CHAPTER 1

INTRODUCTION AND PROCESSESS IN MARKETING RESEARCH

A. Introduction to Marketing Research

Learning Objectives:
1. Recognize that research is an integral component of marketing strategy
2. Define marketing research
3. Describe the development of marketing research as a profession
4. Explain how marketing research is incorporated into the marketing plan
5. Discuss the importance of conducting ethical research

1. Research and Marketing Strategy

 Marketing is a new field of academic study in comparison to subjects such as chemistry or

philosophy. However, marketing is not a new human activity.
 People have always produced goods that they wished to barter or sell for either another
needed product or money. To do so they need to find buyers. The field of marketing simply
takes this basic human behavior and plans its strategic implementation.
 While there are many definitions of marketing, the definition used by the American Marketing
Association on their website ([Link]) describes marketing as: Marketing
is an organizational function and a set of processes for creating, communicating, and
delivering value to customers and for managing customer relationships in ways that benefit
the organization and its stakeholders.
 The definition describes marketing as an exchange that satisfies both the seller (organization)
and the individual (buyer). Marketing is sometimes misunderstood as only selling, with the
organization convincing the buyer to purchase something they don’t want or need. While
selling is an important part of promotion, there would be no long-term gain for any organization
to focus only on selling their product.
 Therefore, marketing is much more than just the promotion of a product. The field can be
described as a circle with the customer in the middle surrounded by the four ‘Ps’ of promotion,
price, product and place. All four of these components of marketing must provide the customer
with a wanted or needed product at an acceptable price, in an appropriate place, and with
effective promotion. However, to accomplish this goal the organization must first listen to the
customer’s wants and needs.

1.1. Stages of marketing development

 Marketing has developed and evolved as social and business conditions have changed. An
early approach to marketing was focused only on the production of goods. When consumer
goods became more plentiful, the approach changed to selling as a means of convincing
consumers to buy.
 Companies using the production concept will emphasize the most efficient way to produce
products that provide high quality and low price. When using this approach companies see the
marketplace of consumers as a single group with similar needs who will purchase any well-
made, reasonably priced product.

2. Defining Marketing Research

The official definition of marketing research, according to the American Marketing Association,
can be found on the website [Link]

 Marketing research is the function which links the consumer, customer, and public to the marketer
through information – information used to identify and define marketing opportunities and
problems; generate, refine and evaluate marketing actions; monitor marketing performance; and
improve our understanding of marketing as a process.

 Marketing research specifies the information required to address these issues, designs the method
for collecting information, manages and implements the data collection process, analyzes the
results, and communicates the findings and their implications.

1|M a r k et i n g R e s ea r c h ( M M P 6 ) B S B A ma j o r i n M a r k et i n g M a n a g emen t
Prepared by Prof. KRISTOPHER TAYO VISAYA, MEntrep
C a t a n d u a n e s S t a t e U n i v e r s i t y |C o l l e g e o f B u s i n e s s a n d A c c o u n t a n c y
This definition may be meaningful to a marketing professional but may be difficult for someone
studying marketing to understand. The definition is easier to comprehend if the four ways research
can be used are explained individually:

 ‘Identify and define marketing opportunities and problems’ means using research to
explore the external environment.
 ‘Generate, refi ne and evaluate marketing actions’ means using research to determine
whether the company is meeting consumer needs.
 ‘Monitor marketing performance’ means using research to confirm whether the company
is meeting the goals it has set.
 ‘Understanding marketing as a process’ means using research to learn to market more
effectively
Although the AMA definition is a useful summary of all that marketing research can accomplish, a
simpler definition can be constructed. According to the dictionary, the word ‘research’ means to search
or investigate exhaustively or in detail. The thesaurus gives as a synonym for ‘research’ the word
‘inquiry’, which means the act of seeking truth, information or knowledge. So market research can be
defined as a detailed search for the truth. Marketing has always had the function of connecting the
internal structure of the organization with the external world. Marketing research is a formalization of
this role.
Research that is conducted can be divided into two types. Basic, or pure research, is conducted to
discover new knowledge. When the research is planned and conducted, its application or how the
knowledge might be used is not of major importance. What is important is that new information is
discovered. After the research has been conducted, how the information can be used is then
considered. Universities or very large corporations conduct most basic marketing research.
3. The Development of Marketing Research as a Profession

 At the beginning of the twentieth century there was a growth both in the number of universities
and also in the number of academic fields being taught. These new academic subjects, including
psychology and sociology, were interested in applying scientific methods to social problems in
ways that would help to explain human behavior. However, this interest in applying scientific
methods did not apply to purchase behavior and there was, as yet, no academic area of study
called ‘marketing’ or ‘marketing research’.
 Yet during the same time span, in the business world marketing research became a recognized
professional field. Throughout this period of economic history businesses were starting to grow
from small local or regional companies to larger national companies. Since they were now selling
their products over a wider geographic area it became more difficult for companies to identify and
understand their customers.
 Market researchers soon discovered that besides surveying and sampling, they could also borrow
additional techniques from the social sciences.

4. Marketing research today

 Students who have studied marketing research are often employed in the marketing departments
of large companies. Specialized marketing research firms also employ marketing research
professionals. These firms contract to provide market research for businesses and nonprofit
organizations that do not have the employees to conduct their own.
 Marketing research responsibilities with corporate marketing departments or with specialized firms
include conducting studies using methods that gather statistical information (quantitative studies).
Other professionals conduct studies that gather verbal and other types of data (qualitative). Most
marketing research jobs require skills in conducting both types of research.
 Job responsibilities within a marketing research firm or department at the lowest level will include
tabulating results and assisting in preparing final reports. Positions with more authority would
include analysts who plan research projects, analyze data and write the reports. Specialized
responsibilities would include people trained to conduct the research, such as focus group
moderators and statisticians who can use computers to work with large volumes of data.

2|M a r k et i n g R e s ea r c h ( M M P 6 ) B S B A ma j o r i n M a r k et i n g M a n a g emen t
Prepared by Prof. KRISTOPHER TAYO VISAYA, MEntrep
C a t a n d u a n e s S t a t e U n i v e r s i t y |C o l l e g e o f B u s i n e s s a n d A c c o u n t a n c y
5. Marketing Research and the Development of the Marketing Plan

Table 1. Components of Marketing Plan

The relationship between data, information and knowledge

 The purpose of research is to provide the knowledge needed to solve a problem and not just to
answer a question as to the cause of the problem. Too often researchers lose sight of this simple
fact. Instead they view research simply as a means of collecting data. As a result, a complex
research study is designed that gathers a great amount of data about a problem. These data are
then bound with a strikingly designed cover and given to management – along with a large bill
for the service. It is then assumed that management will be able to turn such data into the answer
they need to solve their problem.

 While the research process might have been rewarding for researchers, those managing the
organization will be left dissatisfied. Managers need more than raw data. They need information
that explains the causes of a problem and then the knowledge that provides answers to the
problem. The analysis of the data is just as important as its collection. This relationship is
demonstrated in Figure 1 below.

Table 1. Relationship between Data and Knowledge

6. Ethics in Marketing Research

 Ethics provide a system that helps a person to determine what is right and good from what
is wrong and bad. Ethics also provide an individual with guidelines that will help in making
decisions.
 The ethical system a person uses for making decisions in his or her personal life most
likely is the result of family or educational influence, or both of these. However, the ethical
behavior of people continues to be shaped by their environment, even as adults. This
includes the environment in which they work (Barnett and Valentine, 2004).
 An ethical system for employees of an organization is often called a code of conduct. If a
company employs a researcher and does not have a code of ethical conduct, the
researcher can use a code produced by a research association or society.
 An ethical system for employees of an organization is often called a code of conduct. If a
company employs a researcher and does not have a code of ethical conduct, the
researcher can use a code produced by a research association or society.
3|M a r k et i n g R e s ea r c h ( M M P 6 ) B S B A ma j o r i n M a r k et i n g M a n a g emen t
Prepared by Prof. KRISTOPHER TAYO VISAYA, MEntrep
C a t a n d u a n e s S t a t e U n i v e r s i t y |C o l l e g e o f B u s i n e s s a n d A c c o u n t a n c y
 Guidelines for conducting ethical research
 Never conduct research where the search for truth is compromised
 Always be honest with research participants
 At all times protect participants from harm

4|M a r k et i n g R e s ea r c h ( M M P 6 ) B S B A ma j o r i n M a r k et i n g M a n a g emen t
Prepared by Prof. KRISTOPHER TAYO VISAYA, MEntrep
C a t a n d u a n e s S t a t e U n i v e r s i t y |C o l l e g e o f B u s i n e s s a n d A c c o u n t a n c y