PRINCIPLES OF MARKETING 5.

Identifying information types and sources

Module 5-Marketing Research  Primary: information collected specifically for the problem at
hand
 Secondary: information already collected
Marketing Research 6. Determining methods of accessing data
Marketing research is a function under a business organization’s This can be done through observing consumers, surveys, online etc.
Marketing Information System (MIS). MIS is primarily responsible for 7. Designing data collection forms
the gathering, analysis, and timely distribution of information for the use Designing the form in which data will be collected. It can be a
of marketing decision makers. questionnaire or an observation form.
Definition 8. Determining sample plan and size
Market research is the process of determining the viability of a new Sample plan: describes how each sample element is to be drawn from the
service or product through research conducted directly with potential total population Sample size: how many elements of the population
customers. Market research allows a company to discover the target should be used to make up the sample
market and get opinions and other feedback from consumers about their 9. Collecting data
interest in the product or service. Non-sampling errors in data are likely to occur and researchers need to
The Purpose and Importance of Marketing Research know the sources of these errors to implement controls to minimize them.
Companies have complete information about their products from 10. Analyzing data
production to distribution. However, it is a challenge for the companies Data analysis involves entering data into computer files, inspecting data
to know what happens to the product after it was purchased. Who uses for errors, and running tabulations and various statistical tests.
the product, how it is used, how much or how little of it used, and the 11. Preparing and presenting the final report
general attitudes of the consumer toward the product are not known It is important that it is not overstated as it is the report that properly
explicitly. Thus, for new products or new markets, the company may not communicates the results to the client.
be completely certain whether the product will be accepted by the Making Marketing Research-based Decisions
market. The value of the product to the consumer is difficult to measure Marketing research reports include a lot of information that can aid
because perceptions of the value are subjective. organizations in making effective marketing decisions, rather than
Although marketing research can be costly, it is indispensable. The resorting to unsupported “gut feel” decisions. Some examples of reports
following are some of the issues that can be addressed by marketing and the marketing decisions they can support are:
research: • External factors research - The information from these researches
helps marketers identify macro-environmental shifts. These are bases in
pinpointing opportunities and
• 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
• Test marketing - Based on test marketing results, the company shall
gauge thereveals the effectiveness of point-of-purchase collateral
materials. 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
• Target market studies - These help identify, quantify, and understand
Steps in the Marketing Research Process the target market better. Companies may decide to redefine its target
Marketing research can and should be used for various reasons. market by including characteristics the market should possess
Marketing research can be used to identify marketing opportunities and
• Concept, product development, and product studies- Using the
problems, generate and evaluate potential marketing actions or plans,
results generated by concept, product development, and product studies,
monitor marketing performance and improve marketing as a process.
marketing organizations shall select the proposed product/service
Here are the 11 steps to conducting marketing research, but note that not
concepts that have the highest level of market acceptance. It can also be
all marketing research follows these steps.
used to decide on the packaging, to determine the market acceptance. It
1. Establishing the need for marketing research
can also be used to decide on the packaging,
This could seem basic but is in fact fundamental to conducting marketing
research. Research takes time and money. Marketing research is not • Pricing tests - Pricing tests can be utilized by marketers to calculate a
needed when information is readily available (this could be through product’s or service’s optimal price, to determine price elasticity, or to
secondary data), when there is not enough time to conduct a proper determine how price adjustment can effect total demand for the product
research study and answers are needed immediately, when you can afford or service.
the What Is It research or when the costs outweigh the value. It could • Location studies – Location studies determine ideal retail store
also simply be that the answer is obvious. locations and is a valuable tool in site selection.
2. Defining the problem
According to the authors, this is by far the most important step. If the • Advertising pre- and post-testing - These tests can determine
problem is incorrectly defined, all is wasted effort. Marketing research advertising copy effectiveness, advertising recall, sales promotion
should only be conducted to answer a problem. There are also needs to response rates, outdoor advertising traffic results, and the effectiveness of
be alternatives. If there are no alternatives, no decision is necessary. public relations media placement. A product’s/service’s advertising
3. Establishing research objectives theme or message and the mechanics of consumer sales promotions can
Objectives tell a researcher exactly what he or she should be looking for be adjusted based on these results.
and what he or she must do to obtain the information necessary to allow • Usage, attitude, and image studies - These studies can provide cost-
the manager to choose between the decision and the alternatives. effective ways on how to increase a product’s/ service’s awareness level
4. Determining research design and brand trial. In addition, the results can reveal product usage and
 Exploratory research: informal search to learn more about the allow the company to develop strategies to increase usage frequency. The
research problem, learn terms and definitions or identify effectiveness of current distribution outlets can be ascertained. This can
opportunities help in determining if distribution outlets can be ascertained. This can
 Descriptive research: most basic; used to describe the help in determining if distribution should be expanded or alternate
marketing phenomena distribution outlets should be developed. Finally, product/service
 Causal research: uncover factors that cause on event purchase drivers can be quantified to calibrate its value offer effectively
(So, R.C and Torres, O.G. 2016, 15-55).
EXPLANATION already available or if the cost of research is
too high.
Marketing Research Simplified 2. Defining the Problem: Clearly define what
you need to find out. If you misunderstand the
What is Marketing Research? Marketing research is problem, the research won't be useful.
part of a business's Marketing Information System 3. Setting Research Objectives: Decide what
(MIS). MIS is responsible for gathering, analyzing, specific information you need to gather.
and sharing information that helps businesses make 4. Choosing the Research Design:
smart marketing decisions. o Exploratory Research: Find out more
about the problem.
Definition of Marketing Research: Marketing o Descriptive Research: Describe the
research is the process of finding out if a new product current market situation.
or service will be successful. This is done by directly o Causal Research: Discover what
asking potential customers for their opinions. It helps a factors cause certain events.
company understand who might buy the product and 5. Identifying Information Sources:
what people think about it. o Primary Data: New information
collected specifically for your research.
Why is Marketing Research Important? Companies o Secondary Data: Information that has
know everything about their products from the already been collected.
moment they're made to when they're sold. However, 6. Collecting Data: This can be done through
they often don't know what happens after a customer surveys, observations, or online methods.
buys the product. They might not know who is using 7. Designing Data Collection Forms: Create
it, how it's used, or what customers really think about forms or questionnaires to gather data.
it. For new products or markets, it's hard to predict if 8. Determining Sample Size and Plan: Decide
the product will be popular. Since people's opinions on how many people you need to survey and how
value are subjective, measuring how much customers to select them.
like a product can be tricky. 9. Collecting Data: Gather the information while
minimizing errors.
Even though marketing research can be expensive, it is 10. Analyzing Data: Process the data to find
crucial. Here are some important reasons for doing useful insights.
marketing research: 11. Preparing and Presenting the Final Report:
Summarize the findings and present them in a
 Identify New Opportunities: Discover new clear way.
products or services that might succeed.
 Reduce Risks: Avoid costly mistakes by Using Research to Make Decisions: Marketing
understanding the market better. research helps companies make informed decisions
 Spot Market Trends: Stay ahead of changes instead of relying on guesses. For example:
in the market.
 Understand Customer Satisfaction: Learn  External Factors Research: Helps identify
how happy customers are with your products. broad market changes.
 Plan Better Advertising: Choose the best way  Observation Research: Understands customer
to advertise your product. behavior.
 Test Marketing Strategies: Try out and  Test Marketing: Tests a product in a small
improve advertising campaigns before fully market before a full launch.
launching them.  Target Market Studies: Understands who the
 Analyze Packaging and Branding: Find out target customers are.
what packaging, brand names, or labels work  Pricing Tests: Finds the best price for a
best. product.
 Set the Right Price: Understand how much  Location Studies: Chooses the best places to
customers are willing to pay. sell the product.
 Choose the Best Locations: Find the best  Advertising Tests: Measures how well ads are
places to sell your product. working.
 Usage and Attitude Studies: Increases
Steps in the Marketing Research Process: awareness and usage of a product.

1. Establishing the Need for Research: Before In summary, marketing research is a vital tool that
starting, decide if research is necessary. It helps businesses understand their market, improve
might not be needed if the information is their products, and make smarter decisions.