Prof. Hemant Kombrabail

TYBMS Prof.
Hemant Kombrabail
MEANING OF MARKETING RESEARCH
The term "Marketing Research" is composed of two words -"Marketing" and "Research".
Marketing
Marketing basically consists of spotting the needs of customers and meeting them in the best
possible manner through appropriate production and distribution activities.
The term marketing refers to buying and selling activities. Exchange/transfer of ownership is the
essence of marketing.
Research
Research means detailed/systematic/comprehensive study of a problem. .
Research is a process involving a series of steps to collect and analyze the information needed for
decision-making in the desired / specific field of inquiry. The term research can be applied to any
field of human activity.
Research means “studious enquiry" or "thorough, honest and impartial study conducted by trained
men using scientific methods". It means detailed study relating to a particular subject.
The term MR is used extensively in modern marketing management. It acts as a tool for accurate
decision making in marketing of goods and services. It is also useful for studying and solving
different marketing problems faced by business units. . Here, the details (information and data) of
the marketing problem are collected and studied, conclusions are drawn and
suggestions/recommendations are made to solve the problem quickly, correctly and
systematically. In MR/ marketing problem is studied in depth by collecting and analyzing all
relevant information and solutions are suggested to solve the problem relating to consumers,
product, market competition, sales promotion and so on.
MR is a special branch of marketing management. It is comparatively of recent in origin. MR acts

as an investigative arm of a marketing manager. It suggests possible solutions on marketing
problems for the consideration and selection by a marketing manager. It also acts as an important
tool to study buyer behavior, changes in consumer life-styles and consumption patterns, brand
loyalty and forecast market changes.
MR techniques are used by manufacturers/exporters/distributors and service organizations to

collect information on various aspects of marketing. The information collected is analyzed and
used for decision-making in the marketing management. MR facilitates accurate marketing
decisions for consumer satisfaction on the one hand and sales promotion on the other hand. It is
rightly treated as the SOUL of modern marketing management. MR suggests possible solutions on
marketing problems to marketing manager for his consideration and final selection/decision. It is
rightly said that the beginning and end of marketing management is marketing research. Decisions
on each element of the marketing mix-product, price, distribution and promotion-need marketing
research support. Marketing research is primarily used to provide information needed to guide
marketing decision viz., market mix. It acts as a support system to marketing management.
1
TYBMS Prof. Hemant Kombrabail
DEFINITIONS OF MARKETING RESEARCH:
Let us now, consider some definitions of MR:

(1) The most widely accepted definition of marketing research is given by American Marketing
Association (AMA). The AMA has defined marketing research as "the systematic gathering,
recording and analyzing of data about problems relating to the marketing of goods and
services”
(2) According to Richard D. Crisp: "Marketing research is the systematic, objective and
exhaustive search for and study of the facts relevant to any problem in the field of marketing."
(3) According to Philip Kotler: "Marketing research is systematic problem analysis, model
building and fact-finding for the purpose of improved decision-making and control in the
marketing of goods and services."
(4) Luck, Wales and Taylor have defined marketing research as "the application of scientific
method to the solution of marketing problems"
(5) Green and Tull have defined marketing research as "the systematic and objective search for
and analysis of information relevant to the identification and solution of any problem in the
field of marketing."
(6) British Institute of Management: In 1962, the British Institute of Management defined
marketing research as/ "The objective gathering, recording and analyzing of all facts about
problems relating to the transfer and sales of goods and services from producer to consumer."
FEATURES OF MARKETING RESEARCH:
(a) Marketing research is concerned with systematic gathering, recording and analyzing of
information: In MR, information that is relevant to the marketing problem is collected in a
systematic manner from all available sources. Thereafter, the same is tabulated and recorded for
systematic scrutiny. Such scrutiny will offer certain specific conclusions useful for solving the
marketing problem.
(b) In MR, information is to be collected objectively and accurately: This feature of MR

suggests that the required information needs to be collected objectively. In brief, the information
collected should be accurate, precise, relevant and properly verified. The conclusions drawn and
the remedial measures introduced will be ineffective if the information collected is not reliable.
(c) Marketing research is a tool for solving marketing problems: MR is a means and not the end
in itself. It is a tool in the hands of management for identifying and analyzing marketing
problems. The purpose is to solve them correctly.
CHARACTERISTICS OF MARKETING RESEARCH:

(1) Systematic and continuous process: MR is a continuous process. This is natural as new
marketing problems are bound to come from time to time in the course of marketing of
goods and services. One type of research is not adequate to resolve all marketing
problems. Similarly, new research projects will have to be undertaken to solve new
2
marketing problems and challenges. A marketing company faces new marketing problems
from time to time. For facing these problems marketing research activities need to be
conducted on a regular basis. A marketing company has to conduct MR regularly for its
survival & growth in the present dynamic marketing environment.
(2) Wide/comprehensive in scope and application: MR is wide in scope as it deals with all
aspects of marketing of goods and services. It is more than just collecting data on
marketing. Introduction of new products, identification of potential markets, selection of
appropriate selling techniques, study of market competition and consumer preferences,
introduction of suitable advertising strategy and sales promotion measures, are some areas
covered by MR. It plays a role in all the three phases of the management process in
marketing: planning, implementation and evaluation.
(3) Emphasizes on accurate data collection and critical analysis: In MR, required data
should be collected objectively and accurately. The data collected must be reliable. It
should be analyzed in a systematic manner. This will provide comprehensive picture of the
situation and possible solutions.
(4) Offers benefits to sponsoring company and consumers: MR is useful to the sponsoring
company. It raises the turnover and profit of the company. It also raises the competitive
capacity and creates goodwill in the market. It enables a company to introduce consumer-
oriented marketing policies. Consumers also get agreeable goods and more satisfaction
due to MR activities.
(5) Commercial equivalent of military intelligence: MR is the commercial intelligence
activity. It is similar to military intelligence where systematic study is made before taking
any military action. MR acts as the intelligence tool of marketing management.
(6) Tool for managerial decisions: MR acts as a tool in the hands of management for
identifying and analyzing marketing problems and finding out solutions to them. It is an
aid to decision-making. It suggests possible solutions for the consideration and selection
by managers. MR is an aid to judgment and never a substitute for it.
(7) Applied type of research: MR is applied knowledge. It is also called 'decisional research
as it provides specific alternative solutions to deal with a specific marketing problem. It
studies specific marketing problem and suggests alternative solutions and possible
outcome of each alternative. In addition, it is both science and an art. MR is also becoming
highly professional activity.
(8) Reduces the gap between the producers and consumers: MR is an essential supplement
of modern competitive marketing. It is useful for understanding the needs and
expectations of consumers. It reduces the gap between producers and consumers and
adjusts the marketing activities to suit the needs of consumers.
(9) Not an exact science: MR is both science and an art. It collects information and studies
marketing problem in a scientific manner. The information collected is also applied to real
lire problem. However, MR is not an exact science. It only suggests possible solutions and
not the exact solution to marketing manager for consideration and selection. At present,
MR is treated as a professional activity. We have professional agencies (MR agencies or
advertising agencies) dealing with the marketing problems of their clients on commission
basis.
(10)Use of different methods: MR can be conducted by using different methods. Data can be
collected through survey or by other methods like observation method or experimentation
3
method. Even computers and internet are used for data collection. The researcher has to
decide the method that is suitable for the conduct of research project. This selection is
important as the use of unsuitable methods affect the quality of research work.
(11)Dynamic character: MR is dynamic in nature. Its scope is fast expanding along with the
new developments in the field of marketing. This is natural as MR is essentially for dealing
with new problems and challenges in the field of marketing. In addition, developments in
other subjects such as economics, statistics, computer science, sociology, psychology,
cultural anthropology and behavioral sciences also bring corresponding changes in the field
of MR. New methods, new techniques, etc., are used while conducting the research
activities. This suggests that MR is a dynamic and progressive subject with new
developments taking place regularly.
(12)Closely connected with marketing information system: Both the concepts are
interrelated. In fact, MR is one component of MIS. Both are useful for solving marketing
problems and for accurate and quick decision-making in the field of marketing.
(13)Phenomenal growth: MR has made a phenomenal growth since its inception. It has
become an important tool in the hands of management (to solve marketing problems) along
with the advent of consumer-oriented philosophy in modern business. The increasing
research budgets of companies are the indicators of its tremendous growth in recent years.
AIMS AND OBJECTIVES OF MARKETING RESEARCH:

The aims of the marketing research and analysis may be stated as follows:
(1) To study the needs, wants and expectations of consumers.
(2) To find out reactions of consumers to the products of the company.
(3) To evaluate company's sales promotion measures for suitable adjustment and improvement.
(4) To study current marketing problems and opportunities for suitable follow-up actions.
(5) To suggest the introduction of new products, modifications of existing products and to
discover new uses of existing products.
(6) To design and test appropriate packages of company's products and make packaging as
attractive as possible
(7) To study existing pricing, channels of distribution and market competition for suitable
changes, if necessary.
(8) To find out methods for making the products of the company popular and raising its goodwill
and market reputation.
(9) To assess competitive strength and policies.
(10)To estimate potential buying-power in various areas
(11)To know the company's expected share of the market.
(12)To determine the dimensions of the marketing problems, facilitate evaluation of the alternative
solutions of different problems and help in the selection of a right course of action.
(13)To define the probable market for a specialized product and to report on general market
conditions and tendencies, buying habits, etc.
4
MARKET RESEARCH V/S MARKETING RESEARCH:

The two terms “market research" and "marketing research" are used interchangeably though
there is difference in the meaning and scope of the two terms. "Market research" is used as a
popular synonym for "marketing research". Market is a part of marketing and market research is
only a part of marketing research. It covers only a few aspects of marketing. According to Philip
Kotler, the term "market research" is accurate for describing research into the market, its size,
geographical distribution, income and so on. However, it fails to cover the idea of research into
the effects of marketing efforts on the market for which the term "marketing research" is more
accurate. MR is increasingly coming into favor as the term that describes both ideas. Marketing
research need not be treated as pure academic research. It is a type of applied research with
scientific orientation.
Distinction between market research and marketing research
Dimension Market Research Marketing Research

Meaning Market research directly relates to Marketing research is a systematic
market situation i.e. size, location, and comprehensive search/study of
market competition and features different aspects of marketing -
of customers. It provides details including the current marketing
about the market for decision- problems and challenges for
making and policy framing. decision-making & policy framing.
Nature Market research is a branch of Marketing research is one branch of
marketing research. Marketing Information System.
Scope The scope of market research is The scope of marketing research is

limited/restricted to the study of comprehensive & wide as it covers
market or market situation all aspects of marketing.
Type of term Market research is a narrow term Marketing research is a wide/broad

as it relates to one aspect of term as it covers all aspects of
marketing marketing
Objective Market research is undertaken in Marketing research is undertaken in

order to deal with the problems order to study varied types of
and challenges relating to different marketing problems such as product
aspects of market such as line, marketing mix, advertising,
competition, market demand and packaging, branding and so on.
consumer needs
GROWING IMPORTANCE OF MARKETING RESEARCH:
Marketing research has received attention and importance along with the growth of highly
competitive consumer-oriented marketing philosophy. Research activities in different aspects of
marketing are necessary and useful in such competitive and flexible marketing environment.
Large companies marketing consumer items noted the growing need of MR activities in the
5
marketing decision-making process. They naturally took initiative in conducting research

activities within the organization itself. This was followed by the formation of specialized
marketing research agencies and advertising agencies for this purpose. This is how professional
orientation was given to MR. Many marketing research departments and agencies were
established after World War II.
MR activity (as we understand today) is comparatively new in the field of marketing. This activity
probably began around 1950s (Modern era of marketing research) and attracted the attention of
companies interested in marketing their products in the national and global markets. However, the
concept of MR got firm roots in the marketing activity after 1910. First time the marketing
research techniques were used by newspapers to predict the election results. However, during the
second decade of 20th century, marketing research emerged as a valuable management tool to
solve marketing problems. In the developed countries, marketing research activity is conducted on
scientific lines. Even in India, large manufacturing companies treat marketing research as an
essential supplement of planning and decision-making in the marketing field. It is treated as an
indispensable tool for profitable and consumer-oriented marketing. The popularity of MR
increased after 1960 due to the introduction of computers in data collection and analysis. In the
early period, marketing research activities were confined to market studies only but in 1950s
research relating to marketing activities was broadened to include all managerial aspects-price,
produce place and promotion. In late 1950's motivational and psychological techniques were
introduced to generate more information on consumers.
Several factors have contributed to the growing importance of marketing research. For example,
due to large-scale production, producers could not have direct contact with the consumers. This
created many problems before producers. For solving all such problems developed due to the gap
between producers and consumer and marketing research activities prove to be useful.
Secondly, the shifting from sellers’ market to buyers' market made it necessary to have better
understanding about consumer net-expectations. For this, marketing research proved to be useful.
Thirdly, the introduction of computers has contributed to the growth of marketing research
activity.
Fourthly, rapid changes in the business environment, shift to consumer-oriented philosophy in

business are also responsible for growing importance of marketing research.
Finally, the scope of marketing has widened due to population growth and development of rural
markets. MR proved to be useful for dealing with the problems created by national and global
markets. In brief, growing importance of marketing research in the present marketing system is
the net result of various factors and forces available in the present marketing system. At present,
MR activities are undertaken by marketing companies on their own. In addition, marketing
research consultants and agencies provide expert advice to companies on general and specific
marketing problems of their clients.
Relevance of MR under Globalization:

The business world is fast moving towards globalization in which all countries participate. Every
country has to face competition in the domestic as well as in export marketing. Survival in the
global business is possible through quality improvement, cost reduction and by attracting
6
consumers through various sales promotion techniques. Here, MR offers helping hand to
companies. It offers suggestions for survival under global competitive environment. In brief, the
importance/relevance of MR is fast growing along with the globalization of business. It is a must
for survival and growth under globalization. Current marketing scenario is different as compared
to traditional one. There is a new trend towards liberalization and globalization. Markets
(domestic as well as foreign) are becoming highly competition. New companies and new products
are entering in the markets. Survival is difficult under the present marketing environment. Here,
MR offers various services. It is, now, a professional activity with new developments in regard to
scope/coverage and techniques. In brief, MR has great relevance in the current marketing scenario
in India as well as in all countries- developed and developing of the world. MR has enormous
capacity to help and guide marketing companies in regard to their marketing problems and
challenges.
FUNCTIONS OF MARKETING RESEARCH:

MR performs five basic functions. These are: Description, evaluation, explanation, prediction and
finally aid in decision-making. These functions are related to the research project undertaken.
Usually, every research study performs all the five functions explained below:
(1) Description: MR provides data and gives information/description of customers who buy the
product. This includes information about their age/sex, education, income and the amount of
money that they are willing to spend on the product. Description of the customers is useful in
order to draw certain conclusions about the customers and their buying behavior. Even
marketing strategies can be decided as per the information available.
(2) Evaluation: MR is useful for understanding the views/reactions of the buyers. This includes
views of consumers on packaging/ advertising/sales promotion measures used. A
manufacturer gets these details as well as the information about his product in comparison
with the products of his competitors. This facilitates evaluation of the marketing policies. For
example, how far the packaging of the product is attractive to consumers or superior as
compared to packaging by competitors and so on.
(3) Explanation: MR gives explanation to certain questions of a manufacturer. It may be related
to decline in sales, retailers negative reaction or resistance of consumers in a particular
marketing area. MR enables a manufacturer to understand why sales are reducing (causes) or
why the response of the retailers is negative or why consumers in a particular region are not
willing to purchase a specific product. Such explanation is important as it enables a
manufacturer to adjust his marketing policies in order to rectify the prevailing unfavorable
situation.
(4) Prediction: MR conducts prediction function. Such predictions may be related to consumers,
market environment/market competition, possible socio-economic changes and so on. This
prediction function enables a manufacturer to understand how much people will spend on the
specific product in the next year or the fashions that consumers may prefer in the next year.
In addition, prediction about the possible turnover in the years to come is also possible
through suitable marketing research studies. In brief, marketing research is useful for
understanding the marketing environment likely to develop in future. This facilitates proper
adjustment in the marketing policies for the future period. In this sense, the prediction
function is important even when all predictions made through research studies may not prove
to be fully correct. However, the trend indicated can be used for appropriate policy decisions.
(5) Aid in Decision-making: One more function of MR is to facilitate the process of decision-
making in the marketing field. MR guides the manufacturer as regards the manner in which
he can make effective advertising appeal or create incentive among his salesmen/distributors.
7
It also gives him guidance as regards price fixation and sales promotion techniques that will
be useful for the future period. This function of marketing research is closely related to other
functions that it performs. These functions facilitate reasonably correct decision-making by
marketing managers.
They also suggest the practical utility of MR activities.
MR functions provide feedback (information and guidance) to marketing managers and improve
the quality of their decision-making. This practice is certainly safer as compared to decision-
making on the basis of past experience or intuition. When reality is complex and many facts are
not detectable, intuition is not adequate for decision-making. Similarly, experience is useful but
decisions on experience alone may not be accurate.
Large companies and professional executives prefer to resort to marketing research than
depending on experience. This is because information available is based on real data and is more
reliable/ dependable. This facilitates correct decision-making. Thus, marketing executives should
prefer decisions on the basis of information supplied through marketing research. Such decisions
are likely to be more accurate as they are based on actual market situation.
In brief, the basic function of MR is to support marketing decision-making process. Marketing

research does not provide ready-made decisions or exact solutions on all marketing problems. It
only provides the clues or possible solutions that should be taken into consideration in the
decision-making process. It provides support to skills and abilities of marketing managers.
The different functions of marketing research are supplementary in character. These functions
enable a manufacturer to keep close touch with the marketing situation and enable him to make
suitable changes in his marketing policies and programmers. They also suggest the role marketing
research activity in modern competitive and consumer oriented marketing. Marketing research
functions certainly improve the quality of decision-making by marketing managers.
ADVANTAGES/IMPORTANCE OF MARKETING RESEARCH:

1. Indicates current market trends: Marketing research keeps business unit in touch with the
current market trends and offers guidance for facing market situation with confidence.
2. Pinpoints deficiencies in marketing policies: MR pinpoints the deficiencies as regards
products, pricing, promotion, etc. It gives guidance regarding different aspects of marketing.
They include product development, branding, packaging and advertising.
3. Explains customer resistance: MR is useful for finding out customer resistance to company's
products. The researcher also suggests remedial measures to deal with the situation. This
makes the products and marketing policies agreeable to consumers.
4. Suggests sales promotion techniques: MR enables a manufacturer to introduce appropriate
sales promotion techniques, select most convenient channel of distribution, suitable pricing
policy for the products and provision of discounts and concessions to dealers. Marketing
research facilitates sales promotion.
5. Offers guidance to marketing executives: MR offers information and guidance to marketing
executives while framing marketing policies. Continuous research enables a company to face
8
adverse' marketing situation boldly. It acts as an insurance against possible changes in market
environment.
6. Facilitates selection and training of sales force: Marketing research is useful for the
selection and training of staff in the sales organization. It also suggests the incentives that
should be offered for motivation of employees concerned with marketing.
7. Promotes business activities: Marketing research enables a business unit to grow/expand its
activities. It creates goodwill in the market and also enables a business unit to earn high profits
through consumer-oriented marketing policies and programmers.
8. Facilitates appraisal of marketing policies: Research activities enable business executives
to have an appraisal of the present marketing policies in the light of findings of research work.
Suitable adjustments in the policies are also possible as per the suggestions made by the
researchers.
9. Suggests new marketing opportunities: MR suggests new marketing opportunities and the
manner in which they can be exploited fully. It identifies emerging market opportunities.
10. Facilitates inventory study: Marketing research is useful for the evaluation of company’s
inventory policies and also for the introduction of more efficient ways of managing
inventories including finished goods and raw materials.
11. Provides marketing information: MR provides information on various aspects of marketing.
It suggests relative strengths and weaknesses of the company. On the basis of such
information, marketing executives find it easy to frame policies for the future period. MR
provides information/ guidance and alternative solutions to current marketing problems.
12. Suggests appropriate distribution channels: MR can be used to study the effectiveness of
existing channels of distribution and the need of making suitable changes in the distribution
system.
13. Provides information on product acceptance: Marketing research helps in knowing the
probability of acceptance of the product in its present form. It is also useful for the
introduction of modifications in the existing product line of a firm.
14. Creates progressive outlook: MR generates a progressive and dynamic outlook throughout
the business organization. It promotes systematic thinking and a sense of professionalization
within the company. It also creates enthusiasm among marketing executives. This brings
success and stability to the whole business unit
15. Has wider social significance: MR is of paramount importance from the social angle. It is the
means by which the ultimate consumer literally becomes king of the market place, with his
desires/ prejudices and every whim transmitted to the producer and distributor. In brief, MR
has wider social significance. It is useful to all parties involved in the process of marketing.
Marketing research need not be treated as a fad. It is one of those fundamental tools that today’s
marketing manager needs to keep sharpened all the time so that he might be-m a position to
minimize the business or marketing risk.
9
Limitations of marketing research are as explained below:
(1) Marketing research offers suggestions and not decisions: Marketing research is not a
substitute for decision-making process. It only offers possible suggestions/solutions to
marketing problems. It actually acts as a tool that facilitates decision-making process. It
guides marketing managers in taking balanced, result-oriented and rational decisions. The
suggestions offered by marketing researchers are usually possible/probable solutions but not
the exact solutions.
MR offers predictions but they are not necessarily accurate or perfect. Such predictions should
be taken in the right spirit by the management. It offers information and guidance to
marketing managers but not the final decisions, which are to be taken by managers
themselves.
MR does not provide readymade solutions to marketing problems. It only provides indicators.
It may not provide conclusive information on marketing problems. The marketing managers
have to use available information properly and take appropriate marketing decisions.
The effectiveness of MR depends on the skill of the decision-maker. For this/ various
marketing forces need careful consideration. However all such forces are not covered by
research project undertaken. MR aids managerial decision-making but it cannot replace
judgment and experience of marketing executives/managers.
(2) Marketing research cannot predict accurately: In MR, efforts are being made to estimate
or predict the possible future situation. For this/ certain research studies are undertaken.
However, the results/ conclusions arrived at may not be complete, perfect or accurate. They
predict possible tendencies but not certainties. Future is always uncertain and exact prediction
about the future is just not possible through marketing research. This is because market
environment is ever changing consumer behavior is difficult to estimate correctly and reliable
data for research purpose may not be available. As a result, the decisions taken and policies
framed on the basis of such research studies may not be accurate and useful for solving
current marketing problems.
Marketing research gives guidance to marketing managers through information and

conclusions drawn but such guidance may not be accurate as it is based on the predictions
about future situation. The guidance offered through research activities may prove to be out-
dated at the time of taking current marketing decisions.
(3) MR conclusions are not always dependable: There are many who are skeptics of MR. Their
criticism is that MR conclusions are not dependable. There are examples where the research
failed to deliver desired results or a product failed even when the research had shown
promising market demand and consumer support. The classical example is that of Coke. Its
MR showed that 68% customers in US liked the taste of the new formula developed by the
Coca-Cola Corporation. However, the New Coke failed and in less than six months of its
launch, the Coke management had to re-launch old Coke under the brand name Coke Classic.
However, this failure of MR was mainly due to conventional approach of researchers.
10
(4) Not an exact science: Since marketing research plates to consumers, it cannot be accepted as
an exact science. Both quantifiable and non-quantifiable factors have to be assessed with the
help of various techniques available to formulate marketing policies that will help to achieve
maximum sales. The technical part of marketing research comes into operation particularly
while collecting, analyzing, interpreting facts and figures. No amount of sophistication makes
the subject an exact science. Because, as stated earlier, it concerns primarily the consumer as a
human being Study of human behavior precludes absolute mathematical accuracy Probable
trends, at the most can be indicated within predetermined limits. This sets a basic limitation to
marketing research. At the same time, it necessitates a creative and skilled approach to the
conduct of research. In this way, marketing research can contribute immensely to decision-
making in a dynamic market. For accurate judgment, the marketer must be fully aware of the
nature of limitations of marketing research.
(5) Time lag in presentation and implementation: There are other constraints as well that make
for qualified utility of marketing research in decision-making. For example, there is the
limitation of time. Collection of data, their checking as to accuracy and analysis and
presentation often involve considerable time. The formulation of policies and their
implementation as also their subsequent evaluation, which are a necessary follow-up, also take
time. People's tastes and preferences are subject to frequent changes. It is, therefore necessary,
keeping in mind the scope and nature of marketing research, that the projects should be
completed in time to ensure their utility. In this process, at times, as a compromise some
accuracy may have to be sacrificed, but the degree of it can be decided in relation to the
specific circumstances.
(6) Limitations of personnel: Another constraint that is experienced pertains to personnel and its
quality. Trained, well-equipped and well-directed research personnel can improve the quality
and utility of marketing research. In the absence of this, research is likely to be costly and
unreliable. Correct and complete information has to be collected from the respondents
tactfully. The interviewer has to be reasonably aware of the psychological make-up of the
persons that are being interviewed and should be able to analyze their thoughts and reactions.
Apart from this, interviewers may have their own failings and weaknesses. Hence the
training interviewers and investigators is a must. These limitations and constraints can be
overcome or at least their impact can be minimized. To the extent a market researcher is
successful in his task, the value of the findings can be improved. What is most important is
that reliable data should be available on the basis of which production and marketing plans
and programmers can be formulated with a fair degree of accuracy. It is better to be certain
about 50 percent reliable information than do a guesswork, which has more chances of going
wrong.
(7) Difficult to ascribe results: It is also difficult to ascribe results as a direct consequence of
market research. The rupee value received by a firm from marketing research, therefore,
cannot be measured accurately and completely. This has contributed to an element of
hesitation on the part of organizations to undertake marketing research in many cases,
especially in the developing countries.
(8) A cost-generating operation: Marketing research is expensive. The existence of sellers’

market or a sheltered market in many developing countries in particular has also been
responsible for an apathetic approach to marketing research. However, with the growth and
11
development of their economies, the marketing conditions are changing in favor of buyers and
the need for and the value of marketing research are being increasingly recognized by the
enterprises in these countries also. With the communication between the purchaser and the
manufacturer becoming indirect, meagre and unsatisfactory and as a result of competition, the
manufacturer is increasingly becoming anxious to know the magnitude of his sales to
consumers, where they are being effected, the kinds of people buying his goods and their
reactions and responses. All this information is essential to the manufacturer, as this decides
ultimately whether he will survive in the market or not. He can improve his product and
marketing strategy to secure consumer satisfaction and logically profit from these changes.
(9) Marketing research cannot study all marketing problems: Marketing research is rather
very wide in scope. However, it cannot study all marketing problems particularly where it is
difficult to collect relevant data. Similarly, research study is not possible where value
judgments are involved. Even it is not useful for dealing with urgent marketing problems
where quick decisions and follow-up actions are necessary. Thus, all marketing problems are
not researchable and all research problems are not answerable.
MR cannot provide answer to each and every marketing problem. A problem like Profitability
Vs. Consumer satisfaction is difficult to answer with complete accuracy. The present
marketing research techniques have certain limitations. MR fails to offer guidance to
managers while dealing with specific problems. Thus, marketing research cannot study all
marketing problems and do not offer ready-made solutions to all marketing problems faced by
a business unit. It is also argued that very many times, marketing research tends to be
fragmentary in its approach. As a result, it becomes difficult to have an overall perspective in
which a marketing problem is to be viewed and studied.
(10)Resistance by marketing executives: Researchers study marketing problems and offer

information and guidance to marketing executives in their decision-making process. However,
some executives are reluctant to use the solutions suggested by the researchers. They feel that
such extensive use will act as a threat to their personal status. Findings of the research work may
bring them in difficulties if the policy-decisions taken accordingly prove to be wrong.
Marketing executives may also feel that researchers suggest solutions that are academic in
character and lack practical utility. They use guidance and suggestions given by the researched
only when they are compelled to do so. There is absence of meaningful dialogue between the
marketing managers and the marketing research team. As a result/ marketing researchers get
divorced from the main stream of marketing. Such attitude of indifference on the part of
researchers and marketing executives makes marketing research meaningless.
It is necessary to have effective communication between researchers and marketing

executives. Secondly, researchers should try to act as friend and guide of marketing
executives. Marketing executives should also consider the findings of researchers in an
impartial manner. Such attitude of mutual confidence and understanding is useful for co-
operation between researchers and marketing executives. Conflict between researchers and
executives is always undesirable but do exist in many companies. It is treated as one limitation
of MR activity.
(11)Lengthy and time-consuming activity: MR is a lengthy and time-consuming activity. It

involves various stages/steps, which need to be completed in an orderly manner. It is not
12
desirable to conduct research work in a haphazard manner. Naturally, the research work takes
longer period for completion and the findings when available may prove to be old and outdated.
Even data collected very soon become old or historical due to fast changing market
environment. As a result, research findings based on them become irrelevant in the changed
situation.
MR is not useful for dealing with urgent marketing problems. Moreover, research work cannot
be conducted overnight and marketing decisions cannot be postponed till the research work is
completed. Thus, urgent/pressing marketing decisions arc usually taken without the support of
research work. In brief, lengthy and time consuming aspect of marketing research reduces its
practical utility and is rightly treated as one limitation of marketing research technique.
(12)Non-availability of qualified staff: For scientific MR, professional marketing researchers with
proper qualifications, training and experience are necessary. Research work is likely to be
incomplete/ unreliable in the absence of such expert staff. Companies find it difficult to have the
services of such expert staff. They find it difficult to pay high salary to professional consultants.
Research activities are conducted in limited areas due to non-availability of properly qualified
staff. Such staff includes statisticians, psychologists, sociologists, economists and computer
experts.
(13)Complexity of the subject: Marketing research fails to give complete and full proof solutions
to management. This is because marketing research itself is not an exact science. It is concerned
with the study of human beings and human behavior is always difficult to predict, errors in
drawing conclusions are possible due to this human element in marketing research activities.
Errors in the research studies are also possible due to uncertainty of human behavior and also
because of non-availability of reliable data.
(14)Changing behavior of consumers: Consumer is the focal point in marketing research.

However, his buying motives are difficult to judge precisely and accurately. This brings some
sort of uncertainty in the conclusions drawn from the research activity. The findings of the
research work (particularly in the case of consumer research) may not prove to be accurate.
(15)Limited practical utility: MR is regarded as an academic exercise. It is often been delinked

from the business strategy. As a result many research reports become "academic" in nature and
are 'filed'. Researchers take more interest in conducting research work rather than in supplying
information and guidance to marketing managers in the decision-making process. Many
research reports are rather bulky and unintelligible due to the use of technical language and
unnecessary details. Such reports are rejected or are not used meaningfully b) marketing
managers. This brings down the practical utility of MR.
(16)Passive nature: MR is passive by its nature. Sometimes, it becomes too superficial and faulty
in business management. Man) conclusions drawn from the marketing research activities may
be imaginary or not based on realities. Its use and effectiveness largely depend on the ability of
marketing executives to get the most promising results out of it. Marketing research by itself
may not give any benefit. It only shows the way to executives in the decision-making process.
(17)Fragmentary approach: On many occasions, marketing research tends to be fragmentary in its

approach. It suggests solutions that may be difficult to put into operation. This is because overall
13
marketing environment is not given adequate attention while suggesting the solution. Such
fragmentary approach is not useful for solving marketing problems in an integrated manner.
(18)Absence of effective communication: The research activity will be useful and result-oriented
only when there is meaningful dialogue between the marketing management and marketing
research team. However, such dialogue is ineffective in many organizations. This make' research
activity ineffective.
Inspite of the limitations noted above, MR is necessary and useful in marketing management.
SCOPE OF MARKETING RESEARCH / BRANCHES OF MR:
Marketing research is a subject with wide scope. Broadly speaking, it is concerned with the
marketing activities of an enterprise. All activities of a seller-to market his products to consumers
are covered by such research. Marketing research is primarily concerned with "4 Ps" of
marketing mix. These are: Product, Price, Place and Promotion. The scope of marketing
research is comprehensive and is actually widening in recent years. Products research, sales
research, pricing research, brand and package research, promotion research and customer research
arc the usual areas covered by MR. In addition, specialized research activities such as motivation
research, consumer satisfaction research, etc. are also undertaken to meet the specific needs of a
business unit. Additional areas and new methods of conducting research activities are regularly
added within the scope of MR.
In 1973, the American Marketing Association noted that marketing research activities were
undertaken on 36 different topics of 1322 companies interviewed. Even in India, large companies
conduct research activities on many marketing problems. Finally, it may be pointed out that
marketing research is essentially for solving the marketing problems of a business unit. Naturally,
research activities will be adjusted accordingly. This suggests that there is no limit to the areas
covered by marketing research. Everything connected with marketing comes within the scope of
MR.. The branches of MR are as explained below:
1. Product Research:
Product research relates to products that are to be marketed to consumers. It is useful for
introducing new product that will be agreeable to consumers. Product research relates to
various aspects such as design, development and introduction of new products, testing of
existing products, product modification studies and so on.
2. Packaging Research:
Packaging research is a part of product research and is important for making the products
attractive and agreeable to consumers. Packaging is now treated as a tool for sales promotion.
It attracts the attention of consumers and induces them to purchase products. Constant changes
in the package design are-required for sales promotion. For innovation in the package design/
packaging research is necessary. Packaging research is now treated as an independent branch
of marketing research. Such research is conducted in order to know the impact of packaging.
Branding and packaging normally go together and hence brand research is treated as a part
and parcel of packaging research.
14
3. Pricing Research:
Pricing research relates to pricing of the product It relates to analysis of pricing policies and
strategies, studies market price trends, fixation of market prices, studies relating to prices
charged by competitors, studies relating to future price trends, price incentives for sales
promotion and provision of price discount and other price concessions to dealers and
consumers.
4. Market Research:
Market research proper relates to analysis of consumer markets, assessment of market trends,
forecasting of business conditions, setting of sales territories and sales quota, sale potentials
studies, studies of wholesale marketing, demography descriptions of customers, market
competition studies, sale-forecasting, estimating demand for new products, analyzing relative
profitability of sales territories and monitoring competitive-marketing activities.
5. Sales Research:
Sales research relates to studies of sales outlets, sales territories and their revision, trends in
sales, sales forecasting, effectiveness of sales force, sales policies and sales performance and
so on.
6. Promotion and Distribution Research:

Promotion research related to assessing effectiveness of the sales force and selling efforts,
testing of media selected, advertising copy and assessing effectiveness of advertising
campaigns. The scope of this area of marketing research also includes the study of channels
of distribution for modification, distribution cost analysis of the physical distribution,
problems relating to warehousing, inventory control and handling of goods.
7. Consumer Research:
It relates to finding out consumers' needs and preference, consumers' purchasing intentions,
consumers' choice of brands, trends in consumer preferences and purchasing patterns
8. Policy Research:
Policy research activity is connected with the evaluation of effectiveness of marketing
policies, sales policies, distribution policies, pricing policies, inventory policies and so on.
Necessary changes in such policies are possible through intensive policy research studies.
9. Advertising Research:
It relates to evaluation of advertising effectiveness, analyzing competitive advertising and
selection of appropriate advertising media.
10. Media Research:

Different media are used for communicating message about the products to prospective
buyers. Media are used for advertising and publicity purpose. Newspapers, radio, TV
magazines, transport vehicles, etc. are the media used for advertising. Media research relates
to detailed study of different media for selection and use.
15
11. Motivational Research:

Motivational research is one aspect of consumer research as it deals with consumer behavior.
It studies "Why" aspect of consumer behavior. Consumer research is useful for finding out the
sentiments, buying motives, priorities and inner feelings of consumers. It is a type qualitative
research.
12. International Marketing Research:

International marketing research deals with foreign markets that are attractive and profitable
provided products and marketing activities are adjusted as per the need of foreign markets and
buyers. Such research is useful for exploring profitable foreign markets, for export promotion
and for making suitable modifications in the exportable items. Data collection about foreign
markets, market surveys, etc. are undertaken under international MR. Such research is costly
and time consuming as compared to internal research. However, it is a must in the case of
exporting companies. International MR is also undertaken by export promotion organizations
such as Export Promotion Councils and Commodity Boards.
APPLICATION OF MARKETING RESEARCH

A. TRADITIOMAL APPLICATION OF MARKETIMG RESEARCH
Traditionally, marketing decisions have been divided into 4P's - product, price, promotion and
place decisions.
I. NEW-PRODUCT RESEARCH
New product development is critical to the life of most organizations as they adapt to their
changing environment. Since, by definition, new products contain unfamiliar aspects for the
organization, there will be uncertainty associated with new products. New product can be divided
into four stages
16
a. Concept generation
There are two types of concept generation research. They are:
1. Need identification. The emphasis In need research is on identifying unfilled needs in the
market. Marketing research can identify needs in various ways. Some are qualitative and others,
such as segmentation studies can be quantitative. Following are some examples:
i. Perceptual maps, in which products are positioned along the dimensions by which users
perceive and evaluate, can suggest gaps into which new products might fit.
Multidimensional scaling is used to generate these perception gaps.
ii. Social and environment trends can be analyzed.
iii. An approach termed benefit structure analysis has product users identify the benefits desired
and the extent to which the product delivers those benefits, for specific applications. The
result is an identification of benefits sought that current product do not deliver.
iv. Lead user analysis the approach in which instead of just asking users what they have done,
their solutions are collected more formally. Lead users are positioned to benefit
significantly by solving problems associated with these needs. Once a lead user is
identified, the concepts that company or person generates are tested.
2. Concept identification. During the new product development process there is usually a point
where a concept is formed but there is no tangible usable product that can be tested. The concept
should be defined well enough so that it is communicable. There may be simply a verbal
description, or there may be rough ideas for a name, a package, or an advertisement approach.
The role of marketing research at this stage is to determine if the concept warrants further
development and to provide guidance on how it might be improved and refined
b. Product Evaluation and Development
Product evaluation and development, or product testing, is very similar to concept testing, in
terms of both the objectives and the techniques. The aim is still to predict market response to
determine whether or not the product should be carried forward.
1 Use testing - The simplest form of use testing gives users the product and after a reasonable
amount of time asks their reactions their intentions to buy it.
2. Predicting trial -Trial levels (the percentage of a sample of consumers who had purchased the
product at least once within 12 months after launch) were predicted on the basis of three
variables:
 Product class penetration (PCP)
 Promotional expenditure
 Distribution of the product
3. Pretest marketing - Two approaches are used to predict the new brand's market share.
 The first one is based on preference judgments. The preference data are used to predict the
proportion of purchases of the new brand that respondents will make given that the new brand
is in their response set.
 The second approach involves estimating trial and repeat purchase levels based on the
respondent's purchase decisions and intentions-to-buy judgments.
c. Test marketing
Test marketing allows the researcher to test the impact of the total marketing program, with all its
Interdependencies, in a market context as opposed to the artificial, context associated with the
concept and product tests that have been discussed. Test marketing has two primary functions.
 The first is to gain information and experience with the marketing program before making a
total commitment to it.
17
 The second is to predict the program's outcome when it is applied to the total
market There are really two types of test markets:
1. Sell-in test markets are cities in which the product is sold just as it would be in a national
launch. In particular the product has to gain distribution space.
2. Controlled distribution scanner markets are cities for which distribution is prearranged and the
purchase of a panel of customers are monitored using scanner data.
eariy stages of the product life cycle are sacrificed in the expectation that higher
volumes in later periods will generate sufficiently greater promts to result in overall profit
for the product over its life
III. DISTRIBUTION RESEARCH
Traditionally, the distribution decisions in marketing strategy involve the number and location of
sales persons, retail outlets, warehouses and the size of discount to be offered The discount to be
offered to the members in the channel of distribution usually is determined by what is being
offered by existing or similar products and also whether the firm wants to follow; a "push1 or a
"pull” strategy Marketing research, however, plays an important role in the number and location
in decisions about numbers and locations
a. Warehouse and Retail Location Research
The essential questions to be answered before a location decision is made are "What costs and
delivery times would result if we choose one location over another?"
Simulation of scenarios is used to answer these questions. The simulation can be relatively simple
paper-and-pencil exercise for the location of 3 single warehouse in a limited geographic area. or it
can be a complex, computerized simulation of a warehousing system for a regional or national
market
i. Center of gravity simulation - The center for gravity method of simulation is used to locate
a single warehouse or retail site In this method, the approximate location that will
minimize the distance to customers, weighted by the quantities purchased is determined
The more symmetry there is in customer locations and weights the more nearly the initial
calculation approximates the optimal location The location indicated by the first
calculation can be checked to be determine if it is optimal (or near optimal) by using a
"confirming” procedure. If it is not optimal, successive calculations can be made as
necessary to “home in" on the best location
ii. Computerized simulation models - The concept involved m simulations for this purpose is
quite simple Data that describes the customer characteristics (location of plants, potential
warehouse and retail sites) and distribution costs (costs per mile by volume shipped, fixed
and variable costs of operating each warehouse the effect of shipping delays on and
variable costs of operating each warehouse, the effect of shipping delays on customer
demand) are generated and input into the computer The computer is programmed to
simulate various combinations of numbers and locations of warehouses and to indicate
which one(s) gives the lowest total operating cost Effective results have been achieved by
using computer simulations to design distribution systems
iii. Trade area analysis - Formal models have been developed that can be used to predict the
trading area of a given shopping center or retail outlet based on relative size travel time
and image A variety of other techniques can be used to establish trading areas. An analysis
of the addresses of the credit card customers or license plates of the cars (by plotting the
addresses of the car owners) can provide a useful estimate of the trading area. Check-
clearance data can be used to supplement this information. The best, but also the most
18
expensive way of establishing trading area bound Aries is to conduct surveys to determine
them
iv. Outlet location research. - Individual companies and, more commonly, chains, financial
institutions with multiple outlets, and franchise operations must decide on the physical
location of their outlets). Three general methods involves plotting the area surrounding the
potential site in terms of residential neighborhood, income levels, and competitive stores.
Regression models have been used for location studies for a variety of retail outlets,
including banks, grocery stores, liquor stores, chain stores and hotels. Data for building
the model and for evaluating new potential locations are obtained through secondary data
analysis and surveys.
b. Number and location of Sales Representatives
How many sales representatives should be in a given territory? There are three general research
methods for answering this question.
 The first, the sales effort approach, is applicable when the product line is first introduced and
there is no operating history to provide sales data.
 The second involves the statistical analysis ofsales data and can be used after the sales
program is under way.
 The third involves a field experiment and is also applicable only afterthe sales program has
begun.
IV. PROMOTION RESEARCH

It focuses on the decision that are commonly made when designing a promotion strategy. The
decision for the promotion part of a marketing strategy can be divided in to (1) Advertising and
(2) Sales promotion. Sales promotion affects the company in the short term, whereas advertising
decisions have long-term effects. Companies spend more time and resources on advertising
research than on sales promotion research because of the greater risk and uncertainty In
advertising research.
1. Advertising research
Most companies concentrate on advertising because advertising decisions arc more costly and
risky than sales promotion decisions. Advertising research typically, involves generating
information for making decisions In the awareness, recognition, preference and purchasing stages.
What separates an effective advertisement from a dud? The criteria will depend, on the brand
involved and its advertising objective. However, following basic categories of responses are used
in advertising research in general and copy testing in particular
a) Advertisement recognition
b) Recall of the commercial and its contents
c) The measure of commercial persuasion and the impact on purchase behavior.
• Purchase behavior
- Coupon stimulating purchasing
- Split-cables tests. Information Resources Inc's (IRI) Behavior Scan is one of several split-cable
testing operations. Behavior Scan monitors the purchases of panel members as well as in-store
information such s special prices, features and displays.
• Tracking studies
19
When a campaign is running, its impact often is monitored via a tracking study Periodic sampling
of the target audience provide a time trend of measures of interest. The purpose is to evaluate and
reassess the advertising campaign, and perhaps also to understand why it is or is networking.
Among the measures that often are traced are advertisement awareness, awareness of elements of
the advertisement, brand awareness, beliefs about brand attributes, brand image, occasions of use,
and brand preference. Of particular interest is, knowing how the campaign is affecting the brand,
as opposed to how the advertisement is communicating the message.
• Diagnostics testing
A whole category of advertising research methods is designed primarily not to test the impact of a
total ad but rather to help creative people understand how the parts of the ad contribute to its
impact. Which are weak and how do they interact? Most of these approaches can be applied to
mock-ups of proposed ads as well as finished ads.
• Copy test validity
This test refers to the ability to predict advertising response.
* Budget decision
Arriving at analytical research-based judgments as to the optima! advertising budget Is
surprisingly difficult. However, there are research inputs that can be helpful. Tracking studies that
show advertising is either surpassing or failing to reach communication objectives can suggest
that the budget should be either reduced or increased.
• Media research
In evaluating a particular media alternative, it is necessary to know how many advertising
exposures it will deliver and what will be the characteristics of the audience. A first cut of the
vehicle's value is the cost per thousand (circulation), the advertisement insertion cost divided by
the size of the audience.
2. Sales Promotion Research
There are three major types of sales promotion: consumer promotion, retailer promotion and trade
promotions.
In consumer promotion, manufacturers offer promotions directly to consumers, whereas retail
promotions involve promotions by retailers to consumers. Trade promotions involve
manufacturers offering promotions to retailers or other trade entities. Trade entities can also
promote to each other. For ex ample, a distributor can offer a steep temporary price cut to retailers
in order to sell excess inventory. It is called trade promotions, since the recipient of the promotion
is a marketing intermediary.
Sometimes several manufacturers or several retailers combine in one promotion. These are called
cooperative promotions or promotion partnerships.
B. CONTEMPORARY APPLICATIONS OF MARKETING RESEARCH

1. Competitive Advantage.
The notion that achieving superior performance requires a business to gain and hold an advantage
over competitors is central to contemporary strategic thinking. Businesses seeking advantage are
exhorted to develop distinctive competencies at the lowest delivered cost or to achieve
differentiation through superior value. The assessing competitive advantage can be done in
number of ways. The methods can be broadly classified as market-based and process-based
assessment Market-based assessment is direct comparison with a few target competitors, whereas
process-based assessment is a comparison of the methods employed.
2. Brand Equity.
20
Brand equity is defined as a set of assets and liabilities linked to a brand that add to or subtract
from the value of a product or service to a company and/ or its customers. The assets or liabilities
that underlie brand equity must be linked to the name and/or symbol of the brand. The assets and
liabilities on which brand equity is based will differ from context to context. However, they can
be usefully grouped into five categories:
a) Brand loyalty
b) Name awareness
c) Perceived quality
d) Brand association
e) Other proprietary brand assets: patents, trademarks, channel relationships etc.
3. Customer satisfaction.
The measurement of customer satisfaction and its link to product/service attributes is the vehicle
for developing a market-driven quality approach This approach requires a sequential research
design that uses the results from each research phase to build and enhance the value of subsequent
efforts. During this process, it is imperative to study customers who were lost, to determine why
they left This issue must be addressed early in the system design The steps involved in customer
satisfaction is
a) Define goals and how information will be used
b) Discover what is really important to customers and employees
c) Measure critical needs
d) Act on the information
e) Measure performance overtime
f) Issues in questionnaire design and scaling in satisfaction research
4. Total quality management

TQM Is a process of managing complex changes In the organization with the aim of improving
quality.
The power of measurements is clearly visible in applications of quality function deployment
(QFD), a Japanese import used to make product design better reflect customer requirements. In
QFD. a multifunctional team measures and analyzes in great detail boih customers attitudes and
product attributes. Marketing research plays a crucial role atthis stage of the process. Then the
team creates a visual mtrix in order to find ways to modify product attributes (engineering
characteristics) so as to improve the product on the customer-based measures of product
performance. Along the way, the team must develop a series of measures of several different
types.
C. EMERGING APPLICATION OF MARKETING RESEARCH
1. Database marketing
A database is a customer list to which has been added information about the characteristics and
the transactions of these customers. Businesses use it to cultivate customers - as they seek new
customers.
Need
A database provides the means for research to support decisions. It enables profiling of customers
by searching for prospects who are similar to existing customers. It provides the means for
implementation of profitable programs of repeat business and cross-selling. It assists in marketing
planning and forecasting. Further a database can:
• Match products or services to customers' wants and needs
21
• Help select new lists or use new media that ft the profile of existing customers.
• Maximize personalization of all offers to each customer.
• Provide for on going interaction with customers and prospects.
• Pinpoint ideal timing and frequently for promotions
• Measure response and be accountable for results
• Help create the offers most likely to elicit responses from customers
• Help achieve a unique selling proposition (USP), targeted to appeal to your customers
• Integrate direct-response communication with other forms of advertising
• Demonstrate that customers are valuable assets.
Types of database
1. Active customers
2. Inactive customers
3. Inquiries
Benefits of database marketing

a) Customers are easier to retain than acquire. The first reason is that it takes five times the
energy and budget to get new customer a sit does to keep an existing one. Also, a
disproportionately small number of your customers generate a very large proportion of your
income.
b) Determine their "Lifetime Value”. Building a lasting relationship becomes the obvious way to a
prosperous and profitable future.
c) Developing relationships with customers. Understanding your customers' tastes and preferences
on an individual basis is the foundation for relationship marketing. Relationship marketing
combines elements of general advertising. sales promotion, public relations and direct
marketing to create more effective and more effective ways of reaching consumers. It centers
on developing a continuous relation ship with consumers across a family of related products
and services.
2. Relationship marketing
The relationship marketing process incorporates three key elements.
1. Identifying and building a database of current and potential consumers, which records and
cross-references a wide range of demographic, lifestyle and purchase information,
2. Delivering differential messages to these people through established and new media channels
based on the consumers' characteristics and preferences
3. Tracking each relationship to monitor the cost of acquiring the consumer and the lifetime value
of his other purchases.
Reasons for Inaccuracy in Marketing Research

(1) Human behavior is always unpredictable: MR deals with humans who are far more
complex and unpredictable than the subjects of physical sciences. A human being has ability
to think and react. The responses of human beings are different unda1 different situations.
These features of human behavior bring limitations on the findings of MR.. The conclusions
drawn may not be always identical, accurate and reliable. This makes the conclusions less
scientific.
(2) Human behavior is difficult to measure precisely: MR is not fully scientific as human
behavior is difficult to measure accurately Human beings are liable to change in their outlook
and behavior during the process of experimentation. Moreover, devices for measuring human
22
behavior are not available. This affects the conclusions drawn in the research work. General
conclusions about human behavior can be given. However, such rough estimates are not
completely scientific. In short, complexity of human behavior puts limitations on MR and
makes it less scientific.
(3) Human beings react differently under test conditions: MR is les^ scientific because human
beings react differently under different conditions or while testing. The human tendency is to
keep the real causes/reactions secret when interviewed for a research purpose. This affects the
quality of results of research project. Such results are not scientific to the fullest extent. It is
always difficult to collect reliable information from the persons selected for interview. It
equally difficult to verify the correctness of the information collected from them. This makes
MR less scientific.
(4) MR cannot be completely objective: MR cannot be completely objective as human beings
cannot be studied in complete isolation This is possible in laboratory work by physical
scientists, as they can shut off all outside influences during the period of experimentation
However an investigator in MR cannot be separated from the society. His attitudes and
interests are bound to affect research findings. This affects the conclusions drawn out of the
MR project.
(5) Human beings cannot be studied in isolation: In MR, it is not possible to study the behavior
of a consumer independently. It needs to be studied along with his personal interests, values,
attitudes and so on. This situation affects the behavior of the consumer and the findings of the
research work. The researcher has to conduct his study openly and has no control over the
external factors. As a result, the findings of marketing researcher are bound to be less
scientific.
(6) Dearth of reliable information: Information serves as the base of MR. The quality of
research work depends on the reliability of information collected. The information collected
in MR may not be accurate or complete. It is possible to draw only rough estimates/
conclusions from such information/data. This makes research conclusions less accurate and
reliable. Sometimes, even the attitude and approach of researchers, investigators, etc. may
make the research work less scientific.
CONSUMER ORIENTATION TO MARKETING RESEARCH:

MR is concerned with all types of marketing problems. They may related to product, price,
distribution, packaging and branding, publicity and sales promotion. All these problems are
required to be studied in the context of consumer and his expectations. In other words, MR in the
present marketing environment is essentially consumer-oriented and| not profit or product
oriented. In MR the consumer and his need, expectations and satisfaction/welfare are given
priority. All marketing aspects are studied in order to give convenience and satisfaction to
consumers. Consumer research is one important branch of MR as all research activities move
around the consumer and his satisfaction.
Consumer orientation to marketing research means making research activities pro-consumer

rather than pro-manufacturer. It also means giving more importance to consumers and their
satisfaction, expectations, needs, etc. and not merely to sales promotion and profit to the
manufacturer. Such orientation is essential as consumer is the center of all marketing activities
and his satisfaction is the base or basic consideration in modern business.
23
This consumer orientation to MR is the result of modern concept of marketing, which is basically
different from the traditional concept of marketing. It is consumer-oriented and service-oriented.
It is societal in character. As a result, in the marketing research activities, special attention is now
given to consumers. All research activities are for making marketing useful, agreeable and
acceptable to consumers. This is what is described as consumer orientation of MR. Research
activities are now made pro-consumer rather than pro manufacturer or trader. Even research
techniques and methodologies are adjusted according.
The importance of consumer is now accepted not only in MR but also in all aspects of business
management. In fact, consumer is the most important person in business. He is the king and
should be treated accordingly. All production and marketing activities are for meeting his needs
and also for raising his satisfaction and welfare. He is the cause and purpose of all business
activities. Finally, modern business is not profit-oriented but consumer oriented or service
oriented. All these arguments are equally applicable to MR. In other words, MR activities move
around the consumer and his satisfaction. He is the focus point in all research projects as MR is
essentially for adjusting the marketing activities as per the expectations of consumers. This clearly
suggests the importance of consumers in all MR activities.
Marketing research helps the management to be consumer-oriented in its policies and decisions.
The benefits of MR will not be available if consumer and his needs, conveniences, expectations,
etc. are not given due attention. This suggests that neglect of consumers in any type of research
activity is undesirable and even dangerous. The benefits of marketing research will be available
only when research activities are conducted after due regard to consumer who acts as the center of
all marketing activities. Information available from consumer research can be used as a
foundation for many important marketing decisions.
Finally, it may be noted that there is nothing wrong in making MR activities pro-consumer. In
fact, this trend exists since the early growth of marketing research activities. Consumer is
important in all marketing activities and the same rule is applicable to MR activities. Research
activities without due consideration to consumers may not give expected results. In fact, the
purpose of MR is to find out precisely what the consumer wants and how to make
marketing activities agreeable to consumers in all respects such as product, price, packaging,
promotion j and so on. In brief, MR as a subject has consumer-orientation in all its| aspects.
Consumer/Customer is the cause and purpose of all marketing research activities. How to make
consumers happy and satisfied is the| basic issue before the researchers. At present, all
manufacturing/, marketing companies spend huge money on marketing research. The purpose is
to make marketing activities consumer oriented.
NEED OF MARKETING RESEARCH

The following factors suggest increasing need of MR:
1. Growth and complexity of markets: Markets are no more local in character. They are now
national and even global in character. The marketing activity is becoming increasingly complex
and broader in scope as more firms operate in domestic and global markets Manufacturers find
it difficult to establish close contact with all mark and consumers directly. Similarly, they have
no control on the marketing system once the goods are sold out to middlemen. The marketing
procedures are now, complicated. The market competition is also severe
24
This situation creates new problems before the manufacturers, which can be faced effectively
through MR as it acts as a feedback mechanism to ascertain first hand information, reactions,
etc. of consumers and middlemen. Marketing activities can be adjusted accordingly.
2. Wide gap between producers and consumers: Market research is needed as there is a wide
gap between producers and consumers in the present marketing system. Due to mass sc
production and distribution, direct (personal) contact between product and consumers is
practically lost. This creates information gap between producers and consumers. The
middlemen dominate the market] scene. Producers do not get dependable information as
regards nee expectations and reactions of consumers. They are unable to adjust the products,
packaging, prices, etc. as per the needs and requirements consumers.
The problems created due to information gap can be solved Q] through MR as it is possible to
establish contact with consumers a collect first hand information about their needs,
expectations, likes & dislikes, preferences and special features of their behavior. Thus
marketing research enables a manufacturer to make his marketing policies pro-consumers.
Effective communication with consumers is a possible through MR activities. Thus, MR is
needed for removing wide communication gap between producers and consumers.
3. Changes in the composition of population and consumption pattern: In India, many

changes are taking place in composition of population. There is a shift of population from rural
urban areas. There have been considerable changes in the consumption and expenditure
patterns of consumers in India. The incomes of people, in general, are rising. This brings
corresponding increase in the purchasing capacity and buying needs and habits. The rising
prices affecting the lower and middle class consumers and their purchasing power and
purchasing priorities. Similarly, there are considerable changes in the purchasing pattern of
clothing and other consumer items. The demand for consumer durables is fast increasing. The
markets now flooded with consumer durables like TV sets and so on.
Manufacturers are expected to know such qualitative & quantitative changes in the consumer
preferences and their consumption pattern. For achieving this objective, MR activities are
necessary and useful. It is possible to adjust production and marketing operations as per the
information supplied from consumer surveys and market surveys conducted under various MR
projects. In brief, MR is needed for the study of changes in the pattern of consumption and
corresponding adjustment in the marketing planning, policies and strategies.
4. Growing importance of consumers in marketing: Consumers occupy key position in modern

marketing system. They are now well informed about market trends, goods available, consumer
rights and protection available to them through consumer protection acts. The growth of
consumerism has created new challenges before manufacturers and traders. Even growing
customer expectations create situation when manufacturers have to understand such
expectations and adjust the production and marketing policies accordingly. Indifference
towards consumer expectations may lead to loss of business. In the present marketing system,
consumers cannot be taken for granted. Their expectations need special consideration in all
marketing activities. Production needs to be adjusted as per the expectations of consumers.
Marketing research particularly consumer research gives valuable data relating to consumers. It
is possible to use such data fruitfully while framing marketing policies. Thus, marketing
decisions can be made pro-consumer through marketing research activities
25
.
5. Shift of competition from price to non-price factors: Cutthroat competition is unavoidable in
the present marketing field. Such competition may be due to various factors such as price,
quality, packaging, advertising and sales promotion techniques. Entry of new competitors
creates new problems in the marketing of goods and services. In addition, market competition
is no more restricted to price factor alone. There are other non-price factors such as packaging,
branding, after-sale service and advertising which create severe market competition. Every
producer has to find out the extent of such non-price competition and the manner in which he
can face it with confidence.
MR is needed as it offers guidance in this regard. A manufacturer can face market competition
even by using certain non-price factors. The shifting of competition from price to non-price
factors has made marketing of consumer goods more complicated and challenging. This
challenge can be faced with confidence by using certain measures suggested through marketing
research.
6. Need of prompt decision-making: In competitive marketing, marketing executives have to

take quick and correct decisions. Companies have to develop and market new products more
quickly than ever before. However, such decisions are always difficult. Moreover, wrong
decisions may bring loss to the organization. For correct decision-making, marketing
executives need reliable data and up-to-date market information. Here, MR comes to the rescue
of marketing managers. Problems in marketing are located, defined analyzed and solved
through MR technique. This suggests its need as tool for decision-making. MR is needed as a
tool for reasonably accurate decision-making in the present highly competitive marketing
system.
7. Problems in the distribution system: Modern distribution system is complex and costly. How
to market goods efficiently and economically is a basic issue in the present marketing system.
Modern production is now possible because of the use of advanced technology. However
efficient distribution is rather difficult. For this, it is necessary to identify new markets, new
consumers, new channels of distribute and new sales promotion techniques. For such
identification, MR needed.
The cost of marketing is fast increasing in modern marketing. The burden of rising marketing
cost is normally passed on to consumers. This creates adverse effects on marketing activities.
In brief, obstacles large scale distribution and rising distribution costs are two problems in the
present marketing system. These problems can be studied & solved through MR activities
relating to products, distribution channel consumers and so on. This suggests the growing need
of MR.
8. Recent developments in science and technology: Science and technology are making rapid
progress. In fact, the impact of such progress touches all aspects of commercial and industrial
activities. Me products are manufactured and brought in the market. Articles with good
demand become old and out-dated within a short period Consumers prefer new/novel articles
in place of old ones. Produce and distributors find it difficult to take decisions due to lack
knowledge about future market trends. Here, marketing research useful as it provides
information about future trends in the markets field and enables marketing managers to take
quick and corn marketing decisions. This suggests the need of marketing research.
9. Existence of large size enterprises: Modern manufacturing enterprises are large in size. Such
enterprises can work as viable units and make progress only when their products are made
26
popular with the consumers. Large-scale enterprises need distribution of their products on a
massive scale. Here, MR is useful. It helps the enterprises explore, identify and locate new
consumer markets. It suggests the ways and means for large-scale distribution of goods at the
national/global level. In brief, MR is needed as an essential element of large scale
manufacturing and marketing.
The factors noted above clearly suggest the growing need of MR in | the present consumer-
oriented marketing system. It is needed in order to reduce the risks and uncertainties in the
marketing activity. It supports 1 marketing managers while dealing with the marketing
problems. Marketing research is needed as it acts as a key factor in successful marketing of
goods and services.
ROLE OF MARKETING RESEARCH IN MARKETING MANAGEMENT:

(i) Close relationship between MR and Marketing Management: Marketing management
covers different areas of marketing such as production, packaging, branding, pricing, distribution,
advertising and sales promotion. Marketing research activity is closely integrated with all these
key areas of marketing. It is an integral part of scientific marketing management. This is natural
as marketing research deals with the different marketing problems of a company and offers
guidelines to marketing managers in solving such problems. In brief, marketing research acts as
one useful and reliable tool for framing marketing policies and decision-making in regard to
different aspects of marketing. It plays an important role in marketing management.
MR collects and provides information to marketing managers for decision-making. It studies
certain marketing problems and offers suggestions for solving them. It also acts as the intelligence
wing of marketing management.
Marketing management and marketing research are inter-related activities. In fact, marketing
research cannot exist as a watertight compartment nor has it any existence independent of
marketing management. It must be a part and parcel of the problem-solving process of marketing
management. MR activities in any organization must be directly related to the marketing
problems faced by that organization. This is natural as MR cannot be effective, if it is assigned
some portions of a marketing problem for exploration in a piecemeal manner. It must be supplied
with the full background required to study the whole problem in depth. This will enable the
researcher to provide reasonably accurate solution to the problems faced by the marketing
managers. Similarly, MR will be effective/purposeful, if the research activities are conducted in a
regular and continuous manner and also as per the specific needs of the marketing management.
(ii) Need of effective integration between MR and Marketing Management: Marketing

research needs to be treated as a part and parcel of total marketing management. It has to operate
as a problem-solving tool of marketing management or as an intelligence wing/tool of marketing
management. Similarly, MR should not be conducted merel1 as an academic activity but as a tool
for decision making by the marketing managers. It should facilitate quick and reasonably correct
decision-making by the top-level marketing managers. MR should act as an aid to decision-
making in the marketing management.
This suggests that there should be effective integration in between marketing management and
marketing research. Both these activities should be effectively co-ordinated. This will ensure
efficient management of marketing activities of a company. There is no scope for any conflict in
between the two as such conflict is undesirable to the company itself. However, on many
27
occasions, differences of opinion and discord between research department and management are
visible Keane, John G has spelt out the conflicting points of view of the to management and
marketing researchers in the areas of research responsibility, research personnel, budget,
assignments, problem definition, research reporting and use of research.
MR will be effective/purposeful only when there is close c ordination between research and actual
management. Research activities must be necessarily relevant to the marketing problems. Both
(researchers and top-level management) should have a clear understanding and appreciation of
each other's position and role. However, in practice, conflicts are noticed between the top-level
management and the researchers. Such conflicts should be avoided.
(iii) Responsibility of top management for effective integration: The top management should
accept honestly that the researchers have a capacity to study marketing problems and offer
valuable suggestions for solving the marketing problems. In addition, adequate budget provision
and all necessary facilities should be provided to the researcher to investigate marketing problems
minutely and make suitable recommendations. The top management should keep meaningful
communication with the marketing researchers in a continuous manner. The bias attitude towards
them is certainly undesirable. Finally management should avoid too many layers of
communication between top management and researchers. It is also desirable to discuss the
recommendations of researchers with open mind. Such liberal outlook will make MR activities
useful to the marketing management.
The researchers should also adopt open and constructive approach towards the top-level
management. In the research project, attention should be given to the plans and priorities decided
by the top-level management. The researchers should continuously improve the research
methodology and see that their reports and recommendations are easily acceptable to the
management. Delay in the research work should be avoided as top-level management can
consider the recommendations if received in time as the nature of marketing problem changes in
the course of time.
0n some occasions, the management is not convinced about the utility of marketing research. This
may be due to past experience in regard to research activity undertaken. The other reasons for
unfavorable opinions about marketing research include delay in the completion of research work,
heavy expenditure involved, bulky and confusing report and finally recommendations made are
not convincing and practical. The result is that the management forms negative impression about
the very concept of marketing research. The company management fails to understand the
practical utility of research work. It feels that MR is an unnecessary activity and funds should not
be spent on the same. It is as good as waste of money as positive benefits may not available. Such
negative opinion formation is the result of previous experience of the firm. It is a type of criticism
of the researchers who failed to submit promising, result-oriented and practical research report. It
need not be treated as the criticism of marketing research activity itself. The adverse opinions of
companies on marketing research are undesirable and even dangerous to the future growth of MR
activity. Here the responsibility lies on the researchers. They have to conduct research work
honestly and also by taking keen interest in the proposed research project. As a result, the research
report and recommendations 11 be promising and easily acceptable by the management. The
marcher should prepare the outline of research project properly and place it before the
management in a convincing manner. As a result, the management will be convinced about the
utility of marketing research project and will be willing to spend money on the same. "Many a
times, management is not convinced about the utility of marketing research and discards it as an
28
unnecessary activity over which no funds should be spent." is possible when the research project
is not prepared and placed properly before the management for consideration and approval.
(iv) Responsibility of researchers for effective integration: The researchers should use their
skills, experience and knowledge while conducting the research activities. Finally, they should
maintain persuasive communication as inadequate/poor communication creates bias attitude on
the part of top-level management. As a result, the recommendations are rejected or not used in
actual practice. In addition, the superiority of the top-level management in the decision-making
process should also be honored. The approach should be to help the management in all possible
ways. Such positive/constructive approach on the part of researchers will enable them to make
purposeful contribution in the field of marketing management.
(v) Present Position: MR is now given more creative role as compared to the conventional role
where it was used just for studying buyer behavior or for the feasibility studies for new products
to be introduced in the market. MR until the mid-1980s, was considered a luxury, which only
multinationals could afford. However, all companies now feel the need of MR due to growing
competition and liberalization. Realizing the contribution that MR makes, more and more
companies in India are now turning to MR.
INTERACTION BETWEEN MANAGEMENT AND MARKETING RESEARCH
Marketing research is a useful tool available at the disposal of management. At all stages of
marketing cycle it can be used. On the other hand in certain quarters misunderstandings have
cropped in about each other. Many organizations feel that marketing research is not at all needed.
On the other hand, marketing researchers point out the lack of appreciation for their work by the
organization.
Some of the organization’s complaints about marketing researchers are:

1. Research is not problem-oriented. It tends to provide a plethora of facts, not actionable results.
2. Researchers are too involved with techniques, and they appear to be reluctant to get involved in
management problems.
3. Research is slow, vague and of questionable validity.
4. Researchers cannot communicate, they do not understand and they do not talk the language of
management.
Marketing researchers have the following complaints:

1. Management organizations do not include researchers in discussions of basic problems.
Management tends to ask only for specific information about parts of problems.
2. Management pays no more than lip service to research and does not really understand or
appreciate its value.
3. Management does not allow enough time for research. They draw preliminary conclusions
based on early or incomplete results.
BENEFITS OF MARKETING RESEARCH
General benefits of marketing research are

1. Marketing research has made the job of forecasting and decision making easier by applying
scientific norms.
29
2. Through this, the changing tastes of the consumers could be identified and the firm can
suitably alter its production pattern or bring a new variety to meet in needs of the consumers.
3. By means of marketing research the type of competition that exists and the ability of the other
manufacturers could be identified.
4. It helps the sales manager to push activities further thereby to enrich the sales as well as to
find new markets and new customers.
5. It tells the management where the company stands in its industry
6. It tells management what the industry trends are & likely to be.
7. It is an essential tool in appraising and improving sales management effectiveness. Specific
activities in this area include measuring variations in territorial sales yield, market share, sales
effectiveness, measuring the effectiveness of individual salesmen and analysis of salesmen's
activities.
8. It is an essential tool in the development and introduction of new products.
9. Supplies data to be used in salesman's and territorial quotas planning.
10. Supplies the facts for fixing the budget.
11. Helps determine the advertising methods that should be used and the angle that should be
employed in the advertising copy.
12. Furnishes facts to convince dealers of the selling possibilities of given articles and to help them
to increase their sales.
13. Predicts the trend of business conditions in given industries and furnishes a basis for promotion
programs.
14. Ascertains the consumer's likes and dislikes.
15. Reports the methods used by the dealers, display, advertising and selling
16. Measures the stock in the dealer's hands.
17. Finds the dealer's reactions to given policies.
18. Furnishes data for fixing dealer's territories and quota.
19. Finds out and tabulates statistics in which the concern is particularly interested.
20. Keeps one informed about the developments in other industries, which may affect the business
of the firm.
21. Measures the purchasing capacity of a given territory.
22. Discovers new uses for the product.
23. Analyzes the cost data that are available in published form.
24. Studies the organization of the concern with a view to suggesting changes or improvements
(A) BENEFITS OF MARKETING RESEARCH TO TOP-LEVEL MANAGEMENT:

Top management is concerned with the decision-making and policy framing at the highest level as
regards production, marketing and so or it is the highest level planning, policymaking and
controlling authority in the organization. The top-level management of a business unit includes
Directors, Managing Director and other top-level marketing executives and other executives. Top-
level management has to take marketing decisions such as fixing short-term and long-term
marketing objective and sales targets, finalizing marketing policies and strategies, evaluating
marketing performance, forecasting sales, allocating resources t marketing activities and selecting
suitable marketing channels. For taking decisions on these matters, reliable and updated data are
requires and the same are provided by the MR department. This is one service that MR
department provides to top-level management. It facilitates decision-making on marketing issues
by providing necessary information on the marketing and other aspects of business.
The top-level management needs feedback on current marketing environment and the MR
department can provide this quickly. The feedback required in this regard can be provided in a
30
continuous manner by the research department which studies marketing problems of the company
in a regular and continuous manner. The research department is supposed to supply information to
the top-level management on the following aspects of marketing:
(1) Current business environment (more particularly marketing environment) faced by the
company and the changes likely to take place in the near future.
(2) Trends in consumer behavior, demographic information and consumer needs/expectations.
(3) Changes in consumer purchasing power and data on demand and supply position in the
market.
(4) Trends about market competition and marketing policies of major competitors of the company
and their marketing strategies.
(5) Availability of better/cheaper raw materials and technology for manufacturing superior quality
goods at lower costs.
(6) Feedback on the marketing performance of the company and the challenges that it is facing.
(7) Sales force requirement, recruitment and development.
(8) Marketing opportunities available (domestic and foreign) and the marketing challenges likely
to develop in the near future.
(9) Any other information that the top management is expected to know for correct marketing
decision-making and policy framing.
The top-level management can take reasonably correct decisions in the following marketing areas
with the help of updated feedback available from the marketing research department:
1. Deciding the long term marketing objectives and setting marketing plans, policies and
strategies to achieve marketing objectives.
2. Designing of product or modifications in the existing products.
3. Determining the product line and adjusting the products as per the needs and expectations of
consumers and allocation of resources among various products and marketing activities.
4. Improving the brand or package design, color, etc.
5. Fixing fair pricing of the product.
6. Fixing marketing strategies in order to face the competitors’ ever-changing market
environment.
7. Selecting suitable channels of distribution for large scale an economical marketing of
company's products.
8. Estimating sales i.e. sales forecasting for adjusting production and marketing activities of the
company.
9. Designing internal mechanism to monitor and evaluate performance of marketing department
and introduction of remedial measures, if required.
In brief, MR is the crucial analytical tool and provides management with vital strategic and
tactical information for decision-making. It guides management in the decision-making process.
However, the final decision is to be taken by the top management. The feedback of Marketing
department certainly plays a positive role in the correct decision making This suggests the
importance and benefits of marketing research to top level management of the company.
(B) BENEFITS OF MARKETING RESEARCH TO GOVERNMENT:

Marketing research at the government level is conducted by various government departments
concerned with agriculture, industry, commerce, industrial production, exports and imports,
finance, foreign exchange and so on. These departments collect information on various aspects of
national economy. In addition, government companies, public corporations, public sector banks,
RBI/ etc. also collect information about various aspects of national economy.
31
In India population census, (census survey) crop surveys, surveys of industrial production,
wholesale and retail prices, cost of living index, estimates of imports and exports etc. for the
future period are conducted regularly. In addition, needs of various sectors of the economy are
estimated. Information collected through these sources is used while deciding government
policies, budgets, funds allocation, etc. This suggests how research activities are given adequate
importance attention at the government level. The data collected through census and other surveys
are used while framing economic policies, long term development plans, allocation of resources
and so on.
MR at the government level is useful in the following areas:

(1) Planning and controlling national economy: For planned economic development,
available resources must be allocated in different sectors of the economy in a rational
manner. Nation priorities must be decided clearly. The future needs of the economy must
be estimated properly and arrangements need to be made meet them properly.
Misdirection of resources must be controlled effectively. For such planned economic
development, data on important aspects of the economy need to be collected. For this,
research activities should be undertaken at different levels.
(2) Control on production, distribution and other marketing activities: Government
conducts various marketing activities on a large scale. It conducts production, looks after
distribution and even restricts consumption of certain commodities through its marketing
operations. The government has to bring equitable distribution of goods particularly
essential commodities. Reasonable prices need to be maintained for social good.
Production needs to be adjusted as per the needs of the entire economy. All such
objectives can be achieved through appropriate policies. For the introduction of such
policies, marketing research activities in the form of surveys, estimates and collection of
data are useful. Research studies are also useful for the calculation of needs of the people,
production required, consumption patterns of people and so on.
(3) Control on exports and imports: Exports and imports are usually regulated by the
government through suitable Exim policy. Exports must be adjusted as per the needs of
the economy and also as per the surplus production available. Imports must be allowed to
supplement the internal production. Large-scale imports are also necessary for export
promotion. Proper policy decisions in this regard are necessary and are also visible in the
Exim policy of the government. For framing such policy, adequate data must be available.
This is possible through research activities. Surveys conducted are useful for estimating
surplus production for exports, domestic consumption and imports required to be made. In
brief, appropriate decisions as regards exports and imports can be taken with the help of
data available through MR activities conducted at the government level.
(4) Use of MR in Miscellaneous areas: Marketing research is useful to the government in
many other areas of national economy. Such areas are: production plans (targets) in regard
to consumer goods and industrial goods, foreign exchange requirement for the future
period, regulation of production and prices, equitable distribution of goods and services,
resource allocation and allocation of funds to social service at reasonable prices and so on.
Census reports arc useful to the government for policy framing and decision-making on
various social services such as facilities of primary education, and allotment of funds for
primary education, provision for sports and recreation facilities, provision for medical
facilities and provision for family planning and welfare facilities.
32
In brief, marketing research is useful to the government in bringing economic stability and
economic growth. The government can take correct decisions about various aspects of national
economy with the help of the feedback provided by marketing research activities. Finally, it can
solve economic problems and difficulties with the help research activities undertaken at the
government level. This suggests the importance of marketing research at the government level.
(C) BENEFITS OF MR TO ADVERTISING AGENCIES:

Advertising agencies are specialized professional service agencies that offer different services to
their clients as regards advertising and publicity through different media including press, TV and
radio. Such agency performs various functions and offers varied services to its clients by charging
necessary fees. Such services include booking space and time for advertising, preparation of
advertising copy, organizing advertising campaigns of clients, offering guidance to the clients as
regards packaging, branding, product modification and so on. Selection of suitable media for
advertising, copy writing, testing effectiveness of advertising, advertising planning of the clients
are some more functions/services offered by advertising agencies. Some agencies even conduct
marketing research activities on behalf of their clients.
In order to conduct its activities efficiently, an advertising agency needs adequate information and
latest trends as regards advertising and marketing. Such information includes product details,
readership details, details of different advertising media, media rates and so on. Such information
is available from different sources such as data published by newspapers, TV, radio, advertising
magazines and so on.
An advertising agency also needs information as regards new trends and techniques used in
advertising, legal and other restrictions on advertising and publicity in India, details of different
advertising media (i.e./ rates, coverage, audience, popularity of the media, etc.). Information about
market competition, new products available in the markets, advertising campaigns of competitors
of its clients, etc. is also required by an advertising agency. For this, the agency has to conduct
research activities in the field of advertising and marketing.
An advertising agency has to collect and maintain all such information in an orderly manner for
quick reference. It has to collect all useful data from different sources. Data already published on
advertising and allied subjects need to be stored by the agency for ready reference. In addition, the
agency has to conduct research activities in order to collect necessary information useful for the
conduct of its functions. A well-maintained reference library is also necessary in the case of an
advertising agency. Such activities will provide suitable feedback to the agency and the agency
will be able to offer efficient services to its clients. This suggests the importance of MR and MIS
in the case of advertising agencies.
MR supports advertising agencies in regard to advertising activities. It provides reliable and

updated information for correct decision-making on advertising budgeting, media planning,
selection of advertising media for the clients and checking advertising effectiveness. An
advertising agency can arrange advertising campaigns of its clients with the support of data
available through MR. Finally, an advertising agency can give proper guidance to its clients on
advertising matters with the help of information available through research activities on press,
media, and so on.
(D) BENEFITS OF MARKETING RESEARCH TO WHOLESALERS:
33
MR is beneficial to wholesalers in the following areas of their business:

(1) Location of business establishment: Every wholesaler has to locate his business
establishment at a convenient place. Location includes location of main office, branches,
warehouses and so on. The cost of marketing will be low if the location is optimum. Here,
researchers undertake a survey of available convenient places and suggest the convenient places
for locating business establishments. Thus, for selection of convenient location, locational survey
is useful.
(2) Selection of sales territory: Every wholesaler has to select promising area for his business.
This selection is important as turnover and profit are related to the sales territory selected. For
such selection, the features of product to be distributed, market demand of different areas,
purchasing capacity of customers, possible increase in demand in future, possible benefits of sales
promotion measures, etc. need to be taken into consideration. Researchers undertake surveys of
different trading areas and suggest the best trading area to the wholesaler.
(3) Reduction of distribution/marketing cost: Every wholesaler will like to reduce the cost of
distribution as his net profit is closely linked with the cost of distribution. This cost includes
expenditure on advertising, services to retailers, discount and credit facilities offered, arrangement
for delivery of goods to retailers and so on. Such distribution cost needs periodical review in order
to check wastage and liberal expenditure on distribution. Reducing distribution cost is difficult
due to market competition but efforts should be made in this regard with the help of experts i.e.
researchers. They suggest ways and means to bring down the cost of distribution without any
adverse effect on total sales.
(4) Decision on number of commodities for distribution: Every wholesaler has to decide the
number of product lines he can handle efficiently. He has to decide the number of items that he
can distribute effectively. Sometimes, marketing of limited items with good demand may be
profitable. Similarly, stocking of different items may prove to be costly. In addition, every
wholesaler has to consider his financial position, manpower available and storage facilities
available while deciding the number of items for the business. Marketing researcher can study all
relevant facts and offer suitable guidance to the wholesaler in this regard.
(5) Storage and handling of goods: Every wholesaler has to maintain adequate stocks for
smooth and regular supply of goods to retailers. Naturally, he has to give attention to storage,
handling and transportation of goods. He has to conduct these activities economically. The
wholesaler can undertake studies in these areas in order to find out ways and means for handling
these activities speedily and economically. For this, research studies are useful.
(6) Miscellaneous benefits to wholesalers: Marketing research is also useful to wholesalers
while dealing with other aspects of marketing. They include cost-profit analysis, stock handling
and delivery procedure, credit recoveries, incentives to retailers for their loyalty, sales promotion
measures and so on.
In short, MR offers guidance to wholesalers while dealing with their problems and difficulties. It
is useful for the expansion of business and also for raising the margin of profit in the business.
Wholesalers can undertake such research directly by making suitable internal arrangements. They
can even study the published material and use it for the benefit of their business operations. Many
wholesalers do not conduct their own research studies but take advantage of research studies
conducted by others.
(E) BENEFITS OF MARKETING RESEARCH TO CONSUMERS:

Consumers do not conduct MR activities on their own. However, the benefits to all research
activities are available to consumers. In fact, the purpose of MR is to study/understand the needs,
expectations, problems, etc. of consumers and to give maximum possible convenience and
satisfaction to them. This suggests that consumers secure the maximum benefits of research
34
activities indirectly as all research activities are basically for the benefit and convenience of
consumers.
The benefits of MR to consumers are as noted below:
1. Supply of goods and services as per the needs and expectations of consumers. MR provides
wide choice to consumers. Consumers get wide variety of goods at fair prices due to MR
activities.
2. Suitable adjustments in the products (as per the requirements of consumers) through
product planning, product innovation and product modification.
3. Supply of goods at right place, time and also at the right price.
4. Better return (in terms of convenience, satisfaction and welfare) of the price paid for goods
and services.
5. Protection of the rights of consumers and prompt redressal of complaints relating to price/
quality, use, etc.
6. Availability of new / innovative products as per current socio-economic-cultural needs.
7. Provision of wide variety of goods for the convenience of consumers.
8. Better quality after-sales services.
9. Fair treatment and prevention of exploitation of consumers.
10. Production as per the expectations of consumers.
11. Provision of wide choice to consumers.
(F) BENEFITS OF MR TO SMALL BUSINESSMEN:

In general, MR is useful to all categories of businessmen - small or big. Small businessmen
include small-scale manufacturers, small-scale dealers, retailers and so on. They can adjust their
business policies and \ activities as per the information available from the research activities. They
can take decisions regarding location of business/ sales territory, commodities for manufacturing
or marketing, sales promotion policies, storage of goods, credit policies, pricing policies and so on
with the help of information available through research activities.
A small businessman may not be able to maintain separate research department for the conduct of
research activities. However, he can collect necessary information from census reports, other
financial and marketing reports, etc. published by different agencies. He can even refer to market
reports and other reports on current economic issues and adjust his business policies accordingly.
This is how marketing research is useful to small businessmen in the conduct of all their business
activities properly and with foresight, imagination and vision.
Small businessmen have to adjust their business policies and activities as per the need of the
situation. Here, they use the research techniques (knowingly or unknowingly). This suggests that
marketing research is useful to large business houses as well as small businessmen. In the case of
small businessmen, the use of MR may not be extensive as in the case of large business houses.
However, small businessmen study market situation as per their business needs, use available
information on market competition, consumer needs, etc. and adjust their business plans, policies
and operations according. This is precisely the manner in which they use marketing research for
their benefit.
Reasons for the Failure of Marketing Research:

1. There is resistance on the part of the business executives to use research, because they think
that research is a threat to their personal status. They also think that marketing research may
expose them adversely.
35
2. Sometimes, the executives develop their own objectives, which are in conflict with the
organization, and they want research to support their views rather than the views of the
organization.
3. The executives are unable to use specialists effectively. Marketing research presently draws on
a variety of specialists from such disciplines as mathematics, statistics, economics, psychology,
sociology, general semantics, anthropology, etc.
4. Marketing research department is often isolated from key departments.
CHARACTERISTICS OF GOOD MARKETING RESEARCH

The duty of marketing research is to solve the problems of the organization relating to its sales
and related marketing issues. As such it is considered to be a primary tool by several
managements and as a secondary tool by many managements. In spite of its drawback of arriving
at exact results with complete accuracy, corporate world has accepted its relevance. One such
drawback posed against marketing research is its cost-effectiveness. If the tools used are crisp and
less costlier its service could be welcomed by all. For such recognition marketing research must
possess certain characteristics, which are mentioned by Philip Kotler as follows:
1. Scientific method: Competent marketing research is characterized by an attempt to follow the
scientific method, careful observation, formulation of hypotheses, prediction and testing.
2. Research creativity: At its best, marketing research develops innovative ways to solve a
problem.
3. Multiple methods: Competent marketing researchers keep away from over reliance on any one
method, preferring to adopt the method to the problem rather than the other way round. They
also recognize the desirability of the simultaneous gathering of information in different ways to
give greater confidence than any one method would provide.
4. Interdependence of models and data: Competent marketing researchers recognize that the
facts do not speak for themselves but rather derive their meaning from models of the problem.
They attempt to guide their search for information on the basis of causal decision model to help
the executive.
5. Value and cost of information: Competent marketing researchers show concern for measuring
the value of information against its cost. Value/cost is a consideration when the Marketing
Research Department chooses which research projects to conduct, which research designs to
use and whether to gather more information.
BASIC VS. APPLIED MARKETING RESEARCH:

Research can be divided into two classes viz., basic research and applied research.
(1) Basic Research
Often basic research is called 'theoretical’ 'pure' or 'fundamental' research. It is not directly
concerned with solving marketing problems. Primarily it aims at improving academic knowledge
about the subject matter. Basic research does not deal with commercial problems but it relates to
fundamental questions concerning the business and allied subjects. Basic research may address
itself to issues like economic and political changes in a country or reasons for changes in lifestyles
in youth.
(2) Applied Research
Applied research directly deals with commercial problems. It tackles the business problems and
attempts to find alternative solutions to the problems. Applied research may relate to locating
reasons for fall in sales or to introduce a new brand of product.
36
Applied research can be of two types (a) problem-solving research and (b) problem-oriented
research. As the name indicates problem-solving research relates to a specific problem. This
research can be conducted either by the marketing research department of the firm or by an
outside research agency. By contrast problem-oriented research deals with problems that may be
of interest to many firms. This type of research puts into practice the knowledge obtained through
basic research.
37

Prof. Hemant Kombrabail

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Prof. Hemant Kombrabail

Uploaded by

Copyright:

Available Formats

TYBMS Prof.

MEANING OF MARKETING RESEARCH

MR is a special branch of marketing management. It is comparatively of recent in origin. MR acts

MR techniques are used by manufacturers/exporters/distributors and service organizations to

DEFINITIONS OF MARKETING RESEARCH:

Let us now, consider some definitions of MR:

FEATURES OF MARKETING RESEARCH:

(b) In MR, information is to be collected objectively and accurately: This feature of MR

CHARACTERISTICS OF MARKETING RESEARCH:

AIMS AND OBJECTIVES OF MARKETING RESEARCH:

MARKET RESEARCH V/S MARKETING RESEARCH:

Distinction between market research and marketing research

Dimension Market Research Marketing Research

Scope The scope of market research is The scope of marketing research is

Type of term Market research is a narrow term Marketing research is a wide/broad

Objective Market research is undertaken in Marketing research is undertaken in

GROWING IMPORTANCE OF MARKETING RESEARCH:

marketing decision-making process. They naturally took initiative in conducting research

Fourthly, rapid changes in the business environment, shift to consumer-oriented philosophy in

Relevance of MR under Globalization:

FUNCTIONS OF MARKETING RESEARCH:

They also suggest the practical utility of MR activities.

In brief, the basic function of MR is to support marketing decision-making process. Marketing

ADVANTAGES/IMPORTANCE OF MARKETING RESEARCH:

Limitations of marketing research are as explained below:

Marketing research gives guidance to marketing managers through information and

(8) A cost-generating operation: Marketing research is expensive. The existence of sellers’

(10)Resistance by marketing executives: Researchers study marketing problems and offer

It is necessary to have effective communication between researchers and marketing

(11)Lengthy and time-consuming activity: MR is a lengthy and time-consuming activity. It

(14)Changing behavior of consumers: Consumer is the focal point in marketing research.

(15)Limited practical utility: MR is regarded as an academic exercise. It is often been delinked

(17)Fragmentary approach: On many occasions, marketing research tends to be fragmentary in its

SCOPE OF MARKETING RESEARCH / BRANCHES OF MR:

6. Promotion and Distribution Research:

10. Media Research:

11. Motivational Research:

12. International Marketing Research:

APPLICATION OF MARKETING RESEARCH

IV. PROMOTION RESEARCH

B. CONTEMPORARY APPLICATIONS OF MARKETING RESEARCH

4. Total quality management

C. EMERGING APPLICATION OF MARKETING RESEARCH

Benefits of database marketing

Reasons for Inaccuracy in Marketing Research

CONSUMER ORIENTATION TO MARKETING RESEARCH:

Consumer orientation to marketing research means making research activities pro-consumer

NEED OF MARKETING RESEARCH

3. Changes in the composition of population and consumption pattern: In India, many

4. Growing importance of consumers in marketing: Consumers occupy key position in modern

6. Need of prompt decision-making: In competitive marketing, marketing executives have to

ROLE OF MARKETING RESEARCH IN MARKETING MANAGEMENT:

(ii) Need of effective integration between MR and Marketing Management: Marketing

INTERACTION BETWEEN MANAGEMENT AND MARKETING RESEARCH

Some of the organization’s complaints about marketing researchers are:

Marketing researchers have the following complaints:

BENEFITS OF MARKETING RESEARCH

General benefits of marketing research are

(A) BENEFITS OF MARKETING RESEARCH TO TOP-LEVEL MANAGEMENT:

(B) BENEFITS OF MARKETING RESEARCH TO GOVERNMENT:

MR at the government level is useful in the following areas:

(C) BENEFITS OF MR TO ADVERTISING AGENCIES:

MR supports advertising agencies in regard to advertising activities. It provides reliable and