This document provides an overview of market research and strategic planning. It discusses how market research is important for understanding customer needs and informing business decisions. Both qualitative and quantitative research methods are described, including questionnaires, interviews, observation, and focus groups. The document then outlines the strategic planning process, which involves analyzing the market environment, setting marketing objectives based on insights, and developing strategies to achieve the objectives. Market research is important for all stages of planning from strategic to operational levels.

1. Principles of Business: Stage 2
Lecture 3: Market Research and Planning

2. Overview
One of the most important elements of marketing is
understanding your customers’ needs and wants.
However, in the complex world we live in it is easier
said than done. In this lecture, we will explore the
world of marketing research and how we can create a
consumer insight. Thereafter, we will look at the
planning process that enables an organisation to take
an insight and turn it into a strategy to be
implemented.
We will start of by evaluating the role of marketing
research and look at the various techniques
researchers have at their disposal. Thereafter, we will
move onto the role of strategic planning. This will
involve looking at the steps organisations take to
develop and execute a plan.
2

3. Learning Outcomes
3
• Determine the importance of carrying out market
research.
• Describe the main qualitative and quantitative
research methods.
• Determine the marketing planning process based
on market and customer insight.

4. Market Research
Money won’t buy you
happiness but it will pay
the salaries of a large
research staff to study the
problem.
If you steal from one author
it’s plagiarism; if you steal
from many it’s research.

5. Overview of Market Research
Marketers make many
decisions in their role
within a business, and
to do so effectively,
they need to have the
most current and
accurate data possible.
They analyze
demographic data and
use the information to
create detailed reports.
In turn, they use these
reports to identify
which products and
services to focus on,
what advertising steps
to take, and what
decisions should be
made—or completely
rejected.

6. The Importance of Market Research:
5 Reasons
Market
research
centers your
business on
your
consumers.
It keeps the
business
focused on
what will
make it
successful.
It allows the
business to
pursue the
most
lucrative
growth
strategy.
It keeps you
relevant and
future
focused.
Improves
decision-making
capabilities
and reduces
risk.

7. What is Market Research?
Marketing research is defined as the
systematic design, collection, analysis and
reporting of data and findings relevant to a
specific marketing situation facing the
company.
Validates a
hypothesis.
View Video:
Uncovers
insights
about a
situation.
Enables
robust
decision-making;
www.youtube.com/watch?v=cjk0dbB0uMw
no
assumptions

8. Collecting data: What sources would you
use?
Google
Talk to
others
Collect
new
insights
Expert
Opinion
Evaluate
past
data

9. Collecting data: Where can you go?
View video: https://www.youtube.com/watch?v=Urrc95jrQcU&list=PLR7PU0468uL-
7cZ3IGqyiN-onrRcbksVf

10. Market Research System and Process
Specialty-line
marketing research firms
Syndicated-service
research firms
Custom marketing
research firms
Source: Bovee, et al 2013

11. Define the problem
• Define the problem
• Specify decision alternatives
• State research objectives
For example
In the highly competitive
mobile communications
industry, marketing research
is focusing on which new
services customers might be
willing to pay extra for, such
as television viewing and
music downloading.
Source: Kotler, et al 2013

12. 12
Develop the research plan
Data
sources
Contact
methods
Research
instruments
Research
approach
Sampling
plan
Source: Kotler, et al 2013

13. Primary and Secondary Research
Primary research consists
of a collection of original
primary data collected by the
researcher. It is often
undertaken after the
researcher has gained some
insight into the issue by
reviewing secondary research
or by analyzing previously
collected primary data. It can
be accomplished through
various methods, including
questionnaires and telephone
interviews in market
research, or experiments and
direct observations in the
physical sciences, amongst
others.
Secondary research (also
known as desk research) involves
the summary, collation and/or
synthesis of existing research
rather than primary research,
where data is collected from, for
example, research subjects or
experiments.[1]
Sometimes secondary research is
required in the preliminary
stages of research to determine
what is known already and what
new data is required, or to
inform research design. At other
times, it may be the only
research technique used.

14. Primary and Secondary Research
Source: Kotler, et al 2013

15. Traditional Approach
The traditional marketing research approach
means that desk research comes first,
providing information for the qualitative
research, which in turn feeds into the
quantitative work.
View video: www.youtube.com/watch?v=GQfvocbRV3E

16. Research Methods
Questionnaires
Qualitative
Techniques
Technological

17. Consider open vs closed questions
Closed Questions Open Questions
Respondents’ answers are
limited to a fixed set of
responses. Most scales are
closed ended. Other types of
closed ended questions include:
Yes/no questions - The
respondent answers with a
"yes" or a "no".
Multiple choice - The
respondent has several option
from which to choose.
Scaled questions - Responses
are graded on a continuum
(example : rate the appearance
of the product on a scale from 1
to 10, with 10 being the most
preferred appearance).
No options or predefined
categories are suggested. The
respondent supplies their own
answer without being
constrained by a fixed set of
possible responses. Examples of
types of open ended questions
include:
Completely unstructured - For
example, "What is your opinion
on questionnaires?"
Word association - Words are
presented and the respondent
mentions the first word that
comes to mind.

18. Do’s and Do not’s of Questionnaires
• Ensure questions are free
of bias
• Make questions simple
• Make questions specific
• Avoid jargon
• Avoid sophisticated words
• Avoid ambiguous words
• Avoid negatives
• Avoid hypotheticals
• Avoid words that could be
misheard
• Use response bands
• Use mutually exclusive
categories
• Allow for ‘other’ in fixed
response questions
Source: Kotler, et al 2013

19. 19
Qualitative Research Approaches
Observation
Ethnographic
Focus group
Interviews
Ethnographic Approach
Source: Kotler, et al 2013

20. Deep Dive into Ethnography
View video: https://www.youtube.com/watch?v=9tHgNXzS2EY

21. Technology Based Techniques
Galvanometers
Tachistoscope
Eye cameras
Audiometers
GPS
Source: Kotler, et al 2013

22. Lets move into strategic planning

23. Planning at 3 levels
Strategic
planning meshes
the company’s
capabilities and
resources to what is
happening in the
marketplace. This
planning helps the
company decide—
over the long
term—how it wants
to act, where it
wants to be, and
what it wants to do.
Without strategic
planning, a
company would be
directionless and
ineffective.
Operational
planning
focuses on deciding
how the company
will implement the
functional plans. For
example, what are
the specifications of
the three products
that will be
developed to
support the
functional and
strategic
objectives?
Functional planning
Each functional area
in a company
develops its
functional plans, not
just the marketing
department. For
example, if one of the
strategic plans is to
grow revenue by 5%
in five years, then a
functional plan
supporting that goal
might be to develop
three new products to
increase revenue.
Consider how you would use market research in each of these areas

24. What does it involve?

25. Planning in 3 Steps
Analyse the
market &
environment
Set the
marketing
objectives
Develop
marketing
strategies

26. Analyse the market and environment
Source: Kotler, et al 2013

27. Setting Marketing Objectives
After performing the SWOT analysis, the next step is to use
that information to help set the marketing objectives.
Analyzing the implications of the SWOT analysis is what
drives the objectives and strategies. After the marketing
managers have a good understanding of the internal and
external environment, they will begin to develop marketing
objectives and strategies.
Possible objectives:
• Growing market
share
• Growing revenues or
sales
• Increasing brand
awareness
• Developing a
certain number of
new products
• Increasing
referral rates
• Increasing levels
of customer
satisfaction
Source: Kotler, et al 2013

28. Objective Coordination & Budgets
Strategic objective
coordination
Keep in mind that possible
objectives must be
coordinated with the overall
strategic objectives but should
be specific to the marketing
department.
For example, if the strategic
objective of the company is to
increase profitability by 15%
in the next three years, then
the marketing department’s
objective might be to reduce
sales and marketing costs by
5% as a way to help
contribute to meeting that
goal.
Marketing budget
As part of this process a
marketing budget is also
developed, that details revenues,
including how many units are
forecast to be sold at what price,
market shares, distribution, and
promotions costs.
Source: Kotler, et al 2013

29. Developing Marketing Strategies

30. Essential work for next week
• Please consult the OLE for details of:
– Essential readings*
– Seminar/workshop preparation work*
– Recommended further readings
– Any additional learning
* Essential readings and preparation work must always be completed in time
for the next session.
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31. Appendix – Sources for illustrations
Slide 4:
www.wikipedia.org
Slide 5:
www.marketingprofs.com
Slide 8:
www.artslide.com
Slide 16:
www.emeraldinsight.com

32. End of presentation
© Pearson College 2013