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PRINCIPLES OF
MARKETING
Quarter 1- Module 8:
The Marketing Research

Elizabeth Lou A. Llego

Compiler / Contextualizer

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 QUARTER 1
MODULE 8, WEEK 8
THE MARKETING RESEARCH
Content Standard : The importance of information, the market
characteristics affecting consumer behavior
and the bases of market segmentation
Performance Standard : Conduct marketing research, interpret market
buying behavior on product or service, and
identify the product or service target market.
Competencies : Define marketing research, its importance to a
business enterprise and identify the steps in
marketing research
ABM_PM11-le-i-11
Learning Outcomes : Upon completion of the module, the SHS students
are expected to define marketing research, its
importance to a business enterprise and identify
the steps in marketing research.
______________________________________________________________________________________________________________________________________________________

What I Know

Pre-test Instruction: Choose the letter of the best answer and write it on a separate
sheet of paper. Please do not forget to write the following in your answer sheet:

Name: _____________________________________ Year and Section: __________________

Subject: _______________________ Quarter No. ____________ Module No. ___________
Name of the Activity What I Know Date: _________________

1. Which type of data is used when a researcher uses published data?

A. Qualitative Data C. Primary Data
B. Quantitative Data D. Secondary Data
2. Which type of data is obtained based on words, feelings, emotions, sounds
unquantifiable elements.
A. Qualitative Data C. Primary Data
B. Quantitative Data D. Secondary Data
3. Which of the following is the systematic design, collection, analysis, and
reporting of data to a specific marketing situation facing an organization?
A. Marketing Mix C. Marketing Research
B. Marketing Plan D. Market Segmentation

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4. Which type of research is quite complicated as it is done through laboratory and
field experiments?
A. Causal Research B. Descriptive research
B. Case Analysis D. Exploratory research
5. Which of the following is NOT an important function of marketing?
A. Determine the level of customer satisfaction
B. It can help assess market potential
C. It increases shareholders' wealth
D. Help update marketers regarding the competitor’s activities strategies
6. Which type of research is done when a researcher gathers first-hand (original)
information to achieve the research objective through observations and
questioning?
A. Qualitative research C. Primary research
B. Quantitative research D. Secondary research
7. When the researchers use tools to collect numerical data such customer choices,
frequency, demographics, it is which type of research is used?
A. Causal Research B. Descriptive research
B. Case Analysis D. Exploratory research
8. Which refers to the process of selection of the sample?
A. Sampling Unit C. Sampling size
B. Sampling Plan D. Sampling procedure
9. When conducting this kind of research, a marketer must stay flexible and willing
to change direction as new information becomes available instead of sticking
with one method throughout the process. Which type of research is described?
A. Causal Research B. Descriptive research
B. Case Analysis D. Exploratory research
10. Which is true about the implementation of the research plan?
A. When the secondary data related to the research problem is available, the
research could be facilitated faster.
B. If there are no related published data, then there’s a need to gather primary
data to address the specific problem.
C. Both A & B are false
D. Both A & B are true
11. When researchers use tools, such as surveys, to collect numerical data, which
type of research method is used?
A. Qualitative research C. Primary research
B. Quantitative research D. Secondary research
For questions 12-15:
I. Developing the research plan for collecting information
II. Interpreting and reporting the findings
III. Defining the problem and research objectives
IV. Implementing the research plan, collecting, and analyzing data

12. Which is the correct systematic steps in the marketing research process?
A. III, II, I, IV C. III, I, II, IV
B. III, I, IV, II D. I, IV, III, II

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13. Which step is referred to when the researcher presents important findings and
insights that are useful in the decision making of the management?
A. I B. II C. III D. IV
14. Which step is described when the research team outlines sources of existing
data and spells out the specific research approaches, contact methods,
sampling plans, and instruments that researchers will use to gather new data
efficiently?
A. I B. II C. III D. IV
15. Which step is usually the hardest part of the marketing research process in
which the researchers should understand the nature of research?
A. I B. II C. III D. IV

What I Need to Know

Accurate, thorough, and timely information is the foundation of all successful
business ventures because of the wealth of information about prospective and
existing customers, the competition, and the industry in general. Marketing research
provides relevant data to help solve marketing challenges, and to make effective
decisions regarding the proper strategies to implement. Research skills can give
marketers edge over the competition.
Module 8, will enable you to:
• Define marketing research
• Recognize its importance to a business enterprise
• Identify the steps in marketing research.

What’s In

ACTIVITY: LET’S RECALL

Instructions: Fill in the missing words related to marketing environment. Then,

write these words on a separate sheet of paper.

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*7. EALHITC _ _ _ _ _ _ – factors that will serve as an entrepreneur’s guide on how
to be ethical in running a business.

What’s New

ACTIVITY: PUZZLED BUT FILLED!

Instructions: Fix the jumbled words on left side with the clues on the right side. The
encircled letters will reveal the final word in number 17. Write these words on a
separate sheet of paper.

What Is It

THEORIES AND CONCEPTS: MARKETING RESEARCH

Marketing research is the systematic design, collection, analysis, and reporting of

data to a specific marketing situation facing an organization. (Kotler & Armstrong,
2001). American Marketing Association defines marketing research {1987)-
”Marketing research is the function which links the consumer, customer, and
public to the marketer through information—information used to identify and define
marketing opportunities and problems; generate, refine and evaluate marketing

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actions; monitor marketing performance; and improve understanding of marketing
as a process.

It could be a study about a market, a market potential, about market share studies,
about a product or service to be offered for sale in that market, and about the past,
present and potential customers for the product or service; research into the
characteristics, spending habits, location and needs of your business's target
market, the industry as a whole, and the particular competitors you face, about
customer satisfaction and purchasing behavior, study of the marketing mix (product,
price, distribution, promotion activities), among others.

THE IMPORTANCE OF MARKETING RESEARCH

Although marketing research can be costly, it is indispensable. Marketing research

(Zarate, Principles of Marketing , 2017) is important as:
✓ It can contribute to the success of different marketing activities as it can give
marketers insights into customer motivations, purchase behavior, and
satisfaction, or establishing meaningful relationship with customers. It can
help marketers to assess market potential and market share or measure the
effectiveness of pricing, product, distribution, and promotion activities.
✓ It can help determine the probability of success and the alternative courses of
actions, and help marketers avoid potential loses and iron out issues that may
occur.
✓ It can help update marketers regarding the competitor’s activities strategies
through comparative studies which will enable them to devise ways to improve
their competitive advantage such as developing superior brands.
✓ It can also determine aspects of the business that need to be changed or
upgraded.
✓ It may indicate the need for an organization to improve marketing strategies,
update products or services, and review its business plan, and it can also help
identify opportunities and new areas for expansion.
✓ It can provide the facts and direction that managers need to make their more
important marketing decisions (Internet Center for Management and Business
Administration, Inc., 1999-2010)

CLASSIFICATION OF MARKETING RESEARCH

Source: Figure 1 (Kotler & Armstrong, 2001)

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By source, there are 2 kinds of research: primary and secondary research.
Researchers should come out with the best possible source of information depending
on the information needs of the management.

Primary Research – a researcher will gather first-hand (original) information to

achieve the research objective. All information collected should be significant,
precise, updated, and impartial. Data can be obtained from observations and from
communications (questioning respondents either verbally or in writing).

Secondary Research – a researcher uses previously published information or

existing available internal records/database of the company and external to the firm
such as business data or commercially available data, or published data, and
government data.
➢ Sources of internal research include data from the company’s stock lists and
customer databases, product sales, customer usage rates, guarantee cards,
customer comments or complaints, salespeople, research and development staff,
and past research conducted.
➢ Sources of external secondary research include information from external
organizations like specialist marketing reports or existing marketing results,
industry magazines, chamber of commerce, government statistics, internet,
professional bodies, and trade associations, periodicals, among others.

Take note that the information from secondary research did not consider the
research objective.

By methodology

Research methods are the tools and techniques for doing research. If you use the
right sort of methods for your particular type of research, then you should be able to
convince other people, especially the management that your conclusions have some
validity, and that the new knowledge you have created is soundly based. Types of
research methods and their output data can be broadly classified as: (1) qualitative
and (2) quantitative.

Qualitative – concerned with a quality of information, qualitative methods attempt

to gain an understanding of the underlying reasons and motivations for actions and
establish how people interpret their experiences; or people’s opinions or perceptions,
attitudes on something (e.g. understanding consumer behavior through observation
and interpretation, or simply studying a company and its operations). It is based on
words, feelings, emotions, sounds and other non-numerical and unquantifiable
elements. It has been noted that “information is considered qualitative in nature if it
cannot be analyzed by means of mathematical techniques. Qualitative methods
provide insights into the setting of a problem, generating ideas and/or hypotheses.
Examples of this type of research are exploratory research and case analysis.

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Quantitative – as the name suggests, is concerned with trying to quantify things;
this is the data that you get by asking structured questions such as ‘how long’, ‘how
many’ or ‘the degree to which’. Quantitative methods look to quantify data and
generalize results from a sample of the population of interest. Usual information
includes basic statistics information as “it describes, infers, and resolves problems
using numbers. Emphasis is placed on the collection of numerical data, the summary
of those data and the drawing of inferences from the data”. They may look to measure
the incidence of various views and opinions in a chosen sample. Examples are
descriptive research and causal research.

Table 1. Marketing Research by Methodology: Qualitative vs Quantitative

(Source: Stuart MacDonald & Nicola Headlam, Center for Local Economic Strategies/CLES)
Qualitative Quantitative
Aim The aim is a complete, detailed The aim is to count things in an
description of what is observed attempt to explain what is
observed
Purpose Contextualization, Generalizability, prediction,
interpretation, understanding causal explanations
perspectives
Tools Researcher is the data Researchers uses tools, such as
gathering instrument surveys, to collect numerical
data
Data Collection Unstructured Structured
Output Data is in the form of words, Data is in the form of numbers
pictures, or objects. and statistics
Sample Usually a small number of non- Usually, a large number of cases
representative cases. representing the population of
Respondents selected on their interest. Randomly selected
experience respondents
Objective/ Subjective – individuals’ Objective - seeks precise
Subjective interpretation of events is measurement and analysis
important
Researcher role Researcher tends to become Researcher tends to remain
subjectively immersed in the objectively separated from the
subject matter. subject matter
Analysis Interpretive Statistical

More so,
Data Words, images, narrow but rich Numbers; shallow but broad
Areas probed Attitudes, Feelings, Choices, Frequency,
Motivations, perception Demographics

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By objectives

In formulating the research objectives, the marketing team may base it in the 3 types
of marketing research by objectives:

Exploratory research – is conducted to determine the nature of a problem. It is

intended to explore marketing research questions, but its intent is not to offer final
and conclusive solutions to existing issues. Exploratory research provides
researchers with a better understanding of the problem, but the results of
exploratory research are typically not useful for decision-making alone. Exploratory
research can provide significant insight into a given situation, as the objective is to
gather preliminary information that will help define issues and suggest hypotheses.
When conducting this kind of research, a marketer must stay flexible and willing to
change direction as new information becomes available instead of sticking with one
method throughout the process. This can be done using literature search or through
various research methods such as: (1) trial studies, (2) pilot studies, (3) interviews,
(4) case studies, (5) experiments (6) group discussions*.
*Focus Group Discussion (FGD) – this is made up of 6-8 individuals that
interact during the discussion; the composition of individuals may be homogeneous
or heterogeneous depending on the objective of the research. These individuals are
brought together by a moderator who ask questions that address the research
objective.

Descriptive research – also known as statistical research, the main purpose of this
research is to describe marketing problems, situations, or users or markets (e.g.
market potential for a product or the demographics and attitude of customers who
buy a certain product or service or marketing mix characteristics); it determine the
proportion of the population that uses the product; or predict the future demand of
the product. It should define questions, and so the “who, what, when, why, and how”
aspect of the research should be defined, and the people surveyed. Before conducting
this type of research, the researcher must already have a good understanding of the
research problem through prior exploratory study. This kind of research is widely
used because it is easy to implement and the findings are easy to interpret. The
interpretation involves frequency count, percentage, or ratio.

Causal research – seeks to find the cause-and-effect relationships between variables.

It accomplishes this goal through laboratory and field experiments. It is the most
complicated kind of quantitative research.

The appropriate method of research will depend on the objective of the research and
the available resources (time, money, people, among others).

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STEPS IN MARKETING RESEARCH

Figure 2. The Marketing Research Process (Kotler & Armstrong, 2001)

Step 1. Defining the problem and research objective

In determining the problem, the team may be guided by these questions:

(1) Why is there a need to conduct marketing research?
(2) What specific gap in marketing that needs to be addressed?

Identifying the problem and the research objective in marketing research often
requires consultation with the decision makers in the company. Once the research
problem has been identified, the corresponding marketing research must be set.
Whatever reasons, maybe about sales, competition, or consumer behavior the
marketing team should carefully weigh the factors and come up with a relevant
research problem.

Step 2. Developing the research plan for collecting information

After the problem and objectives are set, the researcher must present to the
management / decision-makers the plan on how the research will be designed, how
data will be collected, analyzed, and interpreted, and what will be the scope and
limitations of the research based on the design. Marketing researchers develop a
research plan that outlines sources of existing data and spells out the specific
research approaches, contact methods, sampling plans, and instruments that
researchers will use to gather new data efficiently. Research team must prepare a
written proposal to be presented to management / decision-makers as this ensures
completeness of research scope, and ensures the team agree on what and how to
research. To meet the manager’s information needs, the research plan can call for
gathering secondary, or primary data, or both.

Figure 2. Planning Primary Data Collection

Research Contact Sampling Plan* Research
Approaches Methods Instruments
Observation Mail / Sampling Unit (who) Questionnaire
Survey Email Sample size (how Mechanical
Experiment Telephone many) Instruments/
In-depth interviewing Personal Sampling procedure devices to monitor
consumer behavior
Field tests Online (how to choose
Focus group samples) (retail scanners,
people meters
discussions FGDs)
(source: Flores 2018, page 61; Gonzales 2016 page 69-70)

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*Sampling plan – provides an outline on the basis of which research is conducted.
The term sample refers to a segment of the population selected for the marketing
research to represent the population as a whole (Kotler and Armstrong). The
marketing researchers select a sample that would represent the target population to
make an accurate analysis of the generated customer’s insights.

There are 3 factors that need to be considered in designing the sample in

marketing research:

1. Sampling unit – refers to the subject (person or group of people) that will
be studied. Marketing researchers may select one sample among the target
population of the research to represent the whole. For example, when studying the
buying behavior of senior high school students in Cebu City on fast food products, a
single senior high school is a public school can be a sampling unit.

2. Sampling size – it refers to the number of subjects to be included in the

study. Example, how many students should be included in the study? The size of the
sample may be determined depending on the statistical considerations and the cost
of the research. The reliability of the results may be affected by the sampling size.

3. Sampling procedure – it refers to the process of selection of the sample.

How the subject in the sample be selected? The marketers may use probability
samples or nonprobability samples in their selection.

Probability Samples:
a. Simple random sample – every member of the population has known and equal
chance of selection.
b. Stratified random sample – the population is divided into mutually exclusive
groups (such as age groups), and random samples are drawn from each
group.
c. Cluster (area) sample – the population is divided into mutually exclusive groups
(such as blocks) and the researcher draws a sample of the groups to
interview.

Nonprobability Samples:
a. Convenience sample – the researcher selects the easiest population members
from which to obtain information.
b. Judgment sample – the researcher uses his or her judgment to select
population members who are good prospects for accurate information.
c. Quota sample – the researcher finds and interviews a prescribed number of
people in each of several categories.

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Step 3. Implementing the research plan, collecting & analyzing the data

Once the plan is agreed upon, the researcher starts to gather data. If secondary data
related to the research problem is available, the research could be facilitated faster.
If there are no related published data, there is a need to gather primary data to
address the specific problem. Any secondary data that would complement the
primary data should be utilized in the research.

Once the primary data is collected, the researcher will proceed with analyzing it.
Expert researchers with statistical background may find it easy, but others without
statistical background should include statisticians in the research team.

Step 4. Interpreting and reporting the findings

Once the data is analyzed using the appropriate statistical software (for quantitative
research), the findings can be interpreted and reported based on the defined
objectives of the research. The interpretation can also be based on existing business
theories or company policies and practices. The researcher should present important
findings and insights that are useful in the decision making of the management. The
researcher thus has the responsibility of making the report readable and
comprehensible.

THE MARKETING RESEARCH REPORT

According to (Internet Center for Management and Business Administration, Inc.,

1999-2010) the format of the marketing research report varies with the needs of the
organization. The report often contains the following sections:
• Authorization letter for the research
• Table of Contents
• List of Illustrations
• Executive Summary
• Research Objectives
• Methodology
• Results
• Limitations
• Conclusions and Recommendations
• Appendices containing copies of the questionnaires, etc.

Marketing research by itself does not arrive at marketing decisions, nor does it
guarantee that the organization will be successful in marketing its products.
However, when conducted in a systematic, analytical, and objective manner,
marketing research can reduce the uncertainty in the decision-making process and
increase the probability and magnitude of success.

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 What’s More

ACTIVITY: LET’S PLAN AHEAD!

Instructions: Love month is around the corner. You are to come up with a marketing
research that will help you in your decision on what to sell for the season.

Interview a couple through any social media or any form of communication. Add
other questions to make it 10 items. Get the following details:

VARIABLES COUPLE A COUPLE B

1. Age of each of the pair (M & F)
2. Who is most likely to buy a present? (M/F)
3. What is your annual income?
4. What is your partner’s annual income?
5. How much are you willing to spend for a
single gift to your partner?
6. What gift do you think your partner likes
the most? (1) Flowers, (2) Chocolates, (3)
Jewelry, (4) Dinners, (5) Others____

7.
8.
9.
10.

Based on the gathered data, compare the set of answers of the couple and write your
findings.

What I Have Learned

ACTIVITY: IMAGE MAP

In a separate sheet of paper, make an image map to sum up what is Marketing

Research.

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 What I Can Do

ACTIVITY: MINI-MARKETING RESEARCH

Instructions: Conduct mini-marketing research by following the steps below. Be

reminded that the purpose of the research project is to challenge you to think like a
marketing manager / researcher. You may conduct this in groups of 5, through
online means. Write your marketing research report on separate sheets of paper with
the following format:

I. Marketing Research Project Title (1 page)

II. Table of Contents (1 page)
III. Executive Summary (not to exceed 2 pages)
Executive summary is considered by many to be the most important part off
the research report since not all will have time to read the entire report in
detail. It is important not to summarize the entire report, but rather provide
concise summary of the following:
IV. Brief statement of problem and research objectives
Choose any (1) topic that should be interesting and stimulating, and at the
same time doable by formulating a research problem. Here are some ideas:
• What the preferred internet provider by students and teachers this pandemic
time? Is it the most reliable?
• What is the favorite pastime of students while on lockdown?
• What is the most saleable snack item preferred by students, or teachers or
family members while staying at home? How do we buy it this time?
• Given this pandemic, what is the best alternative on how to market our newly
developed product? Or how do we improve our declining sales?
V. Develop a Research Proposal – this will include research objectives and an outline
of your research design.
• What is the purpose of this marketing research? How is this marketing
research significant and what contribution will this bring to my company?
• Should we have the qualitative or quantitative research and what specific
research approaches, contact methods, sampling plans, and instruments
should we use?
• How do we gather data? Should we gather new, or use existing, or both?
VII. Data Collection - use the following procedure as a guide:
a. Write the questionnaire and distribute it to the respondents via online
(messenger or google form).
b. conduct online interviews only (or face-to-face for family members only)
VIII. Analysis of Data. Gather the questionnaires and interpret the answers of the
target respondents. Based on your findings, what will be your
recommendation 3-5 action points to management that are specific and
attainable.

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 Assessment

Post-test Instruction: MULTIPLE CHOICE. Choose the letter of the best answer
and write it on a separate sheet of paper.

Name: _____________________________________ Year and Section: __________________

Subject: _______________________ Quarter No. ____________ Module No. ___________
Name of the Activity Assessment Date: _________________

A. For Questions 1 - 9:
I. Primary Research V. Causal Research
II. Secondary Research VI. Exploratory Research
III. Qualitative Research VII. Descriptive Research
IV. Quantitative Research VIII. Marketing Research

1. When the researchers used tools to collect numerical data such customer
choices, frequency, demographics, which type of research is used?
A. IV B. V C. VI D. VII
2. Which research is quite complicated as it is done through laboratory and field
experiments?
A. V B. VI C. VII D. VIIII
3. Ms. Sakura, a marketing researcher, used first-hand information in all her
research works. Which kind of research was obtained?
A. I B. II C. III D. IV
4. What links the consumer, customer, and public to the marketer through
information?
A. V B. VI C. VII D. VIII
5. Enrico is using commercially available data from the Cebu Chamber of
Commerce. Which kind of research is he using?
A. IV B. VII C. I D. II

6. Which type of research is intended to explore marketing research questions, but

its intent is not to offer final and conclusive solutions to existing issues?
A. V B. VI C. VII D. VIII
7. When Jonathan used frequency count, percentage, and ratios in his research,
which research method did he use?
A. I B. III C. IV D. VI
8. Which kind of research is used to describe marketing problems, situations, or
users of markets; predicts the future demand of the product; and is widely used
because it is easy to implement?
A. V B. VI C. VII D. VIIII
9. Which research method examines people’s feelings and attitudes towards a
product or service; shows people’s perceptions and what motivates them?
A. V B. III C. VII C. IV

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10. Which of the following type of research does NOT belong?
A. Exploratory Research C. Qualitative Research
B. Case Analysis D. Quantitative Research
11. Which of the following is the correct steps in the Marketing research process?
I. Developing the research plan for collecting information
II. Interpreting and reporting the findings
III. Defining the problem and research objectives
IV. Implementing the research plan, collecting, and analyzing data
A. I, II, III, IV B. III, I, IV, II C. III, IV, I, II D. IV, III, II, I
12. Which is true about the implementation of the research plan?
A. When the secondary data related to the research problem is available, the
research could be facilitated faster.
B. If there are no related published data, then there’s a need to gather primary
data to address the specific problem.
C. Both A & B are false
D. Both A & B are true
13. Which of the following is described when a group of students were studying the
buying behavior of senior high school students in Cebu City public schools on
fast food products, and a single senior high school per public school represents
the whole school?
A. Sampling Unit C. Sampling size
B. Sampling Plan D. Sampling procedure
14. Which of the following is NOT an important function of marketing?
A. Determine the level of customer satisfaction
B. It can help assess market potential
C. It increases shareholders' wealth
D. Help update marketers regarding the competitor’s activities strategies

15. Dr. Mata asks, “How many respondents should be included in the study?”
A. Sampling Unit C. Sampling size
B. Sampling Plan D. Sampling procedure

Additional Activities

Good job and keep learning! Create one marketing quotation/motto. Write on a
separate sheet of paper. Below are examples of marketing research quotations.

“Whoever gets closer to the customer wins.” Bernadette Jiwa - Founder, The
Right Company.

“Research is a formalized curiosity. It is poking and prying with a purpose.”

(Zora Neale Hurston)

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