MAkkL1ING LAN MAkkL1 kLSLAkCn AND MAkkL1 kCCSAL

hLLp//wwwzalnbookscom/books/markeLlng/prlnclplesofmarkeLlng_14_markeLlngresearchprocesshLml

A 1nL MAkkL1ING kLSLAkCn kCCLSS
a Market|ng kesearch an Introduct|on
Lvery markeLer needs markeLlng research and mosL large companles have Lhelr own markeLlng
research deparLmenLs MarkeLlng research lnvolves a foursLep process 1he flrsL sLep conslsLs of Lhe manager
and researcher carefully deflnlng Lhe problem and seLLlng Lhe research ob[ecLlves 1he ob[ecLlve may be
exploraLory descrlpLlve or causal 1he second sLep conslsLs of developlng Lhe research plan for collecLlng daLa
from prlmary and secondary sources rlmary daLa collecLlon calls for chooslng a research approach
(observaLlon survey experlmenL) chooslng a conLacL meLhod (mall Lelephone personal) deslgnlng a
sampllng plan (whom Lo survey how many Lo survey and how Lo choose Lhem) and developlng research
lnsLrumenLs (quesLlonnalre mechanlcal) 1he Lhlrd sLep conslsLs of lmplemenLlng Lhe markeLlng research plan
by collecLlng processlng and analyzlng Lhe lnformaLlon 1he fourLh sLep conslsLs of lnLerpreLlng and reporLlng
Lhe flndlngs lurLher lnformaLlon analysls helps markeLlng managers Lo apply Lhe lnformaLlon and provldes
advanced sLaLlsLlcal procedures and models Lo develop more rlgorous flndlngs from Lhe lnformaLlon Some
markeLers face speclal markeLlng research conslderaLlons such as conducLlng research ln smallbuslness non
proflL or lnLernaLlonal slLuaLlons MarkeLlng research can be conducLed
effecLlvely by small organlzaLlons wlLh small budgeLs lnLernaLlonal markeLlng researchers follow Lhe same
sLeps as domesLlc researchers buL ofLen face more challenglng problems All organlzaLlons need Lo undersLand
Lhe ma[or publlc pollcy and eLhlcs lssues surroundlng markeLlng research

b Uses App||cat|on of kesearch |n Market|ng
ueclslonmaklng ls cruclal process ln all Lypes of Lhe organlzaLlon 1hls declslonmaklng requlres Lhen
lnformaLlon LhaL ls collecLed and acqulred Lhrough Lhe markeLlng research process Lhls lnformaLlon can be
regardlng cusLomers companles or compeLlLor or Lhe oLher envlronmenLal facLors Ma[or uses of Lhe
markeLlng research ln Lhe organlzaLlons are as followlng
MeasuremenL of markeL poLenLlal
Analysls of markeL share
ueLermlnaLlon of markeL characLerlsLlcs
Sales analysls
roducL LesLlng
lorecasLlng
SLudles of buslness Lrends
SLudles of compeLlLors producLs

c 1nL MAkkL1ING kLSLAkCn kCCLSS
efore researcher can provlde managers wlLh lnformaLlon Lhey musL
know whaL klnd of problem Lhe manager wlshes Lo solve MarkeLlng
research process has followlng sLeps
1 ueflnlng Lhe problem and research ob[ecLlves
2 ueveloplng Lhe research plan
3 lmplemenLlng Lhe research plan and
4 lnLerpreLlng and reporLlng Lhe flndlngs
now we wlll dlscuss Lhese sLeps ln deLall

Step 1 Def|n|ng the rob|em and kesearch Cb[ect|ves
1he markeLlng manager and Lhe researcher musL work closely LogeLher Lo deflne Lhe problem carefully and
agree on Lhe research ob[ecLlves MarkeLlng managers musL know enough abouL markeLlng research Lo help ln
Lhe plannlng and Lo lnLerpreL research resulLs ueflnlng Lhe problem and research ob[ecLlves ls ofLen Lhe
hardesL sLep ln Lhe process AfLer Lhe problem has been deflned carefully Lhe manager and researcher musL
seL Lhe research ob[ecLlves 1he Lhree general Lypes of ob[ecLlves are

1) Lxp|oratory research where Lhe ob[ecLlve ls Lo gaLher prellmlnary lnformaLlon LhaL
wlll help Lo beLLer deflne problems and suggesL hypoLheses for Lhelr soluLlon
2) Descr|pt|ve research ls where Lhe lnLenL ls Lo descrlbe Lhlngs such as Lhe markeL
poLenLlal for a producL or Lhe demographlcs and aLLlLudes of cusLomers who buy Lhe producL
3) Casua| research ls research Lo LesL hypoLheses abouL causeandeffecL relaLlonshlps
1he sLaLemenL of Lhe problem and research ob[ecLlves wlll gulde Lhe enLlre research process lL ls always besL
Lo puL Lhe problem and research ob[ecLlves sLaLemenLs ln wrlLlng so agreemenL can be reached and everyone
knows Lhe dlrecLlon of Lhe research efforL

Step 2 Deve|op|ng the kesearch |an
ln developlng Lhe research plan Lhe aLLempL ls Lo deLermlne Lhe lnformaLlon needed (ouLllne sources of
secondary daLa) develop a plan for gaLherlng lL efflclenLly and presenLlng Lhe plan Lo markeLlng managemenL
1he plan spells ouL speclflc research approaches conLacL meLhods sampllng plans and lnsLrumenLs LhaL
researchers wlll use Lo gaLher new daLa 1he flrm should know whaL daLa already exlsLs before Lhe process of
collecLlng new daLa beglns 1he sLeps LhaL should be followed are ueveloplng Lhe research plan lnvolves all of
Lhe followlng

1) Determ|ne spec|f|c |nformat|on needs
ln Lhls sLep research ob[ecLlves are LranslaLed lnLo speclflc lnformaLlon needs lor example deLermlne Lhe
demographlc economlc and llfesLyle characLerlsLlcs of a LargeL audlence

2) Gather|ng secondary |nformat|on
a) Secondary data ls lnformaLlon LhaL already exlsLs somewhere havlng been
collecLed for anoLher purpose Sources of secondary daLa lnclude boLh lnLernal and exLernal sources
Companles can buy secondary daLa reporLs from ouLslde suppllers (le commerclal daLa sources)
lnformaLlon can be obLalned by uslng commerclal onllne daLabases Lxamples lnclude
CompuServe ulalog and Lexlsnexus Many of Lhese sources are free
AdvanLages of secondary daLa lnclude
1 lL can usually be obLalned more qulckly and aL a lower cosL Lhan prlmary daLa
2 SomeLlmes daLa can be provlded LhaL an lndlvldual company could noL collecL on lLs own

Some problems wlLh collecLlng secondary daLa lnclude
1 1he needed lnformaLlon mlghL noL exlsL
2 Lven lf Lhe daLa ls found lL mlghL noL be useable
3 1he researcher musL evaluaLe secondary lnformaLlon Lo make cerLaln lL ls relevanL
accuraLe currenL and lmparLlal Secondary daLa ls a good sLarLlng polnL however Lhe company wlll ofLen
have Lo collecL prlmary daLa
b) rlmary data ls lnformaLlon collecLed for Lhe speclflc purpose aL hand

|ann|ng r|mary Data Co||ect|on
A plan for prlmary daLa collecLlon calls for a number of declslons on research approaches conLacL meLhods
sampllng plans and research lnsLrumenLs
kesearch Approaches
a) 8esearch approaches can be llsLed as

1 Cbservat|ona| research
where lnformaLlon ls galned by observlng relevanL people acLlons and slLuaLlons Powever some Lhlngs such
as feellngs aLLlLudes moLlves and prlvaLe behavlor cannoL be observed Mechanlcal observaLlon can be
obLalned Lhrough slngle source daLa sysLems 1hls ls where elecLronlc monlLorlng sysLems llnk consumers'
exposure Lo Lelevlslon adverLlslng and promoLlon (measured uslng Lelevlslon meLers) wlLh whaL Lhey
buy ln sLores (measured uslng sLore checkouL scanners) CbservaLlonal research can be used Lo obLaln
lnformaLlon LhaL people are unwllllng or unable Lo provlde

2 Survey research
ls Lhe gaLherlng of prlmary daLa by asklng people quesLlons
abouL Lhelr knowledge aLLlLudes preferences and buylng behavlor Survey research ls besL sulLed
for gaLherlng descr|pt|ve lnformaLlon Survey research ls Lhe mosL wldely used form of prlmary
daLa collecLlon 1he ma[or advanLage of Lhls approach ls flexlblllLy whlle Lhe dlsadvanLages lnclude
Lhe respondenL belng unwllllng Lo respond glvlng lnaccuraLe answers or unwllllng Lo spend Lhe
Llme Lo answer
3 Lxper|menta| research
lnvolves Lhe gaLherlng of prlmary daLa by selecLlng
maLched groups of sub[ecLs glvlng Lhem dlfferenL LreaLmenLs conLrolllng relaLed facLors and
checklng for dlfferences lngroup responses 1hls form of research Lrles Lo explaln causeandeffecL
relaLlonshlps CbservaLlon and surveys may be used Lo collecL lnformaLlon ln experlmenLal
research 1hls form ls besL used for causa| lnformaLlon
ln lasL Lesson we dlscussed Lhe markeLlng research process flrsL Lwo sLeps were dlscussed ln LhaL
Lesson Loday we wlll conLlnue Lhe same Loplc and wlll be dlscusslng Lhe remalnlng sLeps of Lhe
markeLlng research process Second Loplc of Loday's Lesson ls an lnLroducLlon Lo Lhe consumer
behavlor
So our Loday's Loplcs are
A 1nL MAkkL1ING kLSLAkCn kCCLSS (Cont|nued)
8 CCNSUMLk MAkkL1
Contact Methods
Ma|| quest|onna|resused Lo collecL large amounLs of lnformaLlon aL a low cosL
1e|ephone |nterv|ew|nggood meLhod for collecLlng lnformaLlon qulckly
ersona| |nterv|ew|ng (whlch can be elLher |nd|v|dua| or group |nterv|ew|ng)
A form of personal lnLervlewlng ls focus group lnLervlewlng" locusgroup lnLervlewlng conslsLs of
lnvlLlng slx Lo Len people Lo gaLher for a few hours wlLh a Lralned lnLervlewer Lo Lalk abouL a
producL servlce or organlzaLlon 1he lnLervlewer focuses" Lhe group dlscusslon on lmporLanL
lssues
Cnllne (lnLerneL) markeLlng research can conslsL of Internet surveys or on||ne focus groups Many
experLs predlcL LhaL onllne research wlll soon be Lhe prlmary Lool of markeLlng researchers
Computer |nterv|ew|ng ls a new meLhod belng used ln Lhe Lechnology age Consumers read
quesLlons from a compuLer screen and respond
Sampllng plans are used Lo ouLllne how samples wlll be consLrucLed and used
1 A sample ls a segmenL of Lhe populaLlon selecLed for markeLlng research Lo represenL Lhe populaLlon as a
whole
2 MarkeLlng researchers usually draw concluslons abouL large groups of consumers by
sLudylng a small sample of Lhe LoLal consumer populaLlon
3 ueslgnlng a sample calls for Lhree declslons
a Jho ls Lo be surveyed (whaL samp||ng un|t)?
b now many people should be surveyed (whaL samp|e s|ze)?
c now should Lhe sample be chosen (whaL samp||ng procedure)?
4 klnds of samples lncludea robab|||ty samp|eseach populaLlon member has a known chance of belng
lncluded ln Lhe sample and researchers can calculaLe confldence llmlLs for sampllng
error
b Nonprobab|||ty samp|essampllng error cannoL be measured
kesearch Instrumentsln collecLlng prlmary daLa markeLlng researchers have a cholce of Lwo maln research
lnsLrumenLsLhe quest|onna|re and mechan|ca| dev|ces 1he quesLlonnalre ls by far Lhe mosL common
lnsLrumenL wheLher admlnlsLered ln person by phone or onllne CuesLlonnalres are very flexlbleLhere are
many ways Lo ask quesLlons Powever Lhey musL be developed carefully and LesLed before Lhey can be used
on a large scale A carelessly prepared quesLlonnalre usually conLalns several errors

Step 3 Imp|ement|ng the kesearch |an
1he researcher nexL puLs Lhe markeLlng research plan lnLo acLlon 1hls lnvolves collecLlng processlng and
analyzlng Lhe lnformaLlon uaLa collecLlon can be carrled ouL by Lhe companys markeLlng research sLaff or by
ouLslde flrms 1he company keeps more conLrol over Lhe collecLlon process and daLa quallLy by uslng lLs own
sLaff Powever ouLslde flrms LhaL speclallze ln daLa collecLlon ofLen can do Lhe [ob more qulckly and aL a lower
cosL 1he daLa collecLlon phase of Lhe markeLlng research process ls generally Lhe mosL expenslve and Lhe
mosL sub[ecL Lo error 1he researcher should waLch fleldwork closely Lo make sure LhaL Lhe plan ls
lmplemenLed correcLly and Lo guard agalnsL problems wlLh conLacLlng respondenLs wlLh respondenLs who
refuse Lo cooperaLe or who glve blased or dlshonesL answers and wlLh lnLervlewers who make mlsLakes or
Lake shorLcuLs

Step 4 Interpret|ng and keport|ng the I|nd|ngs
1he flnal sLep ln Lhe markeLlng research process ls |nterpret|ng and report|ng the f|nd|ngs 1he researchers
should keep from overwhelmlng managers wlLh numbers and fancy sLaLlsLlcal Lechnlques 8esearchers should
presenL lmporLanL flndlngs LhaL are useful ln Lhe ma[or declslons faced by managemenL lnLerpreLaLlon should
noL be lefL only Lo researchers MarkeLlng managers wlll also have lmporLanL lnslghLs lnLo Lhe problems
lnLerpreLaLlon ls an lmporLanL phase of Lhe markeLlng process 1he besL research ls meanlngless lf Lhe
manager bllndly accepLs wrong lnLerpreLaLlons from Lhe researcher 1he researcher musL now lnLerpreL Lhe
flndlngs draw concluslons and reporL Lhem Lo managemenL 1he researcher should noL Lry Lo overwhelm
managers wlLh numbers and fancy sLaLlsLlcal Lechnlques 8aLher Lhe researcher should presenL lmporLanL
flndlngs LhaL are useful ln Lhe ma[or declslons faced by managemenL Powever lnLerpreLaLlon should noL be
lefL only Lo Lhe researchers 1hey are ofLen experLs ln research deslgn and sLaLlsLlcs buL Lhe markeLlng
manager knows more abouL Lhe problem and Lhe declslons LhaL musL be made

ln many cases flndlngs can be lnLerpreLed ln dlfferenL ways and dlscusslons beLween researchers and
managers wlll help polnL Lo Lhe besL lnLerpreLaLlons 1he manager wlll also wanL Lo check LhaL Lhe research
pro[ecL was carrled ouL properly and LhaL all Lhenecessary analysls was compleLed Cr afLer seelng Lhe
flndlngs Lhe manager may have addlLlonal quesLlons LhaL can be answered Lhrough furLher slfLlng of Lhe daLa
llnally Lhe manager ls Lhe one who ulLlmaLely musL declde whaL acLlon Lhe research suggesLs 1he
researchers may even make Lhe daLa dlrecLly avallable Lo markeLlng managers so LhaL Lhey can perform new
analyses and LesL new relaLlonshlps on Lhelr own lnLerpreLaLlon ls an lmporLanL phase of Lhe markeLlng
process 1he besL research ls meanlngless lf Lhe manager bllndly accepLs faulLy lnLerpreLaLlons from Lhe
researcher Slmllarly managers may be blasedLhey mlghL Lend Lo accepL research resulLs LhaL show whaL
Lhey expecLed and Lo re[ecL Lhose LhaL Lhey dld noL expecL or hope for 1hus managers and researchers musL
work LogeLher closely when lnLerpreLlng research resulLs and boLh musL share responslblllLy for Lhe research
process and resulLlng declslons

A Consumer Market
a Def|n|ng Consumer Market
All lndlvlduals and households who buy or acqulre goods and servlces for personal consumpLlon are Lermed as
consumers MarkeLs have Lo be undersLood before markeLlng sLraLegles can be developed eople uslng
consumer markeLs buy goods and servlces for personal consumpLlon Consumers vary Lremendously ln age
lncome educaLlon LasLes and oLher facLors coosomet bebovlot ls lnfluenced by Lhe buyers characLerlsLlcs
and by Lhe buyers declslon process 8oyet cbotoctetlstlcslnclude four ma[or facLors culLural soclal personal
and psychologlcal

Consumer Markets
Consumer uylng ehavlor refers Lo Lhe buylng behavlor of flnal consumerslndlvlduals and households who
buy goods and servlces for personal consumpLlon 1he world consumer markeL conslsLs of more Lhan
blllloo people AL presenL growLh raLes Lhe world populaLlon wlll reach almosL 8 bllllon people by 2023
Consumers around Lhe world vary Lremendously ln age lncome educaLlon level and LasLes 1hey
also buy an lncredlble varleLy of goods and servlces Pow Lhese dlverse consumers connecL wlLh each oLher
and wlLh oLher elemenLs of Lhe world around Lhem lmpacLs Lhelr cholces among varlous producLs servlces
and companles Pere we examlne Lhe fasclnaLlng array of facLors LhaL affecL consumer behavlor

b Jhy to Study Consumer 8ehav|or
aslc ob[ecLlve of Lhe sLudylng consumer behavlor ls LhaL Lhe flrm needs Lo know who buys Lhelr producL?
Pow Lhey buy? When and where Lhey buy? Why Lhey buy? Pow Lhey respond Lo markeLlng sLlmull ecause
Lhey sLudy consumer behavlor (C) whaL Consumer ehavlor ls abouL? Pow why where and when
consumers make purchase declslons? Conslders who lnfluences Lhe declslons? WhaL ls Consumer ehavlor
abouL? All Lhese are lmporLanL quesLlons whlch are Lo be known Lo Lhe companles so LhaL Lhey can deslgn
and lmplemenL markeLlng sLraLegles Lo saLlsfy Lhe cusLomers Consumers deLermlne Lhe sales and proflLs of a
flrm by Lhelr purchase declslons Lhus Lhe economlc vlablllLy of Lhe flrm ln laLe 1990 uS consumers were
spendlng enough dollar bllls Lo sLreLch from Lhe LarLh Lo Lhe Sun and back wlLh enough lefL over for over 600
llnes Lo Lhe moon! Along wlLh Lhese quesLlons companles should also be knowlng some oLher facLors llke whaL
ls ulsposable lncome and whaL ls ulscreLlonary lncome whaL ls Lhe sLage of famlly llfe cycle sLage because
Lhese all Lhese facLors lnfluence Lhe consumer behavlors whlch are very lmporLanL Lo Lhe markeLers

c Consumer 8ehav|or
Consumer behavlor ls Lhe process Lhrough whlch Lhe ulLlmaLe buyer makes purchase declslons 1hls can be
deflned as Lhe processes lnvolved when lndlvlduals or groups selecL purchase use or dlspose of producLs
servlces ldeas or experlences Lo saLlsfy needs and deslres (Solomon 1996) 1hose acLlons dlrecLly lnvolved ln
obLalnlng consumlng and dlsposlng of producLs and servlces lncludlng Lhe declslon processes LhaL precede
and follow Lhose acLlons (Lngel eL al 1993) Consumer behavlor examlnes menLal and emoLlonal processes ln
addlLlon Lo Lhe physlcal acLlvlLles as by (Wllkle 1990)

d Market|ng App||cat|ons
Consumer behavlors plays lmporLanL role ln almosL all Lypes of declslons Lo be made ln markeLlng lor Lhe
reason belng LhaL all funcLlons performed ln markeLlng revolve around Lhe cusLomers and consumers Llke

os|t|on|ng
Arranglng for a producL Lo occupy a clear dlsLlncLlve and deslrable place relaLlve Lo compeLlng producLs ln Lhe
mlnds of LargeL consumers Some flrms flnd lL easy Lo choose Lhelr poslLlonlng sLraLegy lor example a flrm
well known for quallLy ln cerLaln segmenLs wlll go for Lhls poslLlon ln a new segmenL lf Lhere are enough
buyers seeklng quallLy uL ln many cases Lwo or more flrms wlll go afLer Lhe same poslLlon 1hen each
wlll have Lo flnd oLher ways Lo seL lLself aparL Lach flrm musL dlfferenLlaLe lLs offer by bulldlng a unlque
bundle of beneflLs LhaL appeals Lo a subsLanLlal group wlLhln Lhe segmenL 1he poslLlonlng Lask conslsLs of
Lhree sLeps ldenLlfylng a seL of posslble compeLlLlve advanLages upon whlch Lo bulld a poslLlon chooslng Lhe
rlghL compeLlLlve advanLages and selecLlng an overall poslLlonlng sLraLegy 1he company musL Lhen effecLlvely
communlcaLe and dellver Lhe chosen poslLlon Lo Lhe markeL

Segmentat|on
ulvldlng a markeL lnLo dlsLlncL groups of buyers on Lhe basls of needs characLerlsLlcs or behavlor who mlghL
requlre separaLe producLs or markeLlng mlxes MarkeL segmenLaLlon reveals Lhe flrms markeL segmenL
opporLunlLles 1he flrm now has Lo evaluaLe Lhe varlous segmenLs and declde how many and whlch ones Lo
LargeL We now look aL how companles evaluaLe and selecL LargeL segmenLs 1he company also needs Lo
examlne ma[or sLrucLural facLors LhaL affecL longrun segmenL aLLracLlveness lor example a segmenL ls less
aLLracLlve lf lL already conLalns many sLrong and aggresslve competltots 1he exlsLence of many acLual or
poLenLlal sobstltote
ptoJocts may llmlL prlces and Lhe proflLs LhaL can be earned ln a segmenL 1he relaLlve powet of boyets also
affecLs segmenL aLLracLlveness uyers wlLh sLrong bargalnlng power relaLlve Lo sellers wlll Lry Lo force prlces
down demand more servlces and seL compeLlLors agalnsL one anoLherall aL Lhe expense of seller
proflLablllLy llnally a segmenL may be less aLLracLlve lf lL conLalns powetfol soppllets who can conLrol prlces
or reduce Lhe quallLy or quanLlLy of ordered goods and servlces

roduct deve|opment
A sLraLegy for company growLh by offerlng modlfled or new producLs Lo currenL markeL segmenLs ueveloplng
Lhe producL concepL lnLo a physlcal producL ln order Lo ensure LhaL Lhe producL ldea can be Lurned lnLo a
workable producL
roduct deve|opment
offerlng modlfled or new producLs Lo currenL markeLs

Market deve|opment
A sLraLegy for company growLh by ldenLlfylng and developlng new markeL segmenLs for currenL company
producLs