Marketing research is the process of defining a marketing problem and opportunity, systematically collecting and analyzing information, and recommending actions.

Basic Research - Research conducted to expand the boundaries of knowledge about general issues that affect many different companies.  

Applied Research - Research undertaken to answer questions about issues that are company specific.

Before - Reduces risks associated with strategic planning and future marketing actions.

During - Enables an organization to monitor and control the impact of its marketing actions.  

After - Provides insight into why a marketing action led to a particular result.

• Customers are a suspect data source
• Measurement tools aren’t error free
• We can’t predict the future with 100% certainty
• There is no magic formula in marketing

• Define the problem
• Develop the research plan
• Collect relevant information
• Develop findings
• Take marketing actions

A sampling method refers to the process by which you choose a subset.

Advantages Disadvantages

statistical interference; time consuming

reduce bias expensive

faster to develop greater chance of

less expensive selection bias

Secondary data are facts and figures previously collected for another purpose, but might be useful for the current problem.

Advantage? It’s often cheaper and saves time. However, the data may be outdated, or may not fit the particular research problem you’re interested in.

Primary data are newly collected facts and figures gathered specifically for the problem under investigation.  

Advantage?  While it’s time consuming and costly, you can gather the exact information you need.

Observing behavior - The process of recording the behavioral patterns of people, objects, and occurrences.  

Mechanical includes “people meter,” click analysis, and foot traffic measurement.  

Visible may take the form of participant observation (ethnographic) or actual purchases.  

Hidden includes one-way mirrors, mystery shoppers, and hidden cameras.

Market segmentation is the process of dividing a market into groups of similar customers and selecting the most appropriate group (or groups) for the organization to serve.

Product differentiation refers to cases where:  

(1) A firm has two or more products that each offer unique value to customers, or  

(2) a firm uses marketing mix activities to distinguish its products from potential substitute products offered by competitors.

• Not all prospective customers have the same wants and needs.  
• Not all prospective customers will react to marketing efforts in the same way.  
• Relative to mass marketing, choosing to address one or more segments enables a more focused and personalized marketing effort.

• Mass market (Non-Segmentation)
• One Segment-One Product           
• One Segment-Multiple Products          
• Multiple Segments-One Product          
• Multiple Segments-Multiple Products          
• Mass Customization
• Customer Relationship Management

• Identify all customer groupings
• identify product groupings
• develop market-product grid and estimate market segment size
• select target markets
• take marketing actions
• develop product positioning and design marketing mix strategy

Geographic

Demographic

Geodemography

Sociocultural

Usage behavior

Purchase behavior

Psychographics

• clearly identifiable and distinguishable?  
• lead to unique and tangible marketing actions (relative to a mass market approach)?  
• attractive in terms of its size and expected growth?  
• enable the firm to maximize sales relative to the costs to market to the segment?  
• fit with desired competitive positioning?  
• fit with the organization’s mission and values?

• Position on superiority of a relevant attribute    
• Position on a particular type of customer    
• Position on expertise in a particular product category 
• Position directly against a competitor’s position