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LEARNING OBJECTIVES
In this chapter, we will address the following questions:
1. What is the scope of marketing research?
2. What steps are involved in conducting good marketing research?
3. What are the best metrics for measuring marketing productivity?
CHAPTER SUMMARY
1. Companies can conduct their own marketing research or hire other companies to
do it for them. Some of ways companies can creatively and affordably conduct research
2. Good marketing research is characterized by the scientific method, creativity,
3. The marketing research process consists of defining the problem, decision
4. In conducting research, firms must decide whether to collect their own data or use
data that already exist. They must also choose a research approach (observational, focus
5. Two complementary approaches to measuring marketing productivity are: (1)
marketing metrics to assess marketing effects and (2) marketing-mix modeling to
6. Assessing the ROI of social media is challenging but requires a range of short-
term and long-term financial and brand-related measures. Although Facebook “likes” and
Twitter tweets provide some sense of the engagement for a brand, a more complete set of
measures is typically needed to get a more accurate picture of social media or other
online activities.
C H A P T E R
4
CONDUCTING
MARKETING RESEARCH
OPENING THOUGHT
Marketing research is a process in which consumers’ thoughts, actions, and purchase
intentions are collected to form the basis of marketing decisions. Most students will relate to
marketing research techniques where the insights are gained directly from a process of
transcribing and reviewing responses - focus groups for instance - but will shy away from the
quantitative techniques/number crunching. If the analysis is presented as a “means to an end”
– a way to gain insights that make marketing decision making easier - then the process should
be accepted with greater enthusiasm.
TEACHING STRATEGY AND CLASS ORGANIZATION
PROJECTS
1. At this point in the semester-long marketing plan project, the students’ initial marketing
2. Commission a marketing research study on topic(s) of interest to the students at your
institution. During the course of the semester (15-16 weeks), have the students develop the
3. Sonic PDA Marketing Plan: Sonic has developed a sales forecast for its new PDA for the
next two years. Jane Melody wants to review estimates of industry demand for PDAs. She
also wants to develop an approach for measuring the effectiveness of Sonic’s marketing
efforts. She has asked you to:
• Determine, from available secondary data, estimates of total demand for PDAs for the
Enter the answers to these questions in a written marketing plan or into the Sales Forecasting
and Controls sections of Marketing Plan Pro.
ASSIGNMENTS
Ask students to contact a local marketing research firm in the area for the purpose of an
interview regarding research techniques, methods, and the difficulties in conducting research.
Pre-approve the set of questions prepared by the students prior to the appointment. Ensure that
the students will be able to collect information from the research company regarding how
information is collected. Once it is collected, what are some of the difficulties faced by the
researcher in presenting this information to the client?
The American Airlines case shows the power of conducting marketing research before
offering a service. In small groups for an in-class discussion, have the students comment on
the case in light of the marketing research process examined in the chapter. a
Have students watch this video on the concept of “neuromarketing” and comment on whether
END-OF-CHAPTER SUPPORT
MARKETING DEBATE—What Is the Best Type of Marketing Research?
Many market researchers have their favorite research approaches or techniques, though
different researchers often have different preferences. Some researchers maintain that the only
way to really learn about consumers or brands is through in-depth, qualitative research. Others
contend that the only legitimate and defensible form of marketing research uses quantitative
measures.
Take a position: The best marketing research is quantitative in nature versus the best
marketing research is qualitative in nature.
Suggested Response
Pro: People are complex in their buying habits and purchase decision-making. Consumers, do
not always have the capacity to voice, or understand how they decide to purchase a particular
The drawbacks of quantitative research, which include selection bias, response bias, and non-
response, will always allow this type of research to be criticized for such shortcomings and
their results discounted. Qualitative research, although having its own sets of disclaimers,
closely describes the actions of consumers—that is what marketing is all about in the first
place—to get someone to purchase something.
Con: Quantitative research is the only accepted method of marketing research that can be
scientifically defended. Quantitative research methods, techniques, and modeling have
advanced substantially in recent years. Along with these advancements in techniques,
MARKETING DISCUSSION
When was the last time you participated in a survey? How helpful do you think the
information was you provided? How could the research have been done differently to make it
more effective?
Marketing Excellence: IDEO
1) Why has IDEO been so successful?
2) What is the most difficult challenge they face in conducting their research and
designing their products?
3) In the end, IDEO creates great solutions for companies that then receive all the credit.
Should IDEO try to create more brand awareness for itself? Why or why not?
Suggested Answers: Students’ answers will vary—some will say “yes” and others will
say “no.” Both sets of answers should reflect on the nature of the company, its products,
Marketing Excellence: INTUIT
Questions:
1) Why are consumer research and design thinking so critical to Intuit’s success?
2) What are the challenges Intuit faces in the near future?
3) How important are Intuit’s products for mobile devices?
DETAILED CHAPTER OUTLINE
To make the best possible tactical decisions in the short run and strategic decisions in the long
run, marketers need timely, accurate, and actionable information about consumers,
competition, and their brands. Samsung used insights to develop the campaign for the launch
of the Galaxy S III smart phone.
I. The Scope of Marketing Research
A. Marketing research is the function that links the consumer, customer, and public to
the marketer through information
i. The information is used to identify and define marketing opportunities and
problems; generate, refine and evaluate marketing actions; monitor
marketing performance; and improve understanding of marketing as a
process.
ii. 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.
B. Importance of Marketing Insights
i. Marketing insights provide diagnostic information about how consumers
and markets behave, why we observe certain effects in the marketplace
and what that means to marketers
ii. Marketing insights can form the basis for successful marketing programs,
and gaining insights is crucial for marketing success
C. Who Does Marketing Research?
i. Most large companies have their own marketing research departments,
which often play crucial roles within the organization.
ii. Smaller companies use everyone to carry out marketing research,
including customers, and they hire research firms or use affordable
methods like:
2. Using the Internet
4. Tapping into marketing partner expertise
1. Syndicated-service research firms
3. Specialty-line marketing research firms
D. Overcoming Barriers to the Use of Marketing Research
i. Many companies still fail to use marketing research sufficiently or
correctly
ii. An example of a marketing research failure was research that predicted the
failure of Star Wars
II. The Marketing Research Process
A. Step 1: Define the Problem, the Decision Alternatives, and the Research
Objectives
i. Do not define the problem too broadly or too narrowly
B. Step 2: Develop the Research Plan
i. Develop the most efficient plan for gathering needed information
ii. Discover what it will cost to execute the plan
iii. Consider data sources
1. Secondary data – collected for another purpose; already exists
2. Primary data – freshly gathered for a specific purpose or project
iv. Consider research approaches
1. Observational research
3. Focus group research
5. Behavioral research
v. Choose research instruments
1. Questionnaires
a. Closed-end questions specify all possible answers
i. Dichotomous
ii. Multiple choice
iii. Likert
b. Open-end questions allow respondents to answer in their
own words
i. Completely unstructured
ii. Word association
2. Qualitative measures
a. ZMET
3. Technological devices
a. Galvanometers
b. Tachistoscopes
c. Eye tracking
vi. Choose a sampling plan
1. Sampling unit: whom should we survey?
2. Sample size: How many people should we survey?
3. Sampling procedure: How should we choose the respondents?
vii. Choose a contact method
2. Telephone contacts
4. Online contacts
5. Online research pros:
a. Inexpensive
6. Online research cons:
a. Samples can be small and skewed
b. Online panels and communities can suffer from excessive
turnover
c. Online market research can suffer technological problems
and inconsistencies
C. Step 3: Collect the Information
i. Most expensive and error-prone phase
ii. Need to achieve consistency is one of the biggest obstacles
D. Step 4: Analyze the Information
E. Step 5: Present the Findings
F. Step 6: Make the Decision
G. Good marketing research
i. Uses the principles of the scientific method
ii. Is creative
iii. Does not rely on one method; uses two or three to increase confidence in
the results
iv. Recognizes that data are interpreted from underlying models that guide
information sought
v. Balances cost and value of information
vi. Avoids glib assumptions/has a healthy skepticism
vii. Is Ethical
H. A marketing decision support system (MDSS) is a coordinated collection of data,
III. Measuring Marketing Productivity
A. Marketing metrics assess marketing effects
i. Help marketers quantify, compare and interpret performance
ii. Marketers choose one or more measures based on the issues they face
iii. Examples:
2. Social media presence
4. Short-term financial benefits
6. Long-term brand lift
8. Sales turnover
10. Customer awareness, attitudes and behaviors
12. Relative price premium
14. Distribution and availability
16. Perceived quality
17. Loyalty and retention
B. Marketing-mix modeling estimates causal relationships and measure how
marketing activity affects outcomes
i. Data analyzed from sources like retailer scanner data, company shipment
data, pricing, media and promotion spending data
ii. Understand/isolate effects of marketing activities and allocate or reallocate
expenditures
iii. Cons:
2. Focuses on incremental growth instead of baseline sales or long-
term effects
4. Generally fails to incorporate metrics related to competitors, trade,
or sales force
C. Marketing dashboards are a structured way to disseminate insights gleaned from
1. Customer metrics pathway
3. Cash-flow metrics pathway
