This action might not be possible to undo. Are you sure you want to continue?
INTRODUCTON:Marketing decisions are a combination of judgement and factual information. Therefore marketing decision should be based on facts. Marketing research helps in the gathering the useful information. Today’s executive has a difficult task in marketing appraisal and decisions. Decision based on true facts is less likely to be wasteful. Marketing Research, by supplying the relevant facts, can aid considerably executives to raise the level of their performance. It can thus discharge an advisory function by highlighting the necessary facts on which the executive may base his decision. Through a reliance on facts soundly interpreted, the executive can lean less on hunch or intuition for his decisions.
MEANING AND DEFINITION:The terms “Market research” or “Market Analysis” and “market research” are often used loosely as having the same meaning. Actually Marketing Research is a term of wider significance as it includes all research activities in the field of marketing including “market analysis”. Richard D. Crisp explains it as: Marketing research is the systematic, objective, and exhaustive search for the study of the facts relevant to, any problem in the field of marketing. The American marketing association defined “marketing research” as the systematic gathering, recording and analyzing of data about problems relating to the marketing of goods and services.” Cox arid Good defined “Marketing information system is a set of procedures and methods for regular and planned collection, analysis and presentation of information in marketing decisions.”
OBJECTIVES OF MARKETING RESEARCH:1. To know the demographics and psychographics of customers:Marketing research tries to reveal the number of persons who buy, why they buy, when they buy, the frequency of their buying, and the sources of their buying. It also includes the social status and the regional location of the customers. 2. To find out the impact of promotional efforts:A marketing research facilitates appraising and improving the methods of sales promotion. It also leads to measure the effectiveness of advertising, pricing policies and channels of distribution. 3. To know customer response to a new product:This is also known as product testing. Marketing research is frequently used to know the opinion of the customers about the, satisfaction given by a new product. This helps in knowing the desired improvements in quality, design, size, packing, distribution method, etc. 4. To forecast sales:Marketing research helps in sales forecasting and market planning. The researchers make sales forecast on the basis of the response from the customers and the distribution media. 5. To anticipate competitive moves:It helps the marketer to continuously monitor the competitor and judge about the right actions that might be required. For example, the war between P&G and HLL for their detergents included going to the court, apart from bringing new product by improvements, getting stamp of approval from Vimal and Videocon respectively.
The company launched advertising campaign whereby it offered to replace all the capsules. and that poisoning happened outside their factory.6. The company regained its market share and image. Jonson & Jonson probed into the poisoning of their capsules and found that the customer felt very bad about the company. This was possible because marketing research found the right media and message. To probe ‘what went wrong’:This happens when the product is having some special problems for example. it owned its responsibility for any injury caused to the customers. Which could change customer attitude in favour of Johnson & Johnson? .
. i. Planning and deciding on data collection techniques and tools. those opportunities which are viable to be exploited by management. Writing out the report and presenting it to the decision makers IMPORTANCE OF MARKETING RESEARCH:1) USES/IMPORTANCE TO BUSINESS AND INDUSTRY:i. Deciding on the source of data. Working out research design. Thus.marketing research is used as a control technique of marketing management to find out the weakness and shortcomings of the ii.PROCESS OF MARKETING RESEARCH:Effective marketing research involve the following steps involve in this steps. Defining the problem. Decision-making Tools:. higher production function and an increasing marketing complex. iv. 6. 4. 5.marketing research is used for management planning. 2. Problem solving:. With advanced technology. iii. marketing management can assess the resources that will be useful for the business. 7. Control technique:. and evolving the alternatives in every area of marketing management.e. Analyzing data. Defining research objectives. Management planning:. It deals with marketing opportunities. 3. market research has become an indispensable tool for taking appropriate decisions.starting from problem identification to formulation of alternatives solution. The various stages in this process are: 1.Marketing research is useful for taking marketing management decision it provides necessary information and data in analyzed and processed forms for making marketing decisions. Is the problem solving action of marketing research.
marketing operation decide production functions. The study of buyer behaviour. the total purchasing power of a country or geographical are can be assessed by the disposable income of the place. management decisions to reorient the planning and performance techniques Large scale production:. Marketing strategies:.v. The purchasing power of a consumer depends upon his disposable personal income. The resources of production and market potentials are properly assessed by marketing research Complex market:. Pattern of consumption:. attitudes and capacity to purchase is very important in marketing research. vii.the advancement of science and technology and the standard of living of consumers necessitate closer touch with the growing markets. viii. Suitable market operation:. Thus.marketing management has to lay down appropriate marketing strategies to meet competition to pursue growth in market and to attain organizational onjectives.The pattern of consumption is to be assessed by the marketing management. ix. The size and specialization with in the business unit and the intervention of numerous middlemen between the manufacturers and customers created a wide communication gap. vi.marketing research helps large scale production by providing suitable decisions to be undertaken by the producer to exploit the existing production resources to meet the growing markets. . and marketing operations can be better decided by the findings of marketing research.
PROBLEM DEFINITION RESEARCH OBJECTIVES RESEARCH DESIGN SOURSE OF DATA DATA COLLECTION DATA ANALYSIS PRIMARY SECONDARY AND ADVANCED REPORT AND PRESENTATION .
this objective should be specific. it is useless to hope for good results. For it is essential that the source of information’s be widely examined or tested. their should be unbiased and reliable. proper conclusions are not drawn out of the research. In the distribution example above. by collecting data on the number of outlets exclusively keeping the company’s or its competitors products and outlets keeping both company and competitor’s products. This statement is called objectives. it is also essential that whatever data be gathered. the next logical step is to state what the researcher wants to achieve. before understanding the study of any problem. due to the drawbacks of the sources of information. Many a times.DEFINING THE PROBLEM:Under the marketing research. it becomes necessary that a clear-cut definition of the problem be known. STATEMENT OF RESEARCH OBJECTIVES:Once the problem is defined. attainable and measurable. Without the definition of the problem. To be meaningful and help focus the researcher’s attention. Unless we decide the subject of our research. . the researcher laid down the objectives are follows:(a) To determine the market penetration of the company and its competitors in metros and other urban cities. no strong and proper plan could be drawn up of the marketing research. For a good result of the researches.
In the case of services. namely: (a) Exploratory (b) Descriptive (c) Causative (a) Exploratory Research:Exploratory research is conducted when the researcher does not know how and why a certain phenomenon occurs. warranty. The purpose of these objectives is to act as a guide to the researcher and help him in maintaining a focus all through the research.(b) To determine the ratio of brands sales to industry sales (extraction) that the company got from different retail outlets selling its own and its competitors brands and. RESEARCH DESIGN:The third stage in the marketing research process is deciding on the research design. There are three types of research designs. replacement policy. To understand this phenomenon. there are no tangibles. these are measurable and attainable and they are specific. (c) To assess the motivation level of channel members and evolve and incentive plan for enhancing it. Also. All these three objectives emanate from the problem definition. how does the customer evaluate the quality of a bank or a hotel or an airline? While in the case of a manufactured product. etc. for example. quality is the assessed on the basis of tangible features. several researchers have conducted .
they used focus groups. Since the prime goal of an exploratory research to known the unknown. Or in other words. the influence of income and lifestyle on purchase decision. unlike exploratory or descriptive. a research done on how customers evaluate the quality of competing service institution can be considered as an example of descriptive research. it is important that the researcher understand the phenomena thoroughly. descriptive research is carried out only when the researcher understand the phenomena or behavioural characteristics. Hypothesis is a statement of predicted outcomes of the research. (c) Causative research:Causative research is done to establish a cause and effect relationship. likewise. Zeithaml.focus group discussion to identify these quality parameters. hypotheses are tested. research done on media habits and T. Parsuraman and Berry identified variables which they clubbed under five groups. viewing habits is an illustration of descriptive research. for example. a firm may like to test the effect of a 10% raise in its product’s prices. for example. Here the researcher may like to see the effect of rising income and changing lifestyle on consumption of select products. choice of technology is a function of the customer’s income and lifestyle. interviewing key customer groups. Continuing the above example of service quality. or a body of research that exists on the subject matter.V. For example. Expert and even search for printed or published information are some common techniques. Focus groups. this research is unstructured. . a study to understand buyer behaviour and describe characteristics of the target market is a descriptive research. He/she may test the hypothesis that as income increases are likely to be bought. Generally. In a causative research. (b) Descriptive research:Descriptive research is carried out to describe a phenomenon or market characteristic. In building up a hypothesis. Likewise. In doing so.
dispatch records. These are important to the researcher as they provide an insight to the problem. and often a researcher bias also creeps in. customers etc. etc. traders and suppliers often are the major sources. They are often reliable data sources and help in overcoming limitation of secondary data. However. news items. Often the preliminary investigation is restricted to secondary data.SOURCES OF DATA:Once the research design has been decided upon. etc. there are two sources of data or informationSecondary and Primary. not with standing these . industry or trade statistics. It may be understood here that often this data includes information on competition. both in terms of money and time. This also includes internal documents like invoices. Often this includes printed or published reports. the next stage is that of selecting the essentially. sales reports. The problem in primary data is its cost. (b) Primary data:Primary sources refer to data collected directly from the market placecustomers. payment history of customers. (a) Secondary data:This refers to information that has been collected earlier by someone else.
DATA COLLECTION:The researcher is now ready to take a plunge. Other example fresh data can be gathered by observing the relevant actors and settings. This exploratory research might yield some useful hypothesis about how travellers choose air carriers. The American airline researchers might meander around airports. primary sources are important and more than 90% of marketing research involves one or the other part of this primary data search. airline offices.limitations. Also it involves observing how a customer behaves in the shopping area. and travel agencies to hear how travellers talk about the different carriers. Closed video monitoring is a very common technique being used today by major dealer shows shops and other retail outlets. But still he or she needs to be clear about the: Procedure of data collectionPrimary Data can be collected through any or combination of the following techniques. The researchers can fly on American and competitors planes to observe the quality of in-flight service. . (1) Observational research: This technique involves observing what a customer is buying and doing in the store. how he or she dresses up and what do the customer say when he or she sees the product.
sales persons. many companies are now conducting on-line focus groups. Focus group research is a useful exploratory step. The meeting is typically held in pleasent surroundings and refreshments are served. sales promotion ideas and even pricing and distribution strategies with the target customers group. or other marketing entity.(2) Focus group research: A focus group is gathering of six to ten people who are invited to spend a few hours with a skilled moderator to discuss a product. Also customer and trade survey are very common. (3) Experimentation: this is a technique that involves experimenting new product ideas. These tools are: . hospitals and public service organizations are discovering their value. dealers and experts. law firms. advertising copies and campaigns. telephone surveys. Participants are normally paid a small sum for attending. because the sample size is too small and the sample is not drawn randomly. personal contacts. However. and skilled in group dynamics. (4) Survey research: The most common procedure is the survey. researcher must avoid generalizing the reported feelings of the focus group participants to the whole market. service. These methods are postal surveys. The moderator needs to be objective. With the development of the World Wide Web. Tools of data collection The researcher has to decide on the appropriate tools for data collection. Consumer goods companies have been using focus groups for many years. knowledgeable on the issue. organization. In conducting these surveys. the researcher has to carefully select the instruments and methods of surveying. Here the researcher carries out opinion polls involving customers. and an increasing number of newspapers.
(1) Questionnaires : A questionnaire consists of a set of questions presented to respondents for their answers. or a group of people unlike a questionnaire the responses are unstructured. the respondent is generally guarded and gives response? More from the conscious part of his or her psyche. the questionnaire is by for the most common instrument used to collect primary data. unlike a questionnaire. The purpose of this schedule to study indepth an object. In most direct questioning. using the questionnaire or an interview schedule. or researching the psychological dimension of consumer behaviour. Open-end questions often reveal more because they do not constrain respondent’s answers. or factors that will lead to success of a few technology like e-mail and voice-mail or new products that a firm may consider introducing. The form of the question asked can influence the response. and debugged before they are administered on a large scale. Open-end questions are especially useful in exploratory research. (2) Interview Schedule: At times a questionnaire is not able to give an insight into the rationale of a customer’s feeling. wording. Marketing researcher distinguish between closed-end and open-end question. It is for these and several similar reasons that an interview schedule is developed. (3) Association tests – Recently. the researcher’s focus has been on the qualitative research. Questionnaire need to be carefully developed. and sequence. tested. Closed-end questions provide answer that is easier to interpret and tabulate. To get to. In preparing a questionnaire. Because of its flexibility. where the researcher is looking for insight into how people think rather than in measuring how many people think a certain way. an event. Closed-end questions prespecify all the possible answers. the professional marketing researcher carefully chooses the questions and their form. the .
sample size. State here the problem. tools for data collection. REPORTS AND PRESENTATION:The last stage is that of writing out a report and making a presentation to the decision-maker. The execution summary can direct the leader’s attention to specify issues and recommendations. most senior managers have little time for going through the entire report in depth. . called the executive summary. the structure of a good report is somewhat like the following: i. Introduction to the problem. Averages and measures of dispersion are computed for the major variables. It is important that the report has a summary. ii. Present here all the major findings. This summary should generally not exceed a thousand words. giving a bird’s eye view of the research and major recommendation. Depending on his or her interest. the environmental context. source of data. Generally. This is because.sub-conscious part. The researcher tabulates the data and develops frequency distribution. and data analysis tools. DATA ANALYSIS:The next-to-last step in the marketing research process is to extract findings from the collected data. The researcher will also apply some advanced statistical techniques and decision models in the hope of discovering additional findings. sentence completion tests and thematic appreciation tests (TAT). Marketing research findings or survey findings. These tests are believed to reveal the customer’s perception of a product or brand or firm image also these tests can give information on customer’s perception of brand personality as also the personality and life style of target customer group. objectives. The report should be structured and pages chronologically numbered. the decision-maker goes in to the details of those issues by turning to the relevant sections in the report. marketing researchers are using several psychological instruments like association tests. stratification and sampling procedure adopted.
Remember humanizing data can often make an interesting presentation and keep an audience tuned into the marketing researcher. SCOPE OF MARKETING RESEARCH:Marketing research covers different aspect of marketing of goods.Product research is associated with the conversion of customer needs into tangible product offer. There are many areas of marketing management where marketing research has special branches.This research type includes investigation into the customer buying behaviour the economic. But these experiences should relevant and support the research findings. services and ideas. The result was marketing failure of the product because the actual pond’s toothpaste was with pink floral package which consumer perceived to resemble taking of talcum powder into their mouths. Then. For example.iii. (1) Product research. the targeting was changed to include the child as influencer of mother’s . Interpretation of research findings. when Rasna concentrate was launched. personal. and psychological influences. etc. narrate experiences that he or she may have heard or had while collecting the data. But sales did riot pick-up. branding and labelling decision are also included here. (2) Customer Research. This includes development and testing of new products. improving the existing products. For this it is important that he prepare his slides or transparencies of only major findings and he hold interest of decision makers. Pond’s tested its Pnnds Toothpaste. but it did not launch the toothpaste with the same package as used in the concept test and test marketing. it was targeted at the mothers. Packaging design. iv. cultural. Often the decision maker may want the researcher to present the findings. and a tab on the changing customer preferences. Policy implication. tastes. habits. social. For example.
there was less promotional support and therefore people were. when Volform sauce was launched by voltas. pepsi asian cup. However.) launched its cellular phone service in Delhi through staging a play before select audience. The sales graph picked-up and today it ruling the category. when Volform reached distribution channels. All these are possible after conducting extensive research to ensure success of the particular campaign. sales force motivation and compensation. (4) Promotion Research. etc. Poor sales research resulted into marketing failure of he product. the retailers had not been provided with the product by that time. (3) Sales Research. the trend is towards offering freebies. unwilling to move to the retail outlets thanking that the product would not be available. etc. efficiently and timely. etc. Later on.) or launched through events (Bharti telecom. most of the products are advertising through sponsorship (Videocon independent cup. chutki baja ke (fevikwik).decisions to prepare Rasna for him. Product research . exchanges. Today. etc. The purpose is to reach the target customer more effectively. For example.Promotion research encompasses all efforts by the marketers to communicate the company’s offer. this time. This includes advertising. channels. Microsoft-launched Window 95 by carrying out spectacular events in 53 countries around the world). territories.Sales research involves decisions concerning selection of store location. publicity. it was heavily advertised and people were tempted to reach outlets. Philips top 10. sales promotion. interest-low consumer finance. public relations. On sales promotion.
(3) Helpful in facing the Competition – In the present era. how and where has the product to be disposed off. the producers are required to face the competition in the market against so many competitors. If there is the need of effecting changes in the sales policy.PRAMOTION RESEARCH MARKETING RESARCH CUSTOMER RESEARCH SALES RESEARCH SCOPE OF MARKETIG RESEARCH ADVANTAGES OF MARKETING RESEARCH:The following are some of the main merits or advantages of the market research: (1) New products – The market potentialities of the new products are available as also of the new markets for the same. the market research proves helpful in presenting the new products into the market. it is also known. it is determined as to how much is the target of the sales. what has to be done in this regard. etc. (2) Appraisal of research of the sales policy – Within the sales policy. In this way. By the market research knowledge could be gathered with regard to the . The sales manager could evaluate the result of his sales policy through the market research.
the cost could be reduced and the consumers would be able to get the products on cheaper prices which might ultimately lead to an advancement in the standard of the living of the consumers. necessary steps may be taken up. fashion. necessary changes could be effected in the quality and kind of the product. After gelling the knowledge regarding the reaction of the consumers. (7) Reducing the Risk – If any producer. etc. the knowledge could be procured with regard to the reaction of the consumers about the particular product. help is available in successfully facing the competition. price.methods of the working of these competitors. due to the enhancement in the demand and production. (6) Discovery of the New market of the Product – By the market research. etc. design. packing. . information is available regarding the new markets and customers of the product. in view of their desires of likings. or plans the production of the item. In these new markets. forecast could be made regarding the demand of the consumers by which much help could be possible in formulating the plans regarding the production and sales. manufactures the products keeping in view the taste and temperament. its weight. with the help of market research. By market research. (5) Knowledge of consumer’s Reactions – By the market research. (4) Production and sates Planning – By the market research. for promoting the sales of the product. Of the consumers. (8) Increase In the Standard of Living – By the market research. there doesn’t remain any risk with regard to the sale of the product.
The effectiveness of marketing research depends largely on the types of data or information collected. . Small firms cannot afford marketing research. the results of the marketing research are not cent percent accurate. Thus.Marketing research involve huge expenditure of money. The individuals may not always give adequate and accurate data.Marketing research is mainly a study of the behaviour of human beings. (3) Unpredictable Human Behaviour:. (2) Bias in collecting data:. efforts and time on the collection and analysis of data.LIMITATIONS OF MARKETING RESEARCH Marketing research may suffer from the following limitations:(1) Huge expenditure:. The subjectivity of the investigators may have adverse effect on the effectiveness of the marketing research.
(4) Requires Intelligent Handling:.Marketing research may lead the executive to wrong results because of carelessness of the research staff. It requires competent and experienced executive or managers to use the result of marketing research. (5) Supplementary. It is a means to decision-making. etc. If the investigators are not competent to collect right type of data and analyze it accurately. pricing. (6) Requires Competent Researcher:. packaging. . Not Substitute: Marketing research is not a substitute for executive judgement. business conditions might change making the market research a futile exercise.Marketing research is not an end in itself. promotion. (7) No Time Gap Allowed Between Research and its Implementation:There is generally a time lag between marketing research and the implementation of its findings. place. there will be no utility of marketing research. It only provides relevant information with the help of which executives can take decisions regarding product. During this period.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue reading from where you left off, or restart the preview.