04/20/23 Chapter 1 1

Introduction to Introduction to Marketing ResearchMarketing Research

Bambang WihartoBambang Wiharto

04/20/23 Chapter 1 2

Definition of Marketing ResearchDefinition of Marketing Research

Marketing researchMarketing research is the systematicsystematic and objectiveobjective identification, collection, analysis, dissemination, and use of informationinformation for the purpose of improvingimproving decision making related to identification and solution of problems (and opportunities) in marketing.

04/20/23 Chapter 1 3

Marketing Research Is Marketing Research Is SystematicSystematic

Marketing researchMarketing research is systematicsystematic, which mean that systematic planning is requiredrequired at all stages of the marketing research process.

Marketing researchMarketing research uses scientific method, in that data collected and analyzed to testest prior hypotheseshypotheses.

04/20/23 Chapter 1 4

Marketing Research Is ObjectiveMarketing Research Is Objective

It attemptsattempts to provide accurate informationaccurate information that reflectsreflects a true state of affairs.

It should be conducted objectivelyobjectively.

04/20/23 Chapter 1 5

Marketing Research PhaseMarketing Research Phase

Marketing researchMarketing research involvesinvolves the identification, collection, analysis, dissemination, and use of informationinformation.

Each phase of this process is importantimportant. We identifyidentify or define the marketing research

problem or opportunity and then determinedetermine what the informationinformation is needed to investigate it.

04/20/23 Chapter 1 6

Classification of Marketing Classification of Marketing ResearchResearch

Marketing ResearchMarketing Research

Problem Identification Research

Problem Identification Research

Problem - SolvingResearch

Problem - SolvingResearch

• Market Potential Research• Market Share Research

• Image Research• Market Characteristics Research

• Sales Analysis Research• Forecasting Research

• Business Trends Research

• Market Potential Research• Market Share Research

• Image Research• Market Characteristics Research

• Sales Analysis Research• Forecasting Research

• Business Trends Research

• Segmentation Research• Product Research• Pricing Research

• Promotion Research• Distribution Research

• Segmentation Research• Product Research• Pricing Research

• Promotion Research• Distribution Research

Problem Problem IdentificationIdentification ResearchResearch

Problem identification research is undertaken to help identify problems that are not apparent on the surface and yet exist or are likely to arise in the future.

Research of this type provides information about the marketing environments and helps diagnose a problem.

For example, a declining market potential indicate that the firms is likely to have a problem achieving its growth targets.

04/20/23Chapter 1

7

04/20/23 Chapter 1 8

Problem Solving ResearchProblem Solving Research

Segmentation ResearchSegmentation Research Determine basis of

segmentation Select target markets

and create lifestyle profiles demography, media and product image characteristics

Product ResearchProduct Research Test concept Determine optimal

product design Package test Product modification Brand positioning and

repositioning Test marketing

04/20/23 Chapter 1 9

Marketing Research ProcessMarketing Research Process

1.1. Problem DefinitionProblem Definition

2.2. Development of an Approach to The ProblemDevelopment of an Approach to The Problem

3.3. Research Design FormulationResearch Design Formulation

4.4. Field Work or Data CollectionField Work or Data Collection

5.5. Data Preparation and Analysis, andData Preparation and Analysis, and

6.6. Report Preparation and Presentation Report Preparation and Presentation

04/20/23 Chapter 1 10

Step 1:Step 1: Problem DefinitionProblem Definition

In definingdefining the problemproblem, the researcher should take into account the purposepurpose of the study, the relevantrelevant background information, whatwhat information is needed, and howhow it will be used in decision making.

Problem definitionProblem definition involvesinvolves: discussiondiscussion with the decision makers, interviewsinterviews with industry experts, analysisanalysis of secondary data, and, perhaps, some qualitative research, such as focus groupsfocus groups.

04/20/23 Chapter 1 11

Step 2:Step 2: Development of an Development of an approach to the problemapproach to the problem

Development of an approach to the problemDevelopment of an approach to the problem includes:includes: formulating an objective or theoretical framework, analytical models, research questions, hypotheses, and identifying characteristics or factors that can influence the

research design. This process is guided by discussions with

management and industry experts, case studies and simulations, analysis of secondary data, qualitative research, and pragmatic considerations.

04/20/23 Chapter 1 12

Step 3:Step 3: Research Design Research Design FormulationFormulation

A research designresearch design is a frameworkframework or blueprint for conducting the marketing research project.

It detailsdetails the procedures necessary for obtaining the required information, and its purpose is: to design a study that will test the hypotheses of

interest, determine the possible answers to the research

questions, and provide the information needed for decision making.

04/20/23 Chapter 1 13

Step 3:Step 3: Research Design Research Design FormulationFormulation (Cont) (Cont)

Conducting exploratory research, precisely defining the variables, and designing appropriate scales to measure them are also partpart of a research designresearch design.

The issue of how data should be obtained from the respondents must be addressed.

It is also necessary to designdesign questionnaire questionnaire and a sampling plansampling plan to select respondents for the study.

04/20/23 Chapter 1 14

Step 4:Step 4: Field Work or Data Field Work or Data CollectionCollection

Data collectionData collection involves: a field force or staff that operates either in the field, as in

the case of personal interviewing (in-home, mall intercept, or computer-assisted personal interviewing),

from an office by telephone (telephone or computer assisted telephone interviewing),

through mail or electronically.

Proper selection, training, supervision, and evaluating the field force helpshelps minimize data data collection errorscollection errors.

04/20/23 Chapter 1 15

Step 5:Step 5: Data Preparation and Data Preparation and AnalysisAnalysis

Data preparationData preparation includes the editing, coding, transcription, and verification of data.

Each questionnairequestionnaire or observation form is inspected, or edited, and if necessary, corrected.

Number or letter codes are assignedassigned to represent each response to each question in the questionnaire.

The data from questionnaire are transcribedtranscribed or inputted directly into the computer.

The data are analyzed to derive information related to the components of the marketing research problem and, thus provide input into the management decision problem.

04/20/23 Chapter 1 16

Step 6:Step 6: Report Preparation andReport Preparation and Presentation Presentation

The entire project should beshould be documented in a written reportwritten report which addresses the specific research questions identified, describes the approach, the research design, data collection, and data analysis procedures adopted, and presents the results and the major findings.

The findingsfindings should be presented in a comprehensiblecomprehensible format so that they can be readily used in the decision making process.

04/20/23 Chapter 1 17

The Nature of The Nature of MarketingMarketing ResearchResearch

The task of marketing researchmarketing research is to assessassess the information needs and provide management with relevant, accurate, reliable, valid and current informationinformation.

Today’s competitive marketing environment and the ever increasing costs attributed to poor decision making require marketing research to provideprovide sound informationsound information.

Sound decisions are notare not based on gut feeling, intuition, or even pure judgment.

In the absence of sound informationsound information, an incorrect management decision may result.

04/20/23 Chapter 1 18

MarketingResearch

MarketingResearch

Customer Groups(Consumers, employees, Shareholders, suppliers)

Customer Groups(Consumers, employees, Shareholders, suppliers) Uncontrollable

EnvironmentalFactors• Economy• Technology• Competition• Laws and Regulation• Social and Cultural Factors• Political Factors

UncontrollableEnvironmentalFactors• Economy• Technology• Competition• Laws and Regulation• Social and Cultural Factors• Political Factors

Marketing Managers• Market Segmentation• Target market selection• Marketing Programs• Performance and Controls

Marketing Managers• Market Segmentation• Target market selection• Marketing Programs• Performance and Controls

AssessingInformation

Needs

AssessingInformation

Needs

ProvidingInformation

ProvidingInformation

MarketingDecisionMaking

MarketingDecisionMaking

ControllableMarketingVariables• Product• Pricing• Promotion• Distribution

ControllableMarketingVariables• Product• Pricing• Promotion• Distribution

The Role ofMarketingResearch

04/20/23 Chapter 1 19

Marketing Research Suppliers Marketing Research Suppliers and Servicesand Services

Research Suppliers

Internal External

Full Service Limited Service

SyndicatedServices

StandardizedServices

CustomizedServices

InternetServices

FieldServices

Coding andData EntryServices

AnalyticalServices

Data AnalysisServices

Branded Product and

Services

04/20/23 Chapter 1 20

Selecting a Research SupplierSelecting a Research Supplier

When deciding on criteria for selecting an outside supplier, a firm should ask itselfshould ask itself why it is seeking outsideoutside marketing research support.

When developing criteria for selecting an outside supplier, a firm should keepshould keep some basics in mind. What is the reputation of the supplier? What is the reputation of the supplier? Do they complete projects on schedule? Do they complete projects on schedule? Are they known for maintaining ethical standards? Are they known for maintaining ethical standards? Are they flexible? Are they flexible? Are their research projects of high quality? Are their research projects of high quality? What kind and how much experience does the supplier have?What kind and how much experience does the supplier have?

04/20/23 Chapter 1 21

What is Marketing Information What is Marketing Information System (MIS)?System (MIS)? MISMIS – A formalized set of procedureformalized set of procedure for generating,

analyzing, storing and distribution pertinent information to marketing decision makers on an ongoing basis.

The design of an MIS focuses on each decision maker’s responsibilities, style and information needs.

The information provided by MIS is rigidly structured and can not be easily manipulatedcan not be easily manipulated.

04/20/23 Chapter 1 22

What is Marketing Decision What is Marketing Decision Support System (DSS)?Support System (DSS)?

Developed to overcome the limitation of MIS, decision support systems (DSS) enables decision makers to interact directlyinteract directly with both database and analysis models.

DSSDSS – is an integral systemintegral system including hardware, and a communication network, data base, model base, software base, and the DSS users that collects and interprets information for decision making.

04/20/23 Chapter 1 23

MIS versus DSSMIS versus DSS

MISMIS Structured Problems Use of Reports Rigid Structure Information Displaying

Restricted Can Improve Decision

Making by Clarifying Raw Data

MISMIS Structured Problems Use of Reports Rigid Structure Information Displaying

Restricted Can Improve Decision

Making by Clarifying Raw Data

DSSDSS Unstructured Problems Use of Models User-Friendly Interaction Adaptability Can Improve Decision

Making by Using “What If” Analysis

DSSDSS Unstructured Problems Use of Models User-Friendly Interaction Adaptability Can Improve Decision

Making by Using “What If” Analysis

04/20/23 Chapter 1 24

International Marketing ResearchInternational Marketing Research

Conducting international marketing researchinternational marketing research (research for truly international product), foreign research (research carried out in a country other than the country of the research-commissioning organization), or multinational research is much more complex than domestic marketing research.

Whether going online or setting up physical operations in a foreign country, research must be conducted so that relevant environmental factors are taken into consideration when going global.

04/20/23 Chapter 1 25

Ethics in Marketing ResearchEthics in Marketing Research

Most marketing research is conducted for clients representing commercial firms.

The profit motive may occasionally cause researchers or clients to compromise the objectivity or professionalism associated with the marketing research process.

Ethical issues arise when the interest of these stakeholders are in conflict and when one or more of the stakeholders (the marketing researcher, the client, the respondents, and the public) are lacking in their responsibilities.

04/20/23 Chapter 1 26

Internet and Computer Application Internet and Computer Application

The Internet Internet can be used as a sourcesource of marketing research providers; a source of secondary data; a source of marketing research software; and as a source for data gathering via focus groups, survey, etc.

One of the great advantagesgreat advantages of doing research on the Internet is that the data can be processed as fast as they come in.

The Internet is: also very useful for project management. very efficient for identifying marketing research firms

that supply specific services.