MARKETING RESEARCH METHODS

Marketing Research Methods

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Marketing Research Methods

Marketing research is an important step for any organization since it gives the firm

information that is necessary for them to make a business decision, and has therefore been a

foremost part of organizational decision making for a long time (Shao and Zhou, 2006, p.57:

Beri, 2007). Through carrying out a market research, the business has an opportunity to assess

the risks and reduce these risks through using the information acquired to guide the research and

development as well as marketing strategies of their business product (Shao and Zhou, 2006).

However, there has been a lot of confusion as to what marketing research entails as well as its

definition.

According to Al Shatanawi, Osman and Ab Halim (2014) as quoting Gupta and Benedett

(2007), marketing research can be defined as “a process of gathering, analyzing and interpreting

information about a market, product or service to be offered for sale in that market, and about

the past, present and potential customers for the product or service” (p.150). Some of the factors

associated with marketing research include spending habits, business needs, location as well as

the intended industry of entry (Shukla, 2008). There are two main marketing research methods

identified; primary research and secondary research. The purpose of this paper is to discuss in

detail these two forms of marketing research, including the different methods of carrying out

each, as well as the merits and demerits. The study will make use of the Coca Cola Company as

its point of reference to ensure clarity.

Primary Marketing Research

The determinant for the type of marketing research chosen by any company depends on

the type of information they need and how they intend to acquire this information. For primary

marketing research, primary data is used (Curtis, 2008). In primary research, the business

conducts its own research and does not use previously researched information (Anastasia, 2015).

The data used is first hand and it is often specific to the objectives of the business. Therefore,

data collected within primary research is also known as ‘raw data’ (Anastasia, 2015). For

example, in a scenario where the Coca Cola Company invests in carrying out an online survey on

the factors that are leading to shifting consumer demands, such as growing health concerns over

high sugar intake may lead to a product that has less sugar content.

Within primary marketing research, there are several major identified primary methods of

data collection; surveys, focus groups and experimentation (Curtis, 2008).

Focus Groups

The use of focus groups in primary marketing research is usually exploratory and

involves a small number of individuals chosen to form a group that will discuss a given topic

(Lappin, Sloan and Figoni, 1994). Additionally, focus groups are often used as a preparation for

a much more detailed survey and form the preparation phase of such an undertaking, enabling

the business to collect preliminary data that might be used in carrying out the survey (Lappin,

Sloan and Figoni, 1994). For example, to find out what the younger generation is interested in,

Coca Cola might find a group of young people, have them outline factors that determine their

soft drink selection, and create a questionnaire from the dynamics that the group introduces.

Focus groups have the advantage of enabling the organization to plan for a meticulous

field surveys, and also ensures that the organization has pointers from its core customers
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(Anastasia, 2015). Focus groups are also a fast and inexpensive way of obtaining primary data

(Lappin, Sloan and Figoni, 1994). On the other hand, focus groups do not provide foolproof

information and its small sample makes validity an issue (Lappin, Sloan and Figoni, 1994, p.18).

Surveys

Surveys are considered a better means of acquiring more valid primary data. Surveys,

although they might enroll the same methods of data collection (such as interviews etc.), are also

carried out at a much larger scale compared to focus groups. Survey methods are wide ranging

and include mail surveys, telephone surveys, internet surveys and in person interviews (Curtis,

2008). In contemporary times, the two most common survey methods are in person interviews

and internet surveys. Internet surveys are common due to the increased accessibility of the

internet and the ease of carrying out this survey model. Internet surveys have the advantage of

being cheap and fast to carry out, but on the other hand, contacting particular market groups and

having them complete the survey is a challenge (Curtis, 2008).

In person interviews are also quite common, and these interviews allow for the analyzing

of the response immediately thus making the survey process very effective (Curtis, 2008). On the

other hand, in person interviews have the challenge of being expensive due to having to deal

with an individual at a go, and in some cases, individuals may feel un-obligated to provide

details that they deem personal (Curtis, 2008, p.4). Surveys form the basis of market predictions

(Lappin, Sloan and Figoni, 1994), especially due to the larger sample size used during such a

research method.

Experimentation
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Controlled experiments are carried out within set boundaries and involve making

controlled changes to one or several variables to come up with an observation (Lappin, Sloan and

Figoni, 1994). Controlled experiments are good in offering detailed information about particular

variables, but it is also an expensive method since it requires professional expertise in particular

fields.

Secondary Marketing Research

Secondary marketing research involves going through previous research to determine

whether information exists within previously researched resources (Lappin, Sloan and Figoni,

1994). The sources used for secondary marketing vary and depend of various factors including

the kind of information required as well as the budget for the research. Today, the internet is

central to any form of data search and offers a myriad of benefits (Luo, 2009). Other sources of

secondary research may include libraries or off-the-shelf studies, syndicated data, government

sources and other forms of consumer publications. In the Coca Cola example, a secondary

research for the multinational could be as simple as the company digging through its previous

market studies that were successful to determine what they did correctly and replicate this in

their current research.

A major advantage of secondary research is that it allows for large and complex studies

to be carried out within a much shorter time period (Lappin, Sloan and Figoni, 1994). Through

secondary research, investigators are able to come up with wide ranging information. It is also

relatively cheaper compared to seeking first hand information. Nonetheless, secondary research

may also offer information that is hard to ‘personalize’ to the specific needs of the firm
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(Anastasia, 2015). In some instances, the information may also be of low quality due to

credibility issues concerning the sources.

Conclusion

Marketing research is a necessary step for an organization that intends to introduce a new

product into the market, or even intends to reinvent itself to gain a competitive advantage within

its specific market. Both primary and secondary market research are dependent on the needs of

the research. In general, primary research has the advantage of offering personalized data since it

is first hand, but it is also an expensive and time consuming operation. Secondary research on the

other hand is less expensive and much easier to carry out since the data is readily available, but

such data has the risk of not being as credible as primary data. The choice for Coca Cola or any

other company intending to carry out a marketing research is entirely dependent on time, money

and objectives.
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References

Al-Shatanawi, H.A., Osman, A. and Ab Halim, M.S., 2014. The Importance of Market Research

in Implementing Marketing Programs. International Journal of Academic Research in

Economics and Management Sciences, 3(2), p.150.

Anastasia., 2015. Should I Perform Primary or Secondary Market Research? {Online

Resource}. Accessed from https://www.cleverism.com/should-perform-primary-or-

secondary-market-research/ on May 2, 2017.

Beri, G. C. (2007). Marketing research. New Delhi, Tata McGraw-Hill.

Curtis, K.R., 2008. Conducting Market Research Using Primary Data. Assessment and Strategy

Development for Agriculture. University of Nevada

Lappin, J.E., Figoni, P. and Sloan, S.M., 1994. A primer on consumer marketing research:

procedures, methods, and tools. US Department of Transportation, Research and Special

Programs Administration.

Luo, Y., 2009. Using internet data collection in marketing research. International Business

Research, 2(1), p.196.

Shao, A. T., & Zhou, K. Z. (2006). Marketing Research: an Aid to Decision Making. Atomic

Dog Pub Inc.

Shukla, P., 2008. Essentials of marketing research. Bookboon.