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OTHER TYPES OF BUSINESS RESEARCH

In addition to marketing research, other forms of business research include:

  • Market research is broader in scope and examines all aspects of a business environment. It asks questions about Competitor s, Market Structure , government regulations, economic trends, technological advances, and numerous other factors that make up the business environment. (See Environmental Scanning .) Sometimes the term refers more particularly to the financial analysis of companies, Industries , or Sector s. In this case, financial analysts usually carry out the research and provide the results to investment advisors and potential investors.


  • Product research - This looks at what Products can be produced with available technology, and what new product innovations near-future technology can develop. (see New Product Development )


  • Advertising research - This attempts to assess the likely impact of an Advertising campaign in advance, and also measure the success of a recent campaign..



TYPES OF MARKETING RESEARCH


Marketing research techniques come in many forms, including:
  • test marketing - a small-scale product launch used to determine the likely acceptance of the product when it is introduced into a wider market


  • Concept Testing - to test the acceptance of a concept by target consumers


  • Mystery Shopping - An employee or representative of the market research firm anonymously contacts a salesperson and indicates he or she is shopping for a product. The shopper then records the entire experience. This method is often used for quality control or for researching competitors' products.


  • store audit - to measure the sales of a product or product line at a statistically selected store sample in order to determine Market Share , or to determine whether a retail store provides adequate service


  • Demand estimation - to determine the approximate level of demand for the product


  • sales forecasting - to determine the expected level of sales given the level of demand


  • customer satisfaction studies - exit interviews or surveys that determine a customer's level of satisfaction with the quality of the transaction



  • Price Elasticity testing - to determine how sensitive customers are to price changes






  • Brand Equity research - how favourably do consumers view the brand?


  • Advertising and Promotion research - how effective are ads - do potential customers recall the ad, understand the message, and does the ad influence consumer purchasing behaviour?



All of these forms of marketing research can be classified as either ''problem-identification research'' or as ''problem-solving research''.

A similar distinction exists between ''exploratory research'' and ''conclusive research''. Exploratory research provides insights into and comprehension of an issue or situation. It should draw definitive conclusions only with extreme caution. '''Conclusive research''' draws conclusions: the results of the study can be generalized to the whole population.

Both exploratory and conclusive research exemplify ''primary research''. A company collects primary research for its own purposes. This contrasts with '''secondary research''': research published previously and usually by someone else. Secondary research costs far less than primary research, but seldom comes in a form that exactly meets the needs of the researcher.


MARKETING RESEARCH METHODS

Methodologically, marketing research uses four types of research designs, namely:
  • Qualitative Marketing Research - generally used for exploratory purposes - small number of respondents - not generalizable to the whole population - statistical significance and confidence not calculated - examples include Focus Group s, depth interviews, and projective techniques

  • Quantitative Marketing Research - generally used to draw conclusions - tests a specific Hypothesis - uses random Sampling techniques so as to infer from the sample to the population - involves a large number of respondents - examples include Surveys and Questionnaires

  • Observational Techniques - the researcher observes social phenomena in their natural setting - observations can occur '''cross-sectionally''' (observations made at one time) or '''longitudinally''' (observations occur over several time-periods) - examples include product-use analysis and computer cookie traces

  • Experimental Techniques - the researcher creates a quasi-artificial environment to try to control spurious factors, then manipulates at least one of the variables - examples include purchase laboratories and test markets

  • Researchers often use more than one research design. They may start with secondary research to get background information, then conduct a focus group (qualitative research design) to explore the issues. Finally they might do a full nation-wide survey (quantitative research design) in order to devise specific recommendations for the client. The unicist approach integrates the rational/functional aspects of market behavior, with the psychological aspects and the conceptual structure of the consumer.



SOME COMMONLY USED MARKETING RESEARCH TERMS

Many of these techniques resemble those used in political polling and social science research. Meta-analysis (also called the Schmidt-Hunter technique) refers to a statistical method of combining data from multiple studies or from several types of studies. '''Conceptualization''' means the process of converting vague mental images into definable concepts. '''Operationalization''' is the process of converting concepts into specific observable behaviours that a researcher can measure. '''Precision''' refers to the exactness of any given measure. ''' Reliability ''' refers to the likelihood that a given operationalized construct will yield the same results if re-measured. ''' Validity ''' refers to the extent to which a measure provides data that captures the meaning of the operationalized construct as defined in the study. It asks, “Are we measuring what we intended to measure?”

Applied research sets out to prove a specific hypothesis of value to the clients paying for the research. For example, a cigarette company might commission research that attempts to show that cigarettes are good for one's health. Many researchers have ethical misgivings about doing applied research.

Sugging (or Selling Under the Guise of market research) forms a sales technique in which sales people pretend to conduct marketing research, but with the real purpose of obtaining buyer motivation and buyer decision-making information to be used in a subsequent sales call.

Frugging comprises the practice of soliciting funds under the pretense of being a research Organization .


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