MARKET RESEARCH

Market Research
- function responsible for
acquiring and evaluating
market and consumer-
based information for
decision making and the
determination of marketing
strategic direction
 Steps in the Marketing Research Process

Problem/ Establishment Research

Research need
opportunity of research design
determination
definition objectives determination

Sample size Data Determination Information

and sampling
plan
collection of data access sources/types
forms design methods identification
determination

Report
Data preparation
Data analysis and
collection
presentation
 Step 1: Research need
determination
The problem situation
has to be assessed
initially to determine if
marketing research is
needed at all.
 Step 2: Problem/
Opportunity Definition
Both problems and
opportunities can be
subjects of marketing
research
 Step 3: Establishment of
research objectives
The purpose of
objectives is to gather
precise information to
address information gaps
SMART
 Step 4: Research design
determination
methods and
procedures for the
collection and analysis of
information must be
determined
4 major types of MRD
 Observational – can be
made any one time or
regularly within a period
of time
 Experimental (causal)
– laboratory experiments
and test marketing
4 major types of MRD
 Qualitative (exploratory)
– aims to explore
undefined research
subjects (FGD & interview)
 Quantitative (Descriptive)
– number of respondents
is relatively large (surveys)
 Step 5: Information
source identification
2 types of info
1. Primary information
- gathered by the
researcher him/herself
for the specific research
problem
 Step 5: Information
source identification
2 types of info
2. Secondary information
- acquired from previously
conducted research,
journals, periodicals and
others similar sources
Step 6: Determination of
data access methods
person-administered
surveys
computer-administered
surveys
self-administered surveys
hybrid surveys
 Step 7: Data collection
forms design
survey questionnaire
 Major parts:
• Introduction
• Screening
• Core
• Classification
Types of questions:
 Categorical response questions
- dual choice and multiple choice
 Open-minded questions
- can answer in your own words
 Metric questions
- require respondents to answer
using a number on a scale developed by
the researcher
 Step 8: Sample size and
sampling plan determination
In order to achieve 100%
accuracy in the conduct of
consumer surveys, it is ideal
to give questionnaires to
every member of the target
population (census)
 Step 8: Sample size and
sampling plan determination
 Sample size – determined
using confidence level,
variability and margin of
error
 After the sample size has
been calculated, the
sampling plan is determined.
 Nonprobability sampling
- all members of the survey
population do not have equal
chances of being selected to
be part of the sample
• Convenience sampling
- researcher selects relatives,
friends or classmates to be
given survey questionnaires
• Judgment sampling
- researcher gives survey
questionnaires to individuals
who in his/her judgment, are
qualified to participate
• Referral sampling
- Researcher asks initial
respondents to provide other
qualified respondents for the
survey
• Quota sampling
- Researcher specifies the
proportions of various
classification to be included
in the survey
 Probability sampling
- methods utilize the
principle of randomness
(every member of the
survey population has an
equal non-zero chance of
being selected as part of the
sample)
Types:
• Simple random sampling
- Researcher selects survey
respondents so that each member
of the population has an identical
chance to be included in the
sample
• System sampling – researcher
selects respondents using a
sample frame, a random
starting point, and a skip
interval(sample size)
• Cluster sampling – survey
population is divided into
subgroups, each of which
represents the entire survey
population
• Stratified sampling - survey
population is divided into
subgroups, and proportional
samples from all the subgroups
are included in the sample using
the principle of randomness
 Step 9: Data Collection
 Process where the
questionnaires are
administered to the
selected respondents
 Problems may arise:
fieldworker error, break
offs , item omission
 Step 10: Data analysis
 collected data is
summarized and
generalized
 Common statistical used:
percentage, mean, range, standard
deviation, hypothesis tests,
confidence interval, percentage and
mean difference tests, cross
tabulation, correlation, and
regression analysis
Step 11: Report preparation
and presentation
 This serves as the basis
for strategic or tactical
decisions
 Tables, graphs and charts
must be incorporated for
the user to visualize the
results and findings
 Steps in the Marketing Research Process

Problem/ Establishment Research

Research need
opportunity of research design
determination
definition objectives determination

Sample size Data Determination Information

and sampling
plan
collection of data access sources/types
forms design methods identification
determination

Report
Data preparation
Data analysis and
collection
presentation
 Making Marketing
Research-based Decisions
• External factor research
- helps marketers in making
macroenvironmental shifts
• Observational research
-invaluable aid in
determining consumer
behavior
• Test marketing – company
can have the opportunity
to recalibrate elements in
the marketing mix and to
measure their effects on
consumer demand and
overall satisfaction
• Target marker studies
– help identify, quantify and
understand the target market
better
• Concept, product development,
and product studies
– used o decide on the
packaging, to determine the
market reaction, and to justify
brand positioning
• Pricing Tests – can be
utilized by marketers to
calculate a product’s or
services optimal price
• Location studies
- determine ideal retail store
locations and is a valuable
tool in site selection
• Advertising pre- and post-
testing
– test can be determine thru
public relations and media
placement
• Usage, attitude, and image
studies
- Provide cost-effective ways on
how to increase a
product’s/service’s awareness
QUIZ
J
For 1/2 crosswise, answer the
following:
1.What is consumer markets?
2.What are the nine stages of a
family’s life cycle?
3.What is
organizational/business
markets?
4.What are the roles involved in
organizational buying
decisions?