CHAPTER 1

The Managerial Value of Marketing Research

• Marketing research is crucial for identifying and evaluating opportunities, analyzing customer segments, choosing target markets, planning and executing the marketing mix, and assessing market performance.

• Marketing research is vital for understanding consumer behaviour and market trends, which helps organizations make informed decisions about their products, pricing, promotion, and distribution.

Basic Research

• Basic research expands knowledge and uncovers new insights about concepts.
• It may not be directly problem-focused.
• An example is verifying the validity of a particular theory.

Defining the Problem

• The research process starts with identifying the problem or opportunity.
• Often, only symptoms of the problem are visible, like declining sales, but the root cause may not be clear.
• A clear problem definition allows researchers to establish specific research objectives.

Global Marketing Research

• Marketing research has become increasingly global as companies expand their operations internationally.
• Businesses operating in foreign markets need to understand the cultural specificities, customer behaviour, and market dynamics to tailor their offerings effectively.

Communication Technologies

• Advances in technology have transformed the way people connect, share, and acquire information, impacting the essence of marketing research.
• The availability of data through various online channels presents both opportunities and challenges for marketing research, including issues of data privacy and security.

Stages in the Research Process

• The research process involves a series of stages, starting with problem definition and culminating in the preparation of a report with findings and recommendations.
• The stages include:
  • Defining the problem
  • Planning the research design
  • Planning the sample
  • Collecting data
  • Analyzing data
  • Formulating conclusions and preparing the report

Casual Research Techniques

• Experiments are used to determine cause-and-effect relationships.
• Sampling techniques employed include:
  • Probability sampling: Every member of the population has a known and non-zero chance of being selected.
  • Non-probability sampling: Members of the population are chosen based on specific criteria determined by the researchers.

Gathering Data

• Data can be collected by humans or recorded automatically using machines.
• Various data collection methods are employed, ranging from surveys and interviews to focus groups, observations, and experiments.

The Research Program Strategy

• This is a comprehensive plan outlining the research projects to be conducted over time.
• Marketing research is not a one-off activity but rather an ongoing process.
• Different research methodologies may be used, including exploratory research, descriptive research, and causal research, depending on the specific goals of the investigation.

Increased Globalization

• Marketing research needs to adapt to the increasing globalisation of businesses.
• Companies operating in multiple countries must understand and account for the cultural and market nuances in each region.

Statement of Research Objectives

• After defining the problem, researchers must establish clear and testable research objectives.
• A well-formulated research hypothesis is a statement that can be either supported or refuted by empirical data.

Planning the Research Design

• This involves creating a master plan that specifies the methods and procedures for acquiring and analyzing information.
• The research design serves as a framework for the research plan of action.

This quiz delves into the significance of marketing research for effective decision-making in businesses. It covers the process of defining problems, conducting basic research, and understanding consumer behavior. Test your knowledge on identifying opportunities and strategizing the marketing mix in global markets.