Marketing Research & Analytics (Unit 1-6)

EAST WEST
INSTITUTE OF TECHNOLOGY
DEPARTMENT
OF
MBA & RESEARCH CENTRE
MARKETING RESEARCH &

ANALYTICS
Subject Code: 20MBAMM304

DILIP KUMAR H G, Assistant Professor
MARKETING RESEARCH & ANALYTICS (20MBAMM304)
MODULE 1
INTRODUCTION
Meaning of Marketing research; when marketing research is unnecessary; Nature and

Scope of Marketing Research; Marketing Research in the 21st Century (Indian Scenario);
limitations of Marketing Research; threats to marketing research;
Introduction to marketing intelligence: concept of marketing intelligence (MI),
components, need for MI, Domains of MI. Ethics in marketing research. Design of
consumer experiments using Conjoint Analysis. Case Study on Marketing Research
Dynamics.
Meaning of marketing research:
The origin and development of marketing research was started in England. In 1911, Prof.
Arthur Bowie used the method of random sampling and published a paper entitled “Working
Class Households.” Afterwards, a German Prof. Whilhelm Vershofen, who is known as the
father of market research, developed it
“Marketing research is the careful and objective study of product design, markets, and such
transfer activities as physical distribution and warehousing, advertising, and sales
management.”
- Clark and Clark
“Marketing research is the inclusive term which embraces all research activities carried on
for the management of marketing work, the gathering, recording and analysing of all facts
about problems relating to the transfer and sale of goods and services from producer to
consumer.”
From the above definitions, it is clear that marketing research is concerned with tackling the
problems emerging from the beginning to the final stage of marketing process.
Nature of marketing research
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.
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.
Prof. Dilip Kumar H G, Assistant Professor, East West Institute of Technology,Bangalore 2

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.
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.
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.
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.
Methods of Data collection: Marketing research data can be conducted with the help of
various methods such as;
Survey/interview method
Observation Method
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.
Scope of marketing research:

Marketing Research is essential for strategic market planning and decision-making. It helps
a firm in identifying what are the market opportunities and constraints, in developing and
implementing market strategies, and in evaluating the effectiveness of marketing plans.
The scope of marketing research covers following areas:

1. Research on Products:
Products involve goods and services. This branch of marketing research covers all the issues
related to firm’s products.
It studies and solves the product-related problems, such as:

i. Study of products’ qualities and performance
ii. Study of physical and psychological characteristics of product
iii. Determining uses of the existing products
iv. Comparative study of competitive products
v. Detecting consumers’ problems related to the products

vi. Determining need for developing new products

vii. Assessing success of a new product in market, including market testing
2. Research on Market:
This area of marketing research deals with market/consumers. It studies characteristics and
compositions of the target markets. It covers both current as well as potential markets.
This branch includes:

i. Defining and selecting target market
ii. Studying needs and wants of target market
iii. Study of size and location of current market
iv. Assessing the current market trends and projecting the future trend
v. Analysis of territorial sales opportunities and potential
vi. Setting sales territories and sales quotas
vii. Market share analysis
viii. Studies on relative profitability of different markets
3. Research on Sales Methods and Policies:

This area of marketing research, particularly, concerns with study and analysis of the sales-
related activities.
Various aspects covered under this head may be listed as below:

i. Study and analysis of sales records
ii. Analysis of sales territories in terms of products, size of orders, times, terms and
conditions and methods
iii. Study on activities and effectiveness of salesmen
iv. Evaluating existing selling methods
v. Sales force management including size, compensation, training, control, etc.
vi. Study on effect of various promotional tools such as advertising, personal selling, sales
promotion, and publicity tools on sales
vii. Study on organization structure of sales department
4. Research on Advertising:
Advertising is one of the powerful methods of market promotion. Major part of promotional
budget is devoted to advertising activities. Therefore, it is imperative to conduct research on
various aspects related to advertising.
Under this area, at least following aspects are covered:

i. Comparative study of various elements of promotion
ii. Study on advertising objectives, media and media selection, advertising message, theme,
copy, and advertising agency
iii. Social aspects of advertising – negative and positive effects of advertising on society

iv. Advertising role in different stages of product life cycle
5. Research on Pricing:
Price is an important element of marketing mix. In developing and underdeveloped countries,
price plays a vital role. Suitable pricing policies and methods can contribute positively in
attainment of marketing goals. It is clear that price has remained a major determinant of
buying decision.
This branch covers:

i. Study on pricing objectives
ii. Study on effectiveness of pricing policies and strategies
iii. Study of various methods for setting price
iv. Quality v/s value analysis
v. New product and pricing policies
vi. Study on effect of discount, allowance, and seasonal variables
vii. Pricing strategies on different stages of product life cycle
6. Research on Distribution:
In today’s marketing, distribution has unique role to determine success of product. A
marketer can contribute to total consumer satisfaction by designing appropriate distribution
network. Physical distribution and distribution channel are two important components of
such research.
This area includes:

1. Assessing role of distribution decisions in achieving marketing goals
2. Comparative study of between direct and indirect distribution
3. Physical distribution and ancillary services
4. Study on various types of channels of distribution
7. Research on Business Environment and Corporate Responsibility:

This area is not concerned with solving any marketing problem directly. In order to collect
and analyze data related to broad business environment, such research is conducted. The
study on the area helps manager formulate strategies for the current and the future market as
well. It also helps assess strengths and weaknesses of marketing department in relation to
business environment. In today’s dynamic business environment, the study on various
economic, social, and cultural variables is extremely important. Similarly, it is necessary to
analyze corporate responsibility.
Main aspects covered under the head include:
i. Business analysis including demand, national income, per capita income, trade and
industry, economic growth rate, fiscal monetary policies, and export-import policy.
ii. Short-term and long-term business forecasting.
iii. Technological aspects.
iv. Availability and quality of productive resources.

v. Impacts of legal provisions and Acts.

vi. Study on consumerism and the consumer rights.
vii. Social and cultural values affecting business policy.
viii. Pollution and ecological imbalance, and social responsibility of business.
Marketing Research in 21st Century.
The 21st century has seen the advent of the new economy, thanks to the technology
innovation and development. To understand the new economy, it is important to understand
in brief characteristics and features of the old economy.
Industrial revolution was the start point of the old economy with focus on producing massive
quantities of standardized products. This mass product was important for cost reduction and
satisfying large consumer base, as production increased companies expanded into new
markets across geographical areas. The old economy had the organizational hierarchy where
in top management gave out instructions, which were executed by the middle manager over
the workers.
In contrast, the new economy has seen the buying power at all time thanks to the digital
revolution. Consumers have access to all types’ information for product and services.
Furthermore, standardization has been replaced by more customization with a dramatic
increase in terms of product offering. Purchase experience has also changed as well with the
introduction of online purchase, which can be done 24 × 7 with products being delivered at
office or home.
Companies have also taken advantage of information available and are designing more
efficient marketing programs across consumers as well as the distribution channel. Digital
revolution has increased speed of communication mobile, e-mail SMS, etc. This helps
companies take faster decisions and implement strategies more swiftly.
Marketing is art of developing, advertising and distributing goods and services to consumer
as well as business.
However, marketing is not just limited to goods and services it is extended to everything
from places to ideas and in between. This brings forth many challenges within which
marketing people have to take strategy decisions. And answer to these challenges depends on
the market the company is catering to, for consumer market decision are with respect to
product, packaging and distribution channel.
Knowledge and awareness of product is very essential for marketing people as businesses
are on the lookout to maintain or establish a credential in their respective market.

For global market, marketing people have to consider not only culture diversity but also be
careful with respect to international trade laws, trade agreement, and regulatory
requirements of individual market. For non for profit organization with limited budgets,
importance is related to pricing of products, so companies have to design and sell products
accordingly.
Marketing philosophy employed by any given company has to be mix of organization

interest, consumer interest and societal interest.
In production philosophy, companies focus is on numbers, high production count, which

reduces cost per unit and along with mass distribution. This kind of concept is usually making
sense in a developing market where there is the need of product in large numbers.The
product philosophy talks about consumers who are willing to pay an extra premium for high
quality and reliable performance, so companies focus on producing well made products.
The selling concept believes in pushing consumers into buying of products, which under
normal circumstance, they would be resistant. The marketing concept believes consumer
satisfaction, thereby developing and selling products keeping focus solely on customer needs
and wants.The customer philosophy believes in the creation of customized products, where in
products is design looking at historical transaction of consumers.
One major trend observed is the need of stream lining processes and systems with the
focus on cost reduction through outsourcing.
Another trend observed in companies is, encouragement to entrepreneur style of work

environment with glocal (global-local) approach. At the same time, marketers of companies
are looking forward to building long term relationship with consumers. This relationship
establishes platform understanding consumer needs and preference. Marketers are looking at
distribution channels as partners in business and not as the customer. Companies and
marketers are making decisions using various computers simulated models.
To summarize 21st century marketing is challenge, which is to keep up pace with changing
time.
Limitations of marketing research
1. Effect of Extraneous Factors:

Extraneous means external and uncontrollable factors. In most of the cases, the extraneous
factors affect marketing research results adversely. Due to impact of such factors, the net
impact cannot be estimated
2. Time Gap Makes Research Irrelevant:

Systematic marketing research project needs more time. It takes weeks, months, even years.
When marketing research is carried on to investigate or solve the problem, final outcomes

are available after considerable time. When outcomes are made available, situations might
have been changed thoroughly or problem for which research was made might have been
solved automatically. Decision-maker needs information in time. But, practically, it is not
possible. Sometimes, time, money, and efforts contribute nothing.
3. Cost Consideration:
To conduct marketing research systematically is a luxury. A firm needs money for research
design, data collection, data analysis, interpretation, and report preparation. Statisticians
and computer experts charge heavy fees. When research is conducted regularly, a company
has to maintain a separate well-equipped marketing research department. Marketing
research has become costlier. So, it is difficult for medium and small companies to afford.
4. Problem of Rapid Change:

Today’s market is characterized by tremendous changes. Whatever is applicable or relevant
today is out-dated tomorrow. Due to rapid changes, marketing research cannot serve the
purpose. Research results or outcomes available after the specific time period seem
irrelevant or meaningless.
5. Problem of Trust and Accuracy:

Marketing research is based on trust and accuracy. Right from the identification of problem to the
final outcomes, all depends on trust. Company has to trust on marketing research officer; research
officer has to trust on field officer; and field officer has to rely on response of.
respondents. At any stage of marketing research, accuracy is vital issue. To the extent
inaccuracy prevails, marketing research results suffer.
6. It is not Problem Solving Technique but an Aid to Solve the Problem:

It is interesting and shocking to state that marketing research does not solve any problem
directly. It is not a problem-solving technique but can assist to solve it. It is not a magic stick
to solve marketing problems; it is a source of information. To the extent source is reliable
and is used properly, it is useful. Even, an excellent research project is useless if outcomes
are not considered.
7. Subjective or Biased Result:

When human being is involved, a completely bias-free response or result is not possible.
Effect of personal value, prejudice, attitudes, needs, and other socio-cultural factors affect
the objectivity of research adversely. Subjectivity may lead to utter chaos.
8. It cannot Eliminate Risks Inherent in Decision-making:

In every economic decisions, there exists risk and uncertainly. Marketing research cannot
eliminate risk and uncertainty. It is an attempt to minimize degree of risk. So, heavy costs on
marketing research don’t guarantee safety and certainty.

Threats to Marketing Research:

 Economic Change. In difficult economic times, private spending tends to decrease across
most industries and product categories.
 Competitive Innovation
 Regulation.
 Consumer Perception.
Marketing Intelligence:
Marketing intelligence is data that is relevant to the marketing efforts of an organization.

Once collected, that data can be analyzed to accurately and efficiently guide the decision-
making process of campaigns. While marketing intelligence is used to assist a number of
different marketing goals, at a high level, it’s used to inform decisions regarding competitors,
products and consumer trends or behaviors.
Components of Marketing Intelligence
1. Competitor Analysis
Competitor Analysis involves gathering data on competitors that can be used to direct future
business strategies and understand where competitors, and thus the industry, are headed
with their products and services. This is about evaluating your own organization’s strengths
and weaknesses against your competitors to create strategies that can beat your
competition. Conducting a Strengths, Weaknesses, Opportunities, and Threat (SWOT)
Analysis is a fantastic way to see where your organization succeeds and where your
organization may need assistance and more resources.
2. Product Evaluation
Product Evaluation requires exactly that, a thorough evaluation of your organization’s
products and/or services with comparison to they stack up against similar products and
services on the market. The goal of a product evaluation is to increase the value you can
give to your user. Whether it is a product or service, evaluate the various components in the
operations process to decide the strengths and weakness of your product or service. Find
trends within the process that may or may not work and adjust those accordingly.
Forewarning you, it is tough to give yourself an objective review and communicate “needs
improvement” areas to execs. To make this more objective, gather feedback from demos,
customer conversations, review sites, surveys, polls, etc. It’s best to engage a few
departments for their perspective as well. Sales will certainly have different feedback than
product.
3. Market Analysis
Market Analysis uses data and observations in your industry to determine where your
customers are most active so you can be present in those markets. Analyzing your assets,
media, and resources will help determine where your current market focus has been.
Conducting a paid, earned, shared, and owned (PESO) media analysis can help establish
where your resources have been spent and where customers are engaging with your brand

the most. Once you have an idea of where engagement is most active, you can determine
what market your customers are spending their time and money and focus more of your
resources into those markets.
Discover what markets you may be able to expand into with your product or service and
expand into those markets.
4. Customer Understanding
Understanding your customers is imperative to the success of your Market Intelligence
research and efforts. To do this, identify the challenges your product or service helps
customers solve, the challenges your customers face while using your product or service,
and the challenges your customers face that your product could solve in the future.
Creating buyer personas is a useful tactic when trying to understand who your customers
are. Creating surveys, polls, and inviting customers to participate in reviews are also useful
tools in helping you understand who your customers are and the challenges they face.
Then you will want to determine why your customers purchase your product or service;
determining why your customers choose your product will help you find what you do better
than other competitors do and how you can continue to perform better in those areas
compared to your current competitors. During this exercise, it is best to break the feedback
into categories like highest paying customers, enterprise, strategic industries, happiest/least
happy customers, etc. You will find more strategic patterns appear to capitalize on.
Conclusion
The 4 components of Market Intelligence can help any organization determine the best
strategies to improve their ranking among a competitive market. Understanding your
customers, the market, your products, and your competition will help your organization not
only determine better strategies moving forward, but also help your organization determine
its specific needs from a market intelligence platform like Insights first.
Need for Marketing Intelligence:
Market intelligence not only helps companies to distinguish their brand from its competitors
but also helps in providing valuable information to stay in the game and excel at it.
Following are some of the benefits that market intelligence provides.
Holistic view of the market Understanding the market completely can lead a company to
success in no time. Market intelligence is gathering data in real time from the market and
further understanding the customers, trends, behaviors, etc, thus enabling a company to stay
competitive and meet market demands.
Customer retention No matter how old a customer is to a company; they are always being
monitored and attacked by the competition. Understanding when the customer is dissatisfied
and the reasons behind it can prevent loss of customers. Market intelligence can help you
analyze and give you insights into the areas of improvements that are needed by the
customers and thus help you retain them.
Improve sales process Businesses having a variety of products and a large number of
customers often face an issue, i.e. which product to target to which groups? Market
intelligence helps you to determine market segmentation, thus allowing the company to
understand which product will succeed with which group of people.
Boost process efficiency Market intelligence helps businesses to boost overall efficiency and
productivity by identifying gaps, giving actionable insights to devise crucial strategies and
provides an organization with real time data and analytics.
Gives a competitive advantage First mover advantage or the launch of a product at the
perfect time is a well heard off statement in a lot of business conversation. These are
possible only by using market intelligence. Market intelligence helps you keep a watch on
the competition, the upcoming trends, and gives a complete picture of the market, which
allows a company to penetrate the market or capture the market share by launching a
product or a new feature at the right time thus giving them a competitive advantage.
Ethics in marketing research
Market research ethics are moral principles that guide the responsibility to conduct and
analyze research without deception to ensure authenticity.
At every step of a market research effort, a market research company takes measures to
ensure both participants and clients are treated fairly and with respect.
Ethics of Participants
It is essential to understand participants’ rights when conducting market research, such as
focus groups, in-depth interviews, and surveys.
Participants are a huge part of market research, and ethical practices create a compelling
report that has credibility in the industry.
Making a Fair Trade

As a market research company, you depend on the participation and cooperation of those
willing to assist in the research.
In some ways, these participants are customers who are needed to buy in and partake in the
research. Because of this relationship, there is a responsibility of the market research
company to accommodate customers throughout the process.
Honesty is the Best Policy

Another key to demonstrating respect for participants is being as transparent as the
research will allow.Unless disclosure of the research objectives on a broad level is
prohibited, it is a good idea to inform participants of what they are contributing.
Being forthright with the participants establishes trust from the beginning and may even
motivate them to help improve the sponsoring company.
The Right to Refuse

In the case of General Data Protection Regulation (GDPR), individuals within Europe are
guaranteed data privacy protections by law.
In the context of market research, these individuals have the right to receive a copy of or
eliminate personal data that was gathered through a survey.
While no comparative legislation exists in the United States, confidence in the use of
personal data is a necessity for market research participants.
Stereotyping & Bias

When discussing ethics, it is important to consider the different types of bias in market
research These biases are often hard to identify and are either consciously or unconsciously
follow preconceived notions, tendencies, and trends.
Ethical market researchers should avoid bias as much as possible. Otherwise, the result will
not be truly beneficial for the sponsoring company.
Ethics of Big Data and Privacy

The term “big data” refers to data that is continuing to come at a higher velocity, volume,
and variety than ever before. It is also more complex than traditional data.
Pros of Using Big Data

Sources of big data are also becoming more complex. Big data is now being pulled from
mobile devices, social media, and numerous other sources.
This allows market researchers to gather a wide variety of information to gain valuable
insights.
Cons of Using Big Data

However, using big data has also raised concerns regarding individual privacy and its
implications.Currently, information is beginning to become automatic and passive
collecting.
Big data makes use of advanced technologies such as location-based technology, facial
recognition, and autonomous sensors. This means large amounts of data are being collected
independently of human action.
Conjoint Analysis:
Conjoint analysis is a popular method of product and pricing research that uncovers
consumers' preferences and uses that information to help select product features, assess
sensitivity to price, forecast market shares, and predict adoption of new products or
services.
Conjoint analysis is frequently used across different industries for all types of products, such
as consumer goods, electrical goods, life insurance plans, retirement housing, luxury goods,
and air travel. It is applicable in various instances that centre on discovering what type of
product consumers are likely to buy and what consumers value the most (and least) about a
product. As such, it is commonplace in marketing, advertising, and product management.

Businesses of all sizes can benefit from conjoint analysis, including even local grocery
stores and restaurants and its scope is not just limited to profit motives, for example,
charities can use conjoint analysis’ techniques to find out donor preferences.

UNIT – 02
Marketing Research Projects
Design and implementation of Marketing Research Projects, defining research questions,

identifying respondents, sampling accuracy and sufficiency. Issues around studying human
subjects. Lab on socially acceptable responses- managing
Design and implementation of Marketing Research Projects:
There are 6 steps in the market research process? While this process speaks directly to
marketing research professionals, the process applies to HR, customer or education surveys
as well:
1] Identify and define the problem. Before you start any web survey project, you should
identify the key issues you hope to be able to solve. This step should also include clearly
defined objectives.
2] Develop the approach. In this step, you need to establish a budget, understand
influencing factors such as the environment or economy, decide on sampling and survey
methods, and formulating hypotheses.
3] Research design. Designing a survey or questionnaire is considered the most important

step in any survey process. Question design takes a lot of thought and time. We like to say,
"If you put garbage in, you'll get garbage out." This means that if the questions are bad, the
data will be bad as well. During the survey research design, keep in mind sampling methods
and data analysis factors you intend to use.
4] Collect the data. Don't forget to test your survey before to ensure you're fielding the
correct data.Thankfully, with the help of an online survey tool, this step is relatively
painless.
5] Analyze the Data. The types of analysis you planned to perform on the collected survey
data should have been decided in earlier steps, but after collecting the data you have to
actually perform the survey analysis. Analysis can be performed using survey analysis tools
like office programs, such as Excel, or more advanced programs such as SPSS - the
complexity of the questions will determine this.
6] Report, Present, Take Action. The final step in the market research process is to present
your survey research findings and draw conclusions. While Step 3 is the most important

because it defines the outcome of your survey, if you fail to complete this last step and act on
the findings in some way, the previous steps don't matter.
Defining research questions:
There are three basic types of questions that research projects can address:
1.Descriptive. When a study is designed primarily to describe what is going on or what

exists. Public opinion polls that seek only to describe the proportion of people who hold
various opinions are primarily descriptive in nature. For instance, if we want to know what
percent of the population would vote for a Democratic or a Republican in the next
presidential election, we are simply interested in describing something.
2.Relational. When a study is designed to look at the relationships between two or more
variables. A public opinion poll that compares what proportion of males and females say
they would vote for a Democratic or a Republican candidate in the next presidential election
is essentially studying the relationship between gender and voting preference.
3.Causal. When a study is designed to determine whether one or more variables (e.g., a
program or treatment variable) causes or affects one or more outcome variables. If we did a
public opinion poll to try to determine whether a recent political advertising campaign
changed voter preferences, we would essentially be studying whether the campaign (cause)
changed the proportion of voters who would vote Democratic or Republican (effect).
The three question types can be viewed as cumulative. That is, a relational study assumes
that you can first describe (by measuring or observing) each of the variables you are trying
to relate. And, a causal study assumes that you can describe both the cause and effect
variables and that you can show that they are related to each other. Causal studies are
probably the most demanding of the three.
Identifying respondents
Why choose to identify respondents?

When a respondent accesses the survey through the email link you have sent, the survey
platform recognizes the respondent through the identifier that is found in the link the
respondent clicks on. Thus identified, the respondent can start to fill in the questionnaire,
interrupt at any moment, and restart later. All answers will be saved on the survey platform
each time the respondent connects to the survey.
If the survey does not include an identifier, there is no control over the respondent. When
respondents disconnect, they cannot go back to the survey again. Thus, the same respondent
can answer several times without restriction, which can bias your results.

How do you find respondents in quantitative research?

All you have to do is take the number of respondents you need, divide by your expected
response rate, and multiple by 100. For example, if you need 500 customers to respond to
your survey and you know the response rate is 30%, you should invite about 1,666 people to
your study (500/30*100 = 1,666).
How do you identify participants in qualitative research?

To select participants for a qualitative study, researchers use purposive or purposeful
sampling, choosing people who fit the characteristics they wish to study. Qualitative
research looks at reasons for human behavior, analyzing specific cases in more detail than a
quantitative study. To select participants for a qualitative study, researchers use purposive
or purposeful sampling, choosing people who fit the characteristics they wish to study.
Make a list
Make a list of the characteristics your participants should have. These might include age,
gender, income, religion, geographical region and marital status. For market research, your
characteristics might include buying a particular product or shopping in a particular store.
Identify and sample every person

Identify and sample every person who meets the sample criteria. This works for studies with
sample characteristics that target a very narrow group. If researching customer service in a
small business that has only 50 clients, for example, those 50 clients represent your sample.
Identify a location
Identify a location where you can personally select your sample. In some cases, this is the
obvious method. For example, if you want to know about customer loyalty to a particular
store, find your sample at the store itself. It may be a virtual location—try posting a request
on an Internet forum to find people who share a particular specialist interest.
Ask participants
Ask participants to suggest other participants who qualify. For instance, ask participants in
an online survey to forward the link to other friends who have the relevant characteristics,
such as a particular interest. This is known as network sampling.
Contact people
Contact people who can suggest participants who fit your profile. In educational research,
ask a school principal to nominate students who fulfill your criteria. In health care research,
ask a doctor to nominate patients who match your sample characteristics.
Refine your sample

Refine your sample by eliminating from the research or results any participants whom you
suspect do not meet the requirements or have been dishonest about matching the
characteristics.

Sampling accuracy and sufficiency
What do you mean by sampling?

Sampling is a process used in statistical analysis in which a predetermined number of
observations are taken from a larger population. The methodology used to sample from a
larger population depends on the type of analysis being performed, but it may include
simple random sampling or systematic sampling
What is sampling sufficiency?

The sample is considered sufficient if the parameter reaches stability or the required level of
precision within the range of sample sizes evaluated. Often the attributes do not have an
explicit numerical value, for they are reflections of the sample structure.
Curve of sampling sufficiency:
Sampling Accuracy
• Sampling accuracy is usually expressed as a relative index in percentage form (i.e.

between 0 and 100%) and indicates the closeness of a sample-based parameter estimator to
the true data population value.
• When expressed as a relative index, sampling accuracy is independent of the variability of

the data population, i.e. data population parameters of high variability can still be estimated
with good accuracy.
• When sample size increases and samples are representative, sampling accuracy also
increases. Its rate of growth, very sharp in the region of small samples, becomes slower
beyond a certain sample size.
Issues around studying human subjects:
The most salient ethical values implicated by the use of human participants in research are
beneficence (doing good), non‐maleficence (preventing or mitigating harm), fidelity and

trust within the fiduciary investigator/participant relationship, personal dignity, and

autonomy pertaining to both informed, voluntary
Ethics in human research

‘Ethical conduct’ literally means simply doing the right thing, but in reality it means more. It
involves acting in the right spirit, out of an abiding respect and concern for one's fellow
creatures.
Human research is research conducted with or about people, or their data or tissues, with the
sole intention to do well.
Human research involves significant risks and it is possible for things to go wrong. Despite
the best of intentions and care in planning and practice, sometimes things go awry. Now and
then mishaps may arise because of technical errors or an ethical insensitivity, neglect or
disregard.
On rare occasions, the practice of research has even involved deliberate and appalling
violation of human beings. Earlier, in the 1900s, there were no regulations regarding the
ethical use of human subjects in research. There were no guidelines or any code drawn out
for conduct and no Institutional Review Board (IRB). Here is a brief account of why rules
and regulations were established and the need for all established research institutes to have
an IRB became a necessity.
THE NUREMBERG CODE
A well-known chapter in the history of research with human subjects opened on December 9,
1946, when an American military tribunal opened criminal proceedings against 23 leading
German physicians and administrators for their willing participation in war crimes and
crimes against humanity. Among the charges were that German physicians conducted
medical experiments on thousands of concentration camp prisoners without their consent.
Most of the subjects of these experiments died or were permanently crippled as a result.
As a direct result of the trial, the Nuremberg Code was established in 1948, stating that ‘The
voluntary consent of the human subject is absolutely essential,’ making it clear that subjects
should give consent and that the benefits of the research must outweigh the risks.
Situation in India
As in the case of many other nations, India too has developed national guidelines for
research involving human beings. In our country the guidelines, which are often cited and
followed, are those issued by the Indian Council of Medical Research, New Delhi. The Indian
Council of Medical research brought out the ‘Policy Statement on Ethical Considerations
involved in Research on Human Subjects,’ in 1980, and revised these guidelines in 2000, as
the ‘Ethical guidelines for Biomedical Research on Human Subjects’. Since then it has been
revised and the latest version has been published in 2006.

In its general statement the document stresses on the fact that only such research should be
undertaken whose purpose would be to advance the ‘betterment of all, especially the least
advantaged’. The manner in which the research is conducted should not compromise the
dignity and well-being of the subjects, and it should avoid the historical pitfalls of unethical
research, To ensure sound scientific output ‘the research must be subjected to a strict regime
of evaluation at all stages of the proposal’
All human beings are born free and equal in dignity and rights; it is the duty of every man
related or unrelated to science to treat their fellow beings with love and respect.

EAST WEST
DEPARTMENT
OF

ANALYTICS

UNIT – 03
Unit-03
Decision Support System
Marketing Decision Support System-meaning, Use of Decision Support Systems in

Marketing Research, Data base & Data warehousing. The three Vs: Volume, Velocity &
Varity, The Fourth V: Value. Elements of data base, types of data base, using marketing
data base for marketing intelligence, ways to gather consumer data.
Marketing Decision Support System:
A marketing decision support system (sometimes abbreviated MKDSS) is a decision support

system for marketing activity. It consists of information technology, marketing data, systems
tools, and modeling capabilities that enable it to provide predicted outcomes from different
scenarios and marketing strategies.
Marketing Decision Support System-meaning

A marketing decision support system (sometimes abbreviated MKDSS) is a decision support
system for marketing activity. It consists of information technology, marketing data, systems
tools, and modelling capabilities that enable it to provide predicted outcomes from different
scenarios and marketing strategies.
Or
An interactive,Flexible computerised information system that enables managers to obtain
and manipulate the information.
It includes Sales figures,
MI data, Ads expenditures, Research results etc.
It is called as the lifeblood of marketing since is Easily accessible, Accurate, Relevant and
timely information.
Use of Decision Support Systems
DSS are used mainly used before a company invests their money into something. One of DSS's biggest
benefits is its ability to predict the outcome of different scenarios, it can help businesses to save
money by preventing failures and put them towards a better cause
Decision support systems can help businesses to save time as well. They would not have to
waste even a minute in planning and trying to create something which is not going to succeed.
Theoretically, a DSS can be employed in various knowledge domains from an organization to

forest management and the medical field. One of the main applications of a DSS in an
organization is real-time reporting. It can be very helpful for organizations that take part in
just-in-time (JIT)Just in Time (JIT) MethodThe Just in Time (JIT) style of inventory
management also sometimes referred to as the Toyota Production System (TPS) – is a
strategy of managing inventory management.

In a JIT inventory system, the organization requires real-time data of their inventory levels to
place orders “just in time” to prevent delays in production and cause a negative domino
effect. Therefore, a DSS is more tailored to the individual or organization making the decision
than a traditional system.
Data base & Data warehousing

Data base: A database is an organized collection of structured information, or data,
typically stored electronically in a computer system. A database is usually controlled by a
database management system (DBMS). The data can then be easily accessed, managed,
modified, updated, controlled, and organized.
Data warehousing; A data warehouse is a type of data management system that is designed
to enable and support business intelligence (BI) activities, especially analytics. Data
warehouses are solely intended to perform queries and analysis and often contain large
amounts of historical data.A relational database to store and manage data.
Key difference
 Database is a collection of related data that represents some elements of the real world
whereas Data warehouse is an information system that stores historical and commutative
data from single or multiple sources.
 Database is designed to record data whereas the Data warehouse is designed to analyze
data.
 Database is application-oriented-collection of data whereas Data Warehouse is the
subject-oriented collection of data.
 Database uses Online Transactional Processing (OLTP) whereas Data warehouse uses
Online Analytical Processing (OLAP).
 Database tables and joins are complicated because they are normalized whereas Data
Warehouse tables and joins are easy because they are denormalized.
 ER modeling techniques are used for designing Database whereas data modeling
techniques are used for designing Data Warehouse.
The three Vs
here are three defining properties that can help break down the term. Dubbed the three Vs;
volume, velocity, and variety, these are key to understanding how we can measure big data
and just how very different 'big data' is to old fashioned data.

Data Volume:
The size of available data has been growing at an increasing rate. This applies to companies
and to individuals. A text file is a few kilo bytes, a sound file is a few mega bytes while a full
length movie is a few giga bytes.
More sources of data are added on continuous basis. For companies, in the old days, all data
was generated internally by employees. Currently, the data is generated by employees,
partners and customers. For a group of companies, the data is also generated by machines.
For example, Hundreds of millions of smart phones send a variety of information to the
network infrastructure. This data did not exist five years ago.
More sources of data with a larger size of data combine to increase the volume of data that
has to be analyzed. This is a major issue for those looking to put that data to use instead of
letting it just disappear.
Data Velocity:
Initially, companies analyzed data using a batch process. One takes a chunk of data, submits
a job to the server and waits for delivery of the result. That scheme works when the incoming
data rate is slower than the batch processing rate and when the result is useful despite the
delay. With the new sources of data such as social and mobile applications, the batch process
breaks down. The data is now streaming into the server in real time, in a continuous fashion
and the result is only useful if the delay is very short.
Data Variety:
From excel tables and databases, data structure has changed to loose its structure and to add
hundreds of formats. Pure text, photo, audio, video, web, GPS data, sensor data, relational
data bases, documents, SMS, pdf, flash, etc etc etc. One no longer has control over the input
data format.

Elements of data base
What is Data?
Before we get into the concept of a database, we should first understand what data is. Put
simply, data are pieces of information or facts related to the object being considered. For
example, examples of data relating to an individual would be the person’s name, age, height,
weight, ethnicity, hair color, and birthdate. Data is not limited to facts themselves, as pictures,
images, and files are also considered data.
Components of a Database
The five major components of a database are:
1. Hardware
Hardware refers to the physical, electronic devices such as computers and hard disks that
offer the interface between computers and real-world systems.
1. Software
Software is a set of programs used to manage and control the database and includes the
database software, operating system, network software used to share the data with other
users, and the applications used to access the data.
3. Data
Data are raw facts and information that need to be organized and processed to make it more
meaningful. Database dictionaries are used to centralize, document, control, and coordinate
the use of data within an organization. A database is a repository of information about a
database (also called metadata).
4. Procedures
Procedures refer to the instructions used in a database management system and encompass
everything from instructions to setup and install, login and logout, manage the day-to-day
operations, take backups of data, and generate reports.
5. Database Access Language

Database Access Language is a language used to write commands to access, update, and
delete data stored in a database. Users can write commands using Database Access Language
before submitting them to the database for execution. Through utilizing the language, users
can create new databases, tables, insert data, and delete data.

Types of data base

 Centralized Database. It is the type of database that stores data at a centralized database
system.
 Distributed Database.
 Relational Database.
 NoSQL Database.
 Cloud Database.
 Object-oriented Databases.
 Hierarchical Databases.
 Network Databases.
Marketing data base for marketing intelligence:

Market intelligence is defined as the information or data that is derived by an organization
from the market it operates in or wants to operate in, to help determine market segmentation,
market penetration, market opportunity, and existing market metrics. Market intelligence is a
vital aspect to understand the state of the market, as well as helps collect competitor
intelligence which in turn aids towards becoming profitable.
For example, A company wants to understand who is the right target audience for a mobile
phone they are launching soon. A profile survey can help the company to shortlist its target
audience based on the type of mobile device they are launching. For instance, if the colors of
the phone are bold and its features are set in a manner to market it as a gaming mobile
device, a survey will shortlist participants who prefer gaming, are in a younger age group and
people who fall in a specific income range. Such information helps the company to focus its
efforts on the right people thus saving costs and efforts.
Market intelligence, however, is not the same as business intelligence. Whilst business
intelligence focuses on mostly internal factors such as billing rates, headcount, processes etc.,
market intelligence gathers data externally providing you a holistic view of the entire market
and not just your organization. However, incorporating market intelligence with business
intelligence processes will enable a company to have a holistic view of the ongoing corporate
performance in specific market conditions.
Market intelligence is closely associated with market research and can be explained in three
simple parts as follows:
Competitor Intelligence – Competitor intelligence can be explained as the collection of data

about your competitor using ethical methods such as government databases and public
records. For example, Japanese automotive companies were able to capture the US markets
and even dominate them using competitor intelligence. Understanding the need for high
quality, fuel-efficient cars led them to strategize and penetrate the US market successfully.
Product Intelligence – Product intelligence is gathering data related to competitor products

or similar products in the market. For example, A telecommunications company needs to

monitor the prices of competitive mobile phones in the same segment. A price drop in the
competitor product can mean the company is introducing a new model in the market.
Understanding such information can enable a company to strategically launch their models at
the right time and price.
Market understanding – Market understanding is knowing the market share of your company,
trends in the market, the size of the market and which is your target market. Understanding
the demand in the market, and customer wants can help a company tremendously to increase
their revenues and market share. For example, A comprehensive market research can give
valuable insights to a brand, for instance, the target market is age 20-40, upper-middle-class
family and the trend in the market is for Crossfit training to get fit and healthy. A particular
gym can use this information and provide services specific to this requirement enabling them
to penetrate the market much faster than the usual gyms.
Ways to gather consumer data.
Companies should start collecting consumer data every time they interact with a customer.
Some of these interaction sources might include:
Transaction Records
Transaction data describes an event. This data always has a numerical value, time
measurement and includes one or more persons or objects. Examples of transaction data
include invoices, payments or orders.
Transaction records also include in-store exchanges with sales staff or phone calls with a
customer representative. Companies can also collect data from online chats as well.
Surveys
Companies can also distribute customer polls to ask customers for their input and contact
information. These survey results can also be used to create customer profiles and improve
services. Customers may be more willing to pass along their contact data your way if they
know you genuinely care about making life better for them.
Contests
Contests and competitions are other legal ways to collect data on your customers. Offering
genuine incentives and prizes will encourage customers to participate. Make sure your
contests always come with a required customer detail form for them to fill out if they want to
participate.

Privacy Policy
Another helpful support to have when you collect customer data is to develop a consumer
information privacy policy. This policy will spell out all your methods for collecting electronic
customer data so that there are no misunderstandings down the road. Make this policy easily
accessible on your website and social media sites.
Your policy should outline what types of data you collect and how you’ll use it. Your privacy
policy should also specify who you will share their data with (if any third party at all.) Be sure
your policy also allows customers to elect not to receive future marketing materials from you.
Next Steps
Following these methods can help you move closer to legally collecting and protecting
customer data. If you haven't done so already, consider a privacy rights management solution
to help automate your customer data subject access requests to take one step out of the
burdensome task of data organization and fulfillment.
Using and collecting customer data may seem like a daunting task, but if you do it correctly
(and ethically) you'll be equipped with valuable knowledge to improve your products and
services. Be sure to tell customers what data you collect, what you’ll do with it and why you’re
collecting it. Companies need to stay honest with their customers in order to keep their
loyalty.
Your customers have a million options in today’s business world. Use their data wisely so you
can be their number one choice.

Module -4
Applications of Marketing Research
Applications of Marketing Research: Introduction, Consumer Market Research,

Business-to-Business Market Research, Product Research, Pricing Research, Motivational
Research, Distribution Research, Advertising Research, Media research, Sales Analysis
and Forecasting.
What is Product Research?

Product research provides information on the specific and required characteristics of a
service or a product. It helps companies to understand the needs of the customers in a much
better way so that the required product can be tailored appropriately
It studies and solves the product-related problems, such as:
i. Study of products’ qualities and performance
ii. Study of physical and psychological characteristics of product
iii. Determining uses of the existing products
iv. Comparative study of competitive products
v. Detecting consumers’ problems related to the products
vi. Determining need for developing new products
vii. Assessing success of a new product in market, including market testing
Importance of Product Research

1] Explains the features of product
2] It helps to simplify product Line
3] Helps to develop new products in the existing product line.
4] It widens market for product
5] Creates goodwill for product
6] It facilitates appropriate price fixation
7] It facilitates modification and renovation of existing products.
Pricing Research
Price is an important element of marketing mix. In developing and underdeveloped countries,
price plays a vital role. Suitable pricing policies and methods can contribute positively in
attainment of marketing goals. It is clear that price has remained a major determinant of
buying decision.
This branch covers:
i. Study on pricing objectives
ii. Study on effectiveness of pricing policies and strategies
iii. Study of various methods for setting price
v. New product and pricing policies
vi. Study on effect of discount, allowance, and seasonal variables
vii. Pricing strategies on different stages of product life cycle

Methods of pricing Research:

1] Price Sensitivity Meter
2]Concept test/Concept Evaluation
3]Conjoint Analysis
4]Brand Price Trade off
5]Monadic Scenarious
6]Descrete Choice Modelling [Choice Based Conjoint]
Advertising research
Advertising research is a systematic process of marketing research conducted to improve the efficiency
of advertising.Advertising research is a detailed study conducted to know how customers respond to a
particular ad or advertising campaign.
Objectives of Advertising Research

1] To Enhance Awareness:Through research, it is easy to plan the marketing strategy of any
product/service.
2] To Know Attitudinal Pattern: A thorough research predicts the people’s attitude. It analyses the
changing attitudinal pattern of a geographic area. Knowing the consumers’ attitude is very important
before launching a new product and its advertisement.
3] To Know People’s Action/Re-action: Research also records and analyzes people’s action or re-action
regarding a particular product/service.
4] Analysis:Based on deep research and analysis, it is simple to design and develop a creative ad, effective
enough to influence consumers.
Benefits of Advertising Research

Conducting research before launching a new product and subsequently developing an ad has the following
advantages
 Develops creative design and strategy :Once, all information is available, it is very simple to develop
an eye-catching design. It also helps in making a well-defined strategy to develop your business.
 Identifies Opportunity in the Market : Research suggests what is the right time to launch the product.
It also tells, which geographical location is the best for the product.
 Measures Your Reputation: It is always beneficial to know your competitor’s reputation and credit in
the market. It helps to develop faultless strategy.
 Identifies Major Problems :Research helps to identify the potential problems.
 Analyzes Progress :It helps to analyze the performance of your product. Likewise, you can monitor
your progress.
 Minimize the Risk : If you have done a thorough market research, there is least chance of failure.

Methods of Advertising research

1.Pre-testing/ copy testing:
Testing or analysing the effectiveness of advertising before its launch in the market. The main reason for
pre-testing is to make sure that all the required objectives are effectively achieved .
Some of the pre testing methods are:
1. Focus groups: A group of 8-10 people are made to discuss about the ad and researcher observe them to
collect the data.
2. Direct questioning: Researcher ask the questions about the ad to respondents.
3. Paired comparison test: Respondents compare each ad in a group.
4. Order-of-merit test: Respondents see two or more alternative ads arrange them in rank order.
5. Direct mail test:Two or more alternative ads are mailed to different potential customers And ask them to
list them rank wise.
Post testing
Evaluation of ad, once it has been revealed with the help of suitable media.
Types of post tests
1. Inquiry test: Effectiveness of the ad is measured based on the number of enquiries generated by the ad.
2. Attitude change test: It measures extent to which favourable opinions have been created about product,
Image and company.
3. Recognition test: Individuals are provided with copies of ad and asked to recognise them
4. Recall test: Consumers are asked to recall the message content in particular ad.
5. Sales test: Increased sales indicate high effectiveness.
Media research
Media Research is the study of the effects of the different mass media on social, psychological and
physical aspects.
Newspapers, magazines, radio, TV, Cinema or other mass media analysis and collection of information's. It
helps to understand the ways in which media can meet the needs of the audience
These methods include content analysis, surveys, focus groups, experiments, and participant observation.
Distribution Research
What is Distribution Research?

Distribution Research refers to the collection and analysis of information related to the sales of a product
or brand and its distribution through various retail channels so as to enable the management make better
decisions.
Distribution research helps gain insights into the following:
1. Better management of sales channels with enhanced knowledge
2. Better segmentation of distribution within sales channels
3. Roles played by intermediaries in the sales process
4. Understanding the centres of influence within a sales channel
5. The company’s market position within a particular sales channel

Sales Analysis and Forecasting

What is sale analysis?
A sales analysis is a detailed report that shows a business's sales performance, as well as customer data
and generated revenue. The report defines the strengths and weaknesses of products and sales teams by
referencing historical and current metrics to detect emerging trends that are most relevant to a company.
What is sales forecasting?

Sales forecasting is the process of estimating future revenue by predicting the amount of product or
services a sales unit
Consumer Research
What is meant by consumer research?
Consumer research is a part of market research in which inclination, motivation and purchase behaviour
of the targeted customers are identified. Consumer research helps businesses or organisations understand
customer psychology and create detailed purchasing behaviour profiles.
B2B marketing research

What is B2B marketing research?
B2B marketing research is the process of uncovering insights into your marketplace by surveying a
representative sample of its participants. Participants might include existing customers, former customers,
prospective buyers, lost prospects (buyers who chose to buy from another company), and influencers
Example of business to business marketing:

Business to business marketing is needed when one company's output is required for another company to
maintain or improve its operations. Some B2B marketing examples include: An industrial pump
manufacturer is attempting to market and sell their products to an oil and gas producer.
B2B companies require robust market research because it tells them who their customers are, and why
they purchase their products. It also helps them to figure out metrics such as the cost per acquisition of a
client, and it gives a clearer understanding of what the market wants in a product or service
Motivational research:
Motivational research is a type of marketing research that attempts to explain why consumers behave as
they do.Typically, these unconscious motives (or beyond-awareness reasons) are intertwined with and
complicated by conscious motives, cultural biases, economic variables, and fashion trends (broadly
defined).

There are several ways motivation research helps marketers. It allows them to understand why people may
or may not buy their product, allowing them to tailor marketing. In addition, it can help in identifying a
target audience for different products and services.
There are several ways motivation research helps marketers. It allows them to understand why people may
or may not buy their product, allowing them to tailor marketing. In addition, it can help in identifying a
target audience for different products and services.
Limitations of motivational research.

There are two reasons for it: (i) imperfection of the investigator, and (ii) imperfection of the instruments of
inspection and measurements. Approximation is the basis of rounding off the figures with a view to
simplifying them for comparison and analysis. Data got through sampling may contain some errors.

EAST WEST
DEPARTMENT
OF

ANALYTICS

UNIT – 05
Predictive analysis
Meaning of predictive analysis, how good are models at predictive behavior, benefits of
predictive models and applications of predictive analysis, reaping the benefits, avoiding
the pitfalls, importance of predictive model, process of predictive analytics. Predictive
Analytics, Data Mining and Big Data_ Myths, Misconceptions and Methods by Steven
Finlay.
Meaning of predictive analysis

Predictive analytics is the use of data, statistical algorithms and machine learning
techniques to identify the likelihood of future outcomes based on historical data. The goal
is to go beyond knowing what has happened to providing a best assessment of what will
happen in the future.
Process of predictive analytics
Time series algorithms rely on time to make predictions. This method is used for non-
stationary data data that changes over time, such as stock prices and weather.
For a time series analysis to be meaningful, data should be collected at regular, equally
spaced intervals. Given the appropriate models, we will be able to see the underlying
structures within the data that contributed to the outcome, and we will be better equipped to
predict future outcomes.

In business, time series is often used for budgeting and sales forecasts, using past sales
performance of products to predict the sales for the following month or year. It’s also used
for inventory analysis and process and quality control.
Benefits of Predictive Analytics.

 Gain a competitive advantage
 Find new revenue opportunities
 Improve fraud detection
 Optimize processes and performance
 Increase asset utilization
 Improve production capacity and quality
 Improve collaboration and control
 Reduce risks
Application/Scope of Predictive Analytics
1] Predicting buying behavior

One of the biggest uses of predictive analytics is predicting buying behavior in the retail industry.
Companies use the tools to learn all about their customers. Companies use advanced analytics to identify
buying habits based on previous purchase history.
2] Fraud detection
As cybersecurity becomes a growing concern, predictive analytics examples are plenty. The most important
one is fraud detection. These models can identify anomalies in the system and detect unusual behavior to
determine threats.
For example, experts can feed historical data of cyberattacks and threats to the system. When the predictive
analytics algorithm identifies something similar, it will send a notification to the respective personnel. It
will limit the entry of hackers and vulnerabilities that might put the system at risk.
3] Healthcare diagnosis
The healthcare industry is benefitting the most from the predictive analysis module. Health data is critical
to understand the history and current illness of any patient. Predictive analytics models help in
understanding the disease by providing an accurate diagnosis based on past data.
4] Equipment maintenance
Predictive analytics models are significant for manufacturing, healthcare, and other businesses that require
scheduled equipment maintenance. An accidental equipment breakdown can risk human lives and lead to
major losses for the company as well.
5] Content recommendation
One of the most relatable and visible predictive analytics examples is content recommendation. Through
algorithms and models, entertainment companies can predict what users want to watch based on their
history.
6] Virtual assistants
Combined with the power of deep learning, predictive analytics works wonders when utilized with virtual
assistants. Siri, Ok Google, and Alexa are real-world use cases of predictive analytics projects. These
virtual assistants learn from the user’s behavior and then deliver accurate results.

Pitfalls to Avoid during Predictive Analysis
 Making incorrect assumptions on the underlying training data.

 Working with low volumes.
 The over-fitting chestnut.
 Bias in the training data.
 Including test data in the training data.
 Not being creative with the provided data.
 Expecting machines to understand business.
Meaning of Data Mining

In simple words, data mining is defined as a process used to extract usable data from a larger set of any
raw data. It implies analysing data patterns in large batches of data using one or more software. Data
mining has applications in multiple fields, like science and research.
Data mining is the process of uncovering patterns and finding anomalies and relationships in large datasets
that can be used to make predictions about future trends. The main purpose of data mining is to extract
valuable information from available data
Myths of Data mining
Myth 1: Data mining is an extremely complicated process and difficult to understand.

Algorithms behind data mining may be complex, but with the right tools, data mining can be easy to use and
can change the way you run your business. Data mining tools allow you to easily see and understand your
data with simple to understand graphs, queries, and visualizations gives you insight as to how your business
is performing. You can then identify problems and potential issues and make analytics-based decisions to
improve upon your inefficiencies
Myth 2: Data mining is another trend that will soon die out, allowing us to return to standard business
practice.
Quantitative practices have been employed by businesses for quite some time. Data mining is just a more
developed practice that has come about since the beginning of the 20th century. Data is everywhere and the
size of some databases are tremendous, making it extremely difficult for discovery to be done manually.
With the easy-to-use functionality, cost and time reduction benefits, and the ability to conduct an analysis of
your company’s performance within a quick to deploy, and easy to understand solution makes it hard to
believe that something so advantageous and beneficial will ever fade away. If anything, data mining will be
an everlasting and growing tool that will help us for years to come
Myth 3: Data mining techniques are so advanced that they can replace domain knowledge.
Expertise and experience of the business and its markets cannot be replaced by data mining techniques.
Knowledge about the new analytical methods that arise is important but, without knowledge of the business
and its markets, there is of no use to these methods. Therefore, it is critical to have an understanding of both
Myth 4: Only big databases are worth mining.

Although data mining is more commonly used for analyzing big data sets, it can be used for any size. Just
about any amount of data can produce valuable information that can be used for businesses to detect issues
and potential issues. Even these sample size datasets allow for businesses to find inefficiencies in which they
can proactively or plan to improve upon. It may be more beneficial to pull certain data from a large data

warehouse to conduct an analysis versus the entire database itself. You just need to know which data you
want to analyze to produce valuable outcomes and conclusions.
Myth 5: Data mining is useful only in certain industries.

Although data mining may be most commonly used within highly data-focused and innovation-driven
industries, it is a tool that can be used in any industry. There will always be an instance in which data
mining might not be worth the return on investment. But just like how the size of the database does not
matter, neither does the industry. There is value that can come from any type of data you analyze.
Conclusion:
Data mining is not too expensive or too complicated to work for your business. Most importantly the people
are out there to help; the skills and knowledge might already exist within your organization, but do you
have a data hero on your team? While analysis and visualization tools become ever more user-friendly,
more people are now able to gain insights from data mining. You no longer need to be a PhD in computer
science to gain value from the data you’re collecting. It’s time we throw away the “but this is how we’ve
always done it” and start mining data to provide real value back to our businesses.
5 Myths and Misconceptions About Predictive Analytics:

 You need a Ph. D. to build predictive models.
 Predictive models take too long to build.
 Predictive models don't reveal anything new.
 Predictive models are a “black box” and can't be validated.
 Predictive models replace human judgment
Big Data myths
Big Data predicts the future.

Big Data can indeed provide you with a load of numbers to interpret about the future. However, these
numbers will be based on the past and their interpretation will very much depend on the questions that were
originally asked and the selection of data that was used. Big Data is therefore not 100% accurate as (thus
far) there is human involvement in the process, and, as we all know, we all make miscalculations at the best
of times.
Big Data is better data.

Actually, the bigger the data, the bigger the potential oversights. If you do not have a precise understanding
of which data sets you need to analyse, you won’t know where to start, and it may actually be better to
examine the issue on a smaller scale. You don’t need a data lake to understand why sales of umbrellas are
spiking in the rain, but no data lake will ever help you to understand this unless you tell it that it is raining
and what the consequences are. If data misses assumptions or contains errors, you are in trouble. You need
an intelligent model to sift through the data and work out what is genuinely useful. Quantity does not
always equal quality.
We’ve missed the Big Data boat.

Too many companies assume that as everyone is talking about Big Data, everyone is taking advantage of
Big Data. Gartner produced a survey last year to show that only 13% of large companies n the survey had
actually deployed any Big Data solutions. Many more are planning investments in the area (I can testify to
that), but you will be far from late to the party. The party is just getting started. Start small, prove the
concept with an easy early win and start to build your Big Data team.

Big Data is for big business.

It is true to say that many of our clients are global blue-chips, but I predict that with improvements in
technology and cloud computing, SMEs will very soon also be on the Big data trail. Outsourcing Big Data
requirements is becoming very popular, and the rise of the “portfolio career” means that there are
increasingly more Big Data professionals out there to work with on a more ad-hoc basis. It needn’t be
prohibitively expensive or unwieldy to dip your toes into the market to understand the value. We’re also
working with an increasing amount of fast growing Start-ups and SMEs – testament to the growth in this
area.
The data is too messy.

Let’s face it, a lot of enterprise data is in a bit of a state. Companies haven’t needed to put it to work at this
scale previously, but there are a whole raft of tools to help clean it up. Master data management and data
governance software is capturing and cleaning the required information so that only the useful stuff stays in
the frame. With analysis and visualization tools becoming ever more user-friendly, more people than ever
before are able to gain insights from the Big Data process. There is lots of bad data out there, but there are
many ways to combat it.
Methods of Predictive Analysis

 Analytical techniques
 Decision Tree analysis
 Regression
 Correlation
 Networking
 Logistic regression.
 Time series models.

UNIT – 06
Product Research
Product Research- Analysis of Diffusion of products, Adoption decisions, Product-services

tradeoffs, evaluating prototypes, Luxury and Lifestyle products.
What is a product research in business?

The process of deciding which new products might be successful, and the best way to develop
and sell them.As a new product is developed, product research helps us identify aspects that
matter to customers, such as the price and design.
Product Diffusion?
The diffusion process describes the spread of a new product or innovation through a social
group.It refers to the market development process of new product.
New Product Diffusion Curve

Consumers can be grouped according to how quickly they adopt a new product. On the one
extreme, some consumers adopt the product as soon as it becomes available. On the other
extreme, some consumers are among the last to purchase a new product. As a whole, the new
product adoption process can be modelled in the form of a bell-shaped diffusion curve similar
to the following:
Innovators - well-informed risk-takers who are willing to try an unproven product. Innovators
represent the first 2.5% to adopt the product.
Early adopters - based on the positive response of innovators, early adopters then begin to
purchase the product. Early adopters tend to be educated opinion leaders and represent about
13.5% of consumers.
Early majority - careful consumers who tend to avoid risk, the early majority adopts the
product once it has been proven by the early adopters. They rely on recommendations from
others who have experience with the product. The early majority represents 34% of
consumers.

Late majority - somewhat sceptical consumers who acquire a product only after it has become
commonplace. The late majority represents about 34% of consumers.
Laggards - those who avoid change and may not adopt a new product until traditional
alternatives no longer are available. Laggards represent about 16% of consumers.
Product Adoption
What is the product adoption process?

Product adoption describes the process of users becoming aware of a product,
understanding its value, and beginning to use it. The process is usually broken down into
four discrete stages: awareness, interest, evaluation and conversion
Product adoption sounds like a vague concept, but it's actually a very specific stage of the
sales and marketing process. Roughly, that process can be summarised in 5 stages:
Awareness. A lead knows your product exists.
Interest. The lead goes in search of more information.
Evaluation. The lead mentally trials your product and weighs it against the alternatives.
Trial. The lead uses your product for a short amount of time or in a limited capacity.
Adoption or rejection. The user faces a decision of whether or not to make a mental or
financial investment.
Adoption isn't a guaranteed outcome of your sales and marketing processes, no matter how
optimal they are. Look at it as just one branch of the last stage of the funne
Product-Services tradeoffs
What are examples of tradeoffs?

In economics, a trade-off is defined as an "opportunity cost." For example, you might take a
day off work to go to a concert, gaining the opportunity of seeing your favourite band, while
losing a day's wages as the cost for that opportunity.

What are product tradeoffs?

Every time we make a decision we are making a trade-off. Every time we make a trade-off we
are consciously compromising on something. Every product decision you make has a trade-
off: you achieve something at the cost of something else and you have to choose your
priorities carefully.
Evaluating product prototypes
What are product prototypes?

A prototype is a replica of a product which is used as an early model to test your product
and get feedback from stakeholders before they can invest in your idea. That being said,
prototyping is an exhausting and time-consuming process in product design. It's also an
important phase that shouldn't be overlooked.
What is Evaluating product prototype?

Testing a prototype / developed design is a very important part of the design and
manufacturing process. Testing and evaluation, simply confirms that the product will work as
it is supposed to, or if it needs refinement. In general, testing a prototype allows the designer
and client to assess the viability of a design.
How to Test a Product Prototype
1.The Usability Factor. Getting strangers to try out your product prototype and allowing a
third-party to record their experiences is a great idea.
2.Have Testers Complete Various Tasks With the Prototype.
3.Allow The Prototype Testers to Offer Suggestions.
Luxury & Lifestyle products
Luxury Product:
A luxury item is a good or service that is considered elite in a particular society. Luxury items
can be goods like designer handbags or watches, or services like a chauffeur or golf club
membership. Consumers tend to purchase more luxury items as their wealth increases.
Example:
A high-end automobile, such as a sports car,A yacht,Wine,Homes and estates.
What is a luxury lifestyle?

Living a luxury lifestyle encompasses ultimate comfort, a stress-free lifestyle, and genuine
happiness. Take note that living luxuriously entails that you have enough money to support
such a lifestyle.

Marketing Research & Analytics (Unit 1-6)

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EAST WEST

MARKETING RESEARCH &

Subject Code: 20MBAMM304

Meaning of Marketing research; when marketing research is unnecessary; Nature and

Meaning of marketing research:

Nature of marketing research

Systematic process: Marketing Research is a systematic process to identify and to solve

Continuous in Nature:Marketing research is continuous in nature. As long as the firm exists,

Prof. Dilip Kumar H G, Assistant Professor, East West Institute of Technology,Bangalore 2

Applied Research: Marketing Research is conducted to solve specific problems of

Marketing mix decisions: Marketing Research provides necessary information to arrive at

Scope of marketing research:

The scope of marketing research covers following areas:

It studies and solves the product-related problems, such as:

Prof. Dilip Kumar H G, Assistant Professor, East West Institute of Technology,Bangalore 3

vi. Determining need for developing new products

This branch includes:

3. Research on Sales Methods and Policies:

Various aspects covered under this head may be listed as below:

Under this area, at least following aspects are covered:

Prof. Dilip Kumar H G, Assistant Professor, East West Institute of Technology,Bangalore 4

iv. Advertising role in different stages of product life cycle

This branch covers:

This area includes:

7. Research on Business Environment and Corporate Responsibility:

Prof. Dilip Kumar H G, Assistant Professor, East West Institute of Technology,Bangalore 5

v. Impacts of legal provisions and Acts.

Marketing Research in 21st Century.

Prof. Dilip Kumar H G, Assistant Professor, East West Institute of Technology,Bangalore 6

Marketing philosophy employed by any given company has to be mix of organization

In production philosophy, companies focus is on numbers, high production count, which

Another trend observed in companies is, encouragement to entrepreneur style of work

Limitations of marketing research

1. Effect of Extraneous Factors:

2. Time Gap Makes Research Irrelevant:

Prof. Dilip Kumar H G, Assistant Professor, East West Institute of Technology,Bangalore 7

4. Problem of Rapid Change:

5. Problem of Trust and Accuracy:

6. It is not Problem Solving Technique but an Aid to Solve the Problem:

7. Subjective or Biased Result:

8. It cannot Eliminate Risks Inherent in Decision-making:

Prof. Dilip Kumar H G, Assistant Professor, East West Institute of Technology,Bangalore 8

Threats to Marketing Research:

Marketing intelligence is data that is relevant to the marketing efforts of an organization.

Components of Marketing Intelligence

Prof. Dilip Kumar H G, Assistant Professor, East West Institute of Technology,Bangalore 9

Need for Marketing Intelligence:

Ethics in marketing research

Making a Fair Trade

Honesty is the Best Policy

The Right to Refuse

Stereotyping & Bias

Ethics of Big Data and Privacy

Pros of Using Big Data

Cons of Using Big Data

Prof. Dilip Kumar H G, Assistant Professor, East West Institute of Technology,Bangalore 12

Prof. Dilip Kumar H G, Assistant Professor, East West Institute of Technology,Bangalore 13

Design and implementation of Marketing Research Projects, defining research questions,

Design and implementation of Marketing Research Projects:

3] Research design. Designing a survey or questionnaire is considered the most important

Prof. Dilip Kumar H G, Assistant Professor, East West Institute of Technology,Bangalore 14

Defining research questions:

1.Descriptive. When a study is designed primarily to describe what is going on or what