Marketing research, methods and tools
Isikli E.
in
Nikolaidis A. (ed.), Baourakis G. (ed.), Isikli E. (ed.), Yercan M. (ed.).
The market for organic products in the Mediterranean region
Chania : CIHEAM
Cahiers Options Méditerranéennes; n. 61
2003
pages 83-95
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--------------------------------------------------------------------------------------------------------------------------------------------------------------------------Isikli E. Marketing research, methods and tools. In : Nikolaidis A. (ed.), Baourakis G. (ed.), Isikli E. (ed.), Y ercan M. (ed.). The market for organic products in the Mediterranean region. Chania : CIHEAM, 2003. p. 83-95 (Cahiers Options Méditerranéennes; n. 61)
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sort of dealsMarketing Research, Methods
and Tools
Emin Işikli
Department of Agricultural Economics, Faculty of Agriculture, Ege University, Turkey
1. Introduction
The main purpose of this presentation is to overview the Principles and Methods related to Marketing Research (MR), followed by Research Project Implementation, Interpretation of Findings and Drawing up of a Typical Research Report.
Subsequently, this paper will address the Parts of a Typical Marketing Research Proposal for future studies.
2. Definition of Research and the Research Process
Scientific Research can be defined, simply as “The Specification of a problem”, “Gathering, analyzing and interpreting information related with the specified problem and reporting the findings to the interested people. Thus, regarding this definition, in any scientific research, the researcher must follow the typical Research Process provided below.
3. Marketing Research and Marketing Research Process
With the same logic, Marketing Research (MR) rather briefly refers to all types of Research ac tivities conducted in the field of marketing within the similar process. Meanwhile the American Marketing Association defines MR, “as the function which links the consumer, customer and public to the marketer through information that is used to identify and define marketing op portunities and problems; refine and evaluate marketing actions, monitor marketing perform ance and improve understanding of marketing as a process”. MR specifies the information re lated to these issues, designs the methods for collecting information, manages and implements the data collection process, analyzes the data and
derives the results and finally communicates the findings and their implications (CHURCHILL, 1995, p.10).
There are important elements in this definition. MR deals with all phases of both goods and services marketing. It involves the application of research techniques to the solution of market ing problems of any sort, be they planning, problem solving, or control issues. The definition indicates that MR links the organization with its market environment.
In addition to its role in the actual collection of data and their analysis, it plays an important role for the implications of what the collected information suggests. Therefore for MR to be ef fective it should be relevant, timely, efficient, accurate and ethical (AAKER, et all, 1999, p.19). Shortly, Market RESEARCH examines the product(s), the consumers, prices and conditions of price determination, the market place, market structure and market size. Market Research in volves the investigation and identification of sales conditions and the potential of a given prod uct, in relation to a given profile of consumers, in a defined area.
MR, on the other hand, involves the determination of the marketing strategy to enter the market that had been previously examined. We have to establish a marketing policy based, on the infor mation collected in market research. For example,
What will be the prices of our products?
How shall we organise marketing channels?
What marketing policies are followed by marketing?
These questions could be answered by the marketing policy. Meanwhile, in most cases market and marketing research are interrelated and being used interchangeably (ERKAN,1994). Indeed, MR displays great importance throughout the entire marketing process and more particularly in the marketing management process(Figure 2).
If we compare marketing to a long TRAIN with multiple compartments, the MR would justly claim the dual roles of the engine that powers the train and the links that connect the individual compartments to form a cohesive functional unit. In other words, MR is pervasive, The BRAIN and the BRAWN of any marketing organisation(AAKER, et all, 1999).
In order to address all the issues or functions noted above, all the data must first be systemati cally gat
hered, recorded and analysed; secondly, through the interpretation of these data one should prepare the Research Report. These tasks are logically viewed as a sequence called the MARKETING RESEARCH PROCESS, which consists of the following steps:
1. FORMULATE THE PROBLEM
2. DETERMINE RESEARCH DESIGN AND DATA SOURCES
3. DESIGN DATA COLLECTION METHODS AND FORMS
4. DESIGN SAMPLE AND COLLECT DATA
5. ANALYZE AND INTERPRET DATA
6. PREPARE THE RESEARCH REPORT
Although, these steps usually occur in this general order, the development of research purpose that links the research to decision making, and the formulation of research objectives that serves to guide the research, are unquestionably the most important steps in the research process.
If the steps taken are correct, the research stands a good chance of being both useful and appro priate. If they are bypassed or wrong, the research will then almost surely be wasteful and ir relevant.
Therefore, these aspects of MR will be considered below, in order to explain the process in as much detail as possible. The steps listed here, of course, are interrelated with each other.
I. Planning a. What kinds of people buy our products? Where do they live? How much do
they earn? How many of them are there?
b. Are the markets for our products increasing or decreasing? Are there promising
markets that we have not, yet reached?
c. Are the channels of distribution for our products changing? Are new types of
marketing institutions likely to evolve?
II. Problem Solving a. Product
1. Which of various product designs is likely to be the most successful?
2. What kind of packaging should we use?
b. Price
1. What price should we charge for our products?
2. As production costs decline, should we lower our prices or try to develop
higher quality products?
c. Place
1. Where, and by whom, should our products be sold?
2. What kinds of incentives should we offer the trade to push our products?
d. Promotion
1. How much should we spend on promotion? How should it be allocated to
products and to geographic areas?
2. What combination of media - newspapers, radio, television, magazines -
should we use?
III. Control a. What is our market share overall? In each geographic area? By each customer
type?
b. Are customers satisfied with our products? How is our record for service? Are
there many returns?
c. How does the public perceive our company? What is our reputation with the
trade?
Source: CHURCHILL, 1995, P.9.
Let us look at each step very briefly. In fact, each step involves numerous issues rather than a single d
ecision. Table 2 lists some typical questions that inevitably come about in each stage. 4. General Principles of Marketing Research
One of the more valuable roles that MR can play is to determine the definition of the problem to be solved. Only when the problem is carefully and precisely defined, can research be designed to provide pertinent information. Part of the process of problem definition includes specifying the objectives of the research project that might be undertaken. Each project should have one or more objectives.
“A problem well defined is half solved”, this is especially true in MR, for it is only when the problem has been clearly defined and the objectives of research precisely stated that research can be designed properly (CHURCHILL, 1995, p.87).
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