MARKET RESEARCH

WHAT IS MARKET RESEARCH?
 Is an organized effort to gather information about target
markets and customers: know about them, starting with who they
are.[1] It is an important component of business strategy and a
major factor in maintaining competitiveness. Market research helps
to identify and analyze the needs of the market, the market size
and the competition. Its techniques encompass
both qualitative techniques such as focus groups, in-depth
interviews, and ethnography, as well as quantitative techniques
such as customer surveys, and analysis of secondary data.

ACCORDING TO ARMSTRONG AND KOTLER
MARKETING RESEARCH IS SYSTEMATIC
DESIGN, COLLECTION, ANALYSIS AND
REPORTING OF DATA TO A SPECIFIC
MARKETING SITUATION FACING AN
ORGANIZATION.

MARKETING RESEARCH PROCEDURE IN GATHERING AND
ANALYZING DATA
1. DEFINING THE PROBLEM AND RESEARCH OBJECTIVES
2. DEVELOPING THE RESEARCH PLAN FOR COLLECTING
INFORMATION
3. IMPLEMENTING THE RESEARCH PLAN- COLLECTING AND
ANALYZING THE DATA
4. INTERPRETING AND REPORTING THE FINDINGS

MARKETING RESEARCH PROCEDURE IN GATHERING AND
ANALYZING DATA
STEP 1. DEFINING THE PROBLEM AND RESEARCH OBJECTIVES.
 IN THIS STEP, THE MARKETING TEAM MUST DETERMINE THE
PROBLEM AND THE RESEARCH OBJECTIVES. THOUGH THIS
STEP IS USUALLY THE HARDEST PART OF THE PROCESS, THE
RESEARCHERS SHOULD UNDERSTAND THE NATURE OF
RESEARCH AND THE POSSIBLE BEST SOURCE OF
INFORMATION.

IN DETERMINING THE PROBLEM, THE MARKETING GROUP MAY BE
GUIDED BY THESE TWO (2) QUESTIONS:
1. WHY IS THERE A NEED TO CONDUCT A
MARKETING RESEARCH?
2.WHAT PARTICULAR GAP IN MARKETING THAT
NEEDS TO BE ADDRESSED?

EXAMPLE:
“WE WOULD LIKE TO FIND OUT WHY
OUR BRAND IS NOT GAINING
ATTENTION TO THE MARKET DESPITE
OUR MASSIVE ADVERTISING EFFORTS”

“WE HAVE TO KNOW THE REASON WHY BRAND X HAS CAPTURED
THE MAJORITY OF THE MARKET SHARE WHILE BRAND Y AND Z ARE
SHARING A LITTLE PORTION OF THE MARKET”
“ WE HAVETO KNOW THE PERCEPTION OF THE CUSTOMERS ON THE
EXISTING PRODUCT FEATURES OF OUR BRAND AGAINTS THE
OTHER BRANDS”

AFTER IDENTIFYING THE MARKETING PROBLEM, THEY HAVE TO
FORMULATE THEIR RESEARCH OBJECTIVES:
3 TYPES OF RESEARCH OBJECTIVES
1, EXPLORATORY RESEARCH- THE MAIN PURPOSE OF THIS RESEARCH IS TO COLLECT
INITIAL INFORMATION THAT WILL HELP DEFINE PROBLEMS AND SUGGESTS
HYPOTHESIS
2. DESCRIPTIVE RESEARCH- THE MAIN PURPOSE OF THIS RESEARCH IS TO DESCRIBE
MARKETING PROBLEMS, SITUATONS OR MARKETS, SUCH AS MARKET POTENTIAL FOR
A PRODUCT OR THE DEMOGRAPHICS AND ATTITUDE OF CUSTOMERS.
3. CAUSAL RESEARCH- THE MAIN PURPOSE OF THIS RESEARCH IS TO TEST
HYPOTHESIS ABOUT CAUSE AND EFFECT RELATIONSHIPS.

MARKETING RESEARCH PROCEDURE IN GATHERING AND
ANALYZING DATA
STEP 2: DEVELOPING A RESEARCH PLAN FOR COLLECTING
INFORMATION
IN THIS STAGE, THE MARKETING TEAM MUST DEVELOP A
RESERCH PLAN THAT WOULD BE THE BASIS OF THE
INFORMATION THAT NEEDS TO BE GATHERED EFFICIENTLY
IN ATTAINING THE RESEARCH OBJECTIVES.

THE MARKETING RESEARCH PLAN MAY CONTAIN THE FF. VARIABLES:
1. STATEMENT OF THE PROBLEM
2. RESEARCH OBJECTIVES
3. SIGNIFICANCE OF THE RESEARCH
4. SCOPE OF RESEARCH
5. EXISTING DATA
6. RESEARCH APPROACHES
7. REASEARCH METHODS
8. SAMPLING PLANS
9. RESEARCH TOOLS OR INSTRUMENTS
10. RESEARCH COST

THE MARKET RESEARCH MAY GATHER PRIMARY AND SECONDARY
DATA
1. SECONDARY DATA
THESE ARE EXISTING INFORMATION GATHERED TO SERVE
SOME OTHER PURPOSE OR USE. IN GATHERING SECONDARY
DATA, THE MARKETING TEAM MAY REFER TO ITS INTERNAL
DATABASE OR MAY CALL ON SERVICES FROM OTHER SOURCES
OF INFORMATION LIKE BUSINESS DATA SERVICES AND
GOVERNMENT INFORMATION SERVICES.

MARKETING RESEARCH PROCEDURE IN GATHERING AND
ANALYZING DATA
THE ADVANTAGES OF USING SECONDARY DATA:
1. LOW COST
2. CAN BE AQCUIRED FASTER BECAUSE THE DATA IS ALREADY AVAILABLE
THE DOWNSIDE OF USING SECONDARY DATA IS WHEN THE SPECIFIC
INFORMATION NEEDED BY COMPANY MANY NOT EXIST, OR THE INFORMATION
IS NOT UPDATED.

THE MARKET RESEARCH MAY GATHER PRIMARY AND SECONDARY
DATA
2. PRIMARY DATA
THESE ARE INFORMATION GATHERED TO SERVE THE
SPECIFIC PURPOSE OF THE RESEARCH. THE
RESEARCH TEAM SHOULD ENSURE THAT ALL
INFORMATION COLLECTED IS SIGNIFICANT, PRECISE,
UPDATED AND IMPARTIAL.

IN GATHERING PRIMARY DATA, THE MARKETING RESEARCHERS CONSIDER
RESEARCH APPROACH, METHODS, SAMPLING AND INSTRUMENT.
RESEARCH APPROACHES
1. OBSERVATION RESEARCH- COLLECTING DATA THROUGH OBSERVATION OF
FAMOUS PEOPLE, ACTIONS AND REACTIONS TO SITUATIONS
2. SURVEY RESEARCH- COLLECTING DATA THROUGH INQUIRY TO PEOPLE ON
THEIR KNOWLEDGE, CHOICES, PERCEPTION, ATTITUDE AND BEHAVIOR
3. EXPERIMENTAL- COLLECTING DATA THROUGH THE CHOICE OF MATCHED
GROUPS OF SUBJECTS, EXPOSING THEM INTO DIFFERENT TREATMENTS AND
CONTROLLED TESTS.

IN GATHERING PRIMARY DATA, THE MARKETING RESEARCHERS CONSIDER
RESEARCH APPROACH, METHODS, SAMPLING AND INSTRUMENT.
CONTACT METHODS
1. MAIL QUESTIONNAIRES- INFORMATION CAN BE ATTAINED BY
EMAILING THE QUESTIONNAIRES TO THE TARGET CUSTOMERS
2. TELEPHONE INTERVIEWS- TARGET RESPONDENTS CAN BE
REACHED THROUGH PHONE CALLS
3. PERSONAL INTERVIEW (FOCUS INTERVIEW AND FOCUS GROUP

IN GATHERING PRIMARY DATA, THE MARKETING RESEARCHERS CONSIDER
RESEARCH APPROACH, METHODS, SAMPLING AND INSTRUMENT.
SAMPLING PLAN
SAMPLE- REFERS TO A SEGMENT OF THE POPULATION SELECTED FOR THE MARKETING
RESEARCH TO PRESENT THE POPULATION AS A WHOLE (KOTLER AND ARMSTRONG)
3 FACTORS THAT NEED TO BE CONSIDERED IN DESIGNING THESAMPLE IN MARKETING
RESEARCH.
1. SAMPLING UNIT- REFERS TO THE SUBJECT (PERSON OR GROUP OF PEOPLE) THAT WILL BE
STUDIED. MARKETING RESEARCHERS MAY SELECT ONE SMPLE AMONG THE TARGET
POPULATION OF THE RESEARCH TO REPRESENT THE WHOLE.
EXAMPLE: WHEN STUDYING THE BUYING BEHAVIOR OF COLEGE STUDENTS IN METRO MANILA
ON FAST FOODS PRODUCTS, A SINGLE STUDENT IN A UNIVERSITY CAN BE A SAMPLING UNIT.

IN GATHERING PRIMARY DATA, THE MARKETING RESEARCHERS CONSIDER
RESEARCH APPROACH, METHODS, SAMPLING AND INSTRUMENT.
2. SAMPLING SIZE- REFERS TO THE NUMBER OF SUBJECTS TO BE INCLUDED IN
THE STUDY.
EXAMPLE: HOW MANY STUDENTS SHOULD BE INCLUDED IN THE STUDY? THE
SIZE OF THE SAMPLE MAY BE DETERMINED DEPENDING ON THE STATISTICAL
CONSIDERATIONS AND THE COST OF RESEARCH. THE REALIBILITY OF THE
RESULTS MAY BE AFFECTED BY THE SAMPLING SIZE.
3. SAMPLING PROCEDURES- IT REFERS TO THE PROCESS OF SELECTION OF THE
SAMPLE. HOW THE SUBJECT IN THE SAMPLE BE SELECTED? THE MARKETERS
MAY USE PROBABILITY SAMPLES OR NON PROBABILITY SAMPLES IN THEIR
SELECTION.

IN GATHERING PRIMARY DATA, THE MARKETING RESEARCHERS CONSIDER
RESEARCH APPROACH, METHODS, SAMPLING AND INSTRUMENT.
PROBABILITY SAMPLES:
A. SIMPLE RANDOM SAMPLE
B. STRATIFIED RANDOM SAMPLE
C. CLUSTER (AREA) SAMPLE
NONPROBABILITY SAMPLES:
A. CONVINIENCE SAMPLE
B. JUDGEMENT SAMPLE
C. QUOTA SAMPLE

IN GATHERING PRIMARY DATA, THE MARKETING RESEARCHERS CONSIDER
RESEARCH APPROACH, METHODS, SAMPLING AND INSTRUMENT.
RESEARCH INSTRUMENTS
1. QUESTIONNAIRES- THE MOST COMMON RESEARCH INSTRUMENT,
RESEARCHERS USE QUESTIONNAIRES AS A TOOL IN GATHERING DATA,
WHETHER FOR A PERSONAL INTERVIEW, MAIL,TELEPHONE OR ONLINE.
- FLEXIBLE INSTRUMENT OF A RESEARCHER, MAY CLOSED END OR OPEN END
QUESTIONS TO THE RESPONDENTS DEPENDING ON THE OBJECTIVE OF THE
RESEARCH.

IN GATHERING PRIMARY DATA, THE MARKETING RESEARCHERS CONSIDER
RESEARCH APPROACH, METHODS, SAMPLING AND INSTRUMENT.
CLOSED- END QUESTIONS PROVIDE POSSIBLE ANSWERS TO
CHOOSE:
A. REFERRED BY FAMILY, FRIENDS OR COLLEAGUES
B. THROUGH TV, RADIO AND PRINT ADVERTISEMENTS
C. ONLINE ADS VIA EMAIL OR FACEBOOK ACCOUNTS
D.OTHERS

IN GATHERING PRIMARY DATA, THE MARKETING RESEARCHERS CONSIDER
RESEARCH APPROACH, METHODS, SAMPLING AND INSTRUMENT.
OPEN- END QUESTIONS PROVIDE RESPONDENTS TO USE THEIR WORDS IN
ANSWERING THE QUESTIONS. EXAMPLE
1. WHAT IS YOUR STAND IN THE CHANGING CONCEPT OF BEAUTY AMONG
FILIPINO WOMEN?
2. WHAT IS YOUR POINT OF VIEW ON FILIPINO WOMEN USING SKIN-
WHITENING PRODUCTS, LIKE SOAP, LOTION, PILLS/CAPSULES OR INJECTABLE
SERUM?
3. WHAT IS YOUR OPINION ON PRODUCTS THAT OFFERS SKINWHITENING
RESULTS IN JUST ONE (1) WEEK?

IN GATHERING PRIMARY DATA, THE MARKETING RESEARCHERS CONSIDER
RESEARCH APPROACH, METHODS, SAMPLING AND INSTRUMENT.
RESEARCH INSTRUMENTS
2. MECHANICAL INSTRUMENTS- MARKETING
RESEARCHERS CAN ALSO USE MECHANICAL DEVICES TO
MONITOR THE BEHAVIOR OF THE CUSTOMERS. SOME
COMPANIES USE PEOPLE METERS OR RETAIL SCANNERS IN
GETTING INFORMATION ON THE CUSTOMER BEHAVIOR.

MARKETING RESEARCH PROCEDURE IN GATHERING AND
ANALYZING DATA
STEP 3. IMPLEMENTING THE RESEARCH PLAN
- COLLECTING AND ANALYZING THE DATA. IN THIS STAGE,
THE MARKETING RESEARCHERS IMPLEMENT THE
RESEARCH PLAN. THE RESEARCH TEAM IS CAREFULLY
ADMINISTERING THE COLLECTION OF DATA TO SECURE
RELIABILITY AND ACCURACY OF THE RESULTS.

MARKETING RESEARCH PROCEDURE IN GATHERING AND
ANALYZING DATA
AFTER THE DATA COLLECTION, THE MARKETING RESEARCH TEAM
WILL THOROUGHLY PROCESS AND ANALYZE THE INFORMATION
BEING GATHERED OR GENERATED FROM THE TARGET
RESPONDENTS. IN THIS PROCESS, THE RESEARCH TEAM MUST
SECURE UTMOST ACCURACY AND COMPLETENESS OF THE DATA TO
BE TREATED AND ANALYZED. IN THE RESEARCH PROCESS, THIS IS
THE MOST TIRING AND EXPENSIVE STAGE. THUS, THE MARKETING
RESEARCH TEAM SHOULD BE PREPARED AND EQUIPPED.

MARKETING RESEARCH PROCEDURE IN GATHERING AND
ANALYZING DATA
STEP 4: INTERPRETING AND REPORTING THE FINDINGS.
IN THIS STAGE, THE MARKETING RESEARCHERS WILL INTERPRET THE
PROCESSED DATA AND COME UP WITH FINDINGS AND
CONCLUSIONS BEFORE REPORTING IT TO THE MANAGEMENT.
THE MARKETING RESEARCH TEAM SHOULD REPORT THE
SIGNIFICANT FINDINGS AND INSIGHTD THAT WILL HELP THE
MANAGEMENT IN MAKING MAJOR DECISIONS.

MARKETING RESEARCH PROCEDURE IN GATHERING AND
ANALYZING DATA
 MANAGERS HAVE A ROLE IN INTERPRETING THE GENERATED DATA.
MANAGER’S INSIGHTS ARE PERTINENT IN GIVING AN IN- DEPTH
INTERPRETATION OF THE INFORMATION.
 THE INTERPRETATION STAGE IS THE MOST CRUCIAL PART OF THE
MARKET RESEARC PROCESS. SOME COMPANIES HIRE MARKETING
RESEARCH SPECIALIST AND STATISTICIANS WHO WILL WORK
TOGETHER WITH THE MARKETING RESEARCH TEAM AND MANAGERS
JUST TO ENSURE ACCURATE AND RELIABLE INTERPRETATION OF THE
INFORMATION.