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Marketing Research:
From Data to Information to Action
Chapter 1
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

MR/Brown & Suter

Marketers Need Information

Data Information Action

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Marketers Need Information
} Marketers need information about the environments in
which they operate

} It is easy to confuse data with information

} Data – the raw facts, recorded measures of certain phenomena
} Information – transformed and organized facts in a form
suitable for managers to base decisions

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Marketing Research Defined
} The organization’s formal communication link with the
environment

} Through marketing research, the organization gathers and

interprets data from the environment for use in
developing, implementing, and monitoring the firm’s
marketing plans

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Who Does Marketing Research?
} Producers of Products and Services

} Advertising Agencies

} Marketing Research Companies

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Who Does Marketing Research?
} Producers of Products and Services
} Organizations that produce products or deliver services for
businesses or consumers often conduct research designed to
develop and market their products and services
} Examples include

Kraft Foods NPR Unilever

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Who Does Marketing Research?
} Advertising Agencies
} Often conduct research designed to help
} Create and measure the effectiveness of advertising campaigns
} Determine the market potential of a proposed new product or the
client’s market share
} Better understand consumers, their interests and behaviors

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Why Study Marketing Research?
} Marketing research can be rewarding and fun

} All of us are consumers of marketing and public opinion

research

} Managers need to know the research process, including

what to expect marketing research to be able to deliver

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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 Why Study Marketing Research?
} Stages in the Research Process
Formulate
Problem

Determine Data Determine Identify

Collection Method Research Design Data Source

Secondary Data
Design Data
Primary Data

Aggregate Data
Collection Forms

Design
Sample

Collect Analyze and Interpret

Data Data

Prepare the Research

Report
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Marketing Research Ethics
} Principles, values, and standards of conduct followed by
marketing researchers

} The goal of any marketing research project should be to

uncover the truth
} Advocacy research is conducted to support a position rather
than to find the truth
} Sugging is contacting people under the guise of marketing
research when the real goal is to sell products or services

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Problems versus Opportunities

Problem Opportunity
A process of trying to A process of trying to
identify specific areas identify specific areas
where additional where additional
information is needed information is needed
about the marketing about the marketing
environment environment

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Problems versus Opportunities

Problem Opportunity

Today’s opportunity is tomorrow’s problem

if a company fails to take advantage of the
opportunity … but its competitors do
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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The Problem Formulation Process
Step 1: Meet with Client
Step 2: Clarify the Problem/Opportunity
Step 3: State the Manager’s Decision Problem
Step 4: Develop Possible Research Problems
Step 5: Select Research Problem(s) to Be Addressed
Step 6: Prepare Research Request Agreement

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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The Problem Formulation Process
} Meet with Client to obtain
} Management statement of problem/opportunity
} Background information
} Management objectives for research
} Possible managerial actions to result from research

} Planned versus Unplanned Change

} Planned Change – Increase revenues, introduce new products
} Unplanned Change – React to customer suggestions, discover
new uses for old products through customer feedback

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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The Problem Formulation Process
Step 1: Meet with Client
Step 2: Clarify the Problem/Opportunity
Step 3: State the Manager’s Decision Problem
Step 4: Develop Possible Research Problems
Step 5: Select Research Problem(s) to Be Addressed
Step 6: Prepare Research Request Agreement

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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The Problem Formulation Process
} One of the most important things a researcher can do for
a manager is to provide a different perspective on the
problem

} This is the chance for the researcher to fully analyze the

“heart of the problem” with the client’s help

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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The Problem Formulation Process
Step 1: Meet with Client
Step 2: Clarify the Problem/Opportunity
Step 3: State the Manager’s Decision Problem
Step 4: Develop Possible Research Problems
Step 5: Select Research Problem(s) to Be Addressed
Step 6: Prepare Research Request Agreement

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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The Problem Formulation Process
} Discover-oriented versus Strategy-oriented Decision
Problems
} Discovery-oriented decision problems are common with
unplanned changes in the marketing environment
} What is going on? Why is it going on?
} Strategy-oriented decision problems are common with planned
changes in the marketing environment
} How can we make this happen? Will it have the desired impact?

Researchers should conduct strategy-oriented research if possible.

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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The Problem Formulation Process
Step 1: Meet with Client
Step 2: Clarify the Problem/Opportunity
Step 3: State the Manager’s Decision Problem
Step 4: Develop Possible Research Problems
Step 5: Select Research Problem(s) to Be Addressed
Step 6: Prepare Research Request Agreement

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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The Problem Formulation Process
} Decision Problems describe the manager’s view of the
situation
} Research Problems restate decision problems in research
terms

Decision Problem Research Problems

•Why are store revenues so •Investigate current customer
low? satisfaction
•Assess target market
perceptions of store and
competitors

Example of Discovery-oriented Decision and Research Problems

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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The Problem Formulation Process
} Decision Problems describe the manager’s view of the
situation
} Research Problems restate decision problems in research
terms

Decision Problem Research Problems

•How do we increase store •Investigate effectiveness of
traffic? different sales promotions
•Determine consumer
response to two proposed ad
campaigns

Example of Strategy-oriented Decision and Research Problems

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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The Problem Formulation Process
Step 1: Meet with Client
Step 2: Clarify the Problem/Opportunity
Step 3: State the Manager’s Decision Problem
Step 4: Develop Possible Research Problems
Step 5: Select Research Problem(s) to Be Addressed
Step 6: Prepare Research Request Agreement

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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The Problem Formulation Process
Decision Problem Research Problems
•Why are store revenues so •Investigate current customer
low? satisfaction
•Assess target market
perceptions of store and
competitors

Decision Problem Research Problems

•How do we increase store •Investigate effectiveness of
traffic? different sales promotions
•Determine consumer
response to two proposed ad
campaigns

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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The Problem Formulation Process
Step 1: Meet with Client
Step 2: Clarify the Problem/Opportunity
Step 3: State the Manager’s Decision Problem
Step 4: Develop Possible Research Problems
Step 5: Select Research Problem(s) to Be Addressed
Step 6: Prepare Research Request Agreement

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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The Problem Formulation Process
} The research request agreement should be executed
between the research and the client and should include
1. Background – the events that led to the manager’s decision
problem
2. Decision Problem – the underlying question confronting the
manager
3. Research Problem(s) – issue(s) used to address the decision
problem
4. Use – supplying logical reasons for each piece of research
5. Population/Subgroups – groups from whom information must
be gathered
6. Logistics – estimates of resource requirements
© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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