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Marketing Research and Information Systems | Chapter 4 91

marketers to make these causal deductions about relationships between variables. Such
experimentation requires that an independent variable (Variable X, one that is not influenced
by or acted on by other variables) be manipulated and the resulting changes to a dependent vari-
able (Variable Y, one that is influenced by the dependent variable) be measured. Manipulation
of the dependent variable while controlling for other variables is what makes experimental
research different from descriptive research. In this way, researchers can determine causality,
which is highly important when developing marketing strategy.

THE MARKETING RESEARCH PROCESS LO 3 . Describe the basic steps
in conducting marketing
research.
To maintain the control needed to obtain accurate information, a firm should approach mar-
keting research as a process with logical steps: (1) locating and defining problems or issues,
(2) designing the research project, (3) collecting data, (4) interpreting research findings, and
(5) reporting research findings (see Figure 4.1 ). These steps should be viewed as adaptable
and as part of an overall approach to conducting research, rather than as a rigid set of rules.
Marketers must consider each step and determine how they can be adapted to resolve the
issues at hand.

Locating and Defining Problems or
Research Issues
The first step in launching a research study is defining the problem or issue. This will encour-
age researchers to focus on the true nature and boundaries of a situation as it relates to mar-
keting strategy or implementation. The first sign of a problem is typically a departure from
normal functioning, such as the failure to meet an objective that was previously attainable.
If a corporation’s objective is a 12 percent sales increase and there was only a 6 percent
increase under the current marketing strategy, marketers should analyze this discrepancy to
adapt the marketing strategy to be more effective. Declining sales, increasing expenses, and
decreasing profits all signal problems for a firm. Conversely, a dramatic increase in sales
or another positive event should prompt marketers to research the reasons for the change in
order to leverage opportunities.
Marketing research often focuses on identifying and defining market opportunities
or changes in the environment. When a firm discovers a market opportunity, it should
conduct research to understand the situation and craft an appropriate marketing strategy.
Customer relationship management (CRM) is essential to attracting and retaining loyal
customers, and also requires research to be effective. CRM involves taking advantage
of opportunities in the marketing environment. It is frequently based on an analysis of
existing customers and their needs and wants because understanding existing loyal cus-
tomers helps a firm design a marketing strategy to maintain them while reaching out to
new customers.
In order to identify and define an issue correctly, marketers must be careful not to be
distracted by superficial symptoms. Addressing symptoms of the problem will not help

Figure 4.1 The Five Steps of the Marketing Research Process

Locating and Designing Interpreting Reporting
1 defining issues 2 the research 3 Collecting 4 research 5 research
or problems project data findings findings

From Pride/Ferrell, Marketing 2014, 17E. © 2014 Cengage Learning.

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