3702 Marketing Research
2018 Exam Preparation Notes and Summary . By: Dubst3phs
TOPIC 1: INTRODUCTION TO MARKETING RESEARCH
STUDY UNIT 1: THE ROLE OF MARKETING RESEARCH IN MARKETING DECISION MAKING
.1 The need for marketing information
Marketing information is crucial for the organisation if it is to
develop products and strategies that keep pace with the changing environment.
Marketing Research serves two important purposes:
• Provides the organization with information about customer demand for products and services
• Gives customers the opportunity to express their views and needs and thus influence decision making to ensure
they get the products and services that they want.
.1.1 The key roles of marketing research
➢ Descriptive research: which depicts a current situation.
➢ Diagnostic research: which diagnose the effects of a certain event in a given situation
➢ Predictive research: which is used to predict or forecast the outcomes of new strategies being developed.
.1.2 Research terminology
o Data:
o All available statistics, opinions, facts and predictions
o Information:
o Any body of facts in a format suitable for decision making
o Conclusion:
o A proposition that is arrived at after considering evidence, arguments or premises;
o Deduction:
o A form of logical reasoning that begins with a general assertion and then presents specific details
and examples in support of that generalizations
o Deductive reason is a process that proceeds from the general to the specific, from theory to
empirical data.
o Induction:
o Explanation of particular facts or instances to form a general principle. Induction argues from
specifics or data to a general conclusion
o It works in reverse to deduction by offering a number of examples and then concluding with a
general truth or principle.
o Hypotheses:
o An unproven statement or proposition about a factor r phenomenon that is of interest to the
researcher
o A null hypothesis (H0 or status quo) is tested against some alternative;
o An alternative hypothesis (Ha) indicated the direction of change if H0 is rejected.
o Theory:
o A set of systematically interrelated concepts, definitions, and propositions that are advance to
explain and predict phenomena (facts)
o Knowledge:
o A blend of information, experiences, and insights providing a framework that can be thoughtfully
applied when assessing new information or evaluating relevant situations.
.2 The definition and scope of marketing research
Defined: The function that links the consumer, customer and public to the marketer through information‐
Information is used to:
• identify and define marketing opportunities and problems;
• generate, refine, and evaluate marketing actions;
• monitor marketing performance; and
• improve understanding of marketing as a process
,.2.1 Definition of marketing research
Defined: The systematic collection, analysis and interpretation of information about all marketing problems by
means of recognized scientific methods to provide information that marketing management can use in the decision-
making process.
.2.2 Basic research versus applied research
Basic Research:
oMore general and simply aims to obtain and generate information about aspects of the marketing system.
oLittle emphasis is placed on how to use or apply this information in the marketing management process.
oThe research is not aimed at a specific organisation, but serves a broader purpose. This type of research is
based on a hypothesis and a theory.
oMost academic research published in academic journals.
Applied Research:
oAimed at helping management make better decisions about a specific aspect.
oThe research is conducted to solve a particular problem and is more specific to the organisation.
.2.3 Scientific method of marketing research
➢ Science relies on facts, logic and methodology.
➢ Non‐scientific methods rely on subjectivity, bias and personal preference or intuition.
Scientific Vs Non-Scientific methods
1. Objectivity of the researcher
a. Scientific research is based on facts and not on intuition or preconceived notions.
2. Accuracy of measurement
a. Measurement must be as accurate as possible. For example, where electronic instruments are
used for measuring.
3. Continuous and comprehensive research
a. When conducting scientific research, all aspects that can influence the results of the research are
taken into consideration.
➢ The scientific method of marketing research refers to the techniques and procedures used to investigate
marketing phenomena in order to understand them better.
➢ In scientific research, the risk is reduced through the analysis and interpretation of empirical data.
Basic steps followed by the scientific method:
conduct the
Identify a problem design a study test the hypothesis report the results
research
.2.4 Factors contributing to the development of marketing research
• Shift from a production‐oriented to a marketing– • Expansion of the production process.
oriented • Increase in discretionary buying power.
economy and management philosophy. • Increasing differentiation in supply.
• Change in the cost structure of organisations. • High cost of marketing.
• Shift in emphasis from price to non‐price • Emergence of the professional manager.
competition.
.2.5 The characteristics of good research
Good characteristics:
❖ Clearly defined research problem
❖ Detailed description
❖ Properly planned procedural design
❖ Data analysis methods reveal significance
❖ Research conclusions that are limited to findings identifies
❖
Qualities:
❖ Willingness to learn ❖ Curiosity
❖ Technical competence ❖ Ask the important questions
❖ Honesty ❖ Big picture
❖ Able to operate with incomplete information ❖ Ability to distinguish
❖ Flexibility
,.2.6 The value and limitations of marketing research
Large amounts of risk. Research assists in limiting those risks. Problems don’t solve themselves
.2.7 When is marketing research necessary
Key factors to consider:
➢ Time limits ➢ Advantages versus costs
➢ Availability of data ➢ Resources available
➢ Nature of the decision
.3 Marketing research in perspective
.3.1 The relationship between marketing research and marketing information
• Marketing information system (MIS) is a carefully developed plan for the flow of information within the
organisation.
• Comprises specific activities by certain functional departments within the organisation.
• Marketing research departments play a greater role in organisations that do not have an MIS.
.3.2 Contributions of marketing research to the decision-making process
• All modern definitions of marketing research emphasise the fact that research results are always intended
for decision making in the marketing management process.
• The task of marketing research is to provide information for decision‐making purposes.
• Marketing research and decision making are two different aspects, but they are interdependent.
• The quality of the decisions is influenced by the quality of the research.
• If the problem is not properly defined, information will be obtained but not the correct information for the
problem.
.4 Ethics and marketing research
Defined: The set of principles or rules and norms of conduct for correct behaviour
.4.1 Ethical treatment of respondents
Four general guidelines
I. Do not harm the respondent in any way III. Respondents should be willing and informed
II. Do not deceive the respondent IV. Data should be kept confidential
.4.2 Ethics and internet-based marketing
• Participation should be voluntary
• Researcher identity should be available
• Respondents must remain anonymous
• Privacy policy in place
• Security of data must be maintained
• Validity and reliability must be discoed to public
• Respondents should not receive unsolicited emails or any further communication
Ethical codes and polices:
Some general aspects that an ethics code or policy would address include the following:
▪ Integrity ‐ refers to the soundness of the researcher’s moral behaviour.
▪ Honesty ‐ the researcher must be truthful, upright and fair in the research process.
▪ Human protection ‐ when using individual participants for the research, it is important that they are not
harmed in any way.
▪ Animal care ‐ research involving animals should be done in a careful, respectful manner.
▪ Legality ‐ researchers involved must at all times obey the relevant laws.
▪ Non‐discrimination ‐ researchers must be sure not to discriminate in any way or form.
▪ Social responsibility ‐ researchers should promote the social wellness of society.
▪ Confidentiality ‐ important records or documents should be kept confidential.
The three core ethical principles that guide the research process are:
I. Respect ‐ it is important to be considerate of those participating in the research. Individuals who will be
part of the research should provide their full consent.
II. Welfare ‐ refers to the health, happiness and general well‐being of an individual and includes their physical,
social and economic conditions.
III. Justice ‐ refers to the quality of being fair and equitable in the way the researcher treats all the individuals
participating in the research.
, Standard procedure for ethical practice
1. Correct purpose
2. Objectivity
3. Misrepresentation
4. Confidentiality
5. Fault conclusions
There are different types of sponsor confidentiality:
▪ Sponsor non‐disclosure‐ An outside research firm is hired to conduct the research.
▪ Purpose non‐disclosure ‐ The sponsor may be conducting research for a specific purpose, and disclosure at
the time may affect the sponsor negatively.
▪ Findings non‐disclosure ‐ The sponsor can request that the research findings be kept confidential.
The following ethical issues concern the participant:
▪ Deception ‐ Researcher knowingly providing participants with incorrect information.
▪ Informed consent ‐ Researcher must request permission from the participant.
▪ Access ‐ Researchers may need specific individuals either to interview them.
▪ Debriefing ‐ Researchers explaining any form of deception that might occur.
▪ Privacy ‐ The participant has the right to privacy.
▪ Confidentiality ‐ Ensuring anonymity in the research report could be difficult.
▪ Conflict ‐ Anxiety and animosity can occur during the interview process.
Informed consent and anonymity
▪ The participants must be given a document explaining:
• the research objectives;
• the role of the participant in the research;
• how the confidentiality of the participant will be ensured;
• potential risks and any harm to the participant; and
• how the researcher intends to minimise this risk.
▪ The participant must provide their consent to participate in them research by signing this document.
▪ The participant must not be pressured into giving consent or participating in the research.
▪ The anonymity of the participant must also be ensured.
Objectivity
• It is important to consider the way in which data is collected and recorded.
• Each method of collecting data will affect the objectivity of the research indifferent ways.
• Researchers must be aware of all the possible outcomes and errors that could occur so that they are prepared to
handle the situation in an ethical manner.
• The researcher can sometimes affect the outcomes of the research unintentionally.
STUDY UNIT 2: MARKETING INFORMATION SYSTEMS
2.1 MIS
Defined: Marketing information System can be defined as a set of inter‐related components that collect (or
retrieve), process, store and distribute information to support decision making and control in an organisation.
Value of Marketing information:
o Relevant (meaningful) ‐ be able to use the information to make decisions about target markets.
o Useful ‐ made available in a form that the user can understand and apply.
o Timeous ‐ information must be available on a continual basis.
o Accurate (valid) ‐ information must reflect the realities of the situation.
o Adequate ‐ Sufficient qualitative and quantitative information must be available.
o Available ‐ information should be in a form that is easy to access when required.
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