Market Research: A systematic and objective identification, collection, analysis and dissemination of results that is undertaken to improve decision making for identifying -or solving problems (opportunities) in marketing.
- MR is systematic, follows a predictable path.
- MR Project is planned and documented, has a scientific basis that data are collected and documented.
MR obtains its value from its objectivity. Companies sponsoring the research sometimes put pressure on the researcher to generate "support" for a certain desired outcome. Providing an unbiased "outsider opinion" (-objectivity) gives MR its value and the results can be trusted in making decisions.
Classification of MR
Maybe classified into
(1) problem-identification research involves going below the surcafe to identify the true underlying problem that the manager is facing. Maybe designed to estimate market potential, market share, brand or company image, market characteristics, sales analysis, short-long range forecasting, uncover new business trends.
- This type is used to assess the environment & diagnose problems.
(2) problem-solving research addresses many points such as: Segmentation, Price, Promotion, Product, Distribution. It is conducted once the problem is identified by earlier research. They go hand-in-hand and in some cases the entire MR may include both types of research.
6 Steps of MR
STEP_1: Defining the problem Purpose of the study: - "What prompted the MR?" - "What kind of decisions will be made of it?"
- Researchers accomplish prob.defn. through discussions with decision makers, interviews with industry experts, secondary data analys and focus groups research (-qualitative research).
- Once the problems is precisely defined the research may be designed and conducted properly.
STEP_2: Developing an Approach to the problem -Formulating analytical framework and models, research questions, and hypotheses ( unproven statements about a factor of of interest to the researcher).
- This process is guided just...