Marketing research is the systematic design, collection, analysis and reporting of data and findings relevant to a specific marketing situation facing the company.” [Philip Kotler]
“the systematic gathering, recording and analyzing of all data about problems relating to the marketing of goods and services.” [The American Marketing Association]
Basic purpose of marketing research
Marketing research reduces uncertainty or error in decision-making. The information collected by conducting marketing research is used for problem solving and decision making in various areas of marketing.
Effective marketing research involves five steps shown in Figure:
Step 1: Define the Problem and Research Objectives
← This is the introductory phase of the marketing research process.
← It involves a clear and precise understanding of the problem at hand.
← It is crucial that the research team identifies, understands and defines the problem in its entire capacity, as it affects all the subsequent activities involved in the research process.
← Research teams make use of customer feedback, internal and external data reports, sales graphs, purchasing patterns, etc. to come up with an accurate problem definition.
Not all research projects can be this specific, some research is:
← Exploratory—its goal is to shed light on the real nature of the problem and to suggest possible solutions or new ideas.
← Descriptive—it seeks to ascertain certain magnitudes.
← Causal—its purpose is to test a cause-and-effect relationship.
Step 2: Develop the Research Plan
The second stage of marketing research calls for developing the most efficient plan for gathering the needed information
Data Sources. The researcher can gather secondary data, primary data, or both. • Secondary data are data that were collected for another purpose and already exist somewhere. •...