
administered
Telephone,
fax, e-mail, Web

Quantitative Data
Primary
Research
Experiments
Mechanical
observation
Simulation

Qualitative Data
Case studies
Human
observation
Human
observation
Individual depth
interviews
Individual depth
interviews
Focus groups
7
Translating Marketing Decision Problems
to Research Questions (I)
Decision Problems
1. Develop package for a new
product


2. Introduce new product

3. Increase market penetration
through opening new stores
Research Questions
1. Evaluate effectiveness
of alternative package
designs

2. Design a test market

3. Evaluate prospective
store locations
Translating Marketing Decision
Problems to Research Questions (II)
Decision Problems
4. Should the Ad campaign
be changed?

5. Should the price of the product
be changed?

6. What can Ford do to expand
its share of the automobile
market?
Research Questions
4. Assess consumers awareness of
the current Ad

5. The impact of price change on
sales

6. Find unsatisfied needs of
automobile users
Marketing Decision Problems Vs.
Marketing Research Questions
Marketing decision problems
Action oriented
Want answers

Marketing research questions
Information oriented
Ask questions

A marketing decision problem can often lead to a set of
marketing research questions

Uncertainty Influences the
Research Design
Increasing Uncertainty
Exploratory
Research
Descriptive
Research
Causal
Research
Will buyers purchase
more of our product in
a new package?
What kinds of people
are buying our products?
Who buys our competitors
products?
Our sales
are declining
and we do not
know why.
(Ambiguous Problem)
(Aware of Problem) (Problem Clearly Defined)
8
Qualitative Vs.
Quantitative Approach
Qualitative approach
focuses on collecting information
without relying extensively on
numbers
less objective means of research
typically provides deep meaning

Quantitative approach
focuses primarily on collecting
numbers
fairly objective means of research
typically provides precise
information
The Marketing Research Design
(1)
Identifying the
Problem and State
the Marketing
Research
Objectives

(2)
Creating of the
Research Design

(2)
Creating of the
Research Design

(2)
Creating of the
Research Design

(3)
Choosing the
Method of
Research

(3)
Choosing the
Method of
Research

(3)
Choosing the
Method of
Research

(4)
Selecting the
Sampling
Procedure

(4)
Selecting the
Sampling
Procedure

(4)
Selecting the
Sampling
Procedure

(5)
Collecting the
Data

(5)
Collecting the
Data

(5)
Collecting the
Data

(6)
Analyzing the
Data

(7)
Writing and
Presenting the
Report

(7)
Writing and
Presenting the
Report

(7)
Writing and
Presenting the
Report

(8)
Follow-up

(8)
Follow-up

(8)
Follow-up

Problem
discovery
Problem definition
(statement of
research objectives)
Secondary
(historical)
data
Experience
survey
Pilot
study
Case
study
Selection of
exploratory research
technique
Selection of
basic research
method
Experiment


Survey


Observation
Secondary
Data Study
Laborator
y
Field Interview
Questionnair
e
Selection of
exploratory research
technique
Sampling
Probability Nonprobability
Collection of
data
(fieldwork)
Editing and
coding
data
Data
processing
Interpretation
of
findings
Report
Data
Gathering
Data
Processing
and
Analysis
Conclusions
and Report
Research Design
Problem Discovery
and Definition