MARKET RESEARCH

MODULE 1:
MARKET RESEARCH AS INPUT IN DECSION MAKING PROCESS
The task of marketing research (MR) is to provide management with relevant,
accurate, reliable, valid, and current information. Competitive marketing
environment and the ever-increasing costs attributed to poor decision making
require that marketing research provide sound information. Sound decisions are not
based on gut feeling, intuition, or even pure judgment.
Marketing managers make numerous strategic and tactical decisions in the process
of identifying and satisfying customer needs. They make decisions about potential
opportunities, target market selection, market segmentation, planning and
implementing marketing programs, marketing performance, and control. These
decisions are complicated by interactions between the controllable marketing
variables of product, pricing, promotion, and distribution. Further complications
are added by uncontrollable environmental factors such as general economic
conditions, technology, public policies and laws, political environment,
competition, and social and cultural changes. Another factor in this mix is the
complexity of consumers. Marketing research helps the marketing manager link
the marketing variables with the environment and the consumers. It helps remove
some of the uncertainty by providing relevant information about the marketing
variables, environment, and consumers. In the absence of relevant information,
consumers' response to marketing programs cannot be predicted reliably or
accurately. Ongoing marketing research programs provide information on
controllable and non-controllable factors and consumers; this information enhances
the effectiveness of decisions made by marketing managers.
Traditionally, marketing researchers were responsible for providing the relevant
information and marketing decisions were made by the managers. However, the
roles are changing and marketing researchers are becoming more involved in
decision making, whereas marketing managers are becoming more involved with
research. The role of marketing research in managerial decision making is
explained further using the framework of the "DECIDE" model:
The DECIDE model conceptualizes managerial decision making as a series of six
steps. The decision process begins by precisely defining the problem or
opportunity, along with the objectives and constraints. Next, the possible decision

factors that make up the alternative courses of action (controllable factors) and
uncertainties (uncontrollable factors) are enumerated. Then, relevant information
on the alternatives and possible outcomes is collected. The next step is to identify
and select the best alternative based on chosen criteria or measures of success.
Then a detailed plan to develop and implement the alternative selected is
developed and put into effect. Last, the outcome of the decision and the decision
process itself are evaluated.
What is the Role of Research? Managers and CEOs often want to base their brand
decision on measurable market research. So, how much market research should
you do? Research can never give you all the answers, but it can be effectively used
to understand how target audiences might receive a new idea, or to find a new
market opportunity
MARKET RESEARCH AND MARKETING INFORMATION SYSTEM
Marketing Research and Marketing Information Systems
Marketing Research is defined as:
the systematic design, collection, interpretation, and reporting of information not
currently available, to help marketing managers solve specific marketing problems
or take advantage of marketing opportunities.
In other words, marketing research is the process of defining a marketing problem
and opportunity, systematically collecting and analysing information, and
recommending actions to enhance an organisations marketing activities. It is the
function that links the consumer (customer) and public to the marketer through
information.
To supplement the process of marketing research, marketing managers make use of
a Marketing Information System (MIS). The Marketing Information System is a
framework for day-to-day management and structuring of information gathered
regularly from sources both inside and outside an organisation. MIS provides a
continuous flow of information considered relevant to marketing managers.
Two important sources of information are:

1. Internal records - for example invoices, consumer databases, inventory, etc.

2. Market intelligence or information - a regular information on market
development in the marketing environment.
The main focus of MIS is on managers information requirements i.e what
information is required and why; how it can be stored and retrieved; and the
framework for achieving these. Special attention is placed on expediting the flow
of information.
Both marketing research and MIS are measured by their ability to efficiently
improve a marketing managers ability to make decisions. The cost of carrying out
the marketing research must be weighed against the benefits derived. We must
evaluate the value of the information. It is also important for marketing managers
to approach the research in a logical manner, as the difference between good and
bad research depends on the quality of the inputs, amongst others.
To ensure appropriateness of marketing research, marketing managers should give
due consideration to the following:
* Research must be conducted in a systematic manner that involves a series of
steps and activites.
* Data may be retrieved from different sources and care has to be exercised in
selecting the most appropriate/reliable sources.
* Research may apply to any aspect of marketing (any of the marketing mix
variables, segmentation, targeting and positioning, consumer behaviour etc.) that
needs information for decision-making purposes.
* Findings or output of the research must be communicated and acted upon in the
most effective manner
Applications of Market Research

Pricing Research
We provide pricing strategy consulting backed by strong pricing research
capabilities. Our perspective is broad when dealing with pricing research and
pricing strategy decisions, and focus on finding for your business optimum priceproduct-feature configurations in the context of market positioning opportunities.
We employ both qualitative and quantitative pricing research tools.
Product Research
Product market research serves several goals: new product design and market
validation research, or assessing existing product strength and line extension
potential. We follow the product development cycle integrating research with
creative positioning and technical product design efforts.
Concept Testing
Concept testing research evaluates advertising concepts, ad theme concepts and
appeals, new product concepts, pricing, brand concepts, brand names, and
positioning strategy concepts. We select techniques -- qualitative and quantitative
-- to both develop concepts, refine, and screen to assess market potential.
Positioning Research
We offer experienced market positioning and creative branding research
capabilities to define and go-to-market with a high-impact positioning strategy.
First, it requires understanding the market positioning concept, your current and
potential markets, and the process needed to generate brand name impact.
Marketing Due Diligence
We support venture investment firms with primary and secondary marketing
research in a stand alone or component marketing due diligence study.
Customer Satisfaction Research

The buzz and interest around customer satisfaction research sometimes deflates if
the research design does not lead to actionable results. Also, customer expectations
generally rise overtime as advances in technology in many categories boost the
consumer consciousness of what to expect. We build into our customer satisfaction
study design "action indicators" to point to immediate use of customer satisfaction
results.
Branding Research
Branding decisions drive branding marketing research strategy. Corporate, product
and advertising brand development is a mix of creativity and marketing
information to uncover brand positioning opportunities in cluttered market spaces.
Brand Equity Research
Brand equity research measures the breadth and depth of brand power in your
target markets. We use both standard and custom tailored brand equity survey
measurements. A key to research design is the goal of a brand equity measurement
study.
Advertising Research
Advertising research design is determined by specific advertising goals and the
stage of ad development, or campaign. We use a broad range of advertising
research techniques including ad recall surveys, message and theme salience and
impact measures, buying motivation and association with the ad message or
positioning theme. We employ both qualitative and quantitative pricing research
tools.
Market Segmentation
Market segmentation research maintains focus and delivers needed marketing
information in today's moving economy where new markets and new product
categories emerge and traditional market segments fade away. Market
segmentation research is a way to keep 'your eye on the ball.' Often we start the

market segmentation process with qualitative research to the range and breadth of
customers. Then we follow with quantitative research using appropriate
multivariate analysis (cluster, k-means factor, etc) to define meaningful segments.
Sales Analysis
Data mining -- finding gems of insight from sophisticated or basic analysis of your
internal customer and sales and margin trend data -- is a key first step in product
and brand analysis. Simply put, a marketing analysis data mining effort searches
for meaning and insight among the stacks of sales data and marketing data already
within a sales and marketing organization. Through these tools we can better target
your best customers, find which advertising and promotion methods are most
efficient and effective.
PLANNING A RESEARCH PROJECT
1) Find an interesting topic
2) Think of a particular question-The most important thing in research is to
have a very specific question that you want to ask.
3) Search the literature-This is important because it will give you an idea of
what other people have researched on your topic and will give you ideas
about how to answer your own question.
It may enable you to form a hypothesis
4) How will you test your question-There are a number of methods you could
use:
Laboratory experiments
Observational exercises
Questionnaires
The method you use should help you to answer your question
5) Is what I am planning feasible-What time constraints do I have?
I have 2 days.
What equipment will I need?
LOTS of cats, somewhere to throw them off of, and cat food.
How expensive will it be?
How much does 100 tins of cat food
cost?
6) Is what I am planning ethical-Will my research contribute something
useful to society?

 Does my research involve any risk to myself or anyone else?

Is my research dangerous?
What do you think
7) Write a research protocol.- It is important to write down exactly what
you are planning to do and how you are planning to do it.
This is so that somebody else would be able to repeat your experiment, and
also so that you remember what you are supposed to be doing!
RESEARCH PROBLEM IDENTIFICATION AND FORMULATION

ResearchProblem:IdentificationandFormulation:MohdShoket
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Introduction
Research comprises creative work undertaken on a systematic basis in order to
increase the stock of knowledge, including knowledge of man, culture and society,
and the use of this stock of knowledge to devise new applications. Research
problems are questions that indicate gaps in the scope or the certainty of our
knowledge. They point either to problematic phenomena, observed events that are
puzzling in terms of our currently accepted ideas, or to problematic theories,
current ideas that are challenged by new hypotheses.
What is a research problem?

It is the topic we would like to address, investigate, or study, whether descriptively

or experimentally.

It is the focus or reason for engaging in our research.

It is typically a topic, phenomenon, or challenge that we are interested in and with

which we are at least somewhat familiar applications
Problem Formulation
Problem formulation is the logical first step toward this goal. As Northrop (1966)
writes, Inquiry starts only when something is unsatisfactory, when traditional
beliefs are inadequate or in question, when the facts necessary, to resolve ones

uncertainties are not known, when the most likely relevant hypotheses are not even
imagined. What one has at the beginning of the inquiry is merely the problem (p.
17). The formulation of research problems also has an important social function.
As Merton, Broom, and Cottrell (1959) suggest, researchers must justify the
demands for attention and other scarce resources that research makes: In
conferring upon the scientist the right to claim that a question deserves the
concerted attention of others as well as himself, the social institution of science
exacts the obligation that he justify the claim (p. xix). Achieving significant
research results is perhaps the most powerful justification for such claims, but this
type of justification can be offered only after the fact, and only in the event that the
research is successful. A compelling research problem, by contrast,
must marshal support in advance of
research
and, if it
is sufficiently compelling
, can even sustain that support through the sometimes fruitless periods that
researcher's experience. However, despite research problems logical priority in
inquiry, and their importance as a priori justification, a problem formulation, as
John Dewey stresses, is in fact a progressive matter.
The Role of Theory in Problem Formulation
Theory plays a dual role in research. 1.
On the one hand, new theories solve research problems by

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accounting for unexplained phenomena and by superseding questionable older
theories. 2.

On the other hand, existing theory guides researchers in formulating research

problems. In determining whether and in what respects a phenomenon or a theory
is problematic, researchers consider the context of accumulated theoretical as well
as empirical knowledge.
Sources of Research Problem

Classroom

School

Community

Own teaching experiences

Classroom lectures

Class discussions

Seminars/workshops/paper presentations

Internet

Out-of-class exchange of ideas with fellow students and professors

Reading assignment

Textbook

Special programme

Research reports

Term papers

Consultation with

Course instructor

Advisor

Faculty member
How is a research problem formed?
We often think we understand problems when we dont. For example, when
students encounter difficulties with word problems in math, teachers may initially
think that students have not mastered the basic skills that would allow them to
carry out the needed computations. However, the difficulty may actually lie in poor
reading skills, which prevent the students from identifying the words in math
problems. As another example, when students do not hand in homework
assignments or participate in class, some might be inclined to think that the
students are not moti-vated. While there may be motivational issues, motivation
may not be the only factor. A high school student may have an evening job that
demands considerable time and energy. A younger student may be trying
desperately to camouflage poor or nonexistent skills. In some cases, the chosen
instructional strategy may not be well matched to the students cognitive or
attention level. Therefore, it is crucial that researchers accurately identify the
problem they want to study
Formulating the Problem
The selection of one appropriate researchable problem out of the identified
problems requires evaluation of those alternatives against certain criteria, which
may be grouped into:
Internal Criteria

Internal Criteria consists of:

1.
Researchers interest:
The problem should interest the researcher and be a challenge to him. Without
interest and curiosity, he may not develop sustained

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perseverance Interest in a problem depends upon the researchers educational

background, experience, outlook and sensitivity.
2.
Researchers own resource:
In the case of a research to be done by a researcher on his own, consideration of
his own financial resource is pertinent. If it is beyond his means, he will not be
able to complete the work, unless he gets some external financial support. Time
resource is more important than finance. Research is a time-consuming process;
hence it should be properly utilized. 3.
Researchers competence:
A mere interest in a problem will not do. The researcher must be competent to
plan and carry out a study of the problem. He must possess adequate knowledge of
the subject-matter, relevant methodology and statistical procedures.
External Criteria
1.
Research-ability of the problem:
The problem should be researchable, i.e., amendable for finding answers to the
questions involved in it through the scientific method. 2.
Novelty of the problem:
The problem must have novelty. There is no use of wasting ones time and energy
on a problem already studied thoroughly by others.
3.
Importance and urgency:
Problems requiring investigation are unlimited, but available research efforts are
very much limited.
4.
Facilities:
Research requires certain facilities such, as well-equipped library facility, suitable
and competent guidance, data analysis facility, etc. Hence the availability of the
facilities relevant to the problem must be considered. Problems for research, their
relative importance and significance should be considered. 5.

Feasibility:
A problem may be a new one and also important, but if research on it is not
feasible, it cannot be selected. 6.
Usefulness and social relevance:
Above all, the study of the problem should make a significant contribution to the
concerned body of knowledge or to the solution of some significant practical
problem. It should be socially relevant. 7.
Research personnel:
Research undertaken by professors and by research organizations require the
services of investigators and research officers. But in India and other developing
countries, research has not yet become a prospective profession. Hence talent
persons are not attracted to research projects. Each identified problem must be
evaluated in terms of the above internal and external criteria and the most
appropriate, one may be selected by a research scholar.
RESEARCH DESIGN:
Purpose of Research
As you probably already know, there are many reasons why research is done. But
what are its purposes? Why bother with all the different styles, techniques,
experiments and measurements?
Why did the first sailors, the ones before Columbus and Magellan, hop on their
little canoes and paddle out? Humans naturally explore the world around them,
wanting to learn about the planet we have labeled Earth.
Why did Hippocrates and Galen examine and write about the maladies of man?
The need to describe and understand our world is found in even the youngest
children.
Why did we develop an entire group of sciences to understand humans? Because
what good is being human if you cannot explain why we do something. Maybe I
am being a little to 'meta' about all this. The purpose of psychology is to explore, to
describe and to explain how and why a person thinks, feels and acts.

Exploratory Research
Exploratory research is defined as the initial research into a hypothetical or
theoretical idea. This is where a researcher has an idea or has observed something
and seeks to understand more about it. An exploratory research project is an
attempt to lay the groundwork that will lead to future studies, or to determine if
what is being observed might be explained by a currently existing theory. Most
often, exploratory research lays the initial groundwork for future research.
To make this a little more understandable, imagine you are blindfolded or placed
into a room without light. You are not told if something is in the room, but you
have a suspicion there is something in there. You shuffle out slowly into the room,
exploring with the tips of your fingers until you find something.
Exploratory research can come in two big forms: either a new topic or a new angle.
A new topic is often unexpected and startling in its findings. For example,
American psychologist John Watson really began his behaviorism research with a
new topic on the study of human behaviors and learning: rats! Because humans
have brains and rats have brains, it makes a certain kind of sense. There was an
attempt to find the universal laws of learning in all brains.
New angles can come from new ways of looking at things, either from a theoretical
perspective or a new way of measuring something. For instance, computers have
allowed large populations to be looked at. Old experiments can now involve
thousands of people from around the globe instead of a few people from the local
train station.
Descriptive Research
Once the groundwork is established, the newly explored field needs more
information. The next step is descriptive research, defined as attempts to explore
and explain while providing additional information about a topic. This is where
research is trying to describe what is happening in more detail, filling in the
missing parts and expanding our understanding. This is also where as much
information is collected as possible instead of making guesses or elaborate models
to predict the future - the 'what' and 'how,' rather than the 'why.'

Remember that room you're blind in? Descriptive research is the act of exploring
the thing in the dark, creating a fuller picture of what you are looking at. It is not
quite as tentative as exploratory, but you still are not 100% sure what you've found,
although you're starting to get an idea. You begin to fill in what you know with
what you find.
A psychological example is the use of CT scans, MRI, fMRI, PET, and SPECT
imaging to describe the living brain. We now have the clearest picture in all of
history of the thinking, living brain. Just a few decades ago, a person who wanted
to look at a living brain had two options: a really blurry CT scan without any detail
or to crack open the skull and peel back the protective layers around the brain.
Both options are better than a century ago, where you kind of had to wait for
someone to die to examine their brain. Research over the last few decades has been
expanding our understanding, providing descriptions of the active processes in the
brain.
One field that is quickly growing is the field of forensic psychology. Over the last
few decades, studies exploring the decision making process of police officers, the
techniques used to question witnesses and the jury processes are all being
examined. There has been an active interest in many researchers to explore the
field that the judicial system needs.
For instance, looking into eyewitness memory studies reveals research explaining
and describing the factors that influence what people see. For example, did you
know that a person with different lights shining at different angles on a person's
face can alter a person's entire look, including their ethnicity? How about that even
in broad daylight, people still get gender of perpetrExperimental Research - An
attempt by the researcher to maintain control over all factors that may affect the
result of an experiment. In doing this, the researcher attempts to determine or
predict what may occur.
Experimental Design - A blueprint of the procedure that enables the researcher to
test his hypothesis by reaching valid conclusions about relationships between
independent and dependent variables. It refers to the conceptual framework within
which the experiment is conducted.

Steps involved in conducting an experimental study

Identify and define the problem.
Formulate hypotheses and deduce their consequences.
Construct an experimental design that represents all the elements, conditions,
and relations of the consequences.
1. Select sample of subjects.
2. Group or pair subjects.
3. Identify and control non experimental factors.
4. Select or construct, and validate instruments to measure outcomes.
5. Conduct pilot study.
6. Determine place, time, and duration of the experiment
ators and victims mixed up?

Marketing Research Techniques in the Internet Environment

by Alex Saez, Demand Media

Gear your online marketing techniques to suit your needs.

Marketing has always been critical for business success. With the advent of the
Internet, new techniques have emerged. As a small-business owner, it is essential
that you take advantage of the Internet environment to promote yourself and assess
your ever-changing industry. That being said, understanding these methods and
tools will give you the edge you need to thrive.
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Keyword Research
Using search engines is a quick and effective Internet marketing research
technique. With tools such as WordTracker or Trellian's Keyword Discovery, you
can search for keywords related to your business or product. The aforementioned
software then tracks the popularity of those words. In turn, you gain an insight
regarding the product or service's popularity and sales potential. You can also use
search engines to research rival businesses. By typing "link:www.[competitor's
name].com" in a Google search, you will find links to competitor websites, which
should show you what other companies are offering in terms of pricing and product
quality. Use this information to emphasize why your business is better by
promoting more enticing deals or higher-quality products.
Blogs and Posts
There is a wealth of information you can harness online. While researching
competitors certainly helps, monitoring blogs is also beneficial. Whether the blog
belongs to a business or is simply an interest group, it contains a steady stream of
information about public opinion. Posters and forum commenters will often reveal
which products they favor or demand. You can then gear your business to meet
those needs and attract more customers. This process can be further facilitated by
blogging search engines, such as Technorati. These tools filter out all content but
blogs, saving you a great deal of time.
Related Reading: Marketing Challenges in a Multinational Environment

Surveys and Questionnaires

Online surveys and questionnaires are both effective and cheap. By emailing short
-- "short" being the key term -- forms to past, current or potential customers, you
can determine things like satisfaction, public opinion and potential demand. In
turn, you may alter your product or change your business to keep it relevant and
provide the best customer service possible. There are many tools available in this
area. KeySurvey and WebSurveyor allow you to quickly and easily create your
own questionnaires or surveys. When creating these, avoid vague or "open-ended"
questions. Instead, focus on simple "yes", "no" or "maybe" answers.
Group Interviews
Also referred to as "focus groups," this marketing technique used to be only done
in person but has since expanded to the Internet environment. It can contain
anywhere from 10 to 30 members. Having it online is advantageous, because
participants do not have to leave home to take part. There are two forms: real-time
focus groups and bulletin board focus groups. As their name implies, real-time
focus groups have respondents interact simultaneously. They function similarly to
a conventional chat room. Participants discuss the business, product or service
while a staff moderator oversees the dialog to keep it on track. Bulletin board
groups, on the other hand, do not require everyone to meet. They are comparable to
a typical forum, again moderated by staff. Group members log in at their
convenience, post messages and respond to others