Chapter 1
Introduction
and Phases of
Marketing Research
Copyright © 2010 Pearson Education, Inc.
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Chapter 1 Outline
1) Definition of Marketing Research
2) The role of marketing research in marketing
decision making
3) A Classification of Marketing Research
4) Marketing Research Process
5) Marketing Research Suppliers and Services
6) Careers in Marketing Research
7) Questions for Revision
Copyright © 2010 Pearson Education, Inc.
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First: 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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Second: The Role of Marketing Research in
marketing decision making
Customer Groups
• Consumers
• Employees
• Shareholders
• Suppliers
Controllable
Marketing
Variables
• Product
• Pricing
• Promotion
• Distribution
Marketing
Research
Assessing
Information
Needs
Providing
Information
Marketing
Decision
Making
Uncontrollable
Environmental
Factors
• Economy
• Technology
• Laws &
Regulations
• Social & Cultural
Factors
• Political Factors
Marketing Managers
• Market Segmentation
•Target Market Selection
• Marketing Programs
• Performance & Control
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Third: A Classification of Marketing Research
Marketing Research
ProblemIdentification Research
Market Potential Research
Market Share Research
Market Characteristics Research
Sales Analysis Research
Forecasting Research
Business Trends Research
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Problem-Solving
Research
Segmentation Research
Product Research
Pricing Research
Promotion Research
Distribution Research
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1- 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, brand or
company image, market characteristics, sales analysis,
forecasting, and trends research.
• This type of research provides information about the
marketing environment and helps diagnose a problem.
• Example: a declining market potential indicates that the
firm is likely to have a problem in achieving its growth
targets.
• Similarly, studying economic, social, and cultural
environment may point to problems or opportunities.
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2- Problem-Solving Research
• Research undertaken to help solve specific marketing
problems.
• Examples: segmentation, product, pricing, promotion,
and distribution research.
• The findings of this type of research are used in making
decisions that will solve specific marketing problems.
The two types of research go hand in hand, and a project of
marketing research may combine both types of research.
(Real research illustration Boeing 737)
In Boeing 737 case the consumer surveys identified potential demand for
smaller planes (problem identification). Subsequent product research led
to the introduction of the new version of the Boeing 737, which cater to the
100-215-seat market (problem solving).
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Problem-Solving Research
SEGMENTATION RESEARCH
 Determine the basis of segmentation
 Establish market potential and
responsiveness for various
segments
 Select target markets
PRODUCT RESEARCH
 Test concept
 Determine optimal product design
 Package tests
 Product modification
 Brand positioning and repositioning
 Test marketing
 Controlled store tests
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Problem-Solving Research
PROMOTIONAL RESEARCH
 Optimal promotional budget
 Sales - promotion relationship
 Optimal promotional mix
 Copy decisions
 Media decisions
PRICING RESEARCH
 Creative advertising testing
 Evaluation of advertising effectiveness
 Pricing policies
 Claim substantiation
 Importance of price in brand selection
 Product line pricing
 Price elasticity of demand
 Response to price changes
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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
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Fourth: Marketing Research Process
Step 1: Defining the Problem
Step 2: Developing an Approach to the Problem
Step 3: Formulating a Research Design
Step 4: Doing Field Work or Collecting Data
Step 5: Preparing and Analyzing Data
Step 6: Preparing and Presenting the Report
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Fifth: Marketing Research Suppliers & Services
RESEARCH
SUPPLIERS
INTERNAL
FULL SERVICE
Syndicated
Services
Standardized
Services
Internet
Services
Customized
Services
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EXTERNAL
LIMITED SERVICE
Field
Services
Focus Groups
and Qualitative
Services
Other
Services
Technical
and Analytical
Services
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Marketing Research Suppliers & Services
1- Internal research supplier: Marketing research
department located within a firm.
2- external research suppliers: outside marketing research
companies hired to supply marketing research services.
They constitute the marketing research industry. It
includes two types of suppliers:
 Full-service suppliers: companies that offer the full
range of research activities from problem
identification to report preparation and presentation.
 Limited-service suppliers: companies that specialize
in one or a few phases of the marketing research
project such as: field services, coding and data
entry, and data analysis.
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Full-service suppliers
 Syndicated services: companies that collect and sell
common information of known commercial value,
designed to serve information needs shared by a number
of clients on a subscription basis (e.g. information on
audience size and their demographic characteristics).
 Standardized services: companies that use standardized
procedures to provide marketing research for various
clients when they ask (e.g. procedures for measuring
advertising effectiveness).
 Customized services: companies that tailor the research
procedures to best meet each clients.
 Internet services: companies that have specialized in
conducting marketing research on the Internet.
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Limited-service suppliers
 Field services: companies whose primary service is collecting data
for research projects.
 Coding and data entry services: companies whose primary service
is converting completed surveys of interviews into a usable
database for conducting statistical research.
 Analytical services: companies that provide guidance in the
development of the research design such as: designing and
pretesting questionnaires, determining the best means of data
collection, designing sampling plan.
 Data analysis services: firms whose primary service is to conduct
statistical analysis of quantitative data.
 Branded marketing research products: specialized data collection
and analysis of patented procedures that developed to address
specific types of research problems. These procedures are given
brand names and marketed like any other branded product. e.g.
Synovate’s TeleNation study.
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Top 15 U.S. Marketing Research Firms
U.S.
Rank
Organization
Headquarters
Website
2007
2006
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1
The Nielsen Co.
New York
nielsen.com
$2,173.0
$4,220.0
48.5%
2
2
IMS Health Inc.
Norwalk, Conn.
imshealth.com
801.0
2,192.6
63.5
3
3
Kantar Group*
Fairfield, Conn.
kantargroup.com
526.8
1,551.4
66.0
4
5
Westat Inc.
Rockville, MD
westat.com
467.8
467.8
—
5
4
IRI
Chicago
infores.com
441.0
702.0
37.2
6
6
TNS U.S.
New York
tnsglobal.com
379.8
2,137.2
82.2
7
7
Arbitron Inc.
New York
arbitron.com
338.5
352.1
3.9
8
8
GfK AG USA
Nuremberg, Germany
gfk.com
319.7
1,603.00
80.1
9
9
Ipsos
New York
ipsos-na.com
281.2
1,270.30
77.9
10
10
Synovate
London
synovate.com
250.4
867.0
71.1
11
11
Maritz Research
Fenton, Mo.
maritzresearch.com
187.4
223.3
16.1
12
13
J.D. Power and Associates*
Westlake Village,
Calif.
jdpower.com
184.5
260.5
29.2
13
12
Harris Interactive Inc.
Rochester, N.Y.
harrisinteractive.com
161.0
227.0
29.1
14
14
The NPD Group Inc.
Port Washington, N.Y.
npd.com
160.4
211.1
24.0
15
—
Opinion Research/
Guideline Group
Omaha, Neb.
infousa.com
124.7
206.7
39.7
Princeton, N.J.
opinionresearch.com
97.5
179.5
45.7
15
Opinion Research Corp.
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U.S.
Global
Non-U.S.
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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 in doing
marketing research?
 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 nontechnical expertise?
 Can they communicate well with the client?
Competitive bids should be compared on the basis of
quality as well as price.
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Sixth: Marketing Research Career
Vice President of Marketing Research
• Part of company’s top management team
• Directs company’s entire market research operation
• Sets goals & objectives of marketing research department
Research Director
• Also part of senior management
• Heads the development and execution
of all research projects
Assistant Director of Research
• Administrative assistant to research director
• Supervises research staff members
Senior Project Manager
• Responsible for design, implementation, & management
research projects.
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Selected Marketing Research Career Descriptions
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
• Handles details in execution of
project
• Designs & pretests questionnaires
• Conducts preliminary analysis of data
Junior Analyst
• Secondary data analysis
• Edits and codes questionnaires
• Conducts preliminary analysis of data
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Statistician/Data Processing
• Serves as expert on theory and
application on statistical techniques
• Oversees experimental design, data
processing, and analysis
Fieldwork Director
•Handles selection, training,
supervision, and evaluation of
interviewers and field workers
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A Sample of Marketing Research Jobs
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Preparation for a Career in Marketing Research
• Take all the marketing courses you can.
• Take courses in statistics and quantitative methods.
• Acquire Internet and computer skills.
• 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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Seventh: Questions for Revision
1. Explain The Role of Marketing Research in marketing decision
making.(Slide 4)
2. Describe the steps in marketing research process. (slides 11-12)
3. Describe, with examples, a classification of marketing
research. (slides 5-10)
4. What is the main difference between a full-service and a
limited-service research suppliers? (slides 13-16)
5. List 5 criteria for selecting an external marketing research
supplier. (slide 18)
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