Marketing Research

Eighth Edition

Chapter 3
The Marketing
Research Process
and Defining the
Problem and
Research Objectives
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Learning Objectives
In this chapter you will learn:
3.1 A brief history of the marketing research industry
3.2 The different types of marketing research firms
3.3 The industry structure of marketing research
3.4 New challenges to the marketing research industry
3.5 The areas of ethical sensitivity in the marketing research
process and industry initiatives for self improvement
3.6 How to investigate careers in the marketing research
industry

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Figure 3.1 11 Steps in the Marketing
Research Process

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The Marketing Research Process:
Caveats to a Step-by-Step Process
The “Step-by-Step Process”
• Not always presented as an 11-step process
• Not all studies use all 11 steps
• Few studies follow the steps in order

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Figure 3.2 “Where We Are”
1. Establish the need for marketing research.

2. Define the problem.

3. Establish research objectives.

4. Determine research design.

5. Identify information types and sources.

6. Determine methods of accessing data.

7. Design data collection forms.

8. Determine the sample plan and size.

9. Collect data.

10. Analyze data.

11. Prepare and present the final research report.

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Step 1: Establish the Need for
Marketing Research (1 of 3)
• Is there a real need for marketing research?
• Research takes time and costs money
• Cost of information may outweigh value of information

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Step 1: Establish the Need for
Marketing Research (2 of 3)
Is there a real need for marketing research?
• Marketing research is not always needed.
• We often have the information

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Step 1: Establish the Need for
Marketing Research (3 of 3)
When is marketing research NOT needed?
• The information is already available
• The timing is wrong to conduct marketing research
• Funds are not available for marketing research
• Costs outweigh the value of marketing research

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Step 2: Define the Problem
The need to make a decision requires decision
alternatives. If there are no alternatives, no decision is
necessary.

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Step 3: Establish Objectives
• Research objectives state what the researchers must
do.
• Research objectives, when achieved, provide the
information necessary to solve the problem identified
in step 2.

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Step 4: Determine Research Design
• Exploratory Research: collecting information in an
unstructured and informal manner.
• Descriptive research: research that describes the
phenomena of interest.
• Causal studies: attempt to uncover what factor or
factors cause some event.

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Step 5: Identify Information Types
and Sources
• Primary information: information collected
specifically for the problem at hand
• Secondary information: information already
collected

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Step 6: Determine Methods of
Accessing Data
• Secondary data is relatively easy to access
• Primary data is more complex

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Step 7: Design Data Collection
Forms (1 of 2)
• The questionnaire must be worded objectively,
clearly, and without bias in order to communicate with
respondents.
• If a focus group is used, a focus group guide must
be developed.
• If we observe respondents, the form is called an
observation form.

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Step 7: Design Data Collection
Forms (2 of 2)
• Software programs are available to assist marketing
researchers in preparing data collection forms.

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Step 8: Determine Sample Plan and
Size
• A sample is drawn from an entire group or
population. The sample plan describes how each
sample element, or unit, is to be drawn from the total
population. Gives you representativeness!
• Sample size refers to determining how many
elements of the population should be included in the
sample. Gives you accuracy! (N*5; n: number of
variables)

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Step 9: Collect Data
• Nonsampling errors in data collection will occur, so
researchers must know the sources of these errors
and implement controls to minimize them.
• Researchers aim to minimize this possibility by
undertaking a control referred to as validation.
• Companies that specialize in data collection are
referred to as field service firms.

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Step 10: Analyze Data
• Data analysis involves entering data into computer
files, inspecting data for errors, and running
tabulations and various statistical tests.

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Step 11: Prepare and Present the
Final Research Report
• Reporting, the last step, is one of the most important
phases of marketing research.
• Its importance cannot be overstated because it is the
report, or its presentation, that properly communicates
the results to the client.

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Defining the Problem
• Problems are situations calling for managers to make
choices among decision alternatives.

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Figure 3.3 Process for Defining a
Problem

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The Research Objective (1 of 2)
• Research objectives are specific and tell the
researcher exactly what information must be collected
to solve the problem by facilitating selection of an
alternative.

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The Research Objective (2 of 2)
• Specify from whom information is to be gathered
• Specify what information is needed
• Specify the unit of measurement used to gather
information
• Word questions used to gather information using the
respondents’ frame of reference

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Table 3.1 Formulating Research
Objectives as Statements or Questions
Problem Statement: The American Red Cross wishes to increase the number of American
university students who donate blood each year.
Formulating Research Objectives as Formulating Research Objectives as
Statements Questions
To determine what college students see as the What do college students see as the benefits of
benefits of donating blood donating blood?
To determine what college students see as the What do college students see as the obstacles to
obstacles to donating blood donating blood?
To identify the incentives that would encourage What incentives would encourage students to
students to donate blood donate blood?
To distinguish the types of promotions that are What types of promotions are most likely to
most likely to attract college students attract college students?
To identify how the information defined from the How does the information defined from the
previous statements varies according to the previous questions vary according to the
characteristics of college students, including characteristics of college students, including
gender, class standing, type of university gender, class standing, type of university
attending, domestic versus international student, attending, domestic versus international student,
and geographical region. and geographical region?

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Hypotheses and Constructs
• Hypotheses are statements that are taken as true for
the purposes of argument or investigation.
• A construct is an abstract idea or concept composed
of a set of attitudes or behaviors that are thought to be
related.
– What is the unit of measurement?
– What is the proper frame of reference?

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The Importance of Properly Defining
the Problem
• When you define a problem incorrectly, there is
nothing you can do in the research process to
overcome this error.
• This makes defining the problem and research
objectives the most important step in the marketing
research process.

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Action Standards
• An action standard is a predesignation of some
quantity of a measured attribute or characteristic that
must be achieved for a research objective for a
predetermined action to take place.

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The Market Research Proposal (1 of 2)
• The marketing research proposal serves as the
basis of a contract as it documents what the
marketing researcher proposes to deliver to the client
for some consideration, typically a fee.
• When a client first contacts a marketing research
supplier to conduct research, the client will generally
request a proposal prior to agreeing to work with the
firm in a process called an invitation to bid (ITB) or
request for proposal (RFP) .

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The Market Research Proposal (2 of 2)
Elements include:
• Statement of the problem
• The research objectives
• The research method
• Statement of deliverables
• Costs
• Timetable

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Copyright

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