What is Marketing Research?

The marketing concept says that marketing managers should meet

the needs of consumers. Yet today, many marketing managers are iso-

lated in company offices – far from potential customers. It is just not

possible for managers to keep up with all of the changes taking place in

their markets.

This means marketing managers have to rely on help from marketing

research – procedures to develop and analyze new information to help

marketing managers make decisions. One of the important jobs of a mar-

keting researcher is to get the “facts” that are not currently available in the

MIS (marketing information system).

Continued improvements in research methods are making marketing

research information more dependable. This has encouraged firms to put

more money and trust in research. Managers in some consumer product

companies don’t make any major decisions without the support – and

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sometimes even the official approval – of the marketing research depart-

ment. As a result, some marketing research directors rise to high levels

in the organization.

Most large companies have a separate marketing research department

to plan and carry out research projects. These departments often use

outside specialists – including interviewing and tabulating services – to

handle technical assignments.

Small companies usually don’t have separate marketing research de-

partments. They often depend on their salespeople or managers to con-

duct what research they do.

The basic reason for doing marketing research is to get information

that people can trust in making decisions.

Good marketing research requires much more than just technical

tools. It requires cooperation between researchers and marketing mana-

gers. Good marketing researchers must keep both marketing research and

marketing management in mind to be sure their research focuses on real

problems.

Marketing managers must be involved in marketing research too.

Many marketing research details can be handled by company or out-

side experts. But marketing managers must be able to explain what their

problems are – and what kind of information they need. They should be

able to communicate with specialists in the specialists’ language. Mar-

keting managers may only be “consumers” of research. But they should

be informed consumers – able to explain exactly what they want from

the research. They should also know about some of the basic decisions

made during the research process so they know the limitations of the

findings.

The marketing research process is a five-step application of the sci-

entific method that includes:

1. Defining the problem.

2. Analyzing the situation.

3. Getting problem-specific data.

4. Interpreting the data.

5. Solving the problem.

Defining the problem is the most important – and often the most dif-

ficult – step in the marketing research process. Sometimes it takes over

half the total time spent on a research project. But it’s time well spent if

the objectives of the research are clearly defined. The best research job

on the wrong problem is wasted effort.

When the marketing manager thinks the real problem has begun to

surface, a situation analysis is useful. A situation analysis is an informal

study of what information is already available in the problem area. It can

help define the problem and specify what additional information – if any

is needed.

The situation analysis usually involves informal talks with informed

people. Informed people can be others in the firm, a few good middle-

men who have close contact with customers, or others knowledgeable

about the industry. In industrial markets – where the relations with cus-

tomers are close – researchers may even call the customers themselves.

Their inputs can help to sharpen the problem definition too.

The next step is to plan a formal research project to gather primary

data. There are different methods for collecting primary data. Which ap-

proach to use depends on the nature of the problem and how much time

and money are available.

In most primary data collection, the researcher tries to learn what cus-

tomers think about some topic – or how they behave under some condi-

tions. There are two basic methods of obtaining information about cus-

tomers: questioning and observing. Questioning can range from qualita-

tive to quantitative research. And many kinds of observing is possible.

It’s usually impossible for marketing managers to collect all the infor-

mation they want about everyone in a population – the total group they

are interested in. Marketing researchers typically study only a sample, a

part of the relevant population. How well a sample represents the total

population affects the results. Results from a sample that is not represen-

tative may not give a true picture.

In the problem-solution step, managers use the research results to

make marketing decisions. Some researchers – and some managers –

are fascinated by the interesting tidbits of information that come from

the research process. They are excited if the research reveals something

they didn’t know before. But if research doesn’t have action implica-

tions, it has little value -- and suggests poor planning by the researcher

and the manager.

When the research process is finished, the marketing manager should

be able to apply the findings in marketing strategy planning – the choice

of a target market or the mix of the four Ps. If the research doesn’t pro-

vide information to help guide these decisions, the company has wasted

research time and money.

This step is very important because it is the reason for and logical

conclusion to the whole research process. This final step must be antici-

pated at each of the earlier steps.

Use the above text and say which statements are false and which are

true. Correct the false ones.

1. It is possible for managers to keep up with all the changes taking

place in their markets.

2. Managers in some consumer product companies make any major

decisions without the support of the marketing research department.

3. The basic reason for doing marketing research is to get information

that people can trust in making decision.

4. Many marketing research details can be handled by company or

outside experts.

5. Defining the problem is the most important – and often the easi-

est – step in the marketing research process.

6. The situation analysis usually involves informal talks with consumers.

7. There are two basic methods of obtaining information about cus-

tomers: questioning and observing.

8. Marketing researchers typically study only a sample, a part of the

relevant population.

9. In the situation analysis step, managers use the research results to

make marketing decisions.

10. When the research process is finished, the marketing manager

should be able to apply the findings in the marketing strategy planning.

Text 4

Read the text and get ready to define all the variables in the marketing mix: Product,

Price, Promotion, Place. Give some examples of product decisions marketing managers

make: Place decisions. Promotion decisions. Price decisions.