This document provides an overview of marketing research. It discusses the purpose of marketing research, the stages of the marketing research process, types of research designs and data collection methods. It also covers topics like survey design, sampling, data analysis, changing technologies, international considerations, evaluating research, and ethical issues. The key aspects of marketing research presented are problem definition, research design, data collection and analysis, and using findings to help answer marketing questions and make better decisions.

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1-2 .
Chapter 5
Marketing Research

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After studying this chapter, you should be able to:
• Understand the purpose and functions of
marketing research.
• Be familiar with the stages of the marketing
research process.
• Discuss different types of research designs,
data collection methods, and sources of
secondary and primary marketing research
data.

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• Understand many of the major issues involved with survey design and
sampling.
• Appreciate the role of marketing research within decision support
systems.
After studying this chapter, you should be able to:

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What is Marketing Research?
• Marketing Research:
• Identifies and defines marketing
opportunities.
• Generates, refines, and evaluates
marketing actions.
• Monitors marketing performance.
• Improves understanding of marketing as
a process.

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• Marketing Research:
• Specifies the information required to address these issues
.
• Designs the methods for collecting information.
• Manages and implements the data collection process.
• Analyzes the results.
• Communicates the findings and implications.

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Questions Marketing Research Can Help Answer
1. Planning
2. Problem Solving
 Produce
 Price
 Place
 Promotion
3. Control

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Marketing Research in the New Millennium
• Environmental Phenomena will affect the marketing
research industry in the next decade and beyond.
• The traditional time line of 4 to 6 weeks for the
typical research project will not be acceptable.
• Marketing research is becoming a part of the
marketing strategy development process.

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Marketing Research in the New Millennium
• Interactivity, e-commerce, and the Internet are
affecting the practice of marketing research.
• How will data be managed?
• Consolidation among companies has resulted in
market dominance by the top 25 firms.

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The Marketing Research Process

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Problem Definition
• Problem Definition:
• The first step in any marketing research project and
is critical to its success.
• All parties involved must:
• Focus on the real research problem, not the
symptoms.
• Anticipate how the information will be used.
• Avoid prescribing a specific study until the problem
is fully understood and defined.

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Research Designs
• Exploratory Research:
• Typically carried out to satisfy the researcher’s desire for better
understanding, or to develop preliminary background and suggest issues for
a more detailed follow-up study.
• Descriptive Research:
• Normally directed by one or more formal research questions or hypotheses.
• Cross-sectional study
• Longitudinal research
• Casual Research:
• Experiments in which researchers manipulate independent variables and
then observe or measure the dependent variable or variables of interest.

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Data Types
Primary Data Secondary Date
SURVEYS INTERNAL DATA
- Mail - Company records
- Telephone - Data from MDSS
INTERVIEWS EXTERNAL DATA
- Mall intercepts Proprietary
- Personal interviews - Custom Research
- Syndicated services
FOCUS GROUPS Nonproprietary
- Personal - Published reports
- Mechanical - Census data
- Periodicals

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Data Collection Methods
• Focus groups
• Telephone surveys
• Mail surveys
• Personal interviews
• Mall intercepts
• Internet surveys
• Projective techniques and
observations

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Data Collection Instruments
• The collection of marketing research
information involves construction of a
data collection instrument called survey
or questionnaire.

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Types of Survey Research Questions
• Scaled
• Likert agree-disagree
A Likert scale is a unidimensional scale that researchers use to collect
respondents' attitudes and opinions. Researchers often use this
psychometric scale to understand the views and perspectives towards
a brand, product, or target market.
• Semantic differential-Semantic differential (SD) is a type of a rating scale
designed to measure the connotative meaning of objects, events, and
concepts. The connotations are used to derive the attitude towards the given
object, event or concept
• Multichotomous (multiple choice)
• Categorical
• Open-ended

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Five Errors in Question Design
1. Double-barreled wording
2. Loaded wording
3. Ambiguous wording
4. Inappropriate vocabulary
5. Missing alternatives

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Sample Design

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Sampling
• Probability Sampling
• Simple random sampling
• Stratified sampling
• Cluster sampling
• Nonprobability Sampling

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Sampling
• Sampling Frame
• Sample Size
• Response Rate
• A recent study by the Council for Marketing and Opinion
Research (CMOR) estimated that 45 percent of consumers
refused to participate in a survey in 2001.

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Fieldwork
• Fieldwork is the process of:
• Contacting respondents
• Conducting interviews
• Completing surveys

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Analysis and Interpretation
• Techniques for analyzing marketing
research data:
• Straightforward frequency distributions
• Means
• Percentages
• Complex multivariate statistical tests

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Changing Technology
Positive Factors:
• The availability of computer-assisted telephone (CAT) interviewing has
enhanced sampling, data entry, and data processing.
• Videoconferencing enables clients to monitor focus groups and provide
the opportunity to involve more participants in observation.
• Videoconferencing result in savings because clients do not have to
travel to locations to view focus group sessions.
• E-mail offers the potential for increasing survey efficiency.

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Changing Technology
Negative Factors:
• Answering machines and voice-mail responses inhibit both consumer
and business-to-business telephone research.
• Call waiting hampers the conduct of telephone surveys.

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International Considerations
1. Selecting a domestic research
company to do international
research.
2. Rigidly standardizing methods
across countries.
3. Interviewing in English around the
world.
4. Implementing inappropriate
sampling techniques.

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International Considerations
5. Failing to communicate
effectively with local research companies.
6. Lack of consideration given to language.
7. Misinterpreting data across countries.
8. Failing to understand preferences of foreign
researchers regarding the effective
conduct of qualitative research.

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Evaluating Marketing Research

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Ethical Issues in Marketing Research
Excessive interviewing
Lack of consideration
Abuse of respondents
Delivering sales pitches
under the guise of
marketing research

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Ethical Issues in Marketing Research
Incomplete reporting
of results
Misleading reporting
of results
Nonobjective research
Use of data and the
confidentiality of information
collected

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Marketing Decision Support Systems (MDSS)

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MDSS Are Designed to:
Support not supplant management
decision marketing.
Apply to semistructured decisions of middle
and upper management (pricing,
promotion, and location decisions).

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MDSS Are Designed To:
• Provide interaction
between and among
people and systems.
• Center on a segment of
related decisions (the
allocation of marketing
effort and resources).
• Be user-friendly.

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Database Marketing
• Database Marketing:
• The collection and use of
individual customer-specific
information to make marketing
more efficient.
• Database refers to
customer/prospect information
stored in a computer with
software to process the
information.

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Database Marketing
• Customer Relationship Management (CRM):
• Relationship management from a transaction orientation has been one of
the significant developments in the practice of marketing.
One important aspect of data-based marketing
is the ability to evaluate ROI of
marketing expenditures.

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Ethical Issues in Data Base Marketing
1. Marketers must continue to
work at self-regulation
regarding privacy protection.
2. Firms that build their databases
from within, as opposed to
buying lists from other sources,
are able to maintain the privacy
of their customers.

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Ethical Issues in Data Base Marketing
3. Customer permission and
notification should be
regularly sought.
4. Customers generally want
firms to reduce the volume of
catalog and advertising mail
while simultaneously
increasing the relevance of
that information.