1
4
Conducting
Marketing Research
Chapter Questions
What constitutes good marketing
research?
 What are good metrics for measuring
marketing productivity?
 How can marketers assess their return on
investment of marketing expenditures?
 How can companies more accurately
measure and forecast demand?

4-2
3-3
THE OUTCOMES






Budget: $90,000,000
Marketing cost: $4,000,000
Opening Weekend Gross
(Domestic): $70,251,710
Total Domestic Grosses:
$339,714,978
Total Overseas Grosses:
$524,911,000
Total Worldwide Grosses:
$864,625,978
3-4
How to get “the
inspiration” ?
3-5
The crews study
“everything” about fish
including spending 40
hours of studying fish
eye movement, and
hundreds of hours on the
behavior of fish :
THE NEMO
RESEARCH: How
can they make
FINDING NEMO
so lively?

fish are attentive to who they
interact with

they use senses other than vision
to find ’friends’

fish stick around with those who
are most like them

fish like others from the same
’neighborhood’
3-6
Marketing Research Defined
Systematic design, collection,
analysis, and reporting of data
and findings relevant to a specific
marketing situation facing a company.
4-7
Customers’ perception of values is
influenced by a lot of factors:
The economic, political,
social, natural, and
technological
The competitive
environment
The behavior of
the consumers
environments
MARKETING RESEARCH
4-8
Characteristics of Good
Marketing Research
 Scientific method
 Research creativity
 Multiple methods
 Interdependence
 Value and cost of information
 Healthy skepticism
 Ethical marketing
4-9
Who conduct marketing research?



Syndicated-service research firms
Custom marketing research firms
Specialty-line marketing research
firms
4-10
Table 4.4 Marketing Metrics
External
 Awareness
 Market share
 Relative price
 Number of complaints
 Customer satisfaction
 Distribution
 Total number of
customers
 Loyalty
Internal
 Awareness of goals
 Commitment to goals
 Active support
 Resource adequacy
 Staffing levels
 Desire to learn
 Willingness to change
 Freedom to fail
 Autonomy
4-11
Marketing Research provides information to the
organization for use in at least four areas:
1.
The generation of ideas for
marketing action, including the
identification of marketing problems
and opportunities.
2.
The comparison of performance
versus objectives.
3.
The development of general
understanding of marketing
phenomena and processes.
4.
The evaluation of marketing actions
4-12
Facts & Trends
(BPS, 2005 and Deka Research, 2006)
Measures of marketing demand:
- 4 million babies born per year
( = the market ).
- Family expenditure per baby per
month = Rp. 600.000,- (= the
potential market)
Increased health threats.
Higher expectation on kids’ future.
Increased number of working moms
(inadequate ASI)
↓
The available market
The target market: those
available market in major4-13
cities
Yamaha:

total market share = 36% (Honda
51%, Suzuki 12%).
Their Research says that out
of the Indonesian female
population of 50.3%, only
13% had driven a
motorcycle.
Therefore Mio was launch with the
technical specs specifically designed
for women.
- automatic
- light and slim (only 87 kg)
- trendy
- convenient brake, footstep, and
transmition
4-14
Estimating Future Demand
What do you think of the future demand of
automatic motorcycles?
Still promising….
HONDA VARIO and
Scoopy!
4-15

Research says that
young female
executives pursue
the same career as
their male
counterparts do, are
fond of physical
exercise (want to
perform
masculine/feminin
to replicate their
celebrity idols), and
with BIG
SPENDING!
(Marketing, 08/VI, August
2006)
4-16

Research says
that the young
generation pays
more attention
to health as
20% of stroke
sufferers are the
younger people
(FKUI, 2006).
4-17
INTERNATIONAL MARKETING RESEARCH:
International Missteps Caused by
Environmental Differences
Unilever was forced to withdraw
temporarily from one of its foreign
markets when it learned the hard way
that the French were not interested in
frozen foods.
An American manufacturer of cornflakes
tried to introduce its product in Japan but
failed miserably. Since the Japanese
were not interested in the general
concept of breakfast cereals, how would
the manufacturer expect them to
purchase cornflakes?
4-18

The Nike Air’s
fiasco in Saudi
Arabia
4-19
International Marketing Research:
“Don’t leave home without it”
4-20
Steps in Conducting a Marketing
Research
Defining the
problem and
research
objectives
Developing
research plan for
collecting
information
Implementing the
research plan –
collecting and
analyzing the
data
Interpreting
and reporting
the findings
4-21
Steps in conducting marketing research
DEFINING THE PROBLEM AND RESEARCH
OBJECTIVES.
The demographic, economic, and lifestyle
characteristics of the target consumers
Consumer-usage patterns
Attitudes/ Opinions towards the products
Forecast of sales
4-22
Steps in conducting marketing research
DEVELOPING THE RESEARCH PLAN
Determining specific information needs.
Examples:
The demographic, economic, and VALS characteristics of the
product current users (busy working couples value
convenience, islamic families prefer syariah products, etc).
Consumer-usage patterns.
Opinions/ response/ attitudes towards the product/services.
4-23
Steps in conducting marketing research
Data Collection techniques
Secondary:
Internal databases
Commercial databases
Online databases
Primary:
Observation
Interview (Individual interviews or FGD)
Experiments
Survey
4-24
The Uses of Observation

Basic approaches in data
collection: observe or
communicate

Is a scientific inquiry when
conducted to answer research
question, systematically
planned and executed, uses
proper control, and provides a
reliable and valid account of
what happened.

Includes non behavioral and
behavioral observation.
Observe only,
do not
communicate
4-25
Non behavioral Observation

Record analysis
Historical or current records
Public or private records
(E.g., financial records, economic data, content
analysis)

Physical Condition Analysis
Analysis of inventory condition
Store audits
Analysis of financial statements
Studies of plant safety.

Process or Activity Analysis
Time/ motion studies of manufacturing
processes
Analysis of traffic flows
Paperwork flows in an office
Financial flows in a banking system
4-26
Evaluation of the Observation Method

Appropriate for inarticulate
participants

Can collect original data
at the time they occur

Can secure information
that most participants
would ignore

Can capture the whole
event as it occurs in its
natural environment

Less intrusive
4-27
Focus Groups
INTERVIEWS: INDIVIDUAL OR GROUP OR FGD?
Trying to use stimulus materials to extract more data in interviews
4-29
INTEGRATIONS AND SOCIAL RELATIONS
Nonton acara TV yang paling banyak
dibicarakan: Extravaganza, The Bachelor,
Fear Factor dan Infotainment…
(Lia-Bertha-Yeshi…kompakan)
Kita nonton acara yang hampir-hampir
mirip, ya? Kecuali dia nih….yang lain
sendiri…..
(Komentar Lia dan Yeshi karena Bertha
menyatakan suka Metro TV)
4-30

IDEALIZED PERSONS AND PERSONALITY
Yang ditonton? Infotainment..dari pagi sampai
sore…..Insert, Cek dan Ricek, Kabar Idola,
dan itu lho..TV morfosis (yang nyrirtain
misalnya Reza dari dulunya waktu kecil
sampai sekarang) ……. (Lia, Bertha, Yeshi 2122 th dan juga Inge dan Yovita, 30-31 th)
Acaranya jadi bagus kalo presenternya
selebritis…….(Lia, 22 th)
4-31
Survey

A measurement process used to
collect information during a highly
structured interview.

Goal: to derive comparable data
across subsets of the chosen
sample so that similarities and
differences can be found.

When combined with statistical
probability sampling, survey findings
and conclusions are projectable to
large and diverse populations.

Advantages: versatile, less
expensive, less time needed to
collect data.
Mail
survey, computer-delivered, or intercept studies.
4-32
Steps in conducting marketing research
IMPLEMENTING THE RESEARCH
PLAN – COLLECTING AND
ANALYZING THE DATA.
INTERPRETING AND REPORTING
THE FINDINGS.
4-33
Research Objective:
SEGMENTATION, TARGETING,
POSITIONING strategies 
Product development.
MIO

The potential, available, and target
market.
Gender, Age, Income, Occupation

Their attitude towards traveling,
traveling on a motorcycle, riding a
motorcycle.
What do you think of a woman
traveling by their own
What do you think of a woman
riding a motorcycle?
What kind of motorcycle is suitable
for women?

Their traveling behavior
How often do you travel?
Mode of traveling.
4-34
Data to collect:
The interests of youngsters under 25 y.o.
CLEAR
Single/Youngsters who have interests in
celebrity, under 30 y.o, male/female,
Desires for populariry
Lifestyles, trendy, stylish, neat of
youngsters, all social classes
Daily usage of shampoo
Information to be collected?
Type of shampoo, hair, favorite artists,
price preference, usage frequency,
smells of shampoo.
Fave artists, type of shampoo, price
Willingness to meet/date with their idols,
effectiveness of the shampoo, market
responses towards the product.
The Questions in the questionnaire?
4-35
Constructing a Questionnaire
Determine the
information we want to
acquire.
Demographic characteristics
(gender, age, income,
education, occupation,
life cycle).
Develop questions
to obtain the
information
OPEN-END
CLOSE-END
Attitude/ Preference/
Opinions towards a
product/service.
Completely
Unstructured
Dichotomous
Behavior (frequency of
buying/consuming, etc).
Word
Association
Likert
Sentence/Story/
Picture
completion
Importance
Multiple Choice
Semantic differential
Likert
Rating scale
Intention-to-buy4-36
scale
INTERNATIONAL MARKETING RESEARCH:
International Missteps Caused by
Environmental Differences
Unilever was forced to withdraw
temporarily from one of its foreign
markets when it learned the hard way
that the French were not interested in
frozen foods.
An American manufacturer of cornflakes
tried to introduce its product in Japan but
failed miserably. Since the Japanese
were not interested in the general
concept of breakfast cereals, how would
the manufacturer expect them to
purchase cornflakes?
4-37

The Nike Air’s
fiasco in Saudi
Arabia
4-38
International Marketing Research:
“Don’t leave home without it”
4-39
Marketing Research provides information to the
organization for use in at least four areas:
1.
The generation of ideas for
marketing action, including the
identification of marketing problems
and opportunities.
2.
The comparison of performance
versus objectives.
3.
The development of general
understanding of marketing
phenomena and processes.
4.
The evaluation of marketing actions
4-40
Some Research Method Issues
Sampling Plan
Sampling unit: Who is to be surveyed?
 Sample size: How many people should be
surveyed?
 Sampling procedure: How should the
respondents be chosen?

4-42
Types of Samples
Probability
 Simple random
 Stratified random
 Cluster
Nonprobability
 Convenience
 Judgment
 Quota
4-43
Mechanical Devices
Galvanometers
 Tachistoscope
 Eye cameras
 Audiometers
 GPS

4-44
Contact Methods
Mail questionnaire
 Telephone interview
 Personal interview
 Online interview

4-45
Questionnaire Do’s and Don’ts
 Ensure
questions are
free of bias
 Make questions simple
 Make questions specific
 Avoid jargon
 Avoid sophisticated
words
 Avoid ambiguous words






Avoid negatives
Avoid hypotheticals
Avoid words that could
be misheard
Use response bands
Use mutually exclusive
categories
Allow for “other” in fixed
response questions
4-46
Question Types - Dichotomous
In arranging this trip, did you contact American
Airlines?
 Yes  No
4-47
Question Types – Multiple Choice
With whom are you traveling on this trip?
 No one
 Spouse
 Spouse and children
 Children only
 Business associates/friends/relatives
 An organized tour group
4-48
Question Types – Likert Scale
Indicate your level of agreement with the following
statement: Small airlines generally give better
service than large ones.
 Strongly disagree
 Disagree
 Neither agree nor disagree
 Agree
 Strongly agree
4-49
Question Types – Semantic Differential
American Airlines
Large ………………………………...…………….Small
Experienced………………….………….Inexperienced
Modern………………………..………….Old-fashioned
4-50
Question Types – Importance Scale
Airline food service is _____ to me.
 Extremely important
 Very important
 Somewhat important
 Not very important
 Not at all important
4-51
Question Types – Rating Scale
American Airlines’ food service is _____.
 Excellent
 Very good
 Good
 Fair
 Poor
4-52
Question Types –
Intention to Buy Scale
How likely are you to purchase tickets on American
Airlines if in-flight Internet access were available?
 Definitely buy
 Probably buy
 Not sure
 Probably not buy
 Definitely not buy
4-53
Question Types –
Completely Unstructured
What is your opinion of American Airlines?
4-54
Question Types – Word Association
What is the first word that comes to your mind
when you hear the following?
Airline ________________________
American _____________________
Travel ________________________
4-55
Question Types – Sentence Completion
When I choose an airline, the most important
consideration in my decision is:
________________________________________
________________________________________
________________________________________
________________________________________
________________________________________
________________________________________.
4-56
Question Types – Story Completion
“I flew American a few days ago. I noticed that the
exterior and interior of the plane had very bright
colors. This aroused in me the following thoughts
and feelings.” Now complete the story.
________________________________________
________________________________________
________________________________________
________________________________________
________________________________________
________________________________________
4-57
Question Types –
Picture (Empty Balloons)
4-58