Exploring

Marketing Research
Chapter 1: William G. Zikmund
The Nature of
Marketing Research
.

Marketing Research Defined

Marketing research is defined as: the systematic
and objective process of generating information
for aid in making marketing decisions.
This process includes:
specifying what information is required;
designing the method for collecting information;
managing and implementing the collection of data;
analyzing the results; and
communicating the findings and their implications.
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The Nature of Marketing Research

Marketing research is one of the principal tools for
answering questions because it:
Links the consumer, customer, and public to the market through
information used to identify and define marketing
Generates, refines, and evaluates marketing actions
Monitors marketing performance
Underlines the understanding of marketing as a process

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INFORMATION
REDUCES

I dont know
if we should
enter the
Australian
Market.

UNCERTAINTY

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. All rights reserved.

Marketing Research Types

Basic Research
Applied Research

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Basic Research
Attempts to expand the limits of knowledge
Not directly involved in the solution to a
pragmatic problem

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Basic Research Example

Do consumers experience cognitive dissonance in
low-involvement situations?

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Applied Research
Conducted when a decision must be made about a
specific real-life problem

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Applied Research Example

Should McDonalds add Italian pasta dinners to its
menu?
Marketing research told McDonalds it should
not?
Should McDonalds add a Whopper Stopper
burger to its menu?
The MBX is now being researched.

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Scientific Method
The analysis and interpretation of empirical
evidence (facts from observation or
experimentation) to confirm or disprove prior
conceptions

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Stages in Developing and Implementing

a Marketing Strategy
Identifying and evaluating opportunities
Analyzing market segments and selecting target
markets
Planning and implementing a marketing mix
Analyzing market performance

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Identifying and Evaluating

Opportunities
Examples:
Mattel Toys investigates desires for play experiences
Home cooking is on the decline. Purchase of precooked
home replacement meals is on the rise
Number of investors trading stock on the Internet is
growing

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Analyze Market Segments and

Select Target Markets
Examples:
Cadillac investigates buyers demographic characteristics
MTV, monitoring demographic trends, learns the Hispanic
audience is growing rapidly
Sears learns women, age 25-54 with average household
income of $38,000, are core customers. Targets this market
with softer side of Sears.

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Plan and Implement

a Marketing Mix
Price: Safeway does a competitive pricing analysis
Distribution: Caterpillar Tractor Co. investigates dealer
service program
Product: Oreo conducts taste test, Oreo cookie vs. Chips
Ahoy
Promotion: How many consumers like Always Coca
Cola! slogan?

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Analyze Marketing Performance

This years market share is compared to last
years.
Did brand image change after new advertising?

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Performance-Monitoring Research
Research that regularly provides feedback for
evaluation and control
Indicates things are or are not going as planned
Research may be required to explain why
something went wrong

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Determining When to Conduct

Marketing Research

Time Constraints
Availability of Data
Nature of the Decision
Benefits versus Costs

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Determining When to Conduct

Marketing Research
Time Constraints

Availability of Data

Is sufficient
time
available?

Information
already on
hand
inadequate?

No

Yes

No

Nature of the Decision

Yes

Is the
decision of
strategic
or tactical
importance?

Yes

No

Benefits vs. Costs

Does the
information Yes
value
exceed the
research cost?

Conduct
Marketing
Research

No

Do Not Conduct Marketing Research

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Potential value of a marketing research effort should exceed its

estimated costs
Costs
Value
Decreased Uncertainty
Increased Likelihood of
a Correct Decision
Improved Marketing
Performance and
Resulting Higher Profits

Research
Expenditures
Delay of Marketing
Decision and
Possible Disclosure
of Information to
Rivals
Possible Erroneous
Research Results

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Global Research
Marketing Research is increasingly global
Market knowledge is essential
A.C. Nielsen - more than 60% international
business

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Global Marketing Research

General information about country - economic
conditions and political climate
Cultural and consumer factors
Market and competitive conditions - demand
estimation

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