Principles of Marketing. It tackles market research, its importance and purpose. And also the process or steps in conducting marketing research. The kinds of data sampling and size etc.

2. Define Marketing Research, Its
importance to a Business
Enterprise and Identify the
Steps in Marketing Research

3. Marketing research is the function
responsible for acquiring and evaluating
market and consumer-based information for
decision making and the determination of
marketing strategic direction. It is primarily
responsible for the gathering, analysis, and
timely distribution of information for the
use of marketing decision makers.

4. Market research is the process of determining the
viability of a new service or product through research
conducted directly with potential customers. Market
research allows a company to discover the target
market and get opinions and other feedback from
consumers about their interest in the product or
service.

5. The Purpose and Importance
of Marketing Research

6. Companies have complete information about
their products from production to distribution.
However, it is a challenge for the companies to
know what happens to the product after it was
purchased.

7. Who uses the product, how it is used, how much
or how little of it used, and the general attitudes
of the consumer toward the product are not
known explicitly. Thus, for new products or new
markets, the company may not be completely
certain whether the product will be accepted by
the market. The value of the product to the
consumer is difficult to measure because
perceptions of the value are subjective.

8. The following are some of the issues that
can be addressed by marketing research:
•Identify viable new products and services
•Enable risk reduction
•Identify market opportunities and threats
•Determine the level of customer satisfaction

9. The following are some of the issues that
can be addressed by marketing research:
•Pinpoint and anticipate market trends or
changes
•Decide on the best advertising medium
•Pre-test and post-test advertising and
promotional campaigns

10. The following are some of the issues that
can be addressed by marketing research:
•Evaluate the results of test marketing
•Evaluate the results of packaging, brand name,
and label testing

11. The following are some of the issues that
can be addressed by marketing research:
•Determine consumer price awareness and
sensitivity
•Undertake location studies

12. Steps in the Marketing Research
Process

13. Marketing research can and should be used for
various reasons. Marketing research can be used
to identify marketing opportunities and
problems,generate and evaluate potential
marketing actions or plans, monitor marketing
performance and improve marketing as a
process.

14. 1. Establishing the need for marketing
research
This could seem basic but is in fact fundamental to conducting
marketing research. Research takes time and money.
Marketing research is not needed when information is readily
available (this could be through secondary data), when there
is not enough time to conduct a proper research study and
answers are needed immediately, when you can afford the
research or when the costs outweigh the value.It could also
simply be that the answer is obvious.

15. 2. Defining the problem/opportunity
According to the authors, this is by far the most
important step. If the problem is incorrectly
defined, all is wasted effort. Marketing research
should only be conducted to answer a problem.
There are also needs to be alternatives. If there
are no alternatives, no decision is necessary.

16. 3. Establishing research objectives
Objectives tell a researcher exactly what he or she
should be looking for and what he or she must do
to obtain the information necessary to allow the
manager to choose between the decision and the
alternatives.

17. 4. Determining research design
•Observational
•Experimantal
•Qualitative
•Quantitative

18. 5. Identifying information types and sources
Primary: information collected specifically for the
problem at hand
Secondary: information already collected

19. 6. Determining methods of accessing data
• Person administered Survey
• Computer-administered Survey
• Self-administered Survey
• Hybrid Survey

20. 7. Designing data collection forms
Designing the form in which data will be collected. It
can be a questionnaire or an observation form.
Major parts of a typical survey questionnaire:
• Introduction
• Screening
• Core
• Classification

21. 8. Determining sample plan and size
Sample plan: describes how each sample element is to
be drawn from the total population
Sample size: how many elements of the population
should be used to make up the sample

22. Nonprobability sampling does not involve
probabilities. All the members of the survey population
do not have equal chance of being selected to be part
of the sample. These are the types of nonprobability
sampling:
• Convenience sampling – When th researcher
arbitrarily selects relatives, friends and/or classmates,
etc. To be given survey questionnaires.

23. These are the types of nonprobability sampling:
• Judgement sampling – the researcher gives survey
questionnaires to individuals who in his/her
judgement are qualified to participate in the survey
• Referral sampling – the researcher asks initial
respondents to provide other qualified respondents
for the survey.
• Quota sampling – when the researcher specifies the
proportions of various classifications to be included in
the survey.

24. Probability sampling methods utilizes the principle of
randomness.randomness is when every member of the
survey population has an equal non-zero chance of
being selected as part of the sample. Some types of
probability sampling methods are:
• Simple random sampling – when the researcher
selects survey respondents so that each member of
the populkation has an identical chance of being
chosen to be included in the sample.

25. 9. Collecting data
Non-sampling errors in data are likely to occur and
researchers need to know the sources of these errors
to implement controls to minimize them.

26. •Systematic sampling – a probability sampling
method where the researcher selects respondents
using a sampling frame (a list of all the mebers of the
survey population).
•Cluster sampling – sampling method where the
survey population is divided into subgroups, each of
which represents the entire survey population.
•Stratified sampling – where the survey population is
divided into subgroups and proportional samples
from all subgroups are included in the sample using
the principle of randomness.

27. 10. Analyzing data
Data analysis involves entering data into computer files,
inspecting data for errors, and running tabulations and
various statistical tests.

28. 11. Preparing and presenting the final report
It is important that it is not overstated as it is the report
that properly communicates the results to the client.

29. Making Marketing Research-
based Decisions

30. Marketing research reports include a lot of information
that can aid organizations in making effective marketing
decisions, rather than resorting to unsupported “gut
feel”decisions.

31. External factors research- The information from these
researches helps marketers identify macro-
environmental shifts. These are bases in pinpointing
opportunities and anticipating threats.

32. Observation research - This is an invaluable aid in
determining consumer behavior. It assists marketers in
determining the retail shelf placement strategy to use.
It also reveals the effectiveness of point-of-purchase
collateral materials.

33. Test marketing- Based on test marketing results, the
company shall gauge the acceptability of a proposed
product/service. The company can, have the
opportunity to re-calibrate elements in the marketing
mix and to measure their effects on consumer demand
and overall satisfaction. Its finding can result in the
discontinuance of a proposed product/service if results
indicate a general lack of interest.

34. Target market studies- These help identify, quantify,
and understand the target market better. Companies
may decide to redefine its target market by including
characteristics the market should possess

35. Concept, product development, and product studies- Using
the results generated by concept, product development, and
product studies, marketing organizations shall select the
proposed product/service concepts that have the highest level
of market acceptance. It can also be used to decide on the
packaging, to determine the market acceptance. It can also be
used to decide on the packaging, to determine the market
reaction, and to justify brand positioning.

36. Pricing tests- Pricing tests can be utilized by marketers
to calculate a product’s or service’s optimal price, to
determine price elasticity, or to determine how price
adjustment can effect total demand for the product or
service.

37. Location studies- Location studies determine ideal
retail store locations and is a valuable tool in site
selection.

38. Advertising pre- and post-testing- These tests can
determine advertising copy effectiveness, advertising
recall, sales promotion response rates, outdoor
advertising traffic results, and the effectiveness of
public relations media placement. A product’s/service’s
advertising theme or message and the mechanics of
consumer sales promotions can be adjusted based on
these results.

39. Usage,attitude, and image studies- These studies can provide
cost- effective ways on how to increase a product’s/ service’s
awareness level and brand trial. In addition, the results can
reveal product usage and allow the company to develop
strategies to increase usage frequency. The effectiveness of
current distribution outlets can be ascertained. This can help
in determining if distribution outlets can be ascertained. This
can help in determining if distribution should be expanded or
alternate distribution outlets should be developed. Finally,
product/service purchase drivers can be quantified to
calibrate its value offer effectively