] MARKETING einai RESEARCH Marketing research iy systematic data collection, analysis, presentation and drawing conclusions to serve specific objectives in any of the marketing areas. This type of continuous feedback from the markets on customers, distributors, competitors and environmental conditions provides the management daia on marketing opportunities and effectiveness for decision making. The market data could be collected from primary sources, through postal questionnaires, telephone interviews and personal discussions and such secondary sources like company's own sales data, published literature etc. There are also available specialised techniques of marketing research like retail shop audit, resi marketing, readership surveys eic. The time and cost factors determine the mode of operation to be used for market research. Marketing research is an important tool 10 know one's markets" well to serve them better. It helps the marketing executives in designing marketing strategies ‘and decision making. CASE 7.1 DMS INDUSTRIES LTD. Setting up of market research cell. “In 1975, our share of the market was 30%. Today, after twenty years, even though our turnover has almost quadrumpled, our market share has come down to around 12%. Something, somewhere has gone wrong with our planning that has resulted in this slippage. The time has come when we must change our product oriented approach tomarket-oriented approach. And this calls for detailed and regular study ofthe various markets we are catering for, "Said Mr. D. M. Saha, President of DMS Industries La DMS Industries Ltd. was started in 1948 at Calcutta to manufacture various types of pumps. Mr. Saha, a inechanical engineer from Kharagpur is a Pro, fea industrialist. Starting with simple agricultural pumps, he increased his range ‘oinclude sophisticated pumps required for fertiliser, Petro-chemical. refinery and other rock : industries. In 1975, he obtained technical know how from a Teputed American a ony that gave him a lead over the competitors. Since 1980, he is exporting his an Middle East, Africa and some of the far-eastern countries, Table 1 gives a in his sales and exports as against total value of production of pumps in the Se eeeorganised sector Pump Industry in India ‘The pump industry in India is a litle over fifty years old. There are now 55 manufacturers of pumps which are registered with Director General of Technical Development. Besides the above, there are estimated to be over 400 units in small scale. Together. the industry makes pumps in different designs. materials of construc- tion and for varied applications. The industry as a whole has maintained a uniform growth and could be considered as self-sufficient Imports In spite of the well developed indigenous pump industry, there are steady imports of different types of pumps and their components. On an average, the imports are to the tune of Rs, 25 crores per annum. The reasons could be lack of technical know- how, uneconomical order size or non-availability of special materials of construction. Because of inadequate data on imports, the industry could not take up a systematic programme for import subsititution. Exports A good level in the exports has been achieved by the pump industry. More than 20 manufacturers are regularly exporting their products to different parts of the world. ‘The exports have increased from Rs. 2 crores in 1975 to Rs, 30 crores in 1975. However, the exports are mostly to what are termed as under-developed countries. ‘A break through is yet to be made towards exports to developed countries which hold vast potential. To give an example, USA alone imports pumps and parts to the tune of 200 million dollars per annum and India's share is only 0.2%. Again, the main hitch is lack of market data and poor planning, Marketing Mix The marketing mix of DMS Industries Ltd. could be described as follows : Product Mix : Pumps of different designe like horizontally split casing, mixed flow, back pullout, end suction etc. in different sizes, manufactured to different Indian and foreign specifications, in different materials of construction as per the require- ments of specific industries. Price Mix : For all standard pumps in basic designs, cost plus 40% mark up. For custom made pumps, a different criterion is applied. Place Mix : A dealer network of around 120 all over the country offers ex-stock deliveries‘and after-sales services.for all standerd products. The dealers also solicit business for the company. The dealers’ commission varies from 10% to 20% dependin; on the volume of business ‘handled; ‘territory covered etc. 8Promotion Mix ¢ The company prow as its products by advertising in news- papers, technical journals. hoardings e! bnical and sales literature is also'used. Good quality t Need for Market Research Mr. Saha refully commented that they had employed the services of professional market reserch agencies in the past but the results were fur from satisfactory. There were erroneous findings, the research organisation could not give the technical input desired and further it cost them a lot. At the same time, as the demand for different types of pumps is growing, so also is competition. To cater to the national market, setting up of good distribution set-up and communication system too is essential. The technology is progressing at a fast rate. The customer requirements are becoming specific. Thus, in order to remain in business, market feedback has become a must, Table I : Performance of DMS Industries Ltd. (Rs. Millions) Year Sales Total production Exports form organised sector 1993-94 410 3500 32 1994-95 440 2800 35 1995-96 500 4458 38 1996-97 540 4500 40