Marketing Research: An Overview

1
Marketing Research An Overview

• Dr.Nirundon Tapachai

2
Chapter Outline

• Overview
• 2) Definition of Marketing Research
• 3) A Classification of Marketing Research
• 4) Marketing Research Process
• 5) The Nature of Marketing Research
• 6) Scientific method in Research

3
What is Research ?

• Research is simply the process of thoroughly
  studying and analysing the situational factors
  surrounding a problem in order to seek out
  solutions to it.

4
Philosophical Bases

• Positivist Research
• Interpretivist Research
• Critical Research

5
Positivist Research

• Uses precise, objective measures and is usually
  associated with quantitative data
• Researcher remains separate from the subjects and
  uses deductive reasoning

6
Interpretivist Research

• Believes that people experience physical and
  social reality in different ways
• Reality is socially constructed
• Researcher becomes fully involved with individual
  subjects

7
Critical Research

• Empower people to create a better world
• Uncovering and going beyond surface illusions
• Uncover myths and hidden meanings

8
Types of Business Research

• Applied done with the intention of applying
  results to specific problems in the business
• Basic to enhance the understanding of problems
  that commonly occur across a range of
  organisations

9
Approaches to Research

• Quantitative research
• Qualitative research
• Deduction
• Induction

10
Deductive and Inductive Reasoning in Business
Research
Insert figure 2.1
11
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

12
Redefining Marketing Research
Information
13
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.

14
Market Research

• Specifies the information necessary to address
  these issues
• Manages and implements the data collection
  process
• Analyzes the results
• Communicates the findings and their implications

15
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.

16
A Classification of Marketing Research
Marketing Research
17
Problem Solving Research
18
Problem Solving Research
19
Problem Solving Research
20
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

21
The Role of Marketing Research
22
Scientific Investigation and the Research Process
23
Sources of Knowledge

• Empiricists attempt to describe, explain, and
  make predictions through observation
• Rationalists believe all knowledge can be deduced
  from known laws or basic truths of nature

24
The Hallmarks of Scientific Research

• Purposiveness
• Rigour
• Testability
• Replicability

25
The Hallmarks of Scientific Research (cont.)

• Accuracy
• Objectivity
• Generalisability
• Parsimony

26
Limitations to Scientific Research in Marketing

• Difficulties in measurement and collection of
  data
• Obtaining a representative sample

27
When is marketing research not needed?

• The information is already available.
• Decisions must be made now.
• We cant afford research.
• Costs outweigh the value of marketing research.

28

• Case 1
• To Acquire or Not to Acquire That is the
  Question
• Companies are much interested in acquiring other
  firms even when the latter operate in totally
  unrelated realms of business. For example,
  Gencore Industries manufacturing asphalt plants
  for road construction acquired Ingersoll-Rand in
  1996, and later acquired yet another company
  engaged in the business of food processing. Such
  acquisitions are claimed to work miracles.
  However, given the volatility of the stock market
  and the slowing down of business, many companies
  are not sure whether such acquisitions are
  becoming too risky. At the same time, they also
  wonder if they are missing out on a great
  business opportunity if they fail to engage in
  this activity. Some research is needed here!
• What kind of research needed for this situation ?

29

• Case 2 The Friendly Telephone Company
• Customer complaints were mounting, and letters of
  complaint regarding the problems they experienced
  with the residential telephones lines were
  constantly pouring in at the Friendly Telephone
  Company. The company wanted to pinpoint the
  specific problems and take corrective action.
• Researchers were called in, and they spoke to a
  number of customers, noting down the nature of
  the specific problems they faced. Since the
  problem had to be attended to very quickly, they
  developed a theoretical base, collected relevant
  detailed information from a sample of 100
  customers, and analyzed the data. The results are
  expected to be fairly accurate with at least an
  85 chance of success in problem solving. The
  researchers will make recommendations to the
  company based on the results of data analysis.
• Is this Scientific Research ?

30
Some Basic Definitions

• Observations perceptions of reality and can be
  expressed in the form of facts or opinions
• Concepts an idea expressed as a symbol or in
  words
• Constructs abstract representation of a
  phenomenon