2. Definition : Marketing Research
“Marketing research is the systematic design, collection, analysis and
reporting of data and findings relevant to a specific marketing situation
facing the company.”
Marketing research is the process of designing, gathering, analyzing,
and reporting information that may be used to solve a specific marketing
problem.
3. Marketing Research Process Evolves From
Answers to Five Key Questions
• Why should we do research?
• What research should be done?
• Is it worth doing the research?
• How should the research be designed to achieve
the research objectives?
• What will we do with the research?
4. Need of marketing research
To undertake marketing effectively
Changes in technology
Changes in consumer tastes
Market demand
Changes in the product ranges of competitors
Changes in economic conditions
Distribution channels
5. Factors to be Investigated through
Market Research
Trends in the market
Segmentation of the market
Information available
SWOT analysis
Effectiveness of Marketing
6. Purpose of Marketing Research
Gain a more detailed understanding of consumers’ needs:
e.g., views on products’ prices, packaging, recent advertising campaigns
Reduce the risk of product/business failure:
there is no guarantee that any new idea will be
a commercial success
Can help to achieve commercial success
Forecast future trends:
it can also be used to anticipate future customer needs
7. 7 Characteristics of a Good Marketing
Research
1. Scientific Method : Research should use principles of scientific
methods ;careful observation, formulation of hypothesis,
prediction and testing
2. Research Creativity : Research should develop innovative ways to
solve a problem
3. Multiple Methods : Try to use 2 or 3 methods for getting more
confidence and more accurate result
4. Interdependence of models and data : Researchers recognize that
data are interpreted from underlying models that guide the type
of information sought
5. Value and Cost of Information : Estimation of cost and value, it is easier to
determine cost but value is harder, it depends on the
reliability and validity of information
8. 6. Healthy Skepticism : Researcher shows a healthy skepticism towards
glib assumptions made by managers
7. Ethical Marketing : Marketing research benefits both the sponsoring
company and its customers
9. Marketing Research Methods
1. Based on questioning
Qualitative marketing research -
generally used for exploratory purposes - small number of
respondents - not generalizable to the whole population - statistical
significance and confidence not calculated - examples include focus
groups, in-depth interviews, and projective techniques
Quantitative marketing research -
generally used to draw conclusions - tests a specific hypothesis -
uses random sampling techniques so as to infer from the sample to
the population - involves a large number of respondents
10. 2. Based on observations
Ethnographic studies –
by nature qualitative, the researcher observes social phenomena
in their natural setting - observations can occur “cross- sectionally”
(observations made at one time) or “longitudinally” (observations
occur over several time-periods) - examples include product-use
analysis and computer cookie traces.
Experimental techniques -
by nature quantitative, the researcher creates a quasi-artificial
environment to try to control spurious factors, then manipulates at
least one of the variables - examples include purchase laboratories
and test markets
12. 1. Qualitative Research
qualitative market research which mainly takes into account the
opinions and feelings of a customer about products and services
It tries to get behind the customer’s mind
13. 2. Quantitative Research
This type of research work is based on hard facts and statistical data
rather than the feelings and opinions of the customers or consumers
This type of research is useful both in terms of primary market research
and secondary market research
Some of the common examples of quantitative research include exit
surveys, questionnaires, on-site fieldwork, the shopping bag survey,…
14. Primary Market Research
Also called as “Field Research”
Primary market research is a kind of market research which is done by
the business or company itself with the objective of gathering
information that can be used to improve the products, services, and
functions
It doesn’t use any information that is already made available through
other sources
One can gather primary data or information through qualitative research
methods as well as quantitative research methods
It is a method that only answers specific questions
15. 5 Primary Market Research Techniques
1. Focus Groups :
This method involves getting a group of people in a room or a
place and asking them insightful questions regarding the
product, its development, their preferences, and feedback, etc
These types of focus groups can be run or conducted at any
location feasible for the company or business
Participants in such focus groups are then compensated by
either free coupons, vouchers, gifts or money, etc.
It is one type of qualitative research
16. 2. Surveys and Questionnaire
The term ‘surveys’ is a broad term that covers a lot of things
such as survey questionnaires, survey forms, survey interviews
and customer satisfaction cards, etc.
It is a straightforward method of knowing whether or not the
customer is satisfied with the business’s existing services and
products or what kind of changes would the consumer like to
see
17. 3. Observation
• There are two major observation techniques
• observation through interaction and communication with
the subject
• observation through no interaction and communication
with the subject
• This is more of a personal approach in comparison to surveys
and questionnaires
• Its come under Quantitative research
18. 4. Trials and experimentation
This method of primary research involves scientific tests where
hypotheses and variables, etc. are used
This is a quantitative type of market research
19. 5. In-depth Interviews
It is a qualitative research
It takes into consideration the kinds of choices and preferences
a customer
Interviews, unlike focus groups, involve interaction between
one moderator and one respondent and several types of modes
and methods may be used to conduct them.
20. Secondary Market Research
secondary market research is a research technique that does not aim to
gather new information, it relies on already available information from
multiple sources
This research focuses on data or information that was collected by other
people and is available for either free or paid use for others
It takes into account many different sources for collection of
information including government data, office data, newspapers,
magazines, the internet, etc
One of the benefits of doing secondary market research is that it is
mostly free and takes less time
21. 2 Main sources of Secondary Market Research Data
1. Internal Sources
Internal sources are those kinds of secondary market research
sources that already exist and are collected in the business’s
database or file system
It include information that has already been collected by the
company and proves useful for future projects, etc
Examples
Balance Sheet
Profit and Loss Account
Inventory Records
Sales Figures
22. 2. External Sources
External sources are those sources that present data that is
collected by other businesses or people
These are collected from outside the business’s environment
and include multiple sources
Examples
Government Sources
Universities and Colleges
Internet
Competitor Data
23. Classification of Marketing Research
Marketing Research
Problem
Identification Research
Problem-Solving
Research
• Market Potential Research
• Market Share Research
• Market Characteristics Research
• Sales Analysis Research
• Forecasting Research
• Business Trends Research
• Segmentation Research
• Product Research
• Pricing Research
• Promotion Research
• Distribution Research
24. Problem-Solving Research
1. Segmentation Research
Determine the basis of segmentation
Establish market potential and
responsiveness for various
segments
Select target markets
Create lifestyle profiles:
demography, media, and
product image characteristics
25. 2. Product Research
Test concept
Determine optimal product design
Package tests
Product modification
Brand positioning and repositioning
Test marketing
Control store tests
26. 3. Pricing Research
Pricing policies
Importance of price in brand selection
Product line pricing
Price elasticity of demand
Initiating and responding to price changes
$ALE
28. 5. Distribution Research
Types of distribution
Attitudes of channel members
Intensity of wholesale & retail coverage
Channel margins
Location of retail and wholesale outlets
29. Market Research Process
Step 1: Defining the Problem and Objectives
Step 2: Develop the Research Plan
Step 3: Collect the Information
Step 4: Analyze the Information
Step 5: Present the Findings
Step 6: Making Decision
30. Areas Covered by Marketing Research
Controllable
Marketing
•Product
•Pricing
•Promotion
•Distribution
Variables
Marketing
Research
Marketing
Decision
Making
Providing
Information
Assessing
Information
Needs
Marketing Managers
• Market Segmentation
• Performance & Control
• Target Market Selection
• Marketing Programs
Uncontrollable
Environmental
Factors
• Economy
• Technology
• Laws &
Regulations
• Social & Cultural
Factors
• Political Factors
• Consumers
• Employees
• Shareholders
• Suppliers
Customer Groups
31. MISTAKES TO AVOID WHEN DOING MARKET
RESEARCH
Doing only primary market research or secondary market research
Using only the web for research
Limited Vision
Not being able to identify your target audience
Not giving consumers an incentive to communicate with you
32. Benefits of Market Research
Tapping Opportunities
Encouraging Communication
Minimization of the risks
Find out possible problems