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Introduction to Marketing Research

1
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Introduction
 Marketing research comprises one of the most
important and fascinating facets of marketing.
 The American Marketing Association defines marketing
precisely:
 Marketing is the process of planning and executing the
conception, pricing, promotion and distribution of goods
and services to create exchanges that satisfy individual
and organization objectives.
 In this chapter we give a formal definition of marketing
research and classifying marketing research into two
areas: Problem identification and Problem solving
research.
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Marketing Research

The American Marketing Association (AMA)

redefined Marketing Research as:
The function which links the consumer, the customer, and public to
the marketer through INFORMATION.

Def.: The systematic and objective identification, collection,

analysis, dissemination, and use of information for the
purpose of assisting management in decision making related
to the identification and solution of problems in marketing.
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Redefining Marketing Research

Used to identify and
define market
opportunities and
problems
Generate, refine, and
evaluate marketing
performance
Monitor marketing
performance

Improve understanding
of marketing as a
process
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Marketing Research..
Marketing research is the systematic and objective
 identification
 collection
 analysis
 dissemination
 and use of information
for the purpose of improving decision making related to the
 identification and
 solution of problems and opportunities in marketing.
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Marketing Research….

 Specifies the information necessary to address these

issues

 Manages and implements the data collection process

 Analyzes the results

 Communicates the findings and their implications

 Helps managers use this information to make

decisions
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Classification of Marketing Research

Problem Identification Research

 Research undertaken to help identify problems which are
not necessarily apparent on the surface and yet exist or
are likely to arise in the future.
 Examples: market potential, market share, image, market
characteristics, sales analysis, forecasting, and trends
research.
Problem Solving Research
 Research undertaken to help solve specific marketing
problems.
 Examples: segmentation, product, pricing, promotion, and
distribution research.
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A Classification of Marketing Research

Marketing Research

Problem Problem Solving

Identification Research Research

Eg:Market Potential Research Eg:Segmentation Research

Market Share Research Product Research
Market Characteristics Research Promotion Research
Sales Analysis Research
Forecasting Research Distribution Research
Business Trends Research
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Problem Solving Research

SEGMENTATION RESEARCH

 Determine the basis of segmentation

 Establish market potential and
responsiveness for various
PRODUCT RESEARCH
segments
 Select target markets  Test concept
 Create lifestyle profiles:  Determine optimal product
demography, media, and design
product image characteristics  Package tests
 Product modification
 Brand positioning
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Problem Solving Research

PROMOTIONAL RESEARCH
 Optimal promotional budget
 Sales promotion relationship
 Optimal promotional mix
 Media decisions
 Creative advertising testing
 Evaluation of advertising effectiveness

PRICING RESEARCH
 Pricing policies
 Importance of price in brand selection
 Product line pricing
 Price elasticity of demand $ALE
 Initiating and responding to price changes
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Problem Solving Research

DISTRIBUTION RESEARCH

Determine…
 Types of distribution
 Attitudes of channel members
 Intensity of wholesale & resale coverage
 Channel margins
 Location of retail and wholesale outlets
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Marketing Research Process

Step 1 : Problem Definition

Step 2 : Development of an Approach to the Problem

Step 3 : Research Design Formulation

Step 4 : Fieldwork or Data Collection

Step 5 : Data Preparation, Estimation and Analysis

Step 6 : Report Preparation and Presentation

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Marketing Research Process

Step 1: Defining the Problem

Step 2: Developing an Approach to the Problem

Step 3: Formulating a Research Design

Step 4: Doing Field Work or Collecting Data

Step 5: Preparing and Analyzing Data

Step 6: Preparing and Presenting the Report

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The Role of Marketing Research in Marketing Decision making

Customer Groups
• Consumers
• Employees
• Shareholders
• Suppliers

Uncontrollable
Controllable Environmental
Marketing Marketing Factors
Variables Research
•Economy
•Product
•Technology
•Pricing
•Laws &
•Promotion Regulations
•Distribution Assessing Marketing •Social & Cultural
Providing
Information Information Decision Factors
Needs Making •Political Factors

Marketing Managers
• Market Segmentation
• Target Market Selection
• Marketing Programs
• Performance & Control

th
The role of marketing research in 1-15

Marketing system
 Top 15 U.S. Marketing Research Firms 1-16

U.S. Rank Organization Headquarters Website U.S. Global Non-U.S.

2007 2006

1 1 The Nielsen Co. New York nielsen.com $2,173.0 $4,220.0 48.5%

2 2 IMS Health Inc. Norwalk, Conn. imshealth.com 801.0 2,192.6 63.5

3 3 Kantar Group* Fairfield, Conn. kantargroup.com 526.8 1,551.4 66.0

4 5 Westat Inc. Rockville, MD westat.com 467.8 467.8 —

5 4 IRI Chicago infores.com 441.0 702.0 37.2

6 6 TNS U.S. New York tnsglobal.com 379.8 2,137.2 82.2

7 7 Arbitron Inc. New York arbitron.com 338.5 352.1 3.9

8 8 GfK AG USA Nuremberg, Germany gfk.com 319.7 1,603.00 80.1

9 9 Ipsos New York ipsos-na.com 281.2 1,270.30 77.9

10 10 Synovate London synovate.com 250.4 867.0 71.1

11 11 Maritz Research Fenton, Mo. maritzresearch.com 187.4 223.3 16.1

Westlake Village,
12 13 J.D. Power and Associates* Calif. jdpower.com 184.5 260.5 29.2

13 12 Harris Interactive Inc. Rochester, N.Y. harrisinteractive.com 161.0 227.0 29.1

14 14 The NPD Group Inc. Port Washington, N.Y. npd.com 160.4 211.1 24.0
Opinion Research/
15 — Guideline Group Omaha, Neb. infousa.com 124.7 206.7 39.7

15 Opinion Research Corp. Princeton, N.J. opinionresearch.com 97.5 179.5 45.7

.
Source: Naresh K. Malhotra & S Das, “Marketing Research –An Applied Orientation", 6th Edition, Pearson
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Top 10 Marketing Research Companies in India

1IMRB International

2RNB Research

3Market Xcel Data Matrix Pvt Ltd

4Majestic MRSS

5TNS India Pvt Ltd

6Hansa Research

7IDC India

8IPSOS Indica Research

9Millward Brown

10The Nielson
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Selected Marketing Research Career Descriptions

Vice President of Marketing Research: The senior position in marketing

research. The vice president (VP) is responsible for the entire marketing research
operation of the company and serves on the top management team. This person
sets the objectives and goals of the marketing research department.
Research Director: Also a senior position. The research director has the general
responsibility for the development and execution of all the marketing research
projects.
Assistant Director of Research: Serves as an administrative assistant to the
director and supervises some of the other marketing research staff members.
(Senior) Project Manager: Has overall responsibility for design, implementation,
and management of research projects.
Statistician/Data Processing Specialist: Serves as an expert on theory and
application of statistical techniques. Responsibilities include experimental
design, data processing, and analysis.
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Selected Marketing Research Career Descriptions

Research Director
Vice President of Marketing
Research • Also part of senior
• Part of company’s top management management

team • Heads the development

and execution of all
• Directs company’s entire market
research projects
research operation
• Sets the goals & objectives of the
Assistant Director of Research
marketing research department
• Administrative assistant to director
• Supervises research staff members

Senior Project Manager

• Responsible for design, implementation, & research
projects
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Selected Marketing Research Career Descriptions..

Senior Analyst
• Participates in the development of projects
• Carries out execution of assigned projects
• Coordinates the efforts of analyst, junior analyst, & other personnel in the
development of research design and data collection
• Prepares final report

Analyst Statistician/Data Processing

• Handles details in execution of • Serves as expert on theory and
project application on statistical techniques
• Designs & pretests questionnaires • Oversees experimental design, data
• Conducts preliminary analysis of processing, and analysis
data

Junior Analyst Fieldwork Director

• Secondary data analysis • Handles selection, training,
• Edits and codes questionnaires supervision, and evaluation of
• Conducts preliminary analysis of data interviewers and field workers
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Careers in Marketing Research

 Career opportunities are available with marketing research
firms (e.g., AC Nielsen, Burke, Inc., M/A/R/C)

 Careers in business and non-business firms and agencies with

in-house marketing research departments (e.g., Procter &
Gamble, Coca-Cola, AT & T, the Federal Trade Commission,
United States Census Bureau)

 Advertising agencies (e.g., BBDO International, Ogilvy &

Mather, J. Walter Thompson, Young & Rubicam)

 Positions: vice president of marketing research, research

director, assistant director of research, project manager, field
work director, statistician/data processing specialist, senior
analyst, analyst, junior analyst, and operational supervisor.
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Source: Naresh K. Malhotra & S Das, “Marketing Research –An Applied Orientation", 6th Edition, Pearson
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References
 Naresh K. Malhotra & S Das, “Marketing Research –
An Applied Orientation", 6th Edition, Pearson.