MARKET RESEARCH

DIFFERENCES BETWEEN
PRODUCT ORIENTED AND MARKET ORIENTED BUSINESSES.
PRODUCT ORIENTED BUSINESS WILL SIMPLY CONCENTRATE ON THE PRODUCT
PRODUCED AND ITS QUALITY BASED ON THE BELIEF THAT IF THE PRODUCT IS
GOOD AND THE PRICE MATCHES THE VALUE, IT WILL BE SOLD IN THE MARKET.
THESE PRODUCTS USUALLY COME UNDER THE CATEGORY OF BASIC NECESSITIES.
THESE BUSINESSES USUALLY DO NOT BELIEVE IN AGGRESSIVE MARKETING
STRATEGIES INSTEAD THEY ALWAYS ENSURE THAT THE QUALITY OF THE PRODUCT
IS MAINTAINED SO THAT THE CUSTOMERS WILL STICK ON TO THIS PRODUCT ONCE
THEY USE IT AND THEY WILL SPREAD THE GOOD WORD RESULTING IN SLOW BUT
STEADY GROWTH IN MARKET SHARE AND PROFIT.
MARKET ORIENTED BUSINESSES WILL FIRST IDENTIFY THE WANTS OF THE
CUSTOMERS THROUGH MARKET RESEARCH AND A SUITABLE PRODUCT WILL BE
MADE TO MATCH THESE WANTS OF THE MARKET, SO THAT IT WILL BE EASILY
ACCEPTED BY THE CUSTOMERS. BUSINESSES WILL THEN RESORT TO VARIOUS
MARKETING STRATEGIES LIKE ADVERTISEMENTS, PROMOTIONS, ETC. TO CAPTURE
AND MAINTAIN THE MARKET SHARE. THESE PRODUCTS USUALLY COME UNDER
THE CATEGORY OF NON-ESSENTIAL GOODS.
 HOW IS MARKET RESEARCH HELPFUL FOR A
BUSINESS?
MARKET RESEARCH WILL HELP THE BUSINESS TO IDENTIFY THE
NEEDS AND WANTS OF THE CUSTOMERS BEFORE A PRODUCT IS
PRODUCED.
IT WILL ALSO HELPS TO IDENTIFY THE STRENGTH AND WEAKNESS
OF THE COMPETITIORS SO THAT THE BUSINESS CAN IDENTIFY
THEIR THREATS AND OPPORTUNITIES.
MARKET RESEARCH WILL GIVE AN INSIGHT INTO THE MARKET
REALITIES AS FAR AS THE PRODUCT ACCEPTABILITY, QUALITY,
PRICE, MARKET SHARE, CHANGE IN TASTE & EXPECTATION OF
THE CUSTOMERS, ETC.
THESE VALUABLE INFORMATION WILL BE HELPFUL FOR THE
BUSINESS TO FORMULATE NEW MARKETING STRATEGIES AND
ESTABLISH THEMSELVES IN THE MARKET.
 QUALITATIVE & QUANTITATIVE DATA
A MARKET RESEARCH COULD EITHER USE QUALITATIVE
OR QUANTITATIVE DATA FOR RESEARCH PURPOSE. THIS
DEPENDS ON VARIOUS FACTORS LIKE THE OBJECTIVE OF
THE RESEARCH, THE TYPE OF QUESTIONS USED IN THE
QUESTIONNAIRE – OPEN ENDED OR CLOSED ENDED, THE
TYPE OF RESEARCH DONE AND DATA COLLECTED, ETC.

THERE ARE TWO TYPES OF RESEARCH - PRIMARY OR

SECONDARY IF THE DATA USED IS FROM A PRIMARY
SOURCE WE CALL IT AS PRIMARY RESEARCH AND IF THE
DATA IS USED FROM SECONDARY SOURCE WE WILL CALL
IT AS SECONDARY RESEARCH.
 PRIMARY RESEARCH
THIS IS DONE BY COLLECTING FIRST HAND DATA FROM THE PUBLIC BY USING
QUESTIONNAIRES, CONDUCTING INTERVIEWS, BY COLLECTING DATA FROM A FOCUS
GROUP OR THROUGH OVERT OR COVERT OBSERVATION. PRIMARY RESEARCH IS ALSO
KNOWN AS FIELD SURVEY OR FIELD RESEARCH.
THE DATA COLLECTED BY PRIMARY RESEARCH IS CALLED PRIMARY DATA.
QUESTIONNAIRE / INTERVIEW:- IF OPEN ENDED QUESTIONS ARE GIVEN IN A
QUESTIONNAIRE OR USED IN AN INTERVIEW, THE DATA COLLECTED WILL BE QUALITATIVE
IN NATURE. QUALITATIVE DATA IS VERY DIFFICULT TO COLLATE (COLLECT & COMBINE)
AND ASSIMILATE (TAKE IN INFORMATION & IDEAS TO ANALYZE AND UNDERSTAND IT
FULLY).
ON THE OTHER HAND IF CLOSED ENDED QUESTIONS ARE GIVEN IN A QUESTIONNAIRE OR
USED IN AN INTERVIEW, THE DATA COLLECTED WILL BE QUANTITATIVE IN NATURE.
QUANTITATIVE DATA IS EASY TO COLLATE AND ASSIMILATE.
SAMPLING TECHNIQUE:- IN ORDER TO DO A PRIMARY RESEARCH A SAMPLE IS SELECTED
BASED ON CERTAIN CRITERIA LIKE AGE, GENDER, GEOGRAPHICAL LOCATION, RELIGION,
ETC. WHICH IS CALLED QUOTA SAMPLING OR SOMETIMES IT IS DONE AT RANDOM. A
RANDOM SAMPLING COULD BE DONE BY A COMPUTER USING DATA FROM A CENSUS
RECORD OR TELEPHONE DIRECTORY BY PICKING UP EVERY 100TH PERSON 0R 50TH PERSON.
 PRIMARY RESEARCH
PRIMARY RESEARCH CAN ALSO BE DONE BY COLLECTING PRIMARY DATA FROM A
FOCUS GROUP. THE FOCUS GROUP IS MADE BASED ON CONSENT FROM A GROUP
OF PEOPLE WHO WILLINGLY AGREE TO SHARE THEIR OPINIONS AND BELIEVES
OVER A PERIOD OF TIME. THIS HELPS THE RESEARCHER IN LONG TERM PROJECTS
TO KNOW THE CHANGES IN OPINIONS AND IDEAS OF PEOPLE AS TIME PASSES.
EVEN THOUGH IT IS A TIME CONSUMING AND EXPENSIVE PROCESS IT HELPS THE
RESEARCHERS TO KNOW THE CHANGES IN TREND AND TASTE OF THE CONSUMERS
FROM TIME TO TIME.
ANOTHER METHOD OF COLLECTING PRIMARY DATA FOR RESEARCH WILL BY
OBSERVING A GROUP OF PEOPLE WITH OR WITHOUT THEIR KNOWLEDGE.
IF THE OBSERVATION IS DONE WITH THE CONSENT OF THE GROUP MEMBERS WE
WILL CALL IT AS OVERT OBSERVATION AND IT IS THE MOST ETHICAL METHOD OF
OBSERVATION AS THERE IS NO SCOPE FOR DECEPTION. BUT IN THIS TYPE OF
OBSERVATION THERE IS VERY HIGH CHANCE OF MANIPUALTION IN BEHAVIOR AS
THE GROUP MEMBERS ARE AWARE OF THEM BEING OBSERVED. THIS MIGHT
DEFEAT THE WHOLE PURPOSE OF THE STUDY.
IF THE OBSERVATION IS DONE WITHOUT THE KNOWLEDGE OF THE GROUP
MEMBERS WE CALL IT AS COVERT OBSERVATION. EVEN THOUGH IT IS UNETHICAL
THE DATA COLLECTED WILL BE GENUINE AND IT WILL NOT BE BIASED IN ANY WAY.
 SECONDARY RESEARCH
THIS TYPE OF RESEARCH IS OTHER WISE KNOWN AS DESK
RESEARCH. THIS IS DONE WITH THE HELP OF SECONDARY DATA.
HENCE IT IS AN INEXPENSIVE AND LESS TIME CONSUMING
PROCESS.
SECONDARY DATA CAN BE COLLECTED FROM INTERNAL SOURCES
WHEN IT COMES TO MARKET RESEARCH FOR A PARTICULAR
BUSINESS. E.G. DATA FROM SALES DEPARTMENT LIKE PRICING
DATA, CUSTOMER RECORDS, SALES REPORTS, DATA FROM
FINANCE DEPARTMENT, CUSTOMER SERVICE DEPARTMENT, ETC.
SECONDARY DATA COLLECTED FROM EXTERNAL SOURCES ARE
COLLECTED BY SOME AGENCIES, FOR SOME OTHER PURPOSE AT
SOME POINT OF TIME. E.G. CENSUS REGISTER, TELEPHONE
DIRECTORY, FINANCIAL DATA OF COMPANIES, NEWS PAPER,
MAGAZINES, DIARIES, HISTORICAL DATA, INTERNET, ETC.
 Quick reference flow chart on market research
MARKET RESEARCH
FIX THE SCOPE OF STUDY (OBJECTIVE)

FIX THE BUDGET FOR RESEARCH

PREPARE QUESTIONNAIRE
Open ended questionnaires - (Qualitative data) OR Closed ended questionnaires – ( Quantitative data)

PILOT STUDY
Check the effectiveness of the questionnaire in collecting the required data and make necessary changes if required.

DECIDE WHETHER TO GO FOR PRIMARY RESEARCH OR SECONDARY RESEARCH

PRIMARY RESEARCH SECONDARY RESEARCH

FIX THE SAMPLE AND SAMPLE SIZE

(Random sampling or quota sampling) COLLECT SECONDARY DATA FROM THE -
if the research is a long term project – FOCUS GROUP IDENTIFIED SECONDARY SOURCE.
Yet another method of collecting primary data is through (Internal or External source )
Overt and covert observation.)

CARRYOUT THE RESEARCH USING THE QUESTIONNAIRE

COLLECT RAW DATA (Primary data - qualitative or quantitative)

INTERPRET THE DATA AND MAKE IT MEANINGFUL BEFORE PRESENTING IT AS A REPORT

 ACCURACY OF MARKET RESEARCH DATA
THE ACCURACY OF THE DATA USED FOR MARKET RESEARCH IS VERY IMPORTANT BECAUSE
BUSINESSES RELY ON THESE FINDINGS OF THE MARKET RESEARCH IN ORDER TO FORMULATE
VARIOUS STRATEGIES. SO IF THE DATA USED IN INACCURATE THE DECISIONS AND STRATEGIES
MADE ALSO WILL NOT FETCH THE DESIRED RESULTS.
THE RELIABILITY OR ACCURACY OF THE DATA MAINLY DEPENDS ON THE FOLLOWING FACTORS:-
• HOW CAREFUL THE DATA WAS COLLECTED FROM THE SAMPLE.
• WHETHER THE CONSTRUCTION OF QUESTIONS IN THE QUESTIONNAIRE WAS INTIMIDATING
OR NOT. IF YES THE ANSWERS MAY NOT BE HONEST AND CORRECT.
• THE SIZE OF THE SAMPLE SHOULD BE BIG ENOUGH FOR THE FINDINGS TO BE
REPRESENTATIVE IN NATURE.
• WELL PHRASED QUESTIONS SHOULD BE GIVEN SO AS TO AVOID CONFUSION AND
MISINTERPRETATION.
• WHAT TYPE OF RESEARCH IS DONE MATTERS BECAUSE IF THE RESEARCH IS DONE BASED ON
SECONDARY DATA THE FINDINGS MAY NOT BE THAT ACCURATE AS THE DATA USED MAY BE
OUT DATED OR INACCURATE DUE TO VARIOUS REASONS.
• BIAS CAN BE OF TWO TYPES RESEARCHER BIAS AND DATA BIAS. DATA BIAS HAPPENS WHEN
SECONDARY DATA IS USED BECAUSE THAT DATA MAY HAVE BEEN COLLECTED FOR A TOTALLY
DIFFERENT PURPOSE AT A TOTALLY DIFFERENT TIME WHICH MAY NOT BE RELEVANT FOR THIS
PURPOSE.
• AGE OF THE INFORMATION IS ANOTHER IMPORTANT FACTOR AS THE STATISTICAL DATA
MIGHT LOSE THEIR RELEVANCE AS TIME PASSES.
 DESIGNING & USING A QUESTIONNAIRE
WHILE DESIGNING A QUESTIONNAIRE ONE SHOULD ASK THE FOLLOWING QUESTIONS.
• OBJECTIVE OF THE RESEARCH – WHAT DO I WANT TO FIND OUT.
• THE TARGET GROUP – THE CHARACTERISTICS OF THE SAMPLE OR FOCUS GROUP.
• WHERE WILL I CARRYOUT MY QUESTIONNAIRE – IN THE MALL, ON STREETS, GOING TO HOUSES,
BY POST, ETC. EACH OF THESE HAS GOT ITS OWN ADVANTAGES AND DISADVANTAGES.
HOW TO WRITE THE QUESTIONS:-
• FIRST AND FOREMOST WE HAVE TO LIMIT THE NUMBER OF QUESTIONS BECAUSE THE
RESPONDENT WILL NOT BE INTERESTED IN ANSWERING LONG QUESTIONNAIRES. SO A DOZEN
QUESTIONS OR LESS WILL BE IDEAL.
• AS FAR AS POSSIBLE GIVE SHORT AND CLEAR, CLOSED ENDED QUESTIONS WITH ANSWERS LIKE
YES/NO.
• IF THE AGE & INCOME OF THE INTERVIEWEE IS AN IMPORTANT FACTOR IN YOUR RESEARCH THEN
TRY TO GIVE DIFFERENT RANGES FOR THEM TO CHOOSE RATHER THAN ASKING FOR SPECIFIC
NUMBER. E.G. AGE 21 – 25 , INCOME 250,000 – 400,000 PER ANNUM, ETC.
• AVOID DIRECT AND INTIMIDATING QUESTIONS AS WELL AS OPEN ENDED ONES.
• THERE SHOULD BE A LOGICAL ORDER FOR ARRANGING THE QUESTIONS.
CARRYING OUT THE QUESTIONNAIRE:-
• BE CLEAR ABOUT YOUR SAMPLE SIZE AND SAMPLING METHOD – RANDOM OR OUOTA
SAMPLING
• FIX A SUITABLE TIME TO CONDUCT THE INTERVIEW SO THAT INTERVIEWEES WILL BE FREE
ENOUGH TO GIVE PROPER RESPONSE.
PRESENTING THE DATA FOR MARKET RESEARCH
THE INFORMATION COLLECTED FROM MARKET
RESEARCH IS CALLED THE RAW DATA. THIS RAW DATA
HAS TO BE COLLATED AND ASSIMILATED.
(COLLATED MEANS COLLECT & COMBINE, TEXT, INFORMATION OR FIGURES IN PROPER
ORDER SO THAT IT MAKES SENSE)
(ASSIMILATED MEANS TAKING INFORMATION FULLY AND UNDERSTAND IT)

THE COLLATION OF DATA IS DONE IN MANY WAYS

• THE TALLY CHART - //// = 5 ; //// /// = 8
(THE TALLY CHART WILL MAKE IT EASY TO COMPILE THE NUMERICAL DATA IF IT IS A
LARGE NUMBER)

• BAR CHART –
• PIE CHART –
• THE GRAPH -
 MARKET RESEARCH FINDINGS
BASED ON THE DATA COLLECTED EITHER THROUGH
PRIMARY OR SECONDARY METHOD, AN ANALYSIS IS
DONE AND THE RESEARCHER WILL COME TO
CERTAIN CONCLUSSIONS. BASED ON THESE
CONCLUSSIONS APPROPRIATE SUGGESTIONS WILL
BE PRESENTED AS A PROJECT REPORT AND
SUBMITTED TO THE COMPANY.
THE COMPANY IN TURN WILL ACT UPON THESE
SUGGESTIONS WHICH WILL HELP THEM TO ACHIEVE
THE DESIRED OBJECTIVES.
 How to carryout a primary market research?
• Design a suitable questionnaire.
• Set a budget to carryout the research.
• Do the pilot study.
• Make necessary modifications in the questionnaire if found
necessary after the pilot study.
• Select the sample and the sample size
• Decide how, where and when to carryout the research.
• Carryout the research using the questionnaire.
• Compile and analyze the raw data collected.
• Present the data using tally chart or bar chart or Pie chart, or
line graph, etc.
• Produce a report that can be easily understood by any one.