Chapter 1

An Introduction to
Marketing Research

What is online research?

Online research: the use of computer networks,

including the Internet, to assist in any phase of
the marketing research process including
development of the problem, research design,
data gathering, analysis, and report writing and
distribution

The Marketing Research Process: 11 Steps

Step One:

Step Two:
Step Three:
Step Four:
Step Five:

Step Six:

Establishing the Need for Marketing

Research
Defining the Problem
Establishing Research Objectives
Determining Research Design
Identifying Information Types and
Sources
Determining Methods of Accessing
Data

The Marketing Research Process: 11 Steps

cont

Step Seven:
Step Eight:
Step Nine:
Step Ten:
Step Eleven:

Designing Data Collection Forms

Determining Sample Plan and Size
Collecting Data
Analyzing Data
Preparing and Presenting the Final
Research Report

The Marketing Research Process

Step One: Establish the Need for Marketing Research

Marketing Research is not needed when the:

required information is already available
decisions need to be made now
organization cant afford the research
costs outweigh the value of the research

The Marketing Research Process

Step Two: Define the Problem

The most important step in the marketing

research process is defining the problem.

The Marketing Research Process

Step Three: Establish Research Objectives

What information is needed in order to solve the

problem?

The Marketing Research Process

Step Four: Determine Research Design

Exploratory Research: collecting information in

an unstructured and informal manner
Descriptive Research: refers to a set of methods
and procedures describing marketing variables
Causal Research (experiments and other
approaches): allows isolation of causes and
effects

The Marketing Research Process

Step Five: Identify Information Types and Sources

Secondary Data: information that has been

collected for some purpose other than the
research at hand
Primary Data: information that has been gathered
specifically for the research objectives at hand

The Marketing Research Process

Step Six: Determine Methods of Accessing Data

Secondary Data: accessing data through sources such as

the Internet and library
Primary Data: collecting data from participants through
methods such as telephone, mail, online, and face-to-face
(quantitative), and observation studies and focus groups
(qualitative)

The Marketing Research Process

Step Seven: Design Data Collection Forms

The design of the data collection form that is

used to ask or observe and record information in
marketing research projects is critical to the
success of the project.
It is easy to write a set of questions but very
difficult to construct a questionnaire.
General types of instruments (forms)
Questionnaires
Observation Study forms (protocols)

The Marketing Research Process

Step Eight: Determine Sample Plan and Size

Sample plan: refers to the process used to select

units from the population to be included in the
sample
Sample size: refers to determining how many
elements (units) of the population should be
included in the sample

The Marketing Research Process

Step Nine: Collect Data

Sound data collection is very important because,

regardless of the data analysis methods used,
data analysis cannot fix bad data. 12
Nonsampling errors may occur during data
collection. These are related to poor design
and/or execution of the data gathering.
Sampling errors may occur based purely on
chance

The Marketing Research Process

Step Ten: Analyze Data

Data analysis: involves entering data into

computer files, inspecting data for errors (data
cleaning), running tabulations (frequencies), and
conducting various statistical tests

The Marketing Research Process

Step Eleven: Prepare and Present the Final
Research Report

Findings are presented, often by research

objective, in a clear and concise way.
The need for a good report cannot be overstated.
It is the report, and/or its presentation, that
properly communicates the results to the client.

Scope of Marketing Research

Sales Analysis
Product Management
Advertising Research
Corporate Research
Syndicated Research

Growing Importance of Research in India

Monopolistic Business
Demand was more than Supply
Business was local; hence close to customers

Challenges faced in India

Countrys vast size

Diversity in the population
Infrastructure problem
Literacy Issues
Attitudinal problems

Marketing Research: A Brief History

Pre-Marketing Research Era: colonization to the

Industrial Revolution
Early Development Era: Industrial Revolution to 1920
Questionnaire Era: 1920-1940
Quantitative Era: 1940 to 1960
Organizational Acceptance Era: 1960 to 1980
PC Technology Era: 1980 to 1990
Globalization-Online Era: since 1990

Research Suppliers

Research Design
A Statement of Objectives
Data inputs required on the basis of which the
research problem has to be solved
Method of Analysis
Simply a BluePrint!

Types of Research Designs

Refer to Book 1, page 24
We must have one strong evidence to say that there
exist a strong association between an action
(causal variable) and ultimate outcome (effect
variable)
Action (causal variable) must precede outcome
(effect variable)
There must be no other possible factor (causal
factor) which could have resulted in the observed
outcome

Exploratory Research Design

Provides info to enable a more precise problem
definition or hypothesis formulation
Establishing research priorities
Gives researched a feel of the problem
Good start
Methods Used
Survey of literature
Survey of experienced individuals
Analysis of selected case situations

Descriptive Research Designs

Most commonly used
Combination of qualitative and quantitative
More formal as compared to Exploratory
Types
Panel Discussion
Focus Groups
Cross Sectional Designs

Quasi Experimental Designs

R = Random
X = Experimental Treatment
O = Observation

After-Only Without Control Group

XO
Also called one-shot case study
Test unit not selected at random
Single group is exposed to treatment and then
measurement is taken
Eg: Effect of training on sales force
No meaningful
No prior observation available for comparison
The level of O could be result of other factors in addition
of the effect of X

Before-After without Control Group

O1 X O2
Eg: Before training how did the sales perform in comparison
to after training
Limitation as does not consider:

Selection Bias: not randomly selected

History: Economic conditions may have improved
Maturation: Salesforce may have gained more experience
Testing: The pre-test measurement might have affected the
performance
Instrumentation: Prices may have changed during that period
Mortality: Some test units may have left during the period of training

The Static Group Comparison Design

Use of two groups

Group 1 exposed to treatment and Group 2 is not
Group 1 (experimental Group): X1 O1
Group 2 (Control Group): X2 O2
Note X2 is regular routine or program

Experiment result is obtained by O1 O2

Limitation: Groups not sleeted on random and some
test units may have left during the period of trainin

Time Series Design

Refer to fig in Book 1 page 34
Extension of one group pre-test and post-test
design
Periodic measurement are taken for the same
unit
Ex: Advertising campaigns effect on Market
Share
Refer the Dig.

Multiple Time Series Design

Experimental Group: O1 O2 O3 X O4 O5 O6
Control Group: O1 O2 O3 O4 O5 O6

Experimental Designs
After-only with One Control Group
Before-After with One Control Group
Four Group Design

Data Collection

Primary Versus Secondary Data

Primary data: information that is developed or

gathered by the researcher specifically for the
research project at hand
Secondary data: information that has previously
been gathered by someone other than the
researcher and/or for some other purpose than
the research project at hand

Classification of Secondary Data

Internal secondary data: data that have been

collected within the firm
Internal databases: databases (collection of data
and information describing items of interest)
consisting of information gathered by a company
typically during the normal course of business
transactions

Classification of Secondary Datacont.

External secondary data: data obtained from

outside the firm
Types:
Published
Syndicated Services Data
External Databases

Advantages of Secondary Data

Obtained quickly (compared to primary data

gathering)
Inexpensive (compared to primary data gathering)
Usually available
Enhances existing primary data

Disadvantages of Secondary Data

Mismatch of the units of measurement

Need daily data yet only monthly available, need incomes
of $75,000 and over only available $50,000 and over

Differing class definitions used Need users in

between heavy, medium or light users
Timeliness (how current is the secondary data)
Lack of information needed to assess the
credibility of the reported data (next slide)

Evaluating Secondary Data

What was the purpose of the study?

Who collected the information and when was this
done?
What information was collected (questions,
scales, etc.)?
How was the information obtained (sampling
frame, method of sample draw, communication
method, resulting sample, etc.)?
How consistent is the information with other
published information?

Basic Method of Data Collection

Structured & Direct
Questionnaire / Interviews

Unstructured & Direct

Sentence Completion/ Picture Interpretation/ Word
Association/ Focus groups

Structured & Indirect

Observations & Media

Unstructured & Indirect

Observations & Media

Sources of Error in Data Collection

Investigator
Personal Bias
Misinterpretation

Respondent
Ambiguity
Not true feedback provided

Sampling
Population: Entire Universe
Sampling Unit: List of those elements that can
be considered as Available for selection at
some stage
Sampling Frame: List of sampling units
Sample: Actual selection for research
Element: An individual item in the sample

Sampling Process
Define Population
Specify sampling frame
Choose appropriate sampling design
Non-probability Method
Probability Method

Determine sample size

Select actual members of sample

Probability Sampling

Simple Random sampling

Systematic sampling
Stratified sampling
Cluster Sampling

Non-probability Sampling Method

Convenience:
100 stores in one location
50 students in a class
One state in a country

Judgment: Researcher draws a sample that he thinks

is the representation of the population
Quota Sampling: Like Stratified sampling but the
difference is that the selection of sample in the quota
is not random (but judgment of researcher) the way it
is with Stratified sampling

Questionnaire Design
Questionnaire Format
Structure: Open ended/ Close Ended

Disguise
Mostly non-disguised questionnaires are used. At times
disguised questionnaires are designed in motivation
research to handle sensitive issues like attitude, aids
patience, abortion cases etc.

Method of Administration:
Personal Interview
Telephone
Email

Steps involved in Design

Preliminary Decisions
What info can be obtained from secondary data
Who is the Target Respondent

Type of Questionnaire &Method of Administration

Question Content

Is the question really essential?

Can respondent understand the question?
Can respondent answer the question?
Will respondent answer the question?

Question Phrasing

Are there any ambiguities in question framing?

Is there an implied answer/ alternative to the question
Are there any assumptions to be made to answer the question?
Will the respondent approach the question with the same frame of reference as
that of the designer?

Steps involved in Design

Form of response to each question
Open ended/ Close ended?

Sequence of questions
Simple and open ended
Logical sequence
Design Branching question with care

Lay-out of questionnaire
Pre-test Questionnaire

Constructing a Questionnaire
Refer Book 2, page 44

Avoid

Too long questionnaire

Too long questions
Using vocab unfamiliar to respondent
Ambiguous words
Combined questions

Qualitative Research
Exploratory or diagnostic in nature
Small number of people; usually nonprobabilistic method of sampling
Impressionistic rather than Definitive
Used to generate hypothesis for further
research
Better insights into consumers
Trained professionals required to carry research

Methods of Qualitative Research

In-depth Interviews
Focus Group Discussions
Projective Techniques

Word Association Test

Sentence Completion Test
Fantasy Situation
Cartoon Completion
Picture Interpretation

Observations

Data Procession
Editing of data
Field Editing
To be done as soon as the data is collected by field officer
Standardization is the objective
Care should be taken that data is not manipulated

Central Editing
To be done when all forms are collected and before they are sent to
the HQ
Standardization is the objective
Editor may correct obvious mistakes (like entry in wrong field etc.)
All incorrect and incomplete entries to be deleted
Respondent/ field office may be contacted for clarification

Coding of Data
Generally close ended questionnaires are coded at the
beginning; at the time of questionnaire design
What is your monthly income?

Less than 5,000

5,001 10,000
10,001 20,000
20,001 40,000
More than 40,001

What is your monthly income?

Coding of Data
Book no. 3, page 19

Classification of Data
FINO Report

Report Writing
FINO Report

Thank You