An Overview of Marketing Research

A definition of Marketing research

Marketing research is the systematic and objective search for, and analysis of, information relevant to the identification and solution of any problem in the field of marketing.

The market research brief

the purpose of the research
 the objectives stated in a clear, concise, attainable, measurable and quantifiable way
 a time horizon
 a resource allocation, including the budget and facilities
 a reporting period.

The purpose of the research

It is not at all unusual for marketing managers to neglect to tell the researcher the precise purpose of the research. They often do not appreciate the need to do so. Instead, they simply state what they think they need to know. This is not quite the same thing. To appreciate the difference consider the case of the marketing research agency which was contacted by the International Coffee Organization (ICO) and asked to carry out a survey of young people in the age group 15-24. They wanted information on the coffee drinking habits of these young people: how much coffee they drank, at what times of day, with meals or between meals, instant or ground coffee, which other beverages they preferred and so on. In response, the research organization developed a set of wide-ranging proposals which included taking a large random sample of young people.

In fact much of the information was interesting rather than important. Important information is that information which directly assists in making decisions and the ICO had not told the research company the purpose of the research. The initial reason for the study had been a suspicion, on the part of the ICO, that an increasing percentage of young people were consuming beverages other than coffee, particularly soft drinks, and simply never developed the coffee drinking habit. Had this been explained to the research company then it is likely that their proposals would have been radically different. To begin with, the sample would have been composed of 15-24 year old non-coffee drinkers rather than a random sample of all 15-24 year olds. Second, the focus would have been non-coffee drinking habits rather than coffee drinking habits.

Unless the purpose of the research is stated in unambiguous terms it is difficult for the marketing researcher to translate the decision-maker's problem into a research problem and study design.

Clear, concise, attainable, measurable and quantifiable objectives

Suppose that the marketing manager states that he needs to know the potential market for a new product his/her organization has been developing. At first glance this might appear to meet all of the requirements of being clear, concise, attainable, measurable and quantifiable. In practice it would possibly meet only one of these criteria, i.e. it is concise!

Here is another case to be considered. A small engineering firm had purchased a prototype tree-lifter from a private research company. This machine was suitable for lifting semi-mature trees, complete with root-ball intact, and transplanting such trees in another location. It was thought to have potential in certain types of tree nurseries and plantations.

The problem with the objective is that the marketing manager needs to know the potential market for the new tree-lifter is that it is not attainable. One could find out how many tree-lifters were currently being sold but this is not the same as the objective set by the marketing manager.

The need to set a time horizon for marketing research

Inevitably there are deadlines which the marketing research activity must fit and these must be stated clearly at the outset of the research. As was said earlier, because of time pressures, management is often seeking quick answers from marketing research. If the researcher is aware of the time constraints then this will become an overriding factor when he/she plans the research design. He or she is likely to put forward a design which is less elegant, and gives rise to less precise information but delivers the results on schedule.

A resource allocation, including the budget and facilities

There are essentially two approaches to establishing the resource allocation to a particular marketing research exercise. Management can start with the problem and work out how much it will cost to solve it. Alternatively, they can decide how much the management can afford to spend, at the time, and seek the best answer they can for the time, money and manpower allocated. In practice the decision-makers prefer the latter approach and the researchers the former. In the end, some kind of compromise develops. The researcher rarely gets all of what he/she judges is required to reach a satisfactory conclusion but if the research proposal is well thought out and persuasively presented some concessions can be obtained.

Whichever the approach to resource allocation adopted, it is imperative that the researcher is aware of the financial and other constraints within which he/she must complete the work.

A reporting period

The researcher must also know from the outset of the study the points in time when interim reports are required, if any, and the deadline for the final report. The form of interim reports should also be specified at the outset, whether verbal or written, and whether presentations are to be made to a group (nature and size of the group) or an individual.

In addition there are several characteristics of a good research brief and these are that it:

 means the same thing to all concerned

 does not ask for irrelevant information

 defines the relevant populations to be measured

 identifies the correct variables to be measured

 specifies the degree of accuracy really needed within the main results

 specifies an order of priorities when the sample has to be broken down for the purposes of analysing data for subgroups, and

 does not pre-judge the selection of research techniques and procedures.