Welcome to Marketing Research

Dr. Vinod Kumar

Marketing Research
Basics

Teaching Pedagogy
PPTs
Case Studies

Evaluation Components

Class Performance and Behavior 20 Marks

Group Project 20 Marks
Mid Term 20 Marks
End Term 40 Marks

Marketing Research Defined

The systematic and objective process of
generating information for aid in making
marketing decisions

Marketing Research Defined

The American Marketing Association defines marketing
research as follows:
Marketing research is the function which links the
consumer, customer, and public to the marketer through
informationinformation used to identify and define
marketing opportunities and problems; generate, refine,
and evaluate marketing actions; monitor marketing
performance; and improve understanding of marketing
as a process.

Why Do Marketing Research?

Make better marketing decisions
Understand consumers and the
marketplace
Find out what went wrong

Role of Marketing Research in

Managerial Decision Making
Situation
Analysis

Strategy
Development

Understand the environment and the market

Identify threats and opportunities
Assess the competitive position
Define the business scope and
market segments served
Establish competitive advantages

Set performance objectives

Marketing
Program
Development

Product and channel decision

Communication decisions
Pricing
Personal selling decisions

Implementation

Performance monitoring
Refining strategies and program

http://www.drvkumar.com/mr10/

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.

Problem Solving Research

Research undertaken to help solve specific marketing
problems.

Research by
Type of
Marketing Mix
Decision

11

Outcomes of Research
Is research relevant to a real
management problem?

YES
Does the
research follow
scientific
methods?

NO

YES

1. Results are
relevant and
believable.

2. Results are
believable, but
not relevant.

NO

3. Results are
4. Results are
relevant, but not neither relevant
believable.
nor believable.

Value Should Exceed

Estimated Costs
Costs

Value
Decreased uncertainty
Increased likelihood of
a correct decision
Improved marketing
performance and resulting
higher profits

Research expenditures
Delay of marketing
decision and possible
disclosure of
information to rivals
Unclear research
results

P&G Luring Women with their

Feminine Toothpaste

P&G has came out with Rejuvenating Effects a gender specific toothpaste
targeting the female customers, who do 82% of the grocery shopping.

The flavor and package of the product was decided on the basis of the results

from a customer survey filled out by women.

Though the product is priced slightly higher than the other brands P&G hopes
to make women think about the toothpaste in the same light as skin care
lotions and shampoo.

http://www.drvkumar.com/mr10/

18
Marketing Research 10th Edition

Harley Davidson Exploring New Markets

Problem: Flat domestic sales

Solution:
In 1999, Harley-Davidson started a rental program which provided a way to hook
customers on riding and thereby entice them into buying a motorcycle.
40 percent of those enrolled in the program were female and about 30 percent were
under the age of 35

Result:
Motorcycles rented went up from 401 days in 1999 to a total of 224,134 days worldwide
in 2004.
32 percent of rental customers surveyed bought a bike or placed an order after renting,
another 37 percent were planning to buy one within a year.

Nearly half of the renters spent more than $100 on Harley-Davidson accessories, such as
T-shirts and gloves.

http://www.drvkumar.com/mr10/

19
Marketing Research 10th Edition

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

Problem Definition
Indication of specific marketing decision area
that will be clarified by answering some
research questions

The formulation of the problem is often more

essential than its solution.
- Albert Einstein

The Iceberg Principle

The dangerous part of many marketing problems
is neither visible to nor understood by many
marketing managers.
Submerged parts of the problem must be
understood and including in the research design
for the research to be useful.

Symptoms Can Be Confusing

Symptoms vs. Problems

Microbrewery
Symptom
Consumers prefer the taste of competitors
brand
PD based on the Symptom
What type of reformulated taste is needed?
True Problem
Old-fashioned package influenced taste
perception

Symptoms vs. Problems

Manufacturer of palm-size computers with
Internet access
Symptom
Distributors complain prices are too high

PD based on the Symptom

Investigate business users to learn how much
prices need to be reduced

True Problem
Distributors do not have adequate product
knowledge to communicate products value

Management Decision Problems vs.

Marketing Research Problems
Management Decision
Problems
Ask what the decision
maker needs to do
Action oriented
Focus on symptoms

Marketing Research
Problems
Ask what information is
needed and how it
should be obtained
Information oriented
Focus on the underlying
causes

Common
Errors

Problem Definition is
too Broad
Does Not Provide
Guidelines for
Subsequent Steps
e.g., Improving the
Companys Image

Problem Definition
is too Narrow
May Miss Some
Important Components
of the Problem
e.g. Changing Prices in
Response to a
Competitors Price
Change.

Management Decision Problems vs.

Marketing Research Problems
The management problem is concerned with the
decision maker and is action oriented in nature.
For example, the management problem offers a
psychological pricing to enhance the quantum of
sales. This management problem focuses on the
symptoms.
Research problem is somewhat information
oriented and focuses mainly on the causes and not
on the symptoms. This is to determine the
consumers opinion on psychological pricing and to
estimate
their
purchase
behavior
for
the
psychological price being offered.

Translating Problems into Research

Problems (Questions)
Marketing Problem
Determine the best ways the firm can communicate with
potential purchasers of laptop computers
Research Questions
How familiar are consumers with the various brands of
computers?
What attitudes do consumers have toward these brands?
How important are the various factors for evaluating the
purchase of a laptop computer?
How effective are the communications efforts of the
various competitive marketers in terms of message
recognition?

Bad vs. Good Research Questions

Bad research question
Is advertising copy X better than advertising copy
Y?

Good research question

Which advertising copy has a higher day-after
recall score?

Approach to a Problem
For example, to estimate the buying
intentions for a particular product, first, the
researcher has to prepare a theoretical model
to measure an attitude like buying intentions.
Factors affecting buying intention?
How buying intention can be measured?

Theoretical model to measure the

buying intention

Framing Hypothesis
Hypothesis 1: Brand image has a significant
liner impact on the buying intention.
Hypothesis 2: Brand awareness has a significant
liner impact on the buying intention.
Hypothesis 3: Price has a significant liner
impact on the buying intention.
Hypothesis 4: Availability has a significant liner
impact on the buying intention.
Hypothesis 5: After-sales services has a
significant liner impact on the buying intention.

Broad Classification of Research

Designs