Chapter 4: Managing Marketing Information to Gain Customer Insights

1. Importance of Information in Gaining Insights about the Marketplace and

Customers

Information plays a vital role in helping businesses understand their customers, competitors,
and the market environment. In modern marketing, decisions based on accurate and timely
information lead to better customer satisfaction, higher profits, and sustainable growth.

🔍 1. Understanding Customer Needs and Behavior

Information helps businesses discover what customers want, how they behave, and why
they make certain choices.

 It reveals preferences, purchase patterns, income levels, and feedback.

 This allows businesses to design the right products and services.

 Bangladesh Example:
Grameenphone, a leading telecom operator, uses customer usage data to offer customized call
and data packages to rural vs. urban users. By analyzing call durations, app usage, and mobile
payment behavior, they target users more effectively.

 USA Example:
Amazon collects browsing history, purchase behavior, and review data to recommend
products. This personalized experience is a result of deep customer insight driven by
information systems.

📊 2. Identifying Market Opportunities

Market research and information analysis help firms spot unmet needs, emerging trends, or
new segments to enter.

 It guides entry into new markets or expansion of current products.

 Helps avoid risks by identifying threats early.

 Bangladesh Example:
Foodpanda Bangladesh noticed a surge in online food orders during the pandemic. Data
revealed preferences for home-cooked and healthy meals, prompting them to onboard
more home chefs and promote hygiene-focused campaigns.

 USA Example:
Starbucks uses location-based data and social listening to track beverage trends (e.g., the
growing demand for plant-based milk). They used this information to expand their non-
dairy options across US stores.

🎯 3. Effective Market Segmentation and Targeting

Information allows businesses to divide the market into segments based on demographics,
behavior, or preferences and target each one effectively.

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  Leads to better marketing strategies for different customer groups.
 Saves resources by focusing only on relevant audiences.

 Bangladesh Example:
BRAC Bank uses customer demographics and transaction data to offer SME loans. Rural
women entrepreneurs form a specific segment, and targeted financial literacy programs
and microloans are designed based on collected insights.

 USA Example:
Nike segments its market based on age, gender, sports interest, and even fitness level.
Data from the Nike Run Club app provides insight into user activity, allowing Nike to
develop niche products (e.g., for runners vs. gym-goers).

💡 4. Improving Product and Service Quality

Customer feedback, complaints, and reviews provide valuable insights into how products and
services can be improved.

 Increases customer satisfaction and loyalty.

 Reduces returns and complaints.

 Bangladesh Example:
Unilever Bangladesh uses sales data, social media feedback, and field reports to improve
ad targeting for brands like Lux and Surf Excel. They adapt messages for different
regions and festivals (like Eid or Pahela Baishakh) based on customer sentiment and
preferences.

 USA Example:
Coca-Cola in the USA uses AI to track consumer responses to ad campaigns. If a
particular ad isn't generating enough engagement on social media, they can quickly
replace or retarget it.

📈 5. Making Informed Marketing Decisions

Marketing decisions related to price, promotion, and distribution are more effective when
based on solid information.

 Prevents wasteful spending.

 Improves ROI (Return on Investment).

 Bangladesh Example:
Bkash, a mobile financial service, analyzes transaction trends to predict cash-out spikes
during Eid or salary periods. This helps them manage agent liquidity better and ensure
service availability.

 USA Example:
Walmart uses predictive analytics to forecast product demand based on weather,
holidays, and local events. For instance, they stock up on emergency items ahead of
predicted hurricanes.

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🔮 6. Forecasting and Planning

Information helps in predicting future customer behavior, market size, and sales trends.

 Enables better budgeting and inventory management.

 Helps businesses prepare for seasonal or economic changes.

✅ Example: Retailers collect sales data from past years to forecast demand during Eid or
Christmas and stock accordingly.

Bangladesh Example:

Retailers like Aarong and Yellow analyze previous years’ sales data to forecast demand for
clothing, accessories, and home decor during Ramadan and Eid. bKash uses historical
transaction data to forecast demand for cash-outs, mobile top-ups, and money transfers.

 USA Example:

Walmart analyzes years of sales, weather patterns, and real-time customer behavior to
predict what products will be in demand.

📌 Conclusion:

Information is the foundation of modern marketing. It provides deep insights into the
marketplace and customer behavior, enabling businesses to make smarter decisions, deliver
more value, and stay ahead of competitors.

Without information, marketing is just guesswork. With it, businesses can grow with
confidence and clarity.

2. Definition of the Marketing Information Ecosystem

The Marketing Information Ecosystem refers to the entire environment in which

marketing-related data is gathered, processed, analyzed, shared, and used to support
marketing decision-making. It is a network of interrelated systems, tools, people, and
processes that work together to provide timely, accurate, and relevant marketing insights.

It acts as the "nervous system" of marketing, enabling companies to:

 Understand customer behavior,

 Track market trends,
 Monitor competitors,
 Improve marketing performance.

The ecosystem is dynamic—constantly evolving due to advances in technology, changes in

customer behavior, and global market shifts.

🧩 Parts of the Marketing Information Ecosystem

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The marketing information ecosystem has five core components:

1. 📥 Internal Records System

Definition:

The Internal Records System collects data from within the organization. It includes routine
operational data such as sales transactions, inventory levels, customer profiles, and financial
data.

Key Sources:

 Billing and invoicing systems

 Customer relationship management (CRM) data
 Sales reports
 Stock and supply chain records
 Employee performance reports

Importance:

 Helps track customer purchases and preferences

 Identifies top-selling products or services
 Assists in forecasting demand and managing inventory
 Supports day-to-day marketing decisions

Example (Bangladesh): Aarong tracks sales across its outlets during the Eid season using
POS data to restock best-selling products.
Example (USA): Walmart uses real-time store sales data to monitor regional product
performance and manage supply.

2. 🌐 Marketing Intelligence System

Definition:

The Marketing Intelligence System collects external information from the marketplace to
help marketers stay informed about the competitive landscape, industry trends, and
customer attitudes.

Key Sources:

 Competitor websites and social media

 News reports and industry journals
 Government statistics
 Social media listening tools
 Retail audits and mystery shopping

Importance:

 Keeps the company aware of competitor actions

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  Identifies shifts in customer interests
 Helps detect opportunities and threats early

Example (Bangladesh): A mobile operator like Robi monitors customer reactions to new
packages offered by Grameenphone to adjust its own offers.
Example (USA): Starbucks monitors social media trends and competitor activity to introduce
new seasonal drinks.

3. 🔍 Marketing Research System

Definition:

Marketing research is a systematic process of collecting, analyzing, and interpreting

information to solve specific marketing problems or explore new opportunities.

Types of Research:

 Exploratory research (e.g., focus groups)

 Descriptive research (e.g., customer surveys)
 Causal research (e.g., experiments)

Importance:

 Provides deep, focused insights into customer attitudes, product performance, or

brand image
 Reduces uncertainty when launching new products or entering new markets
 Supports strategic marketing planning

Example (Bangladesh): A local food brand conducts surveys to understand whether

customers prefer spicy or mild snacks.
Example (USA): Apple conducts product testing and user interviews before launching a new
iPhone model.

4. 📊 Data Analytics Tools and Technologies

Definition:

These are digital tools and platforms that collect, organize, and analyze large volumes of
data to produce meaningful insights.

Tools Used:

 Google Analytics
 Tableau, Power BI (Business Intelligence dashboards)
 CRM systems like Salesforce
 AI/machine learning tools
 Data warehouses and big data platforms

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Importance:

 Enables real-time data processing

 Helps detect customer patterns and preferences
 Supports predictive analytics for demand forecasting, pricing, and personalization

Example (Bangladesh): Daraz Bangladesh uses analytics to track user behavior and
personalize its homepage offers.
Example (USA): Amazon’s recommendation engine analyzes purchase history and browsing
data to suggest products.

5. 👥 People and Decision-Makers

Definition:

These are the marketing professionals, data analysts, managers, and decision-makers
who interpret data and convert insights into strategic actions.

Their Role:

 Define what information is needed

 Select appropriate tools and methods
 Analyze and interpret data
 Make data-driven decisions
 Ensure ethical data handling

Importance:

 Human judgment is essential to understand context and apply insights effectively

 Helps align marketing actions with business goals

Example (Bangladesh): A marketing team at bKash decides to launch cashback offers based
on transaction trends interpreted from analytics reports.
Example (USA): A Nike brand manager uses app usage data to create targeted campaigns for
fitness-conscious customers.

🔄 Interaction Among Components

These parts are interconnected and interdependent:

 Internal records feed raw data.

 Intelligence gathers external signals.
 Research dives deeper into focused questions.
 Analytics tools organize and reveal insights.
 People convert insights into marketing strategy.

When integrated well, they enable the company to move from data ➝ insight ➝ action ➝
performance improvement.

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Conclusion: Why the Marketing Information Ecosystem Matters

A strong marketing information ecosystem helps businesses:

 Stay informed and competitive

 Understand and anticipate customer needs
 Improve decision-making
 Increase marketing effectiveness and ROI

In today’s data-driven world, whether in Bangladesh or the USA, companies that

effectively manage and use their marketing information ecosystem can outperform
competitors, enhance customer satisfaction, and achieve sustainable growth.

2. Detailed explanation of the role of marketing research and the steps in the
marketing research process.

📘 Definition of Marketing Research

Marketing research is the systematic design, collection, analysis, and reporting of data
relevant to a specific marketing problem or opportunity.

It helps organizations make informed, data-driven decisions by understanding customers,

competitors, market trends, product potential, and more.

🎯 Role of Marketing Research in Business

Marketing research plays a crucial role in supporting strategic and tactical marketing
decisions. Here's how:

1. 🧠 Understanding Customer Needs and Wants

 Helps businesses identify what customers value.

 Detects changes in tastes, preferences, and expectations.

Example: A telecom company in Bangladesh conducts research to understand why youth are
switching to competitors.

2. 📈 Evaluating Market Opportunities and Demand

 Assesses market size, growth potential, and untapped segments.

 Helps decide whether to launch new products or enter new markets.

Example: A U.S. organic food brand does research to test demand in urban Dhaka before
expanding to Bangladesh.

3. 📊 Reducing Uncertainty and Risk

 Provides factual evidence to support business decisions.

 Reduces guesswork when launching products or setting prices.

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Example: A clothing brand surveys customers before setting prices for a winter collection.

4. 💬 Measuring Marketing Performance

 Helps evaluate advertising effectiveness, customer satisfaction, and brand awareness.

 Enables marketers to refine strategies.

Example: After a campaign, a company in the USA surveys customers to measure brand
recall and engagement.

5. 🔁 Supporting Product Development and Innovation

 Collects feedback on product ideas, packaging, branding, or features.

 Assists in prototype testing and final product design.

Example: A Bangladeshi tech startup tests several app features with focus groups before
launching the final version.

🧩 Steps in the Marketing Research Process

Marketing research follows a structured, step-by-step approach to ensure accuracy, reliability,

and actionable results.

🔹 Step 1: Define the Problem and Research Objectives

This is the most critical step. The goal is to clearly define what the business wants to know.

Types of research objectives:

 Exploratory (e.g., What's causing declining sales?)

 Descriptive (e.g., What are the characteristics of our target market?)
 Causal (e.g., Will a price decrease increase sales?)

✅ Example: A bank wants to understand why its youth savings accounts have low uptake.

🔹 Step 2: Develop the Research Plan

This step involves deciding:

 What data is needed

 Whether to use primary (new) or secondary (existing) data
 What methods to use: surveys, focus groups, observations, experiments

Also includes:

 Sampling plan (who to ask)

 Contact method (online, phone, in-person)

✅ Example: A retail brand in Dhaka decides to conduct a survey of 500 customers using
online Google Forms.

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🔹 Step 3: Collect the Information

This is the data collection phase—often the most expensive and error-prone step. It's
essential to ensure that:

 Interviewers are trained

 Questions are unbiased
 Responses are valid and reliable

✅ Example: A U.S. company hires a research agency to conduct structured interviews in

major cities.

🔹 Step 4: Analyze the Information

Collected data is now:

 Organized (e.g., via Excel, SPSS, or analytics software)

 Summarized with charts, graphs, and tables
 Interpreted to find patterns, relationships, or trends

✅ Example: A marketing team finds that customers aged 18–25 prefer eco-friendly
packaging and are willing to pay more for it.

🔹 Step 5: Present the Findings

Insights are presented to decision-makers through:

 Reports
 Slide decks
 Dashboards

Findings should be:

 Clear
 Visual
 Action-oriented

✅ Example: A research report shows that 65% of survey respondents would switch brands
for better customer service.

🔹 Step 6: Make Decisions and Take Action

Finally, managers use the insights to:

 Launch new products

 Adjust prices
 Improve customer service
 Redesign advertising campaigns

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✅ Example: Based on customer feedback, a Bangladeshi e-commerce site improves delivery
time and simplifies the return process.

🧠 Summary Table: Marketing Research Process

Step Description Example

1. Define the
Clarify what needs to be answered Why is customer retention low?
Problem
Decide on data type, methods,
2. Develop the Plan Use online surveys of 500 customers
sampling
Gather responses through selected Distribute surveys via email and
3. Collect Data
methods social media
Interpret data using tools and
4. Analyze Data Use SPSS to find satisfaction drivers
techniques
Summarize results visually and Create a presentation for the
5. Present Findings
clearly marketing team
Take strategic action based on
6. Make Decisions Improve product delivery system
findings

📌 Final Thoughts:

Marketing research is essential in today's customer-centric and data-driven business

world. It enables firms to make evidence-based decisions, minimize risks, and meet
customer needs more precisely—whether you're in Bangladesh, the USA, or anywhere
globally.

3. How companies analyze and use marketing information, including tools, processes,
and examples

📘 Introduction: Why Analyzing and Using Marketing Information Matters

Modern companies collect vast amounts of marketing data from sources like sales reports,
customer surveys, social media, websites, and customer service. However, the real value lies
not in just collecting this data—but in analyzing it effectively and using it to make smarter
marketing decisions.

Analyzing marketing information helps companies:

 Understand customer behavior and needs

 Improve marketing campaigns
 Personalize customer experiences
 Stay ahead of competitors
 Optimize pricing, promotion, and distribution strategies

🔍 1. Collecting Marketing Information

Before companies can analyze and use marketing information, they must gather it from
multiple sources, such as:

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  Internal sources: Sales data, customer databases, CRM systems, website analytics
 External sources: Competitor analysis, government reports, social media, market
research
 Marketing research: Surveys, focus groups, experiments, observation

✅ Example (Bangladesh): A local e-commerce site like Daraz collects clickstream data
(pages visited, products viewed) from users to understand online shopping behavior.
✅ Example (USA): Netflix collects data on what shows people watch, when, and how long
they watch, to improve recommendations.

🧠 2. Analyzing Marketing Information

Once data is collected, companies apply analytical tools and techniques to extract patterns,
trends, and insights. The analysis can be descriptive, diagnostic, predictive, or prescriptive.

🔹 A. Descriptive Analysis

 Describes what happened

 Summarizes past performance (e.g., monthly sales, customer satisfaction)

Tool used: Excel, Google Data Studio, dashboards

Example: A company reviews a monthly report showing a drop in sales in rural markets.

🔹 B. Diagnostic Analysis

 Explains why something happened

 Uses correlation, regression, or customer feedback

Tool used: SPSS, Python, R

Example: An FMCG brand in Bangladesh finds that poor packaging design led to reduced
repeat purchases.

🔹 C. Predictive Analysis

 Forecasts what is likely to happen

 Uses machine learning, AI, historical trends

Tool used: Predictive modeling, AI tools

Example: Amazon predicts what you’re likely to buy next based on past behavior.

🔹 D. Prescriptive Analysis

 Recommends what action to take

 Helps optimize strategies (e.g., what price to charge, where to advertise)

Tool used: Optimization models, A/B testing

Example: A U.S. airline uses dynamic pricing to adjust ticket prices based on demand
forecasts.

⚙️3. Tools and Technologies for Analysis

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Companies use various tools to turn raw data into meaningful insights:

Tool/Platform Purpose
Google Analytics Tracks website traffic behavior
CRM Software Manages customer interactions
BI Tools (e.g., Tableau, Power BI) Visualizes data for decision-making
Social Listening Tools (e.g., Brandwatch, Hootsuite) Tracks public sentiment
Data Science Tools (e.g., Python, R, SQL) Advanced analysis and modeling

💼 4. Using Marketing Information in Decision-Making

Once insights are extracted, they are used in strategic and operational decisions, such as:

🔸 A. Customer Segmentation

 Divide customers based on demographics, behavior, and preferences

 Helps with targeted marketing

✅ Example (Bangladesh): A telecom company targets youth with special internet packages
based on app usage patterns.
✅ Example (USA): Spotify creates personalized playlists for users based on listening history.

🔸 B. Product Development

 Use feedback and usage data to improve or create new products

✅ Example: Samsung Bangladesh uses customer complaints and surveys to improve

smartphone features.

🔸 C. Pricing Strategy

 Analyze competitor prices, customer willingness to pay, and demand elasticity

✅ Example: Uber uses real-time data and algorithms for surge pricing.

🔸 D. Promotion Strategy

 Analyze which ads, platforms, and messages are most effective

✅ Example: Coca-Cola tracks engagement rates on Facebook and adjusts content

accordingly.

🔸 E. Distribution and Channel Strategy

 Analyze sales by region and channel to optimize supply chain and inventory

✅ Example: A retail chain in Dhaka shifts more stock to outlets with higher foot traffic
during festivals.

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📊 Real-World Example Summary Table

Company Data Analyzed Use of Insight

Daraz (BD) Clickstream data, order history Personalized product recommendations
Transaction volumes, usage by
bKash (BD) Plan agent cash availability
region
Netflix (USA) Viewing patterns, ratings Suggest shows and plan new content
Segment fitness customers for product
Nike (USA) App usage, customer feedback
lines

✅ Conclusion

Analyzing and using marketing information is essential for business success. It allows
companies to:

 Deliver better customer experiences

 Optimize marketing spend
 Innovate products and services
 Gain competitive advantage

Companies that effectively analyze and use marketing information can respond faster,
target more accurately, and grow more sustainably in both local (e.g., Bangladesh) and
global (e.g., USA) markets.

4. Discussion of the special issues faced by marketing researchers, especially focusing

on public policy and ethical concerns.

📘 Overview: Special Issues in Marketing Research

Marketing research plays a crucial role in guiding business decisions. However, researchers
often face sensitive challenges that go beyond collecting and analyzing data. These include:

 Ethical responsibilities toward participants

 Compliance with public policy and legal frameworks
 Handling sensitive customer information
 Avoiding manipulation or misuse of research results

These challenges can affect trust, validity, and integrity of research—making it important to
handle them with care.

⚖️1. Ethical Issues in Marketing Research

Ethics in marketing research refers to doing what is morally right, especially concerning
how data is collected, stored, analyzed, and reported.

🔸 A. Invasion of Privacy

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  Problem: Collecting personal data without permission or using it for unintended
purposes.
 Concern: Violates consumer rights and can damage brand reputation.

Example: A company in Bangladesh collects customer phone numbers via a survey but later
uses them for unsolicited SMS promotions without consent.

Best Practice: Always obtain informed consent and explain how data will be used.

🔸 B. Deceptive Research Practices

 Problem: Misleading participants about the purpose of the research or manipulating

results.
 Concern: It undermines trust and credibility.

Example: A company disguises an aggressive sales pitch as a customer satisfaction survey.

Best Practice: Be transparent about the intent of the research.

🔸 C. Harming Respondents

 Problem: Asking emotionally sensitive questions or putting respondents at risk.

 Concern: Violates ethical standards and can cause psychological harm.

Example: Researching a sensitive topic like health or trauma without proper safeguards or
support resources.

Best Practice: Follow ethical review guidelines and provide opt-out options.

🔸 D. Data Misuse or Fabrication

 Problem: Altering, exaggerating, or selectively reporting results.

 Concern: Leads to poor decisions and damages the integrity of marketing research.

Example: A marketing manager pressures researchers to only report positive feedback about a
new product.

Best Practice: Maintain objectivity and transparency in reporting.

🔸 E. Exploiting Vulnerable Groups

 Problem: Targeting children, elderly, or illiterate populations in research without

proper care or permissions.
 Concern: Ethical violations and legal repercussions.

Example: A toy company surveys children in a school without parental consent.

Best Practice: Use age-appropriate methods and obtain legal guardian approval.

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2. Public Policy Issues in Marketing Research

Public policy affects how companies conduct research, especially concerning data
protection, consumer rights, and fair competition. Governments and regulatory bodies
often set legal boundaries to protect individuals and ensure ethical practices.

🔸 A. Data Protection and Privacy Laws

 Laws such as:

o GDPR (Europe)
o CCPA (California)
o Data Protection Act (Bangladesh - under BTRC)

These laws restrict how personal data can be collected, stored, and shared.

Example: A U.S.-based company doing research in Bangladesh must comply with local data
privacy laws, such as requiring customer consent before collecting personal information.

🔸 B. Consent and Opt-Out Requirements

 Researchers must give respondents the right to choose whether to participate and to
withdraw at any time.

Policy Impact:

 Requires companies to design consent forms.

 Adds complexity to digital data collection, especially on apps and websites.

🔸 C. Regulation of Research with Children

 Public policy often limits research involving minors unless proper consent is obtained
from parents or guardians.

Example: A company must comply with COPPA (Children's Online Privacy Protection Act)
in the USA before conducting online research involving users under 13.

🔸 D. Truth in Reporting

 Public agencies may audit or review how marketing research findings are used—
especially in regulated industries like healthcare or finance.

Example: If a pharmaceutical company falsely claims a product is preferred by 80% of users

based on misleading research, it can face penalties.

🔸 E. Cross-Border Research and Cultural Sensitivity

 Different countries have different ethical and legal standards. What’s acceptable in
one market may be illegal or unethical in another.

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Example: In Bangladesh, surveying rural populations may require cultural sensitivity and
local permissions, especially for NGOs or foreign companies.

🔐 3. Other Special Issues in Marketing Research

🔸 A. Respondent Bias

 People may lie, exaggerate, or answer inaccurately due to social pressure or

misunderstanding.

Solution: Design neutral, easy-to-understand questions and use triangulation (multiple data
sources).

🔸 B. Low Participation Rates

 Especially with online surveys, people may ignore or abandon surveys.

Solution: Keep surveys short, offer incentives, and use engaging formats.

🔸 C. Cost vs. Accuracy Trade-off

 High-quality research is expensive, but budget constraints may lead to shortcuts or

unscientific practices.

Solution: Use a balanced research design that fits the objective and budget.

📊 Summary Table: Ethical and Public Policy Issues

Issue
Specific Issue Example Guideline/Response
Type
Using phone numbers for
Ethical Privacy invasion Obtain clear, informed consent
marketing without consent
Ethical Deception Faking purpose of survey Be transparent with respondents
Ethical Data misuse Fabricating survey results Report honestly and accurately
Public Data protection Violating GDPR or BTRC data Follow relevant
Policy laws rules national/international laws
Public Research with Follow age-specific legal
No parental consent
Policy children frameworks
Cultural Asking culturally inappropriate Train researchers in local
Other
insensitivity questions customs/language

✅ Conclusion

Marketing researchers must balance the need for insights with their ethical and legal
responsibilities. By respecting respondent privacy, ensuring transparency, and complying

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with public policy, companies can build trust, protect brand integrity, and make smarter
decisions based on reliable and responsible research.

In both developed markets like the USA and emerging markets like Bangladesh, ethical and
legal marketing research practices are essential to long-term success and public credibility.

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