Marketing Research

 Def. - Formal communication link with the

environment to provide accurate and useful
information for better decision making.

 Systematic process of specifying, collecting,

analyzing, and interpreting.

 Useful for planning, problem-solving, and

controlling (see Exhibits 1.1)
 Application of MR
 Marketing research activities can be divided into
four main strategic categories:
 Market Analysis
 Identifying and evaluating opportunities
 Competitive Analysis
 Market Segmentation
 Analyzing market segments and selecting target
markets
 Marketing Strategy Design
 Planning and implementing a marketing mix
 Analyzing Marketing Performance
 Managerial Value of MR
 Value
 Relevance
 Quality
 Timeliness
 Completeness

 Data vs. Information vs. Knowledge

 Science or Art?
 Objectivity of Investigator
 Unbiased
 Procedural integrity
 Accurate reporting
 Accuracy of Measurement
 Valid and Reliable
 Meaningful and useful
 Appropriate design (sample, execution)
 Open-minded to Findings
 Willing to refute expectations
 Acknowledge limitations
 Difficulties of Achieving “Scientific
Studies” in Marketing
 Investigator is deeply involved in the use of the
results.
 Imprecise measuring devices
 Very complex and interrelated subject matter
 Difficulty using experiments
 Influence of the measurement process on results
 Time pressure for results
 The Research Process
1. Define the Research Problem
2. Determine Research Design and Data Sources
3. Develop Sample Design and Sample Size
4. Develop Measurement Instruments
5. Collect and Prepare Data
6. Analyze and Interpret Data
7. Communicate Results
 Step 1: Identifying and Formulating the
Research Problem/Opportunity
 Process begins with the recognition of a marketing
problem or opportunity:
 Marketing Problem: Set of circumstances in a market
and/or in the company that requires modified or new
marketing strategy to respond in a way that will
maintain or improve performance.
 Market Opportunity: Set of circumstances in a
market that defines a situation in which a company can
improve performance by creating modified or new
marketing strategy.
Step 2: Determine the Research Design and
Data Sources
 Exploratory, Descriptive, Causal
 Secondary vs. Primary Data
 Survey research
 Observation research
 Focus Groups
 Experiments
Step 3: Design Sample

 Sample: a subset from a larger population

 Probability vs. nonprobability sample
 Number of respondents
 Method of contact
 Management of non-response
 Detailed field instructions
 Handling of data
Step 4: Develop Measurement Instruments

 What observation form or questionnaire will be

best suit the needs of the project?
 Anonymous? Confidential?
 Structured vs. open-ended
 What types of rating scales?
 What is the layout going to look like?
Step 5: Collect and Prepare Data

 Editing and Coding

 Data Entry
 Data Cleansing
 Summarization
 Error Assessment
 Reliability/Validity
Step 6: Analyzing the Data

Purpose of the analysis is to interpret and draw

conclusions from the mass of collected data

Must select appropriate analytic tools to match

data, research objectives, and information needs
 Step 7: Communicating Results

 Researchers must remember to speak in managerial

terms rather than in the terminology understood only
by research specialists
 Reports should outline technical details of the
research project and methods in an appendix, if at all
 Researchers should spell out their conclusions in
clear, concise, and actionable terms
 Be open-minded to findings, be willing to refute
expectations, and acknowledge limitations.