MR - Marketing Research Process [LESSON]

Marketing Research Process

Considering the relatively short span of time in which marketing research has developed since the 1930s, it is quite remarkable that so sophisticated and thorough a collection of procedures and techniques should have been developed.
There is no single set of steps in a market research procedure that is accepted by all. Indeed, each marketing research problem requires, to some degree, its own peculiar procedure. However, there is general agreement that four major activities should be performed in a thorough marketing research project. These are:

Determining the Purpose and Scope of the Research (Defining the Problem)

The basic and critical problem in marketing research is seldom the problem that appears on the surface. It is therefore necessary to explore beneath the surface to ascertain the nature and size of the problem. This is the vital first step and must be done correctly, since every subsequent phase of the project is directed at solving the basic problem. For the research to be worthwhile (indeed, for it not to be a waste of resources), the problem must be stated clearly and correctly. Failure to do so is the most serious of mistakes in this project.
Correctly defining the research problem should lead to the establishment of the research parameters. A research study could be restricted by function (advertising); customer group (heavy users); market (Far East); and time frame (1999-2001). Because research is so costly, it is imperative that parameters are established and maintained.

Creating the Research Design (Obtaining the Data)

The design of a marketing research project is the plan proposed for testing the research questions as well as collecting and processing information. The administration of the project according to the design insures that the fact-finding process will be adequately controlled. "Design" means more than simply using good market research procedures. Every research project should be individually designed to produce the kinds of information needed to solve a particular problem. For this reason, no two market research projects are ever exactly alike.
Four steps are involved in creating a research design: choosing the approach, determining types of data needed, locating data sources, and selecting the sample.

Choosing the Approach

Three alternative approaches are possible in creating a research design: the survey method, the observation method, and the experimental method.

In the survey approach, marketing information is collected through the use of surveys or questionnaires. Surveys can be answered individually or by an interviewer, either in writing or orally.

In the observation approach, marketing information is gathered by cameras or observers watching the actions of people. If this is properly done, the results can be better than results collected with the survey method.

In the experimental approach, marketing information is a technique where the researcher observes the results of changing one or more variables while keeping all the other variables consistent.

Determining the Types of Data Needed

Three types of data are used: facts, opinions, and motivational information. The types of data required are partly identified by the nature of the problem to be solved.

If the problem relates to production and inventory scheduling, the facts that are needed relate to market and sales potential.

If the problem revolves around the choice between two new products, the opinions of potential customers are important considerations.

If a problem involves the choice of an appropriate selling appeal, buyers' motivations are probably the most important.

Facts are quantitative or descriptive information that can be verified. Opinions are ideas relating to a problem that are expressed by people involved in the solution. Motivations are basic reasons, recognized or unrecognized, that explain action. They are extremely difficult to discover.

Locating the Sources of Data

There are two general sources of data, secondary sources and primary sources. These were discussed in lesson one of this module.

Selecting the Sample

In most marketing research, it is seldom necessary to conduct a complete census or talk to 100% of the target segment. To do so is time-consuming and expensive. For this reason most marketing surveys make use of samples*. The value of a research project is directly affected by how well the sample has been conceived and constructed.

• Samples - ''A sample is a group of elements (persons, stores, financial reports) chosen from among a ''total population'' or ''universe.''

Process the Data (Analyzing Results)

Processing the data obtained in a market survey involves transforming the information obtained into a report to be used by management. Four steps are involved: (1) editing the data; (2) tabulating the data; (3) interpreting data; and (4) presenting the report. If, in the anticipation of the results of the survey, the procedures for handling the data have been organized, these final four steps in the research procedure may be quite mechanical. A good plan for the analysis and interpretation of the data is important in bringing a project to a successful conclusion.

Report the Results (Apply Results)

After the research has been concluded and actions have been taken, the changes should be monitored carefully. A business needs to know if the actions are successful or not. If the results lead to higher profits like increased sales, greater efficiency, or reduced expenses the research was successful.

Marketing Research Process Activity

 

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