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Chapter One
INTRODUCTION TO MARKETING RESEARCH

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Chapter Outline

1) Overview
2) Definition of Marketing Research
3) A Classification of Marketing Research
4) Marketing Research Process
5) The Nature of Marketing Research
6) Marketing Research Suppliers and Services
7) Selecting a Research Supplier
8) Careers in Marketing Research
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Chapter Outline

9) The Role of Marketing Research in MIS and DSS

10) The Department Store Project
11) Marketing Research Associations Online
12) Summary
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Scion: The Illustrious offspring of Toyota

 Lexus(older affluent generation),
 Generation ‘Y’(Opportunity)
 Y: less expensive and youth oriented
 Rivals: Honda, Volkswagen, Ford, Chevrolet, Mazda
 Toyota’s Image: “My Parents car”
 Project Genesis: under 30 market
 Existing models: Echo, Celica MR2 Spyder (no cohesion and
older image)
 Market research: Internet surveys, focus groups
 Findings: Gen Y values individuality, diversity and style.
 Adv: No traditional methods. Live concerts and events
 160 watt stereos, cell phone holders, plush seats etc.
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J&J’s Baby aspirin

 J&J’s image: gentle, safe

 Baby aspirin: J&J failed
 Reason: people wanted safe but not gentleness as it
might not be effective.
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Redefining Marketing Research

The American Marketing Association

(AMA) redefined Marketing Research as:

The function which links the consumer, the

customer, and public to the marketer
through INFORMATION
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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
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Definition of Marketing Research

Marketing research is the systematic and objective

 identification
 collection
 analysis
 dissemination
 and use of information

for the purpose of improving decision making related to the

 identification and
 solution of problems and opportunities in marketing.
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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
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Classification of Marketing Research

Problem Identification Research

 Research undertaken to help identify problems which are
not necessarily apparent 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.
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A Classification of Marketing Research

Fig 1.1
Marketing Research

Problem Problem Solving

Identification Research Research

Market Potential Research Segmentation Research

Market Share Research
Market Characteristics Research
Sales Analysis Research
Forecasting Research
Business Trends Research
Product Research
Promotion Research
Distribution Research
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Problem Solving Research

Table 1.1
SEGMENTATION RESEARCH

 Determine the basis of segmentation

 Establish market potential and
responsiveness for various PRODUCT RESEARCH
segments
 Select target markets  Test concept
 Create lifestyle profiles:  Determine optimal product design
demography, media, and
 Package tests
product image characteristics
 Product modification
 Brand positioning and
repositioning
 Test marketing
 Control score tests
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Problem Solving Research

Table 1.1 cont. PROMOTIONAL RESEARCH
 Optimal promotional budget
0.00% APR  Sales promotion relationship
 Optimal promotional mix
 Copy decisions
 Media decisions
 Creative advertising testing
 Evaluation of advertising effectiveness
PRICING RESEARCH  Claim substantiation
 Pricing policies
 Importance of price in brand selection
 Product line pricing
 Price elasticity of demand $ALE
 Initiating and responding to price changes
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Problem Solving Research

Table 1.1 cont.

DISTRIBUTION RESEARCH

Determine…
 Types of distribution
 Attitudes of channel members
 Intensity of wholesale & resale coverage
 Channel margins
 Location of retail and wholesale outlets
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Kellogs

 Problem: slump in market and low cereal sales

 Spoke to decision makers, industry experts, analysed
data
 Finding: current products being targeted to kids,
high prices, adults wanted quick foods with almost
no preparation
 Sol.: Introduced new flavors suiting to the adult
palate. Introduced Kellog’s Nutri grain cereal bar
blackberry
 Result: Sales increased, consumption increased
beyond breakfast.
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Marketing Research Process

Step 1: Problem Definition

Step 2: Development of an Approach to the
Problem
Step 3: Research Design Formulation
Step 4: Fieldwork or Data Collection
Step 5: Data Preparation and Analysis
Step 6: Report Preparation and Presentation
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The Role of Marketing Research

Fig 1.2 Customer Groups
• Consumers
• Employees
• Shareholders
• Suppliers Uncontrollable
Controllable Environmental
Marketing Factors
Variables
Marketing •Economy
•Product
Research •Technology
•Pricing
•Laws &
•Promotion Regulations
•Distribution •Social & Cultural
Marketing Factors
Assessing Providing
Information Information Decision •Political Factors
Needs Making

Marketing Managers
• Market Segmentation
• Target Market Selection
• Marketing Programs
• Performance & Control
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Starbuck’s success in Japan

 Survey was done to find what people wanted

 Finding: willing to pay 250 yen for espresso and 280
yen for caffe latte, people wanted plenty of items on
the menu including sandwhiches and salads.
 Result: increase in sales and better image
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Marketing Research Suppliers & Services

Fig 1.3

RESEARCH
INTERNAL SUPPLIERS EXTERNAL

LIMITED SERVICE
FULL SERVICE
Field Branded
Syndicate Internet Products
Services
Services Services and Services
Customize Coding and
Standardized
d Data Entry Data
Services
Services Services Analysis
Analytical
Services Services
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Selected Marketing Research Career Descriptions

Fig 1.4 cont.
Research Director
Vice President of Marketing
Research • Also part of senior

• Part of company’s top management

management team • Heads the development

• Directs company’s entire market and execution of all

research operation research projects

• Sets the goals & objectives of the

marketing research department Assistant Director of Research
•Administrative assistant to director
•Supervises research staff members

Senior Project Manager

• Responsible for design, implementation, &
research projects
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Selected Marketing Research Career Descriptions

Fig 1.4 cont.
Senior Analyst
• Participates in the development of projects
• Carries out execution of assigned projects
• Coordinates the efforts of analyst, junior analyst, & other personnel in the
development of research design and data collection
• Prepares final report

Analyst Statistician/Data Processing

• Handles details in execution of
project
• Designs & pretests questionnaires
• Conducts preliminary analysis of
data
• Serves as expert on theory and
application on statistical techniques
• Oversees experimental design, data
processing, and analysis

Junior Analyst Fieldwork Director

• Secondary data analysis • Handles selection, training,
• Edits and codes questionnaires supervision, and evaluation of
• Conducts preliminary analysis of data interviewers and field workers
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Marketing Research Suppliers & Services

 Internal suppliers
 External suppliers
 Full-service suppliers
 Syndicated services
 Standardized services
 Customized services
 Internet services
 Limited-service suppliers
 Field services
 Coding and data entry services
 Analytical services
 Data analysis services
 Branded marketing research products
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Criteria for Selecting a Research Supplier

 What is the reputation of the supplier?

 Do they complete projects on schedule?
 Are they known for maintaining ethical standards?
 Are they flexible?
 Are their research projects of high quality?
 What kind and how much experience does the supplier have?
Has the firm had experience with projects similar to this one?
 Do the supplier's personnel have both technical and non-
technical expertise?
 Can they communicate well with the client?

Competitive bids should be obtained and compared on the basis

of quality as well as price.
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Careers in Marketing Research

 Career opportunities are available with marketing research firms

(e.g., AC Nielsen, Burke, Inc., M/A/R/C)

 Careers in business and non-business firms and agencies with

in-house marketing research departments (e.g., Procter &
Gamble, Coca-Cola, AT & T, the Federal Trade Commission,
United States Census Bureau)

 Advertising agencies (e.g., BBDO International, Ogilvy & Mather,

J. Walter Thompson, Young & Rubicam)

 Positions: vice president of marketing research, research

director, assistant director of research, project manager, field
work director, statistician/data processing specialist, senior
analyst, analyst, junior analyst, and operational supervisor.
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Preparation for a Career in Mktg. Research

 Take all the marketing courses you can.

 Take courses in statistics and quantitative methods.

 Acquire Internet and computer skills. Knowledge of

programming languages is an added asset.

 Take courses in psychology and consumer behavior.

 Acquire effective written and verbal communication skills.

 Think creatively. Creativity and common sense command a

premium in marketing research.
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Management Information Systems vs.

Decision Support Systems

MIS DSS

 Structured Problems
 Unstructured Problems
 Use of Reports
 Use of Models
 Rigid Structure
 User Friendly Interaction
 Information Displaying
 Adaptability
Restricted
Can Improve Decision
 Can Improve Decision Making
Making by Using “What if”
by Clarifying Data
Analysis