Name of Student: Bakhtawar

ID: 2403-2018

MID TERM EXAMINATION

SPRING - 2021
Department / Total
Program Semester Course Title Instructor
Faculty Marks
Faculty of
BBA/ Marketing Saad Ahmed
Management 8 25
MBA Research Khan
Sciences (FMS)

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Question Total Obtained
Marks Marks
1 5
2 5
3 5
4 5
5 5
Total 25

MID TERM EXAMINATION (SPRING – 2021)

Course Title: Marketing Research
Instructor's Name: Saad Ahmed Khan
_____________________________________________________________________________

Note: Attempt all questions:

Q.1) What is Marketing Research? Define and explain the in detail the classifications of Marketing
Research? Also use examples to support your answer.
[5-Marks]
ANS:

Marketing Research :
Marketing Research is a basic component of business strategy . It's a process of gather information about
target market , evaluation of new products and customers , it's a systemic design of identification ,
collection , analysis and finds out best solution to problems .
Marketing Research has been Classified into two categories
1) Problem Identification Research :
Problem Identification Research is type of research which undertaken by marketing team to identify
what type of problems they might have in future . These problems may not exists yet but are more likely
to happen in future .

Examples :
When a company intend to launches new products it carries Market potential Research to see how
Market will welcome product or which market will be good to launch. It helps to see the feasibility of
idea and demand in market . Other examples of problem Identification Research includes Forecasting
Research , sales Analysis Research , business trends Research and Market Characteristics research .

2) Problem Solving Research :

Problem Solving Research undertaken by marketing team to identify the solution of specific marketing
problem through marketing mix and segmentation .

Examples :
Market segmentation is the best example of problem Solving Research . Hypothetically a entrepreneur
wants to start a restaurant of certain category (Chinese) then he should evaluate the market that where he
can find more customers and which area will be approachable for people. This segmentation of target
market is important in starting a new business or to forecast the existing business . Other examples of
problem Solving might include Distribution Research , Promotional research , pricing research and
product research .

Q.2) List down and explain the six steps of Marketing Research Process? Define the 7 tools of
marketing by using examples. Explain the process of Market Segmentation and selection of Target
market. [5-Marks]

ANS:
Steps of Marketing Research Process :
Steps of marketing research process are listed below
1) Defining a problem (Problem definition) :
This step is the most vital step of marketing research as other steps will be based on this definition . To
define or identify the problem there will be combination of discussions with decision maker, analysis of
available data , interview with the experts and intelligence .
2) Developing an approach to the Problem :
Second step involved in the approach that how the problem will be addressed it allows researcher to
isolate the problem into manageable pieces it usually involves with the formulation of objective , factors
that influence research design , hypothesis of research design and identification .
3) Research Design Formulation :
It's a blueprint for conducting marketing research process in the most effective way , it specifies the
details of procedures which are necessary for obtaining the required information , purpose of this step is
to design study which will test hypothesis . Secondary data analysis , qualitative research are it's further
steps .
4) Framework or Data Collection :
Data collection is the most Crucial step, it involves field force or staff that operates in the field as in case
of personal interviewing focus groups , Qualitative and quantitative basis . This field work interview
may also conducted in home , computer assisted devices , mobile phones ,in home or via mail .
5)Data Preparation and Analysis :
Analysis of data is the process of inspecting , editing , coding , transforming , transcription , cleaning ,
modeling of data with goal of isolating usefully information from that data.
6)Report Preparation and Presentation:
During Report Preparation and Presentation the entire document of the findings must be documented
and communicated to client. This document should address specific research finding from problem
Identification to approches with all the data collected and the results of major findings.

MARKET SEGMENTATION
For Market Segmentation, we need to identify basis for segment the market. There are different ways to
segment large homogeneous market into small heterogeneous market. Where, we select people on the
basis of:
 Geography – segmenting your audience based on the region they live-in.
 Demographics – age, gender, income, occupation and family status.
 Psychographics - Personality, Lifestyle, attitude, social class.
 Behavioral – benefits sought, occasion, customer loyalty.

When we divide the whole market by symmetrical line so the segments are still homogeneous as they
are equally divided.
Now the market is heterogeneous because the segment is created by in asymmetrical lines.

It becomes a single framework. However, these are various segments/frameworks and we need to study
all the segments with doing the market segmentation and when profile of these 16 frameworks matches
your product profile then it becomes your most preferred segment which is called target segment.
Target segment = Target market

TARGETING is the second stage of the segment, target, positioning process. After the market has been
separated into its segments, the marketer will select a segment or series of segments and 'target' it/them.
Resources and effort will be targeted at the segment. It's like looking at a dartboard or a shooting target.
You see that it has areas with different scores - these are your segments. Aiming the dart or the bullet at
a specific scoring area is 'targeting'.

For Example - Market Segmentation – Red Bull

All the energy drink brands have tried to match the success of Red Bull & target the same segment of
18-34 year old males. The methods used to reach this audience usually include associations with various
extreme sports like Snowboarding, Skateboarding, F1 and World Rally Championship they targeted the
young audience who are associated with such sports activities where energy drink is the main cuisine😊

There are two criteria for product or service launch:

1. First idea generation and then look for the market for your product
 2. Identify what is the problem people are facing, then you compress the number of people having
similar problems, then find a solution for that problem and then that solution is transferred in a
form of a product and then that product is offered to the people.

TOOLS OF MARKETING:

PRICING STRATEGY: There are two types of pricing strategies, skimming and penetrating. The
practice of ‘price skimming’ involves charging a relatively high price for a short time where a new,
innovative, or much-improved product is launched onto a market.

PRODUCT PRICE One of the most important decisions in marketing is price. This is because price is
believed to have impact on sales volumes. If the price is too high and the market is competitive, sales
may be correspondingly reduced. The main reason for the importance of price is that it is one of the
main variables that determine the profit.

PLACEMENT & DISTRIBUTION CHANNELS: A distribution channel is defined as: “Elements of

the system of delivery of merchandise to customers from the manufacturer or wholesaler, including
retailers, brokers, and shipping companies; also includes discussions of store merchandising and cross-
merchandising.” The 'distribution system' refers to the entire marketing process, and not just the physical
product distribution. It is a set of interdependent groups and individuals concerned with transferring
specific goods or services from the original producer or supplier to the final user.

POSITIONING is undoubtedly one of the simplest and most useful tools to marketers. After
segmenting a market and then targeting a consumer, you would proceed to position a product within that
market. Positioning is all about 'perception'. As perception differs from person to person, so do the
results of the positioning map e.g. what you perceive as quality, value for money, etc, is different to my
perception. However, there will be similarities. Products or services are 'mapped' together on a
'positioning map'. This allows them to be compared and contrasted in relation to each other
Q.3) Explain in detail what are the Pre Step 1 and Pre Step 2 before defining a problem? What is the
importance of defining a problem? Explain the Management Decision problem and Marketing Decision
problem in detail. Also use examples to support your answer. [5-Marks]

ANS:
Pre step 1 :
In prestep 1 there will be marketing audit which involves systemic , analysis and evaluation of the
origin of the problem. Marketer must know from where the problem arises so he can take further
actions.
Examples:
Hypothetically : there is a soft drink company which was doing good in sales but this quarter it's sales
drops on very bad numbers then marketer did it's research and found out that there is new competitor in
market which is offering good deals to customers.

1) Discussions with the decision makers :

 History of problem :After knowing the origin of the problem marketer must know it's history
how it led , which events made this problem arises.
Example: when did this competitor penetrate market and how it attracted customers
 Alternatives: History of problems will help to listed all available actions that a marketer can
take .
Examples: cutting off prices , introduces another product, introduce attractive marketing compaigns ,
calling for deals to attract customers .
 Criteria : what should be the criteria to evaluate all alternative courses of action .
Example : opening Surveys or internal team meeting .
 Potential actions : Actions which marketer suggested to take must be based on Research
findings .
Example: marketer did survey which resulted that the competitor's price is more customer friendly than
it's product then the marketer take decision to lower it's price based on survey.
  Information needed : marketer must gather the information as it is needed to answer to DM .
Example : price of the competitor's product , their marketing campaign , demographics etc
 Uses of Information : once the information is gather it will be easier to take decision in order to
get company's sales back.
Example : when it gets information that competitor has targeted teen age group and certain geographic
location as it's marketing strategy than it will east for DM to take decision.

 Cultural Influences : marketer must analysis it's cooperate culture as it plays vital role in
decision making .
Example : Ethics of company plays important role in any decision making as it's culture should be
fluent so employee can trust the strategy and give it's 100% to gain to result.
2) Interviews with Industry experts :
Marketer Undertaken surveys with professionals , this is mostly applicable in new products
Example : before introducing soft drink to the market Survey takes place with the industry experts to
evaluate the pros and cons of the Product .
3) Secondary data analysis:
Secondary data analysis consist of Secondary and primary data which is collected by the researcher to
address the specific research problem.
Example : Sales of the soft drink is not hitting Break even and still on loss than data will be collected to
see the problem this problem may be because of external or internal factor.
4) Qualitative Research :
This Research is unstructured and it based on small groups intended to find the insight of the problem .
Example : Focus groups and depths interviews takes place to evaluate the problem setting .

PRE STEP 2 :
Environmental Context of the problem :
In this Step marketer evaluate the environmental factors that plays role in arising a problem these
environmental factors may include past information and forecast , Resources and constraints,
objectives , buyer behaviour , legal information , Economic environment , marketing and technological
skills .

Example:
During pandemic imtiaz super markets sales were disturbed as it includes both buyer behaviour and
economic environment . Unemployment was hitting the rock and buyer was afraid to go out due to
pandemic and other lockdown crises. Imtiaz evaluated the problem and came up with the solution of
digital marketing after this customer could easily order whatever he wanted through just one click .
Importance of Defining a Problem :
Every business and every business person need to master the ability to find the problem as it helps to
sustain the over all performance of the company which ultimately smooths the sales , brand image and
other components of marketing strategy . If a business person fail to define a problem he will never be
able to find out why his all plans are not in a way they are supposed to. Evaluation of problem helps
saving time , money and resources.

Management Decision Problem :

Management decision problem is related to DM of the company or we can say that when situation arises
and management of the company needs to make a decision .
Example :
During a pandemic there was huge demad of sanatizers , survey with the industry experts undertaken
which resulted that company should introduce sanatizer to the market. Here the decision is totally upto
management to take that should they introduce a new product to the market ?
Further examples may be should the advertisement campaign be changed ? Should the price of the brand
be increased ?

Marketing Research Problem :

Marketing research problem is a problem which asks what information is needed to evaluate the
problem and how it should be obtained . Marketing researcher provides necessary information in order
to take the right decision .
Example :
 How effective is current advertisement campaign ?
 How elastic Is demand ?
 How effective will be the price change to the sales ?

Q.4) Define and explain in detail the 5 components of an approach to the problem? Use examples to
explain your answer. What is the Criteria for selecting a Research supplier? [5-Marks]

ANS:
Components of an Approach to the Problem:
1) Objective or theoretical framework :
Theory is a conceptual scheme based on foundational statements of the basic process with respect to
problem . Theory is developed by using objective and secondary evidence .theory and objective
framework may include developing variables and hypothesis , selection of research procedures such as
surveys and social experiments , Selection of samples , analysis and interpretation of data
Example :
Undertaken surveys to evaluate competitors in market .
2) Analytical Models :
Analytical model is a set of variables which is close to the solution it's interrelationship is designed to
represent real process or system .

The most common forms of analytical models are ;

 Verbal model :
In verbal model variables and their relationship are stated in prose form .
Example : Consumer first visits the departmental store then evaluated all factors which will affect
departmental store after the evaluation and Understanding the consumer forms a degree of
preference for the store . If the degree of preference is strong than consumer will patronize the store.
 Graphical Models:
Graphical Models are visual and not numerical. These models are designed to isolate variables and
suggest direction of relationship between variables .
Example : How understanding of variables (departmental store) affects the evaluation of factors
(external factors)
 Mathematical Model:
In mathematical Model Variables and it's relationship are stated in a equation form
Y = Β0 + Β1X

3) Research Questions :
When a problem arises marketer approaches to research question as it helps to provide statement of the
specific component of the Problem .
Example :
 Does we introduce new product to the market ?
 Should be decrease prices ?
4) Hypothesis :
Hypothesis is the possible answer to the research question , these statements are unproven and are in
interest of the Researcher .
Example :
 H1: positive evaluation of department stores lead to preference of department store
  H2: Strong preference of department store leads to patronization of department store
CRITERIA OF SELECTION OF RESEARCH SUPPLIER :
Marketing Research supplier provides most of information which is needed for making decision these
suppliers can be internal or external . Internal suppliers are located within the firm while external
suppliers are not in firm but they offer entire range of problem definition, sampling and collection of
data.

Supplier can be selected by evaluation of given points

 What is the reputation of supplier in market
 Are they flexible ?
 What are their ethical standards ?
 Do they complete their project on given schedule ?
 How they communicate with the client ?
 What is the quality of their Research ?
 What kind of experience does supplier has ?
 Do the supplier has both technical and non technical sources.

Q.5) Define Research Design? List down the five components of a Research Design? Define & Explain
Exploratory Research Design and Conclusive Research Design (Descriptive & Causal Both) by giving
examples.
[5-Marks]
ANS:
Research Design:
Research Design is the framework of systemic approach which marketer uses to conduct marketing
research projects .
Research design includes with the gathering of needed information and solve marketing problems .
Components of Research Design :
1. Define the information needs .
2. Design exploratory, descriptive or casual phases of research.
3. Specify the scaling and measuring procedures , construct and pretest a questionnaire
(interviewing form) or an appropriate form of data collection .
4. Specify the sampling process and sampling size .
 5. Develop a plan of data analysis.

Exploratory Research Design :

Exploratory Research Design carried out in a situation where the problem have to be defined more
precisely . This Research is conducted to have better understanding of existing problem by formulating
hypothesis and gain better insight of the problem and relevant courses of action identified .
Example :
The owner of Clothing brand which specifically focuses bridal dresses has many ideas of introducing
other clothing categories included Casual, eastern and western dresses . The owner think that it will
provide one platform to customer to shop for any event in this way they will expand their market size
and sell more dresses . But he is not sure about this idea and he needs more information for that. In
order to get more information owner undertaken Exploratory Research to know whether expanding
variety of clothes is better idea or is there any other way ?

Conclusive Research Design :

Conclusive Research Design is used to predict specific hypothesis , specific relationship between
variables . Conclusive Research Design is structurally more formal than expolatory . This Research
Design is based on large sample size . It describe the casual relationship Of large population.
Conclusive Research Design can be sub-divided into descriptive research design and casual Research
Design .

1) Descriptive Research :

Descriptive Research is carried out to study population situation , market characteristics and functions .
This Research can be taken by market mapping , market sizing and by using Census .
Example :
When company introduced nutritional Suppliment they carried out descriptive research to determine the
average age of purchaser of Nutritional Suppliment.
2)Casual Research:
This Research is carried out to obtain evidence regarding relationship between variables (cause and
effect ).
Example :
If we increase advertising campaign or financing on advertiy than how much it will impact on sales .