Instructor’s Manual
Marketing Research
Applied Insight
Sixth edition
Daniel Nunan
David F. Birks
Naresh K. Malhotra
, CHAPTER ONE
Introduction to marketing research and insight
Questions
1. Describe the purpose of marketing research.
The purpose of marketing research is to generate and deliver information and insight with the
highest levels of scientific credibility and integrity. Such generation and delivery should be
conducted with awareness that decision makers are faced with a growing plethora of information,
much of which is free and of dubious quality. Within this context, marketing research should be
seen as an investment in evidence-based decision support. Researchers should provide relevant,
accurate, reliable, valid and current information in order to support sound marketing decisions.
Marketing research should help to remove uncertainty by providing relevant information about
consumers, marketing variables and the environment in which decision makers operate.
2. What kinds of decisions are made by marketing managers? How does marketing
research help in supporting these decisions?
Marketing managers make strategic and tactical decisions in the process of identifying and
satisfying customer needs. Strategic and tactical marketing decisions may cover managerial,
design and visual challenges. Marketing managers make decisions about potential opportunities
and problems, target market selection, market segmentation, planning, implementing and
controlling marketing plans. They devise the most effective ways to realise opportunities and
overcome problems. The researcher supports marketing managers by seeking to do the following:
• Describe the nature and scope of customer groups.
• Understand the nature of forces that shape customer groups.
• Understand the nature of forces that shape the marketer’s ability to satisfy targeted customer
groups.
• Test individual and interactive marketing mix variables.
• Monitor and reflect upon past successes and failures in marketing decisions.
3. What do you see as the major challenges for researchers that emerge from the
ESOMAR definition of marketing research?
The definition: Marketing research links the consumer, customer and public to the marketer
through information that is used to identify and define marketing opportunities and problems;
generate, refine and evaluate marketing actions; and to improve understanding of marketing as a
process and of the ways in which specific marketing activities can be made more effective.
5
© Pearson Education Limited 2020
, Nunan et al., Marketing Research: Applied Insight, 6e, Instructor’s Manual
The main challenge lies in how distinctive this definition is compared to the use of marketing
analytics, databases and other sources of data (such as data generated through social media) to
support marketing decision making. European Society for Opinion and Market Research
(ESOMAR) distinguishes marketing research from other competitive forms of data gathering,
primarily through the issue of the anonymity of participants. It stresses that in marketing research,
the identity of the provider of information is not disclosed. It makes a clear distinction between
marketing research and database marketing where the names and addresses of the people
contacted are to be used for individual selling, promotional, fund-raising or other non-research
purposes. The distinctions among marketing research, database marketing and social media as a
research tool are, ultimately, unclear. There is a growing amount of support given to marketing
decision makers from database and social media analyses that are not ‘participant specific’. The
challenges, therefore, lie in maintaining the ethical distinction between data capture disciplines
and in maintaining a distinctive focus that retains the scientific credibility and integrity of
marketing research.
4. How may the effective problem-identification research enhance the practice of
problem-solving research?
Marketing research can be classified as either problem-identification research or problem-
solving research. Problem-identification research is undertaken to help identify problems that are
not apparent on the surface and yet exist or are likely to arise in the future. Examples of
problem-identification research include market potential, market share, market characteristics,
sales analysis, short-range forecasting, long-range forecasting and business trends research. The
findings of problem-identification research can give a clear focus to the definition of research
questions in areas such as segmentation, product, pricing, promotions and distribution research.
For example, if in problem-identification research, the potential of a market is explored, and the
factors that could shape a new market identified – those factors could form the focus of a
problem-solving segmentation study. Problem-identification research and problem-solving
research can be conducted simultaneously, and a given marketing research project may combine
both types of research.
5. What challenges exist in trying to quantify the size and growth of the marketing
research industry on a global basis?
ESOMAR conducts an annual study to quantify the size and growth of the global marketing
research industry. They collect their data from marketing research agencies that describe and
quantify the techniques they are using and plan to use. The first challenge this approach presents
resides in who actually conducts marketing research. There is a huge amount of research that is
conducted in-house by client companies and other agencies that may support decision makers.
The second challenge lies in what counts as marketing research. Looking at Question 3 and the
distinctiveness of marketing research compared to the analyses that emerge from marketing
databases and social media research, it is fair to say that there is much overlap between data
gathering and analysis disciplines. In short, what may count as marketing research activity is not
fixed. Overcoming these challenges in an ESOMAR study would add much complexity and cost
to the exercise – and make annual comparisons more difficult.
6
© Pearson Education Limited 2020
, Nunan et al., Marketing Research: Applied Insight, 6e, Instructor’s Manual
6. Explain one way to classify marketing research suppliers and services.
Marketing research suppliers can be classified into internal suppliers and external suppliers.
An internal supplier is a marketing research department located within an organisation where
the research staff members are employees. External suppliers can be further classified into
full-service and limited-service suppliers. Full-service suppliers can be classified as syndicated
services, customised services, standardised services and market research reports and advisory
services. Limited-service suppliers can be classified as field services, coding and data entry,
analytical services, branded products, panel providers, software providers, online community
providers, online focus groups and streaming, blog and buzz mining and reporting services.
7. Describe the steps in the marketing-research process.
The steps involved in the marketing research process are as follows:
a. Problem definition. Define the marketing research problem to be addressed, to be
founded upon a combination of discussions with decision makers, interviews with experts
and analysis of readily available secondary data and intelligence.
b. Developing an approach to the problem. Develop a broad specification of how the
problem would be addressed, which involves the formulation of an objective or
theoretical approach, analytical models, research questions, hypotheses and the
identification of characteristics or factors that influence the research design.
c. Research design formulation. This is a framework for conducting the marketing research
project in the most effective manner, given available resources. The research design
specifies the details of the procedures necessary for obtaining the required information.
d. Fieldwork or data collection. Data collection involves the use of some kind of field force
who could operate in the field, as in the case of personal interviewing on a quantitative
and/or qualitative basis. Fieldwork may also be conducted from an office or with the
growth of mobile devices, from anywhere to manage stages of qualitative research and/or
online, phone or mail surveys.
e. Data integrity and analysis. Data integrity involves the editing, coding, transcription and
verification of data, and the purpose of data analysis is to derive meaning from the data
that has been collected.
f. Report preparation and presentation. The report should address the specific research
questions identified in the problem definition, describe the approach, the research design,
data collection and data analysis procedures adopted and present the results and the major
findings.
8. Explain why there may be the need for iterations between stages of the marketing-
research process.
Although the research process is laid out in a simple linear manner, this does not mean that the
researcher designs and completes one stage and then moves on to the other. The problem
7
© Pearson Education Limited 2020
Marketing Research
Applied Insight
Sixth edition
Daniel Nunan
David F. Birks
Naresh K. Malhotra
, CHAPTER ONE
Introduction to marketing research and insight
Questions
1. Describe the purpose of marketing research.
The purpose of marketing research is to generate and deliver information and insight with the
highest levels of scientific credibility and integrity. Such generation and delivery should be
conducted with awareness that decision makers are faced with a growing plethora of information,
much of which is free and of dubious quality. Within this context, marketing research should be
seen as an investment in evidence-based decision support. Researchers should provide relevant,
accurate, reliable, valid and current information in order to support sound marketing decisions.
Marketing research should help to remove uncertainty by providing relevant information about
consumers, marketing variables and the environment in which decision makers operate.
2. What kinds of decisions are made by marketing managers? How does marketing
research help in supporting these decisions?
Marketing managers make strategic and tactical decisions in the process of identifying and
satisfying customer needs. Strategic and tactical marketing decisions may cover managerial,
design and visual challenges. Marketing managers make decisions about potential opportunities
and problems, target market selection, market segmentation, planning, implementing and
controlling marketing plans. They devise the most effective ways to realise opportunities and
overcome problems. The researcher supports marketing managers by seeking to do the following:
• Describe the nature and scope of customer groups.
• Understand the nature of forces that shape customer groups.
• Understand the nature of forces that shape the marketer’s ability to satisfy targeted customer
groups.
• Test individual and interactive marketing mix variables.
• Monitor and reflect upon past successes and failures in marketing decisions.
3. What do you see as the major challenges for researchers that emerge from the
ESOMAR definition of marketing research?
The definition: Marketing research links the consumer, customer and public to the marketer
through information that is used to identify and define marketing opportunities and problems;
generate, refine and evaluate marketing actions; and to improve understanding of marketing as a
process and of the ways in which specific marketing activities can be made more effective.
5
© Pearson Education Limited 2020
, Nunan et al., Marketing Research: Applied Insight, 6e, Instructor’s Manual
The main challenge lies in how distinctive this definition is compared to the use of marketing
analytics, databases and other sources of data (such as data generated through social media) to
support marketing decision making. European Society for Opinion and Market Research
(ESOMAR) distinguishes marketing research from other competitive forms of data gathering,
primarily through the issue of the anonymity of participants. It stresses that in marketing research,
the identity of the provider of information is not disclosed. It makes a clear distinction between
marketing research and database marketing where the names and addresses of the people
contacted are to be used for individual selling, promotional, fund-raising or other non-research
purposes. The distinctions among marketing research, database marketing and social media as a
research tool are, ultimately, unclear. There is a growing amount of support given to marketing
decision makers from database and social media analyses that are not ‘participant specific’. The
challenges, therefore, lie in maintaining the ethical distinction between data capture disciplines
and in maintaining a distinctive focus that retains the scientific credibility and integrity of
marketing research.
4. How may the effective problem-identification research enhance the practice of
problem-solving research?
Marketing research can be classified as either problem-identification research or problem-
solving research. Problem-identification research is undertaken to help identify problems that are
not apparent on the surface and yet exist or are likely to arise in the future. Examples of
problem-identification research include market potential, market share, market characteristics,
sales analysis, short-range forecasting, long-range forecasting and business trends research. The
findings of problem-identification research can give a clear focus to the definition of research
questions in areas such as segmentation, product, pricing, promotions and distribution research.
For example, if in problem-identification research, the potential of a market is explored, and the
factors that could shape a new market identified – those factors could form the focus of a
problem-solving segmentation study. Problem-identification research and problem-solving
research can be conducted simultaneously, and a given marketing research project may combine
both types of research.
5. What challenges exist in trying to quantify the size and growth of the marketing
research industry on a global basis?
ESOMAR conducts an annual study to quantify the size and growth of the global marketing
research industry. They collect their data from marketing research agencies that describe and
quantify the techniques they are using and plan to use. The first challenge this approach presents
resides in who actually conducts marketing research. There is a huge amount of research that is
conducted in-house by client companies and other agencies that may support decision makers.
The second challenge lies in what counts as marketing research. Looking at Question 3 and the
distinctiveness of marketing research compared to the analyses that emerge from marketing
databases and social media research, it is fair to say that there is much overlap between data
gathering and analysis disciplines. In short, what may count as marketing research activity is not
fixed. Overcoming these challenges in an ESOMAR study would add much complexity and cost
to the exercise – and make annual comparisons more difficult.
6
© Pearson Education Limited 2020
, Nunan et al., Marketing Research: Applied Insight, 6e, Instructor’s Manual
6. Explain one way to classify marketing research suppliers and services.
Marketing research suppliers can be classified into internal suppliers and external suppliers.
An internal supplier is a marketing research department located within an organisation where
the research staff members are employees. External suppliers can be further classified into
full-service and limited-service suppliers. Full-service suppliers can be classified as syndicated
services, customised services, standardised services and market research reports and advisory
services. Limited-service suppliers can be classified as field services, coding and data entry,
analytical services, branded products, panel providers, software providers, online community
providers, online focus groups and streaming, blog and buzz mining and reporting services.
7. Describe the steps in the marketing-research process.
The steps involved in the marketing research process are as follows:
a. Problem definition. Define the marketing research problem to be addressed, to be
founded upon a combination of discussions with decision makers, interviews with experts
and analysis of readily available secondary data and intelligence.
b. Developing an approach to the problem. Develop a broad specification of how the
problem would be addressed, which involves the formulation of an objective or
theoretical approach, analytical models, research questions, hypotheses and the
identification of characteristics or factors that influence the research design.
c. Research design formulation. This is a framework for conducting the marketing research
project in the most effective manner, given available resources. The research design
specifies the details of the procedures necessary for obtaining the required information.
d. Fieldwork or data collection. Data collection involves the use of some kind of field force
who could operate in the field, as in the case of personal interviewing on a quantitative
and/or qualitative basis. Fieldwork may also be conducted from an office or with the
growth of mobile devices, from anywhere to manage stages of qualitative research and/or
online, phone or mail surveys.
e. Data integrity and analysis. Data integrity involves the editing, coding, transcription and
verification of data, and the purpose of data analysis is to derive meaning from the data
that has been collected.
f. Report preparation and presentation. The report should address the specific research
questions identified in the problem definition, describe the approach, the research design,
data collection and data analysis procedures adopted and present the results and the major
findings.
8. Explain why there may be the need for iterations between stages of the marketing-
research process.
Although the research process is laid out in a simple linear manner, this does not mean that the
researcher designs and completes one stage and then moves on to the other. The problem
7
© Pearson Education Limited 2020
