"Marketing research is the function that 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 actions; monitor marketing performance; and
improve understanding of marketing as a process.
Marketing research specifies the information required to
address these issues, designs the methods for collecting
information, manages and implements the data collection
process, analyzes, and communicates the findings and their
implications."
American Marketing Association (AMA) - Official Definition of Marketing Research
The Marketing research Process.
Marketing research is gathered using a systematic approach. An example of one follows:
1. Define the problem. Never conduct research for things that you would 'like' to know. Make
sure that you really 'need' to know something. The problem then becomes the focus of the
research. For example, why are sales falling in New Zealand?
2. How will you collect the data that you will analyze to solve your problem? Do we conduct a
telephone survey, or do we arrange a focus group? The methods of data collection will be
discussed in more detail later.
3. Select a sampling method. Do we us a random sample, stratified sample, or cluster sample?
4. How will we analyze any data collected? What software will we use? What degree of accuracy
is required?
5. Decide upon a budget and a timeframe.
6. Go back and speak to the managers or clients requesting the research. Make sure that you
agree on the problem! If you gain approval, then move on to step seven. 7. Go ahead and collect
the data.
8. Conduct the analysis of the data.
9. Check for errors. It is not uncommon to find errors in sampling, data collection method, or
analytic mistakes.
10. Write your final report. This will contain charts, tables, and diagrams that will communicate
the results of the research, and hopefully lead to a solution to your problem. Watch out for errors
in interpretation.
Sources of Data - Primary and Secondary
There are two main sources of data - primary and secondary. primary research is conducted from
scratch. It is original and collected to solve the problem in hand. secondary research, also known
as desk research, already exists since it has been collected for other purposes.
We have given a general introduction to marketing research. Marketing research is a huge topic
area and has many processes, procedures, and terminologies that build upon the points above.
(See also lesson on primary marketing research and secondary marketing research).
The Nature of Marketing Research Design
Marketing research design is the specification of procedures for collecting and analyzing the data
necessary to help identify or react to a problem or opportunity, such that the difference between
the cost of obtaining various levels of accuracy and the expected value of the information
associated with each level of accuracy is maximized.
Several aspects of this definition deserve emphasis. First, research design requires the
specification of procedures. These procedures involve decisions on what information to generate,
the data collection method, the measurement approach, the object to be measured, and the way in
which the data are to be analyzed.
Second, the data are to be collected to help identify or react to a problem or opportunity. All data
collected should eventually relate to decisions faced by management. Obviously, the efficient
collection of data relevant to a decision requires a clear definition of the problem/opportunity.
A third implication of the preceding definition is that information has value. Information
acquires value as it helps improve decisions. The fourth major implication is that varying levels
of accuracy of information can be generated in response to the same problem. Information
accuracy is affected by the occurrence of a number of potential errors. Finally, the goal of
applied research design is not to generate the most accurate information possible. Rather, the
objective is to generate the most valuable information in relation to the cost of generating the
information.
It should be noted that research design for purposes other than solving applied business problems
will have different characteristics. For example, research for use in court proceedings will be
designed differently from applied marketing research.
Scope of Market Research
Market research is the systematic design, collection, analysis and reporting of data and findings
relevant to a specific marketing situation facing the company.
Market researchers have expanded their activities and techniques. The ten most common
activities of market research are –
1. Determination of marketing characteristics
2. Measurement of market potentials
3. Market share analysis
4. Sales analysis
5. Studies of business trends
6. Short range forecasting
7. Competitive product studies
8. Long range forecasting
9. Pricing studies, and
10. Testing of existing products
