Chapter One

Introduction to Marketing Research

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Definition of Marketing Research

Marketing research is the systematic and objective identification collection analysis dissemination and use of information

for the purpose of improving decision making related to the identification and solution of problems and opportunities in marketing. (Naresh Malhotra)

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What is Business Research?

A systematic Inquiry whose objective is to provide information to solve managerial problems. (Cooper)

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Systematic 1. Orderliness Ex. Sensex at 11 a.m. -Ex. 70 % of survey is done on Saturday and 30 % of survey on other days of week 2. Impartiality- Ex. Juniors Vs. seniors

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Why Study Research?

Research provides you with the knowledge and skills needed for the fast-paced decision-making environment

Factors stimulate scientific approach to decision making

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Managers increased need for more and better information The availability of improved techniques and tools to meet these need Information overload if discipline is not employed

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Need of Better Information

Global and domestic competition is more vigorous Explosive technology growth Innovation in communication Trade communication More variables to consider Question of quality of information and not quantity of information

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Need of Acquiring Research Skills

To gather more information before selecting a course of action Ex. Dissatisfied customer told by sales personnel To do a research study for highlevel executives

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continue..
To understand research design Ex. Evaluate the proposal from agency To evaluate and resolve a current management dilemma Ex. Analyze the past data of organization

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Different Styles of Research

Pure Research/Basic Research: is intended to expand the body of knowledge in a field or to provide knowledge for the use of others. Applied Research: is carried on for the solving of a particular problem or for guiding a specific decision and usually its results are private.

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Classification of Marketing Research

Problem/Opportunity Identification Research

Research undertaken to help identify problems/ opportunities 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.

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A Classification of Marketing Research

Marketing Research

Problem/ Opportunity Identification Research

Problem Solving Research

Market Potential Research Market Share Research Market Characteristics Research Sales Analysis Research Forecasting Research Business Trends Research Controlling & Monitoring

Segmentation Research

Product Research Pricing Research Promotion Research Distribution Research

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Problem Solving Research

SEGMENTATION RESEARCH
Determine the basis of segmentation
Establish market potential and responsiveness for various segments Select target markets Create lifestyle profiles: demography, media, and product image characteristics

PRODUCT RESEARCH

Determine optimal product design

Package tests Product modification Brand positioning and repositioning Test marketing

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Problem Solving Research

PROMOTIONAL RESEARCH
Sales promotion relationship Optimal promotional mix Copy decisions Media decisions Creative advertising testing Evaluation of advertising effectiveness

PRICING RESEARCH
Pricing policies Importance of price in brand selection Product line pricing

Price elasticity of demand

Initiating and responding to price changes

SALE

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Problem Solving Research

DISTRIBUTION RESEARCH

Determine Types of distribution Attitudes of channel members

Intensity of wholesale & resale coverage

Channel margins Location of retail and wholesale outlets

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Marketing Research Process

Step 1: Problem Definition Step 2: Development of an Approach to the Problem: Information needed,sources of information Step 3: Research Design Formulation Step 4: Fieldwork or Data Collection Step 5: Data Preparation and Analysis Step 6: Report Preparation and Presentation

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Characteristics of Good Research?

Purpose clearly defined Research process detailed Research design thoroughly planned Limitations frankly revealed High ethical standards applied

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Characteristics Good Research?

Adequate analysis for decisionmakers needs Findings presented unambiguously Conclusions justified Researchers experience reflected

(cont.)

The Manager-Researcher Relationship

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Managers obligations

Specify problems clearly Provide adequate background information Access to company information gatekeepers Mention time duration and budget Develop a creative research design Provide answers to important business questions Honesty Consider time and cost

Researchers obligations

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Manager-Researcher Conflicts

Managements limited exposure to research Manager sees researcher as threat to personal status Researcher has to consider corporate culture and political situations Researchers isolation from managers

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When Primary Research Should be Avoided

When information cannot be applied to a critical managerial decision Ex. Long term Financial planning, plant location study When managerial decision involves little risk When management has insufficient resources to conduct a study When the cost of the study/Research outweighs the level of risk of the decision Un-researchable question Ex. Should pension be given in your organization? When research is Politically motivated

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The Role of Marketing Research

Customer Groups Controllable Marketing Variables Product Pricing Promotion Distribution Assessing Information Needs Consumers Employees Shareholders Suppliers

Uncontrollable Environmental Factors Economy Technology Laws & Regulations Social & Cultural Factors Political Factors

Marketing Research

Providing Information

Marketing Decision Making

Marketing Managers Market Segmentation Target Market Selection Marketing Programs Performance & Control

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Marketing Research Suppliers & Services

Internal suppliers External suppliers

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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? Has the firm had experience with projects similar to this one? Do the supplier's personnel have both technical and nontechnical expertise? Can they communicate well with the client? Competitive bids should be obtained and compared on the basis of quality as well as price.