This document discusses market research and its benefits. It defines market research as the systematic process of gathering and analyzing information about markets, customers, and competitors. The key stages of the research process are outlined, including problem formulation, method selection, research design, data collection, analysis and reporting. Both the pros and cons of market research are presented. Finally, the benefits of market research for management decision making are described, such as discovering customer wants, competitive positioning, and improving marketing effectiveness.

1. Market Research End-to-End benefits

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Introduction ----------------------------------------------------
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What is market Research ---------------------------------
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When to consider Market Research -------------------
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Research Process -------------------------------------------
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Market Research Pros & Cons --------------------------
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Market Research & Marketing Research -------------
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Market Research Is An Essential Management
Tool ------13
Market Research - Benefits ------------------------------
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3. Introduction
“The process of gathering, analyzing and interpreting information about a market, about a product
or service to be offered for sale in that market, and about the past, present and potential customers
for the product or service; research into the characteristics, spending habits, location and needs of
your business's target market, the industry as a whole, and the particular competitors you face”
Market research assists in the overall management of the marketing function. A marketing manager must
prioritize the more important and pressing problems selected for solution, reach the best possible solution based
on the information available, implement the solution, modify the solution when additional information so dictates,
and establish policy to act as a ready-made solution for any recurrence of the problem.
Market research often focuses on understanding the “Customer” (purchasers, consumers, influencers), the
Company” (product design, promotion, pricing, placement, service, sales), and can also be expanded toward the
environment to include “Competitors” (and how their market offerings interact in the market environment).
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4. What is Market Research
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Systematic – Organized with Clear
Method
Gathering – Collecting Appropriate
Data
Recording – Clear & Organized
records of Findings
Analysis – Ordering & making Sense
of Information
Marketing Problems – Understanding
Customers & the market

5. When to Consider Market
Research
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Discovery
A new idea or
An Event or
change occurs
which provokes
Evoke Provoke
Insights
Opportunity
Proactive
•New Products
•New Markets
•Customer Satisfaction
•Mature Product Life Cycle
•New Marketing Strategies
•Competitive Intelligence
Trends
Problems
Challenges
Reactive
•Decrease Revenues
•Customer Dissatisfaction
•New Technology
•Legislative Change
•Economic Change
•Mergers/Acquisitions
product
evokes action
action
Research – More than nice to know.
Evidence
Are observations supported by data?
Patterns/associations/ behavior?
Hypothesis
Are we ready to go where the
evidence/ data points?
What is the plan of action?
$ Is Benefit > Cost?

6. Problem
Formulation
Cost-Value
Analysis
Method of
Inquiry
Planning &
Survey
Design
Data
Collection
Design
Research
Design
Data
Collection
Analyzing/
Interpreting
Data
Research
Report
Research Process
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7. Research Process
Continues..
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STAGE 1: PROBLEM FORMULATION
In a very real sense, problem formulation is the heart of the research process. As such, it represents
the single most important step to be performed. From the researcher’s point of view, problem formulation means
translating the management problem into a research problem.
How to Formulate the Research Problem?
Problem formulation is much easier when specific components of the research problem
are defined:
• Specify the Research Objectives
• The Environment or Context of the Problem
• The Nature of the Problem
• Alternative Courses of Action
• The Consequences of Alternative Courses of Action
• Degrees of Uncertainty
STAGE 2: METHOD OF INQUIRY
Market researchers look to the scientific method as the source of their investigative methods. Even
though this method is not the only one used, it is the standard against which other investigative methods are
measured. The scientific method makes great use of existing knowledge both as a starting point for investigation
and as a check on the results of the investigations (i.e., a test of validity). Its most distinctive characteristic is its
total lack of subjectivity. The scientific method has evolved objective and rigid procedures for verifying hypotheses
or evaluating evidence.

8. The goal of a scientific methodologist, also called an
objectivist, is to run a hypothesis test using publicly stated procedures that are investigator-independent.
• Formulate a problem
• Develop a hypothesis
• Make predictions based on the hypothesis
• Devise a test of the hypothesis
• Conduct the test
• Analyze the results
STAGE 3: RESEARCH METHOD
Whether a particular method of inquiry is appropriate for a research problem depends in large part
on the nature of the problem itself and the extent or level of existing knowledge. In addition to selecting a method of
inquiry, the research planner must also select a research method.
STAGE 4: RESEARCH DESIGN
Research design is defined as the specific methods and procedures for acquiring the information
needed. It is a plan or organizational framework for doing the study and collecting the data. Research designs are
unique to a methodology.
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Research Process
Continues..

9. STAGE 5: DATA COLLECTION TECHNIQUES
Research design begins to take on detailed focus as the researcher selects the particular techniques
to be used in solving the problem formulated and in carrying out the method selected. A number of techniques
available for collecting data can be used. Some techniques are unique to a method of inquiry. For example, many of
the qualitative research techniques, such as projective techniques, are used only in subjectivist-type research. In
general, data collection uses either communication or observation.
Communication involves asking questions and receiving responses. This process can be done in
person, by mail, by telephone, by e-mail, and over the Internet. In most instances this constitutes the broad research
technique known as the survey. In contrast to this process, data may be obtained by observing present or past
behavior. Regarding past behavior, data collection techniques include looking at secondary data such as company
records, reviewing studies published by external sources, and examining physical traces such as erosion and
accretion.
STAGE 6: SAMPLE DESIGN
Rarely will a marketing research project involve examining the entire population that is relevant to the
problem. For the most part, practical considerations (e.g., absolute resources available, cost vs. value, etc.) dictate
that one use a sample, or subset of the relevant population. In other instances the use of a sample is derived from
consideration of the relevant systematic and variable errors that might arise in a project.
In designing the sample, the researcher must specify three things:
• Where the sample is to be selected
• The process of selection
• The size of the sample
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Research Process
Continues..

10. STAGE 7: DATA COLLECTION
Data collection, whether by communication or observation, requires the use of data collection
personnel which then raises questions regarding managing these people. Because data collection can be costly,
firms often utilize outside limited-service research suppliers, particularly when the extent of in-house research
activity does not warrant the cost of having permanent data collection personnel.
The major suggestion for improving communication is for clients to provide more information to both
suppliers and field service firms. Another way to overcome communication barriers is for the field service to be
consulted on such major issues as scheduling, costs, and purpose of the study.
STAGE 8: ANALYSIS AND INTERPRETATION
Data that are obtained and presented in the same form as originally collected are seldom useful to
anyone. Data must be analyzed. The data must be edited, coded, and tabulated before performing formal analyses
such as statistical tests. The types of analyses that can be properly performed depend upon the sampling
procedures, measurement instruments, and data collection techniques used. Consequently, it is imperative that the
techniques of analysis, associated descriptive or prescriptive recommendation types, and presentation formats be
selected prior to data collection.
STAGE 9: THE RESEARCH REPORT
The culmination of the research process is the research report. It includes a clear, accurate, and
honest description of everything that has been done and the results, conclusions, and— whenever possible—
recommendations for courses of action. Two critical attributes of the report are that it provides all the information
readers need using language they understand (completeness) and that it contains selective information chosen by
the researcher (conciseness). These attributes are often in conflict with each other.
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Research Process Continues..

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Market Research – Pros &
Cons
Pros:
Helps in strengthening businesses and their market position
Minimizes investment
Identifies potential threats & opportunities
Helps businesses discover their competitors
Facilitates strategic planning
Helps in spotting emerging trends
Assists businesses stay ahead of competition
Provides revenue projections
Focuses on customer needs and demands
Identifies market trends and provides industry analysis
Helps evaluate the success of a business against benchmarks
Identifies challenges to market growth
Quantifies market size and growth rate
Cons:
Market research is a costly affair
Lengthy & time consuming process
Has limited scope
Limited practical value
Can’t predict consumer behavior
No accurate results
Provides suggestions not solutions
Fragmented approach
Can be misused

12. Market Research & Marketing
Research
How Market Research & Marketing Research are different? Although these two terms are often used
interchangeably, they have some differentiating qualities.
The core difference between Market Research and Marketing Research is the scope of the concept.
First, Market Research is a more narrow concept because it is research focused on a specific market.
Marketing Research, however, scales on a much broader level.
It encompasses areas such as:
• Research into new products
• Modes of distribution
• Product development
It can also include promotion research, pricing, advertising and public relations.
Both concepts are integral parts of marketing, which is essentially everything that happens before the sale of a
product or service. Because Market Research is a subset of Marketing Research, it is easy to see why the two
terms are often confused. They are both related to each other in great extent and are widely practiced.
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13. Market Research Is An Essential
Management Tool
Market research consists of a plan that charts how relevant data is to be collected and analyzed so
that the results are useful and relevant for making marketing decisions. Once the research and the related
analysis are complete, the results are communicated to management. This provides management with in-depth
information regarding crucial factors that have an impact on the target market and existing marketing mix. Market
research allows management to make the changes necessary for better results through adopting a proactive
approach.
Market research is imperative for a company to know what type of products or services would be
profitable to introduce in the market. Also with respect to its existing products in the market, good market
research enables a company to know if it has been able to satisfy customer needs and whether any changes
need to be made in the packaging, delivery or the product itself. This enables a company to formulate a viable
marketing plan or measure the success of its existing plan.
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14. Market Research -
Benefits
• Discovers what your customers want and value
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• Discovers loyalty drivers
• Discovers competitive position
• Basis for marketing plans
• Gathers evidence in support of actions
• Keeps marketing plans on track
• Gathers evidence in support of actions
• Keeps marketing plans on track
• Applies universal findings to sample markets and segments
• Enables you to benchmark
• Strengths, Weakness, Opportunities, Threats--- relative to competition
• Avoids cost of bad marketing campaign
• Saves costs by targeting right message to right audience
• Improves effectiveness of marketing campaigns
• Is a learning and educational tool

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