For marketers and management students

2. Objectives
 At the end of this lecture you should be able to;
1. Define Market Research
2. Explain the importance of carrying out market
research
3. Identify and explain different types of research
4. Explain stages followed in market research

3. Marketing Research: Definition and Purpose
 Many definitions of Marketing Research:
 “Marketing research is the systematic design, collection,
analysis and reporting of data and findings relevant to a
specific marketing situation facing the company.” [Philip
Kotler
 “the systematic gathering, recording and analyzing of all
data about problems relating to the marketing of goods and
services.” [The American Marketing Association]
 Basic Purpose of Marketing Research
 Marketing research reduces uncertainty or error in decision-
making. The information collected by conducting marketing
research is used for problem solving and decision making in
various areas of marketing.

4. What are the benefits of market research..
Can help the marketing manager to:
(1) Identify and define marketing problems
and opportunities accurately;
(2) Understand markets and customers and
offer reliable prediction about them;
(3) Develop marketing strategies and
actions to provide a competitive edge; and
refine and evaluate them;
(4) Facilitate efficient expenditure of funds;
(5) Monitor marketing performance; and
(6)Improve the understanding of marketing
as a process.
Is important because
of
 Rapid changing
marketing
environment;
 Need for up-to-date
information for
strategically
important areas;
 Importance of
research as an
integral part of
better operation.

5. THE MARKETING INFORMATION SYSTEM AND
MARKETING RESEARCH
 Marketing research is not the only source of
information that marketing managers need in making
decisions.
 Information may also be generated by various
components of the Marketing Information System
(MIS) consisting of a series of interactive
components (Figure 1.1).
 There are four subsystems of the MIS: internal
reports, marketing intelligence, marketing research,
and marketing decision support.

6. When Marketing Research may not be necessary
 Marketing research is almost always problem-
oriented. Whether to conduct marketing research
depends on the manager’s experience and wisdom;
nature of decision situation [repetitive or atypical];
degree of uncertainty; and the value and
importance of the research.
 Marketing research may not be necessary if:
 Information is available/outcomes known.
 Insufficient time for marketing research.
 Non-availability of resources.
 Cost Vs Value of the Research.
 Outcomes known.

7. MAIN DIVISIONS OF
MARKETING RESEARCH
1. Market and Sales Research
2. Product Research
3. Price Research
4. Distribution (Place) Research
5. Promotion Research.

8. Types of Marketing Research
BasicResearch
Preliminary Conclusive Performance
AppliedResearch
ResearchBasedon
Purpose
PrimaryResearch
SecondaryResearch
ResearchBasedon
SourceofData
QualitativeResearch
QuantitativeResearch
ResearchBasedon
DataCollectionM
ethod
M
arketingResearch

9. Qualitative Vs Quantitative Research
 Qualitative research involves collecting, analyzing, and
interpreting data by observing what people say or do.
 Uses a smaller number of individuals and ‘observes’ them for a
time span of between 1 and 2 hours. -----“soft approach”
 Quantitative research is the traditional mainstream of
marketing research.
 It is also called “survey research”. Involves the use of
questions and large number of respondents within a brief span
of time, say 15 to 45 minutes.
 Its purpose is very specific-- e.g. a nationwide survey on the
Road Pricing System for cars. The ‘hard approach’ to marketing
research.

10. THE MARKETING RESEARCH PROCESS
 Every research project is different and unique.
 However, research procedures and activities are
common and constitute the marketing research
process .
 This process:
 is an well-organized sequence of ten steps involved in
the systematic collection and analysis of marketing
data.
 provides a description of how a marketing
investigation is designed and implemented, and helps
to guide the execution of a research project.
 is interactive, a researcher may not follow the ten
steps exactly in the order presented here.

11. Ten Steps in the Marketing Research Process
1. Define the Problem
2. Establish Research Objective
3. Determine Research Design
4. Identify Information Needs and Sources
5. Determine Methods of Data Collection
6. Design Instrument for Data Collection
7. Determine Sample Plan and Sample Size
8. Collect Data
9. Analyze Data
10. Prepare and Present Final Report

12. Step 1: Define the research problem I
 The very first, and the most important step in
research:
 “A problem well-defined is half solved”
 Nature of the problem determines the type of study to
conduct.
 Symptoms, for example, declining sales, profit, market
share, or customer loyalty are not problems.
 A research problem must be accurately and precisely
defined, otherwise the task of designing a good research
difficult.
 Marketing problems may be difficulty-related or
opportunity-related. For both, the prerequisite of
defining the problem is to identify and diagnose it.
 Conduct situation analysis. It provides the basic motivation and
momentum for further research.

13. Step 1: Define the research problem II
 Get the right answer to the question:
 “What exactly does the firm want (or need) to know?”
 The basic question to address is:
 “How to know that there is a problem?”
 Problems may become apparent from:
 deviation from the business plan, company records and
reports, customer complaints and grievances, conversations
with company employees, and observation of inappropriate
behavior or conditions in the firm;
 the success of the firm’s competitors, and published
materials reporting issues such as, changes in market or
environmental trends, new government regulations,
anticipated changes in the economy, etc.)

14. Step 2: Establish Research Objectives
 “If you do not know what you are looking for, you won’t find it”
 Research objectives are related to and determined by
the problem definition. In establishing research
objectives, the researcher must answer the following
questions:
i) What specific information should the project provide?
ii) If more than one type of information will be developed
from the study, which is the most important? and
finally,
iii) What are the priorities?
 When specifying research objectives, development of
hypotheses, might be very helpful.
 When achieved, objectives provide the necessary
information to solve the problem.

15. Step 3: Research Design
3. Research Design step involves the development of a
research plan for carrying out the study.
 There are a number of alternative research
designs. The choice will largely depend on the
research purpose.
EXPLORATORY
Focus Group;
Observation;
Others.
QUALITATIVE RESEARCH
DESCRIPTIVE
Survey research
CAUSAL
Laboratory Experiment
Field Experiment
QUANTITATIVE RESEARCH
MARKETING RESEARCH

16. Step 4: Specify the information required.
Step 5: Design the method of collecting the needed information.
4.After defining the
problem the
researcher must
determine what kind
of information will
best meet the
research objectives.
 Secondary
information
 Primary
information
5. Marketing research
information may be collected
in many ways:
 via mail, telephone, fax,
Internet, or personal
interview.
 using consumer panels,
consisting of individuals
who have agreed to
provide purchasing and
media viewing behavior.

17. Step 6: Design the questionnaire.
 A primary responsibilities of a marketing researcher
is to design the data collection instrument or
questionnaire in a manner so that it is easily
understood by the respondent and administered to
them.

18. Step 7: Decide on the sampling design.
Step 8: Manage and implement the data collection.
 The researcher must determine the criteria that
would enable a respondent to take part in a study.
 The sampling design must result in the proper sample of
respondents being selected. Different sampling designs
are available to researchers.
 The researcher must properly manage and oversee
the data collection process.
 If interview method is used, the researcher must train
interviewers and develop procedures for controlling the
quality of the interviewing.
 [This is not necessary if survey methodology is used,
where the research instruments are completed by the
respondents. ]

19. Step 9:Analyze and interpret the results.
Step 10: Communicate the findings and implications.
 The ‘raw’ research data needs to be edited,
tabulated and analyzed to find the results and to
interpret them.
 the method used may be manual or computer based.
 The analysis plan follows from the research objective of
the study.
 Association and relationships of variables are identified
and discussed in the light of the specific marketing
problem.
 The researcher has to submit a written report and
often make an oral presentation to management or
the client.