Marketing Research Power Point

MARKETING RESEARCH • • • • • • •

Definition Objective Marketing and Market Research Need scope Advantages Limitations Process

Marketing Research-Definition •Marketing research is the intelligence service of a business enterprise. •Definition by AMA •“the gathering, recording and analyzing of all data about problems relating to the transfer and sale of goods and services from producer to consumer.”

Objective-Marketing Research –

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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. To find out the impact of promotional efforts. To know customer response to a new product. To probe ‘what went wrong’.

Marketing Research and Market Research

•Market research is the gathering, recording and analyzing of market data to identify the present and potential customers and their motives and buying habits. It is the discovery of the capacity of the market to absorb the products of a firm. • It is a part of the marketing research. It is worthwhile to quote Richard D.Crips to identify clearly the scope of Marketing research and market research. •“Marketing research is the systematic, objective and exhaustive search for the study of the facts relevant to any problem in the field of marketing.

Need Market research may be conducted for the following reasons:3. 4. 5. 6. 7.

To identify the present and potential customers and their needs. To forecast the demand of a product. To determine customers preferences with regard to packaging, design, size, price and other features of a product. To locate the demand for products with regard to time and place, such as festival demand. To explore new markets for existing products.

SCOPE OF MARKETING RESEARCH Product Research Customer Research Sales Research Promotion Research

Advantages Forecasting. Assessing Product Acceptance Rightful Promotion. Understanding New Markets. Overall Business Direction. Assessment of Middlemen

Limitations of Marketing Research • • • • • • •

Huge Expenditure. Bias in Collecting Data. Unpredictable Human Behaviors. Requires Intelligent Handling. Supplementary, Not Substitute. Requires Competent Researcher No time Gap Allowed Between Research and its Implementation.

THE MARKETING RESEARCH PROCESS • •

3. 4. 5. 6.

Define the Problem Developing the Research Plan Data sources (Primary/Secondary) Questionnaire

Personal Interview Telephone Survey Salesmen Dealers Consumers Observation Sources of Secondary Data(Press, Publications of tradeAssociations,Govt, RBI, Financial institutions, foreign governments etc) Sampling Plan Data Collection Data Analysis Marketing Research Report

DEFINE THE PROBLEM • The starting point calls for the Marketing Manager and marketing researcher to define the problem carefully and agree on the research objectives. The problem should be defined and written down with full clarity. A problem well defined is half solved

DEVELOPING THE RESEARCH PLAN • The Marketing Manager needs to know the cost of research plan before approving it. Designing research plan calls for decisions on the data sources, research approaches, research instruments, sampling plans and contact methods. •

Data sources • In order to conduct marketing research, the marketing research department may collect information from various sources which may be either primary or secondary.

PRIMARY DATA • The primary source of data refers to the first hand original data collected by the investigators through observation, experimentation, and field survey. The information may be collected directly from the customers, dealers and salesmen. • Researchers usually start their investigation by examining secondary data to see whether their problem can be partly or wholly solved without collecting costly primary data.

Sources of primary data • Questionnaire• • • •

Surveys with the help of a questionnaire can be conducted in the following ways (1) Personal Interview (2) Through mail (3) Telephone.

• Other methods• • • •

(4) Salesmen (5) Dealers (6) consumers (7) Observation

SECONDARY DATA • The secondary data include facts and figures which are already collected by other individuals and institutions. The sources of secondary data include publications of Government, private institutions like Trade Associations and Chambers of Commerce, international institutions like the International Monetary Found and the World Bank, and data collected by other research agencies, etc.

Sources of Secondary Data - Press – Publications of Trade Associations – Government Publications. – Publications of Reserve Bank of India and Financial Institutions – Publications of private individuals, companies and research institutes – Foreign Government and International Agencies

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Sampling Plan • After deciding on the research approach and instruments, the marketing researcher must design a sampling plan • Sampling unit-who is to be surveyed • Sample size-How many people to be surveyed • Sampling procedure-how should the respondents be chosen

3 - Data Collection •

• Data collected from market/customer/sample surveys are submitted to experts for analysis •

4 - Data Analysis •

The data analysis process involves the use of appropriate statistical techniques in order to know the meaning of the collected data

5 - Marketing Research Report • The last step in the marketing research process is the presentation of a marketing research report. • The contents of the report might include the title, table of contents, synopsis, introduction, methodology, major findings, limitations, conclusions, recommendations, and suggestion. • The marketing research report should be easy to follow, generate interest in reading, have visual graphics, and use non-technical language.

• The marketing researcher should not expect full implementation of the research report while it was being prepared. Changed circumstances, delays, and management perception might require minor adjustments. On the whole, the marketing research should be able to satisfy the requirements of the marketing management.