Assignment

on

Marketing Research Used to Find Problem and Solution

Submitted By:Group Name:- Departed. Group Members:S M Ruhan Sad Ibne Rhyme Sadat Osman I D No:2011110000171 2011110000150 2011110000175

Submitted To:Faculty Name:Mr. Mostafa Hossan

Lecturer, Southeast University

Table of Content
1. What is Marketing Research

2. How important is this for business firms

3. The Marketing research process

4. Research Design 5. Data Types and Sources

6. Difference between marketing and marketing research

7. How dose marketing research helps an organization to find out problems and solution

8. Examples of Marketing Research 9. Source of Information

What is Marketing Research

"Marketing research is the function that links the consumer, customer, and public to the marketer through information - information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process.

Managers need information in order to introduce products and services that create value in the mind of the customer. But the perception of value is a subjective one, and what customers value this year may be quite different from what they value next year. As such, the attributes that create value cannot simply be deduced from common knowledge. Rather, data must be collected and analyzed. The goal of marketing research is to provide the facts and direction that managers need to make their more important marketing decisions.

"Marketing Research is the systematic gathering, recording and analysing of data about problems relating to the marketing of goods and services."

"Marketing research is a systematic problem analysis, model building and fact finding for the purpose of improved decision-making and control in the marketing of goods and services."

"Marketing Research is the application of scientific methods in the solution of marketing problems."

Finally we can say that:-

Marketing research is the systematic gathering, recording, and analysis of data about issues relating to marketing products and services.

How important is this for business firms

A company faces many marketing problems. It faces problems about consumers, product, market competition, sales promotion, etc. Marketing research helps to solve these problems. Marketing research is a systematic process. It first collects data (Information) about the Marketing problem. Then it records this data. Then it analysis (studies) this data. Then it draws conclusions about this data. After that, it gives suggestions (advice) for solving the marketing problem. So, Marketing research helps to solve the marketing problems quickly, correctly and systematically. Marketing research collects full information about the consumers. It finds out the needs and expectations of the consumers. So the company produces the goods according to the needs and expectations of the consumers. Marketing research helps the company to make its production and marketing policies. It helps the company to introduce new products in the market. It helps to identify new markets. Marketing research also collects full information about the competitors. The company uses this information to fight competition. It also helps the marketing manager to take decisions. Marketing research is a special branch of Marketing Management. It is the soul of Marketing management. It is of recent origin and widely used by manufacturers, exporters, distributors and service organisations. Marketing research is very systematic, scientific, objective and organised. It has a wide scope. It includes product research, consumer research, packaging research, pricing research, etc. Marketing research is a continuous process. It has a few limitations. However, a company cannot survive and succeed without Marketing research.

The Marketing research process

Marketing research is gathered using a systematic approach. An example of one follows: 1. Define the problem. Never conduct research for things that you would 'like' to know. Make sure that you really 'need' to know something. The problem then becomes the focus of the research. For example, why are sales falling in New Zealand? 2. How will you collect the data that you will analyze to solve your problem? Do we conduct a telephone survey, or do we arrange a focus group? The methods of data collection will be discussed in more detail later. 3. Select a sampling method. Do we us a random sample, stratified sample, or cluster sample? 4. How will we analyze any data collected? What software will we use? What degree of accuracy is required? 5. Decide upon a budget and a timeframe. 6. Go back and speak to the managers or clients requesting the research. Make sure that you agree on the problem! If you gain approval, then move on to step seven. 7. Go ahead and collect the data. 8. Conduct the analysis of the data. 9. Check for errors. It is not uncommon to find errors in sampling, data collection method, or analytic mistakes. 10. Write your final report. This will contain charts, tables, and diagrams that will communicate the results of the research, and hopefully lead to a solution to your problem. Watch out for errors in interpretation.

Research Design

Marketing research can classified in one of three categories:

Exploratory research Descriptive research Causal research

These classifications are made according to the objective of the research. In some cases the research will fall into one of these categories, but in other cases different phases of the same research project will fall into different categories.

Exploratory research has the goal of formulating problems more precisely, clarifying concepts, gathering explanations, gaining insight, eliminating impractical ideas, and forming hypotheses. Exploratory research can be performed using a literature search, surveying certain people about their experiences, focus groups, and case studies. When surveying people, exploratory research studies would not try to acquire a representative sample, but rather, seek to interview those who are knowledgeable and who might be able to provide insight concerning the relationship among variables. Case studies can include contrasting situations or benchmarking against an organization known for its excellence. Exploratory research may develop hypotheses, but it does not seek to test them. Exploratory research is characterized by its flexibility. Descriptive research is more rigid than exploratory research and seeks to describe users of a product, determine the proportion of the population that uses a product, or predict future demand for a product. As opposed to exploratory research, descriptive research should define questions, people surveyed, and the method of analysis prior to beginning data collection. In other words, the who, what, where, when, why, and how aspects of the research should be defined. Such preparation allows one the opportunity to make any required changes before the costly process of data collection has begun. There are two basic types of descriptive research: longitudinal studies and cross-sectional studies. Longitudinal studies are time series analyses that make repeated measurements of the same individuals, thus allowing one to monitor behavior such as brand-switching. However, longitudinal studies are not necessarily representative since many people may refuse to participate because of the commitment required. Cross-sectional studies sample the population to make measurements at a specific point in time. A special type of crosssectional analysis is a cohort analysis, which tracks an aggregate of individuals who experience the same event within the same time interval over time. Cohort analyses are useful for long-term forecasting of product demand.

Causal research seeks to find cause and effect relationships between variables. It accomplishes this goal through laboratory and field experiments.

Data Types and Sources

Secondary Data Before going through the time and expense of collecting primary data, one should check for secondary data that previously may have been collected for other purposes but that can be used in the immediate study. Secondary data may be internal to the firm, such as sales invoices and warranty cards, or may be external to the firm such as published data or commercially available data. The government census is a valuable source of secondary data. Secondary data has the advantage of saving time and reducing data gathering costs. The disadvantages are that the data may not fit the problem perfectly and that the accuracy may be more difficult to verify for secondary data than for primary data. Some secondary data is republished by organizations other than the original source. Because errors can occur and important explanations may be missing in republished data, one should obtain secondary data directly from its source. One also should consider who the source is and whether the results may be biased. There are several criteria that one should use to evaluate secondary data.

Whether the data is useful in the research study. How current the data is and whether it applies to time period of interest. Errors and accuracy - whether the data is dependable and can be verified. Presence of bias in the data. Specifications and methodologies used, including data collection method, response rate, quality and analysis of the data, sample size and sampling technique, and questionnaire design. Objective of the original data collection. Nature of the data, including definition of variables, units of measure, categories used, and relationships examined.

Primary Data Often, secondary data must be supplemented by primary data originated specifically for the study at hand. Some common types of primary data are:

demographic and socioeconomic characteristics psychological and lifestyle characteristics attitudes and opinions awareness and knowledge - for example, brand awareness intentions - for example, purchase intentions. While useful, intentions are not a reliable indication of actual future behavior. motivation - a person's motives are more stable than his/her behavior, so motive is a better predictor of future behavior than is past behavior. behavior

Primary data can be obtained by communication or by observation. Communication involves questioning respondents either verbally or in writing. This method is versatile, since one needs only to ask for the information; however, the response may not be accurate. Communication usually is quicker and cheaper than observation. Observation involves the recording of actions and is performed by either a person or some mechanical or electronic device. Observation is less versatile than communication since some attributes of a person may not be readily observable, such as attitudes, awareness, knowledge, intentions, and motivation. Observation also might take longer since observers may have to wait for appropriate events to occur, though observation using scanner data might be quicker and more cost effective. Observation typically is more accurate than communication. Personal interviews have an interviewer bias that mail-in questionnaires do not have. For example, in a personal interview the respondent's perception of the interviewer may affect the responses.

difference between marketing and marketing research

Marketing Research is research aimed at gathering information on all aspects of marketing. The purpose is to enhance an organization's marketing processes and activities. As such it includes aspects such as advertising research (i.e. research looking at the effectiveness of advertising), sales research (e.g. research to look at the best sales approaches), channel research, competitor research, etc.

In contrast, Market Research focuses on markets i.e. the customer or prospective customer. As a result (unless it is used as a synonym for marketing research), it won't look at aspects such as advertising effectiveness research. The focus is strictly on the market itself. It may include some sales research studies and competitor studies - in as much as these can also look at customer/prospect responses.

How dose marketing research helps an organization to find out problems and solution
In order to best market a product or service, analysis and comparisons with up-to-date data is imperative to promote any business. Identifying changes and how it impacts the consumer will help management make the right decisions towards the best marketing strategy. Market research specifically looks into the business environment in detail for competition from other companies, regulatory rules and laws, trends, up-to-date technological advantages and any other facts that for the specific product or service. The internet today is an advantages tool that requires competitive strategies. Search Engine Optimization (SEO) consists of processes that will increase the quality and volume of traffic to a website. The optimization process directs the consumer or associated business through specific keywords and may include searches through images, video, local and more. Website design and content has a lot to do with how searchable it is by people. This involves an intricate design process by specifically editing the content, HTML, and all associated codes to be more searchable. Optimization of a website also includes many conveniences, from menus to shopping carts. Search Engine Marketing (SEM) deals with paying and involves various methods of research analysis, thus keeping a website on top of a search engine list as well as speeding up the process. A marketing advertising agency can greatly assist in supporting the corporate image and focus on improving how a company and the work they do is seen by all audiences. It can do research in all the following categories and generate reports to reference and implement changes: * Web analytics * Web site design * Organic search management * Paid search * E-marketing * Online advertising * Viral marketing * E-commerce applications * Custom applications * Content management * Multimedia

The marketing agency gathers the specific and specialized professionals to conduct research and launch marketing and advertising campaigns, but most of all monitors and analyzes for the best strategies to accomplish a successful business.

There are many marketing techniques that can be used, some of which are as follows: * Ad tracking - research and monitoring of brands * Advertising research - measurement of an ad's capabilities * Brand equity research - the consumer's views * Brand association research - how people associate with the product * Brand attribute research - traits and description of the product or service * Brand name testing - gauging the consumer's reaction and feelings to names * Commercial eye tracking research - examining the consumer's reaction to the product, service and website * Concept testing - consumer's acceptance * Cool hunting - observations and predictions in trends * Buyer decision processing research - what motivates people to buy and what decision-making process they use * Copy testing - tests that predict acceptance by viewing the reactions of an audience * Customer satisfaction research - how happy the client is with the product or service * Demand estimation - determines the approximate level of demand * Distribution channel audits - attitudes and opinions toward a product * Marketing effectiveness and analytics - measuring results to determine the effectiveness of marketing activities * Mystery consumer or mystery shopper - surveys by undisclosed patrons * Positioning research - examines relationships to the competitors * Sales forecasting - determines the expected level of sales and demand * Segmentation research - determination of the characteristics of potential buyers * Viral marketing research - estimates the probability in communications within social networking.

Research, as a general concept, is the process of gathering information to learn about something that is not fully known. Nearly everyone engages in some form of research. From the highly trained geologist investigating newly discovered earthquake faults, to the author of best selling spy novels gaining insight into new surveillance techniques, to the model train hobbyist spending hours hunting down the manufacturer of an old electric engine, each is driven by the quest for information. For marketers, research is not only used for the purpose of learning, it is also a critical component needed to make good decisions. Market research does this by giving marketers a picture of what is occurring (or likely to occur) and, when done well, offers alternative choices that can be made. For instance, good research may suggest multiple options for introducing new products or entering new

markets. In most cases marketing decisions prove less risky (though they are never risk free) when the marketer can select from more than one option. Using an analogy of a house foundation, marketing research can be viewed as the foundation of marketing. Just as a well-built house requires a strong foundation to remain sturdy, marketing decisions need the support of research in order to be viewed favorably by customers and to stand up to competition and other external pressures. Consequently, all areas of marketing and all marketing decisions should be supported with some level of research.

While research is key to marketing decision making, it does not always need to be elaborate to be effective. Sometimes small efforts, such as doing a quick search on the Internet, will provide the needed information. However, for most marketers there are times when more elaborate research work is needed and understanding the right way to conduct research, whether performing the work themselves or hiring someone else to handle it, can increase the effectiveness of these projects.

Just the phrase marketing research can make people feel overwhelmed, by understanding what it is and why it's important can relieve that tensions. There is a difference in market research and marketing research, let me explain. Market research is when you have narrowed down a specific "target" and you are delving into the behavior of that target. In other words, it's research into a very narrow group of consumers. Marketing research is different. Different because it's dealing with a broader range of consumers. Marketing research includes "market" research, but it also delves into new product research and distribution methods. The best way to differentiate the two is to understand that marketing research is really about researching the marketing process of a company, not just who they are targeting. Your marketing research will include the following steps and in each step I have listed common questions that are typically asked:
1. Problem Definition: The problem is the focus of your research. Example: Why are sales

soaring in the midwest, but dismal in other parts of the country?

2. Data Collection Method and Needs: How will you collect the data that you will need to

solve the problem? Will you use surveys, telephone calls or focus groups on the internet?
3. Determine Sample Method: What sampling method will you use? Sampling represents

those you will collect information from. Will it be a random sampling, a sampling that contains a similar element or a natural sampling?
4. Data Analysis: How will you analyze the data? Will you use software or do it by hand?

How accurate do the results need to be?

5. Determine Budget and Timeframe: How much are you willing to spend on the research

and how soon must the research be complete?

6. Data Collection: Proceed in data collection based on answers in Steps 1- 5. 7. Analysis of the Data: Conduct the analysis of the data that has been collected in previous

Step.
8. Error Check: Check for errors in data. It is not uncommon for errors to be found in data

collected. Errors can be in the sampling method, data collections as well as just analytical mistakes.
9. Create Your Report: The final step of marketing research is to draft a report on your

findings. Your report should contain tables, charts, and or diagrams. It's important that your report clearly communicate the results that you found in your research. Your findings should lead to a solution to the problem you identified in Step 1.

Examples of Marketing Research

As noted, marketing research is undertaken to support a wide variety of marketing decisions. The table below presents a small sampling of the research undertaken by marketing decision area. Many of the issues listed under Types of Research are discussed in greater detail in other parts of the Principles of Marketing Tutorials.

Marketing Decision Target Markets

Types of Research

sales, market size; demand for product, customer characteristics, purchase behavior, customer satisfaction, website traffic product development; package protection, packaging awareness; brand name Product selection; brand recognition, brand preference, product positioning distributor interest; assessing shipping options; online shopping, retail store site Distribution selection advertising recall; advertising copy testing, sales promotion response rates, sales Promotion force compensation, traffic studies (outdoor advertising), public relations media placement Pricing price elasticity analysis, optimal price setting, discount options External Factors competitive analysis, legal environment; social and cultural trends Other company image, test marketing

Source of Information
1. Principles of Marketing by
2. 3.

- Layla Ajrouh

Principles of Marketing by- Lexis F. Higgins, Ph.D. Internet