Marketing Research Introduction

Marketing Research

MEANING • Marketing – spotting the needs of customers – meeting them in the best possible manner through appropriate production and distribution activities – buying and selling activities – Exchange/transfer of ownership

• Research – detailed/systematic/comprehensive study of a problem – “studious enquiry" – “thorough, honest and impartial study conducted by trained men using scientific methods“ – modern marketing management – accurate decision making TOOL in marketing of goods and services

• SOUL of modern marketing management used by manufacturers/exporters/distributors and service organizations • Decisions on each element of the marketing mix-product, price, distribution and promotion-need marketing research support. • MR facilitates accurate marketing decisions – for consumer satisfaction on the one hand – sales promotion on the other hand

DEFINITIONS •

AMA has defined marketing research as "the systematic gathering, recording and analyzing of data about problems relating to the marketing of goods and services”

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According to Richard D. Crisp: "Marketing research is the systematic, objective and exhaustive search for and study of the facts relevant to any problem in the field of marketing."

• According to Philip Kotler: "Marketing research is systematic problem analysis, model building and fact-finding for the purpose of improved decision-making and control in the marketing of goods and services.“ • Luck, Wales and Taylor have defined marketing research as "the application of scientific method to the solution of marketing problems"

• Green and Tull have defined marketing research as "the systematic and objective search for and analysis of information relevant to the identification and solution of any problem in the field of marketing." • The British Institute of Management defined marketing research as/ "The objective gathering, recording and analyzing of all facts about problems relating to the transfer and sales of goods and services from producer to consumer."

FEATURES • Marketing research is concerned with systematic gathering, recording and analyzing of information: • In MR, information is to be collected objectively and accurately: • Marketing research is a tool for solving marketing problems:

CHARACTERISTICS •

Systematic and continuous process

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Wide/comprehensive in scope and application – Introduction of new products – identification of potential markets – selection of appropriate selling techniques – study of market competition and consumer preferences – introduction of suitable advertising strategy and sales promotion measures, – It plays a role in all the three phases of the management process in marketing • planning, implementation and evaluation

• Emphasizes on accurate data collection and critical analysis • Offers benefits to sponsoring company and consumers • Commercial equivalent of military intelligence • Tool for managerial decisions

CHARACTERISTICS… • Applied type of research • Reduces the gap between the producers and consumers • Not an exact science • Use of different methods: • Dynamic character • Closely connected with marketing information system • Phenomenal growth

OBJECTIVES •

To study the needs, wants and expectations of consumers.

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To find out reactions of consumers to the products of the company.

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To evaluate company's sales promotion measures for suitable adjustment and improvement.

• To study current marketing problems and opportunities for suitable follow-up actions. • To suggest the introduction of new products, modifications of existing products and to discover new uses of existing products. • To design and test appropriate packages of company's products and make packaging as attractive as possible

• To study existing pricing, channels of distribution and market competition for suitable changes, if necessary. • To find out methods for making the products of the company popular and raising its goodwill and market reputation. • To assess competitive strength and policies. • To estimate potential buying-power in various areas

• To know the company's expected share of the market. • To determine the dimensions of the marketing problems, facilitate evaluation of the alternative solutions of different problems and help in the selection of a right course of action. • To define the probable market for a specialized product and to report on general market conditions and tendencies, buying habits, etc

MARKET RESEARCH V/S MARKETING RESEARCH: DIMENSION

MARKET RESEARCH

MARKETING RESEARCH

Meaning

Market research directly relates to market situation i.e. size, location, market competition and features of customers. It provides details about the market for decisionmaking and policy framing

Marketing research is a systematic and comprehensive search/study of different aspects of marketing including the current marketing problems and challenges for decisionmaking & policy framing

MARKET RESEARCH V/S MARKETING RESEARCH: DIMENSION

MARKET RESEARCH

MARKETING RESEARCH

Nature

branch of marketing research.

one of the branches of MIS

Scope

scope is limited/restricted to the study of market or market situation

scope is comprehensive & wide as it covers all aspects of marketing.

Type of term

Market research is a narrow term as it relates to one aspect of marketing

Marketing research is a wide/broad term as it covers all aspects of marketing

Objective

to deal with the problems and challenges relating to different aspects of market such as competition, market demand and consumer needs

to study varied types of marketing problems such as product line, marketing mix, advertising, packaging, branding and so on.

GROWING IMPORTANCE • • • • • •

due to large-scale production, producers could not have direct contact with the consumers . the shifting from sellers’ market to buyers' market introduction of computers has contributed to the growth of marketing research activity. rapid changes in the business environment, shift to consumer-oriented philosophy in business the scope of marketing has widened due to population growth and development of rural markets Relevance of MR under Globalization

ADVANTAGES/IMPORTANCE •

Indicates current market trends:

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Pinpoints deficiencies in marketing policies:

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Explains customer resistance:

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Suggests sales promotion techniques:

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Offers guidance to marketing executives:

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Facilitates selection and training of sales force:

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Promotes business activities: Facilitates appraisal of marketing policies:

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Suggests new marketing opportunities:

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Facilitates inventory study:.

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Provides marketing information:.

• Suggests appropriate distribution channels: • Provides information on product acceptance:. • Creates progressive outlook: • Has wider social significance:

SCOPE •

Product Research: .

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Packaging Research:

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Pricing Research:

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Market Research:

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Sales Research:

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Promotion and Distribution Research:

• Consumer Research: • Policy Research: • Advertising Research: • Media Research: • Motivational Research: • International Marketing Research:

APPLICATIONS • TRADITIOMAL APPLICATIONS

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NEW-PRODUCT RESEARCH

• DISTRIBUTION RESEARCH • PROMOTION RESEARCH

CONTEMPORARY APPLICATIONS OF MARKETING RESEARCH • Competitive Advantage. • Brand Equity. – – – – –

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Brand loyalty Name awareness Perceived quality Brand association Other proprietary brand assets: patents, trademarks, channel relationships etc.

Customer satisfaction. Total quality management

• EMERGING APPLICATIONS – Database marketing – Relationship marketing

The Marketing Research Process: 11 Steps

• Step One: • • • •

Step Two: Step Three: Step Four: Step Five:

• Step Six:

Establishing the Need for Marketing Research Defining the Problem Establishing Research Objectives Determining Research Design Identifying Information Types and Sources Determining Methods of Accessing Data

The Marketing Research Process: 11 Steps cont…

• • • • •

Step Seven: Step Eight: Step Nine: Step Ten: Step Eleven:

Designing Data Collection Forms Determining Sample Plan and Size Collecting Data Analyzing Data Preparing and Presenting the Final Research Report

The Marketing Research Process Step One: Establish the Need for Marketing Research

• Marketing Research is not needed when the: • required information is already available • decisions need to be made now • organization can’t afford the research • costs outweigh the value of the research

The Marketing Research Process Step Two: Define the Problem

• The most important step in the marketing research process is defining the problem. (Ch. 4)

The Marketing Research Process Step Three: Establish Research Objectives

• What information is needed in order to solve the problem?

The Marketing Research Process Step Four: Determine Research Design

• Exploratory Research: collecting information in an unstructured and informal manner • Descriptive Research: refers to a set of methods and procedures describing marketing variables • Causal Research (experiments and other approaches): allows isolation of causes and effects

The Marketing Research Process Step Five: Identify Information Types and Sources

• Secondary Data: information that has been collected for some purpose other than the research at hand • Primary Data: information that has been gathered specifically for the research objectives at hand

The Marketing Research Process Step Six: Determine Methods of Accessing Data

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Secondary Data: accessing data through sources such as the Internet and library Primary Data: collecting data from participants through methods such as telephone, mail, online, and face-to-face (quantitative), and observation studies and focus groups (qualitative)

The Marketing Research Process Step Seven: Design Data Collection Forms

• The design of the data collection form that is used to ask or observe and record information in marketing research projects is critical to the success of the project. • It is easy to write a set of questions but very difficult to construct a questionnaire. • General types of “instruments” (forms) • Questionnaires • Observation Study forms (protocols)

The Marketing Research Process Step Eight: Determine Sample Plan and Size

• Sample plan: refers to the process used to select units from the population to be included in the sample • Sample size: refers to determining how many elements (units) of the population should be included in the sample

The Marketing Research Process Step Nine: Collect Data

• Sound data collection is very important because, regardless of the data analysis methods used, data analysis cannot “fix” bad data. 12 Nonsampling errors may occur during data collection. These are related to poor design and/or execution of the data gathering. • Sampling errors may occur based purely on chance

The Marketing Research Process Step Ten: Analyze Data

• Data analysis: involves entering data into computer files, inspecting data for errors (data cleaning), running tabulations (frequencies), and conducting various statistical tests

The Marketing Research Process Step Eleven: Prepare and Present the Final Research Report

• Findings are presented, often by research objective, in a clear and concise way. • The need for a good report cannot be overstated. It is the report, and/or its presentation, that properly communicates the results to the client.