concept about marketing research

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Market Research: What it Is, Methods, Types & Examples

Would you like to know why, how, and when to apply market research? Do you want to discover why your consumers are not buying your products? Are you interested in launching a new product, service, or even a new marketing campaign, but you’re not sure what your consumers want?

LEARN ABOUT: Market research vs marketing research

To answer the questions above, you’ll need help from your consumers. But how will you collect that data? In this case and in many other situations in your business, market research is the way to get all the answers you need.

In this ultimate guide about market research, you’ll find the definition, advantages, types of market research, and some examples that will help you understand this type of research. Don’t forget to download the free ebook available at the end of this guide!

LEARN ABOUT: Perceived Value

Content Index

Three key objectives of market research

Why is market research important.

• Types of Market Research: Methods and Examples

Steps for conducting Market Research

Benefits of an efficient market research, 5 market research tips for businesses, why does every business need market research, free market research ebook, what is market research.

Market research is a technique that is used to collect data on any aspect that you want to know to be later able to interpret it and, in the end, make use of it for correct decision-making.

Another more specific definition could be the following:

Market research is the process by which companies seek to collect data systematically to make better decisions. Still, its true value lies in the way in which all the data obtained is used to achieve a better knowledge of the market consumer.

The process of market research can be done through deploying surveys , interacting with a group of people, also known as a sample , conducting interviews, and other similar processes.  

The primary purpose of conducting market research is to understand or examine the market associated with a particular product or service to decide how the audience will react to a product or service. The information obtained from conducting market research can be used to tailor marketing/ advertising activities or determine consumers’ feature priorities/service requirement (if any).

LEARN ABOUT: Consumer Surveys

Conducting research is one of the best ways of achieving customer satisfaction , reducing customer churn and elevating business. Here are the reasons why market research is important and should be considered in any business:

• Valuable information: It provides information and opportunities about the value of existing and new products, thus, helping businesses plan and strategize accordingly.
• Customer-centric: It helps to determine what the customers need and want. Marketing is customer-centric and understanding the customers and their needs will help businesses design products or services that best suit them. Remember that tracing your customer journey is a great way to gain valuable insights into your customers’ sentiments toward your brand.
• Forecasts: By understanding the needs of customers, businesses can also forecast their production and sales. Market research also helps in determining optimum inventory stock.
• Competitive advantage: To stay ahead of competitors market research is a vital tool to carry out comparative studies. Businesses can devise business strategies that can help them stay ahead of their competitors.

LEARN ABOUT: Data Analytics Projects

Types of Market Research: Market Research Methods and Examples

Whether an organization or business wishes to know the purchase behavior of consumers or the likelihood of consumers paying a certain cost for a product segmentation , market research helps in drawing meaningful conclusions.

LEARN ABOUT: Behavioral Targeting

Depending on the methods and tools required, the following are the types:

1. Primary Market Research (A combination of both Qualitative and Quantitative Research):

Primary market research is a process where organizations or businesses get in touch with the end consumers or employ a third party to carry out relevant studies to collect data. The data collected can be qualitative data (non-numerical data) or quantitative data (numerical or statistical data).

While conducting primary market research, one can gather two types of information: Exploratory and Specific. Exploratory research is open-ended, where a problem is explored by asking open ended questions in a detailed interview format usually with a small group of people, also known as a sample. Here the sample size is restricted to 6-10 members. Specific research, on the other hand, is more pinpointed and is used to solve the problems that are identified by exploratory research.

LEARN ABOUT: Marketing Insight

As mentioned earlier, primary market research is a combination of qualitative market research and quantitative market research. Qualitative market research study involves semi-structured or unstructured data collected through some of the commonly used qualitative research methods like:

Focus groups :

Focus group is one of the commonly used qualitative research methods. Focus group is a small group of people (6-10) who typically respond to online surveys sent to them. The best part about a focus group is the information can be collected remotely, can be done without personally interacting with the group members. However, this is a more expensive method as it is used to collect complex information.

One-to-one interview:

As the name suggests, this method involves personal interaction in the form of an interview, where the researcher asks a series of questions to collect information or data from the respondents. The questions are mostly open-ended questions and are asked to facilitate responses. This method heavily depends on the interviewer’s ability and experience to ask questions that evoke responses.

Ethnographic research :

This type of in-depth research is conducted in the natural settings of the respondents. This method requires the interviewer to adapt himself/herself to the natural environment of the respondents which could be a city or a remote village. Geographical constraints can be a hindering market research factor in conducting this kind of research. Ethnographic research can last from a few days to a few years.

Organizations use qualitative research methods to conduct structured market research by using online surveys , questionnaires , and polls to gain statistical insights to make informed decisions.

LEARN ABOUT: Qualitative Interview

This method was once conducted using pen and paper. This has now evolved to sending structured online surveys to the respondents to gain actionable insights. Researchers use modern and technology-oriented survey platforms to structure and design their survey to evoke maximum responses from respondents.

Through a well-structured mechanism, data is easily collected and reported, and necessary action can be taken with all the information made available firsthand.

Learn more: How to conduct quantitative research

2. Secondary Market Research:

Secondary research uses information that is organized by outside sources like government agencies, media, chambers of commerce etc. This information is published in newspapers, magazines, books, company websites, free government and nongovernment agencies and so on. The secondary source makes use of the following:

• Public sources: Public sources like library are an awesome way of gathering free information. Government libraries usually offer services free of cost and a researcher can document available information.
• Commercial sources: Commercial source although reliable are expensive. Local newspapers, magazines, journal, television media are great commercial sources to collect information.
• Educational Institutions: Although not a very popular source of collecting information, most universities and educational institutions are a rich source of information as many research projects are carried out there than any business sector.

Learn more: Market Research Example with Types and Methods

A market research project may usually have 3 different types of objectives.

• Administrative : Help a company or business development, through proper planning, organization, and both human and material resources control, and thus satisfy all specific needs within the market, at the right time.
• Social : Satisfy customers’ specific needs through a required product or service. The product or service should comply with a customer’s requirements and preferences when consumed.
• Economical : Determine the economical degree of success or failure a company can have while being new to the market, or otherwise introducing new products or services, thus providing certainty to all actions to be implemented.

LEARN ABOUT:  Test Market Demand

Knowing what to do in various situations that arise during the investigation will save the researcher time and reduce research problems . Today’s successful enterprises use powerful market research survey software that helps them conduct comprehensive research under a unified platform, providing actionable insights much faster with fewer problems.

LEARN ABOUT:  Market research industry

Following are the steps to conduct effective market research.

Step #1: Define the Problem

Having a well-defined subject of research will help researchers when they ask questions. These questions should be directed to solve problems and must be adapted to the project. Make sure the questions are written clearly and that the respondents understand them. Researchers can conduct a marketing test with a small group to know if the questions are going to know whether the asked questions are understandable and if they will be enough to gain insightful results.

Research objectives should be written in a precise way and should include a brief description of the information that is needed and the way in which it will obtain it. They should have an answer to this question “why are we doing the research?”

Learn more: Interview Questions

Step #2: Define the Sample

To carry out market research, researchers need a representative sample that can be collected using one of the many sampling techniques . A representative sample is a small number of people that reflect, as accurately as possible, a larger group.

• An organization cannot waste their resources in collecting information from the wrong population. It is important that the population represents characteristics that matter to the researchers and that they need to investigate, are in the chosen sample.
• Take into account that marketers will always be prone to fall into a bias in the sample because there will always be people who do not answer the survey because they are busy, or answer it incompletely, so researchers may not obtain the required data.
• Regarding the size of the sample, the larger it is, the more likely it is to be representative of the population. A larger representative sample gives the researcher greater certainty that the people included are the ones they need, and they can possibly reduce bias. Therefore, if they want to avoid inaccuracy in our surveys, they should have representative and balanced samples.
• Practically all the surveys that are considered in a serious way, are based on a scientific sampling, based on statistical and probability theories.

There are two ways to obtain a representative sample:

• Probability sampling : In probability sampling , the choice of the sample will be made at random, which guarantees that each member of the population will have the same probability of selection bias and inclusion in the sample group. Researchers should ensure that they have updated information on the population from which they will draw the sample and survey the majority to establish representativeness.
• Non-probability sampling : In a non-probability sampling , different types of people are seeking to obtain a more balanced representative sample. Knowing the demographic characteristics of our group will undoubtedly help to limit the profile of the desired sample and define the variables that interest the researchers, such as gender, age, place of residence, etc. By knowing these criteria, before obtaining the information, researchers can have the control to create a representative sample that is efficient for us.

When a sample is not representative, there can be a margin of error . If researchers want to have a representative sample of 100 employees, they should choose a similar number of men and women.

The sample size is very important, but it does not guarantee accuracy. More than size, representativeness is related to the sampling frame , that is, to the list from which people are selected, for example, part of a survey.

LEARN ABOUT: Behavioral Research If researchers want to continue expanding their knowledge on how to determine the size of the sample consult our guide on sampling here.

Step #3: Carry out data collection

First, a data collection instrument should be developed. The fact that they do not answer a survey, or answer it incompletely will cause errors in research. The correct collection of data will prevent this.

Step #4: Analyze the results

Each of the points of the market research process is linked to one another. If all the above is executed well, but there is no accurate analysis of the results, then the decisions made consequently will not be appropriate. In-depth analysis conducted without leaving loose ends will be effective in gaining solutions. Data analysis will be captured in a report, which should also be written clearly so that effective decisions can be made on that basis.

Analyzing and interpreting the results is to look for a wider meaning to the obtained data. All the previous phases have been developed to arrive at this moment. How can researchers measure the obtained results? The only quantitative data that will be obtained is age, sex, profession, and number of interviewees because the rest are emotions and experiences that have been transmitted to us by the interlocutors. For this, there is a tool called empathy map that forces us to put ourselves in the place of our clientele with the aim of being able to identify, really, the characteristics that will allow us to make a better adjustment between our products or services and their needs or interests. When the research has been carefully planned, the hypotheses have been adequately defined and the indicated collection method has been used, the interpretation is usually carried out easily and successfully. What follows after conducting market research?

Learn more: Types of Interviews

Step #5: Make the Research Report

When presenting the results, researchers should focus on: what do they want to achieve using this research report and while answering this question they should not assume that the structure of the survey is the best way to do the analysis. One of the big mistakes that many researchers make is that they present the reports in the same order of their questions and do not see the potential of storytelling.

To make good reports, the best analysts give the following advice: follow the inverted pyramid style to present the results, answering at the beginning the essential questions of the business that caused the investigation. Start with the conclusions and give them fundamentals, instead of accumulating evidence. After this researchers can provide details to the readers who have the time and interest.

Step #6: Make Decisions

An organization or a researcher should never ask “why do market research”, they should just do it! Market research helps researchers to know a wide range of information, for example,  consumer purchase intentions, or gives feedback about the growth of the target market. They can also discover valuable information that will help in estimating the prices of their product or service and find a point of balance that will benefit them and the consumers.

Take decisions! Act and implement.

Learn more: Quantitative Research

• Make well-informed decisions: The growth of an organization is dependent on the way decisions are made by the management. Using market research techniques, the management can make business decisions based on obtained results that back their knowledge and experience. Market research helps to know market trends, hence to carry it out frequently to get to know the customers thoroughly.

LEARN ABOUT: Research Process Steps

• Gain accurate information: Market research provides real and accurate information that will prepare the organization for any mishaps that may happen in the future. By properly investigating the market, a business will undoubtedly be taking a step forward, and therefore it will be taking advantage of its existing competitors.
• Determine the market size: A researcher can evaluate the size of the market that must be covered in case of selling a product or service in order to make profits.
• Choose an appropriate sales system: Select a precise sales system according to what the market is asking for, and according to this, the product/service can be positioned in the market.
• Learn about customer preferences: It helps to know how the preferences (and tastes) of the clients change so that the company can satisfy preferences, purchasing habits, and income levels. Researchers can determine the type of product that must be manufactured or sold based on the specific needs of consumers.
• Gather details about customer perception of the brand: In addition to generating information, market research helps a researcher in understanding how the customers perceive the organization or brand.
• Analyze customer communication methods: Market research serves as a guide for communication with current and potential clients.
• Productive business investment: It is a great investment for any business because thanks to it they get invaluable information, it shows researchers the way to follow to take the right path and achieve the sales that are required.

LEARN ABOUT: Total Quality Management

The following tips will help businesses with creating a better market research strategy.

Tip #1: Define the objective of your research.

Before starting your research quest, think about what you’re trying to achieve next with your business. Are you looking to increase traffic to your location? Or increase sales? Or convert customers from one-time purchasers to regulars? Figuring out your objective will help you tailor the rest of your research and your future marketing materials. Having an objective for your research will flesh out what kind of data you need to collect.

Tip #2: Learn About Your Target Customers.

The most important thing to remember is that your business serves a specific kind of customer. Defining your specific customer has many advantages like allowing you to understand what kind of language to use when crafting your marketing materials, and how to approach building relationships with your customer. When you take time to define your target customer you can also find the best products and services to sell to them.

You want to know as much as you can about your target customer. You can gather this information through observation and by researching the kind of customers who frequent your type of business. For starters, helpful things to know are their age and income. What do they do for a living? What’s their marital status and education level?

Learn more: Customer Satisfaction

Tip #3: Recognize that knowing who you serve helps you define who you do not.

Let’s take a classic example from copywriting genius Dan Kennedy. He says that if you’re opening up a fine dining steakhouse focused on decadent food, you know right off the bat that you’re not looking to attract vegetarians or dieters. Armed with this information, you can create better marketing messages that speak to your target customers.

It’s okay to decide who is not a part of your target customer base. In fact, for small businesses knowing who you don’t cater to can be essential in helping you grow. Why? Simple, if you’re small your advantage is that you can connect deeply with a specific segment of the market. You want to focus your efforts on the right customer who already is compelled to spend money on your offer.

If you’re spreading yourself thin by trying to be all things to everyone, you will only dilute your core message. Instead, keep your focus on your target customer. Define them, go deep, and you’ll be able to figure out how you can best serve them with your products and services.

Tip #4: Learn from your competition.

This works for brick-and-mortar businesses as well as internet businesses because it allows you to step into the shoes of your customer and open up to a new perspective of your business. Take a look around the internet and around your town. If you can, visit your competitor’s shops. For example, if you own a restaurant specializing in Italian cuisine, dine at the other Italian place in your neighborhood or in the next township.

As you experience the business from the customer’s perspective, look for what’s being done right and wrong.

Can you see areas that need attention or improvement? How are you running things in comparison? What’s the quality of their product and customer service ? Are the customers here pleased? Also, take a close look at their market segment. Who else is patronizing their business? Are they the same kinds of people who spend money with you? By asking these questions and doing in-person research, you can dig up a lot of information to help you define your unique selling position and create even better offers for your customers.

Tip #5: Get your target customers to open up and tell you everything.

A good customer survey is one of the most valuable market research tools because it gives you the opportunity to get inside your customer’s head. However, remember that some feedback may be harsh, so take criticism as a learning tool to point you in the right direction.

Creating a survey is simple. Ask questions about what your customer thinks you’re doing right and what can be improved. You can also prompt them to tell you what kinds of products and services they’d like to see you add, giving you fantastic insight into how to monetize your business more. Many customers will be delighted to offer feedback. You can even give customers who fill out surveys a gift like a special coupon for their next purchase.

Bonus Tip: Use an insight & research repository

An insight & research repository is a consolidated research management platform to derive insights about past and ongoing market research. With the use of such a tool, you can leverage past research to get to insights faster, build on previously done market research and draw trendlines, utilize research techniques that have worked in the past, and more.

Market research is one of the most effective ways to gain insight into your customer base , competitors , and the overall market. The goal of conducting market research is to equip your company with the information you need to make informed decisions.

It is especially important when small businesses are trying to determine whether a new business idea is viable, looking to move into a new market, or are launching a new product or service.  Read below for a more in-depth look at how market research can help small businesses.

• COMPETITION According to a study conducted by Business Insider, 72% of small businesses focus on increasing revenue. Conducting research helps businesses gain insight into competitor behavior. By learning about your competitor’s strengths and weaknesses, you can learn how to position your product or offering. In order to be successful, small businesses need to have an understanding of what products and services competitors are offering, and their price point.

Learn more: Trend Analysis

• CUSTOMERS Many small businesses feel they need to understand their customers, only to conduct market research and learn they had the wrong assumptions. By researching, you can create a profile of your average customer and gain insight into their buying habits, how much they’re willing to spend, and which features resonate with them. Additionally, and perhaps more importantly, you can learn what will make someone use your product or service over a competitor.

Learn more: Customer Satisfaction Survey

• OPPORTUNITIES Potential opportunities, whether they are products or services, can be identified by conducting market research. By learning more about your customers, you can gather insights into complementary products and services. Consumer needs change over time, influenced by new technology and different conditions, and you may find new needs that are not being met, which can create new opportunities for your business.

Learn more: SWOT Analysis 

• FORECAST A small business is affected by the performance of the local and national economy, as are its’ customers. If consumers are worried, then they will be more restrained when spending money, which affects the business. By conducting research with consumers, businesses can get an idea of whether they are optimistic or apprehensive about the direction of the economy, and make adjustments as necessary. For example, a small business owner may decide to postpone a new product launch if it appears the economic environment is turning negative.

Learn more: 300+ Market Research Survey Questionnaires

Market research and market intelligence may be as complex as the needs that each business or project has. The steps are usually the same. We hope this ultimate guide helps you have a better understanding of how to make your own market research project to gather insightful data and make better decisions.

LEARN ABOUT: Projective Techniques

We appreciate you taking the time to read this ultimate guide. We hope it was helpful! 

You can now download our free ebook that will guide you through a market research project, from the planning stage to the presentation of the outcomes and their analysis.

Sign up now, and download our free ebook: The Hacker’s Guide to Advanced Research Methodologies 

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What is Marketing Research? Examples and Best Practices

12 min read

Marketing research is essentially a method utilized by companies to collect valuable information regarding their target market. Through the common practice of conducting market research, companies gather essential information that enables them to make informed decisions and develop products that resonate with consumers. It encompasses the gathering, analysis, and interpretation of data, which aids in identifying consumer demands, anticipating market trends, and staying ahead of the competition.

Exploratory research is one of the initial steps in the marketing research process. It helps businesses gain broad insights when specific information is unknown. If you are seeking insight into how marketing research can influence the trajectory of your SaaS, then you have come to the right place!

• Market research is a systematic and objective process crucial for understanding target markets, refining business strategies, and informing decisions, which includes collecting, analyzing, and interpreting data on customers, competitors, and the industry.
• Primary market research gathers specific data directly from the target audience using tools like surveys and focus groups, while secondary market research utilizes existing data from various sources to provide broader market insights.
• Effective market research combines both qualitative methods, which explore consumer motivations, and quantitative methods, which provide measurable statistics, to create comprehensive insights that guide business strategy and decision-making.

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Defining marketing research

Launching a product without knowing what your target audience wants is like walking in the dark. Market research lights the way, helping you collect, analyze, and understand information about your target market. This allows you to refine your business strategies and make decisions based on solid evidence.

Gone are the days when just intuition or subjective judgment was enough. Objective insights from market research help avoid costly mistakes and meet consumer needs by identifying trends and changes in the market. This is crucial for assessing a product’s potential success, optimizing marketing strategies, and preparing for market shifts.

Market research is a systematic approach that provides essential information, helping businesses navigate the complexities of the commercial world. Partnering with market research companies can offer additional benefits, leveraging their expertise in understanding market demands, trends, market size, economic indicators, location, market saturation, and pricing. Whether starting a new business, developing products, or updating marketing plans, understanding how to conduct effective market research is key to success.

To conduct market research effectively, businesses must determine study goals, identify target consumers, collect and analyze data, and use the findings to make informed decisions. This process is vital for evaluating past performance, measuring changes over time, and addressing specific business needs. It guides businesses in product development, marketing strategies, and overall decision-making, ensuring a better ROI and providing an eye-opening view of the market through various research methods, whether conducted in-house or outsourced.

The purpose of marketing research

Conducting marketing research is more than just gathering data; it’s about turning that data into actionable insights to refine your business strategies. This process helps you understand what motivates your customers, enabling you to tailor your products and services to minimize risks from the start. Importantly, market research plays a pivotal role in measuring and enhancing customer satisfaction and loyalty, which are critical for understanding key demographics, improving user experience, designing better products, and driving customer retention. Customer satisfaction is measured as a key outcome, directly linked to the success of marketing strategies and business activities.

For SaaS product managers, market research, including competitive analysis, is crucial. It evaluates past strategies and gauges the potential success of new offerings. This research provides essential insights into brand strength, consumer behavior, and market position, which are vital for teams focused on sales, marketing, and product development.

A key aspect of market research is analyzing customer attitudes and usage. This analysis offers detailed insights into what customers want, the choices they make, and the challenges they face. It helps identify opportunities in the market and aids in formulating effective strategies for market entry.

Overall, market research equips SaaS entrepreneurs with the knowledge to meet their target audience’s needs effectively, guiding product adjustments and innovations based on informed decisions.

Key components of market research

Conducting market research is analogous to preparing a cake, requiring precise ingredients in specific quantities to achieve the intended outcome. Within this realm, necessary components consist of primary and secondary data gathering, thorough analysis, and insightful interpretation.

Primary research techniques such as exploratory studies, product evolution inquiries, estimations of market dimensions and shares, and consumer behavior examinations play a crucial role in collecting targeted information that can be directly applied. These methods afford a deeper understanding of your target demographic, allowing for customized strategy development.

In contrast, secondary research enriches the specificity of primary findings by adding wider context. It taps into external resources encompassing works from other investigators, sector-specific reports, and demographics data, which provide an expansive yet less particularized landscape view of the marketplace.

The subsequent phase involves meticulous analysis of collated data offering unbiased perspectives critical for identifying deficiencies while recognizing emerging patterns. Technological progress now facilitates examination efforts on both structured and unstructured datasets effectively addressing large-scale analytical complexities.

Ultimately, it’s through expert-led interpretation that value transcends raw figures, yielding strategies grounded in deep comprehension. Akin to decoding recipes using selected ingredients—this interpretative step enables crafting optimal business maneuvers just as one would bake their ideal confectionery creation utilizing proper culinary guidance.

Types of market research: primary and secondary

Now that you know the importance of clear research objectives, let’s explore the different types of market research and the techniques available to achieve these goals. Market research methods can be divided into two main categories: primary research and secondary research . The choice between these depends on factors like your budget, time constraints, and whether you need exploratory data or definitive answers.

Primary research involves collecting new data directly from sources. This process is like mining for precious metals, as it requires using various methods to gather fresh insights.

• Surveys (here – in-app survey templates from Userpilot ).

• Interviews.

• Focus groups.
• Product trials.

This approach gives you first-hand insight into your target audience.

Conversely, secondary research uses already established datasets of primary data – which can add depth and reinforcement to your firsthand findings.

Conducting your own market research using primary research tools can be a cost-effective strategy, allowing businesses to gather valuable insights directly and tailor their research to specific needs.

Let’s look a bit deeper into them now.

What is primary market research?

Market research uses primary market research as an essential tool. This involves collecting new data directly from your target audience using various methods, such as surveys , focus groups, and interviews.

Each method has its benefits. For example, observational studies allow you to see how consumers interact with your product.

There are many ways to conduct primary research.

Focus Groups : Hold discussions with small groups of 5 to 10 people from your target audience. These discussions can provide valuable feedback on products, perceptions of your company’s brand name, or opinions on competitors. Additionally, these discussions can help understand the characteristics, challenges, and buying habits of target customers, optimizing brand strategy.

Interviews : Have one-on-one conversations to gather detailed information from individuals in your target audience.

Surveys : These are a common tool in primary market research and can be used instead of focus groups to understand consumer attitudes. Surveys use structured questions and can reach a broad audience efficiently.

Navigating secondary market research

While marketing research using primary methods is like discovering precious metals, secondary market research technique is like using a treasure map. This approach uses data collected by others from various sources, providing a broad industry view. These sources include market analyses from agencies like Statista, historical data such as census records, and academic studies.

Secondary research provides the basic knowledge necessary for conducting primary market research goals but may lack detail on specific business questions and could also be accessible to competitors.

To make the most of secondary market research, it’s important to analyze summarized data to identify trends, rely on reputable sources for accurate data, and remain unbiased in data collection methods.

The effectiveness of secondary research depends significantly on how well the data is interpreted, ensuring that this information complements the insights from primary research.

Qualitative vs quantitative research

Market research employs both qualitative and quantitative methods, offering distinct insights that complement each other. Qualitative research aims to understand consumer behaviors and motivations through detailed analysis, while quantitative research collects measurable data for statistical analysis.

The selection of qualitative or quantitative methods should align with your research goals. If you need to uncover initial insights or explore deep consumer motivations, qualitative techniques like surveys or interviews are ideal.

On the other hand, if you need data that can be measured and analyzed for reliability, quantitative methods are more suitable.

However, these approaches don’t have to be used separately. Combining qualitative and quantitative methods in mixed-method studies allows you to capture both detailed exploratory responses and concrete numerical data. This integration offers a comprehensive view of the market, leveraging the strengths of both approaches to provide a fuller understanding of market conditions.

Implementing market research tools: Userpilot’s role

Similar to how a compass is essential for navigation at sea, businesses need appropriate instruments to carry out effective market research. Userpilot’s suite of product analytics and in-app engagement tools are critical components for this purpose.

Acting as a Buyer Persona Research instrument, Userpilot’s product analytics provide key quantitative research capabilities. This helps clearly define and comprehend the attributes and behaviors of potential customers, providing you with insights into your ICP (Ideal Customer Persona), user preferences, and product-market fit.

Beyond product analytics, Userpilot offers robust in-app engagement features such as modals and surveys that support real time collection of market research information. These interactive features work synergistically with the analytical tools to enable companies to gather detailed data and feedback crucial for informed business decision-making.

Marketing research process: Step-by-step guide

Marketing research conists of several critical stages:

• Defining precise goals.
• Delving into the knowledge of your target demographic.
• Collecting and scrutinizing data.
• Revealing insights that can be translated into tangible actions.

Following these steps allows you to gather critical information that guides business decisions.

An effective research strategy is crucial and involves:

• Properly allocating funds.
• Formulating testable hypotheses.
• Choosing appropriate methods for the study.
• Determining the number of study participants.
• Considering external variables.

A well-planned strategy ensures that your market research is focused, efficient, and produces useful outcomes.

After collecting data, the next step is to analyze it. This involves comparing the data to your initial questions to draw conclusions relevant to your business strategies.

Userpilot makes your data analysis easier by providing handy analytics dashboards for key user metrics such as activation, engagement, core feature adoption, and retention out of the box:

Finally, you report the findings and the process, providing recommendations based on the evidence. This is like solving a puzzle: each piece helps to complete the overall picture.

Challenges and best practices in market research

Delving into market research comes with its own set of hurdles. Those conducting the research must deliver more profound insights within increasingly shorter timespans, and they need to cultivate strategic, continuous research methods to stay abreast of an ever-changing business landscape.

Ensuring high-quality data can be demanding due to issues such as disjointed tools or insufficient analytical expertise. New solutions like Userpilot are surfacing that make these obstacles less daunting by offering accessible and user-friendly options. Maintaining clear lines of communication with your market research team is crucial for achieving both punctuality and quality in outcomes.

The advantages of engaging in marketing research cannot be overstated.

Real-life examples of successful market research

Real-life examples of market research in the SaaS industry often showcase innovative approaches to understanding customer needs and product-market fit.

For instance, Slack, the communication platform, utilized extensive market research to identify gaps in communication tools and understand the workflows of teams. This led to the development of features that seamlessly integrated with other tools and catered to the needs of various team sizes and structures.

Another example is HubSpot, which conducted market research to understand the pain points of small to medium-sized businesses in managing customer relationships. The insights gained helped shape their all-in-one inbound marketing, sales, and service platform, which has become integral to their users’ daily operations. These examples demonstrate how SaaS companies can employ market research to inform product development, improve user experience, and strategically position themselves in a competitive market.

Choosing the right market research tools

For B2B SaaS product managers aiming to do market research, having the right set of tools can make a significant difference. Here’s a list of valuable SaaS tools that can be leveraged for effective market research:

• Userpilot : A comprehensive Product Growth Platform offering in-depth product analytics, a code-free in-app experience builder, bespoke in-app survey capabilities, and robust integration options with platforms like Salesforce and Hubspot. This tool is particularly useful for understanding user behavior, enhancing user engagement, and gathering targeted feedback.
• Qualtrics : Known for its powerful survey tools, Qualtrics helps businesses gather and analyze customer feedback effectively. Its advanced analytics features are ideal for testing market hypotheses and understanding customer sentiments.
• SurveyMonkey : A versatile tool that enables product managers to create, send, and analyze surveys quickly and easily. SurveyMonkey is suitable for gauging customer satisfaction and collecting feedback on potential new features.
• Mixpanel : Specializes in user behavior analytics, offering detailed insights into how users interact with your product. This is essential for identifying patterns and optimizing product features.
• Hotjar : Combines analytics and feedback tools to give teams insights into user behavior and preferences. Hotjar’s heatmaps and session recordings are invaluable for understanding the user experience on a deeper level.
• Tableau : A leading platform for business intelligence and data visualization, Tableau allows product managers to create comprehensive visual reports that can inform strategic decisions based on user data analysis.

Each of these tools provides unique functionalities that can assist SaaS product managers in conducting thorough market research, thereby ensuring that their products are perfectly aligned with user needs and market demands.

Measuring the impact of market research

The pivotal challenge for market research lies in demonstrating its return on investment (ROI) and overall influence on corporate success sufficiently enough to justify regular financial commitment from company leaders. The worth attributed to a market research firm hinges not only on their ability to deliver relevant and high-caliber information, but also on their pricing structures and their contribution towards propelling organizational growth.

To gauge how effectively business choices made based on market research findings succeed, various metrics and key performance indicators (KPIs) are utilized. These numerical tools act as navigational aids directing enterprises toward achieving objectives while simultaneously verifying that efforts invested in conducting market analysis are yielding fruitful guidance.

Throughout our look at market research, we’ve seen its importance and impact. Our discussion covered the basics of market research, its key components, and different types, including both qualitative and quantitative methods, and the role of Userpilot’s tools. We’ve examined the details of the market research process, tackled challenges, identified best practices, and shared success stories. We also provided advice on choosing the right market research partner and how to measure the effectiveness of your market research.

In today’s data-driven world, comprehensive market research is crucial for companies that want to succeed. It acts like a guide, helping businesses navigate the complex market landscape. Start your own detailed research today, supported by insightful analytics to help you succeed.

Frequently asked questions

What is market research and why is it important.

Understanding your target market, honing business strategies, and making informed decisions are all essential components that depend heavily on effective market research. It offers objective insights to help avoid expensive errors and foresees the needs of customers .

What is the difference between primary and secondary market research?

Primary market research is characterized by the direct gathering of data, in contrast to secondary market research which leverages existing information from alternative sources for addressing research inquiries.

Such a distinction can guide you in selecting an approach that aligns with your precise needs for conducting specific research.

What are some examples of successful market research?

Examples of successful market research are evident in the operations of well-known companies such as Starbucks, Apple, and McDonald’s. They have harnessed this tool to fine-tune their business strategies and make decisions based on solid information.

By employing market research, these businesses have managed to gain insight into their customers’ desires and needs, which has contributed significantly to their success.

How can I choose the right market research partner?

Selecting an ideal market research ally involves identifying a firm that resonates with your project requirements, financial plan, and corporate goals while also verifying their track record of dependability and consistency via reviews from previous clients.

Best wishes on your endeavor!

How is the impact of market research measured?

The effectiveness of market research hinges on the precision, representativeness, and pertinence of its data, along with how successful business decisions are when they’re based on the findings from this research. These elements define the impact of the research conducted.

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Market research is a cornerstone of all successful, strategic businesses. It can also be daunting for entrepreneurs looking to launch a startup or start a side hustle . What is market research, anyway? And how do you…do it?

We’ll walk you through absolutely everything you need to know about the market research process so that by the end of this guide, you’ll be an expert in market research too. And what’s more important: you’ll have actionable steps you can take to start collecting your own market research.

What Is Market Research?

Market research is the organized process of gathering information about your target customers and market. Market research can help you better understand customer behavior and competitor strengths and weaknesses, as well as provide insight for the best strategies in launching new businesses and products. There are different ways to approach market research, including primary and secondary research and qualitative and quantitative research. The strongest approaches will include a combination of all four.

“Virtually every business can benefit from conducting some market research,” says Niles Koenigsberg of Real FiG Advertising + Marketing . “Market research can help you piece together your [business’s] strengths and weaknesses, along with your prospective opportunities, so that you can understand where your unique differentiators may lie.” Well-honed market research will help your brand stand out from the competition and help you see what you need to do to lead the market. It can also do so much more.

The Purposes of Market Research

Why do market research? It can help you…

• Pinpoint your target market, create buyer personas, and develop a more holistic understanding of your customer base and market.
• Understand current market conditions to evaluate risks and anticipate how your product or service will perform.
• Validate a concept prior to launch.
• Identify gaps in the market that your competitors have created or overlooked.
• Solve problems that have been left unresolved by the existing product/brand offerings.
• Identify opportunities and solutions for new products or services.
• Develop killer marketing strategies .

What Are the Benefits of Market Research?

Strong market research can help your business in many ways. It can…

• Strengthen your market position.
• Help you identify your strengths and weaknesses.
• Help you identify your competitors’ strengths and weaknesses.
• Minimize risk.
• Center your customers’ experience from the get-go.
• Help you create a dynamic strategy based on market conditions and customer needs/demands.

What Are the Basic Methods of Market Research?

The basic methods of market research include surveys, personal interviews, customer observation, and the review of secondary research. In addition to these basic methods, a forward-thinking market research approach incorporates data from the digital landscape like social media analysis, SEO research, gathering feedback via forums, and more. Throughout this guide, we will cover each of the methods commonly used in market research to give you a comprehensive overview.

Primary vs. Secondary Market Research

Primary and secondary are the two main types of market research you can do. The latter relies on research conducted by others. Primary research, on the other hand, refers to the fact-finding efforts you conduct on your own.

This approach is limited, however. It’s likely that the research objectives of these secondary data points differ from your own, and it can be difficult to confirm the veracity of their findings.

Primary Market Research

Primary research is more labor intensive, but it generally yields data that is exponentially more actionable. It can be conducted through interviews, surveys, online research, and your own data collection. Every new business should engage in primary market research prior to launch. It will help you validate that your idea has traction, and it will give you the information you need to help minimize financial risk.

You can hire an agency to conduct this research on your behalf. This brings the benefit of expertise, as you’ll likely work with a market research analyst. The downside is that hiring an agency can be expensive—too expensive for many burgeoning entrepreneurs. That brings us to the second approach. You can also do the market research yourself, which substantially reduces the financial burden of starting a new business .

Secondary Market Research

Secondary research includes resources like government databases and industry-specific data and publications. It can be beneficial to start your market research with secondary sources because it’s widely available and often free-to-access. This information will help you gain a broad overview of the market conditions for your new business.

Identify Your Goals and Your Audience

Before you begin conducting interviews or sending out surveys, you need to set your market research goals. At the end of your market research process, you want to have a clear idea of who your target market is—including demographic information like age, gender, and where they live—but you also want to start with a rough idea of who your audience might be and what you’re trying to achieve with market research.

You can pinpoint your objectives by asking yourself a series of guiding questions:

• What are you hoping to discover through your research?
• Who are you hoping to serve better because of your findings?
• What do you think your market is?
• Who are your competitors?
• Are you testing the reception of a new product category or do you want to see if your product or service solves the problem left by a current gap in the market?
• Are you just…testing the waters to get a sense of how people would react to a new brand?

Once you’ve narrowed down the “what” of your market research goals, you’re ready to move onto how you can best achieve them. Think of it like algebra. Many math problems start with “solve for x.” Once you know what you’re looking for, you can get to work trying to find it. It’s a heck of a lot easier to solve a problem when you know you’re looking for “x” than if you were to say “I’m gonna throw some numbers out there and see if I find a variable.”

How to Do Market Research

This guide outlines every component of a comprehensive market research effort. Take into consideration the goals you have established for your market research, as they will influence which of these elements you’ll want to include in your market research strategy.

Secondary Data

Secondary data allows you to utilize pre-existing data to garner a sense of market conditions and opportunities. You can rely on published market studies, white papers, and public competitive information to start your market research journey.

Secondary data, while useful, is limited and cannot substitute your own primary data. It’s best used for quantitative data that can provide background to your more specific inquiries.

Find Your Customers Online

Once you’ve identified your target market, you can use online gathering spaces and forums to gain insights and give yourself a competitive advantage. Rebecca McCusker of The Creative Content Shop recommends internet recon as a vital tool for gaining a sense of customer needs and sentiment. “Read their posts and comments on forums, YouTube video comments, Facebook group [comments], and even Amazon/Goodreads book comments to get in their heads and see what people are saying.”

If you’re interested in engaging with your target demographic online, there are some general rules you should follow. First, secure the consent of any group moderators to ensure that you are acting within the group guidelines. Failure to do so could result in your eviction from the group.

Not all comments have the same research value. “Focus on the comments and posts with the most comments and highest engagement,” says McCusker. These high-engagement posts can give you a sense of what is already connecting and gaining traction within the group.

Social media can also be a great avenue for finding interview subjects. “LinkedIn is very useful if your [target customer] has a very specific job or works in a very specific industry or sector. It’s amazing the amount of people that will be willing to help,” explains Miguel González, a marketing executive at Dealers League . “My advice here is BE BRAVE, go to LinkedIn, or even to people you know and ask them, do quick interviews and ask real people that belong to that market and segment and get your buyer persona information first hand.”

Market research interviews can provide direct feedback on your brand, product, or service and give you a better understanding of consumer pain points and interests.

When organizing your market research interviews, you want to pay special attention to the sample group you’re selecting, as it will directly impact the information you receive. According to Tanya Zhang, the co-founder of Nimble Made , you want to first determine whether you want to choose a representative sample—for example, interviewing people who match each of the buyer persona/customer profiles you’ve developed—or a random sample.

“A sampling of your usual persona styles, for example, can validate details that you’ve already established about your product, while a random sampling may [help you] discover a new way people may use your product,” Zhang says.

Market Surveys

Market surveys solicit customer inclinations regarding your potential product or service through a series of open-ended questions. This direct outreach to your target audience can provide information on your customers’ preferences, attitudes, buying potential, and more.

Every expert we asked voiced unanimous support for market surveys as a powerful tool for market research. With the advent of various survey tools with accessible pricing—or free use—it’s never been easier to assemble, disseminate, and gather market surveys. While it should also be noted that surveys shouldn’t replace customer interviews , they can be used to supplement customer interviews to give you feedback from a broader audience.

Who to Include in Market Surveys

• Current customers
• Past customers
• Your existing audience (such as social media/newsletter audiences)

Example Questions to Include in Market Surveys

While the exact questions will vary for each business, here are some common, helpful questions that you may want to consider for your market survey. Demographic Questions: the questions that help you understand, demographically, who your target customers are:

• “What is your age?”
• “Where do you live?”
• “What is your gender identity?”
• “What is your household income?”
• “What is your household size?”
• “What do you do for a living?”
• “What is your highest level of education?”

Product-Based Questions: Whether you’re seeking feedback for an existing brand or an entirely new one, these questions will help you get a sense of how people feel about your business, product, or service:

• “How well does/would our product/service meet your needs?”
• “How does our product/service compare to similar products/services that you use?”
• “How long have you been a customer?” or “What is the likelihood that you would be a customer of our brand?

Personal/Informative Questions: the deeper questions that help you understand how your audience thinks and what they care about.

• “What are your biggest challenges?”
• “What’s most important to you?”
• “What do you do for fun (hobbies, interests, activities)?”
• “Where do you seek new information when researching a new product?”
• “How do you like to make purchases?”
• “What is your preferred method for interacting with a brand?”

Survey Tools

Online survey tools make it easy to distribute surveys and collect responses. The best part is that there are many free tools available. If you’re making your own online survey, you may want to consider SurveyMonkey, Typeform, Google Forms, or Zoho Survey.

Competitive Analysis

A competitive analysis is a breakdown of how your business stacks up against the competition. There are many different ways to conduct this analysis. One of the most popular methods is a SWOT analysis, which stands for “strengths, weaknesses, opportunities, and threats.” This type of analysis is helpful because it gives you a more robust understanding of why a customer might choose a competitor over your business. Seeing how you stack up against the competition can give you the direction you need to carve out your place as a market leader.

Social Media Analysis

Social media has fundamentally changed the market research landscape, making it easier than ever to engage with a wide swath of consumers. Follow your current or potential competitors on social media to see what they’re posting and how their audience is engaging with it. Social media can also give you a lower cost opportunity for testing different messaging and brand positioning.

SEO Analysis and Opportunities

SEO analysis can help you identify the digital competition for getting the word out about your brand, product, or service. You won’t want to overlook this valuable information. Search listening tools offer a novel approach to understanding the market and generating the content strategy that will drive business. Tools like Google Trends and Awario can streamline this process.

Ready to Kick Your Business Into High Gear?

Now that you’ve completed the guide to market research you know you’re ready to put on your researcher hat to give your business the best start. Still not sure how actually… launch the thing? Our free mini-course can run you through the essentials for starting your side hustle .

About Mary Kate Miller

Mary Kate Miller writes about small business, real estate, and finance. In addition to writing for Foundr, her work has been published by The Washington Post, Teen Vogue, Bustle, and more. She lives in Chicago.

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What Is Market Research?

• How It Works
• Primary vs. Secondary
• How to Conduct Research

The Bottom Line

• Marketing Essentials

How to Do Market Research, Types, and Example

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Market research examines consumer behavior and trends in the economy to help a business develop and fine-tune its business idea and strategy. It helps a business understand its target market by gathering and analyzing data.

Market research is the process of evaluating the viability of a new service or product through research conducted directly with potential customers. It allows a company to define its target market and get opinions and other feedback from consumers about their interest in a product or service.

Research may be conducted in-house or by a third party that specializes in market research. It can be done through surveys and focus groups, among other ways. Test subjects are usually compensated with product samples or a small stipend for their time.

Key Takeaways

• Companies conduct market research before introducing new products to determine their appeal to potential customers.
• Tools include focus groups, telephone interviews, and questionnaires.
• The results of market research inform the final design of the product and determine how it will be positioned in the marketplace.
• Market research usually combines primary information, gathered directly from consumers, and secondary information, which is data available from external sources.

Market Research

How market research works.

Market research is used to determine the viability of a new product or service. The results may be used to revise the product design and fine-tune the strategy for introducing it to the public. This can include information gathered for the purpose of determining market segmentation . It also informs product differentiation , which is used to tailor advertising.

A business engages in various tasks to complete the market research process. It gathers information based on the market sector being targeted by the product. This information is then analyzed and relevant data points are interpreted to draw conclusions about how the product may be optimally designed and marketed to the market segment for which it is intended.

It is a critical component in the research and development (R&D) phase of a new product or service introduction. Market research can be conducted in many different ways, including surveys, product testing, interviews, and focus groups.

Market research is a critical tool that companies use to understand what consumers want, develop products that those consumers will use, and maintain a competitive advantage over other companies in their industry.

Primary Market Research vs. Secondary Market Research

Market research usually consists of a combination of:

• Primary research, gathered by the company or by an outside company that it hires
• Secondary research, which draws on external sources of data

Primary Market Research

Primary research generally falls into two categories: exploratory and specific research.

• Exploratory research is less structured and functions via open-ended questions. The questions may be posed in a focus group setting, telephone interviews, or questionnaires. It results in questions or issues that the company needs to address about a product that it has under development.
• Specific research delves more deeply into the problems or issues identified in exploratory research.

Secondary Market Research

All market research is informed by the findings of other researchers about the needs and wants of consumers. Today, much of this research can be found online.

Secondary research can include population information from government census data , trade association research reports , polling results, and research from other businesses operating in the same market sector.

History of Market Research

Formal market research began in Germany during the 1920s. In the United States, it soon took off with the advent of the Golden Age of Radio.

Companies that created advertisements for this new entertainment medium began to look at the demographics of the audiences who listened to each of the radio plays, music programs, and comedy skits that were presented.

They had once tried to reach the widest possible audience by placing their messages on billboards or in the most popular magazines. With radio programming, they had the chance to target rural or urban consumers, teenagers or families, and judge the results by the sales numbers that followed.

Types of Market Research

Face-to-face interviews.

From their earliest days, market research companies would interview people on the street about the newspapers and magazines that they read regularly and ask whether they recalled any of the ads or brands that were published in them. Data collected from these interviews were compared to the circulation of the publication to determine the effectiveness of those ads.

Market research and surveys were adapted from these early techniques.

To get a strong understanding of your market, it’s essential to understand demand, market size, economic indicators, location, market saturation, and pricing.

Focus Groups

A focus group is a small number of representative consumers chosen to try a product or watch an advertisement.

Afterward, the group is asked for feedback on their perceptions of the product, the company’s brand, or competing products. The company then takes that information and makes decisions about what to do with the product or service, whether that's releasing it, making changes, or abandoning it altogether.

Phone Research

The man-on-the-street interview technique soon gave way to the telephone interview. A telephone interviewer could collect information in a more efficient and cost-effective fashion.

Telephone research was a preferred tactic of market researchers for many years. It has become much more difficult in recent years as landline phone service dwindles and is replaced by less accessible mobile phones.

Survey Research

As an alternative to focus groups, surveys represent a cost-effective way to determine consumer attitudes without having to interview anyone in person. Consumers are sent surveys in the mail, usually with a coupon or voucher to incentivize participation. These surveys help determine how consumers feel about the product, brand, and price point.

Online Market Research

With people spending more time online, market research activities have shifted online as well. Data collection still uses a survey-style form. But instead of companies actively seeking participants by finding them on the street or cold calling them on the phone, people can choose to sign up, take surveys, and offer opinions when they have time.

This makes the process far less intrusive and less rushed, since people can participate on their own time and of their own volition.

How to Conduct Market Research

The first step to effective market research is to determine the goals of the study. Each study should seek to answer a clear, well-defined problem. For example, a company might seek to identify consumer preferences, brand recognition, or the comparative effectiveness of different types of ad campaigns.

After that, the next step is to determine who will be included in the research. Market research is an expensive process, and a company cannot waste resources collecting unnecessary data. The firm should decide in advance which types of consumers will be included in the research, and how the data will be collected. They should also account for the probability of statistical errors or sampling bias .

The next step is to collect the data and analyze the results. If the two previous steps have been completed accurately, this should be straightforward. The researchers will collect the results of their study, keeping track of the ages, gender, and other relevant data of each respondent. This is then analyzed in a marketing report that explains the results of their research.

The last step is for company executives to use their market research to make business decisions. Depending on the results of their research, they may choose to target a different group of consumers, or they may change their price point or some product features.

The results of these changes may eventually be measured in further market research, and the process will begin all over again.

Benefits of Market Research

Market research is essential for developing brand loyalty and customer satisfaction. Since it is unlikely for a product to appeal equally to every consumer, a strong market research program can help identify the key demographics and market segments that are most likely to use a given product.

Market research is also important for developing a company’s advertising efforts. For example, if a company’s market research determines that its consumers are more likely to use Facebook than X (formerly Twitter), it can then target its advertisements to one platform instead of another. Or, if they determine that their target market is value-sensitive rather than price-sensitive, they can work on improving the product rather than reducing their prices.

Market research only works when subjects are honest and open to participating.

Example of Market Research

Many companies use market research to test new products or get information from consumers about what kinds of products or services they need and don’t currently have.

For example, a company that’s considering starting a business might conduct market research to test the viability of its product or service. If the market research confirms consumer interest, the business can proceed confidently with its business plan . If not, the company can use the results of the market research to make adjustments to the product to bring it in line with customer desires.

What Are the Main Types of Market Research?

The main types of market research are primary research and secondary research. Primary research includes focus groups, polls, and surveys. Secondary research includes academic articles, infographics, and white papers.

Qualitative research gives insights into how customers feel and think. Quantitative research uses data and statistics such as website views, social media engagement, and subscriber numbers.

What Is Online Market Research?

Online market research uses the same strategies and techniques as traditional primary and secondary market research, but it is conducted on the Internet. Potential customers may be asked to participate in a survey or give feedback on a product. The responses may help the researchers create a profile of the likely customer for a new product.

What Are Paid Market Research Surveys?

Paid market research involves rewarding individuals who agree to participate in a study. They may be offered a small payment for their time or a discount coupon in return for filling out a questionnaire or participating in a focus group.

What Is a Market Study?

A market study is an analysis of consumer demand for a product or service. It looks at all of the factors that influence demand for a product or service. These include the product’s price, location, competition, and substitutes as well as general economic factors that could influence the new product’s adoption, for better or worse.

Market research is a key component of a company’s research and development (R&D) stage. It helps companies understand in advance the viability of a new product that they have in development and to see how it might perform in the real world.

Britannica Money. “ Market Research .”

U.S. Small Business Administration. “ Market Research and Competitive Analysis .”

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What is marketing research? Definition and examples

Marketing Research involves systematically collecting data about consumers, rivals, and other entities. That data is analyzed to gain a better understanding of consumers’ needs and other features of the market. Marketing people then summarize the data and conclusions in a report. The report helps senior managers and business owners make informed decisions regarding future plans and strategies.

Effective marketing research also aids in identifying potential new markets or customer segments, allowing companies to expand their reach and diversify their customer base.

Moreover, marketing research continuously evolves to adapt to emerging trends and technologies, ensuring that businesses stay competitive in rapidly changing markets.

“Marketing research is the systematic gathering, recording, and analysis of qualitative and quantitative data about issues relating to marketing products and services. The goal is to identify and assess how changing elements of the marketing mix impacts customer behavior.”

Three main types of marketing research

Marketing research generally consists of three main types of research: 1. Market research . 2. Product researc h. 3. Consumer research .

Market research

You should not make important decisions regarding your products without carrying out market research first.

Market research is a study of the market, specifically who purchase a product, why they buy it, how competitors behave, and how something is sold.

It is an organized effort to gather and analyze data about target markets. The following quote comes from our article that defines market research:

“We often use the term with the same meaning as marketing research. However, marketing research concentrates on the marketing processes, while market research is about the market in general.”

Product research

Product research involves identifying a need or want and the characteristics of the product or service that will satisfy it. In other words, if consumers have a desire or want, what features or benefits of your product satisfies them and to what extent.

This type of research helps companies determine what consumers really want or need. They can then tailor their goods or services to match those consumer wants and needs.

According to mnbaskool.com:

“Product research is the marketing research that provides information on the desired characteristics of a product or service . Product research helps companies to understand what the customers really want, so that the product can be tailored to match the needs of the customer. This research can help to refine new product ideas.”

Consumer research

Consumer research is all about identifying consumer preferences, motivations, and purchasing behaviors. Specifically, the consumers that the company is focusing on; in other words, the target consumer.

Many marketing experts say that consumer research is part of market research. Marketers gather information through published sources, direct observation, face-to-face interviews, and mail surveys. Telephone interviews are also popular.

Who performs this type of research?

Some companies perform the research themselves while others hire third-party experts or consultants.

Hiring a consulting firm has both advantages and disadvantages. The main advantage is that consultants are marketing research experts. They probably have more experience and training than employees within the company.

The main disadvantage is that they may not understand some the products or services as well as company employees do. The same may also apply to customers and potential customers.

Compound phrases with ‘marketing research’

A compound phrase consists of two or more words. In business and marketing English, there are many compound phrases with the term ‘marketing research’ in them. Let’s have a look at the give most common ones:

Marketing Research Techniques

Refers to the specific methods and tools used in conducting marketing research. As in:

“The company employed various marketing research techniques, such as surveys and focus groups, to understand consumer preferences.”

Marketing Research Analysis

The process of examining and interpreting data collected through marketing research. For example:

“After conducting surveys, the marketing research analysis revealed a growing demand for eco-friendly products among consumers.”

Marketing Research Ethics

Principles and standards guiding the conduct of marketing research to ensure honesty, fairness, and responsibility. For instance:

“Adhering to marketing research ethics, the firm ensured all participant data was kept confidential and used solely for research purposes.”

Global Marketing Research

Research conducted to understand marketing dynamics, consumer behavior, and trends in international markets. As in:

“In their global marketing research, the company discovered significant cultural differences in consumer behavior across different regions, impacting their product strategy.”

Digital Marketing Research

Involves collecting and analyzing data related to digital marketing efforts, such as online consumer behavior, social media trends, and digital advertising effectiveness. For example:

“The digital marketing research showed that the company’s target audience predominantly engaged with their brand through social media platforms, leading to an increased focus on social media advertising.”

Vide – What is Marketing Research?

This video presentation, from our YouTube partner channel – Marketing Business Network , explains what a ‘Marketing Research’ is using simple and easy-to-understand language and examples.

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Module 6: Marketing Information and Research

The marketing research process, learning objectives.

• Identify the steps of conducting a marketing research project

A Standard Approach to Research Inquiries

Marketing research is a useful and necessary tool for helping marketers and an organization’s executive leadership make wise decisions. Carrying out marketing research can involve highly specialized skills that go deeper than the information outlined in this module. However, it is important for any marketer to be familiar with the basic procedures and techniques of marketing research.

It is very likely that at some point a marketing professional will need to supervise an internal marketing research activity or to work with an outside marketing research firm to conduct a research project. Managers who understand the research function can do a better job of framing the problem and critically appraising the proposals made by research specialists. They are also in a better position to evaluate their findings and recommendations.

Periodically marketers themselves need to find solutions to marketing problems without the assistance of marketing research specialists inside or outside the company. If you are familiar with the basic procedures of marketing research, you can supervise and even conduct a reasonably satisfactory search for the information needed.

Step 1: Identify the Problem

The first step for any marketing research activity is to clearly identify and define the problem you are trying to solve. You start by stating the marketing or business problem you need to address and for which you need additional information to figure out a solution. Next, articulate the objectives for the research: What do you want to understand by the time the research project is completed? What specific information, guidance, or recommendations need to come out of the research in order to make it a worthwhile investment of the organization’s time and money?

It’s important to share the problem definition and research objectives with other team members to get their input and further refine your understanding of the problem and what is needed to solve it. At times, the problem you really need to solve is not the same problem that appears on the surface. Collaborating with other stakeholders helps refine your understanding of the problem, focus your thinking, and prioritize what you hope to learn from the research. Prioritizing your objectives is particularly helpful if you don’t have the time or resources to investigate everything you want.

To flesh out your understanding of the problem, it’s useful to begin brainstorming actual research questions you want to explore. What are the questions you need to answer in order to get to the research outcomes? What is the missing information that marketing research will help you find? The goal at this stage is to generate a set of preliminary, big-picture questions that will frame your research inquiry. You will revisit these research questions later in the process, but when you’re getting started, this exercise helps clarify the scope of the project, whom you need to talk to, what information may already be available, and where to look for the information you don’t yet have.

Applied Example: Marketing Research for Bookends

To illustrate the marketing research process, let’s return to Uncle Dan and his ailing bookstore, Bookends. You need a lot of information if you’re going to help Dan turn things around, so marketing research is a good idea. You begin by identifying the problem and then work to set down your research objectives and initial research questions:

Step 2: Develop a Research Plan

Once you have a problem definition, research objectives, and a preliminary set of research questions, the next step is to develop a research plan. Essential to this plan is identifying precisely what information you need to answer your questions and achieve your objectives. Do you need to understand customer opinions about something? Are you looking for a clearer picture of customer needs and related behaviors? Do you need sales, spending, or revenue data? Do you need information about competitors’ products, or insight about what will make prospective customers notice you? When do need the information, and what’s the time frame for getting it? What budget and resources are available?

Once you have clarified what kind of information you need and the timing and budget for your project, you can develop the research design. This details how you plan to collect and analyze the information you’re after. Some types of information are readily available through  secondary research and secondary data sources. Secondary research analyzes information that has already been collected for another purpose by a third party, such as a government agency, an industry association, or another company. Other types of information need to from talking directly to customers about your research questions. This is known as primary research , which collects primary data captured expressly for your research inquiry.   Marketing research projects may include secondary research, primary research, or both.

Depending on your objectives and budget, sometimes a small-scale project will be enough to get the insight and direction you need. At other times, in order to reach the level of certainty or detail required, you may need larger-scale research involving participation from hundreds or even thousands of individual consumers. The research plan lays out the information your project will capture—both primary and secondary data—and describes what you will do with it to get the answers you need. (Note: You’ll learn more about data collection methods and when to use them later in this module.)

Your data collection plan goes hand in hand with your analysis plan. Different types of analysis yield different types of results. The analysis plan should match the type of data you are collecting, as well as the outcomes your project is seeking and the resources at your disposal. Simpler research designs tend to require simpler analysis techniques. More complex research designs can yield powerful results, such as understanding causality and trade-offs in customer perceptions. However, these more sophisticated designs can require more time and money to execute effectively, both in terms of data collection and analytical expertise.

The research plan also specifies who will conduct the research activities, including data collection, analysis, interpretation, and reporting on results. At times a singlehanded marketing manager or research specialist runs the entire research project. At other times, a company may contract with a marketing research analyst or consulting firm to conduct the research. In this situation, the marketing manager provides supervisory oversight to ensure the research delivers on expectations.

Finally, the research plan indicates who will interpret the research findings and how the findings will be reported. This part of the research plan should consider the internal audience(s) for the research and what reporting format will be most helpful. Often, senior executives are primary stakeholders, and they’re anxious for marketing research to inform and validate their choices. When this is the case, getting their buy-in on the research plan is recommended to make sure that they are comfortable with the approach and receptive to the potential findings.

Applied Example: A Bookends Research Plan

You talk over the results of your problem identification work with Dan. He thinks you’re on the right track and wants to know what’s next. You explain that the next step is to put together a detailed plan for getting answers to the research questions.

Dan is enthusiastic, but he’s also short on money. You realize that such a financial constraint will limit what’s possible, but with Dan’s help you can do something worthwhile. Below is the research plan you sketch out:

Step 3: Conduct the Research

Conducting research can be a fun and exciting part of the marketing research process. After struggling with the gaps in your knowledge of market dynamics—which led you to embark on a marketing research project in the first place—now things are about to change. Conducting research begins to generate information that helps answer your urgent marketing questions.

Typically data collection begins by reviewing any existing research and data that provide some information or insight about the problem. As a rule, this is secondary research. Prior research projects, internal data analyses, industry reports, customer-satisfaction survey results, and other information sources may be worthwhile to review. Even though these resources may not answer your research questions fully, they may further illuminate the problem you are trying to solve. Secondary research and data sources are nearly always cheaper than capturing new information on your own. Your marketing research project should benefit from prior work wherever possible.

After getting everything you can from secondary research, it’s time to shift attention to primary research, if this is part of your research plan. Primary research involves asking questions and then listening to and/or observing the behavior of the target audience you are studying. In order to generate reliable, accurate results, it is important to use proper scientific methods for primary research data collection and analysis. This includes identifying the right individuals and number of people to talk to, using carefully worded surveys or interview scripts, and capturing data accurately.

Without proper techniques, you may inadvertently get bad data or discover bias in the responses that distorts the results and points you in the wrong direction. The module on Marketing Research Techniques discusses these issues in further detail, since the procedures for getting reliable data vary by research method.

Applied Example: Getting the Data on Bookends

Dan is on board with the research plan, and he’s excited to dig into the project. You start with secondary data, getting a dump of Dan’s sales data from the past two years, along with related information: customer name, zip code, frequency of purchase, gender, date of purchase, and discounts/promotions (if any).

You visit the U.S. Census Bureau Web site to download demographic data about your metro area. The data show all zip codes in the area, along with population size, gender breakdown, age ranges, income, and education levels.

The next part of the project is customer-survey data. You work with Dan to put together a short survey about customer attitudes toward Bookends, how often and why they come, where else they spend money on books and entertainment, and why they go other places besides Bookends. Dan comes up with the great idea of offering a 5 percent discount coupon to anyone who completes the survey. Although it eats into his profits, this scheme gets more people to complete the survey and buy books, so it’s worth it.

For a couple of days, you and Dan take turns doing “man on the street” interviews (you interview the guy in the red hat, for instance). You find people who say they’ve never been to Bookends and ask them a few questions about why they haven’t visited the store, where else they buy books and other entertainment, and what might get them interested in visiting Bookends sometime. This is all a lot of work, but for a zero-budget project, it’s coming together pretty well.

Step 4: Analyze and Report Findings

Analyzing the data obtained in a market survey involves transforming the primary and/or secondary data into useful information and insights that answer the research questions. This information is condensed into a format to be used by managers—usually a presentation or detailed report.

Analysis starts with formatting, cleaning, and editing the data to make sure that it’s suitable for whatever analytical techniques are being used. Next, data are tabulated to show what’s happening: What do customers actually think? What’s happening with purchasing or other behaviors? How do revenue figures actually add up? Whatever the research questions, the analysis takes source data and applies analytical techniques to provide a clearer picture of what’s going on. This process may involve simple or sophisticated techniques, depending on the research outcomes required. Common analytical techniques include regression analysis to determine correlations between factors; conjoint analysis to determine trade-offs and priorities; predictive modeling to anticipate patterns and causality; and analysis of unstructured data such as Internet search terms or social media posts to provide context and meaning around what people say and do.

Good analysis is important because the interpretation of research data—the “so what?” factor—depends on it. The analysis combs through data to paint a picture of what’s going on. The interpretation goes further to explain what the research data mean and make recommendations about what managers need to know and do based on the research results. For example, what is the short list of key findings and takeaways that managers should remember from the research? What are the market segments you’ve identified, and which ones should you target?  What are the primary reasons your customers choose your competitor’s product over yours, and what does this mean for future improvements to your product?

Individuals with a good working knowledge of the business should be involved in interpreting the data because they are in the best position to identify significant insights and make recommendations from the research findings. Marketing research reports incorporate both analysis and interpretation of data to address the project objectives.

The final report for a marketing research project may be in written form or slide-presentation format, depending on organizational culture and management preferences. Often a slide presentation is the preferred format for initially sharing research results with internal stakeholders. Particularly for large, complex projects, a written report may be a better format for discussing detailed findings and nuances in the data, which managers can study and reference in the future.

Applied Example: Analysis and Insights for Bookends

Getting the data was a bit of a hassle, but now you’ve got it, and you’re excited to see what it reveals. Your statistician cousin, Marina, turns out to be a whiz with both the sales data and the census data. She identified several demographic profiles in the metro area that looked a lot like lifestyle segments. Then she mapped Bookends’ sales data into those segments to show who is and isn’t visiting Bookends. After matching customer-survey data to the sales data, she broke down the segments further based on their spending levels and reasons they visit Bookends.

Gradually a clearer picture of Bookends’ customers is beginning to emerge: who they are, why they come, why they don’t come, and what role Bookends plays in their lives. Right away, a couple of higher-priority segments—based on their spending levels, proximity, and loyalty to Bookends—stand out. You and your uncle are definitely seeing some possibilities for making the bookstore a more prominent part of their lives. You capture these insights as “recommendations to be considered” while you evaluate the right marketing mix for each of the new segments you’d like to focus on.

Step 5: Take Action

Once the report is complete, the presentation is delivered, and the recommendations are made, the marketing research project is over, right? Wrong.

What comes next is arguably the most important step of all: taking action based on your research results.

If your project has done a good job interpreting the findings and translating them into recommendations for the marketing team and other areas of the business, this step may seem relatively straightforward. When the research results validate a path the organization is already on, the “take action” step can galvanize the team to move further and faster in that same direction.

Things are not so simple when the research results indicate a new direction or a significant shift is advisable. In these cases, it’s worthwhile to spend time helping managers understand the research, explain why it is wise to shift course, and explain how the business will benefit from the new path. As with any important business decision, managers must think deeply about the new approach and carefully map strategies, tactics, and available resources to plan effectively. By making the results available and accessible to managers and their execution teams, the marketing research project can serve as an ongoing guide and touchstone to help the organization plan, execute, and adjust course as it works toward desired goals and outcomes.

It is worth mentioning that many marketing research projects are never translated into management action. Sometimes this is because the report is too technical and difficult to understand. In other cases, the research conclusions fail to provide useful insights or solutions to the problem, or the report writer fails to offer specific suggestions for translating the research findings into management strategy. These pitfalls can be avoided by paying due attention to the research objectives throughout the project and allocating sufficient time and resources to do a good job interpreting research results for those who will need to act on them.

Applied Example: Bookends’ New Customer Campaign

Your research findings and recommendations identified three segments for Bookends to focus on. Based on the demographics, lifestyle, and spending patterns found during your marketing research, you’re able to name them: 1) Bored Empty-Nesters, 2) Busy Families, and 3) Hipster Wannabes. Dan has a decent-sized clientele across all three groups, and they are pretty good spenders when they come in. But until now he hasn’t done much to purposely attract any of them.

With newly identified segments in focus, you and Dan begin brainstorming about a marketing mix to target each group. What types of books and other products would appeal to each one? What activities or events would bring them into the store? Are there promotions or particular messages that would induce them to buy at Bookends instead of Amazon or another bookseller? How will Dan reach and communicate with each group? And what can you do to bring more new customers into the store within these target groups?

Even though Bookends is a real-life project with serious consequences for your uncle Dan, it’s also a fun laboratory where you can test out some of the principles you’re learning in your marketing class. You’re figuring out quickly what it’s like to be a marketer.

Well done, rookie!

Check Your Understanding

Answer the question(s) below to see how well you understand the topics covered in this outcome. This short quiz does  not  count toward your grade in the class, and you can retake it an unlimited number of times.

Use this quiz to check your understanding and decide whether to (1) study the previous section further or (2) move on to the next section.

• Revision and Adaptation. Authored by : Lumen Learning. License : CC BY: Attribution
• Chapter 3: Marketing Research: An Aid to Decision Making, from Introducing Marketing. Authored by : John Burnett. Provided by : Global Text. Located at : http://solr.bccampus.ca:8001/bcc/file/ddbe3343-9796-4801-a0cb-7af7b02e3191/1/Core%20Concepts%20of%20Marketing.pdf . License : CC BY: Attribution
• Urban life (Version 2.0). Authored by : Ian D. Keating. Located at : https://www.flickr.com/photos/ian-arlett/19313315520/ . License : CC BY: Attribution

Want to create or adapt books like this? Learn more about how Pressbooks supports open publishing practices.

10.2 Steps in the Marketing Research Process

Learning objective.

• Describe the basic steps in the marketing research process and the purpose of each step.

The basic steps used to conduct marketing research are shown in Figure 10.6 “Steps in the Marketing Research Process” . Next, we discuss each step.

Figure 10.6 Steps in the Marketing Research Process

Step 1: Define the Problem (or Opportunity)

There’s a saying in marketing research that a problem half defined is a problem half solved. Defining the “problem” of the research sounds simple, doesn’t it? Suppose your product is tutoring other students in a subject you’re a whiz at. You have been tutoring for a while, and people have begun to realize you’re darned good at it. Then, suddenly, your business drops off. Or it explodes, and you can’t cope with the number of students you’re being asked help. If the business has exploded, should you try to expand your services? Perhaps you should subcontract with some other “whiz” students. You would send them students to be tutored, and they would give you a cut of their pay for each student you referred to them.

Both of these scenarios would be a problem for you, wouldn’t they? They are problems insofar as they cause you headaches. But are they really the problem? Or are they the symptoms of something bigger? For example, maybe your business has dropped off because your school is experiencing financial trouble and has lowered the number of scholarships given to incoming freshmen. Consequently, there are fewer total students on campus who need your services. Conversely, if you’re swamped with people who want you to tutor them, perhaps your school awarded more scholarships than usual, so there are a greater number of students who need your services. Alternately, perhaps you ran an ad in your school’s college newspaper, and that led to the influx of students wanting you to tutor them.

Businesses are in the same boat you are as a tutor. They take a look at symptoms and try to drill down to the potential causes. If you approach a marketing research company with either scenario—either too much or too little business—the firm will seek more information from you such as the following:

• In what semester(s) did your tutoring revenues fall (or rise)?
• In what subject areas did your tutoring revenues fall (or rise)?
• In what sales channels did revenues fall (or rise): Were there fewer (or more) referrals from professors or other students? Did the ad you ran result in fewer (or more) referrals this month than in the past months?
• Among what demographic groups did your revenues fall (or rise)—women or men, people with certain majors, or first-year, second-, third-, or fourth-year students?

The key is to look at all potential causes so as to narrow the parameters of the study to the information you actually need to make a good decision about how to fix your business if revenues have dropped or whether or not to expand it if your revenues have exploded.

The next task for the researcher is to put into writing the research objective. The research objective is the goal(s) the research is supposed to accomplish. The marketing research objective for your tutoring business might read as follows:

To survey college professors who teach 100- and 200-level math courses to determine why the number of students referred for tutoring dropped in the second semester.

This is admittedly a simple example designed to help you understand the basic concept. If you take a marketing research course, you will learn that research objectives get a lot more complicated than this. The following is an example:

“To gather information from a sample representative of the U.S. population among those who are ‘very likely’ to purchase an automobile within the next 6 months, which assesses preferences (measured on a 1–5 scale ranging from ‘very likely to buy’ to ‘not likely at all to buy’) for the model diesel at three different price levels. Such data would serve as input into a forecasting model that would forecast unit sales, by geographic regions of the country, for each combination of the model’s different prices and fuel configurations (Burns & Bush, 2010).”

Now do you understand why defining the problem is complicated and half the battle? Many a marketing research effort is doomed from the start because the problem was improperly defined. Coke’s ill-fated decision to change the formula of Coca-Cola in 1985 is a case in point: Pepsi had been creeping up on Coke in terms of market share over the years as well as running a successful promotional campaign called the “Pepsi Challenge,” in which consumers were encouraged to do a blind taste test to see if they agreed that Pepsi was better. Coke spent four years researching “the problem.” Indeed, people seemed to like the taste of Pepsi better in blind taste tests. Thus, the formula for Coke was changed. But the outcry among the public was so great that the new formula didn’t last long—a matter of months—before the old formula was reinstated. Some marketing experts believe Coke incorrectly defined the problem as “How can we beat Pepsi in taste tests?” instead of “How can we gain market share against Pepsi?” (Burns & Bush, 2010)

New Coke Is It! 1985

(click to see video)

This video documents the Coca-Cola Company’s ill-fated launch of New Coke in 1985.

1985 Pepsi Commercial—“They Changed My Coke”

This video shows how Pepsi tried to capitalize on the blunder.

Step 2: Design the Research

The next step in the marketing research process is to do a research design. The research design is your “plan of attack.” It outlines what data you are going to gather and from whom, how and when you will collect the data, and how you will analyze it once it’s been obtained. Let’s look at the data you’re going to gather first.

There are two basic types of data you can gather. The first is primary data. Primary data is information you collect yourself, using hands-on tools such as interviews or surveys, specifically for the research project you’re conducting. Secondary data is data that has already been collected by someone else, or data you have already collected for another purpose. Collecting primary data is more time consuming, work intensive, and expensive than collecting secondary data. Consequently, you should always try to collect secondary data first to solve your research problem, if you can. A great deal of research on a wide variety of topics already exists. If this research contains the answer to your question, there is no need for you to replicate it. Why reinvent the wheel?

Sources of Secondary Data

Your company’s internal records are a source of secondary data. So are any data you collect as part of your marketing intelligence gathering efforts. You can also purchase syndicated research. Syndicated research is primary data that marketing research firms collect on a regular basis and sell to other companies. J.D. Power & Associates is a provider of syndicated research. The company conducts independent, unbiased surveys of customer satisfaction, product quality, and buyer behavior for various industries. The company is best known for its research in the automobile sector. One of the best-known sellers of syndicated research is the Nielsen Company, which produces the Nielsen ratings. The Nielsen ratings measure the size of television, radio, and newspaper audiences in various markets. You have probably read or heard about TV shows that get the highest (Nielsen) ratings. (Arbitron does the same thing for radio ratings.) Nielsen, along with its main competitor, Information Resources, Inc. (IRI), also sells businesses scanner-based research . Scanner-based research is information collected by scanners at checkout stands in stores. Each week Nielsen and IRI collect information on the millions of purchases made at stores. The companies then compile the information and sell it to firms in various industries that subscribe to their services. The Nielsen Company has also recently teamed up with Facebook to collect marketing research information. Via Facebook, users will see surveys in some of the spaces in which they used to see online ads (Rappeport, Gelles, 2009).

By contrast, MarketResearch.com is an example of a marketing research aggregator. A marketing research aggregator is a marketing research company that doesn’t conduct its own research and sell it. Instead, it buys research reports from other marketing research companies and then sells the reports in their entirety or in pieces to other firms. Check out MarketResearch.com’s Web site. As you will see there are a huge number of studies in every category imaginable that you can buy for relatively small amounts of money.

Figure 10.7

Market research aggregators buy research reports from other marketing research companies and then resell them in part or in whole to other companies so they don’t have to gather primary data.

Source: http://www.marketresearch.com .

Your local library is a good place to gather free secondary data. It has searchable databases as well as handbooks, dictionaries, and books, some of which you can access online. Government agencies also collect and report information on demographics, economic and employment data, health information, and balance-of-trade statistics, among a lot of other information. The U.S. Census Bureau collects census data every ten years to gather information about who lives where. Basic demographic information about sex, age, race, and types of housing in which people live in each U.S. state, metropolitan area, and rural area is gathered so that population shifts can be tracked for various purposes, including determining the number of legislators each state should have in the U.S. House of Representatives. For the U.S. government, this is primary data. For marketing managers it is an important source of secondary data.

The Survey Research Center at the University of Michigan also conducts periodic surveys and publishes information about trends in the United States. One research study the center continually conducts is called the “Changing Lives of American Families” ( http://www.isr.umich.edu/home/news/research-update/2007-01.pdf ). This is important research data for marketing managers monitoring consumer trends in the marketplace. The World Bank and the United Nations are two international organizations that collect a great deal of information. Their Web sites contain many free research studies and data related to global markets. Table 10.1 “Examples of Primary Data Sources versus Secondary Data Sources” shows some examples of primary versus secondary data sources.

Table 10.1 Examples of Primary Data Sources versus Secondary Data Sources

Gauging the Quality of Secondary Data

When you are gathering secondary information, it’s always good to be a little skeptical of it. Sometimes studies are commissioned to produce the result a client wants to hear—or wants the public to hear. For example, throughout the twentieth century, numerous studies found that smoking was good for people’s health. The problem was the studies were commissioned by the tobacco industry. Web research can also pose certain hazards. There are many biased sites that try to fool people that they are providing good data. Often the data is favorable to the products they are trying to sell. Beware of product reviews as well. Unscrupulous sellers sometimes get online and create bogus ratings for products. See below for questions you can ask to help gauge the credibility of secondary information.

Gauging the Credibility of Secondary Data: Questions to Ask

• Who gathered this information?
• For what purpose?
• What does the person or organization that gathered the information have to gain by doing so?
• Was the information gathered and reported in a systematic manner?
• Is the source of the information accepted as an authority by other experts in the field?
• Does the article provide objective evidence to support the position presented?

Types of Research Design

Now let’s look specifically at the types of research designs that are utilized. By understanding different types of research designs, a researcher can solve a client’s problems more quickly and efficiently without jumping through more hoops than necessary. Research designs fall into one of the following three categories:

• Exploratory research design
• Descriptive research design
• Causal research design (experiments)

An exploratory research design is useful when you are initially investigating a problem but you haven’t defined it well enough to do an in-depth study of it. Perhaps via your regular market intelligence, you have spotted what appears to be a new opportunity in the marketplace. You would then do exploratory research to investigate it further and “get your feet wet,” as the saying goes. Exploratory research is less structured than other types of research, and secondary data is often utilized.

One form of exploratory research is qualitative research. Qualitative research is any form of research that includes gathering data that is not quantitative, and often involves exploring questions such as why as much as what or how much . Different forms, such as depth interviews and focus group interviews, are common in marketing research.

The depth interview —engaging in detailed, one-on-one, question-and-answer sessions with potential buyers—is an exploratory research technique. However, unlike surveys, the people being interviewed aren’t asked a series of standard questions. Instead the interviewer is armed with some general topics and asks questions that are open ended, meaning that they allow the interviewee to elaborate. “How did you feel about the product after you purchased it?” is an example of a question that might be asked. A depth interview also allows a researcher to ask logical follow-up questions such as “Can you tell me what you mean when you say you felt uncomfortable using the service?” or “Can you give me some examples?” to help dig further and shed additional light on the research problem. Depth interviews can be conducted in person or over the phone. The interviewer either takes notes or records the interview.

Focus groups and case studies are often utilized for exploratory research as well. A focus group is a group of potential buyers who are brought together to discuss a marketing research topic with one another. A moderator is used to focus the discussion, the sessions are recorded, and the main points of consensus are later summarized by the market researcher. Textbook publishers often gather groups of professors at educational conferences to participate in focus groups. However, focus groups can also be conducted on the telephone, in online chat rooms, or both, using meeting software like WebEx. The basic steps of conducting a focus group are outlined below.

The Basic Steps of Conducting a Focus Group

• Establish the objectives of the focus group. What is its purpose?
• Identify the people who will participate in the focus group. What makes them qualified to participate? How many of them will you need and what they will be paid?
• Obtain contact information for the participants and send out invitations (usually e-mails are most efficient).
• Develop a list of questions.
• Choose a facilitator.
• Choose a location in which to hold the focus group and the method by which it will be recorded.
• Conduct the focus group. If the focus group is not conducted electronically, include name tags for the participants, pens and notepads, any materials the participants need to see, and refreshments. Record participants’ responses.
• Summarize the notes from the focus group and write a report for management.

A case study looks at how another company solved the problem that’s being researched. Sometimes multiple cases, or companies, are used in a study. Case studies nonetheless have a mixed reputation. Some researchers believe it’s hard to generalize, or apply, the results of a case study to other companies. Nonetheless, collecting information about companies that encountered the same problems your firm is facing can give you a certain amount of insight about what direction you should take. In fact, one way to begin a research project is to carefully study a successful product or service.

Two other types of qualitative data used for exploratory research are ethnographies and projective techniques. In an ethnography , researchers interview, observe, and often videotape people while they work, live, shop, and play. The Walt Disney Company has recently begun using ethnographers to uncover the likes and dislikes of boys aged six to fourteen, a financially attractive market segment for Disney, but one in which the company has been losing market share. The ethnographers visit the homes of boys, observe the things they have in their rooms to get a sense of their hobbies, and accompany them and their mothers when they shop to see where they go, what the boys are interested in, and what they ultimately buy. (The children get seventy-five dollars out of the deal, incidentally.) (Barnes, 2009)

Projective techniques are used to reveal information research respondents might not reveal by being asked directly. Asking a person to complete sentences such as the following is one technique:

People who buy Coach handbags __________.

(Will he or she reply with “are cool,” “are affluent,” or “are pretentious,” for example?)

KFC’s grilled chicken is ______.

Or the person might be asked to finish a story that presents a certain scenario. Word associations are also used to discern people’s underlying attitudes toward goods and services. Using a word-association technique, a market researcher asks a person to say or write the first word that comes to his or her mind in response to another word. If the initial word is “fast food,” what word does the person associate it with or respond with? Is it “McDonald’s”? If many people reply that way, and you’re conducting research for Burger King, that could indicate Burger King has a problem. However, if the research is being conducted for Wendy’s, which recently began running an advertising campaign to the effect that Wendy’s offerings are “better than fast food,” it could indicate that the campaign is working.

Completing cartoons is yet another type of projective technique. It’s similar to finishing a sentence or story, only with the pictures. People are asked to look at a cartoon such as the one shown in Figure 10.8 “Example of a Cartoon-Completion Projective Technique” . One of the characters in the picture will have made a statement, and the person is asked to fill in the empty cartoon “bubble” with how they think the second character will respond.

Figure 10.8 Example of a Cartoon-Completion Projective Technique

In some cases, your research might end with exploratory research. Perhaps you have discovered your organization lacks the resources needed to produce the product. In other cases, you might decide you need more in-depth, quantitative research such as descriptive research or causal research, which are discussed next. Most marketing research professionals advise using both types of research, if it’s feasible. On the one hand, the qualitative-type research used in exploratory research is often considered too “lightweight.” Remember earlier in the chapter when we discussed telephone answering machines and the hit TV sitcom Seinfeld ? Both product ideas were initially rejected by focus groups. On the other hand, relying solely on quantitative information often results in market research that lacks ideas.

The Stone Wheel—What One Focus Group Said

Watch the video to see a funny spoof on the usefulness—or lack of usefulness—of focus groups.

Descriptive Research

Anything that can be observed and counted falls into the category of descriptive research design. A study using a descriptive research design involves gathering hard numbers, often via surveys, to describe or measure a phenomenon so as to answer the questions of who , what , where , when , and how . “On a scale of 1–5, how satisfied were you with your service?” is a question that illustrates the information a descriptive research design is supposed to capture.

Physiological measurements also fall into the category of descriptive design. Physiological measurements measure people’s involuntary physical responses to marketing stimuli, such as an advertisement. Elsewhere, we explained that researchers have gone so far as to scan the brains of consumers to see what they really think about products versus what they say about them. Eye tracking is another cutting-edge type of physiological measurement. It involves recording the movements of a person’s eyes when they look at some sort of stimulus, such as a banner ad or a Web page. The Walt Disney Company has a research facility in Austin, Texas, that it uses to take physical measurements of viewers when they see Disney programs and advertisements. The facility measures three types of responses: people’s heart rates, skin changes, and eye movements (eye tracking) (Spangler, 2009).

Figure 10.9

A woman shows off her headgear for an eye-tracking study. The gear’s not exactly a fashion statement but . . .

lawrencegs – Google Glass – CC BY 2.0.

A strictly descriptive research design instrument—a survey, for example—can tell you how satisfied your customers are. It can’t, however, tell you why. Nor can an eye-tracking study tell you why people’s eyes tend to dwell on certain types of banner ads—only that they do. To answer “why” questions an exploratory research design or causal research design is needed (Wagner, 2007).

Causal Research

Causal research design examines cause-and-effect relationships. Using a causal research design allows researchers to answer “what if” types of questions. In other words, if a firm changes X (say, a product’s price, design, placement, or advertising), what will happen to Y (say, sales or customer loyalty)? To conduct causal research, the researcher designs an experiment that “controls,” or holds constant, all of a product’s marketing elements except one (or using advanced techniques of research, a few elements can be studied at the same time). The one variable is changed, and the effect is then measured. Sometimes the experiments are conducted in a laboratory using a simulated setting designed to replicate the conditions buyers would experience. Or the experiments may be conducted in a virtual computer setting.

You might think setting up an experiment in a virtual world such as the online game Second Life would be a viable way to conduct controlled marketing research. Some companies have tried to use Second Life for this purpose, but the results have been somewhat mixed as to whether or not it is a good medium for marketing research. The German marketing research firm Komjuniti was one of the first “real-world” companies to set up an “island” in Second Life upon which it could conduct marketing research. However, with so many other attractive fantasy islands in which to play, the company found it difficult to get Second Life residents, or players, to voluntarily visit the island and stay long enough so meaningful research could be conducted. (Plus, the “residents,” or players, in Second Life have been known to protest corporations invading their world. When the German firm Komjuniti created an island in Second Life to conduct marketing research, the residents showed up waving signs and threatening to boycott the island.) (Wagner, 2007)

Why is being able to control the setting so important? Let’s say you are an American flag manufacturer and you are working with Walmart to conduct an experiment to see where in its stores American flags should be placed so as to increase their sales. Then the terrorist attacks of 9/11 occur. In the days afterward, sales skyrocketed—people bought flags no matter where they were displayed. Obviously, the terrorist attacks in the United States would have skewed the experiment’s data.

An experiment conducted in a natural setting such as a store is referred to as a field experiment . Companies sometimes do field experiments either because it is more convenient or because they want to see if buyers will behave the same way in the “real world” as in a laboratory or on a computer. The place the experiment is conducted or the demographic group of people the experiment is administered to is considered the test market . Before a large company rolls out a product to the entire marketplace, it will often place the offering in a test market to see how well it will be received. For example, to compete with MillerCoors’ sixty-four-calorie beer MGD 64, Anheuser-Busch recently began testing its Select 55 beer in certain cities around the country (McWilliams, 2009).

Figure 10.10

Select 55 beer: Coming soon to a test market near you? (If you’re on a diet, you have to hope so!)

Martine – Le champagne – CC BY-NC 2.0.

Many companies use experiments to test all of their marketing communications. For example, the online discount retailer O.co (formerly called Overstock.com) carefully tests all of its marketing offers and tracks the results of each one. One study the company conducted combined twenty-six different variables related to offers e-mailed to several thousand customers. The study resulted in a decision to send a group of e-mails to different segments. The company then tracked the results of the sales generated to see if they were in line with the earlier experiment it had conducted that led it to make the offer.

Step 3: Design the Data-Collection Forms

If the behavior of buyers is being formally observed, and a number of different researchers are conducting observations, the data obviously need to be recorded on a standardized data-collection form that’s either paper or electronic. Otherwise, the data collected will not be comparable. The items on the form could include a shopper’s sex; his or her approximate age; whether the person seemed hurried, moderately hurried, or unhurried; and whether or not he or she read the label on products, used coupons, and so forth.

The same is true when it comes to surveying people with questionnaires. Surveying people is one of the most commonly used techniques to collect quantitative data. Surveys are popular because they can be easily administered to large numbers of people fairly quickly. However, to produce the best results, the questionnaire for the survey needs to be carefully designed.

Questionnaire Design

Most questionnaires follow a similar format: They begin with an introduction describing what the study is for, followed by instructions for completing the questionnaire and, if necessary, returning it to the market researcher. The first few questions that appear on the questionnaire are usually basic, warm-up type of questions the respondent can readily answer, such as the respondent’s age, level of education, place of residence, and so forth. The warm-up questions are then followed by a logical progression of more detailed, in-depth questions that get to the heart of the question being researched. Lastly, the questionnaire wraps up with a statement that thanks the respondent for participating in the survey and information and explains when and how they will be paid for participating. To see some examples of questionnaires and how they are laid out, click on the following link: http://cas.uah.edu/wrenb/mkt343/Project/Sample%20Questionnaires.htm .

How the questions themselves are worded is extremely important. It’s human nature for respondents to want to provide the “correct” answers to the person administering the survey, so as to seem agreeable. Therefore, there is always a hazard that people will try to tell you what you want to hear on a survey. Consequently, care needs to be taken that the survey questions are written in an unbiased, neutral way. In other words, they shouldn’t lead a person taking the questionnaire to answer a question one way or another by virtue of the way you have worded it. The following is an example of a leading question.

Don’t you agree that teachers should be paid more ?

The questions also need to be clear and unambiguous. Consider the following question:

Which brand of toothpaste do you use ?

The question sounds clear enough, but is it really? What if the respondent recently switched brands? What if she uses Crest at home, but while away from home or traveling, she uses Colgate’s Wisp portable toothpaste-and-brush product? How will the respondent answer the question? Rewording the question as follows so it’s more specific will help make the question clearer:

Which brand of toothpaste have you used at home in the past six months? If you have used more than one brand, please list each of them 1 .

Sensitive questions have to be asked carefully. For example, asking a respondent, “Do you consider yourself a light, moderate, or heavy drinker?” can be tricky. Few people want to admit to being heavy drinkers. You can “soften” the question by including a range of answers, as the following example shows:

How many alcoholic beverages do you consume in a week ?

• __0–5 alcoholic beverages
• __5–10 alcoholic beverages
• __10–15 alcoholic beverages

Many people don’t like to answer questions about their income levels. Asking them to specify income ranges rather than divulge their actual incomes can help.

Other research question “don’ts” include using jargon and acronyms that could confuse people. “How often do you IM?” is an example. Also, don’t muddy the waters by asking two questions in the same question, something researchers refer to as a double-barreled question . “Do you think parents should spend more time with their children and/or their teachers?” is an example of a double-barreled question.

Open-ended questions , or questions that ask respondents to elaborate, can be included. However, they are harder to tabulate than closed-ended questions , or questions that limit a respondent’s answers. Multiple-choice and yes-and-no questions are examples of closed-ended questions.

Testing the Questionnaire

You have probably heard the phrase “garbage in, garbage out.” If the questions are bad, the information gathered will be bad, too. One way to make sure you don’t end up with garbage is to test the questionnaire before sending it out to find out if there are any problems with it. Is there enough space for people to elaborate on open-ended questions? Is the font readable? To test the questionnaire, marketing research professionals first administer it to a number of respondents face to face. This gives the respondents the chance to ask the researcher about questions or instructions that are unclear or don’t make sense to them. The researcher then administers the questionnaire to a small subset of respondents in the actual way the survey is going to be disseminated, whether it’s delivered via phone, in person, by mail, or online.

Getting people to participate and complete questionnaires can be difficult. If the questionnaire is too long or hard to read, many people won’t complete it. So, by all means, eliminate any questions that aren’t necessary. Of course, including some sort of monetary incentive for completing the survey can increase the number of completed questionnaires a market researcher will receive.

Step 4: Specify the Sample

Once you have created your questionnaire or other marketing study, how do you figure out who should participate in it? Obviously, you can’t survey or observe all potential buyers in the marketplace. Instead, you must choose a sample. A sample is a subset of potential buyers that are representative of your entire target market, or population being studied. Sometimes market researchers refer to the population as the universe to reflect the fact that it includes the entire target market, whether it consists of a million people, a hundred thousand, a few hundred, or a dozen. “All unmarried people over the age of eighteen who purchased Dirt Devil steam cleaners in the United States during 2011” is an example of a population that has been defined.

Obviously, the population has to be defined correctly. Otherwise, you will be studying the wrong group of people. Not defining the population correctly can result in flawed research, or sampling error. A sampling error is any type of marketing research mistake that results because a sample was utilized. One criticism of Internet surveys is that the people who take these surveys don’t really represent the overall population. On average, Internet survey takers tend to be more educated and tech savvy. Consequently, if they solely constitute your population, even if you screen them for certain criteria, the data you collect could end up being skewed.

The next step is to put together the sampling frame , which is the list from which the sample is drawn. The sampling frame can be put together using a directory, customer list, or membership roster (Wrenn et. al., 2007). Keep in mind that the sampling frame won’t perfectly match the population. Some people will be included on the list who shouldn’t be. Other people who should be included will be inadvertently omitted. It’s no different than if you were to conduct a survey of, say, 25 percent of your friends, using friends’ names you have in your cell phone. Most of your friends’ names are likely to be programmed into your phone, but not all of them. As a result, a certain degree of sampling error always occurs.

There are two main categories of samples in terms of how they are drawn: probability samples and nonprobability samples. A probability sample is one in which each would-be participant has a known and equal chance of being selected. The chance is known because the total number of people in the sampling frame is known. For example, if every other person from the sampling frame were chosen, each person would have a 50 percent chance of being selected.

A nonprobability sample is any type of sample that’s not drawn in a systematic way. So the chances of each would-be participant being selected can’t be known. A convenience sample is one type of nonprobability sample. It is a sample a researcher draws because it’s readily available and convenient to do so. Surveying people on the street as they pass by is an example of a convenience sample. The question is, are these people representative of the target market?

For example, suppose a grocery store needed to quickly conduct some research on shoppers to get ready for an upcoming promotion. Now suppose that the researcher assigned to the project showed up between the hours of 10 a.m. and 12 p.m. on a weekday and surveyed as many shoppers as possible. The problem is that the shoppers wouldn’t be representative of the store’s entire target market. What about commuters who stop at the store before and after work? Their views wouldn’t be represented. Neither would people who work the night shift or shop at odd hours. As a result, there would be a lot of room for sampling error in this study. For this reason, studies that use nonprobability samples aren’t considered as accurate as studies that use probability samples. Nonprobability samples are more often used in exploratory research.

Lastly, the size of the sample has an effect on the amount of sampling error. Larger samples generally produce more accurate results. The larger your sample is, the more data you will have, which will give you a more complete picture of what you’re studying. However, the more people surveyed or studied, the more costly the research becomes.

Statistics can be used to determine a sample’s optimal size. If you take a marketing research or statistics class, you will learn more about how to determine the optimal size.

Of course, if you hire a marketing research company, much of this work will be taken care of for you. Many marketing research companies, like ResearchNow, maintain panels of prescreened people they draw upon for samples. In addition, the marketing research firm will be responsible for collecting the data or contracting with a company that specializes in data collection. Data collection is discussed next.

Step 5: Collect the Data

As we have explained, primary marketing research data can be gathered in a number of ways. Surveys, taking physical measurements, and observing people are just three of the ways we discussed. If you’re observing customers as part of gathering the data, keep in mind that if shoppers are aware of the fact, it can have an effect on their behavior. For example, if a customer shopping for feminine hygiene products in a supermarket aisle realizes she is being watched, she could become embarrassed and leave the aisle, which would adversely affect your data. To get around problems such as these, some companies set up cameras or two-way mirrors to observe customers. Organizations also hire mystery shoppers to work around the problem. A mystery shopper is someone who is paid to shop at a firm’s establishment or one of its competitors to observe the level of service, cleanliness of the facility, and so forth, and report his or her findings to the firm.

Make Extra Money as a Mystery Shopper

Watch the YouTube video to get an idea of how mystery shopping works.

Survey data can be collected in many different ways and combinations of ways. The following are the basic methods used:

• Face-to-face (can be computer aided)
• Telephone (can be computer aided or completely automated)
• Mail and hand delivery
• E-mail and the Web

A face-to-face survey is, of course, administered by a person. The surveys are conducted in public places such as in shopping malls, on the street, or in people’s homes if they have agreed to it. In years past, it was common for researchers in the United States to knock on people’s doors to gather survey data. However, randomly collected door-to-door interviews are less common today, partly because people are afraid of crime and are reluctant to give information to strangers (McDaniel & Gates, 1998).

Nonetheless, “beating the streets” is still a legitimate way questionnaire data is collected. When the U.S. Census Bureau collects data on the nation’s population, it hand delivers questionnaires to rural households that do not have street-name and house-number addresses. And Census Bureau workers personally survey the homeless to collect information about their numbers. Face-to-face surveys are also commonly used in third world countries to collect information from people who cannot read or lack phones and computers.

A plus of face-to-face surveys is that they allow researchers to ask lengthier, more complex questions because the people being surveyed can see and read the questionnaires. The same is true when a computer is utilized. For example, the researcher might ask the respondent to look at a list of ten retail stores and rank the stores from best to worst. The same question wouldn’t work so well over the telephone because the person couldn’t see the list. The question would have to be rewritten. Another drawback with telephone surveys is that even though federal and state “do not call” laws generally don’t prohibit companies from gathering survey information over the phone, people often screen such calls using answering machines and caller ID.

Probably the biggest drawback of both surveys conducted face-to-face and administered over the phone by a person is that they are labor intensive and therefore costly. Mailing out questionnaires is costly, too, and the response rates can be rather low. Think about why that might be so: if you receive a questionnaire in the mail, it is easy to throw it in the trash; it’s harder to tell a market researcher who approaches you on the street that you don’t want to be interviewed.

By contrast, gathering survey data collected by a computer, either over the telephone or on the Internet, can be very cost-effective and in some cases free. SurveyMonkey and Zoomerang are two Web sites that will allow you to create online questionnaires, e-mail them to up to one hundred people for free, and view the responses in real time as they come in. For larger surveys, you have to pay a subscription price of a few hundred dollars. But that still can be extremely cost-effective. The two Web sites also have a host of other features such as online-survey templates you can use to create your questionnaire, a way to set up automatic reminders sent to people who haven’t yet completed their surveys, and tools you can use to create graphics to put in your final research report. To see how easy it is to put together a survey in SurveyMonkey, click on the following link: http://help.surveymonkey.com/app/tutorials/detail/a_id/423 .

Like a face-to-face survey, an Internet survey can enable you to show buyers different visuals such as ads, pictures, and videos of products and their packaging. Web surveys are also fast, which is a major plus. Whereas face-to-face and mailed surveys often take weeks to collect, you can conduct a Web survey in a matter of days or even hours. And, of course, because the information is electronically gathered it can be automatically tabulated. You can also potentially reach a broader geographic group than you could if you had to personally interview people. The Zoomerang Web site allows you to create surveys in forty different languages.

Another plus for Web and computer surveys (and electronic phone surveys) is that there is less room for human error because the surveys are administered electronically. For instance, there’s no risk that the interviewer will ask a question wrong or use a tone of voice that could mislead the respondents. Respondents are also likely to feel more comfortable inputting the information into a computer if a question is sensitive than they would divulging the information to another person face-to-face or over the phone. Given all of these advantages, it’s not surprising that the Internet is quickly becoming the top way to collect primary data. However, like mail surveys, surveys sent to people over the Internet are easy to ignore.

Lastly, before the data collection process begins, the surveyors and observers need to be trained to look for the same things, ask questions the same way, and so forth. If they are using rankings or rating scales, they need to be “on the same page,” so to speak, as to what constitutes a high ranking or a low ranking. As an analogy, you have probably had some teachers grade your college papers harder than others. The goal of training is to avoid a wide disparity between how different observers and interviewers record the data.

Figure 10.11

Training people so they know what constitutes different ratings when they are collecting data will improve the quality of the information gathered in a marketing research study.

Ricardo Rodriquez – Satisfaction survey – CC BY-NC-ND 2.0.

For example, if an observation form asks the observers to describe whether a shopper’s behavior is hurried, moderately hurried, or unhurried, they should be given an idea of what defines each rating. Does it depend on how much time the person spends in the store or in the individual aisles? How fast they walk? In other words, the criteria and ratings need to be spelled out.

Collecting International Marketing Research Data

Gathering marketing research data in foreign countries poses special challenges. However, that doesn’t stop firms from doing so. Marketing research companies are located all across the globe, in fact. Eight of the ten largest marketing research companies in the world are headquartered in the United States. However, five of these eight firms earn more of their revenues abroad than they do in the United States. There’s a reason for this: many U.S. markets were saturated, or tapped out, long ago in terms of the amount that they can grow. Coke is an example. As you learned earlier in the book, most of the Coca-Cola Company’s revenues are earned in markets abroad. To be sure, the United States is still a huge market when it comes to the revenues marketing research firms generate by conducting research in the country: in terms of their spending, American consumers fuel the world’s economic engine. Still, emerging countries with growing middle classes, such as China, India, and Brazil, are hot new markets companies want to tap.

What kind of challenges do firms face when trying to conduct marketing research abroad? As we explained, face-to-face surveys are commonly used in third world countries to collect information from people who cannot read or lack phones and computers. However, face-to-face surveys are also common in Europe, despite the fact that phones and computers are readily available. In-home surveys are also common in parts of Europe. By contrast, in some countries, including many Asian countries, it’s considered taboo or rude to try to gather information from strangers either face-to-face or over the phone. In many Muslim countries, women are forbidden to talk to strangers.

And how do you figure out whom to research in foreign countries? That in itself is a problem. In the United States, researchers often ask if they can talk to the heads of households to conduct marketing research. But in countries in which domestic servants or employees are common, the heads of households aren’t necessarily the principal shoppers; their domestic employees are (Malhotra).

Translating surveys is also an issue. Have you ever watched the TV comedians Jay Leno and David Letterman make fun of the English translations found on ethnic menus and products? Research tools such as surveys can suffer from the same problem. Hiring someone who is bilingual to translate a survey into another language can be a disaster if the person isn’t a native speaker of the language to which the survey is being translated.

One way companies try to deal with translation problems is by using back translation. When back translation is used, a native speaker translates the survey into the foreign language and then translates it back again to the original language to determine if there were gaps in meaning—that is, if anything was lost in translation. And it’s not just the language that’s an issue. If the research involves any visual images, they, too, could be a point of confusion. Certain colors, shapes, and symbols can have negative connotations in other countries. For example, the color white represents purity in many Western cultures, but in China, it is the color of death and mourning (Zouhali-Worrall, 2008). Also, look back at the cartoon-completion exercise in Figure 10.8 “Example of a Cartoon-Completion Projective Technique” . What would women in Muslim countries who aren’t allowed to converse with male sellers think of it? Chances are, the cartoon wouldn’t provide you with the information you’re seeking if Muslim women in some countries were asked to complete it.

One way marketing research companies are dealing with the complexities of global research is by merging with or acquiring marketing research companies abroad. The Nielsen Company is the largest marketing research company in the world. The firm operates in more than a hundred countries and employs more than forty thousand people. Many of its expansions have been the result of acquisitions and mergers.

Step 6: Analyze the Data

Step 6 involves analyzing the data to ensure it’s as accurate as possible. If the research is collected by hand using a pen and pencil, it’s entered into a computer. Or respondents might have already entered the information directly into a computer. For example, when Toyota goes to an event such as a car show, the automaker’s marketing personnel ask would-be buyers to complete questionnaires directly on computers. Companies are also beginning to experiment with software that can be used to collect data using mobile phones.

Once all the data is collected, the researchers begin the data cleaning , which is the process of removing data that have accidentally been duplicated (entered twice into the computer) or correcting data that have obviously been recorded wrong. A program such as Microsoft Excel or a statistical program such as Predictive Analytics Software (PASW, which was formerly known as SPSS) is then used to tabulate, or calculate, the basic results of the research, such as the total number of participants and how collectively they answered various questions. The programs can also be used to calculate averages, such as the average age of respondents, their average satisfaction, and so forth. The same can done for percentages, and other values you learned about, or will learn about, in a statistics course, such as the standard deviation, mean, and median for each question.

The information generated by the programs can be used to draw conclusions, such as what all customers might like or not like about an offering based on what the sample group liked or did not like. The information can also be used to spot differences among groups of people. For example, the research might show that people in one area of the country like the product better than people in another area. Trends to predict what might happen in the future can also be spotted.

If there are any open-ended questions respondents have elaborated upon—for example, “Explain why you like the current brand you use better than any other brand”—the answers to each are pasted together, one on top of another, so researchers can compare and summarize the information. As we have explained, qualitative information such as this can give you a fuller picture of the results of the research.

Part of analyzing the data is to see if it seems sound. Does the way in which the research was conducted seem sound? Was the sample size large enough? Are the conclusions that become apparent from it reasonable?

The two most commonly used criteria used to test the soundness of a study are (1) validity and (2) reliability. A study is valid if it actually tested what it was designed to test. For example, did the experiment you ran in Second Life test what it was designed to test? Did it reflect what could really happen in the real world? If not, the research isn’t valid. If you were to repeat the study, and get the same results (or nearly the same results), the research is said to be reliable . If you get a drastically different result if you repeat the study, it’s not reliable. The data collected, or at least some it, can also be compared to, or reconciled with, similar data from other sources either gathered by your firm or by another organization to see if the information seems on target.

Stage 7: Write the Research Report and Present Its Findings

If you end up becoming a marketing professional and conducting a research study after you graduate, hopefully you will do a great job putting the study together. You will have defined the problem correctly, chosen the right sample, collected the data accurately, analyzed it, and your findings will be sound. At that point, you will be required to write the research report and perhaps present it to an audience of decision makers. You will do so via a written report and, in some cases, a slide or PowerPoint presentation based on your written report.

The six basic elements of a research report are as follows.

• Title Page . The title page explains what the report is about, when it was conducted and by whom, and who requested it.
• Table of Contents . The table of contents outlines the major parts of the report, as well as any graphs and charts, and the page numbers on which they can be found.
• Executive Summary . The executive summary summarizes all the details in the report in a very quick way. Many people who receive the report—both executives and nonexecutives—won’t have time to read the entire report. Instead, they will rely on the executive summary to quickly get an idea of the study’s results and what to do about those results.

Methodology and Limitations . The methodology section of the report explains the technical details of how the research was designed and conducted. The section explains, for example, how the data was collected and by whom, the size of the sample, how it was chosen, and whom or what it consisted of (e.g., the number of women versus men or children versus adults). It also includes information about the statistical techniques used to analyze the data.

Every study has errors—sampling errors, interviewer errors, and so forth. The methodology section should explain these details, so decision makers can consider their overall impact. The margin of error is the overall tendency of the study to be off kilter—that is, how far it could have gone wrong in either direction. Remember how newscasters present the presidential polls before an election? They always say, “This candidate is ahead 48 to 44 percent, plus or minus 2 percent.” That “plus or minus” is the margin of error. The larger the margin of error is, the less likely the results of the study are accurate. The margin of error needs to be included in the methodology section.

• Findings . The findings section is a longer, fleshed-out version of the executive summary that goes into more detail about the statistics uncovered by the research that bolster the study’s findings. If you have related research or secondary data on hand that back up the findings, it can be included to help show the study did what it was designed to do.
• Recommendations . The recommendations section should outline the course of action you think should be taken based on the findings of the research and the purpose of the project. For example, if you conducted a global market research study to identify new locations for stores, make a recommendation for the locations (Mersdorf, 2009).

As we have said, these are the basic sections of a marketing research report. However, additional sections can be added as needed. For example, you might need to add a section on the competition and each firm’s market share. If you’re trying to decide on different supply chain options, you will need to include a section on that topic.

As you write the research report, keep your audience in mind. Don’t use technical jargon decision makers and other people reading the report won’t understand. If technical terms must be used, explain them. Also, proofread the document to ferret out any grammatical errors and typos, and ask a couple of other people to proofread behind you to catch any mistakes you might have missed. If your research report is riddled with errors, its credibility will be undermined, even if the findings and recommendations you make are extremely accurate.

Many research reports are presented via PowerPoint. If you’re asked to create a slideshow presentation from the report, don’t try to include every detail in the report on the slides. The information will be too long and tedious for people attending the presentation to read through. And if they do go to the trouble of reading all the information, they probably won’t be listening to the speaker who is making the presentation.

Instead of including all the information from the study in the slides, boil each section of the report down to key points and add some “talking points” only the presenter will see. After or during the presentation, you can give the attendees the longer, paper version of the report so they can read the details at a convenient time, if they choose to.

Key Takeaway

Step 1 in the marketing research process is to define the problem. Businesses take a look at what they believe are symptoms and try to drill down to the potential causes so as to precisely define the problem. The next task for the researcher is to put into writing the research objective, or goal, the research is supposed to accomplish. Step 2 in the process is to design the research. The research design is the “plan of attack.” It outlines what data you are going to gather, from whom, how, and when, and how you’re going to analyze it once it has been obtained. Step 3 is to design the data-collection forms, which need to be standardized so the information gathered on each is comparable. Surveys are a popular way to gather data because they can be easily administered to large numbers of people fairly quickly. However, to produce the best results, survey questionnaires need to be carefully designed and pretested before they are used. Step 4 is drawing the sample, or a subset of potential buyers who are representative of your entire target market. If the sample is not correctly selected, the research will be flawed. Step 5 is to actually collect the data, whether it’s collected by a person face-to-face, over the phone, or with the help of computers or the Internet. The data-collection process is often different in foreign countries. Step 6 is to analyze the data collected for any obvious errors, tabulate the data, and then draw conclusions from it based on the results. The last step in the process, Step 7, is writing the research report and presenting the findings to decision makers.

Review Questions

• Explain why it’s important to carefully define the problem or opportunity a marketing research study is designed to investigate.
• Describe the different types of problems that can occur when marketing research professionals develop questions for surveys.
• How does a probability sample differ from a nonprobability sample?
• What makes a marketing research study valid? What makes a marketing research study reliable?
• What sections should be included in a marketing research report? What is each section designed to do?

1 “Questionnaire Design,” QuickMBA , http://www.quickmba.com/marketing/research/qdesign (accessed December 14, 2009).

Barnes, B., “Disney Expert Uses Science to Draw Boy Viewers,” New York Times , April 15, 2009, http://www.nytimes.com/2009/04/14/arts/television/14boys.html?pagewanted=1&_r=1 (accessed December 14, 2009).

Burns A. and Ronald Bush, Marketing Research , 6th ed. (Upper Saddle River, NJ: Prentice Hall, 2010), 85.

Malhotra, N., Marketing Research: An Applied Approach , 6th ed. (Upper Saddle River, NJ: Prentice Hall), 764.

McDaniel, C. D. and Roger H. Gates, Marketing Research Essentials , 2nd ed. (Cincinnati: South-Western College Publishing, 1998), 61.

McWilliams, J., “A-B Puts Super-Low-Calorie Beer in Ring with Miller,” St. Louis Post-Dispatch , August 16, 2009, http://www.stltoday.com/business/next-matchup-light-weights-a-b-puts-super-low-calorie/article_47511bfe-18ca-5979-bdb9-0526c97d4edf.html (accessed April 13, 2012).

Mersdorf, S., “How to Organize Your Next Survey Report,” Cvent , August 24, 2009, http://survey.cvent.com/blog/cvent-survey/0/0/how-to-organize-your-next-survey-report (accessed December 14, 2009).

Rappeport A. and David Gelles, “Facebook to Form Alliance with Nielsen,” Financial Times , September 23, 2009, 16.

Spangler, T., “Disney Lab Tracks Feelings,” Multichannel News 30, no. 30 (August 3, 2009): 26.

Wagner, J., “Marketing in Second Life Doesn’t Work…Here Is Why!” GigaOM , April 4, 2007, http://gigaom.com/2007/04/04/3-reasons-why-marketing-in-second-life-doesnt-work (accessed December 14, 2009).

Wrenn, B., Robert E. Stevens, and David L. Loudon, Marketing Research: Text and Cases , 2nd ed. (Binghamton, NY: Haworth Press, 2007), 180.

Zouhali-Worrall, M., “Found in Translation: Avoiding Multilingual Gaffes,” CNNMoney.com , July 14, 2008, http://money.cnn.com/2008/07/07/smallbusiness/language_translation.fsb/index.htm (accessed December 14, 2009).

Principles of Marketing Copyright © 2015 by University of Minnesota is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License , except where otherwise noted.

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Marketing Research – Meaning, Scope, Objectives & Process

Meaning of marketing research.

Marketing research is a process of analyzing and conducting research about the market to understand market trends. It involves proper collection, analysis and interpretation of information regarding market conditions. Marketing research is mainly conducted to identify changes in preferences and behaviour of customers arising from the change in market mix elements viz. promotion, place, price and product. It may be defined as the mechanism which helps in linking the customers, producers and several other end users to the marketer and help in finding and communicating of all required information.

Scope of Marketing Research

Determines Customer Behaviour

Provide valuable data.

Effective decision making of any organisation depends entirely on the quality of information available with it. Marketing research supplies all important information about the market to the management team. It keeps organisation aware of market factors like demand, supply, competition, technological changes, consumer behaviour etc. All this information is vital for strategic decision making. Managers frame all their organisation policies in accordance with data supplied by marketing research.

Helps in Sales Forecasting

Lower business risk.

Marketing research plays an important role in reducing business risk and raising the revenue of the business organisation. It helps businesses in carrying on their operations in accordance with market requirements. The business acquires all current data and generalized information about market trends. All decisions are taken in order to focus on the customer’s current demands and thereby producing the right product. This results in avoiding resources of organisation and lowering risk.

Evaluate Market Performance

Facilitates introduction of new products.

Marketing research enables the business to examine and introduce their new products in the market. It enables to conduct testing of new products in small or local markets initially and studies consumer reaction towards it. This helps the business in understanding the deficiencies and problem in their product. They can accordingly overcome these issues and develops an efficient marketing mix for their product. All these helps in minimising the risk involved in the launching of a new product. 

Choose Best Promotion Techniques

Objectives of marketing research.

Identify Customer Needs And Expectations

Marketing research helps business in understanding the needs and wants of customers. Proper knowledge of what customer want is necessary to deliver the products as per their expectations. Marketing research involves reaching out to customers and interacting with them to understand their demands. It helps in developing the right product as per customer requirements.

Minimise Marketing Costs

Setting up proper price policy, finds target market and new opportunities.

Identifying potential customers and new opportunities are important for grabbing the market. Marketing research explores the wide and large market and find out the opportunities for new products by recognising the unfulfilled needs of customers.

Recognise Deficiencies In Product

These suggestions and feedback from customer help the customers in improving their product quality. Marketing research also informs of any technological changes in market to business so that accordingly changes can be made timely.

Product Positioning In Market

Process of marketing research, problem identification.

The first and foremost step in the marketing research process. The identification of problems. For which the research is to be conducted. Unless and until the problem is recognized clearly. No clear cut plan can be formed leading to wastage of resources.

Research Plan Formulation

Acquiring and gathering information, interpretation of information.

The successful collection of all required information. A systematic and proper study is to be done. To conduct a successful analysis of all collected information. To get details in accordance with the research plan.

Result Presentation

Decision making.

Marketing research plays an important role in studying consumer behaviour. It is very efficient tool for the marketers to understand the trends of the market that mainly consists of information relating to new product launch in the market, trends in consumer demand, pricing strategy of the competitor and available close substitutes of the product.

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10 Essential Methods for Effective Consumer and Market Research

When it comes to understanding the world around you, market research is an essential step.

We live in a world that’s overflowing with information. Sifting through all the noise to extract the most relevant insights on a certain market or audience can be tough.

That’s where market research comes in – it’s a way for brands and researchers to collect information from target markets and audiences.

Once reliant on traditional methods like focus groups or surveys, market research is now at a crossroads. Newer tools for extracting insights, like social listening tools, have joined the array of market research techniques available.

Here, we break down what market research is and the different methods you can choose from to make the most of it.

What is market research, and why is it critical for you as a marketer?

Market research involves collecting and analyzing data about a specific industry, market, or audience to inform strategic decision-making. It offers marketers valuable insights into the industry, market trends, consumer preferences, competition, and opportunities, enabling businesses to refine their strategies effectively.

By conducting market research, organizations can identify unmet needs, assess product demands, enhance value propositions, and create marketing campaigns that resonate with their target audience. 

This practice serves as a compass, guiding businesses in making data-driven decisions for successful product launches, improved customer relationships, and a stronger positioning in the business landscape. 

For marketers and insights professionals, market research is an indispensable tool. It helps them make smarter decisions and achieve growth and success in the market.

These 10 market research methods form the backbone of effective market research strategies. 

Continue reading or jump directly to each method by tapping the link below.

• Focus groups
• Consumer research with social media listening
• Experiments and field trials
• Observation
• Competitive analysis
• Public domain data
• Buy research
• Analyze sales data

Use of primary vs secondary market research

Market research can be split into two distinct sections: primary and secondary. These are the two main types of market research.

They can also be known as field and desk, respectively (although this terminology feels out of date, as plenty of primary research can be carried out from your desk).

Primary (field) research

Primary market research is research you carry out yourself. Examples of primary market research methods include running your own focus groups or conducting surveys. These are some of the key methods of consumer research. The ‘field’ part refers to going out into the field to get data.

Secondary (desk) research

Secondary market research is research carried out by other people that you want to use. Examples of secondary market research methods include studies carried out by researchers or financial data released by companies.

10 effective methods to do market research

The methods in this list cover both areas. Which ones you want to use will depend on your goals. Have a browse through and see what fits.

1. Focus groups

It’s a simple concept but one that can be hard to put into practice.

You bring together a group of individuals into a room, record their discussions, and ask them questions about various topics you are researching. For some, it’ll be new product ideas. For others, it might be views on a political candidate.

From these discussions, the organizer will try to pull out some insights or use them to judge the wider society’s view on something. The participants will generally be chosen based on certain criteria, such as demographics, interests, or occupations.

A focus group’s strength is in the natural conversation and discussion that can take place between participants (if they’re done right).

Compared to a questionnaire or survey with a rigid set of questions, a focus group can go off on tangents the organizer could not have predicted (and therefore not planned questions for). This can be good in that unexpected topics can arise; or bad if the aims of the research are to answer a very particular set of questions.

The nature of the discussion is important to recognize as a potential factor that skews the resulting data. Focus groups can encourage participants to talk about things they might not have otherwise, and others might impact the group. This can also affect unstructured one-on-one interviews.

In survey research, survey questions are given to respondents (in person, over the phone, by email, or via an online form). Questions can be close-ended or open-ended. As far as close-ended questions go, there are many different types:

• Dichotomous (two choices, such as ‘yes’ or ‘no’)
• Multiple choice
• Rating scale
• Likert scale (common version is five options between ‘strongly agree’ and ‘strongly disagree’)
• Matrix (options presented on a grid)
• Demographic (asking for information such as gender, age, or occupation)

Surveys are massively versatile because of the range of question formats. Knowing how to mix and match them to get what you need takes consideration and thought. Different questions need the right setup.

It’s also about how you ask. Good questions lead to good analysis. Writing clear, concise questions that abstain from vague expressions and don’t lead respondents down a certain path can help your results reflect the true colors of respondents.

There are a ton of different ways to conduct surveys as well, from creating your own from scratch or using tools that do lots of the heavy lifting for you.

3. Consumer research with social media listening

Social media has reached a point where it is seamlessly integrated into our lives. And because it is a digital extension of ourselves, people freely express their opinions, thoughts, and hot takes on social media.

Because people share so much content on social media and the sharing is so instant, social media is a treasure trove for market research. There is plenty of data to monitor , tap into, and dissect.

By using a social listening tool, like Consumer Research , researchers can identify topics of interest and then analyze relevant social posts. For example, they can track brand mentions and what consumers are saying about the products owned by that brand. These are real-world consumer research examples.

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Social media listening democratizes insights, and is especially useful for market research because of the vast amount of unfiltered information available. Because it’s unprompted, you can be fairly sure that what’s shared is an accurate account of what the person really cares about and thinks (as opposed to them being given a subject to dwell on in the presence of a researcher).

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4. Interviews

In interviews, the interviewer speaks directly with the respondent. This type of market research method is more personal, allowing for communication and clarification, making it good for open-ended questions. Furthermore, interviews enable the interviewer to go beyond surface-level responses and investigate deeper.

However, the drawback is that interviews can be time-intensive and costly. Those who opt for this method will need to figure out how to allocate their resources effectively. You also need to be careful with leading or poor questions that lead to useless results. Here’s a good introduction to leading questions .

5. Experiments and field trials

Field experiments are conducted in the participants’ environment. They rely on the independent variable and the dependent variable – the researcher controls the independent variable in order to test its impact on the dependent variable. The key here is to establish whether there’s causality.

For example, take Hofling’s experiment that tested obedience, conducted in a hospital setting. The point was to test if nurses followed authority figures (doctors) and if the authority figures’ rules violated standards (The dependent variable being the nurses, the independent variable being a fake doctor calling up and ordering the nurses to administer treatment.)

According to Simply Psychology , there are key strengths and limitations to this method.

The assessment reads:

• Strength: Behavior in a field experiment is more likely to reflect real life because of its natural setting, i.e., higher ecological validity than a lab experiment.
• Strength: There is less likelihood of demand characteristics affecting the results, as participants may not know they are being studied. This occurs when the study is covert.
• Limitation: There is less control over extraneous variables that might bias the results. This makes it difficult for another researcher to replicate the study in exactly the same way.

There are also massive ethical implications for these kinds of experiments and experiments in general (especially if people are unaware of their involvement). Don’t take this lightly, and be sure to read up on all the guidelines that apply to the region where you’re based.

6. Observation

Observational market research is a qualitative research method where the researcher observes their subjects in a natural or controlled environment. This method is much like being a fly on the wall, but the fly takes notes and analyzes them later. In observational market research, subjects are likely to behave naturally, which reveals their true selves. 

They are not under much pressure. However, if they’re aware of the observation, they can act differently.

This type of research applies well to retail, where the researcher can observe shoppers’ behavior by day of the week, by season, when discounts are offered, and more. However, observational research can be time-consuming, and researchers have no control over the environments they research.

7. Competitive analysis

Competitive analysis is a highly strategic and specific form of market research in which the researchers analyze their company’s competitors. It is critical to see how your brand stacks up to rivals. 

Competitive analysis starts by defining the product, service, brand, and market segment. There are different topics to compare your firm with your competitors. It could be from a marketing perspective: content produced, SEO structure, PR coverage, and social media presence and engagement. It can also be from a product perspective: types of offerings, pricing structure. SWOT analysis is key in assessing strengths, weaknesses, opportunities, and threats.

We’ve written a whole blog post on this tactic, which you can read here .

8. Public domain data

The internet is a wondrous place. Public data exists for those strapped for resources or simply seeking to support their research with more data.  With more and more data produced every year, the question about access and curation becomes increasingly prominent – that’s why researchers and librarians are keen on open data.

Plenty of different types of open data are useful for market research: government databases, polling data, “fact tanks” like Pew Research Center, and more. 

Furthermore, APIs grant developers programmatic access to applications. A lot of this data is free, which is a real bonus.

9. Buy research

Money can’t buy everything, but it can buy research. Subscriptions exist for those who want to buy relevant industry and research reports. Sites like Euromonitor, Statista, Mintel, and BCC Research host a litany of reports for purchase, oftentimes with the option of a single-user license or a subscription.

This can be a massive time saver, and you’ll have a better idea of what you’re getting from the very beginning. You’ll also get all your data in a format that makes sense, saving you effort in cleaning and organizing.

10. Analyze sales data

Sales data is like a puzzle piece that can help reveal the full picture of market research insights. Essentially, it indicates the results. Paired with other market research data, sales data helps researchers better understand actions and consequences. Understanding your customers, their buying habits, and how they change over time is important.

This research will be limited to customers, and it’s important to keep that in mind. Nevertheless, the value of this data should not be underestimated. If you’re not already tracking customer data, there’s no time like the present.

Choosing the right market research method for your strategy

Not all methods will be right for your situation or your business. Once you’ve looked through the list and seen some that take your fancy, spend more time researching each option.You’ll want to consider what you want to achieve, what data you’ll need, the pros and cons of each method, the costs of conducting the research, and the cost of analyzing the results.

Get it right, and it’ll be worth all the effort.

When it comes to understanding consumers, businesses choose Brandwatch ahead of any other tool.

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Home » Marketing Management » Marketing Research – Definition, Importance and Process

Marketing Research – Definition, Importance and Process

Definition of marketing research.

Marketing research is a key to the evolution of successful marketing strategies and programmes. It is an important tool to study buyer behavior, changes in consumer lifestyles and consumption patterns, brand loyalty and forecast market changes. Research is also used to study competition and analyze the competitor product’s positioning and how to gain competitive advantage . Recently, marketing research is being used to help create and enhance brand equity .

According to Philip Kotler , Marketing research is systematic problem analysis, model building and fact finding for the purposes of important decision making and control in the marketing of goods and services.

The important decision making related to market strategy and other tasks related to marketing depends on findings or marketing research. Marketing research process reduces the chances of errors, miss conceptions and uncertainty from decision making process . It is therefore very important to conduct marketing research to identify any changes in market environment, and understand customers and market. It means that this is the process of strategically importance.

Importance of Marketing Research

Marketing research is a systematic collection and analysis of data about market and the important quality of market. Therefore, Market research is an extremely part of any business that wants to offer products or service that are focused and well targeted. It also affects the profit of a business and makes the best return on marketing investment. For example, a product’s price elasticity research can help you to find out the true or correct information that impact of an increased price on the sales and the profits of a product. This special importance give on profitability also helps the company’s focus to shift from widen the sales to increase the profits of a company and helps the company to survive longer.

Research is about finding and gathers the information to learn about something that is not fully known. Marketing research is allows company to discover the facts whether customers or consumers is satisfy with it. And it also provides crucial information that may be affecting the business. In addition, Market research will also minimize the risk as it can help to shape a new product or service, and identifying what is needed and ensure that the development of a product is high level focused towards needs and wants.

Furthermore, market research also helps to identify opportunities. For example, if there is a plan to operate a new service and would like to have enough information or experience of the people’s attitudes then the market research can give not only evaluating new idea but also identify the areas where a marketing needs to develop and improve. To survive in competition of markets is not easily especially markets has been throughout the world. Marketing research helps to find out the true or correct information and understand the competitor such as their identity, the marketing network, what is customer focus on and the range of level operations. Other than that, with market research can also helps to understand the consumer needs that have not been met. Target markets is also one of the important points that marketers should take notes with, from marketing research it helps to decide the target markets and provide customer information in terms of their location, age, gender and buying behavior.

Besides that, marketing research helps to create benchmarks and prepare the plans carefully and take necessary measures and give opinion of the amount, value or quality for its performance. Moreover, marketing research is system that has been give devise more effective strategies. The most useful of marketing research is help to identify the potential problems and give ample time to discover the facts and to calculate an effective solution.

Marketing Research Process

There are seven steps in marketing research process: define the research problem, determine the research design, choose the method for collecting primary data, design the sample, collect the data, analyze and interpret the data, prepare the research report. Though those steps, marketers will make conversant decisions or reduce the risk of their decisions.

1. PROBLEM DEFINITION

This is the starting point in the marketing research exercise. Invariably, in any enterprise, there are several marketing issues that may require examination, and invariably every decision maker perceives his information need as being the most important. In problem definition it is important to be specific, avoiding ambiguities and generalities. Care should also be taken, not to define problems in too narrow a field as that may distract the researcher’s perspective. This may even affect creativity in the research.

2. RESEARCH OBJECTIVES

Once the problem is defined, the next logical step is to state what the researcher wants to achieve. This statement is called objectives. To be meaningful and help focus the researcher’s attention, these objectives should be specific, attainable & measurable. The purpose of these objectives is to act as a guide to the researcher and help him in maintaining a focus all through the research.

3. RESEARCH DESIGN

The third stage in the marketing research process is deciding on the research design. There are three types of research designs, namely:

• Exploratory: This kind of research is conducted when the researcher does not know how & why a certain phenomenon occurs, for example, how does the consumer evaluate the quality of a bank or a hotel or an airline? Since the prime goal of an exploratory research is to know the unknown, this research is unstructured. Focus groups, interviewing key customer groups, experts and even search for printed or published information are some common techniques.
• Descriptive: This research is carried out to describe a phenomenon or market characteristics. For example, a study to understand buyer behavior & describe characteristics of the target market is a descriptive research. Continuing the above example of service quality, a research done on how consumers evaluate the quality of competing service institutions can be considered as an example of descriptive research.
• Causative:  This kind of research is done to establish a cause and effect relationship, for example the influence of income & lifestyle on purchase decision. Here the researcher may like to see the effect of rising income & changing lifestyle on consumption of select products.

4. SOURCES OF DATA

Once the research design has been decided upon, the next stage is that of selecting the sources of data. Essentially there are two sources of data or information- secondary & primary

• Secondary data: This refers to the information that has been collected earlier by someone else. Often this includes printed or published reports, news items, industry or trade statistics etc. this also includes internal documents like invoices, sales reports, payment history of customers etc. these are important to the researcher as they provide an insight to the problem. Often the preliminary investigation is restricted to secondary data.
• Primary data: To overcome the limitations of incompatibility, obsolescence and bias, the researcher turns to the primary data. This is also resorted to when the secondary data is incomplete. Primary sources refer to data collected directly from the market place- customers, traders & suppliers often are the major sources. They are often reliable data sources and help in overcoming limitations of secondary data. The problem in primary data is its cost, both In terms of money & time, and often a researcher bias also creeps in.

5. DATA COLLECTION

The researcher is now ready to take the plunge. But still he or she needs to be clear about the following.

Procedure for data collection.

Data can be collected through any or combination of the following techniques.

• Observation: This technique involves observing how a customer behaves in the shopping area, how he or she dresses up & what does the customer say when he or she sees the product.
• Experimentation: This is a technique that involves experimenting new product ideas, advertising copies & campaigns, sales promotion ideas & even pricing & distribution strategies with the target customer group. These experiments can be conducted in an uncontrolled environment or in a controlled & simulated market environment.

Tools for data collection

The researcher has to decide on the appropriate tool for data collection. These tools are:-

• Questionnaire — used for the survey method
• Interview schedule — used mainly for exploratory research
• Association test — primarily used in qualitative research, also called as TAT (Thematic Apperception Test)

6. DATA ANALYSIS

The next stage is that of data analysis .It is important to understand raw data has no usage in marketing research .hence appropriate analytical tools must be used. The most elementary is the arithmetic analysis using percentile and ratios. Statistical analysis like mean, median, mode, percentages, standard deviation and coefficient of correlations should be used wherever applicable

7. REPORT & PRESENTATION

The last stage is that of writing out a report and making a presentation to the Decision —maker. It is important that the report has summary, called the executive summary, giving a bird’s-eye view of the research. This is because most senior managers have little time for going through the entire report in depth. The executive summary can direct the reader’s attention to specific issues by turning to the relevant sections in the report and should not exceed thousand words.

The report should be structured and pages chronologically numbered generally, the structure of a good repot is somewhat like the following:

• Introduction to the problem
• Marketing research finding or survey findings
• Interpretation of research finding
• Policy implications

Related posts:

• Importance of Marketing Research in Marketing Process
• Market Research – Definition, Classification and Process
• International Marketing Research – Definition, Categories and Process
• Marketing Strategy: Definition and Process
• Methods of Marketing Research
• Are Market Research and Marketing Research the Same?
• Relationship Between Marketing Research and Marketing Strategy
• The Importance of Advertising in Marketing Communication
• Introduction to Marketing Research
• Motivation – Definition, Process, Types, Features and Importance

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Marketing research: concept, objective, advantages and limitations.

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Marketing Research: Concept, Objective, Advantages and Limitations!

The marketing concept states that the character of the marketing orientated organisation, whether product or service based, profit or non-profit based, is the identification and true delivery of consumers’ needs and wants, more effectively and efficiently than the competition.

Hence, in a broad sense, marketing management needs to understand the minds of their target markets, their attitudes, feelings, beliefs and value systems. They require a formalised, managerial approach to this most important job. And this entire job is the basic role and purpose of formal marketing research. Marketing research is the systematic, objective and exhaustive search for study of the facts relating to any problem in the field of marketing. It is systematic problem analysis, model building and fact-finding for the purpose of decision-making and control in the marketing of goods and services.

According to American Marketing Association “marketing research is the systematic gathering, recording and analysing of data about problems relating to the marketing of goods and services.” According to Green and Tull, “marketing research is the systematic and objective search for and analysis of information relevant to the identification and solution of any problem in the field of marketing”. Professor Philip Kotler defines marketing research as “Systematic problem analysis, model-building and fact-finding for the purpose of improved decision making and control in the marketing of goods and services.”

The features of marketing research are:

1. Search for data:

It is a search for data which are relevant to marketing problems – problems in different functional areas of marketing consumer behaviour, product, sales, distribution channel, pricing, ad and physical distribution.

2. It is systematic:

It has to be carried out in a systematic manner rather than haphazard way. The whole process should be planned with a clear objective.

3. It should be objective:

Objectivity is more important in any result. It means that the research is neither carried on to establish an opinion nor is intentionally slanted towards pre-determined results.

4. It is a process:

It involves various steps for gathering, recording and analysing of data.

Objectives of Marketing Research:

Marketing research may be conducted for different purposes. The main objectives or purposes of marketing research are:

i) To estimate the potential market for a new product to be introduced in the market.

ii) To know the reactions of the consumers to a product already existing in the market.

iii) To find out the general market conditions and tendencies.

iv) To know the reasons for failure of a product already in the market.

v) To find out the better methods of distributing the products to consumers.

vi) To know the types of consumers buying a product and their buying motives to know their opinions about the product and to get their suggestion improvement of a product.

vii) To assess the strength and weakness of the competitors.

viii) To know the dimensions of the marketing problems.

ix) To ascertain the distribution methods suited to the product and the

x) To estimate the market share of a firm.

xi) To assess the probable sales volume of a firm.

xii) To assess the reaction of the consumers to the packaging of the firm and to make packaging as attractive as possible.

Limitations of Marketing Research:

1. It is not a Panacea:

Marketing Research is not the ultimate solution to all marketing problems. Rather it offers accurate information, which can arrive at suitable decisions to solve problem.

2. Not an exact science:

It deals with human behaviour and as such cannot be examined in a controlled environment. There are various and uncontrollable factors which influence marketing forces. This gives scope for wrong conclusions. Hence this leads to marketing research as not being an exact science.

3. Limitation of time:

Its process is lengthy and needs long time to complete it. During the period between starting the research and implementation of decisions, the situation and assumptions may have changed drastically which reduces the utility of research report. Decisions based on such report prove to be obsolete and result in false conclusions.

4. Erroneous findings:

The complicated problems may not be comprehensively studied and their impact properly analysed by the researcher on account of insufficient fund, time and technique. This leads to erroneous findings, which disappoint the management.

5. Not an exact tool of forecasting:

It cannot be used as a foolproof tool of forecasting because there are number of intervening factors between the findings of the research and marketing complex. The forces act and react and interact to give a complex state, which is difficult to be studied.

6. In experienced research staff:

It needs great expertise and well-trained and experienced researcher, interviewer and investigator.

7. Narrow Conception:

Marketing research is a fact-finding exercise. It is not problem oriented. It is of low and questionable validity.

8. Involves high cost:

It is considered as a luxury for the management as it involves high cost.

9. Limitations of tools and techniques:

The validity of marketing research is also limited by the limitation of tools and techniques involved.

10. It is passive:

Its use and effectiveness largely depends upon the ability of executives to get the most value of it.

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Marketing Research

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6.3 Steps in a Successful Marketing Research Plan

Learning outcomes.

By the end of this section, you will be able to:

• 1 Identify and describe the steps in a marketing research plan.
• 2 Discuss the different types of data research.
• 3 Explain how data is analyzed.
• 4 Discuss the importance of effective research reports.

Define the Problem

There are seven steps to a successful marketing research project (see Figure 6.3 ). Each step will be explained as we investigate how a marketing research project is conducted.

The first step, defining the problem, is often a realization that more information is needed in order to make a data-driven decision. Problem definition is the realization that there is an issue that needs to be addressed. An entrepreneur may be interested in opening a small business but must first define the problem that is to be investigated. A marketing research problem in this example is to discover the needs of the community and also to identify a potentially successful business venture.

Many times, researchers define a research question or objectives in this first step. Objectives of this research study could include: identify a new business that would be successful in the community in question, determine the size and composition of a target market for the business venture, and collect any relevant primary and secondary data that would support such a venture. At this point, the definition of the problem may be “Why are cat owners not buying our new cat toy subscription service?”

Additionally, during this first step we would want to investigate our target population for research. This is similar to a target market, as it is the group that comprises the population of interest for the study. In order to have a successful research outcome, the researcher should start with an understanding of the problem in the current situational environment.

Develop the Research Plan

Step two is to develop the research plan. What type of research is necessary to meet the established objectives of the first step? How will this data be collected? Additionally, what is the time frame of the research and budget to consider? If you must have information in the next week, a different plan would be implemented than in a situation where several months were allowed. These are issues that a researcher should address in order to meet the needs identified.

Research is often classified as coming from one of two types of data: primary and secondary. Primary data is unique information that is collected by the specific researcher with the current project in mind. This type of research doesn’t currently exist until it is pulled together for the project. Examples of primary data collection include survey, observation, experiment, or focus group data that is gathered for the current project.

Secondary data is any research that was completed for another purpose but can be used to help inform the research process. Secondary data comes in many forms and includes census data, journal articles, previously collected survey or focus group data of related topics, and compiled company data. Secondary data may be internal, such as the company’s sales records for a previous quarter, or external, such as an industry report of all related product sales. Syndicated data , a type of external secondary data, is available through subscription services and is utilized by many marketers. As you can see in Table 6.1 , primary and secondary data features are often opposite—the positive aspects of primary data are the negative side of secondary data.

There are four research types that can be used: exploratory, descriptive, experimental, and ethnographic research designs (see Figure 6.4 ). Each type has specific formats of data that can be collected. Qualitative research can be shared through words, descriptions, and open-ended comments. Qualitative data gives context but cannot be reduced to a statistic. Qualitative data examples are categorical and include case studies, diary accounts, interviews, focus groups, and open-ended surveys. By comparison, quantitative data is data that can be reduced to number of responses. The number of responses to each answer on a multiple-choice question is quantitative data. Quantitative data is numerical and includes things like age, income, group size, and height.

Exploratory research is usually used when additional general information in desired about a topic. When in the initial steps of a new project, understanding the landscape is essential, so exploratory research helps the researcher to learn more about the general nature of the industry. Exploratory research can be collected through focus groups, interviews, and review of secondary data. When examining an exploratory research design, the best use is when your company hopes to collect data that is generally qualitative in nature. 7

For instance, if a company is considering a new service for registered users but is not quite sure how well the new service will be received or wants to gain clarity of exactly how customers may use a future service, the company can host a focus group. Focus groups and interviews will be examined later in the chapter. The insights collected during the focus group can assist the company when designing the service, help to inform promotional campaign options, and verify that the service is going to be a viable option for the company.

Descriptive research design takes a bigger step into collection of data through primary research complemented by secondary data. Descriptive research helps explain the market situation and define an “opinion, attitude, or behavior” of a group of consumers, employees, or other interested groups. 8 The most common method of deploying a descriptive research design is through the use of a survey. Several types of surveys will be defined later in this chapter. Descriptive data is quantitative in nature, meaning the data can be distilled into a statistic, such as in a table or chart.

Again, descriptive data is helpful in explaining the current situation. In the opening example of LEGO , the company wanted to describe the situation regarding children’s use of its product. In order to gather a large group of opinions, a survey was created. The data that was collected through this survey allowed the company to measure the existing perceptions of parents so that alterations could be made to future plans for the company.

Experimental research , also known as causal research , helps to define a cause-and-effect relationship between two or more factors. This type of research goes beyond a correlation to determine which feature caused the reaction. Researchers generally use some type of experimental design to determine a causal relationship. An example is A/B testing, a situation where one group of research participants, group A, is exposed to one treatment and then compared to the group B participants, who experience a different situation. An example might be showing two different television commercials to a panel of consumers and then measuring the difference in perception of the product. Another example would be to have two separate packaging options available in different markets. This research would answer the question “Does one design sell better than the other?” Comparing that to the sales in each market would be part of a causal research study. 9

The final method of collecting data is through an ethnographic design. Ethnographic research is conducted in the field by watching people interact in their natural environment. For marketing research, ethnographic designs help to identify how a product is used, what actions are included in a selection, or how the consumer interacts with the product. 10

Examples of ethnographic research would be to observe how a consumer uses a particular product, such as baking soda. Although many people buy baking soda, its uses are vast. So are they using it as a refrigerator deodorizer, a toothpaste, to polish a belt buckle, or to use in baking a cake?

Select the Data Collection Method

Data collection is the systematic gathering of information that addresses the identified problem. What is the best method to do that? Picking the right method of collecting data requires that the researcher understand the target population and the design picked in the previous step. There is no perfect method; each method has both advantages and disadvantages, so it’s essential that the researcher understand the target population of the research and the research objectives in order to pick the best option.

Sometimes the data desired is best collected by watching the actions of consumers. For instance, how many cars pass a specific billboard in a day? What website led a potential customer to the company’s website? When are consumers most likely to use the snack vending machines at work? What time of day has the highest traffic on a social media post? What is the most streamed television program this week? Observational research is the collecting of data based on actions taken by those observed. Many data observations do not require the researched individuals to participate in the data collection effort to be highly valuable. Some observation requires an individual to watch and record the activities of the target population through personal observations .

Unobtrusive observation happens when those being observed aren’t aware that they are being watched. An example of an unobtrusive observation would be to watch how shoppers interact with a new stuffed animal display by using a one-way mirror. Marketers can identify which products were handled more often while also determining which were ignored.

Other methods can use technology to collect the data instead. Instances of mechanical observation include the use of vehicle recorders, which count the number of vehicles that pass a specific location. Computers can also assess the number of shoppers who enter a store, the most popular entry point for train station commuters, or the peak time for cars to park in a parking garage.

When you want to get a more in-depth response from research participants, one method is to complete a one-on-one interview . One-on-one interviews allow the researcher to ask specific questions that match the respondent’s unique perspective as well as follow-up questions that piggyback on responses already completed. An interview allows the researcher to have a deeper understanding of the needs of the respondent, which is another strength of this type of data collection. The downside of personal interviews it that a discussion can be very time-consuming and results in only one respondent’s answers. Therefore, in order to get a large sample of respondents, the interview method may not be the most efficient method.

Taking the benefits of an interview and applying them to a small group of people is the design of a focus group . A focus group is a small number of people, usually 8 to 12, who meet the sample requirements. These individuals together are asked a series of questions where they are encouraged to build upon each other’s responses, either by agreeing or disagreeing with the other group members. Focus groups are similar to interviews in that they allow the researcher, through a moderator, to get more detailed information from a small group of potential customers (see Figure 6.5 ).

Link to Learning

Focus groups.

Focus groups are a common method for gathering insights into consumer thinking and habits. Companies will use this information to develop or shift their initiatives. The best way to understand a focus group is to watch a few examples or explanations. TED-Ed has this video that explains how focus groups work.

You might be asking when it is best to use a focus group or a survey. Learn the differences, the pros and cons of each, and the specific types of questions you ask in both situations in this article .

Preparing for a focus group is critical to success. It requires knowing the material and questions while also managing the group of people. Watch this video to learn more about how to prepare for a focus group and the types of things to be aware of.

One of the benefits of a focus group over individual interviews is that synergy can be generated when a participant builds on another’s ideas. Additionally, for the same amount of time, a researcher can hear from multiple respondents instead of just one. 11 Of course, as with every method of data collection, there are downsides to a focus group as well. Focus groups have the potential to be overwhelmed by one or two aggressive personalities, and the format can discourage more reserved individuals from speaking up. Finally, like interviews, the responses in a focus group are qualitative in nature and are difficult to distill into an easy statistic or two.

Combining a variety of questions on one instrument is called a survey or questionnaire . Collecting primary data is commonly done through surveys due to their versatility. A survey allows the researcher to ask the same set of questions of a large group of respondents. Response rates of surveys are calculated by dividing the number of surveys completed by the total number attempted. Surveys are flexible and can collect a variety of quantitative and qualitative data. Questions can include simplified yes or no questions, select all that apply, questions that are on a scale, or a variety of open-ended types of questions. There are four types of surveys (see Table 6.2 ) we will cover, each with strengths and weaknesses defined.

Let’s start off with mailed surveys —surveys that are sent to potential respondents through a mail service. Mailed surveys used to be more commonly used due to the ability to reach every household. In some instances, a mailed survey is still the best way to collect data. For example, every 10 years the United States conducts a census of its population (see Figure 6.6 ). The first step in that data collection is to send every household a survey through the US Postal Service (USPS). The benefit is that respondents can complete and return the survey at their convenience. The downside of mailed surveys are expense and timeliness of responses. A mailed survey requires postage, both when it is sent to the recipient and when it is returned. That, along with the cost of printing, paper, and both sending and return envelopes, adds up quickly. Additionally, physically mailing surveys takes time. One method of reducing cost is to send with bulk-rate postage, but that slows down the delivery of the survey. Also, because of the convenience to the respondent, completed surveys may be returned several weeks after being sent. Finally, some mailed survey data must be manually entered into the analysis software, which can cause delays or issues due to entry errors.

Phone surveys are completed during a phone conversation with the respondent. Although the traditional phone survey requires a data collector to talk with the participant, current technology allows for computer-assisted voice surveys or surveys to be completed by asking the respondent to push a specific button for each potential answer. Phone surveys are time intensive but allow the respondent to ask questions and the surveyor to request additional information or clarification on a question if warranted. Phone surveys require the respondent to complete the survey simultaneously with the collector, which is a limitation as there are restrictions for when phone calls are allowed. According to Telephone Consumer Protection Act , approved by Congress in 1991, no calls can be made prior to 8:00 a.m. or after 9:00 p.m. in the recipient’s time zone. 12 Many restrictions are outlined in this original legislation and have been added to since due to ever-changing technology.

In-person surveys are when the respondent and data collector are physically in the same location. In-person surveys allow the respondent to share specific information, ask questions of the surveyor, and follow up on previous answers. Surveys collected through this method can take place in a variety of ways: through door-to-door collection, in a public location, or at a person’s workplace. Although in-person surveys are time intensive and require more labor to collect data than some other methods, in some cases it’s the best way to collect the required data. In-person surveys conducted through a door-to-door method is the follow-up used for the census if respondents do not complete the mailed survey. One of the downsides of in-person surveys is the reluctance of potential respondents to stop their current activity and answer questions. Furthermore, people may not feel comfortable sharing private or personal information during a face-to-face conversation.

Electronic surveys are sent or collected through digital means and is an opportunity that can be added to any of the above methods as well as some new delivery options. Surveys can be sent through email, and respondents can either reply to the email or open a hyperlink to an online survey (see Figure 6.7 ). Additionally, a letter can be mailed that asks members of the survey sample to log in to a website rather than to return a mailed response. Many marketers now use links, QR codes, or electronic devices to easily connect to a survey. Digitally collected data has the benefit of being less time intensive and is often a more economical way to gather and input responses than more manual methods. A survey that could take months to collect through the mail can be completed within a week through digital means.

Design the Sample

Although you might want to include every possible person who matches your target market in your research, it’s often not a feasible option, nor is it of value. If you did decide to include everyone, you would be completing a census of the population. Getting everyone to participate would be time-consuming and highly expensive, so instead marketers use a sample , whereby a portion of the whole is included in the research. It’s similar to the samples you might receive at the grocery store or ice cream shop; it isn’t a full serving, but it does give you a good taste of what the whole would be like.

So how do you know who should be included in the sample? Researchers identify parameters for their studies, called sample frames . A sample frame for one study may be college students who live on campus; for another study, it may be retired people in Dallas, Texas, or small-business owners who have fewer than 10 employees. The individual entities within the sampling frame would be considered a sampling unit . A sampling unit is each individual respondent that would be considered as matching the sample frame established by the research. If a researcher wants businesses to participate in a study, then businesses would be the sampling unit in that case.

The number of sampling units included in the research is the sample size . Many calculations can be conducted to indicate what the correct size of the sample should be. Issues to consider are the size of the population, the confidence level that the data represents the entire population, the ease of accessing the units in the frame, and the budget allocated for the research.

There are two main categories of samples: probability and nonprobability (see Figure 6.8 ). Probability samples are those in which every member of the sample has an identified likelihood of being selected. Several probability sample methods can be utilized. One probability sampling technique is called a simple random sample , where not only does every person have an identified likelihood of being selected to be in the sample, but every person also has an equal chance of exclusion. An example of a simple random sample would be to put the names of all members of a group into a hat and simply draw out a specific number to be included. You could say a raffle would be a good example of a simple random sample.

Another probability sample type is a stratified random sample , where the population is divided into groups by category and then a random sample of each category is selected to participate. For instance, if you were conducting a study of college students from your school and wanted to make sure you had all grade levels included, you might take the names of all students and split them into different groups by grade level—freshman, sophomore, junior, and senior. Then, from those categories, you would draw names out of each of the pools, or strata.

A nonprobability sample is a situation in which each potential member of the sample has an unknown likelihood of being selected in the sample. Research findings that are from a nonprobability sample cannot be applied beyond the sample. Several examples of nonprobability sampling are available to researchers and include two that we will look at more closely: convenience sampling and judgment sampling.

The first nonprobability sampling technique is a convenience sample . Just like it sounds, a convenience sample is when the researcher finds a group through a nonscientific method by picking potential research participants in a convenient manner. An example might be to ask other students in a class you are taking to complete a survey that you are doing for a class assignment or passing out surveys at a basketball game or theater performance.

A judgment sample is a type of nonprobability sample that allows the researcher to determine if they believe the individual meets the criteria set for the sample frame to complete the research. For instance, you may be interested in researching mothers, so you sit outside a toy store and ask an individual who is carrying a baby to participate.

Collect the Data

Now that all the plans have been established, the instrument has been created, and the group of participants has been identified, it is time to start collecting data. As explained earlier in this chapter, data collection is the process of gathering information from a variety of sources that will satisfy the research objectives defined in step one. Data collection can be as simple as sending out an email with a survey link enclosed or as complex as an experiment with hundreds of consumers. The method of collection directly influences the length of this process. Conducting personal interviews or completing an experiment, as previously mentioned, can add weeks or months to the research process, whereas sending out an electronic survey may allow a researcher to collect the necessary data in a few days. 13

Analyze and Interpret the Data

Once the data has been collected, the process of analyzing it may begin. Data analysis is the distillation of the information into a more understandable and actionable format. The analysis itself can take many forms, from the use of basic statistics to a more comprehensive data visualization process. First, let’s discuss some basic statistics that can be used to represent data.

The first is the mean of quantitative data. A mean is often defined as the arithmetic average of values. The formula is:

A common use of the mean calculation is with exam scores. Say, for example, you have earned the following scores on your marketing exams: 72, 85, 68, and 77. To find the mean, you would add up the four scores for a total of 302. Then, in order to generate a mean, that number needs to be divided by the number of exam scores included, which is 4. The mean would be 302 divided by 4, for a mean test score of 75.5. Understanding the mean can help to determine, with one number, the weight of a particular value.

Another commonly used statistic is median. The median is often referred to as the middle number. To generate a median, all the numeric answers are placed in order, and the middle number is the median. Median is a common statistic when identifying the income level of a specific geographic region. 14 For instance, the median household income for Albuquerque, New Mexico, between 2015 and 2019 was $52,911. 15 In this case, there are just as many people with an income above the amount as there are below.

Mode is another statistic that is used to represent data of all types, as it can be used with quantitative or qualitative data and represents the most frequent answer. Eye color, hair color, and vehicle color can all be presented with a mode statistic. Additionally, some researchers expand on the concept of mode and present the frequency of all responses, not just identifying the most common response. Data such as this can easily be presented in a frequency graph, 16 such as the one in Figure 6.9 .

Additionally, researchers use other analyses to represent the data rather than to present the entirety of each response. For example, maybe the relationship between two values is important to understand. In this case, the researcher may share the data as a cross tabulation (see Figure 6.10 ). Below is the same data as above regarding social media use cross tabulated with gender—as you can see, the data is more descriptive when you can distinguish between the gender identifiers and how much time is spent per day on social media.

Not all data can be presented in a graphical format due to the nature of the information. Sometimes with qualitative methods of data collection, the responses cannot be distilled into a simple statistic or graph. In that case, the use of quotations, otherwise known as verbatims , can be used. These are direct statements presented by the respondents. Often you will see a verbatim statement when reading a movie or book review. The critic’s statements are used in part or in whole to represent their feelings about the newly released item.

Infographics

As they say, a picture is worth a thousand words. For this reason, research results are often shown in a graphical format in which data can be taken in quickly, called an infographic .

Check out this infographic on what components make for a good infographic. As you can see, a good infographic needs four components: data, design, a story, and the ability to share it with others. Without all four pieces, it is not as valuable a resource as it could be. The ultimate infographic is represented as the intersection of all four.

Infographics are particularly advantageous online. Refer to this infographic on why they are beneficial to use online .

Prepare the Research Report

The marketing research process concludes by sharing the generated data and makes recommendations for future actions. What starts as simple data must be interpreted into an analysis. All information gathered should be conveyed in order to make decisions for future marketing actions. One item that is often part of the final step is to discuss areas that may have been missed with the current project or any area of further study identified while completing it. Without the final step of the marketing research project, the first six steps are without value. It is only after the information is shared, through a formal presentation or report, that those recommendations can be implemented and improvements made. The first six steps are used to generate information, while the last is to initiate action. During this last step is also when an evaluation of the process is conducted. If this research were to be completed again, how would we do it differently? Did the right questions get answered with the survey questions posed to the respondents? Follow-up on some of these key questions can lead to additional research, a different study, or further analysis of data collected.

Methods of Quantifying Marketing Research

One of the ways of sharing information gained through marketing research is to quantify the research . Quantifying the research means to take a variety of data and compile into a quantity that is more easily understood. This is a simple process if you want to know how many people attended a basketball game, but if you want to quantify the number of students who made a positive comment on a questionnaire, it can be a little more complicated. Researchers have a variety of methods to collect and then share these different scores. Below are some of the most common types used in business.

Is a customer aware of a product, brand, or company? What is meant by awareness? Awareness in the context of marketing research is when a consumer is familiar with the product, brand, or company. It does not assume that the consumer has tried the product or has purchased it. Consumers are just aware. That is a measure that many businesses find valuable. There are several ways to measure awareness. For instance, the first type of awareness is unaided awareness . This type of awareness is when no prompts for a product, brand, or company are given. If you were collecting information on fast-food restaurants, you might ask a respondent to list all the fast-food restaurants that serve a chicken sandwich. Aided awareness would be providing a list of products, brands, or companies and the respondent selects from the list. For instance, if you give a respondent a list of fast-food restaurants and ask them to mark all the locations with a chicken sandwich, you are collecting data through an aided method. Collecting these answers helps a company determine how the business location compares to those of its competitors. 17

Customer Satisfaction (CSAT)

Have you ever been asked to complete a survey at the end of a purchase? Many businesses complete research on buying, returning, or other customer service processes. A customer satisfaction score , also known as CSAT, is a measure of how satisfied customers are with the product, brand, or service. A CSAT score is usually on a scale of 0 to 100 percent. 18 But what constitutes a “good” CSAT score? Although what is identified as good can vary by industry, normally anything in the range from 75 to 85 would be considered good. Of course, a number higher than 85 would be considered exceptional. 19

Customer Acquisition Cost (CAC) and Customer Effort Score (CES)

Other metrics often used are a customer acquisition cost (CAC) and customer effort score (CES). How much does it cost a company to gain customers? That’s the purpose of calculating the customer acquisition cost. To calculate the customer acquisition cost , a company would need to total all expenses that were accrued to gain new customers. This would include any advertising, public relations, social media postings, etc. When a total cost is determined, it is divided by the number of new customers gained through this campaign.

The final score to discuss is the customer effort score , also known as a CES. The CES is a “survey used to measure the ease of service experience with an organization.” 20 Companies that are easy to work with have a better CES than a company that is notorious for being difficult. An example would be to ask a consumer about the ease of making a purchase online by incorporating a one-question survey after a purchase is confirmed. If a number of responses come back negative or slightly negative, the company will realize that it needs to investigate and develop a more user-friendly process.

Knowledge Check

It’s time to check your knowledge on the concepts presented in this section. Refer to the Answer Key at the end of the book for feedback.

• Defining the problem
• Developing the research plan
• Selecting a data collection method
• Designing the sample
• you are able to send it to all households in an area
• it is inexpensive
• responses are automatically loaded into the software
• the data comes in quickly
• Primary data
• Secondary data
• Secondary and primary data
• Professional data
• It shows how respondents answered two variables in relation to each other and can help determine patterns by different groups of respondents.
• By presenting the data in the form of a picture, the information is easier for the reader to understand.
• It is an easy way to see how often one answer is selected by the respondents.
• This analysis can used to present interview or focus group data.

This book may not be used in the training of large language models or otherwise be ingested into large language models or generative AI offerings without OpenStax's permission.

Want to cite, share, or modify this book? This book uses the Creative Commons Attribution License and you must attribute OpenStax.

Access for free at https://openstax.org/books/principles-marketing/pages/1-unit-introduction

• Authors: Dr. Maria Gomez Albrecht, Dr. Mark Green, Linda Hoffman
• Publisher/website: OpenStax
• Book title: Principles of Marketing
• Publication date: Jan 25, 2023
• Location: Houston, Texas
• Book URL: https://openstax.org/books/principles-marketing/pages/1-unit-introduction
• Section URL: https://openstax.org/books/principles-marketing/pages/6-3-steps-in-a-successful-marketing-research-plan

© Jan 9, 2024 OpenStax. Textbook content produced by OpenStax is licensed under a Creative Commons Attribution License . The OpenStax name, OpenStax logo, OpenStax book covers, OpenStax CNX name, and OpenStax CNX logo are not subject to the Creative Commons license and may not be reproduced without the prior and express written consent of Rice University.

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Market research vs. marketing research — What’s the difference?

Have you ever wondered whether there's a difference between market research and marketing research? Although these two terms are often used interchangeably, they have some qualities that differentiate them.

The four Ps of marketing

To understand the difference between market research and marketing research, you first have to understand the ‘ marketing mix ’, otherwise known as the Four Ps of Marketing :

• Product (goods or service)
• Price (how much the customer pays)
• Place (where the product is marketed)
• Promotion (advertising and PR)

These are the four essential key factors involved in marketing goods or services. They all need to function optimally together for those goods or services to be a success in the marketplace.

What is market research?

Market research studies a target market. It collects data about that marketplace and the consumers within it.

It deals with only one P of Marketing – Place . Place in this context means a specific market or segment .

Market research gathers, analyzes and interprets data about:

• that specific market
• a product, service or developing concept to be offered for sale in that market
• customers (present, past and future) for that product, service or concept

Market research delves into a variety of the target market’s areas: needs, wants, spending habits and characteristics. It can also make comparisons with the competition and industry standards. Market research is the first port of call for a business to assess how viable new goods or service are for their target market. In the process, it can often reveal new target markets and customer wants and needs.

A typical market research process is as follows:

• An issue gets identified
• Decide who will conduct the research (in-house or an external agency)
• Choose appropriate market research techniques
• Gather data
• Organize, interpret and analyze data
• Report back findings

What is marketing research?

Marketing research is much broader. It deals with all four Ps of Marketing – including Place. It covers diverse areas, some of which market research wouldn’t touch, and others where it would only touch lightly:

• New product research
• Product development
• Advertising research
• Customer research
• Distribution methods
• Public relations

In essence, marketing research covers the conception, development, placement and evolution of a product or service, its growing audience and its branding – all the way from brand awareness to, we hope, brand equity .

Market research, because it emphasizes Place, is an integral part of marketing research. We could sum it up like this: market research is a subset of marketing research.

A typical marketing research process is as follows:

• Identify an issue, discuss alternatives and set out research objectives
• Develop a research program
• Gather information
• Organize and analyze information and data
• Present findings
• Make a decision based on the research

Free ebook: Guide to Modern Agile Research

The differences between marketing research and market research

Although market research informs marketing research, the table below compares the considerable differences between them.

The similarities between marketing research and market research

• crucial for a business’s success.
• research projects, and as such produce valuable data.
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What is Marketing Research?

Everything you need to know what is marketing research. Marketing research is an intelligent versatile tool of various practical applications. It is a pertinent search and study of the marketing of goods and services.

Any business executive has constantly to watch the situation, the problems and their solutions. He has to draw up policies and plans according to objectives and utilize the organizational set-up for effective control.

Marketing research is relatively new field of exertion and a new social science. Research in medicine, physics, and chemistry has been carried on for many centuries, but in the application of research to marketing problems on any extensive scale is largely a development of the last fifty years. In comparison to the physical or natural sciences, marketing research should be considered new as still its frontier days.

Marketing research is basically spotting the needs of customers and meeting them in the best possible manner. Marketing research plays a key role in this process. Starting with market measurement, marketing research helps the firm in every component of the total marketing task.

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Learn about:- 1. History and Evolution of Marketing Research 2. Meaning of Marketing Research 3. Definitions 4. Features 5. Objectives 6. Importance 7. Dimensions 8. Areas 9. Process 10. Applications 11. Advantages 12. Disadvantages.

What is Marketing Research? – Meaning, Definitions, Features, Objectives, Importance, Dimensions, Process and Advantages

• Brief History and Evolution of Marketing Research
• Meaning of Marketing Research
• Definitions of Marketing Research
• Features of Marketing Research
• Objectives of Marketing Research
• Importance of Marketing Research
• Types of Marketing Research
• Areas of Marketing Research
• Process of Marketing Research
• Applications of Marketing Research
• Advantages of Marketing Research
• Disadvantages of Marketing Research

What is Marketing Research – Brief History and Evolution

Successful marketers will always try to seek information and identify newer ways to create, communicate and deliver value to their target markets. Good information can be obtained through marketing research. A brief history on marketing research will throw light on how marketing research has evolved overtime.

The beginning of marketing research as an organised business activity began between 1910 and 1920. It is said that in 1911 when Charles Collidge Parlin was appointed as the Manager of the Commercial Research Division of the Advertising Department of the Curtis Publishing Company, began the establishment of organised marketing research.

Till then, informal marketing research had been the practice. Way back in 1380, Johann Fugger took off to Augsburg from native Swabian village of Graben so as to gather information on the international textile industry. In this international role, he exchanged detailed letters on trade conditions and finances in the areas where their branches were located.

In 1720 period there was great demand for information, from various industrial houses, on how to base their marketing decisions. During this period, David Defoe’s publications gave information on the inventories of the business and economic resources of England and Scotland.

There was a good demand for this as it helped business community to take many business decisions. As an impact of the industrial revaluation, there was a sudden increase in demand for information to take various marketing decisions. However, as mentioned above, marketing research as an organised business activity began between 1910 and 1920.

Seeing the success of Charles Parlin, made many industrial firms and advertising media establish research divisions and later on, venture into publishing research books.

1. In 1915, Dr. Paul H. Nystrom, was appointed by the United States Rubber Company to manage their newly established Department of Commercial Research.

2. In 1917, Dr. Louis D.H. Weld of the Yale University was hired by the Swift and Company to become a manager of their Commercial Research Department.

3. In 1919, the first major book on commercial research, ‘Commercial Research- An Outline of Working Principles’ was published by Professor C.S. Duncan of the University of Chicago.

4. In 1921, the first research book to gain wide readership ‘Market Analysis’, by Percival White was released. This book went on to publish several editions.

5. There was a growing interest in the subject of marketing research on the college campuses and in 1937, Market Research and Analysis by Lyndon O. Brown became one of the popular textbooks during that period.

6. After 1940, many research textbooks were published and there was a rapid increase in the number of business schools offering research courses.

After World War II, there seemed to be a dramatic rise in interest in the area of marketing research. By 1948, there were more than two hundred marketing research organisations functioning in the United States and over the next few decades the estimated spend on marketing research activities has only kept on increasing tremendously.

What is Marketing Research – Meaning

Marketing research is an intelligent versatile tool of various practical applications. It is a pertinent search and study of the marketing of goods and services. Any business executive has constantly to watch the situation, the problems and their solutions. He has to draw up policies and plans according to objectives and utilize the organizational set-up for effective control.

One thing more that sciences are not always infallible. Physics is a pure and exact science and creates no problem. But meteorology deals with a disorderly environment and makes weather forecasts. It has to face atmospheric vagaries. The situation of marketing manager is similar to meteorologists.

Marketing executive and most managerial personnel have to study the disorderly environment of human behaviour. The customer’s choice to purchase or reject any brand is such complicated issue that any scientific instrument to read his behaviour cannot be waterproof.

The marketing manager has to foretell the uncertain future and then make the correct choice to achieve their goals. In fact, marketing research is a new social science with adventurous nature. Modern business system has become so complex and wide that the geographical distance between a manufacturer and his customer is widening day by day.

Most interesting fact is that the distance is assumed an indicator of success and market expansion. With the aid of marketing research, the producer and marketer can keep in touch with the changing trends, needs, preferences, attitudes, etc. of the customers towards design, shape, colour, brand, packing, weight, price etc. of the product.

Emphasizing the role and responsibilities of marketing research, Alfred, P. Sloan, Jr. President of General Motors, observes, “As a result of large scale operation and worldwide distribution, producer and consumer have become more and widely separated so that the necessity of keeping in business sensitively in tune with the requirements of the ultimate consumer becomes a matter of increasing importance. Through marketing research General Motors aims to bridge the gap.”

So in order to succeed well business in marketing research provides a systematic and intelligent investigation of the ‘who, what, why, when, where, how’ of actual and potential buyers.

What is Marketing Research – Definitions Provided by Crisp, Luck, Wales, Taylor, Green and Tull and Philip Kotler

It helps the firm acquire a better understanding of the consumer, the competition and the marketing environment. It also aids the formulation of the marketing mix. Decisions on each element of the marketing mix, product, distribution, promotion and pricing, need marketing re- search support.

With the ever-increasing complexity of marketing and business activity, marketing research has also grown in complexity. Today, carrying out research relating to customers, products and markets requires specialized skills and sophisticated techniques. And marketing research has emerged as a highly specialized function of marketing management.

Marketing research has been variously defined by marketing researchers. According to Crisp marketing research is “the systematic, objective and exhaustive search for and study of the facts relevant to any problem in the field of marketing.”

1. Luck, Wales and Taylor have defined marketing research briefly as “the application of scientific method to the solution of marketing problems”.

2. According to Green and Tull, “marketing research is the systematic and objective search for and analysis of information relevant to the identification and solution of any problem in the field of marketing”.

3. However, by far, the most widely accepted definition of marketing research is the one given by the Definition Committee of the American Marketing Association. According to marketing research is “the systematic it, mar-recording and analyzing of data about problems relating to the marketing of goods and services.”

An analysis of these definitions clearly highlights some salient points about marketing research. First, that it is a search for data which are relevant to marketing problems-problems in different functional areas of marketing stretching from market to physical distribution and covering problems relating to consumer behaviour, product, sales, distribution channels, advertising, pricing, and physical distribution.

Second that it is carried out in a systematic manner as opposed to a haphazard or hit-and- miss manner. It means that the whole search process is planned which clear objectives and programmes of investigative action. Some authors have attempted to append more adjectives to it so as to explicitly impart it a scientific slant. One such adjective appended is ‘Objective’ which deserves our attention. Objectivity is very relevant and important in every research project.

It means that the search is not carried out to prove a prior opinion or is intentionally slanted to arrive at a predetermined results. Third, that research involves a process of gathering, recording, tabulation, and analysis. Thus, it also involves application of logic to data so as to convert them into information, 5 so that appropriate base for decision-making is developed.

However, none of these definitions is explicit about the managerial purposes of marketing research except saying that data are required for solving marketing problems.

We may, therefore, define marketing research as objective and systematic collection, recording and analysis of date relevant to marketing problems of a business in order to develop an appropriate information base for decision-making in the marketing area.

i. Contributions and limitations of marketing research.

ii. Contributions of Marketing Research.

From the foregoing it is apparent that the scope of marketing research activity is very wide. It addresses itself to possibly all aspects of marketing. However, its role is not only all pervading in marketing but its contributions to effective marketing management are also substantial. Its major and singular contribution is in segmenting the effectiveness of marketing decisions.

Marketing research uncovers facts from both outside and within the company relevant to marketing decisions and provides a sustainable and logical base for making decisions. Nevertheless, decisions are still made in the absence of marketing research findings, but then they are based not on facts but on guess work and intuition, highlights the difference in decision making when it is based on intuition and on facts provided by marketing research.

Decisions based on facts are prone to be more effective because their match with the consumer needs is near perfect. On the basis of facts provided by marketing research, the marketing executive’s knowledge about the market environment and the company’s constraints is considerably increased; it helps him in narrowing down his range of alternatives and facilitates the selection of one which provides a reasonably perfect match to a given.

According to Green and Tull, “Marketing research is the systematic and objective search for and analysis of information relevant to the identification and solution of any problem (i.e., specific marketing situation) in the field of marketing”.

According to Philip Kotler, Marketing research is defined as, “the systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situations facing the company”.

Marketing research is a systematic and objective study of problems pertaining to the marketing of goods and services. Marketing programme starts from identifying and creating needs; segmenting, targeting and positioning the heterogeneous needs, and not even ends, until customers’ needs are satisfied effectively and efficiently, consistently and continuously, better than the competitors by the marketers.

Marketing research is also the starting point of the marketing management and perform as the base of the marketing efforts throughout. It may be emphasized that it is not only restricted to any particular area of marketing, but is applicable to all its phases and aspects.

Marketing research is the fundamental function linking the consumer, customer, and public to the marketer through such information which is used to identify and define marketing opportunities and problem; generated, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of market as a process.

Marketing research provides the requisite timely and accurate information for making marketing decisions by reacting to the marketing opportunities and problems.

What is Marketing Research – 7 Major Features: Function of Marketing Management, Integrated Effort, Systems Approach, Inter-Disciplinary Process and a Few Others

The prominent features marketing research are as follows:

Feature # 1. Function of Marketing Management:

The information generated through marketing research can be used to determine most appropriate marketing mix. Marketing research operations helps the marketing executives to keep abreast with the environmental changes by providing right information on dynamic environments to facilitate decision-making.

The marketing environment consists of customers, competitors, suppliers, distributors, etc. Therefore, marketing research is a well recognised and very important function of marketing management.

Feature # 2. Integrated Effort:

For carrying out marketing research activities in any organisation, a group effort is needed. Research objectives are organized by planning executives and data requirement for the accomplishment of these objectives are determined by the data analyst. The data processor should be familiar with the nature and location of available data to retrieve and process it at the desired time. Therefore, marketing research is an integrated effort.

Feature # 3. Systems Approach:

A number of activities viz., collection, recording, tabulating, evaluating, analysing and interpretation of information are included in marketing research. Each of these activities is performed by some experts who are supervised by marketing management executives. Therefore, marketing research constitutes a systems approach from start to finish.

Feature # 4. Inter-Disciplinary Process:

Marketing research involves collection of data and information from various fields such as psychology, sociology, economics etc. Similarly, study of consumer behaviour involves psychological and sociological study. Furthermore, various statistical and mathematical techniques are used to process the information. Therefore, it is regarded as inter-disciplinary process.

Feature # 5. Imperfect Science:

A group of prescribed procedures for establishing and connecting general laws to enhance knowledge by developing concepts, collecting and analysing meaningful data and the critical study of concepts and premises is termed as scientific method and hence marketing research is a science. But the studies in marketing research are never exact as it deals with unpredictable and dynamic human behaviour.

The results are always uncertain with certain amount of risk. Therefore, marketing research is based on scientific method and can be termed as science but it cannot be designated as perfect like other Social Science, i.e., it is an imperfect science.

Feature # 6. Indispensable for the New Product Introduction:

The market research is used to find out: suitable avenues and place of the new products, before introducing a new product. It reveals the various opportunities of new markets and reveals the methods to reach the markets.

Feature # 7. Market-Orientation:

Marketing research aims at enabling the firms to produce that kind of goods and services which is acceptable to the customers. It sees that the goods and services must reach the market easily, quickly, cheaply and profitably. The right course of action to approach and sustain the market is possible with suitable marketing research.

What is Marketing Research – 10 Important Objectives: To Discover the News Markets, To Hold the Greater Market Share, To Minimise the Cost of Marketing and a Few Others 

Objective # 1. To Discover the New Markets:

The most important objective of marketing research is to discover the new market for the product. These can be discovered by advertising, market survey, effective salesmanship, etc.

Objective # 2. To Hold the Greater Market Share:

An important objective of marketing research is to enable the organisation to capture greater market share. Market share refers to that region of a particular industry’s total sale which a firm aims to achieve.

Objective # 3. To Evaluate Tastes and Preferences of Customers:

Marketing research analyses tastes and preferences of customers. Helps in analysing the likings and disliking of the consumers. The marketing department should make an analysis of the demand and preference of product from time-to-time.

Objective # 4. To Anticipate the Future Sales Volume:

Marketing research is targeted at studying and understanding the consumer behaviour. It smooth the way in determining the probable future sales volume that can be achieved either by creating new markets or by adding new lines of production.

Objective # 5. To Minimise the Cost of Marketing:

Reducing the cost of marketing is an important objective of marketing research. The cost of marketing is inclusive of selling, advertising, promotion and distribution of products. Marketing research here assists in determining the methods by which excessive (unnecessary) sales and advertisement expenditure can be reduced to minimum possible extent.

Objective # 6. To Improve the Quality of Product:

Improving the quality of the product is another objective of marketing research. The main objective of marketing research is to identify the needs, wants and demands of the target customer, so that the firm can introduce changes in the product according to the important requirements. It is this quality of product that helps to create brand loyalty of the customer toward the firm’s product.

Objective # 7. To Assist in Formulation of Suitable Price Policy:

Marketing research renders valuable information to the management about competitive prices. Price is the amount of money charged for a product or services that consumers exchange for the benefits of product or service. This information also shows the packaging, quality and discounts of competitive products.

Objective # 8. To Effectively Face Cut Throat Competition:

Facing cut throat competition is also an important objective of marketing research. In modern time, no firm can survive without facing competition in the market. Since any reaction of the competitors firm can affect the demand of the firm, hence, the firm should also take proper action in response to the strategy of competitor.

Objective # 9. To Make Liaison with Ultimate Consumers:

Consumer is a human being and his behaviour is never static. Consumers are neither so simple that they do not require to be studied, nor so complex that their study is not possible. Marketing research helps the firm to be in touch with the consumers, behaviour and as a result, the management may take appropriate decisions in relation to production policies, pricing policies, channels of distribution, sales promotion activities and finally to face the competition.

Objective # 10. To Analyse the External Environment:

External environment refers to the present government policies and regulations. An important objective of marketing research is to study the effect of external environment on decision-making by the firm. It also provides information regarding the probable development in the foreign markets, new products and substitutes, emergence of new competitors and their future impact on firm’s output.

What is Marketing Research – Importance: Reduction of Risk, Identifying Target Markets, New Product Ideas, Facing the Competition, Planned Production and a Few Others 

1. reduction of risk:.

Marketing research reduces the risks involved in marketing decisions. The findings of marketing research can be used to aid in planning, selling, sales promotion, advertising, etc.

Marketing research helps in reducing the risks involved in marketing decisions by providing:

(i) Current information required by the marketing manager to take decisions.

(ii) Generalized knowledge or theory about the marketing process.

2. Identifying Target Markets:

Marketing research helps the organization to identify those markets or territories where their products are likely to sell. Customer surveys give an idea about those areas where the demand for a particular product is comparatively higher. The organization can target such markets.

3. Helps to Carve a Niche Market:

Niche markets are highly specialised markets where specific products are aimed at serving specific customer needs. Marketing research provides such information to the company which enables it to identify the market segments which have not been targeted so far by competitors and thus carve a niche for itself.

4. New Product Ideas:

The company can obtain fresh ideas for new and innovative products through marketing research information. Facts and figures regarding customer buying habits and preferences are provided by such research which makes it possible to come up with ideas for new product development.

5. Discovering New Uses of Existing Product:

Marketing research provides information regarding various uses of the product. If a company’s products are being used for purposes other than the one originally intended, then the company can leverage this fact to its advantage by promoting newer uses for the same product.

6. Facing the Competition:

When an organization studies the marketing policies, practices and strategies of its competitors through marketing research, it is better equipped to design its own policies and plans to effectively challenge the competitors in the market.

7. Planned Production:

As marketing research helps in estimating the demand of the product, it facilitates the production of the product in a planned way so that equilibrium is maintained in demand and supply position in the market.

8. Understanding Customer Needs:

Marketing research involves analysing consumer behaviour and preferences in order to identify their unfulfilled needs. Efforts are made to understand the requirements and wants of the customers so that new products can be planned accordingly to cater to their needs.

What is Marketing Research – 5 Basic Dimensions: Time Horizon, Types of Data, Research Objectives, Research Purpose and Data Sources

Although marketing research can be classified in many different ways, there are five basic dimensions which need to be considered carefully. Most studies involve a combina­tion of these dimensions.

The first classifies marketing research in terms of two different time horizons relating to the required information – continuous or ad hoc research.

The second classifies marketing research in terms of the two, essentially different, types of data which might be obtained – quantitative or qualitative.

The third dimension classifies marketing research in terms of the different objectives in obtaining the information – exploratory or conclusive.

The fourth is also related to the purpose of the research, which could be – descriptive or causal.

The final classification relates to the data sources, which could be – secondary or primary.

Individually the five dimensions are inter­related rather than mutually exclusive, making classification somewhat complicated.

1. Time Horizons:

i. Continuous Marketing Research:

Marketing information, such as total sales by product variant and geographic region, is gathered on a routine basis so that it can be compared over time. This allows the performance of the marketing activities of an organisation to be monitored and, in particular, market trends to be determined.

By definition, continuous marketing research is produced on a regular/periodic basis. It supplements existing marketing information and is usually presented as a memo or newsletter. Because of the cost and resources involved, continuous research should be limited to collecting information which is required for routine decisions or feedback and monitoring.

It is an activity which needs to be kept in check since, with the advent of computer databases, it is comparatively easy to produce more data than can be used by the managers for whom it is produced.

ii. Ad Hoc Marketing Research:

When research is required for a one-off specific purpose it is generally referred to as ad hoc research as it is carried out only when actually required to assist a marketing deci­sion. An example could be the investigating of the viability of a new product, or the reasons behind a drop in sales. Usually the presentation of the research findings will be in a formal report.

It is customary for such reports to be sufficiently comprehensive for the information presented to be of value to users who may have no relevant intangible marketing information on the subject. This is important since otherwise the value of the information provided is likely to depend more on the user’s existing knowledge of the subject than on the quality of the marketing research.

In many organisations this type of research is seen as the main purpose of the market­ing research department. However, this is generally misleading since, although the presentation of continuous research as a memo or newsletter may not be impressive, it is often used as the basis for much of the ad hoc research undertaken as well as routine feedback. For this reason it is important that continuous research information is pro­duced in a form that allows detailed analysis, should this be required.

It is also inevitable that most marketing research textbooks focus mainly on ad hoc research. The reason for this is that ad hoc research involves a number of well-established stages and procedures. In contrast, since continuous research is a routine activity, most of these stages are only necessary when setting up the routine.

In practice, most continuous research is, at least in part, subjected to the full research process from time to time as a result of being used in ad hoc research. In many organisations such research is also done when preparing the annual marketing planning reference document.

2. Types of Data:

i. Quantitative Data:

Any information which can be expressed using a numerical measure is considered quan­titative. It includes not only numerical data, such as that obtained from internal sales and accounting records, but also the numerical aspects of other data, often derived from questionnaires.

It could also include studies of distribution levels, repeat purchase rates or even opinion polls regarding voting intentions. More than three-quarters of all mar­keting research data is classified as quantitative. Nearly all continuous marketing research comes within this category since usually it is undertaken to provide data for time series analysis.

ii . Qualitative Data :

Qualitative research is concerned with information which is based on descriptions and shades of meaning rather than numerical analysis. It is commonly used in the early stages of ad hoc research studies. One popular source of qualitative data is that derived from small focused group discussions.

In general, it involves unstructured exploration or inductive problem-solving techniques which are beyond the scope of an introductory text such as this. Although in practice less than a quarter of the marketing research undertaken can be classified as qualitative, this category is much discussed both with regard to the methods used and resultant findings. It has resulted in the development of many concepts seen as useful in defining and categorising market segments, such as lifestyle.

3. Research Objectives :

i . Exploratory Marketing Research :

The purpose of exploratory research is to identify the nature of a marketing problem in order to decide what issues should be measured or how it is best to undertake a study. It is used to indicate issues or generate ideas or hypotheses. Since exploratory research is problem-orientated, it has always to be carried out as ad hoc research. Qualitative research techniques are often used in order to minimise the effect that the terms of refer­ence might have on the research outcome.

ii . Conclusive Research :

Research must be considered as an aid to marketing deci­sions and as such cannot replace this role. Conclusive research is aimed at providing information which management requires. It might be used to test a hypothesis set up in advance of the data collection, but more likely it involves measuring the variables identi­fied as particularly relevant to a particular decision.

The deductive approach to problem solving can only be applied to problems where it is possible and practical to obtain data which is appropriate and reliable. For other problems, the alternative inductive approach to problem solving is generally more appropriate.

The inductive approach involves establishing concepts by identifying repeated patterns in the behaviour being observed. The validity of the applicability of these patterns is then verified by repeated empirical studies. The results obtained are generally stated as para­digms rather than laws since their application is subject to exception.

This is the normal approach used for psychological work involved in, for instance, buyer behaviour studies. It would have been the approach used by Maslow to develop his hierarchical theory of motivation. It is also the basis used for qualitative marketing research. The implementa­tion of this approach to problem-solving requires specialist training and experience and is thus beyond the scope of introductory texts such as this.

4. Research Purpose :

i. Descriptive Marketing Research:

Descriptive research focuses on product performance, market size, trends, competitive strategies and market share. It is typically concerned with measuring/estimating vari­ables and the frequency of their occurrence. Depending on the objective and context, this could be the result of either continuous or ad hoc research.

ii. Causal Marketing Research:

Causal research looks at the cause-and-effect relationships in an attempt to explain why things happen; for instance, whether loss of market share is due to the success of a direct competitor or the result of an indirect competitor’s success in an associated market seg­ment. Like exploratory research, causal research is usually undertaken on an ad hoc basis.

Causal research is often more analytical than descriptive research and is intended to reveal the factors critical to the behaviour of consumers or, more generally, markets. It can thus involve using both quantitative and qualitative research techniques and so is beyond the scope of most introductions to marketing research such as this.

5. Data Sources :

Data is formally available from three separate sources. These are discussed in the usual order in which they are carried out. It may seem strange but should be easy to remember that the first two categories provide secondary data that is data from sources that already exist. The final source provides primary data.

i. Secondary Sources – Internal Data:

Internal data is the information which is internal to an organisation and usually the start­ing point for subsequent studies. It is a rich source of good quality information already held within an organisation, and it is essential that it is fully utilised.

Internal data can be drawn from:

a. Sales records

b. Delivery and stock records

c. Prices and quotations

d. Sales promotion – price offers, etc.

e. Advertising – media and messages – size of budget

f. Sales personnel’s call reports and assessments of their effectiveness

g. Past studies on marketing effectiveness.

Of particular interest in the context of marketing is the time series data relating to orders received, products delivered, advertising expen­diture, promotional campaigns, sales by customer or sales territory and so on. Sometimes the information required is available directly from routine reports giving continuous data. However, there are often occasions when it is insufficiently detailed in some way.

Much of the time series data will have been summarised, for instance as sales by day or week or month or even as quarterly or annual figures. Inevitably, detail is lost as the figures are summarised. Usually this is because the summaries are prepared primarily to provide managers with measures of financial efficiency. While such measures are essen­tial in any business organisation, they are likely to use conventions set by the accounting requirements rather than the needs of marketing.

Traditionally, for manufacturing companies, financial efficiency has been seen as being largely dependent upon production efficiency. This orientation led to the develop­ment of the production-orientated costing systems which form the basis of modern management accounting practice.

Cost accounting as a procedure involves considerable clerical routine and its automation was one of the earliest business applications of com­puter technology. Because of this, many costing systems retained their production orientation even when this was no longer justified.

As a result, it is not uncommon to find that even sophisticated management accounting systems are unable to provide information in the form required for detailed marketing analysis. Fortunately, providing the basic information can be accessed, it is now usually possible, to use a personal com­puter to extract and collate the information in the form required, although it can be surprisingly difficult and time consuming.

Although one of the principal objectives of collating internal marketing data is to mon­itor the performance of the marketing function, in practice this information is of little value for decision making unless it can be compared with the market as a whole.

For long-term success, organisations need to grow faster than the market during periods of growth and decline less rapidly than the market during periods of decline. In order to make these comparisons it is necessary to refer to data obtained from outside sources.

ii. Primary Data Sources:

Primary research has been referred to already and is often referred to as field research, in contrast to the term desk research used above, to describe the collection of secondary data.

Primary data is derived from one or more of the following four market research techniques:

a. Observation

b. Surveys (interviews)

c. Projective methods

d. Experimentation.

For a full description of such techniques there are many marketing texts available. Appendix 4 gives some guidelines for designing questionnaire-based surveys.

You will remember that to be of value marketing information must be:

a. Reliable /accurate

c. Relevant

d. Sufficient

e. Current/up-to-date.

It needs to be understandable to whoever will be using the information. This is often a major challenge for the marketing researcher even though personal computers offer an extensive range of alternative methods of analysis and presentation. Ideally the method chosen should be simple and easily explained to the person who is to use the information.

What is Marketing Research – Areas: Advertising Research, Product Research, Business Economics and Corporate Research and Sales and Market Research

Different Areas of Marketing Research:

Clark and Clark define marketing research as – “The careful and objective study of product design, markets and such transfer activities as physical distribution, warehousing, advertising and sales management”. Thus the areas of marketing research lies in its variety of applications.

They may be summarised as follows:

1. Advertising Research – Advertising effectiveness, copy research, media research, etc. Thus, marketing research has a broad area of application which describes its scope. The main purposes of marketing research to a marketer are planning and control, but, one point that must be stressed here that a marketer (or a marketing manager) has always limitations in terms of resources (staff and money) and time. There may be a number of problems or decisions to face and only critical problems areas should be identified and given priorities for research.

2. Product Research – Acceptance of existing products, acceptance of new products, packaging competitive products etc.

3. Business Economics and Corporate Research – Short range forecasting, long range forecasting, pricing (policies and strategies) studies, studying business trends, and MIS, etc.

4. Sales and Market Research – Measuring market potential, analysing market shares, determining market characteristics, sales analysis, sales quotas and territories, test marketing audits and distribution channels.

What is Marketing Research – Steps: Formulate the Research Programme, Conceptualize a Research Design, Select a Sample, Write the Research Proposal and a Few Others

To understand marketing research, it helps to have a basic grasp of the process used to gather data. The research process is composed of a series of eight steps to achieve the overall goal of generating usable information.

A typical marketing research process has the following steps:

Step # 1. Formulate the Research Program:

This is often the hardest step in executing the research program. The researcher looks for underlying causes of the problem. Often certain symptoms are incorrectly identified as the problem. Solving a symptom does not solve the underlying problem. For example, a retail manager of a gym finds that sales figures are a little low compared to those of the same time the previous year. The question she should ask is- ‘Are lower sales the primary problem?’ The answer is most likely ‘no’; rather, the lower sales are probably a symptom of the primary problem. To uncover the primary problem, the appropriate question is – “What caused the sales decrease?”

When distinguishing symptoms from problems, the manager may find that sales are low for other retailers and that her gym’s sales decrease is actually the smallest of all competitors’. This may be due to a slumping economic environment. Thus, there is no internal problem; instead the problem is industry-wide. Managers may need to develop response strategies to counter retail environmental issues.

Problem formulation is difficult for beginners because they are used to being given problems. Think about your last college examination. If it was a multiple-choice test, the professor gave you a series of problems or questions, along with a series of possible solutions. This is not the way it happens in the retail world, however. In professional retailing, you are not given the original problem to be solved (and far less a series of potential solutions from which to choose). Critical, analytical thinking must come into play.

In retailing, the research problem usually comes about because retail objectives are not being met. When this is the case, the first question to ask is – “Why?” To uncover the problem, the researcher must search for data in the specific area of interest to avoid collecting an excessive amount of useless data. A secondary data search helps develop a better understanding of the retail environment under study.

In addition, a comprehensive secondary data review may actually solve the problem and avoid the need to develop a more formalised approach to getting the necessary information. If the secondary data help solve the problem, the research process is complete. If it does not offer solutions to the problem, the research process must continue. Once the research problem has been clearly defined — in other words, once the question “What needs to be accomplished or solved by undertaking the research process?” has been answered — the researcher is ready to continue. During this step, it is wise to identify variables that may alter the findings – What environmental issues and variables may have an impact on the final solution?

Step # 2. Conceptualise a Research Design:

In step 2, a choice needs to be made among the many available types of research designs (observation, survey, longitudinal study, and so on). The research design is used as a guide throughout the entire research process and is dependent on the type of data to be collected and how they are to be collected. Thus, a thorough understanding of the problem is needed to choose the research design that will be most effective in solving the problem.

Step # 3. Create a Data Collection Instrument:

Based on the identified problem, methods of data retrieval and collection are chosen. When creating a data collection instrument, options include a questionnaire, an observation feedback form, or a personal interview feedback sheet. For example, a retailer has ordered 100,000 pens to be used in the retail promotions department. When the shipment arrives, the retailer does not want to look at every single item to determine how many are defective.

In this case, the retailer uses an observation feedback form to record defects. To save time, the retailer chooses a sample of pens and then extrapolates, or projects, the number of defective units from that sampling. In this case, a ‘piece of paper,’ is the research instrument and, for this retailer, is sufficient to record the data pertaining to the problem.

Step # 4. Select a Sample:

To use statistics correctly, the selection of a sample must be somewhat scientific. One needs to understand the concept of sampling and to know whether a probability sample or a nonprobability sample is called for to complete the research project.

Step # 5. Write the Research Proposal:

It is not within the scope of this text to discuss the development of research proposals. Briefly, this proposal needs to cover the secondary data search, the problem, what is to be accomplished from the work, the hypothesises, the study design, and methodologies to be used in generating responses from the sample. The proposal should also include a section on how and to whom the findings will be communicated.

Step # 6. Collect the Data and Enter into Database:

In this step the data are collected and placed into some type of database to allow for analysis. The data collection process must be conducted in a sensitive and ethical manner. In most instances, subjects need to be ‘briefed’ about the intent of the research.

Once the data are collected, the analyst codes the data. Coding involves assigning the data numbers and/or titles to help the computer read them. Not all researchers code data, but data coding helps organise and interpret the data, which is done in the next step. After coding, the data are then entered into the appropriate database.

Step # 7. Analyse and Interpret Data:

In this step, statistics are used to analyse the data. After statistics have been applied, an interpretation of the data is made.

Step # 8. Write the Research Report:

There are several things to keep in mind when writing the research report. Most important is to understand the audience that will read the report. Are they practitioners who have little time or use for every detail of the project? Are they researchers who will be very interested in the methods used to collect and present the data? Should the report include a “works cited” section, a reference section, or a bibliography section, or perhaps all three? Regardless of the audience, it is standard practice to include the conclusions and recommendations within the body of the report.

Often it is necessary to complete an executive summary at the beginning of the research report. An executive summary is essentially an abstract of the entire report. It should identify all the activities performed in the research process, including recommendations on how to solve the problem or issue, in a page or less.

What is Marketing Research – Application: Relationship Marketing, Brand Equity Measurement, Customer Satisfaction, Total Quality Management and a Few Others

Application # 1. relationship marketing :.

Relationship Marketing has been defined as “Consistent application of up to date knowledge of individual customers to product and service design which is communicated interactively in order to develop a continuous and long-term relationship which is mutually beneficial”.

The above definition highlights that it is necessary to identify on a continuous basis the characteristics of the customers in a detailed manner. The individualisation involves tailoring company’s all efforts in offering a product or service to the customer based on the identification of his/her needs.

Communication interactively refers to a continuous dialogue which is necessary to understand the customers needs as well as the company’s strategic value. If such interactions are made it will result in a long and lasting relationship between the customer and the firm.

Some of the key features of relationship marketing where marketing research can help in building up databases are:

i. Through market research try to identify the underlying needs of the consumers and enhance customer satisfaction by providing lifetime value to the customers.

ii. With the help of research identify ways to provide – quality, customer service and marketing, oriented programs towards regular customer contact and long-term commitment.

Through Marketing Research, the firm can build a database which will effectively enable it (the firm) to go for Customer profiling (use the data to find out customer’s specific interests and characteristics) and Personalisation (delivering customised content to the individual customer). It must be remembered that this method of database marketing will provide the means by which a firm can identify, maintain and build up its network of customers.

Application # 2. Brand Equity Measurement :

Brand equity can be defined as a set of assets and liabilities linked to a brand that adds to or subtracts from the value of a product or service to a company and/or its customers.

The concept of brand equity has been accepted by marketers and academicians since more than two decades. At the conceptual and practical levels there has been reasonable acceptance as to what is meant by brand equity.

Typically, while referring to brand equity, the assets and liabilities will always be associated with the name/symbol of the brand and they will vary from context to context. Broadly speaking, brand equity can be categorised on the basis of brand loyalty, awareness of the name, consumers perception about quality, other parameters or features associated with the brand, in addition to perceived quality and other proprietary brand assets such as patents, trademarks, etc.

Approaches to Measuring Brand Equity:

Predominantly, there are two approaches used for measuring brand equity:

(a) Financial approaches to measure brand equity (These are from the firm’s perspective).

(b) Consumer based approaches to measure brand equity (From the consumer’s perspective).

(A) Financial Approaches to Measure Brand Equity:

Many approaches have been tried/used to measure brand equity at a firm’s level:

(1) One approach was suggested by Simon and Sullivan to measure brand equity at the firm level, by considering the incremental cash flows that accrue to the firm because of its investment in brands.

Limitations:

(i) Since the data is aggregated to the firm level, this approach may not be useful for considering a brand in a multi-brand firm with multiple product categories.

(ii) It is not possible to attribute all increase in cash flow to brand building activities alone.

(iii) It will be difficult to separate brand related effects from other effects such as price and quality differentials.

(2) Another approach uses the basis of aggregating the cost of all marketing, advertising and R&D expenditure related to the brand over a period of time to measure brand equity.

(B) Consumer-Based Approaches to Measure Brand Equity:

There are various approaches to measure brand equity at an individual level.

(1) In a study by Green and Srinivasan, the brand name was included as a factor in the conjoint analysis method performed at the individual level. The relative utility associated with the brand name with respect to the other important attributes was treated as a measure of the brand equity.

(i) This method has the typical problems of using conjoint analysis – unrealistic product profiles and a large number of combinations to be ranked.

(ii) No information on the sources of brand equity, is known.

(2) Srinivasan also tried the brand specific effect method whereby brand equity is estimated by comparing actual choice behaviour with those implied by utilities obtained. This was done with the help of product attributes obtained through conjoint analysis.

Application # 3. Customer Satisfaction :

In these days of intense competition, one need not emphasize that a company’s success at the market place will ultimately depend on how it creates and delivers better value through better ‘Customer Satisfaction’ to its target market vis-a-vis its competitors.

The ‘value’ leading to enhanced customer satisfaction will include not just the tangible or functional aspects (product quality, features, varieties etc.) but more so the intangibles in the form of – speed, time, ambience at the sales counter, staff behaviour, etc. (related to the process of acquisition of the product/service), confidence in the reliability of the offers being made, high quality communication and so on.

It is the combined value of the functional and emotional aspects which will result in consumer satisfaction, further leading to creating a brand equity in the minds of the customer, which is critical in achieving the market share objective of the firm.

Customer Satisfaction and Managing Perception:

When the consumer receives a product or service, the satisfaction will work out to be the positive difference between what is being delivered and what is expected by him. It can be said that two types of perceptions (perceived value) can affect the ultimate levels of customer satisfaction.

(i) The customer’s expectation of perceived value.

(ii) What the consumer perceives he is actually receiving from the manufacturer (which may be different from what the supplier organization may think it is providing).

Thus, organisations will have to manage perceptions at two levels, i.e.- (1) manage the consumer’s own perception about his needs and (2) how the consumer perceives the offerings made by the service provider (or organisation) are.

Organisations can work towards creating a positive customer satisfaction by- Either delivering a higher level of satisfaction than expected by the target customer or manage the expectation level such that their product or service offerings exceed such managed expectations.

Customer Satisfaction Programme:

The following are some of the, “dos” while working out consumer satisfaction research:

i. A Clear Definition of the Goals and Usefulness of the Information:

It is very necessary to set clear, measurable and comprehensive goals for consumer satisfaction research. The goals and objective of the research process will help to gather more information on the users, their involvement and use these to plan strategic and tactical applications of the same.

ii. Seek the Customers and Employees Involvement in the Process:

The involvement of both the customers and employees will help in subsequent measurement of the key drivers of satisfaction. After identifying what parameters compose of the customers’ and employees perceptions and the expectations for quality and satisfaction, it will be easy to involve them in the process. It will also help to organise cross-functional quality improvement teams.

iii. Assessment and Measurement of Critical Needs:

Through in-depth interview (telephone/mail or personal) with a representative sample of customers (existing, ex and prospects) quantitative information can be obtained. This will help in identifying the qualitative attributes as well as competitors performance on those attributes and measuring these critical needs.

iv. Periodic Measurement of Company’s and Competitors Performance:

It is necessary to periodically measure the company’s and competitors performance on the key drivers of satisfaction. This will reveal the rate at which customer satisfaction is improving or declining.

Of course, how frequently the measurement should be done will be dependent on the market dynamics with due consideration taken to ensure that sufficient time has elapsed to facilitate change which become measurable.

v. Specific Issues While Framing Questionnaire:

Certain ‘dos’ have to be kept in mind while framing questionnaire for customer satisfaction studies. The questionnaire should include questions relevant to the target customers group, those which will indicate overall ratings, performance ratings, questions indicating whether the customer will patronage the product usage in the future, demographic and psychographic information and in general information useful for cross tabulation analysis.

Application # 4. SERVQUAL Method to Measure Satisfaction :

SERVQUAL method can be used to measure satisfaction of service offers, retailing and other areas (after sufficient modifications are made).

The SERVQUAL survey questions can be classified into five categories:

(a) Questions on the tangible aspects such as appearance of facilities, personnel, etc. (four questions).

(b) Questions measuring reliability (five questions).

(c) Questions indicating responsiveness (four questions).

(d) Questions indicating assurance such as – courtesy, competence, credibility and security (four questions).

(e) Questions which involve empathy dimensions such as easy access, communication, customer understanding (five questions).

The customer forming a part of the representative sample, for survey has to fill up the questionnaire measuring the various dimensions in the 22 questions and then be used to measure competitor performance, one for each firm or product. The SERVQUAL score for a product is worked out by measuring the difference between the perception of the dimension and the expectation.

It will be easy for the company to understand its quality of service on all the five dimensions by taking an average for a particular dimension and calculating an overall score. It will also be possible to work out a weighted SERVQUAL score by asking the customer to assign weights (summing to 1) on each of the five dimensions. A scale will give a qualitative measurement of the customer’s feelings and attitudes and experience with the firm’s products and services.

Selection of the scale will be based on the properties inherent in each of the different levels of measurement: nominal, ordinal, interval and ratio.

Most of the behavioural marketing research studies to measure customer satisfaction are interval scales – descriptive statistics (arithmetical mean, standard deviation) and tests of significance (t – tests, Anova).

Application # 5. Total Quality Management (TQM) :

TQM is defined as a systematic effort at continuous quality improvement of all processes, products, services and human resources throughout the organisation, undertaken with the intention of improving customer satisfaction.

Satisfaction scores on six product parameters are used to identify the gaps between the perception of the management and the customer on performance.

TQM is essentially a Japanese concept where a company continuously strives for improvement in quality, with the involvement of cross-functional teams within the organisation, with the help of various tools and techniques and quantifiable measures as well as rewards based on these measures.

In order to ensure customer satisfaction the firm adopting the TQM should set the guiding principles for data choices. For there will always be a clear link between the kinds of data collected and maintained and the quality values of the company.

Application # 6. Online or Internet Marketing :

In today’s fast paced technology moving world, much of the business is carried out over digital networks involving businesses (companies) and people (customers). Due to the comfort and widespread usage of the Internet among people, online or Internet marketing has become a very popular method of purchasing products and services, by customers.

In a report by Internet and Mobile Association of India (IAMAI) and IMRB, it was found that as of June 2012, there were 138 million claimed Internet users in India, 99 million from urban India and 39 million from the rural parts of the country. The report adds that there is seen a growth of 16 per cent of the number of claimed Internet users, when compared to 2011.

And this number is estimated to grow up to 150 million by December 2012. The report also mentioned about the penetration of active users (mainly driven by the youth who are tech savvy) which has resulted in an increase in the frequency of Internet usage from a mere 28 per cent of the users in 2011, accessing Internet daily to about 54 per cent in May 2012. Online shopping, writing emails and social networking are some of the main purposes of Internet usage.

Types of Online Marketing :

Online or Internet marketing can be classified based on who carries it out and at whom it is aimed.

Broadly, Internet marketing can take place between:

(i) Business to Consumer

(ii) Business to Business

(iii) Consumer to Consumer

(iv) Consumer to Business

(i) Business to Consumer:

Internet marketing takes place when marketers sell goods and services to final consumers, through their websites. In this type of online marketing, marketers will target consumers who are internet savvy, visit various websites and gather information on various products and services offerings and place orders for the selected items thereafter.

For instance, futurebazaar(dot)com, indiabazar, homeshop 18, flipkart(dot)com etc. are some the of popular shopping websites preferred by Indian customers. The popularity of this method of marketing can be gauged from the fact that even government owned Indian Railways website www(dot)irctc(dot)co(dot)in, offers passengers (customers using the railway services), options such as booking and/or cancelling of railway tickets, book into their selected hotel rooms, hire vehicles for transportation etc.

(ii) Business to Business:

Online marketing involves business marketers offering product information, customer purchase support services online to business customers. For doing this, these B2B marketers use B2B websites email, online product catalogs, online trading networks with important business customers.

(iii) Consumer to Consumer:

Online marketing, the Internet acts as a medium through which consumers can buy or exchange goods or information directly with other registered users. Inter-exchange of information, by consumers, can be carried out via blogs, online journals etc. Hence sometimes, marketers try to reach out to targeted customers by advertising on or tapping into existing blogs. So, web savvy and online buyers not only consume (online) product information but can also work as word of mouth (or web) advocators and influence other buyer’s purchase decisions.

(iv) Consumer to Business:

Internet marketing enables consumers to search out sellers on the web, gather more information about their product offers, initiate the purchase process and also give a feedback on their buying experience. For instance, would be buyers of cleartrip(dot)com can bid for airline tickets, hotel rooms, cab services (rental), tourist packages etc.

Application # 7. Rural Market Research :

Rural consumers are very different from their urban counterparts. There are certain distinctive characteristic features such as lower levels of literacy, limited exposure to goods and services, type of occupation options which can affect their income levels, income flows and a high rate of interdependency – all of which have a direct impact on the rural consumer behaviours.

So any marketer interested in conducting a rural consumer research study must have to let go of the conventional market research tools and use only those which can be easily comprehended by the village community.

Most of the steps involved in rural market research are similar to those followed in the conventional urban marketing, with the broad difference being in the area of data collection.

The first comprehensive attempt, to study the rural market was made by Hindustan Thompson Associate (HTA) before 1980s. This database gave information on the market potential value, up to the district level on the basis of 26 variables such as demographics, occupational patterns etc.

This information helped in segmenting rural markets directly especially for agricultural inputs and durables but with limited utility for consumer durables and consumables. The Institute of Rural Management Anand, (IRMA) took the initiative of offering a course on rural marketing.

The institute developed many case studies on rural consumers and carried out researches on issues related to the evolvement of the rural markets and market potential analysis. Today market researchers are engaged in adopting different tools and techniques to gain newer and better rural consumer insights.

Research Tools Used for Rural Research:

There are various tools used by different market research organizations and advertising agencies to analyse the rural market.

These include:

1. Semiotic analysis developed by A C Nielsen to study association people have with different signs and symbols.

2. Customer eQ developed by A C Nielsen to measure quality satisfaction and loyalty.

3. Advanced Tracking Programme (ATP) developed by IMRB to track brand equity of about 1000 brands continuously.

4. Consumer ID to identify how consumers relate and react to different variables and brands in different product categories.

5. Lincompass developed by Lint-as specialised in rural marketing, a software tool to map the rural markets across the country on various parameters.

6. Mapping Software – ArcView, a knowledge-based intelligence system which depicts 5,87,962 villages as digitized points on maps and can be used for distribution and logistics application, territory planning and dealer development.

There are also a few focus rural market consulting agencies (or organisations) which are involved in carrying out assignments having direct interface with the rural consumers’ consumption related behaviours. Few of these names are MART, O & M Rural Communication Network, Rural Relations, Centre for Rural Business (RB) etc. A specialist organisation in rural research, which uses innovative approaches to conduct rural consumer research.

What is Marketing Research – Advantages

Marketing research has become a very important tool today. Marketing research has several advantages.

1) It helps the manufacturer to adjust his production according to the conditions of demand.

2) It helps to establish co-relative relationship between the product brand and consumer’s needs and preferences.

3) It helps the manufacturer to secure economies in the distribution of his products.

4) It makes the marketing of goods efficient and economical by eliminating all types of wastage.

5) It helps the manufacturer and dealers to find out the best way of approaching the potential buyers.

6) It guides the manufacturer in planning his advertising and sales promotion efforts.

7) It is helpful in assessing the effectiveness of advertising programs.

8) It is helpful in evaluating selling methods.

9) It reveals the causes of consumer resistance.

10) It minimizes the risks of uncertainties and helps in taking sound decisions.

11) It is helpful in ascertaining the reputation of the firm and its products.

12) It is helpful to the management in determining the actual prices and the price ranges.

13) It is helpful to the management in determining the discount rates.

14) It helps the firm in knowing its market share over various time periods.

15) It is quite helpful to a firm in launching a new product.

What is Marketing Research – Disadvantages: It is not a Panacea, Limitation of Money, Limitation of Money, Limitation of Human Behaviour and a Few Others 

(1) It is not a panacea – Marketing research does not provide solutions to all marketing problems. But offers accurate information, which can be used to arrive at suitable decisions to solve problem.

(2) Limitation of time – Its process is lengthy and needs long time to complete it. During the period between starting the research and implementation of decisions the situation and assumptions may have changed drastically which reduces utility of research report.

(3) Limitation of money – It is considered as a luxury for the management as it involves high cost. Researcher is provided limited money within which he is to complete the research work.

(4) Limitation of skill – It needs great expertise and well trained and experienced researcher, interviewer and investigator as research work needs a lot of statistical work – collection and tabulation of data. Researcher also has to access the reliability of secondary data. It requires a man who is proficient in the work.

(5) Limitation of bias – Limitations of money, time and skill give birth to bias. If the researcher is biased to the problem, the results of such research will be erroneous and the very purpose of marketing research is lost.

(6) Limitation of human behavior – Marketing research studies the behavior of consumers who are rational very often, they do not express their feelings correctly what they think. In such cases, their habits, practice, preferences cannot be assessed correctly. The results are also not correct.

(7) Narrow conception of Marketing Research – Marketing Research is a fact finding exercise. It is not problem-oriented. It is of low and questionable validity.

(8) It is passive – Its use and effectiveness largely depends upon the ability of executives to get the most value of it.

Related Articles:

• Marketing Research Process: 5 Step Marketing Research Process
• Elements of Marketing Mix – 4 P’s of Marketing Mix
• Approaches to the Study of Marketing
• Difference between Data and Information

Marketing Research: Meaning, Definitions, Components, Scope, Features, Importance, Advantages, Limitations

What is marketing research.

Marketing research can be defined as the process of gathering recording and analyzing the data related to certain products and services . This need for market research is derived from the concept that only by understanding the needs and wants of the target audience and by effectively meeting them, you will be able to achieve the organizational goals and surpass the competition in the specific market.

Market Research is any organized effort to gather information about target markets or customers. It is a very important component of business strategy. The term is commonly interchanged with marketing research , however, expert practitioners may wish to draw a distinction in that marketing research is concerned especially with marketing processes while market research is concerned specifically with markets.

However, it is the marketing manager who makes the final marketing decision and not the researcher. The second observation, that marketing research does not guarantee success, is simply a recognition of the environment within which marketing takes place.

Definition of Marketing Research

[su_quote cite=” Richard Crisp “] MR is the systematic, objective, and exhaustive search for and study of the facts relating to any problem in the field of marketing.[/su_quote]

[su_quote cite=”The American Marketing Association (AMA)”] Marketing Research is the function that 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 understanding of marketing as a process.[/su_quote]

Components of Marketing Research

The objective of marketing research is to provide management with relevant, accurate, reliable, valid, and current information. The competitive marketing environment and the ever-increasing costs attributed to poor decision-making require that marketing research provide sound information.

Market Research

Market Research is the key factor to getting an advantage over competitors. Market research provides important information to identify and analyze the market need, market size, and competition.

Product Research

Advertising research.

Advertising research is a specialized type of marketing research conducted to improve the efficiency of advertising. According to MarketConscious.com, “It may focus on a specific ad or campaign or may be directed at a more general understanding of how advertising works or how consumers use the information in advertising. It can entail a variety of research approaches, including psychological, sociological, economic, and other perspectives.”

Motivation Research

Motives: Something that compels or drives a consumer to take a particular action. Motivation research is also used to investigate the psychological reasons why individuals buy specific types of merchandise, or why they respond to specific advertising appeals, to determine the base of brand choices and product preferences.

Sales Research

For example, the identification of contact name and address changes reduces a company’s sales and marketing communications costs by eliminating phone calls and mailings to contacts who are no longer employed or who have changed positions.

Scope of Marketing Research

Syndicate service, marketing information system (mkis).

This is an internal activity where standardized reports are generated on regular basis or it is generated on demand also. E.g. Sales Reports, inventory amounts, production schedules, and also purchased information. We can track the sales performance and the changing taste of consumers also through MKIS.

Decision Support System

Market research projects, features of marketing research, systematic and continuous process.

Marketing research is a continuous process. One type of research is not adequate to resolve all marketing problems. Similarly, new research projects will have to be undertaken to solve new marketing problems and challenges.

Wide in Scope Application

Emphasizes accurate data collection and critical analysis.

In marketing research , required data should be collected objectively and accurately. The data collected must be reliable. It should be analyzed in a systematic manner. This will provide a comprehensive picture of the situation and possible solutions.

Offers Benefits to Sponsoring Company and Consumer

Commercial equivalent of military intelligence, device for managerial decisions.

Marketing research acts as a tool in the hands of management for identifying and analyzing marketing problems and finding out solutions to them. It is an aid to decision-making. It suggests possible solutions for the consideration and selection by managers. Marketing research is an aid to Judgement and never a substitute for it.

Applied Type of Research

Reduces the gap between the producers and consumer, not an accurate science.

Marketing research is both science and art. It collects information and studies marketing problems in a scientific manner. The information collected is also applied to real-life problems. However, marketing research is not an exact science.

Apply Different Methods

Dynamic character.

Marketing research is dynamic in nature. Its scope is fast expanding along with the new developments in the field of marketing.

Importance of Marketing Research

Planning and execution of marketing plan.

A business unit can plan and execute all activities right from manufacturing to marketing with reasonable accuracy and confidence due to the guidelines available through marketing research .

Quick and Correct Decision-Making

Effective solutions to marketing problems, huge spending on mr.

Large companies spend crores (1 Crore = 10 million) of rupees on marketing research activities. New techniques and methods are used in the conduct of research activities in an accurate manner. This suggests the growing importance of marketing research.

Advantages of Marketing Research

Indicates current market trends, pinpoints deficiencies in marketing policies, explains customer resistance.

Marketing research is useful for finding out customer resistance to the company’s products. Suitable remedial measures are also suggested by the researcher to deal with the situation. This makes the products agreeable to the consumers.

Suggests Sales Promotion Techniques

Guidance to marketing executives, selection and training of sales force.

Marketing research is useful for the selection and training of staff in the sales Organisation. It suggests the incentives which should be offered for motivation of employees concerned with marketing.

Facilitates Business Expansion

Facilitates appraisal of marketing policies, suggests marketing opportunities.

Marketing research suggests new marketing opportunities and the manner in which they can be exploited fully. It identifies existing and emerging market opportunities.

Facilitates Inventory Study

Provides marketing information, suggests distribution channels.

Marketing research can be used to study the effectiveness of existing channels of distribution and the need of making suitable changes in the distribution system.

Creates Progressive Outlook

Social significance, limitations of marketing research.

These are some points of limitations of marketing research :

Offers Suggestions and not Decisions

Marketing research is not a substitute for the decision-making process. Ready-made decisions on marketing problems are not provided by the researcher. Marketing research does not solve any marketing problems directly. It only aids management in the decision-making and problem-solving process.

Fails to Predict Accurately

In marketing research, efforts are made to predict the possible future situation. For this, certain research studies are undertaken. However, the predictions arrived at may not be perfect. The future is always uncertain and an exact prediction about the future is just not possible through marketing research.

Cannot Study all Marketing Problems

Resistance to research by marketing executives.

Researchers study marketing problems and offer guidance to marketing executives in their decision-making process. However, some executives are reluctant to use the solutions suggested by the researchers. They feel that such use will act as a threat to their personal status. Marketing executives also feel that researchers give solutions that are academic in character and lack practical utility.

Time-Consuming Activity

Costly/expensive activity, dearth of qualified staff.

For a scientific marketing research, professional marketing researchers with proper qualifications, experience, and maturity are required. Research work is likely to be incomplete /unreliable in the absence of such expert staff.

Complexity of Subject

Uncertainty of conclusions, limitations of data used.

The marketing research process solely depends on the data collected and used for analyzing the marketing problem, drawing conclusions, and making recommendations. However, the whole process will come in danger if the data collected are inadequate and unreliable.

Limited Practical Utility

Miscellaneous limitations.

The limitations of marketing research (noted above) do not suggest that it is a redundant activity. It only suggests that the marketing research activity should be conducted with proper care and caution. This will make research activity meaningful and result-oriented.

FAQ Related to Marketing Research

What is the meaning of marketing research, what is the definition of marketing research, what are the components of marketing research.

These are the major components of marketing research explained below: 1. Market Research 2. Product Research 3. Advertising Research 4. Motivation Research 5. Sales Research.

What are the scopes of marketing research?

What are the features of marketing research, what is the importance of marketing research.

The following points of the importance of marketing research: 1. Planning and Execution of Marketing Plan 2. Quick and Correct Decision-Making 3. Effective Solutions to Marketing Problems 4. Huge Spending on MR.

What are the advantages of marketing research?

What are the limitations of marketing research, you might also like, 5 steps of marketing mix process: limitations, importance of international marketing, place mix in marketing: meaning, channels of distribution, functions, types, factors, objectives of marketing management, management by objectives: definitions, features, objectives, processes, advantages, limitations, mis: meaning, definitions, components, types, functions, advantages, difference, marketing: meaning, definitions, concepts, scope, importance, benefits of crm, product mix in marketing: definition, concept, classification, components, product: meaning, definitions, difference, levels, types, limitations of mbo, types of market segmentation: strategies, effective segmentation, demand measurement: concepts, ways, sales forecast, social audit: meaning, objectives, and methods, limitations of planning, marketing and customer value, types of markets in marketing: meaning, components, e-market, difference, introduction to marketing: meaning, definitions, nature, scope, concept, functions, and importance, consumer behaviour: meaning, definition, natures, scopes, importance, applications, nature of marketing: customer oriented, delivery of value, network of relationships, separate discipline, business, leave a reply cancel reply.

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Daily pill cuts body weight by up to 13% after 3 months in early trial

A daily weight loss pill from Novo Nordisk was shown to lower body weight by up to 13% after three months in a Phase 1 clinical trial, according to findings presented Tuesday at the European Association for the Study of Diabetes annual meeting in Spain.

The rate of weight loss with the experimental pill, called amycretin, appears to be more rapid than what’s seen for other drugs .

“It’s roughly double the weight loss rate seen with current GLP-1 agonists and approaching procedural or surgical-level outcomes,” said Dr. Christopher McGowan, a gastroenterologist who runs a weight loss clinic in North Carolina. “It shows potential promise.”

Dr. Susan Spratt, an endocrinologist and the senior medical director for the Population Health Management Office at Duke Health, said the results looked impressive.

"How could they achieve weight loss that quickly?" Spratt asked. "It's almost like a miracle pill."

The findings are early — more research is needed, particularly over a longer period of time — and the drug can’t be directly compared to existing weight loss drugs because they weren’t tested in a head-to-head trial. The results also haven’t been published in a peer-reviewed journal.

Martin Lange, executive vice president and head of development at Novo Nordisk, said in a statement that amycretin works in a similar way to semaglutide, the drug in Wegovy and Ozempic . It’s a GLP-1 agonist, which mimics a hormone that helps reduce food intake and appetite . However, it also imitates a second hormone, called amylin, which can also promote a feeling of fullness.

Tuesday’s results were based on a Phase 1 clinical trial of adults who were overweight or had obesity who got either amycretin or a placebo daily for up to 12 weeks. Researchers also tested multiple doses of the drug, including increasing some participants’ dose levels over time.

The goal of a Phase 1 trial is to look at the safety of a new drug, including determining what doses work best for patients. Later trials focus on how well the drug works. 

That having been said, people who got the weight loss drug did lose weight: After 12 weeks, participants on the highest dose had lost an average of 13.1% of their body weight, compared with an average loss of 1.1% of body weight among those taking a placebo.

Novo Nordisk said the drug appeared to be safe, with side effects in line with those of Ozempic and Wegovy . Common side effects of those drugs can include nausea, diarrhea, stomach pain and vomiting.

Lange said the drugmaker has started a Phase 2 trial in people with Type 2 diabetes.

How much weight loss is too much?

McGowan said that while the weight loss was significant, he still has concerns about how fast people lost weight.

“While losing weight is seemingly the end goal, how that weight is lost matters,” he said. “Patients losing weight in a healthy, sustainable manner will be far more likely to maintain their weight and preserve lean mass .”

He also said he wanted more details about the side effects patients experienced while they were on the pill, which could provide more insight.

“Did patients lose weight more rapidly because they were less hungry or because they were sick?” McGowan said. 

Spratt said she would like to know how much of the weight loss came from fat compared with muscle.

"Muscle actually helps you metabolize glucose," the body's primary source of energy, she said. "Physicians worry about [losing] muscle mass, especially in their elderly patients."

She also had questions about dropout rates in the trial, details that would most likely be shared if the results are published in a journal.

"How are they losing so much weight? How much nausea and vomiting are there?" she asked.

Berkeley Lovelace Jr. is a health and medical reporter for NBC News. He covers the Food and Drug Administration, with a special focus on Covid vaccines, prescription drug pricing and health care. He previously covered the biotech and pharmaceutical industry with CNBC.

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Correlating light fields through disordered media across multiple degrees of freedom

Louisiane devaud, bernhard rauer, simon mauras, stefan rotter, and sylvain gigan, phys. rev. research 6 , 033265 – published 9 september 2024.

• No Citing Articles
• INTRODUCTION
• EXPERIMENTAL EVIDENCE WITH TIME-GATED…
• THEORETICAL EXPECTATIONS AND…
• CROSS-EFFECTS
• DISCUSSION AND CONCLUSION
• ACKNOWLEDGMENTS

Speckle patterns are inherent features of coherent light propagation through complex media. As a result of interference, they are sensitive to multiple experimental parameters such as the configuration of disorder or the propagating wavelength. Recent developments in wavefront shaping have made it possible to control speckle pattern statistics and correlations, for example using the concept of the transmission matrix. In this article, we address the problem of correlating scattered fields across multiple degrees of freedom. We highlight the common points between the specific techniques already demonstrated, and we propose a general framework based on the singular value decomposition of a linear combination of multiple transmission matrices. Following analytical predictions, we experimentally illustrate the technique on spectral and temporal correlations, and we show that both the amplitude and the phase of the field correlations can be tuned. Our work opens up new perspectives in speckle correlation manipulation, with potential applications in coherent control.

• Received 17 December 2023
• Accepted 29 May 2024

DOI: https://doi.org/10.1103/PhysRevResearch.6.033265

Published by the American Physical Society under the terms of the Creative Commons Attribution 4.0 International license. Further distribution of this work must maintain attribution to the author(s) and the published article's title, journal citation, and DOI.

Published by the American Physical Society

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Authors & Affiliations

• 1 Laboratoire Kastler Brossel , ENS-Université PSL , CNRS, Sorbonne Université , Collège de France, 24 rue Lhomond, 75005 Paris, France
• 2 INRIA , FairPlay joint team, Palaiseau, France
• 3 Institute for Theoretical Physics, Vienna University of Technology ( TU Wien ), A-1040 Vienna, Austria

Article Text

Vol. 6, Iss. 3 — September - November 2024

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Experimental illustration of temporal speckle correlations engineering. (a) Schematic of the experimental setup. The light delivered by a laser is split into two paths with a half-wave plate ( λ / 2 ) and a polarized beam splitter (PBS): (i) signal where the wavefront is modulated by a reflective phase-only SLM and passes through a layer of TiO 2 [focused with microscope objectives of 0.4 numerical aperture (NA)]; (ii) delay line introducing a delay τ . Both paths are recombined with a beam splitter (BS) and their interference, cleaned from the unscattered light with a polarizer (P), is imaged on a CCD camera. (b) Averaged temporal amplitude of the field measured behind a thick layer of TiO 2 when illuminated by a laser pulse of 100 f s . The black curve corresponds to the field when a blank pattern is displayed on the SLM, whereas the green curve results from the display of v min (singular vector associated with the smallest singular value of T 1 − T 2 ). The time-gated TMs are measured with N SLM ≈ 620 modes on the SLM and N CCD = 225  pixels on the CCD-camera at t 1 and t 2 . The camera pixels are always binned to have one speckle grain per pixel, except in the images of the field amplitude presented in the insets (for visualization purposes). (c) Top: Temporal evolution of the absolute value of the field correlation with respect to t 1 for both the blank SLM pattern (black dashed curve) and for v min . Bottom: subtraction of the reference correlation to highlight only the anomalous correlation increases. (d) 2D representation of the correlations to observe simultaneously all the correlations [with subtraction of the reference as in the bottom of Fig.  1 ]. For symmetry reasons, only Δ = | t − t ′ | , i.e., spacing between the two correlated delays, is represented as a function of 〈 t 〉 = ( t + t ′ ) / 2 , which is the mean value of the two correlated delays. A correlation increase is observed for Δ = | δ t | = | t 2 − t 1 | and 〈 t 〉 = t 0 = ( t 2 + t 1 ) / 2 . Data are averaged over four realizations of the medium.

Comparison of the absolute value of the correlations when displaying on the SLM different singular vectors for experimental data (for TMs of size N CCD = 225 and N SLM ≈ 680 ), simulations, and analytical predictions. All correlations are plotted as a function of the normalized singular values s ̃ . The experimental data are represented by the blue dots. The analytical prediction of Eq. ( 4 ) using the experimental TMs and random matrix theory (RMT) is shown with the black dotted line, and the simulations are shown with the orange lines. Experimental data are averaged over four realizations of the medium.

Impact of the relative phase α between the TMs on the field correlations. (a) Simulation using 1024 × 1024 random matrices. Plot of the real part of the correlation for many values of α for phase and amplitude control (solid line) and phase-only control (dotted line). The data are averaged over four matrix realizations. (b) Experimental result of two-wavelength correlations for α = 0 (brown), α = π (purple), and blank input pattern (dotted black). TMs are measured for N CCD = 225 and N SLM ≈ 550 , the input vector is v max , and the data are averaged over four realizations of the medium. (c) Imaginary part of the correlations as a function of the real part for a set of values of α for the same experiment as in (b). The central black dot corresponds to the blank input pattern.

Field correlation for three distinct delays in the pulse. Measurement of the TMs, calculation of the SVD of ( T 1 + T 2 + T 3 ) and measurement of the temporal field correlation displayed with a 2D correlation plot. The data are averaged over four realizations of the medium.

Experimental observation of cross-effects. (a), (b) Time to frequency: measurement of two time-gated TMs at t 1 = 0.9 p s and t 2 = 1.7 p s for observing the spectral variations when displaying v max and tuning the wavelength. The expected period of the modulation is δ λ = λ 0 2 / ( c δ t ) = 2.7 n m . (a) 2D correlation plot where (b) represents the amplitude modulation A 1 of the singular vector divided by the amplitude A ref when sending a blank SLM pattern. The gray vertical dashed lines illustrate the expected spacing of the peaks. (c), (d) Frequency to time: measurement of two monochromatic TMs at λ 1 = 805.5 n m and λ 2 = 810.5 n m and for temporal field control when the sample is illuminated by pulses. The expected period of the modulation is δ t = λ 0 2 / ( c δ λ ) = 0.4 p s (see vertical dashed lines). (c) 2D correlation plot where (d) represents the amplitude modulation (the black dotted line corresponds to the reference amplitude). In both cases (frequency to time and time to frequency) the TMs are measured with N SLM ≈ 2180 and N CCD = 225 with the data being averaged over four realizations of the medium. (e), (f) Extension of the correlations by varying different parameters. Two TMs with N SLM ≈ 2220 and N CCD = 225 are measured; one is time-gated and one is acquired in monochromatic illumination. 2D correlation plot for (e) a temporal scan and (f) a monochromatic scan when displaying v max . The effect being weaker than for the observations in (a) and (b), the data presented are averaged over eight realizations of the medium.

Schematic of the experimental setup. The light delivered by a laser (MaiTai HP, Spectra Physics) is split into two paths by a polarizing beam splitter (PBS). In one path, the wavefront is modulated by a reflective phase-only SLM (HSP512L-1064, Meadowlarks) and passes through a layer of TiO 2 (transmittance of ∼ 0.16 , suspended on a glass slide). The second path is a controlled delay line. The light from both arms is recombined on a beam splitter (BS) which is imaged on a CCD camera (Manta, G-046, Allied Vision). A polarizer (P) located before the camera selects the desired polarization.

Correlations induced by intensity variations. The TMs are of size 256 × 256 and sampled every 0.1-time unit (a), (b) or 0.03 (c), (d). (a) Field correlations between t = 0 and other times for a random input (blue) and the singular vector associated with the largest singular value of the TM measured at t = 0 (first SVD, red). (b) Total intensity for the same data as in (a). (c) Field correlations for a random input (blue), the singular vector associated with the largest singular value (red), and an artificial random input having the same time evolution as the TMs (dashed yellow). (d) Intensity for the same data as in (c). The data are averaged over 20 realizations of the disorder (a), (b) and 10 realizations (c), (d).

Evolution of the appearance of the correlation plot when the delay time between the two measured time-gated TMs ( N CCD = 225 and N SLM ≈ 680 ) is modified from 0.4 p s (a) to 3.2 p s (d) while keeping the same central position. The correlation peak appears at a fixed t 0 but with a | δ t | that varies with the relative position of the time-gated TMs. The full correlation is only plotted in (b), whereas on the other graphs, only the area of the dashed red rectangle is shown. The data are not averaged.

Importance of the SVD terms coupling the two TMs. (a) SVD of ( T 1 + T 2 ) and (b) coherent sum of the phase masks obtained from the SVD of ( T 1 ) and the SVD of ( T 2 ) performed separately. The top parts represent the pulse shape in both cases. The intensity-induced correlations are visible on the 2D correlation plot at the bottom. No further correlations are present in the coherent sum case (b) whereas one appears for | δ t | = 0.8 p s in (a). TMs are measured N CCD = 225 and N SLM ≈ 570 . Data averaged over four realizations of the medium.

Impact of α on the frequency-to time-cross effect. The bottom plot represents the shape of the pulse for α = 0. The top part represents the tracking of the maxima of the pulse while varying α : the maxima are shifted. The data come from the same experiment as in Fig.  5 , thus averaged over four realizations of the medium.

Spatial field correlation. (a) Unbinned image of the speckle. The TMs are measured on the left ( R 1 ) and central ( R 2 ) parts for λ = 808 n m ,   N CCD = 225 , and N SLM ≈ 610 . (b) Same speckle image but binned so that one pixel maps one speckle grain. (c) Correlation of the left ROI ( R 1 ) to all the other positions with a moving window. An increase in correlation is observed when the moving window reaches the position where the other TM was measured. Data averaged over four realizations of the medium.

Comparison of different methods for correlating fields. (a) The absolute value of the correlation is plotted as a function of the input vector number (ordered by decreasing the absolute value of the singular/eigenvalue). The simulation is performed with TMs of size 1000 × 1000 . (b) Ratio of the total transmitted intensities for the same data as in (a).

Simulation of field correlation for multimode fibers. Real part (blue dots) and absolute value (orange dots) of the correlations when summing two unitary TMs. The analytical prediction of Eq. ( G3 ) is presented by the black dashed line. The horizontal black dashed line represents the mean correlation for a random input vector, and the gray-shaded area is its standard deviation. The data are not averaged over several realizations.

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Proof-of-concept study demonstrates novel strategy to develop liver-targeting chimeras for disease treatment

by Liu Jia, Chinese Academy of Sciences

Liver cancer ranks as the fourth most common cancer and the second leading cause of cancer-related deaths in China, with hepatocellular carcinoma (HCC) being the most prevalent type. Current treatments for liver cancer encounter several significant challenges, including limited target availability, severe side effects, low response rates, and the emergence of acquired drug resistance.

Recent advances in proteolysis-targeting chimera (PROTAC) technology offer promising improvements in drug efficacy through its unique catalytic protein degradation mechanism. However, conventional PROTACs have limitations, such as inadequate tissue targeting, the need for substantial efforts to enhance bioavailability, and the specific formulations required due to poor water solubility.

In a study published in the Journal of Controlled Release , a research team led by Prof. Zhang Xuan from the Shanghai Institute of Materia Medica (SIMM) of the Chinese Academy of Sciences (CAS), and Prof. He Yonghan from the Kunming Institute of Zoology of CAS, introduced a novel class of protein degraders known as liver-targeting chimeras (LIVTACs).

These agents were designed to precisely degrade target proteins within the liver with their anticancer efficacy and preliminary safety profile validated in HCC animal models.

Bromodomain and extra-terminal (BET) proteins are closely linked to the progression of HCC, and several BET inhibitors are currently undergoing clinical trials. However, these inhibitors often suffer from "on-target, off-tissue" toxicities, such as thrombocytopenia, which limits their efficacy and safety.

In this proof-of-concept study, the researchers exploited the high expression of asialoglycoprotein receptors (ASGPR) in liver parenchymal cells by strategically conjugating ASGPR ligands with a BET degrader using a CTB-cleavable linker. This approach enabled precise cellular uptake and subsequent release of active PROTAC degraders within the liver.

XZ1606, the representative LIVTAC, demonstrated exceptional efficacy in degrading BRD4 protein and exhibited strong antiproliferative activity in vitro. Mechanistic studies revealed that the cellular activity largely depends on ASGPR expression, suggesting the potential for an improved therapeutic window.

In vivo experiments further confirmed the therapeutic potential of XZ1606. In Huh7 xenograft mouse models, XZ1606 exhibited remarkable antitumor activity, significantly reducing tumor size in the treatment group.

Additionally, the combination therapy of XZ1606 with sorafenib resulted in long-term tumor growth suppression and significantly extended the overall survival of the tumor-bearing mice. Notably, this combination therapy did not exhibit the platelet toxicity commonly associated with traditional BET inhibitors, underscoring XZ1606's favorable safety profile.

This study shows that LIVTAC provides a targeted solution by precisely focusing on liver cells , thereby minimizing side effects. It establishes LIVTAC as a promising therapeutic approach for HCC, and highlights its potential as a versatile platform for addressing a wide range of liver diseases.

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USDA Invests Nearly $121M in Specialty Crops Research and Organic Agriculture Production

WASHINGTON, Sept. 10, 2024 – The U.S. Department of Agriculture today announced an investment of nearly $121 million to advance research and Extension activities that aim to solve key challenges facing specialty crop and organic agriculture producers. The investment includes $70.4 million to support specialty crop production research across the United States and $50.5 million to support farmers and ranchers who grow and market high-quality organic food, fiber and organic products.

Specialty crops are defined in the Farm Bill as fruits and vegetables, tree nuts, dried fruits, and horticulture and nursery crops, including floriculture. This investment is part of the National Institute of Food and Agriculture’s (NIFA) Specialty Crop Research Initiative .

“We know specialty and organic crops add nutrition to our diets and value to sustainable agriculture systems,” said Dr. Chavonda Jacobs-Young, USDA Chief Scientist and Under Secretary for Research, Education and Economics. “These crops also play a vital role preserving cultural heritage and enhancing economic opportunities across local, regional and global food systems, making them great competitive funding investments that target some of the most difficult challenges facing specialty crop and organic producers nationwide.”

NIFA's specialty crops production investment today builds on USDA’s recently announced $82.3 million in grant funding through the Agricultural Marketing Service to enhance the competitiveness of specialty crops and support the industry’s producers. The funding was awarded through USDA’s Specialty Crop Block Grant Program (SCBGP) and the Specialty Crop Multi-State Grant (SCMP) Program . From market development to consumer education to research, these programs expand markets and increase competitiveness of the specialty crop industry and increase access to specialty crops for consumers.

Examples of the 17 projects funded by NIFA’s Specialty Crop Research Initiative include:

• North Carolina State University: Manual labor costs are significant in horticulture, including nursery crop production. A team of researchers will develop sustainable solutions for labor, efficiency, automation and production in the nursery industry. ($9.8 million)
• Washington State University: Apple and pear crops are increasingly susceptible to devastating losses due to extreme temperatures driven by climate change. To address this challenge, researchers will develop mitigation strategies for current cultivars and knowledge to quickly assess new cultivars’ suitability for future climate conditions. ($6.7 million)

NIFA’s $50.5 million investment in 30 organic agriculture projects is part of NIFA’s Organic Agriculture Program , which includes the Organic Agriculture Research and Extension Initiative (OREI) and the Organic Transitions Program. OREI projects fund research, education and Extension projects to improve yields, quality and profitability for producers and processors who have adopted organic standards. NIFA-funded Organic Transitions Program projects focus on research, education and Extension efforts to help existing and transitioning organic livestock and crop producers adopt organic practices and improve their market competitiveness.

“Organic agriculture plays a crucial role in promoting sustainable and healthy food systems that benefit people and the planet,” said USDA NIFA Director Dr. Manjit Misra. “NIFA’s investments in organic research and Extension programs help ensure farmers can meet growing demand for organic products, which provide valuable economic opportunities for growers and more choices for consumers.”

Examples of the 23 projects funded by NIFA’s OREI grants include:

• Pennsylvania State University: Understanding the links between integrated crop management practices and certain food- and feed-quality endpoints is necessary for identifying market constraints and opportunities for small grain sequences within reduced-tillage organic grain systems. This integrated research and Extension project aims to improve the productivity and market potential of spring- and fall-sown organic small grains to increase ecological and economic resilience of organic grain production systems within Pennsylvania and the Northeast United States. ($1.9 million)
• The Organic Center for Education and Promotion: There is a critical lack of racial diversity across the agricultural sector and the organic industry, especially apparent in the population of organic certifiers, organic inspectors, and in organizations and universities staffs who provide much of the nation's technical assistance and educational programming in agriculture. This workforce development project focuses on jumpstarting participation and motivation for a diverse representation in future organic leadership that helps make the organic sector more inclusive, equitable and just. ($705,000)

Examples of the 7 projects funded under NIFA’s Organic Transitions Program include:

• University of Wisconsin: Transitioning to organic farming in Wisconsin requires developing tailored soil health management practices guidelines to help organic farmers improve nutrient-use efficiency, increase crop-yield potential and mitigate climate-change impacts like drought. This research project seeks to leverage a statewide soil health dataset, enhanced by new field observations, remote sensing data and advanced machine learning models, to create a web tool offering region- and field-specific guidelines to assist organic grain farmers manage soil health and support climate-resilient farming. ($997,000)
• Michigan State University: Organic tree fruit production east of the Mississippi river will not be sustainable without effective management of bacterial diseases including fire blight, bacterial canker and bacterial spot. Bacteriophages (phages) represent a promising tool for managing bacterial plant diseases; however, phages have not been commercially developed mainly due to reduced and inconsistent efficacy. Scientists will investigate the phage-disease dynamics on apple and cherry flowers for fire blight on apple trees and bacterial canker on cherry trees. ($1 million)

USDA touches the lives of all Americans each day in so many positive ways. In the Biden-Harris Administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to safe, healthy, and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit www.usda.gov .

USDA is an equal opportunity provider, employer, and lender.