INTRODUCTION TO MARKETING RESEARCH

Copyright © 2015 Pearson Education, Inc. Publishing as Prentice Hall 1

CHAPTER 1

INTRODUCTION TO MARKETING RESEARCH

LEARNING OBJECTIVES

• Define marketing research and distinguish between problem identification and problem-

solving research.

• Describe a framework for conducting marketing research as well as the six steps of the

marketing research process.

• Understand the nature and scope of marketing research and its role in designing and

implementing successful marketing programs.

• Explain how the decision to conduct marketing research is made.
• Discuss the marketing research industry and the types of research suppliers, including

internal, external, full-service, and limited-service suppliers.

• Describe careers available in marketing research and the backgrounds and skills needed

to succeed in them.

• Explain the role of marketing research in decision support systems.
• Acquire an appreciation of the international dimension and the complexity involved in

international marketing research.

• Describe the use of social media as a domain to conduct marketing research.
• Gain an understanding of the ethical aspects of marketing research and the

responsibilities each of the marketing research stakeholders have to themselves, one another, and the research project.

AUTHOR'S NOTES: CHAPTER FOCUS

This introductory chapter provides an overview of the nature and scope of marketing research. It gives a definition and classification of marketing research. An overview of the marketing research process is presented. Marketing research suppliers and services and careers in marketing research are covered. The role of MIS and DSS is described and international marketing research is introduced. The role of social media and ethical considerations, topics of current relevance, are discussed.While similar in many ways to the material in competing texts, this chapter is different in that it presents a classification of marketing research (Figure 1.2). The classification of marketing research suppliers and services is also unique (Figure 1.5). Furthermore, the concepts of MIS, DSS, international marketing research, social media, and ethics are introduced in the first chapter, rather than later in the text. Internet applications are emphasized.This chapter could be taught by focusing on the Learning Objectives, sequentially.Greater emphasis could be placed on the definition and classification (Learning Objective 1), the marketing research process (Learning Objective 2), and the nature and scope of marketing research (Learning Objective 3). The types and roles of research suppliers (Learning Objective 1 / 4

Copyright © 2015 Pearson Education, Inc. Publishing as Prentice Hall 2 5) should also be emphasized. The use of the Internet and relevant software could be demonstrated in the class.

CHAPTER OUTLINE

• Overview
• Definition of Marketing Research
• A Classification of Marketing Research
• Marketing Research Process
• The Role of Marketing Research in Marketing Decision Making
• The Decision to Conduct Marketing Research
• An Overview of the Marketing Research Industry
• Selecting a Research Supplier
• Careers in Marketing Research
• The Role of Marketing Research in MIS and DSS
• International Marketing Research
• Social Media and Marketing Research
• Ethics in Marketing Research
• Summary
• Key Terms and Concepts
• Acronyms

TEACHING SUGGESTIONS

Learning Objective 1

• Give a definition of marketing research and illustrate it with an example.

Define marketing research as the systematic and objective identification, collection, analysis, and dissemination of information for the purpose of assisting management in decision making related to the identification and solution of problems (and opportunities) in marketing.

1. Identification: involves defining the marketing research problem (or

opportunity) and determining the information that is needed to address it.

2. Collection: data must be obtained from relevant sources.

3. Analysis: data are analyzed, interpreted, and inferences are drawn.

• Dissemination of information: the findings, implications, and recommendations

are provided in a format that makes this information actionable.

• Use of information: the findings, implications, and recommendations are used as

an input into decision making.

Any of the examples in the book may be expanded on and used to illustrate the components of the definition.

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Copyright © 2015 Pearson Education, Inc. Publishing as Prentice Hall 3

• Explain and illustrate the classifications of marketing research.

• Problem identification research - the goal is to identify existing or potential

problems not apparent on the surface. Examples include market potential, market share, market characteristics, sales analysis, short-range forecasting, long range forecasting, and business trends research.

• Problem solution research - the goal is to solve specific marketing problems such

as segmentation, product, pricing promotion, and distribution research.

Figure 1.2 displays this classification scheme.

Learning Objective 2

• Describe the rationale for the steps involved in the marketing research

process.

Emphasize the importance of these steps since the entire research project will be conducted within this framework. Each step will be discussed more fully throughout the course and this is simply an introduction to the general research process.

• Problem definition: defining the marketing research problem to be addressed is

the most important step because all other steps will be based on this definition.

2. Developing an approach to the problem: development of a broad specification

of how the problem will be addressed allows the researcher to break the problem into salient issues and manageable pieces.

3. Research design formulation: a framework for conducting the marketing

research project that specifies the procedures necessary for obtaining the required information. It details the statistical methodology needed to solve the problem and thus the data requirements needed from data collection.

• Field work or data collection: a field force (personal interviewing, phone, mail

or electronic surveys) gathers project data. While seemingly trivial in nature, to obtain meaningful results field workers must be accurate and thorough in data collection.

• Data preparation and analysis: the editing, coding, transcription, verification,

and analysis of data allow researchers to derive meaning from the data.

6. Report preparation and presentation: the findings are communicated to the

client. The report should address the specific research questions identified in the problem definition, describe the approach, the research design, data collection and the data analysis procedures adopted, and present the results and the major findings.

Learning Objective 3

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• Describe the nature of marketing research and illustrate its components

with examples.

Emphasize that marketing research provides the information for decision makers at each step of the marketing decision process. It is the goal of marketing research to provide relevant, accurate, reliable, valid and current information to management in order to facilitate managerial

decisions. Each of these characteristics can be defined for students as:

Information that is relevant addresses the problem or issue being investigated.Information that is accurate, correct and precise.Information that is reliable, and originates from competent, trustworthy sources.Information that is valid is applicable to the problem at hand.Information that is current is timely and up-to-date for both the industry and issue under consideration.

Learning Objective 4

• Discuss the considerations that guide the decision to conduct marketing

research.

This decision should be guided by a number of considerations, including the costs versus the benefits, the resources available to conduct the research, the resources available to implement the research findings, and management's attitude toward research. Marketing research should be undertaken when the expected value of information it generates exceeds the costs of conducting the marketing research project.

Learning Objective 5

• Describe the two types of marketing research suppliers.

Categorize the two types of suppliers by their relationship to the client. Thus, they may be internal or external.Internal supplier - a marketing research department located within the firm where all the marketing research staff members are employees of the firm. Most major corporations have their own marketing research departments.External supplier - research suppliers that are not a part of the firm. The external supplier may offer the entire range of marketing services including problem definition, developing an approach, questionnaire design, sampling, data collection, data analysis, interpretation, and report preparation and presentation.

Figure 1.5 shows this classification.

• List the services offered by a full service marketing research supplier.
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