The Practice of Market

Research
Yvonne McGivern

CHAPTER ONE
Introduction to Marketing Research

Lecturer: Dr. Sara El-Menawy

Ch 1 -1 Copyright © 2019
Copyright Pearson
© 2019 Education
Pearson Education
Your Rights are …

1. To understand WELL
2. To share your experience & interact
2. To ask anytime & all the time.
3. To get answers.
4. To ask the instructor to repeat again.
5. If you have any complaint , please
tell me immediately.

1-2
 My Rights are…

1. To be on time.

2. To switch your mobile off.

3. To receive assignments on due dates.

4. Stop Chewing Gum in Lecture

5. Side talk is not accepted.

1-
3
 Assessment Methodology (Proposed)

Assignments 10 points
Quiz# 5 points
Project 10 points
Participation 5 points
Mid term 30 points
Final Exam 40 points
----------------------------------------------------------------------
Final Score: 100 points

4
Learning Objectives
1. What is the scope of marketing research?
2. What steps are involved in conducting good
marketing research?
3. What are the best metrics for measuring marketing
productivity?
Developing Marketing Research
Marketing Research

Marketing is a process by which companies create value

for customers and build strong customer relationships to
capture value from customers in return.

Marketing research is the systematic design, collection, analysis,

and reporting of data relevant to a specific marketing situation
facing an organization.

Copyright © 2019 Pearson Education

Developing Marketing Research
Marketing Research
Marketing research specifies the information required to address these
issues, designs the method for collecting information, manages and
implements the data collection process, analyzes the results, and
communicates the findings and their implications.
Market research: The systematic gathering and interpretation of
information about individuals or organizations using the statistical and
analytical methods and techniques of the applied social sciences to
gain insight or support decision making.
The function that links the consumer, customer, and public to the
marketer through information. Information used to…

Identify and define marketing opportunities and problems

Generate, refine, and evaluate marketing actions
Monitor marketing performance
 Improve the understanding of marketing as a process
 Pulling Marketing All Together, In which step you have to
perform a marketing research?

Copyright © 2011 Pearson Education

Ch 1 -8

Copyright © 2019 Pearson Education

The Scope of
marketing research

Who Does Marketing Research?

Marketing departments in big firms

 Everyone at small firms
Custom marketing research firms
Marketing Research Companies in Egypt
https://www.market-research-companies.in/Egypt
https://entasher.com/serviceprovider/85/best-Marketing-
Companies-Egypt

 Market Vision
Egypt Market
Research &
Consultancy

 Integrity
Market
Research
Redefining Marketing Research

The American Marketing Association (AMA)

redefined Marketing Research as:

The function that links the consumer, the

customer, and public to the marketer
through INFORMATION
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
 Definition of Marketing Research
Marketing research is the systematic and objective
 identification
 collection
 analysis
 and use of information
For the purpose of improving decision making related to
the
 identification and solution of problems and opportunities in marketing.
 Market 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

 A Classification of Marketing Research

Marketing Research

Problem Problem-Solving
Identification Research Research

Market Potential Research Segmentation Research

Market Share Research
Market Characteristics Research Product Research
Sales Analysis Research Pricing Research
Forecasting Research Promotion Research
Business Trends Research
Distribution Research
 Classification of Marketing Research
Problem-Identification Research
Research undertaken to help identify problems which are
not necessarily obvious 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.
 Problem-Solving Research

SEGMENTATION RESEARCH
 Determine the basis of segmentation
 Establish market potential and
PRODUCT RESEARCH
responsiveness for various
segments  Test concept

 Select target markets  Determine optimal product design

 Create lifestyle profiles:  Package tests

demography, media, and  Product modification
product image characteristics
 Brand positioning and repositioning
 Test marketing
 Control score tests
 Problem-Solving Research
PROMOTIONAL RESEARCH
 Optimal promotional budget
0.00% APR
 Sales promotion relationship
 Optimal promotional mix
 Copy decisions
 Media decisions
 Creative advertising testing

PRICING RESEARCH  Evaluation of advertising effectiveness

 Pricing policies  Claim substantiation

 Importance of price in brand selection

 Product line pricing
 Price elasticity of demand $ALE
 Initiating and responding to price changes
 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
The Marketing Research Process
Step 1 Define the problem and the research objectives

Define the problem

Define the decision alternatives
Define the research objectives

Marketing managers must be careful not to define the problem too broadly or too
narrowly for the marketing researcher.

To help design the research, management should first spell out the decisions it might face
and then work backward. Now management and marketing researchers are ready to set
specific research objectives. Some research is exploratory—its goal is to identify the
problem and to suggest possible solutions.

Some is descriptive—it seeks to quantify demand, such as how many first-class

passengers would purchase ultra high-speed Wi-Fi service at $25. Some research is
causal—its purpose is to test a cause-and-effect relationship.
Step 2: Develop the Research Plan
Step 2: Develop the Research Plan

a. Data sources
• Secondary data vs. primary data

Secondary data are data that were collected for another purpose
and already exist somewhere.
Primary data are data freshly gathered for a specific purpose or
project.
Researchers usually start their investigation by examining some of the
rich variety of low-cost and readily available secondary data to see
whether they can partly or wholly solve the problem without collecting
costly primary data. When the needed data don’t exist or are dated or
unreliable, the researcher will need to collect primary data. Most
marketing research projects do include some primary-data collection.
Step 2: Develop the Research Plan

b. Research approaches

Observational research
 Focus group research
 Survey research
 Behavioral research
 b. Research approaches

 Observational Research Researchers can gather fresh data by

observing customers shop or consume products. Sometimes they
equip consumers with pagers and instruct them to write down or text
what they’re doing.

 Focus Group Research A focus group is a gathering of 6 to 10 people

carefully selected for demographic, psychographic, or other
considerations and convened to discuss various topics at length for a
small payment.

 Survey Research Companies undertake surveys to assess people’s

knowledge, beliefs, preferences, and satisfaction and to measure
these magnitudes in the general population.
 b. Research approaches

 Behavioral Research Customers leave traces of their purchasing

behavior in store scanning data, catalog purchases, and customer
databases.
Marketers can learn much by analyzing these data. Actual
purchases reflect consumers’ preferences and often are more
reliable than statements they offer to market researchers.
Step 2: Develop the Research Plan
c. Research instruments
Marketing researchers have a choice of three main research instruments
in collecting primary data: questionnaires, qualitative measures, and
technological devices.

Questionnaires

Qualitative measures
Questionnaire
Questionnaire
Step 2: Develop the Research Plan

d. Sampling plan
• Sampling unit: Whom should we survey?

• Sample size: How many people should we survey?

• Sampling procedure: How should we choose the respondents?

With the sampling unit chosen, marketers must next develop a sampling frame so
everyone in the target population has an equal or known chance of being sampled.
Large samples give more reliable results, but it’s not necessary to sample the
entire target population to achieve reliable results. Samples of less than 1 percent
of a population can often provide good reliability, with a credible sampling
procedure. Probability sampling allows marketers to calculate confidence limits for
sampling error and makes the sample more representative.
Measuring marketing ROI

Marketing is everything a company does to acquire customers and maintain a

relationship with them. It is not an exact science, but it is getting better. The biggest
questions companies have about their marketing campaigns entail what return on
investment (ROI) they're getting for the money they spend.
 Measuring marketing ROI
You take the sales growth from that business or product
line, subtract the marketing costs, and then divide by the
marketing cost (Including the marketing research cost) .
(Sales Growth - Marketing Cost) / Marketing Cost = ROI
So, if sales grew by $1,000 and the marketing campaign
cost $100, then the simple ROI is 900%.
($1000-$100) / $100) = 900%.
 The Role of Marketing Research
Customer Groups
• Consumers
• Employees
• Shareholders
• Suppliers
Uncontrollable
Controllable Environmental
Marketing Factors
Variables
Marketing • Economy
• Product
Research • Technology
• Pricing
• Laws &
• Promotion Regulations
• Distribution • Social & Cultural
Assessing Marketing Factors
Providing
Information Information Decision • Political Factors
Needs Making

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