INTRODUCTION TO MARKETING RESEARCH

The American Marketing Association Redefines Marketing Research

The New Definition: Marketing research is the function which links the consumer, customer,
and public to the marketer through
Information:
- Used to identify and define market opportunities and problems
- Generate, refine, and evaluate marketing performance
- Monitor marketing performance
- Improve understanding of marketing as a process

Marketing research is the systematic and objective

 identification
 collection
 analysis
 dissemination
 and use of information
for the purpose of improving decision making related to the
 identification and
 solution of problems and opportunities in marketing.

Market research is used to collect the information about the market, such as consumers’
needs, preferences, interests, market trends, latest fashion and so on. Market research should
not be confused with marketing research, which is the scientific and objective study of the
overall marketing process which involves collection, analysis, communication and utilization of
information, so as to help the management in the process of decision making and also resolving
marketing problems.
Market Research, as its name suggests, it is the study of the target market. It is an act of
collecting information about the marketplace and consumers within that market. It is used to
ascertain and analyse the market structure, size, recent trends, major players, customer needs,
taste, preferences, buying behaviour.
Market Research acts as a guide, that helps us to know about your customers, competitors,
needs, products, markets, etc.. The research helps in determining the viability of the new
product in the target market.

BASIS MARKET RESEARCH MARKETING RESEARCH

Meaning A study undertaken to collect Marketing research is the systematic and
information about the market objective study, analysis and interpretation
statistics, is known as market of problem related to marketing activities
research.
Branch of Marketing Research Marketing Information System
Scope Limited Wide
Nature Specific Generic
Involves Research of marketplace and the Research of all the aspects of marketing

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 buyer's behavior within that
market.
Dependency Dependent
Purpose To check the viability of the
product in the target market.
Independent
To make effective decisions regarding
marketing activities and to keep control on
the marketing of economic output.

Marketers can obtain information from:

• Internal data
• Marketing intelligence
• Marketing research
Internal databases are electronic collections of consumer and market information obtained
from data sources within the company network, including accounting, marketing, customer
service, and sales departments.
Advantages:
• Can be accessed more quickly
• Less expensive
Disadvantages:
• Incomplete information
• Wrong form for decision making
• Timeliness of information
• Amount of information
• Need for sophisticated equipment and techniques

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Marketing intelligence could be defined as “an ongoing process of continuously collecting
information about the industry in which our company operates, competitors, moves in
marketing or other functional areas, related industries (eg. Suppliers or substitute products),
government policies and actions in areas of export, import, taxation, liberalization, consumer
law enforcement, environment protection, and so on”
Marketing intelligence is the systematic collection and analysis of publicly available information
about competitors and developments in the marketplace.
• The goal of marketing intelligence is to:
• Improve strategic decision making,
• Assess and track competitors’ actions, and
• Provide early warning of opportunities and threats.
Marketing intelligence Marketing Research
Ongoing process Projects based on information gap
Usually done in-house Mostly outsourced to M.R. companies
Not meant for immediate action Action oriented
General purpose Very specific answers to questions
Focus on competition, environment Focus on consumers, influencers, etc.

Marketing research is the systematic design, collection, analysis, and reporting of data relevant
to a specific marketing situation facing an organization.

NATURE OF MARKETING RESEARCH

Meaning: - Marketing research is a systematic approach to solve marketing problems. The
American marketing association defines marketing research “The systematic gathering,
recording, and analyzing of data about problems relating to marketing of goods and services.”
The nature of marketing research is briefly stated as follows
1. Systematic process: - Marketing Research is a systematic process to identify and to solve
problems. The process of marketing research involves the following steps: 1. Identify the
marketing problems. 2. Create the research design. 3. Collection of data through primary and
secondary sources. 4. Processing of data. 5. Analysis of data. 6. Implementation of
data. 7. Finally, review or follow up of action taken.
2. Scope: -Marketing Research attempts to solve problems in a wide range of areas. The
problem relates to various areas of marketing such as: Product Research, Promotion, Research
Pricing, Research, Place Research etc.
3. Continuous in Nature: -Marketing research is continuous in nature. As long as the firm
exists, there is a need for marketing research; to overcome certain marketing problems arise
during existence of the firm.
4. Applied Research: -Marketing Research is conducted to solve specific problems of
commercial importance. Since, marketing research is subject to commercial considerations, it is
not a basic or fundamental research but an applied research which is used to solve specific
problems.

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5. Bridges Company-customer Gap: -Marketing Research bridges the gap between the
producers and the consumers. The company comes to know more about its consumers-their
likes and dislikes, tastes, preferences and buying patterns.
6. Company Objectives: -Due to marketing research, the company is a position to achieve its
objectives. Marketing research enables a firm to solve marketing problems. The resolving of
marketing problems enables the company to achieve its objectives in a profitable manner.
7. Marketing mix decisions: -Marketing Research provides necessary information to arrive at
appropriate solutions to marketing problems. Effective marketing mix like packaging, pricing,
promotion, distribution enables the firm to achieve marketing objectives.
8. Methods of Data collection: -Marketing research data can be conducted with the help of
various methods such as; Survey/interview method; Observation Method; Experimentation
method. (R&D, product trials).
9. Suffers from certain limitation: -Although marketing research is beneficial to the company
and the customers, yet it suffers from certain limitations, such as; limitation of time, limitation
of funds, limitation of data collection and data analysis techniques, problem of bias (partiality)
on the part of the respondents and of the interviewers and so on. Etc.
Characteristics of Research
a. Systematic Approach: Each step must of your investigation be so planned that it leads to the
next step. Planning and organization are part of this approach. A planned and organized
research saves your time and money.
b. Objectivity: It implies that True Research should attempt to find an unbiased answer to the
decision-making problem.
c. Reproducible: A reproducible research procedure is one, which an equally competent
researcher could duplicate, and from it deduces approximately the same results. Precise
information regarding samples – methods, collection etc., should be specified.
d. Relevancy: It furnishes three important tasks:
 It avoids collection of irrelevant information and saves time and money
 It compares the information to be collected with researcher’s criteria for action
 It enables to see whether the research is proceeding in the right direction
e. Control: Research is not only affected by the factors, which one is investigating but some
other extraneous factors also. It is impossible to control all the factors. All the factors that we
think may affect the study have to be controlled and accounted for.
Scope of Marketing Research:
Clark and Clark define marketing research as “The careful and objective study of product
design, markets and such transfer activities as physical distribution, warehousing advertising
and sales management. Thus the scope of marketing research lies in its variety of applications.”
1. Diagnosing the current situation or problem based on detailed information.
2. Clearly identifying competitive strengths and weaknesses.
3. Constantly analyzing what is happening in the market place.
4. Planning to watch company’s strengths with market opportunities by outlining objectives for
product and market development and devising strategies and tactics to achieve them.
5. Watching out continuously for threats to the achievement of those plans.
6. Monitoring the progress of strategy implementation.

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7. Research creativity, at its best, marketing research develops innovative ways to solve
problems. The main objective of marketing research is to enable manufacturers to make goods
acceptable and saleable and to see that they reach the market more easily, quickly, cheaply and
profitably without sacrificing consumer interest.
Scope of Market Research:
Market research covers the following items of study:
1. Size of the present and potential market.
2. Consumer needs wants, habits and behaviour.
3. Dealer wants and preferences.
4. Analysis of the market size according to age, sex, income, profession, standard of living etc.
5. Geographic location of customers.
6. Analysis of market demand.
7. Knowledge of competitors and their products.
8. Knowing the profitability of different markets.
9. Study the market changes and market conditions.
10. Analysis of various channels of distribution.
The scope of marketing research is very wide and comprehensive. It includes

1. Product Research
Product means the goods and services which are sold to the consumers. It includes consumer
products and industrial products. Product research studies the individual product. It studies the
making and marketing of the product. It studies the colour, size, shape, quality, packaging,
brand name and price of the product. It also deals with product modification, product

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innovation, product life cycle, etc. The product is modified (changed) as per the needs and
wants of the consumers. Therefore, the product will not fail in the market.
2. Consumer Research
Consumer is the person who purchases the goods and services. The consumer is the king in the
market. Consumer research studies consumer behaviour. It studies the consumers needs,
wants, likes, dislikes, attitude, age, sex, income, location; buying motives, etc. This data is used
to take decisions about the product, its price, place and promotion.
3. Packaging Research
Packaging research is a part of product research. It studies the package of the product. It
improves the quality of the package. It makes the package more attractive. It makes the
package more convenient for the consumers. It reduces the cost of packaging. It selects a
suitable method for packaging. It also selects suitable packaging material.
4. Pricing Research
Pricing Research studies the pricing of the product. It selects a suitable method of pricing. It
fixes the price for the product. It compares the companies price with the competitor's price. It
also fixes the discount and commission which are given to middlemen. It studies the market
price trends. It also studies the future price trends.
5. Advertising Research
Advertising research studies the advertising of the product. It fixes the advertising objectives. It
also fixes the advertising budget. It decides about the advertising message, layout, copy, slogan,
headline, etc. It selects a suitable media for advertising. It also evaluates the effectiveness of
advertising and other sales promotion techniques.
6. Sales Research
Sales research studies the selling activities of the company. It studies the sales outlets, sales
territories, sales forecasting, sales trends, sales methods, effectiveness of the sales force, etc.
7. Distribution Research
Distribution research studies the channels of distribution. It selects a suitable channel for the
product. It fixes the channel objectives. It identifies the channel functions like storage, grading,
etc. It evaluates the competitor's channel.
8. Policy Research
Policy research studies the company's policies. It evaluates the effectiveness of the marketing
policies, sales policies, distribution policies, pricing policies, inventory policies, etc. Necessary
changes, if any, are made in these policies.
9. International Marketing Research
International marketing research studies the foreign market. It collects data about consumers
from foreign countries. It collects data about the economic and political situation of different
countries. It also collects data about the foreign competitors. This data is very useful for the
exporters.
10. Motivation Research
Motivation research studies consumers' buying motives. It studies those factors that motivate
consumers to buy a product. It mainly finds out, Why the consumers buy the product? It also
finds out the causes of consumer behaviour in the market.
11. Market Research

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Market research studies the markets, market competition, market trends, etc. It also does sales
forecasting. It estimates the demand for new products. It fixes the sales territories and sales
quotas.
12. Media Research
Media research studies various advertising media. The different advertising media are
television (TV), radio, newspapers, magazines, the internet, etc. Media research studies the
merits and demerits of each media. It selects a suitable media for advertising. It does media
planning. It also studies media cost. It helps in sales promotion and to avoid wastage in
advertising.
Objectives of marketing research:
1. To understand the economic factors affecting the sales volume and their opportunities.
2. To understand the competitive position of rival products.
3. To evaluate the reactions of consumers and customers.
4. To study the price trends.
5. To evaluate the system of distribution.
6. To understand the advantages and limitation of the products.
7. To find new methods of packaging, by comparing other similar packages.
8. To analyze the market size.
9. To know the estimation of demand.
10. To evaluate the profitability of different markets.
11. To study the customer’s acceptance of products.
12. To assess the volume of future sales.
13. To study the nature of the market, its location and its potentialities.
14. To find solutions to problems relating to marketing of goods and services.
15. To evaluate policies and plans in the right course of action.
16. To know the development of science and technology.
17. To know the complexity of marketing.
18. To measure the effectiveness of advertising.
19. To estimate the potential market for a new product.
20. To assess the strength and weakness of the competitors.
Advantages of marketing research:
Marketing research has several advantages. They are:
1. Marketing research is used to measure market potential, characteristics and share of markets
for a company.
2. Companies can use marketing research to evaluate new product opportunities and product
acceptance and to test existing products relative to the competitor’s products.
3. It helps to make better advertising decisions.
4. It helps to evaluate the effectiveness of marking activities and draws attention to a potential
problem.
5. It helps the manufacturer to adjust his productions according to the conditions of demand.
6. It helps marketing of goods in efficient and economical way by eliminating all types of
wastage.
7. It helps a dealer to find out the best way of approaching potential buyers.
8. It helps to find out defects in the products and take corrective steps to improve the product.

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9. It guides a dealer in planning, advertising and promotion effort.
10. It helps to assess the effectiveness of advertising programmes.
11. It helps in evaluating the relative efficiency of different advertising media.
12. It facilitates to evaluate the selling methods.
13. It helps to minimize the risks of uncertainties.
14. It helps in exploring new markets for its products.
15. It guides a firm in making sales forecasts for products.
16. It helps to explore new uses of existing products.
17. It is quite helpful for a firm to launch a new product.
18. It helps the firm in knowing general conditions prevailing in the market.
19. It helps in determining pricing policies and pricing strategy of competitors.
20. It reveals the causes of consumer resistance, etc.
Major areas for marketing research identified by the management are:
1. Research on Markets:
This includes market trends, market share and market potential. It is a study of the size,
location, nature and characteristics of markets; and market is segmented on the basis of many
variables-age, sex, income, education, occupation, religion etc. In short, it can be restricted to
the study of “who, what, where, when, why and how” of actual and potential buyers.
2. Research on Sales:
It covers sales forecasting, quota selling, sales territory design and other sales related activities.
It analyses sales volume, salesman performance data, new product performance in test
markets, opinion on customer-related product data etc.
3. Research on Product:
It involves new product development, brand image, concept tests, product tests, test marketing
of new product etc. It analyses the strength and weakness of present products in relation to
diversification, simplification etc.
4. Advertising and Promotion Research:
It includes media research, copy research, merchandising, packaging and measuring and
effectiveness of various methods of advertising and promotion.
5. Corporate Growth Research:
It emphasizes the studies on economic and technological forecasting, measuring company
image, profitability measurement, merger, acquisitions, location etc.
6. Business Economic Research:
It is concerned with economic forecasting and business trend analysis. Planning and product
mix, price and profit analysis etc. are included.
Limitation of Marketing Research
 Marketing research tends to be fragmentary in its approach as a result of which it
becomes difficult to have an overall perspective in which a marketing problem is to be
viewed and studied.
 Marketing research is criticized on the ground that it becomes too superficial and faculty
in industry. While the principles of marketing research are good and based on scientific
lines, in industry, marketing research is very often used by those who have had no
formal training in the subject. Such person avoids using detailed investigations and

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 sophisticated techniques which require both time and patience on the part of marketing
researchers.
 There is an absence of a meaningful dialogue between the marketing management and
the marketing research team. As a result, marketing researchers get divorced from the
main stream of marketing. This denies them any opportunity to test their finding in the
practical marketing situation.
 Marketing research is not an exact science. There are several imponderables which
come in the way of getting accurate results. For example, consumer behaviour is an area
which is rather elusive and the theory does not go very far in disclosing it very precisely.
Analytical tools of marketing research are still deficient and cannot give us a precise
idea, especially on the behavioural aspects.
 Many businessman and managers base their work on judgment, intuition, and
perceptions rather than numerical data.
Thus marketing research is not always the best or only source of information to be used for
making decisions. It works best when combined with judgment, intuition, experience,
perceptions and passion. For instance, even if marketing research were to show there was
demand for a certain type of product, it still depends on the design and implementation of
appropriate marketing plan to make it succeed. Further, competitors could take actions which
were not foreseen when marketing research was undertaken. This also leads us to conclude
that the time taken for research should be the minimum possible, if we expect the conditions to
be dynamic, or fast-changing.
The Marketing Research Process: An Overview
A marketing research project starts with an information need. It ends with an actionable report
or presentation or both. In between are various steps to ensure that the marketing research
project achieves what it set out to do.
A diagrammatic representation of the Marketing Research Process is shown in the figure below
–

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 Marketing Research and Decision Making Process
Marketing research can be used in each stage of the decision making process. We will now see
how the decision making is supported by marketing research.
A) Identifying the existence of problems or opportunities
Decision making starts with a problem or an opportunity. A problem is a gap – the difference
between standard and actual; a difference between an expectation and the actual.
For instance, a firm expects to sell 1000 units of a product. However, it could sell only 900 units.
The gap of 100 units represents a problem. The relevant question is: why consumers did not
buy the product? What is an opportunity? It is a chance to increase benefits. If Government
takes a decision to distribute free laptops to students, it is an opportunity to laptop makers, to
sell laptops to the government.
Every company has to develop strategies to solve problems and grab opportunities. Before any
strategy can be developed, an organization must determine where it wants to go and how it
will get there. Marketing research can help managers plan strategies by determining the nature
of situations by identifying the existence of problems or opportunities present in the
organization.
B) Diagnosis and Assessment
After a problem or a potential opportunity is identified, the decision maker needs information
that clarifies the situation. Situation analysis is needed to make strategies. Diagnose the
situation – the internal environment and external environment. The internal environment
analysis yields information on strengths and weaknesses of a company. The external
environment analysis provides an identification of opportunities and threats.
How serious are the problems? How serious are the weaknesses?
How good are the strengths? How good are the opportunities?
Assessment is necessary to find answers to these questions. Managers need to gain insight
about the underlying factors causing the situation. If there is a problem they need to specify
what happened and why.
What factors are significant in the situation?
What factors caused the deviation from standard or expectation?
What is the magnitude of the loss?
What is the strength of the causal factors?
How can the situation be improved?
Similarly, if an opportunity exists, decision maker has to explore, clarify, and refine the nature
of the opportunity.
Marketing research provides diagnostic information with proper assessment of the strengths or
weaknesses for decision maker to know the situation.
C) Develop Alternatives and Select a Course of Action
What course of action is to be selected to resolve the problem or gain from an opportunity?
Marketing research is often conducted to obtain specific information to help develop various
alternatives. By providing the information on performance criteria (expectations, standards or
bench marks) it helps select the right course of action.

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For example, a researcher investigating reasons for shortfall in sales will find the following
information.
Marketing mix of company brand in question.
Marketing mix of competitors
Consumer expectations
Consumer satisfaction with the existing marketing mix.
Based on the information, decision maker can devise alternative courses of action like:
 Reduce price and maintain quality. Increase commission to middlemen. Maintain
promotion expenditure.
 Maintain price. Improve quality. Maintain commission to middlemen at the same level.
Increase expenditure on promotion.
Thus he can formulate different combustions of the marketing mix. Based on what is more
effective in convincing consumers, what is more effective in beating competition, what is more
cost effective among them, that course of action is chosen.
D) Implement and Evaluate the Course of Action
Evaluation research is conducted to inform managers whether planned activities were properly
executed and whether they accomplished what they were expected to do. Evaluation research
can be understood as performance-monitoring research.
For example, a firm decides to launch an ad campaign to increase sales and implements it. It
needs the following information to know that all is well with the decision.
Is the campaign conducted as per plans? What is the amount of expenditure incurred on it?
What is the frequency of ads placed in different media?
Which media is effective? How is the ad received by target audience? What is the impact on
awareness? What is its impact on sales?
If the research indicates things are not going as planned, further research may be required to
explain why something “went wrong.”

Marketing Research Suppliers

For the companies which have decided to conduct marketing research, the immediate question
is: “To whom can the job be assigned?” The companies have two options- (i) Internal team of
researchers (ii) Professional marketing research agencies. In other words, they have two
sources of supply of research- Internal suppliers and external suppliers.
Internal supplier is the marketing research department located within the firm. Major
corporations have their own marketing research departments. They conduct specialised
marketing research projects for the company.
External supplier is not a part of the firm. The external supplier may be a professional
marketing and Research firm. There are many such agencies like Anugrah Madison, IMRB,
Sampark, and MART.
They offer a wide range of marketing services including problem definition, developing an
approach, questionnaire design, sampling, data collection, data analysis, interpretation, and
report preparation and presentation.

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 1-15

Marketing Research Suppliers & Services

RESEARCH
INTERNAL SUPPLIERS EXTERNAL

FULL SERVICE LIMITED SERVICE

Field Branded
Syndicate Internet Products
Services
Services Services and Services
Customize Coding and
Standardized
d Data Entry Data
Services
Services Services Analysis
Analytical
Services Services

THE MAKE OR BUY DECISION

A decision facing all companies that want to use marketing research is who should do the
research. Alternatives are to have it done in-house, to utilize outside suppliers, or some
combination of the two. In short, sourcing marketing research is a “make or buy” decision. For
some companies, this decision is automatic—the in-house organization will do all research
unless it is beyond their technical expertise. Other companies with in-house capabilities treat
the internal units the same as outside suppliers: they must compete with outside suppliers by
preparing proposals and making bids for the business. Almost all research users will at some
time require the services of outside research suppliers.
Outside suppliers range from a full-service marketing research agency such as M/A/R/C
Research (http://www.marcresearch.com), Burke (http://www.burke.com), and Maritz
Marketing Research, Inc. (http://www.maritz.com), to a specialized survey software company
like Qualtrics (http://www.qualtrics.com) that provides sophisticated, yet easy to use online
data collection and analysis tools, combined with online training, customer support, respondent
panels, and analytical services for the client. Clients can negotiate with full-service companies
to perform only limited services, for example, research design and data collection only, if that is
all the client wants. Thus, there are many variations in the way outside suppliers are used.
When might the use of an outside research supplier be appropriate? There are a number of
situations that may call for the use of such firms:
1. The capabilities or technical expertise of in-house researchers are not adequate.
2. You are not able to hire needed personnel.
3. The outside supplier has the needed facilities for doing the research, such as those needed
for focus groups or laboratory experiments.
4. A research firm has a demonstrated expertise in a specific industry.

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5. There is no unused capacity in the in-house research organization.
6. Lack of objectivity on the part of in-house personnel
7. The outside research supplier can do the research quicker.
8. Some aspect such as data collection may be cheaper when done by an outside supplier
(purchasing supermarket-based scanner data may be less costly than collecting it yourself).
9. There is a need for anonymity or confidentiality that may be provided best by an outside
research firm.
10. The results of the research may be used in legal proceedings. If so, the outside research firm
may have more credibility in the eyes of the court or regulatory or legislative body.
Buying Marketing Research
Many a time, companies do not set up marketing research departments, as they do not have
adequate amount of research consultant as and when they feel the need for research.
Especially in a country like India, the number of companies having their own marketing research
departments is extremely limited. Many ‘buy’ marketing research from outside. Such
companies should know how to select a marketing research agency before sponsoring a
research study.
Choice of Research Agency
Why hire marketing research?
 If a firm does not have persons well-versed in research techniques, it has no choice but
to hire the services of a marketing research agency.
 When a firm has a separate marketing research department or cell, it may find at a
particular point of time that it is fully engaged on certain other studies and, as such, it
cannot take up an additional problem, for detailed investigation. In that case too, it has
to assign the study to an outside marketing research agency.
 The firm may find that an outside agency may complete the study faster, at a lower cost
as well as with the utmost objectivity. As such it may decide to assign its study to an
outside agency
Now the next question to be considered is that how does the firm go about choosing an outside
marketing research agency. In developed countries, there are a large number of such agencies
which either undertake complete ad hoc research projects or perform one or more specialized
services such as drawing a proper sample of respondents, interviewing respondents, or
processing data. In all those cases where it is necessary to hire outside agencies, the marketing
researcher must be able to evaluate such specialized services.
Considerations for hiring Outside Agencies
There are several dimensions which need to be kept in view while selecting an outside agency
for conducting Marketing Research. These considerations may be enumerated as below:
1. Technical Expertise
The marketing researcher should know who is to undertake the study and what is his
proficiency in marketing research. The client firm may find that a research agency is good at
basic studies but is not competent enough to undertake complex studies. Some research
agencies are poorly staffed and as such they should be avoided.
2. Objectivity
The question of objectivity is very important. Outside agencies should be reputable for their
objective approach in research projects.

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3. Confidentiality
The client firm must ensure that the research agency maintains strict confidentiality regarding
the project.
4. Economic Factors
A client firm may invite research proposals from more than one agency. In such a case, it would
choose the most economical agency. However, client firms should not overlook the fact that
some agencies are very economical, but at the same time their quality is also poor. Quality
should not be compromised.
5. Timely submission of reports
The client firm should enquire about the reputation of the research agency especially in relation
to its timely submission of reports. Sometimes, outside agencies are quick in taking up
assignments from clients but are not so prompt in carrying out the task.
6. Experience of The Supplier
The client firm should ascertain the standing of the agency. While general experience is very
important, relevant and specific research experience is what should be looked for.
7. Reputation of the agency
It is necessary to ensure that the agency has a good reputation. This consideration is important
for lending credibility to the research findings. This is of special importance particularly when
the client firm intends to use the study for creating an impact.
Since no single agency is likely to be strong on all these considerations, it is necessary that the
client firm adopt a reasonable approach in this regard. It should ascertain which of the above
criteria are crucial for its research project and then to select an agency.
Organizing Marketing Research Function
First of all, the question arises as to how the marketing research function is to be organized
within a firm. It should be notes that the organizational structure for this function will differ
according to the type of agency which is handling it. Organizational structure for marketing
research function differs according to the type of agency, which is handling it. Thus, a marketing
research organization in a manufacturing firm will be different from that in a research or a
consultancy firm, as the requirements an emphasis on research will be different. A major
difference between a manufacturing firm and a research firm is that whereas in the former,
research being one of the several activities is a means to an end, in the latter, research is the
only activity and is an end in itself. A research firm has to ensure that research work leads to
profit, whereas a, manufacturing firm need not be concerned with consideration.
Another point of difference between the two organizations is the degree of emphasis on the
practical utility of marketing research. A manufacturing firm would normally place greater
emphasis on the marketing research findings in the day-to-day marketing of its products.
However, this is not the case of marketing research firm as it is not engaged in marketing of any
product.
There are several options for an organization while making the decision for the structure of
marketing research function. For example, there could be a marketing research department or
cell with a skeleton staff if the marketing research functions is not considered very important.
Alternatively, the firm may have a well developed department comprising a number of
specialists as also the other supporting staff. The specific organization will depend on the

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requirement of each firm. A firm which has decided to introduce a marketing research function
has to decide which of the three options, should be selected:
1. To set up a formalized marketing research department consisting of some full-time specialists
whose main responsibility would be to carry out marketing research studies and report the
findings to the management,
2. To assign the marketing research responsibility to one or more line or staff executives on a
part-time basis, who would have to undertake it in addition to the major responsibility in other
sphere, and
3. To assign the responsibility of undertaking marketing research responsibility to one or more
line or staff executives on a part-time basis, who would have to undertake it in addition to the
major responsibility of undertaking marketing research to an outside individual or an
organisation.
In some firms, where a separate marketing information system exists, the marketing research
function may form a part of such a system. In such cases, marketing research acts as one of the
inputs to the marketing information system.
If the firm has decided to have separate marketing research department, then sufficient
freedom should be given to the latter to carry out its tasks. Another aspect that is relevant is
whether a large firm should have a centralized marketing research department or whether
alternatively each division or operating unit should have its own. The main advantage of the
centralized marketing research department is all there will be more effective coordination of
marketing research with marketing management. Also, effective control and supervision of
research can be ensured. On the other hand, if marketing research is undertaken by each
division or operating unit, it will enable researcher to be more knowledgeable about divisional
markets and their problems. In addition, such an approach will offer great autonomy to division
and operating units in their research activity which will ultimately be beneficial to the firm.
So we can conclude that marketing research plan should be written out in sufficient detail.
Before it is finalized, it should be circulated amongst the concerned officials in the company. It
should fit into the marketing plan of the company, as it is an important input in it. Although it
should be followed and implemented as far as possible, there should be an element of flexibility
in it so that certain changes, if found necessary, can be made.
Marketing Research in the 21st Century
Marketing research, is strongly influenced by two major trends in business: (i) Increased
globalization and (ii) Rapid growth of the Internet and other information technologies
Globalization Impact
Many organizations have gone global. The global environment is complex and less known to
firms when they make the entry decisions. They may require specific information about
markets, competition, consumer preferences and tastes and channel practices.
McDonald has to change the taste of their Pizzas as Indian consumers like spicy foods. If tanning
the body is important in USA, whitening is important in India. Accordingly, firms sell cosmetics
to the women consumers.
IT Impact
Internet is dramatically changing the face of business research. Information can be gathered in
virtual space. Following are the common approaches.
Getting information from Web sites

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 Conducting Web surveys
Participating in conversations through social media like Facebook and Twitter.
McDonald has to change the taste of their Pizzas as Indian consumers like spicy foods. If tanning
the body is important in USA, whitening is important in India. Accordingly, firms sell cosmetics
to the women consumers.
IT Impact
Internet is dramatically changing the face of business research. Information can be gathered in
virtual space. Following are the common approaches.
Getting information from Web sites
Conducting Web surveys
Participating in conversations through social media like Facebook and Twitter.

Classification of Marketing Research

- Problem Identification Research: Research undertaken to help identify problems which are
not necessarily apparent on the surface and yet exist or are likely to arise in the future.
Examples: market potential, market share, image, market characteristics, sales analysis,
forecasting, and trends research.
--Market potential research:
--Market share research:
--Market characteristics research
--Sales analysis research
--Forecasting research
--Business trends research
- Problem Solving Research
--Segmentation Research
--Product Research
--Promotion Research
--Distribution Research
Problem Solving Research: Research undertaken to help solve specific marketing problems.
Examples: segmentation, product, pricing, promotion, and distribution research.
-Segmentation Research
--Determine the basis of segmentation
--Establish market potential and responsiveness for various segments
--Select target markets
--Create lifestyle profiles: demography, media, and product image characteristics
-Product Research
--Test concept
--Determine optimal product design
--Package tests
--Product modification
--Brand positioning and repositioning
--Test marketing
--Control score tests

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- Pricing research
--Importance of price in brand selection
--Pricing policies
--Product line pricing
--Price elasticity of demand
--Initiating and responding to price changes
- Promotional research
--Optimal promotional budget
--Sales promotion relationship
--Optimal promotional mix
--Copy decisions
--Media decisions
--Creative advertising testing
--Claim substantiation
--Evaluation of advertising effectiveness
-Distribution Research
Determine…
--Types of distribution
--Attitudes of Channel members
--Intensity of wholesale & resale coverage
--Channel margins
--Location of retail and wholesale outlets

ETHICS IN MARKETING RESEARCH

For most people, the terms ‘ethics’ refer to rules that distinguish between what is right and
what is wrong. However, the dictionary meaning of ‘Ethics’ conveys that there are certain
norms or principles of conduct concerning right and wrong and how people should behave.
Ethics are not laws but certain norms of conduct which people should adhere to and
repercussions could arise if one selects unacceptable behaviour over the acceptable one.
When research is to be carried out, the researcher’s have responsibilities towards their
profession, clients and the respondents. So it is necessary that certain high ethical standards (or
principles or values) are framed to ensure that both the function and information are not
brought into a state of bad reputation.
The Marketing Research Associations (MRA) had established a code of Marketing Research
Standards so that MRA members carry out the research in a honest way using scientific,
statistical and proven methods and in an ethical manner too. This will also instill confidence in
the public that the research is done in a professional and fair manner. Simply put, the code of
marketing research standards 2007, puts responsibility on the researcher to carry out the
research as per the prescribed code of conduct, respect the general public and it rights.
There are three groups involved in the process when conducting marketing research: The
sponsor, the researcher and the participant. There are certain rights related to privacy,
motivation, quality and safety which are provided to each group during and after the research.
The Sponsor’s or Research Client’s Ethics
The more common ethical issues concerning the sponsor are related to:

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Requesting for bid to obtain free advice and methodology
a) At times, the client may have preference for one research supplier over another
probably due to having developed a good working relationship, quality of research staff,
ability to meet deadlines etc. But it is unethical on the part of the sponsor to
predetermine which supplier will receive a contract and at the same time also invite
proposals from other suppliers to satisfy corporate requirements, which require more
than one bid. It is unethical to make organisation’s which have no opportunity to win a
contract, waste their time, money and efforts to make a bid.
b) At times, sponsor clients who are looking out for bargain prices to carry out the research
will solicit detailed proposals including the sample questionnaire and the complete
methodology from a number of suppliers. Thereafter, the sponsor may make use of the
best of these information, frame a questionnaire and directly enter into a contract with
field service providers to collect the necessary data. Or the sponsor (or client) may
approach the cheapest supplier with their own proposal, which has been arrived at by
making use of the best of the ideas from the other proposals. In this way the client will
try to get the supplier to conduct a more elaborate study at lower prices.
Making false promises
In order to lower their research costs for the current project, the sponsor or client will try to
extract a lower price (or bid) from an unsuspecting researcher with a false promise of future
researches, which in reality is not likely to occur or may not take place.
Requesting proposals without receiving authorization to do
There can be instances where the client representative has sought proposals without being
authorized with proper funds to do so or implement them. The following instances will
illustrate this (a) A client will invite proposals from suppliers and then approach the
management to see if he can get necessary funds to carry them out. (b) There is a clash of ideas
between the client representative and the management on the necessity of marketing research
in a given area, the research supplier not being aware of this put’s forward the proposal (which
meets the client representative’s requirement) but the management rejects it out of hand
(c) Sometimes researchers face situations where their efforts are misused by certain people
(employees) to serve the latter’s organisational goals (say, to postpone a delicate decision or
avoid some responsibility or to give respectability to a decision already made).
Misuse of information
The client firm should not misuse information gathered for purposes other than it is to serve. A
very common form of misuse is related to do comparative advertisements of product
performance claims based on tests carried out with data that does not hold statistically much
significance. Researchers, sometimes find themselves in situations involving requests from sales
or other personnel within the organisation, for access to the personal information of
respondents or the results of the study. Such requests may be for unethical reasons say to
generate sales leads or for making sales calls. These actions are clearly indicative of abusing the
respondents rights, who may ‘in turn’ refuse to cooperate during future studies too.
Research Suppliers’ Ethics
The more common unethical issues related to the research suppliers are:
Low ball pricing: Low ball pricing means quoting an unethically low price to secure a firm’s
business offer and then after accepting, using reasons and means to raise the price

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substantially. For instance, say after committing to carry out the research at a quoted price,
later on, informing the sponsor or firm that the respondents’, fees for participation is going to
be charged on an ‘extra amount’ basis. The researcher should stick to the contract price unless
mentioned in the contract itself.
Allowing subjectivity and making an improper execution of the research: The research
suppliers are supposed to carry out the marketing research projects in an objective manner
ensuring that utmost care is taken so as to avoid personal biases or go for biased sampling,
misusing statistics or ignoring relevant data, so as to create a research design to support the
predetermined objectives and in reality not conveying the right picture.
Violating Client Confidentiality: Disclosing personal or business information about the client
gathered from the research carried to a third party, is said to be unethical and in violation of
the client’s confidentiality.
Abusing Respondents: Abusing of respondents is quite often the most frequent and a
controversial problem that arises as a part of the ethical concerns. Any respondent who
participates in a research project has the right to privacy, right to safety, right to know the true
purpose of the research, right to the research results and the right to decide on which
questions to answer. Any form of violation of the above mentioned right of the respondent can
be considered to be unethical and his (or her) abuse.
Field Service Provider’s Ethics
Using professional respondents
Usually, field service providers are supposed to maintain a database and profile of persons
willing to participate in qualitative discussion projects. Since it is easier to use these group
respondents, the field service providers may utilise the existing database. If need be only they
must use professional respondents, otherwise it will be unethical.

Marketing Research Process

Step 1: Problem Definition
Step 2: Development of an Approach to the Problem
Step 3: Research Design Formulation
Step 4: Fieldwork or Data Collection
Step 5: Data Preparation and Analysis
Step 6: Report Preparation and Presentation

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