Submitted for the first year of
Master of management studies
By Ms. Shinde Nayana S. Mr. Meshram Tushar G. Mr. Ghanekar Sameer J. Mr. Karval Vinod P. Ms. Ghanekar Kavita G.
Under the guidance of DR. C. SATYANARAYANA
YADAVRAO TASGAONKAR SCHOOL OF BUSINESS MANAGEMENT BHIVPURI ROAD, KARJAT 410 201.
UNIVERSITY OF MUMBAI
Marketing research & MIS
Marketing research & MIS
We desire to express our sense of profound gratitude to all those personalities who have contributed their best efforts in helping us through the proceedings in our project work. With immense pleasure, we would like to express our deepest sense of indebt ness to our guide professor “DR.C.SATYANARAYANA” for his esteemed guidance, co-operation. We would also like to thank our parents who have supported us financially as well as morally. Without the support of all these personalities, our project would not have been successfully completed.
Marketing research & MIS
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Introduction and Definition Features of Marketing Research Objective of Marketing Research Need of Marketing Research Functions of Marketing Research Advantages of Marketing Research Limitations of Marketing Research Branches of Marketing Research Method of Conducting Marketing Research Definition of MIS Function of MIS Characteristics of MIS Sources of MIS Advantages of MIS Components of MIS Difference between MIS and MR Sampling- Planning and Designing Features of Sampling Advantages of Sampling Method Limitations of Sampling Method Steps in Sampling Process Sampling Methods
Marketing research & MIS 24 25 26 27 28 29 Marketing Research Process Marketing Research on Preference of Consumers Questionnaire Analysis Conclusion References
recording and analyzing of data about problems relating to the marketing of goods and services” According to PHILIP KOTLER: “Marketing research is systematic problem analysis.”
DEFINITIONS OF MARKETING RESEARCH
According to AMERICAN MARKETING ASSOCIATION: “ The systematic gathering. The entire function of Marketing revolves around customer. it is essential on our part to thoroughly understand the basic concepts of Marketing Management. model building and fact finding for the purpose of improved decision making and control in the marketing of goods and services. In the Marketing Management the entire emphasis is on Customer. In marketing research.” According to RICHARD D.Marketing research & MIS
Marketing Research comprises of two words ‘Marketing’ and ‘Research’. It is rightly treated as the SOUL of modern management. In the Management theory Customer has been perceived as a ‘King” or the ‘Boss’ for whom everything is being done by the business. To understand the role of Marketing Research. sales promotion and so on. market competition. CRISP: “Marketing research is the systematic. specific marketing problem is studied in depth by collecting and analyzing all relevant information and solutions are suggested to solve the problem which may be related to consumer. product. Marketing research facilitates accurate marketing decisions for consumer satisfaction on the one hand and sales promotion on the other hand. objective and exhaustive search for and study of the facts relevant to any problem in the field of marketing.
study of market competition. introduction of suitable advertising strategy and sales promotion measures are some areas covered by marketing research. It enables a company to introduce consumer oriented marketing policies. The data collected must be reliable. A marketing company has to conduct marketing research regularly for its survival & growth in the present dynamic marketing environment. 3) Emphasizes on accurate data collection and critical analysis: In marketing research.Marketing research & MIS
FEATURES OF MARKETING RESEARCH:
1) Systematic and continuous process: Marketing research is a continuous process.
. MR acts as the intelligence tool of marketing management. One type of research is not adequate to resolve all marketing problems. This will provide comprehensive picture of the situation and possible solutions. 5) Commercial equivalent of military intelligence: Marketing research is the commercial intelligence activity. It also raises the competitive capacity and creates goodwill in the market. selection of appropriate selling techniques. It should be analyzed in a systematic manner. 2) Wide/comprehensive in scope/wide application: Marketing research is wide in scope as it deals with all aspects of marketing of goods and services. 4) Offers benefits to sponsoring company and consumers: It raises the turnover and profit of the company. required data should be collected objectively and accurately. It is an aid to decision making. MR is an aid to judgment and never a substitute for it. identification of potential markets. 6) Tool for managerial decisions: Marketing research acts as a tool in the hands of management for identifying and analyzing marketing problems and finding out solutions to them. Introduction of new products. It is similar to military intelligence where systematic study is made before taking any military action.
Its scope is fast expanding along with the new developments in the field of marketing. It reduces the gap between produces and consumers and adjusts the marketing activities to suit the needs of consumers. 11) Dynamic character: Marketing research is dynamic in nature.
. However. It only suggests possible solutions and not the exact solution to marketing manager for consideration and selection. 12) Closely connected with marketing information system: Both the concepts are interrelated. 9) Not an exact science: Marketing research is both science and an art. MR is one component of MIS. The information collected is also applied to real life problem. In fact. The researcher has to decide the method suitable for his research project.Marketing research & MIS 7) Applied type of research: Marketing research is applied knowledge. It studies specific marketing problem and suggests alternative solutions and possible outcome of each alternative. Both are useful for solving marketing problems and for accurate and quick decision making in the field of marketing. MR is not the exact science. Data can be collected through survey or by other methods like observation method or experimentation method. 10) Use of different methods: Marketing research can be conducted by using different methods. Even computers and internet are used for data collection. 8) Reduces the gap between the producers and consumers: It is useful for understanding the needs and expectations of consumers. It collects information and studies marketing problem in a scientific manner.
wants and expectation of consumers. To study existing pricing. brands of company’s products. To study current marketing problems and opportunities for suitable follow-up actions.
. modifications of existing products and to discover new uses of existing products. channels of distribution and market competition for suitable changes.Marketing research & MIS
OBJECTIVES OF MARKETING RESEARCH:
• • • • • • • • To study the need. To design and test appropriate packages. To suggest the introduction of new products. To find out methods for marketing the products of the company popular and raising its goodwill and market reputation. To find out reactions of consumers to the products of the company. if necessary. To evaluate company’s sales promotion measures for suitable adjustment and improvement.
Marketing research & MIS
Producers do not get dependable information as regards needs. etc. packaging.Marketing research & MIS
INCREASING NEED OF MARKETING RESEARCH:
The following factors/points suggest increasing need of MR:
1. They are unable to adjust their products. direct (personal) contact between producers and consumers is practically lost. expectations and reactions of consumers. expectations. of consumers and middlemen. reactions. prices.
3. Due to mass scale production and distribution. they have no control on the marketing system once the goods are sold out to middlemen. The problems creates due to information gap can be solved only through MR as it is possible to establish contact with consumers and collect first hand information about their needs.
Growth and complexity of markets: The marketing activity is becoming increasingly complex and broader
in scope as more firms operate in domestic and global markets. The incomes of 11
. preferences and special features of their behavior. Similarly. many changes are taking place in the composition of population.
Changes in the composition of population and pattern of
consumption: In India. dislikes.
Wide gap between producers and consumers: Marketing research is needed as there is a wide gap between producers
and consumers in the present marketing system.
2. likes. as per the needs of consumers. There have been considerable changes in the consumption and expenditure patterns of consumers because of urbanization. Manufacturers find it difficult to establish close contact with all markets and consumers directly. etc. This situation creates new problems before the manufacturers which can be faced effectively through MR as it acts as a feed-back mechanism to ascertain first hand information.
marketing executives have to take quick and
correct decisions. Moreover. MR comes to the rescue of marketing managers. policies and strategies.
Shift of competition from price to non-price factors: Cut-throat competition is unavoidable in the present marketing field
due to various factors such as price. quality. MR is needed for the study of changes in the pattern of consumption and corresponding adjustment in the marketing planning. For correct decision. This brings corresponding increase in their purchasing capacity and buying needs and habits. advertising and sales promotion techniques. The shifting of competition from price to non-price factors has made marketing of consumers goods more complicated and challenging. Even growing customers expectations create situation when manufacturers have to understand such expectations and adjust the production policies accordingly.
5. A manufacturer can face market competition even by using certain non-price factors. MR is needed as it offers guidance in this regard. defined. packaging. wrong decisions may bring loss to the organization. Problems in marketing are located.making.Marketing research & MIS the people.
Need of prompt decision making: In competitive marketing. marketing executives need reliable data and up-to-date market information. This challenge can be faced with confidence by using certain measures suggested through marketing research. Here. MR particularly consumer research gives valuable data relating to consumers this data use to framing marketing policies. analyzed and
. goods available.
6. are rising. consumer rights and protection available to them through consumer protection acts. They are
now well informed about market trends. in general.
Growing importance of consumers in marketing: Consumers occupy key position in modern marketing system.
Producers and distributers find it difficult to take decisions due to lack of knowledge about future market trends. Here. marketing research is useful as it provides information about future trends in the marketing field and enables marketing managers to take quick and correct marketing decisions. The factors noted above clearly suggest the growing need of MR in the present consumer-oriented marketing system.
. Consumers prefer new/novel articles in place of old ones. In fact.
Recent developments in science and technology: Science and technology are making rapid progress. the impact
of such progress touches all aspects of commercial and industrial activities. It is needed in order to reduce the risks and uncertainties in the marketing activities.Marketing research & MIS solved through MR technique. MR is needed as a tool for reasonably accurate decision making in the present highly competitive marketing system.
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 project. Usually.
Evaluation: MR is useful for understanding the views/reactions of the buyers. These functions are related to the
research project undertaken. retailers negative reaction or resistance of consumers in a particular marketing area. Description of the customers is useful in order to draw certain conclusions about the customers and their buying behavior. every research study performs the functions as explained below:
Description: MR provides data and gives information/description of customers
who buy the product. This facilitates evaluation of the marketing policies.
Explanation: MR gives explanation to certain questions of a manufacturer related
to decline in sales.
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 includes information about their age/sex.
3. income and the amount of money which they are willing to spend on the product.Marketing research & MIS
FUNCTIONS OF MARKETING RESEARCH:
MR performs five basic functions.
In brief. MR is useful for understanding the marketing environment likely to develop in future. The prediction function is important even when all predictions made through research studies may not prove to be fully correct. The different functions of MR are supplementary in character. It provides support to skills and abilities of marketing managers.
Aid in Decision-making: MR guides the manufacturer as regards the manner in which he can
salesmen/distributors. These functions facilitate reasonably correct decision-making by marketing managers.
5. possible socioeconomic changes and so on.
Prediction: MR conducts prediction function.Marketing research & MIS
4. It also gives him guidance as regards price fixation and sales promotion techniques which will be useful for the future period. It only provides the clues or possible solutions which should be taken into consideration in the decision-making process. the trend indicate can be used for appropriate policy decisions.
. Such predictions may be related
to consumers. 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 programmes. the basic function of MR is to support marketing decisionmaking process. However. MR does not provide ready-made decisions or exact solutions on all marketing problems. market competition. market environment. This prediction function enables a manufacturer to understand how much people will spend on the specific product in the next year or the fashions which consumers may prefer in next year. In brief.
. It gives guidance regarding different aspects of marketing.
Pinpoints deficiencies in marketing policies: MR pinpoints the deficiencies as regards products.Marketing research & MIS
ADVANTAGES / BENEFITS OF MARKEING RESEARCH:
1. packaging and advertising. They include product development.
promotion. pricing. branding.
Indicates current market trends: MR keeps business unit in touch with the current market trends
and offers guidance for facing market situation with confidence.
Explains customer resistance: MR is useful for finding out customer resistance to company’s
Suggests sales promotion techniques: MR enables a manufacturer to introduce appropriate sales
6. Remedial measures are also suggested by the researcher to deal with the situation. 5. Continuous research enables a company to face adverse marketing situation boldly. suitable pricing policy for the products and provisions of discounts and concessions to dealers.
4. select most convenient channel of distribution. It acts as an insurance against possible changes in market environment.oriented marketing policies and programmes. This makes the products and marketing policies agreeable to consumers.Marketing research & MIS
3. It also suggests the incentives which should be offered for motivation of employees concerned with marketing. MR facilitates sales promotion.
Facilitates selection and training of sales force: MR is useful for the selection and training of staff in the sales
Facilitates appraisal of marketing policies: Research activities enable business executives to have an appraisal
of the present marketing policies in the light of finding of research work.
Promotes business activities: MR 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. Offers guidance to marketing executives: MR offers information and guidance to marketing executives while framing marketing policies.
Creates progressive outlook: MR generates a progressive and dynamic outlook throughout the
11. MR provides information.Marketing research & MIS Suitable a adjustments in the policies are also possible as per the suggestions made by the researchers. It promotes systematic thinking and a sense of professionalization within the company.
Provides marketing information: MR provides information on various aspects of marketing.
Provides information on product acceptance: MR helps in knowing the probability of acceptance of the
product in its present form.
12. It is also useful for the introduction of modifications in the existing product line of a firm. It also creates enthusiasm among
Suggests new marketing opportunities: MR suggests new marketing opportunities and the manner in which
they can be exploited fully. It identifies emerging market opportunities. On the basis of such information. guidance and alternative solutions to current marketing problems. It
suggests relative strengths and weaknesses of the company.
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. marketing executives find it easy to frame policies for the future period.
Facilitates inventory study: MR 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.
Has wider social significance: MR is of paramount importance from the social angle. It is useful to all parties involved in the process of marketing. In brief. MR has wider social significance.
15. It is the
means by which the ultimate consumer literally becomes king of the market place.Marketing research & MIS marketing executives. with his desires. prejudices and every whim transmitted to the producer and distributor. This brings success and stability to the whole business unit.
MR cannot predict accurately: In MR.Marketing research & MIS
MR itself is not complete/perfect in all respects. It guides marketing managers in taking balanced. MR is not always the only source of information to be used for marketing decisions. MR offers predictions but they are not necessarily accurate or perfect. result-oriented and rational decisions. Even the actions/reactions of consumers are different under different situations. the results/conclusions arrived at may not be complete. As a result.
MR offers suggestions and decisions: MR is not a substitute for decision-making process. However. They predict possible tendencies but not certainties.
MR conclusions are not dependable:
3. This brings limitations:
1. It only offers
possible suggestions/solutions to marketing problems.
2. consumer behavior is difficult to estimate correctly and reliable data for research purpose may not be available. It deals with marketing environment which itself is flexible. efforts are being made to estimate or predict the possible
future situation. the decisions taken and policies framed on the basis of such research studies may not be accurate and useful for solving current marketing problems. perfect or accurate. MR only provides indicators. This is because market environment is ever changing. MR aids managerial decision-making but it cannot replace judgment and experience of marketing executives/managers.
4. research work cannot be conducted overnight and marketing decisions cannot be postponed till the research work is completed.
7. Thus. maturity and skill. It involves various
stages/steps which need to be completed in an orderly manner. It is not desirable to conduct research work is a haphazard manner.Marketing research & MIS There are many who are skeptics of MR. management scientists.
Lengthy and time-consuming activity: MR is a lengthy and time consuming activity. They feel that such extensive use will act as a threat to their personal status. Moreover. 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. Their criticism is that MR conclusions are not dependable.
MR cannot study all marketing problems: MR is rather very wide in scope. However. it cannot study all
marketing problems particularly where it is difficult to collect relevant data. MR is not useful for dealing with urgent marketing problems.
6. Even it is not useful for dealing with urgent marketing problems where quick decisions and follow-up actions are necessary.
Resistance by marketing executives: Researchers study marketing problems and offer information and
guidance to marketing executives in their decision-making process. some executives are reluctant to use the solutions suggested by the researchers. Such experts include economists. statisticians. psychologists and computer (software)
MR is a costly affair: MR is costly as research work requires the services of experts
with knowledge. all marketing problems are not researchable and all research problems are not answerable. Findings of the research work may bring them in difficulties if the policy-decisions taken accordingly prove to be wrong.
8. However. Errors in the research studies are also possible due to uncertainty of human behavior and also because of non-availability of reliable data.
Complexity of the subject: MR fails to give complete and full proof solutions to
management. economists and computer experts. sociologists.Marketing research & MIS experts. etc. Errors in drawing conclusions are possible due to this human element in MR activities. Advanced training in economics.
. This brings some sort of uncertainty in conclusions drawn from research activity. professional marketing researchers with proper
9. The findings of the research work (in case of consumer research) may not prove to be accurate. Research work is likely to be incomplete/unreliable in the absence of such expert staff.
11. This is because MR itself is not an exact science. Companies find it difficult to have the services of such expert staff. Researchers take more interest in concluding research work rather than in supplying information and guidance to marketing managers in the decision-making process. It is often been delinked
from the business strategy. is also necessary on the part of research staff.
Changing behavior of consumers: Consumer is the focal point in MR.
Non-availability of qualified staff: For scientific MR. Research activities are conducted in limited areas due to non-availability of property qualified staff. It is concerned with the study of human beings and human behavior is always difficult to predict. Such staff includes statisticians. computer technology. training and experience are necessary. psychologists.
10. his buying motives
are difficult to judge precisely and accurately. sociology.
Limited practical utility: MR is regarded as an academic exercise. As a result many research reports become ‘academic’ in nature and are ‘field’.
14. However. MR by itself may not give any benefit. Many conclusions drawn from the MR activities may be imaginary or not based on realities. It only suggests that the MR activity should be conducted with proper care and caution. Its use and effectiveness largely depend on the ability of marketing executives to get the most promising results out of it. MR tends to be fragmentary in its approach. such dialogue is ineffective in many organizations.Marketing research & MIS
12. Such fragmentary approach is not useful for solving marketing problems in an integrated manner.
Fragmentary approach: On many occasions. This makes research activity ineffective. It only shows the way to executives in the decision-making process.
Passive nature: MR is passive by its nature.
It suggests solution which may be difficult to put into operation. Sometimes.
Absence of affective communication: The research activity will be useful and result-oriented only
when there is meaningful dialogue between the marketing management and MR team. This is because overall marketing environment is not given adequate attention while suggesting the solution. it becomes too
superficial and faulty in business management. The limitations of MR do not suggest that it is a redundant activity or an activity without any practical utility.
sales policies. price incentives for sales promotion and provision of price discount and other price concessions to dealers and consumers. trends in sales. sales forecasting. sales forecasting. studies of market price trends. market competition studies. 3) Pricing Research: It relates to analysis of pricing policies and strategies. testing of existing products. 5) Sales Research: It relates to studies of sales outlets. forecasting of business conditions. studies of wholesale marketing. estimating demand for new products and monitoring competitive marketing activities. Product research relates to various aspects such as design. It is important for making the product attractive and agreeable to consumers. sales territories and their revision. Branding and packaging normally go together and hence brand research is treated as a part and parcel of packaging research. packaging research is necessary. Packaging is now treated as a tool for sales promotion. product modification studies and so on. assessment of market trends. fixation of market prices. It is useful for introducing new product which will be agreeable to consumers. For innovation in the package design. 4) Market Research: It relates to analysis of consumer markets.Marketing research & MIS
1) Product Research:
Product research relates to products which are to be marketed to consumers. 2) Packaging Research: Packaging research is a part of product research. sales performance and so on. Constant changes in package design are required for sales promotion. development and introduction of new products. studies relating to price charged by competitors.
corporate research are included within the scope of advertising research. buying motives. Newspaper. TV. 9) Advertising Research: It relates to evaluation of advertising effectiveness. inventory control and handling of goods 7) Consumer Research: It relates to finding out consumers needs and preference. inventory policies and so on. effectiveness of advertising campaigns. consumers purchasing intentions. priorities and inner feelings of consumers. Data collections about foreign markets. 11) Motivational Research: It is one aspect of consumer research as it deals with consumer behavior. are undertaken under international marketing research. Media research relates to detailed study of different media for selection and use.Marketing research & MIS 6) Promotion and Distribution Research: Promotion research relates to assessing effectiveness of the sales force and selling efforts. 12) International Marketing Research: It deals with foreign markets which are attractive and profitable provided products and marketing activities are adjusted as per the need of foreign markets and buyers. 25
. trends in consumer preference and purchasing patterns. It also includes the study of channels of distribution for modification for modification. Such research is costly and time consuming as compared to internal research. sale policies. 8) Policy Research: It is related with the evaluation of effectiveness of marketing policies. copy research. Media research. 10) Media Research: Different media are used for communicating message about the products to prospective buyers. distribution cost analysis of the physical distribution. market surveys. magazines are used for advertising. distribution policies. pricing policies. Consumer research is useful for finding out the sentiments. etc. consumers choice of brands. analyzing competitive advertising and selection of appropriate advertising media. Media are used for advertising and publicity purpose.
. 4) Experimentation Method: Here the required information is collected through a small scale experiment under controlled conditions.Marketing research & MIS
METHODS OF CONDUCTING MARKETING RESEARCH
It is classified into following four categories: 1) Desk Research: In desk research. Desk research is a type of in-house research. the required information for research work is collected from published and other written sources of the collection secondary data. This method is also useful for the collection of primary data. the required information is collected from the consumers. 3) Observation Method: In observation method. In addition. It is also used for primary data collection. dealers and others connected with marketing through personal interviews. The data collected from such field investigation are called primary data. 2) Field Research/investigation: In this method. consumer’s surveys are also conducted for this purpose. the required information is collected through actual physical observation of one or more phenomena under study.
the decisions are to be made by marketing executives. Even after collecting all required information.WILLIAN STANTON “Marketing information system (MIS) is an ongoing. It facilitates quick marketing decision making and thereby raises marketing excellence. plans and strategies.Marketing research & MIS
MARKETING INFORMATION SYSTEM (MIS)
WHAT IS MIS?
Marketing information system supports marketing decision making and marketing planning. arranged and stored systematically for reference purpose. Information is critical for a firm’s survival and competitive edge in the marketing field.”
. This is what is achieved through MIS. store. analysis and presentation of information in making marketing decisions. In order to achieve marketing objective.” According to MR. organized set of procedures and methods designed to generate. correct decision must be taken and correct decision making is possible when reliable. up to date and adequate information is made available regularly. MIS is an essential support system for developing marketing decisions. analyze. Information network serves as key resource in all aspects of life including business and marketing.COX AND GOOD “A set of procedures and methods for the regular and planned collection. and retrieve information for use in making marketing decisions. Required information needs to be collected.
DEFINITIONS OF MARKETING INFORMATION SYSTEM:
According to MR.
e.Marketing research & MIS
FUNCTIONS OF MARKETING INFORMATION SYSTEM:
1) Assembling of information or relevant marketing data through 2) Processing of information i. 3) Analyzing the data collected which is essential for drawing conclusions for decision making.
. finding out accuracy and reliability of the data collected. 6) Disseminating relevant information to decision makers. 7) Updating the information collected periodically by discarding outdated data and incorporating new data available. tabulating and summarizing the data collected for the purpose of ready reference and critical analysis. 4) Storing of data collected i.
internal and external sources. Such data act as a raw material of MIS.e. i.e.e. filing and indexing of information collected so that it can be made available for use when required. editing. Marketing Managers. 8) Introducing updated information technology in the collection processing and storing of information collected. 5) Evaluating the data i.
It is an ongoing process as new information is added to the old one in a continuous manner. Regular flow of information acts as a feedback in decision making. It acts as a preventive mechanism in marketing management and offers guidance to marketing executives. It operates continuously. 5) Acts as a link between external environment and internal resources: It provides updated information about external marketing situation and facilitates suitable adjustment in the internal resources to face the overall situation effectively. This is necessary for quick reference to required information. As a result. 4) Provides continuous information on marketing developments: MIS collects and provides information on marketing to concerned executives. 6) Operates in a systematic manner: MIS operates in a rational and systematic manner. decision-making process becomes accurate and quick. Proper system in the
. 2) Facilitates prompt and correct decision making: MIS provides updated information on various aspects of marketing to managers or executives. it provides right information at the right time to right people for decision making.Marketing research & MIS
1) Continuously operated process: MIS is a consciously developed technique for the flow of information to the company. managers are aware of new marketing developments taking place. They are also in apposition to take prompt decisions from time to time due to the feedback provided by MIS. It acts as a data bank for the benefit of marketing managers. In other words. It goes to right people at the right time. As a result. 3) Future oriented: MIS provides information about possible future problems and their solutions through appropriate marketing decisions.
7) Uses modern technologies: New techniques and machines are available for collection. Such information has to be stored after due classification.MIS is now based on advanced technology.Marketing research & MIS collection and storing of information is necessary as varied type of information is now easily available. In brief. MIS is now becoming costly and also needs the service of technically qualified staff (software experts). processing and storage of information. processing and storage. It is a computer based method of data collection. MIS needs well prepared operational system for raising its utility and efficiency. Due to the use of computers updated information is provided to executives easily and quickly.
financial institutions. commerce and industry.Marketing research & MIS
• SOURCES OF MARKETING INFORMATION SYSTEM:
Information is the base of MIS. 7) Departmental budgets and reports. etc. etc. 9) Periodical progress reports. 2) Business press i. 3) Census reports and other government publications on business. 4) Publication of trade associations and other agencies concerned with finance.
. marketing. 10) Director’s report and committee reports. 5) Publication of RBI. etc. exports. trade. Economics Times. 6) Financial records. 4) Production statistics. Financial Express. External Sources of Information: 1) Trade journals and periodicals. 8) Old research and surveys. 7) Published survey reports and statistical data. FAO. 3) Sales force records.
Internal Sources of Information: 1) Old statistical records of the company. finance. Such information is collected from different sources which includes internal and external. 2) Sales invoices and sales statistics. 6) Publications and survey report of World Bank. 5) Accounting data. term lending institutions and government departments. WTO.e.
. magazines. advertising agencies etc. reports and information. commodity exchanges and export promotion councils. surveys conducted by marketing research agencies. 9) Publications of stock exchanges. 10) Daily press.Marketing research & MIS 8) Special reports.
MIS gives the benefit in the form of marketing excellence. markets etc. 3) Raises efficiency of decision making: Integrated and updated marketing information may not be available easily and quickly in large companies with many departments. 2) Facilitates monitoring of marketing operations: Data on different aspects of marketing can be collected and stored through MIS. Both benefit stability and prosperity. 6) Facilitates tapping of marketing opportunities: MIS facilitates tapping of promising marketing opportunities and effective defense against marketing problems and threats likely to develop in the future. 5) Promotes marketing excellence: It is rightly said that to manage a business well is to manage its future and to manage the future is to manage information. evaluation and storage of such information through efficient MIS. Problems are solved at the initials stages through suitable preventive measures. Thus.
. Marketing decisions will be accurate when they are based on dependable information.
Information acts as a feedback and facilitates correct decision making by marketing managers. However separate arrangement can be made for collection.Marketing research & MIS
ADVANTAGES OF MARKETING INFORMATION SYSTEM:
Provides updated and timely information for decision-making: MIS provides information about various aspects of marketing. Quick reference to old information is due to modern computer techniques. 4) Facilitates quick reference: Easy and quick reference to old information is possible due to MIS. This helps easy and effective monitoring of the performance of products.
With support from market information analysis managers can make better marketing mix decisions. Information is collected from external sources. Suitable policy measures are recommended in order to solve the problem. 3) Marketing Research (MR): In this component. inventories. cash flows and old records. Market intelligence acts as a mirror of marketing environment and provides appropriate decision making on marketing. select site for retail outlets and forecast new product sales. For easily availability of internal information. through the accounting system on sales. cost. It provide information regarding current marketing environment and changing conditions in the market. All such data are available within the firm and hence these sources are called internal sources of marketing information. Marketing managers use this internal source as the information is available easily and quickly. weekly and monthly reports on markets and market news published in magazines and trade journals etc.
. design sales territories. filing and record keeping system must be efficient.e. specific marketing problem of the firm is selected for investigation. Data regarding the problem is collected. All such data provides information for marketing decision making.Marketing research & MIS
COMPONENTS OF MARKETING INFORMATION SYSTEM:
1) Internal Marketing Information: This component of MIS provides information from within the organization itself i. tabulated analyzed and conclusion is drawn. 2) Marketing Intelligence: This component provides information on external marketing environment. This information is available through census data. 4) Market Information Analysis: Information gathered by the company’s marketing intelligence and marketing research systems often requires more detailed analysis.
MR collects information relating to specific marketing problem under investigation. The purpose of MIS is to provide relevant and reliable information to all departments and facilitates quick and correct decisionmaking. analyzing and storing the information collected. However. The purpose of MR is to study a specific marketing problem in depth and to solve it quickly and also in satisfactory manner. 7) Use computer of It’s a non computer based system. of MR is a narrow concept as MR is one of the components of MIS. market competition and sales. MIS is future-oriented.
2)Nature concept 3)Information provided
Marketing Information System(MIS) MIS is a set of procedures and methods used for the regular and planned analysis and presentation of information for marketing decision-making. MIS is a broad concept. recording and analyzing of data relating to the marketing of goods and services.Marketing research & MIS
DIFFERENCE BETWEEN MIS AND MR:
Marketing Research (MR) MR is the systematic gathering. MR provides precise and properly analyzed information regarding a specific marketing problem with a view to solving that problem. make
6) Operational MR is conducted on method problem by problem or project by project basis with each project having a starting and ending point. MIS is a continuous system and information is collected. of MR is past-oriented.
8) Type orientation 9)
Every company may or Companies 35
. MIS provides information on various aspects of marketing in order to frame marketing policies and marketing decisions. MIS collects information on various aspects of marketing such as products. consumer needs. MIS is a computer based process as a computer technology is extensively used while collecting. analyzed used and stored in a regular and continuous manner. computers may be used tabulating data or while analyzing the information collected. Its purpose is to collect information on all aspects of business.
collection. external as well as data used: such as surveys and census internal sources are used reports are used for data for data collection.
. 10) Frequency of In MR data collection is not In MIS data are collected data collection. 11) Sources of In MR.Marketing research & MIS Organizational structure. MR arrangements for the collection and storage of information through MIS. the firm is interested. external sources In MIS. may not maintain department. continuous but only as per regularly on different the research projects marketing aspects in which undertaken.
Sampling methodology is the foundation of the research design. This is how reliable data can be collected quickly and economically through sampling. A sample is a part of the whole and is representative in character. According to Crisp R.Marketing research & MIS
PLANNING AND DESIGNING THE SAMPLE:
In MR. The better alternative is to select a representative sample and to collect information from such selected individuals called sample. sampling facilitates collection of information this is sufficiently adequate for survey purpose. D.. Moreover. Sampling is based on the law of statistical regularity and the law of inertia of large numbers. the conclusions applicable to the sample are also applicable to the whole universe. The information collected from the sample will be applicable to the entire group but the collection will be quick and economical. primary data cannot be collected from each and every dealer/consumer as this is costly and time-consuming.”
FEATURES OF SAMPLING:
. the fundamental idea of sampling is that “if a small number of items or parts (called a sample) are chosen at random from a large number of items or a whole (called a universe or population) the sample will tend to have the same characteristics and to have them in approximately the same proportion as the universe. Naturally. It refers to a selected number of individuals chosen from the whole group/population with a view to obtaining information and drawing conclusions. It has a key role to play in a systematic and objective marketing survey. It is a process of selecting a small representative group from the whole for intensive study purpose.
Marketing research & MIS 1. It is an effective alternative to the census survey.
5. Sampling is a small representative of the whole. Sampling is used in data collection as well as for different purposes in our daily life.
3. The sampling technique is based on the assumption that random selection of sample from the universe do possesses the same features and characteristics as that of the universe.
. The large sample is better as the results available are more accurate. Sampling reduces the time.
2. efforts and money of the researcher on data collection without any adverse effect on its quality. The findings of sample survey are accurate and reliable.
Facilitates better supervision on data collection:
. accurate and also applicable to the whole population/universe.
5. quickly and with less cost.
2. It is time saving and economical method of survey for data collection.
4. Popular and extensively used technique in MR:
The concept of sampling is quite common and popular in MR as it helps researchers to finalize their findings and recommendations within a short period. Sampling has no adverse effect on the quality of data collected. Saves time and money:
Sampling facilitates primary data collection easily. Provides reliable data:
The conclusions drawn from the sample survey are reliable.Marketing research & MIS
ADVANTAGES OF SAMPLING METHOD:
1. It gives quality results with lesser volume of work.
3. Scientific base:
The concept of sampling has scientific backing as it is based on the law of statistical regularity and the law of inertia of large numbers.
Findings may not be accurate:
The findings and collection drawn from sample survey may not be as available from the census technique in which the entire population is covered. In such case.
2.Marketing research & MIS Sampling method is restricted to limited number of respondents. This improves the quality of data collected. Findings are not completely accurate:
LIMITATIONS OF SAMPLING METHOD:
1. Naturally effective monitoring and supervision on the data collection work is possible. Difficulties in the selection of representative sample:
There are many practical difficulties in the selection of representative sample. This may defeat the very purpose of sampling. The accuracy is comparatively less. Findings may not be reliable:
The findings may not be reliable if the sample selected is too small or is not adequately representative in the character. the conclusions drawn may be misleading and this may affect the quality of research work.
The work of sampling process starts with defining/deciding the data needs of the research projects and ends with final selection of sample for actual use.
5.Marketing research & MIS The findings of sampling method are reasonably accurate but not completely accurate. This also leads to more time and money for data collection. The following steps are involved in the sampling process: 41
. A detailed plan for the selection of appropriate sample is the sampling process which is lengthy and time consuming.
SAMPLING PROCESS/STEPS IN SAMPLING PROCESS:
The sampling process consists of various steps involved in selecting an appropriate sample. Data collection difficult in the case of large sample:
Data collection become difficult when large size sample is decided.
completeness and convenience before deciding the sample frame. For example. accuracy. Population and sample size relate to the area decided for the survey work. it is necessary to define the data requirements of proposed research project. for the specific survey. time available and so on. However. adequate attention should be 42
. Attention should be given to adequacy. the total population from which the sample is to be selected will be decided. the decision in this regards should be firm and final. For this. Deciding the sample frame:
The sample frame for the survey should be proper. sampling unit. the research problem needs to be studied properly.
3. The time period for the sample/survey may be from 15th October 2006 to 15th January 2007.
2. the population may be all girls in the group of 18 to 22 within the sampling area which may be decided as Mumbai city. Deciding the data needs of research project:
Here. Deciding the area to be covered by survey work:
In this step. Every element of the population should be represented only once. The researcher has to decide the population in terms of elements. Here.
4. the area to be covered by the survey work needs to be decided clearly. It should not be too large or too small. The total population may be different for different survey work. It should be as per the requirements of the research work. Defining the population:
Here. Determining the desirable sample size:
The sample size should be decided in a fair manner. Deciding the data needs of the project is the first and basic step in the sampling process.Marketing research & MIS
the method of sampling to be used and the availability of time.
. supervisors and others.
7. the statistical method to be used for analysis of data. the researcher should select the field staff for the collection of data. money and other resources. It should be selected through suitable method. the final selection of the sample is to be made from a well defined population. After making all such preparations.Marketing research & MIS given to various factors such as data needs of the project. They include interviewers. Any suitable and convenient method should be selected for sampling purpose. Selecting the sampling method:
Methods of sampling are varied and broadly divided into two categories-probability sampling and non-probability sampling. The sample selected should be of suitable size. This will enable them to act efficiently and collect the required information within the time schedule prepared.
the sample designs are divided into the following two categories: 1. It may be based on the convenience or the judgment of the researcher.
. In these methods. stratified. The selection of sampling items is impartial and independent of the person making the study. In brief. Probability sampling methods include random sampling. Every item is not given a definite chance of being included in the sample. are the probability sample designs.Marketing research & MIS
SAMPLING METHODS/SAMPLING DESIGNS:
Sample designs are different methods used for the conduct of sample survey. judgment sampling and quota sampling. etc.
1. are the nonprobability sample designs while random sampling. Probability/Random Sampling Methods:
In the probability sampling methods. Quota sampling. sample units are selected in a non-random manner. area sampling. judgment sampling etc. There is no scope for any biased selection of sample units. Greater statistical competence and time are required to plan and probability sampling methods. etc. and 2. the sample units are selected at random. The selection may be purposive.
2. Every member in the universe has equal chance of being selected as the representative. Non-Probability Sampling Method. cluster. Probability Sampling Methods. Non-probability Sampling Methods:
Here. the sample is selected in a subjective manner and the decision regarding sample is taken by the researcher himself. sampling. The non-probability sampling methods include convenience sampling. Such methods are used extensively in marketing research.
The research process will start only when the marketing problem is identified clearly. 3. Determining research objectives: The objective decided should be specific. The research design indicates the method of research. Such methods are sometimes preferred because they cost less per observation. 2. 45
. The researcher can use primary and/ or secondary data for his project. The researcher has to decide the convenient method for data collection. 4. the method of sampling etc. Creating research design: The research design is a plan /blueprint of the whole research work to be undertaken. It gives all details of the research project and acts as a reference document during the execution of research project.
MARKETING RESEARCH PROCESS
• Details of steps in MR process:
1. Identifying and defining a marketing problem: The First step/ starting point in the MR process is to identifying the marketing problem which needs to be studied in depth and solved. 5. Conducting preliminary survey: The marketing team may suggest many marketing problem which they face. the instruments to be used for the research. required less time and need relatively little statistical sophistication in planning the sample design and in the selection the respondents. All marketing problems are not researchable and hence such preliminary survey is necessary. Determining the data needs and their source: The researcher has to decide the nature of data required for his study. measurable and also attainable.Marketing research & MIS Non-probability sampling methods are also used in marketing research along with probability methods. The research objectives decided act as a guide to the researcher and help him in maintaining a focus on the whole research project.
7. Data analysis and interpretation: The final step in a research study consists of analyzing the data and interpreting the results. 8. Preparation of research report: After drawing conclusions from the data collected. classification and tabulation of data are required. the researcher can make concrete recommendations for solving the marketing problem. field staff is required. data collected. A researcher also prepare a research report giving detail of research problem. This includes interviewers.Marketing research & MIS 6. 13. 11. Designing a sample of respondents: Sample is a small representative group selected from the total population for intensive study purpose. Designing the questionnaire: Questionnaire aspect relates to the selection of research instruments employed in research for collecting required information/data. 9. Sampling is necessary in marketing research as information collection from all consumers or all dealers is not possible due to time and cost involved. qualified staff should be selected on fair terms. 10. Data collection: Data collection moves the research process from planning stage to implementation stage. This raw data need proper processing. The questionnaire is one research instrument used extensively in a survey type research. editing. SUBMISION OF RESEACH REPORT: 46
. conclusions drawn and the recommendations made. For data collection. For this. supervisors and staff for secondary data collection. 12. scrutiny of data. The purpose is to establish a relation between the information and marketing problem under investigation. Communication between the researcher and the sample begins at the data collection as per the method selected for data collection. Selection of field staff: For data collection/ survey work. Data processing: The completed questionnaires are not useful directly for tabulation and drawing conclusions. coding.
For this research we use random sampling method:
Sample size: Total 90 people were contacted and interviewed.Marketing research & MIS In this stage. Companies which produce fast moving consumer goods and companies which produce product like suiting. We can see that every company is going for this marketing strategy for advertising their brands. recommendations. since. So through this research we are trying to find out. all are adopting this marketing strategy to advertise their product. customer recall is found to be higher with celebrity endorsement advertisement. The researcher may submit his findings.
PREFERENCE OF CONSUMER
Celebrity endorsement is a boom marketing concept in today’s world.
Due the different kind of characteristic of consumer. We segment them into the three categories. we used segmentation method. garments. the researcher will submit his research report to the appointing authority. automobiles. that whether consumer buying product just because that product is being endorse/ advertising by celebrity or which are those factors consumer take into the consideration while buying any product.
Sample design: AGE WISE 5—15 30 16—30 30 30—above 30
. etc. according to their age. etc.
Which things you give more preference while purchasing any product? (a) Quality (b) Celebrity (c) Style
7. Does celebrity attract towards product? Yes: ______ No: ________ 6. Do you buy the product endorsed by the celebrities? Yes: ______ No: ________ 4. Age: _________ Sex: ____________ Occupation: 1.Marketing research & MIS
Name:. Do you feel celebrities should advertise? Yes: ______ No: ________ 3. Would you like to switch your traditional product with new quality product? Yes: ______ No: ________
. Do you like seeing celebrities in the advertisement? Yes: _______ No: _______ 2. Do you feel they relay the message more effectively? Yes: ______ No: ________ 5.
Age group of 15-30.
DATA FOUND IN SURVEY
1. Do you feel celebrities should advertise?
. 1. 3. Age group of 05-15. 2. • The number of people interviewed was approximately 90. Do you like seeing celebrities in the advertisement?
100 80 60 40 20 0 1st 2nd 3rd group group group YES NO
2.Marketing research & MIS
ANALYSIS OF THE SURVEY:
• Three categories of people were interviewed. The three categories being. Age group above 30.
Does celebrity attract towards product?
. Do you buy the product endorsed by the celebrities?
100 80 60 40 20 0 1st 2nd 3rd group group group YES NO
4. Do you feel they relay the message more effectively?
100 80 60 40 20 0 1st 2nd 3rd group group group YES NO
5.Marketing research & MIS
100 80 60 40 20 0 1st 2nd 3rd group group group YES NO
Marketing research & MIS
100 80 60 40 20 0 1st 2nd 3rd group group group YES NO
6. Which things you give more preference while purchasing any product? (a) Quality (b) Celebrity (c) Style
100 80 60 40 20 0 1st group 2nd 3rd group group Quality celebrity style
7. Would you like to switch your traditional product with new quality product?
. its creates an interest to see the ad. The reason being. The 2nd group said that they should come in the ads because it attracts the customers towards the product for which they are advertising. All the three age groups like to see celebrities in the advertisements. it’s good that celebrities come in ads.Marketing research & MIS
100 80 60 40 20 0 1st 2nd 3rd group group group YES NO
Findings from the survey:
1. For the question "do you feel that the celebrities should do the ads" the 1st group said 'Yes' because they like the celebrities very much. For the 2nd and 3rd group are they come to know about a new talent in their favorite stars or celebrities and quality of the product. The 3rd group feel that as they are bored to see the same faces in the ads.they just like to see their favorite stars in the ads. for the 1st age group . 2.
4. For the question " do you think they relay the message more effectively".”
.. They insist upon buying the product endorsed by them.Marketing research & MIS 3. When it comes to buying the product endorsed by the celebrities the 1 st group says yes. The 2nd group is very choosy. after the pesticides problem. 6. They feel it’s because of Amitabh Bachchan for Cadbury and Aamir Khan for coke. the 1st group had no answer as such but the 2nd group agreed to the question and the 3rd group gave the example of cad bury and coke sales rising up still. they don't buy everything the celebrities endorse except FMCG goods like cold drinks and chocolates etc. When it comes to liking of celebrities. The 1st age group and the 2nd age group like to see the ads repeatedly but the 3rd group doesn't have that much inclination for it except a few selected ads. the 3rd group is basic1ally more of logical thinkers. They say that "it’s good to see the ads and enjoy more than going and buying only those products endorsed by them. 5. group 1 is very fond of celebrities.
. It helps to study various marketing problems in depth and offers various benefits to manufacturing and marketing firms or organizations. The purpose of MIS is to provide relevant and reliable information to all departments and facilitates quick and correct decision-making. MIS is the life blood of marketing decision-making. It facilitates large scale marketing with satisfaction and pleasure to consumers. sales promotion techniques used by the competitors. Marketing Research enables the firm or organization to make their business operations as per the needs and expectations of the consumers. raising its goodwill and also its market reputation. intensity of market competition. It also helps the firm to find out the method or strategies for making their products popular in the market.Marketing research & MIS
Marketing research is one of the essential supplements of modern highly competitive. It is essentially a systematic and objective study of different problems of marketing. consumer oriented and global marketing system. It provides information regarding consumers and their needs/ expectations.
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