1. Introduction to Marketing Research and its Role in a Firm
Ovais IMSciences
January 16, 2014
Lectures 1
Introduction to Marketing Research and its Role in a Firm
Reference: Zikmund, Chapter 1

2. Chapter Outline
1) Overview of Marketing Management 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

3. What is Marketing?
The process by which companies create, communicate and deliver superior value for the target customers in order to get value in return.

4. What is Marketing Management?
Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.

5. Marketing is about;

6. Marketing Manager’s tasks and Research
Developing marketing strategies
Capturing marketing insights
Connecting with customers
Building strong BRANDS
Shaping market offerings
Delivering value
Communicating value
Creating long-term growth

7. Defining Research
The systematic investigation into and study of materials and sources in order to establish new facts and reach new conclusions
Research is defined as the creation of new knowledge and/or the use of existing knowledge in a new and creative way so as to generate new concepts, methodologies and understandings. 

8. Marketing research
Marketing research links the consumer, customer and public to the marketer through information which is used to identify and define marketing opportunities and problems; to generate, refine and evaluate marketing actions; and to improve understanding of marketing as a process and of the ways in which specific marketing activities can be made more effective.

9. WHAT IS MARKETING RESEARCH?
1. A systematic and objective process of generating information to aid in marketing decisions (Zikmund 8e, p. 3)
2. The application of the scientific method in searching for the truth about marketing phenomena Zikmund & Babin 9e, p. 3)
What keywords can be identified from these definitions?

10. THE KEY WORDS From Zikmund 8e, the key words are: Information Process
Systematic
Objective
Decisions
From Zikmund & Babin 9e, they are:
Scientific method
Truth
Marketing phenomena

11. The Key Words Information – Decisions –
The primary function of marketing research (MR) is to provide information, not just to collect data.
Thus the MR function is also responsible for analyzing data collected, interpreting results, drawing conclusions, making recommendations, and communicating these to the decision maker.
Decisions –
MR is usually conducted not just for the sake of doing research, but because the results will be used in decision making.
Research helps the decision-maker by reducing the risk of making a wrong decision.

12. The Key Words
Process –
MR is a process consisting of distinct activity stages
Decisions have to be made in each stage
Systematic –
MR should be conducted systematically (i.e. in an orderly manner) NOT haphazardly (or in a disorganized manner)
Objectivity –
MR should conducted objectively (i.e. without bias from the person doing the research) NOT subjectively (i.e. with the results depending on who is doing the research)

13. The Key Words 6) The Scientific Method
The scientific method is defined as the methods, techniques, and procedures used to ensure that research is conducted in a systematic and objective manner.
Thus “science” is not only about mixing chemicals and observing what happens; it is about being systematic and objective in trying to arrive at the truth about a phenomenon
7) Truth
Also referred to as “objective reality”
Facilitated by systematicity and objectivity in scientific inquiry
8) Marketing Phenomena
What distinguishes “marketing research” from other “social science research”

14. 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

15. CLASSIFICATION OF MARKETING RESEARCH
There are several ways of classifying mkt research:
By application of research results
basic vs applied research
By focal research design
exploratory, descriptive, or causal research
By type of data collected
qualitative or quantitative research
By locus of problem
problem identification or problem solving research,

16. 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.

17. A Classification of Marketing Research
Fig 1.1
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
Promotion Research
Distribution Research

18. Problem Solving Research
Table 1.1
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
SEGMENTATION RESEARCH
Test concept
Determine optimal product design
Package tests
Product modification
Brand positioning and repositioning
Test marketing
PRODUCT RESEARCH

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

20. 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

21. 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

22. The Role of Marketing Research
Customer Groups
Employees
Shareholders
Suppliers
Consumers
Uncontrollable
Environmental
Factors
Economy
Technology
Laws & Regulations
Social & Cultural Factors
Political Factors
Controllable
Marketing
Product
Pricing
Promotion
Distribution
Variables
Marketing
Research
Marketing
Decision
Making
Providing
Information
Assessing
Needs
Marketing Managers
Market Segmentation
Performance & Control
Target Market Selection
Marketing Programs

23. Marketing Research Suppliers & Services
Fig 1.3
LIMITED SERVICE
Branded
Products
and Services
Data
Analysis
Services
Analytical
Coding and
Data Entry
Field
FULL SERVICE
Syndicate
Standardized
Customized
Internet
RESEARCH
SUPPLIERS
EXTERNAL
INTERNAL

25. Management Information Systems vs. Decision Support Systems
DSS
MIS
Structured Problems
Use of Reports
Rigid Structure
Information Displaying Restricted
Can Improve Decision Making by Clarifying Data
Unstructured Problems
Use of Models
User Friendly Interaction
Adaptability
Can Improve Decision Making by Using “What if” Analysis

26. Marketing Research Associations Online
Domestic
AAPOR: American Association for Public Opinion Research (
AMA: American Marketing Association (
ARF: The Advertising Research Foundation (
CASRO: The Council of American Survey Research Organizations (
MRA: Marketing Research Association (
QRCA: Qualitative Research Consultants Association (
RIC: Research Industry Coalition ( industry.org)

27. Marketing Research Associations Online
International
ESOMAR: European Society for Opinion and Marketing Research (
MRS: The Market Research Society (UK) (
MRSA: The Market Research Society of Australia (
PMRS: The Professional Marketing Research Society (Canada) (
And others IMS, Gallop. Neilson etc