Marketing Research

What is Marketing research ?

Some questions Marketing management may

encounter :

Could Egg be promoted as a brand ?

What analysis needs to be done to decide
Takeover/acquisition of a company ?
How to stop violence in schools ?
What promotion-policies to adopt for workers ?
Which schemes should an NBFC launch?
What makes a person cry?

What is MR ?
Questioning

Why?
What?
Where?
How?
Examining
Probing
Investigating

Marketing research ..
Examples :
Identifying new products
Improvements in new products
Pre-testing an ad campaign
Naming a brand
Decisions regarding pricing
Identifying users profile

Marketing research ..
Assesses information needs
Which information?
In which format?
From where?
Provides information
Qualitative or Quantitative
Helps / leads to decision making

Consumers
B2 B users
Shareholders etc

Marketing
Variables:
Four Ps
of
Marketing

Marketing
research

Marketing
Decision
Makers

Environmental
factors:
Economy
SocioEconomicPolitical
Factors
Technology

What is MR?
Difference between Market research and

Marketing research.
Xerox example

Its a Market Intelligence System integrated

with Marketing Decision System.

Management problems or Questions
related to marketing decisions are answered
through MR

Redefining Marketing Research

The American Marketing Association (AMA)
redefined Marketing Research as:
The function which links the consumer, the
customer, and public to the marketer
through INFORMATION

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.

What is Market Research?

A systematic Inquiry whose objective is to

provide information to solve Marketing

problems.

Is it necessary ?
What if the research is not done?
Example: Unilevers Power detergent

To compete in the detergent market in Europe

Based on manganese based catalyst
Launched without market trials/ product tests
Lab reports about damaging clothes was ignored
P&G started a campaign against Power
Had to be withdrawn
Loss of $ 90 million

(SOURCE :MR by Parsuraman ..)

MR : broadly two types..

Problem Identification Research ( or

opportunity identification)
Problem Solution Research

A Classification of Marketing
Research Marketing Research

Problem
Identification Research
Market Potential Research
Market Share Research
Market Characteristics Research
Sales Analysis Research
Forecasting Research
Business Trends Research

Problem Solving
Research

Segmentation Research
Product Research
Promotion Research
Distribution Research

Problem Solving Research

PRODUCT RESEARCH

Test concept

Determine optimal product design

Package tests

Product modification

Brand positioning and

repositioning

Select target markets

Test marketing

Create lifestyle profiles:

demography, media, and
product image characteristics

Control score tests

SEGMENTATION RESEARCH
Determine the basis of segmentation
Establish market potential and
responsiveness for various
segments

Problem Solving Research

PROMOTIONAL RESEARCH

0.00%

APR

Optimal promotional budget

Sales promotion relationship

Optimal promotional mix

Copy decisions

Media decisions

Creative advertising testing

Evaluation of advertising effectiveness

Claim substantiation

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

PRICING RESEARCH

Pricing policies

Importance of price in brand selection

Product line pricing

Price elasticity of demand

Initiating and responding to price changes

$ALE

MR
In-house research
Commissioned Research ( out sourced)
Syndicated Research
Common Users ( user groups)
Single source research -: shared by many users

Areas of MR
The Market Research
Size
Location
Consumer profile
Segmentation
Trends
Competition ( Substitutes)

 Market structure
Major Players
Branding: Shares held
Distribution Structure
Trends in Shares
Consumer Perceptions
Underlying needs ( need identification)
Perception of Products / brands
Perceptions of Suppliers and distributors

 Products
Analysis of available products
Features
Strengths
Weaknesses

Usage and consumption habits

Patterns of uses ( trends /fashion/ Practices)
Product differentiation
Product linkage to market and market segmentation ( eg.
Milk and milk substitutes)
Product Innovations and life cycles ( also role of
technology)
Consumer satisfaction

 New Product development

Unsatisfied needs
( need gap analysis)
Communication of new products
New product branding
Pre-launch research
Product tests
Pricing
Pricing structure
Past trends
Sensitivity
Predicted effects of price changes

 Advertising and Promotion

Campaign Planning
Creative developments
Promotion evaluation
Sales activity planning
Media data
Media Plan and evaluation

 Distribution/ retailing of Product/ services

Levels
Sales structure
Retailer/ Agents
Trade terms
Effectiveness

What research is possible for ..

A Departmental store
Delhi Metro / Delhi Transport Corporation

(DTC)
Hotel /Resort
Trade Exhibition ( eg ITPO )
Software company
BPO
FMCG co.
Airline

Basic Principles of MR
Timeliness & relevance
Clearly defined objectives
For managerial decisions, not after the

decisions

Limitations
When the basic principles are violated

research gives wrong results

P&G launched Ariel in Cairo after three years

of research but did not succeed
( launched after one year of research under
changed economic conditions )
Milkfood ( Yogurt) acquired huge capacity only
later to discover that a small market exists

It is not use worthy when the cost of the

research is higher than the value

The results can not be generalized

Four Stages: Research Life Cycle

Pre-birth: establishing needs
Concept testing etc
Youth: Getting Product / Services off the ground
Market planning, Pricing, Advertising Pre tests,
Packaging
Maturity : Improving Performance
Customer satisfaction, Brand equity
Old Age : Next Move / Plan
Expanding new market, new launches etc

Main Divisions of MR
Marketing Research

Product
Research

Customer
Research

Sales
Distn
Research

Promotion
Reserach

Complex Buyer behaviour

Cultural factors
Cultural Beliefs and value Life styles etc
Sociological
Social class structure
Family / group influence
Opinion Leadership
Economic
Price
Delivery
Payment terms
Sales service etc.

Psychological factors

The above three namely Cultural,

Sociological and economic factors together

interact with psychological factors. These
are:
Cognition
Learning Process
Interpersonal response traits
Attitudes
Motivations

 These four factors lead to Buying

Proposition for a product or service

That is the most important aspect of

research in Marketing.

Sequential stages of MR
Research brief
Research Proposal ( or work plan )
(To conduct or not to conduct research)
Data collection
Analysis and evaluation
Preparation of report

Research Process
Various stages of a research project are:
Formulation of the problem
Literature survey
Research Design
Exploratory: Secondary data, Experts, Dipstick,
Qualitative
Conclusive: Descriptive, Cross-section,
Longitudinal, Time series
Experimentation : ( Causal research) Basic,
Statistical

Problem Formulation
Definitions
Development
Improvement
Refine
Correct
Amend
Modify
Using: -Experts Opinion

- Literature
- Discussions
- Pilot

Problem Formulation
If the problem is not clearly defined:
The information needs will be wrongly
identified
A wrong source may be approached
Irrelevant data may be collected
Leading to wrong conclusions

Problem Formulation
Examples :
( Wrong / incorrect problem identification )
Declining brand share : Tea
Large Department Store
Magazine / periodicals

Problem Formulation: Sequential

Process
Step I : Discussion with Decision maker

II: Industry experts

III: Secondary data
IV: Preliminary research

 Discussion with Decision maker

Events that led to the need for action
Alternatives open
Decision criteria
Information needed to take the decision
BUT it is always not possible

 Industry experts
Specially industrial products
Technology based products /services
Secondary data
Helps in identifying trends
Descriptive research may suggest limitations of
the research
Qualitative / Dipstick research

Factors affecting Problem definition process

Past information and forecasts
Resources and constraints
Organizations goals & Objectives
Buyers behaviour
Legal environment
Economic conditions
Technology

Managers to the Researchers Problem

: Convert managers problem into Researchers
Problem
Should there be a

price-cut?
Should a new product
be introduced ?
Strategy to increase
market share ?

Study the buyer

behaviour at each
price level
Assess the market size
& potential; current
patterns
Identify perceived
strengths &
weaknesses

Approach to the problem

Approach

Objectives
Theoretical
foundations

Analytical: Research
Descriptive Questions

Research Design

Hypothesis

Research Problem Should

Have a clearly defined OBJECTIVES
Be Free From Ambiguities

- Doubts

- Definitional Weakness
Clearly Lay Down
Assumptions
Limitations

Be Achievable Within
Time Estimates
Cost Estimates

Why Study Marketing Research?

Research provides you with the knowledge

and skills needed for the fast-paced

decision-making environment for
marketing of products and services

Why Managers need Better

Information

Global and domestic competition is more

vigorous
Organizations are increasingly putting more
emphasis on information based decision
making .
Data has gained importance as it adds value
to the managerial decisions .

Once again WHY learn

Market Research ?

To gather more information before selecting

a course of action
To do a high-level research study
To understand research design
To evaluate and resolve a current
management dilemma
To establish a career as a research specialist

What is Good Research?

Following the standards of the scientific

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

What is Good Research? (cont.)

Following the standards of the scientific

method (cont.)
Adequate analysis for decision-makers
needs
Findings presented unambiguously
Conclusions justified
Researchers experience reflected

The Manager-Researcher
Relationship
Managers obligations

Specify problems
Provide adequate background information
Access to company information gatekeepers

Researchers obligations
Develop a creative research design
Provide answers to important business questions

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

When Research Should be

Avoided

When information cannot be applied to a

critical managerial decision

When managerial decision involves little
risk
When management has insufficient
resources to conduct a study
When the cost of the study outweighs the
level of risk of the decision

The Role of Marketing Research

Customer Groups

Consumers
Employees
Shareholders
Suppliers

Uncontrollable
Environmental
Factors

Controllable
Marketing
Variables

Marketing
Research

Product
Pricing

Economy
Technology

Promotion
Distribution

Assessing
Information
Needs

Providing
Information

Marketing
Decision
Making

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

Laws &
Regulations
Social & Cultural
Factors
Political Factors

Marketing Research Suppliers &

Services
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