MR MOD 1
MR MOD 1
Marketing Research
Definition of Research
Research always starts with a question to which we seek an answer using scientific methods.
We define the question as a ―Problem‖.
Research is often described as an active, diligent, and systematic process of inquiry aimed at
discovering, interpreting and revising facts.
The word research is derived from the French language; its literal meaning is 'to investigate
thoroughly'.
Undertaking research is basically applying scientific methods to find solution to a problem. It
is a systematic and explorative study carried out to analyse and apply various solutions to a
defined problem.
The aim of marketing management is to satisfy the needs of the consumer. Marketing
research helps in achieving this. Marketing research is a systematic and logical way of
assessing ways of satisfying customer needs.
According to all the above definitions, Marketing Research starts by stating the problem or
the issue to be investigated; indicate what kind of information is required to resolve the
problem; identify where and how to get it; specify the methodology for analyzing the
research findings; sum up the research findings and then suggest the best solution for
marketing decision making.
The aims of the marketing research and analysis may be stated as follows:
(3) To evaluate company‘s sales promotion measures for suitable adjustment and
improvement.
(4) To study current marketing problems and opportunities for suitable follow-up actions.
(5) To suggest the introduction of new products, modifications of existing products and to
discover new uses of existing products.
(6) To design and test appropriate packages of company‘s products and make packaging as
attractive as possible
(7) To study existing pricing, channels of distribution and market competition for suitable
changes, if necessary.
(8) To find out methods for making the products of the company popular and raising its
goodwill and market reputation.
(12) 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.
(13) To define the probable market for a specialized product and to report on general market
conditions and tendencies, buying habits, etc.
This data can be found in local libraries or on the Web, but books and business publications,
as well as magazines and newspapers, are also great sources.
Hence, Primary research delivers more specific results than secondary research, which is an
especially important while launching a new product or service. In addition, primary research
is usually based on statistical methodologies that involve sampling as small as 1 percent of a
target market. This tiny representative sample can give an accurate representation of a
particular market.
With the advance in technology a lot of software have been developed which help in primary
market research online and offline thereby making analysis and interpretation easier.
The ideal way to conduct Marketing Research is to do secondary research first and then do
the primary research for the data not available from secondary sources.
Hence, secondary research lays the groundwork and primary research helps fill in the gaps.
By using both types of market research, organisations get a better picture of their market and
have the information they need to make important business decisions.
It majorly deals with the input (i.e., gathering appropriate internal and external data),
generating useful information out of it (with the help of the various marketing
information system components) and then communicating the outcome so acquired to the
decision-makers.
Characteristics
Computer-Based System: In the marketing information system, all the information is
gathered, analyzed and communicated through a computer device, and the useful marketing
information is stored in microfilms.
Quick, Selective and Accurate Information: The organization can maintain relevant
marketing database through marketing information system which can be immediately and
accurately accessed anytime.
Easy Accessibility: The information maintained with the help of the marketing information
system can be easily viewed and utilized through a computer system.
Inter-related Components: In marketing decisions and communication, all the four
components are inter-linked, i.e., the information provided by one element is useful for the
functioning of the other aspects.
These interconnected components include internal report, marketing research, marketing
intelligence and marketing decision support systems.
Future-Oriented: The marketing information system initiates strategy formulation and
planning for future marketing operations.
Supports Decision Making: Since this system provides an accurate marketing database, it
can be certainly used for instantaneous decision making by the marketing managers.
Consistent Information: Marketing information system enables the management and
decision-makers to assess relevant, updated and valuable marketing information.
Applicable at all Levels of Management: Every manager uses the marketing information
system to decide marketing strategies, plans, policies and procedures prepared at all
managerial levels.
Components of Marketing Information System
The marketing information system integrates data collection, processing, analysis, and
reporting for streamlining marketing activities using the four primary techniques or
components. These components function within a framework of marketing decisions and
communication.
The system can also be used to monitor market trends, analyze customer preferences and
needs, and track customer purchase behavior. The following section will provide an in-depth
overview of some of the most important and common uses:
These are just some of the ways that a marketing information system can help organizations
make informed decisions related to their marketing activities.
Steps in Marketing Research
Defining a research problem properly and clearly is a crucial part of a research study and
must in no case be accomplished hurriedly. However, in practice this frequently overlooked
which causes a lot of problems later on. Hence, the research problem should be defined in a
systematic manner, giving due weightage to all relating points.
The technique for the purpose involves the undertaking of the following steps generally one
after the other:
(i) Statement of the problem in a general way;
(ii) Understanding the nature of the problem;
(iii) Surveying the available literature
(iv) Developing the ideas through discussions; and
(v) Rephrasing the research problem into a working proposition.
(i) Statement of the problem in a general way: First of all the problem should be stated in a
broad general way, keeping in view either some practical concern or some scientific or
intellectual interest. For this purpose, the researcher must immerse himself thoroughly in the
subject matter concerning which he wishes to pose a problem. In case of social research, it is
considered advisable to do some field observation and as such the researcher may undertake
some sort of preliminary survey or what is often called pilot survey. Then the researcher can
himself state the problem or he can seek the guidance of the guide or the subject expert in
accomplishing this task. Often, the guide puts forth the problem in general terms, and it is
then up to the researcher to narrow it down and phrase the problem in operational terms. In
case there is some directive from an organizational authority, the problem then can be stated
accordingly. The problem stated in a broad general way may contain various ambiguities
which must be resolved by cool thinking and rethinking over the problem. At the same time
the feasibility of a particular solution has to be considered and the same should be kept in
view while stating the problem.
(ii) Understanding the nature of the problem: The next step in defining the problem is to
understand its origin and nature clearly. The best way of understanding the problem is to
discuss it with those who first raised it in order to find out how the problem originally came
about and with what objectives in view. If the researcher has stated the problem himself, he
should consider once again all those points that induced him to make a general statement
concerning the problem. For a better understanding of the nature of the problem involved, he
can enter into discussion with those who have a good knowledge of the problem concerned or
similar other problems. The researcher should also keep in view the environment within
which the problem is to be studied and understood.
(iii) Surveying the available literature: All available literature concerning the problem at
hand must necessarily be surveyed and examined before a definition of the research problem
is given. This means that the researcher must be well-conversant with relevant theories in the
field, reports and records as also all other relevant literature. He must devote sufficient time
in reviewing of research already undertaken on related problems. This is done to find out
what data and other materials, if any, are available for operational purposes. ―Knowing what
data are available often serves to narrow the problem itself as well as the technique that might
be used.‖ This would also help a researcher to know if there are certain gaps in the theories,
or whether the existing theories applicable to the problem under study are inconsistent with
each other, or whether the findings of the different studies do not follow a pattern consistent
with the theoretical expectations and so on. All this will enable a researcher to take new
strides in the field for furtherance of knowledge i.e., he can move up starting from the
existing premise. Studies on related problems are useful for indicating the type of difficulties
that may be encountered in the present study as also the possible analytical shortcomings. At
times such studies may also suggest useful and even new lines of approach to the present
problem.
(iv) Developing the ideas through discussions: Discussion concerning a problem often
produces useful information. Various new ideas can be developed through such an exercise.
Hence, a researcher must discuss his problem with his colleagues and others who have
enough experience in the same area or in working on similar problems. This is quite often
known as an experience survey. People with rich experience are in a position to enlighten the
researcher on different aspects of his proposed study and their advice and comments are
usually invaluable to the researcher. They help him sharpen his focus of attention on specific
aspects within the field. Discussions with such persons should not only be confined to the
formulation of the specific problem at hand, but should also be concerned with the general
approach to the given problem, techniques that might be used, possible solutions, etc.
(v) Rephrasing the research problem: Finally, the researcher must sit to rephrase the
research problem into a working proposition. Once the nature of the problem has been clearly
understood, the environment (within which the problem has got to be studied) has been
defined, discussions over the problem have taken place and the available literature has been
surveyed and examined, rephrasing the problem into analytical or operational terms is not a
difficult task. Through rephrasing, the researcher puts the research problem in as specific
terms as possible so that it may become operationally viable and may help in the
development of working hypotheses.
In addition to what has been stated above, the following points must also be observed while
defining a research problem:
(a) Technical terms and words or phrases, with special meanings used in the statement of the
problem, should be clearly defined.
(b) Basic assumptions or postulates (if any) relating to the research problem should be clearly
stated.
(c) A straight forward statement of the value of the investigation (i.e., the criteria for the
selection of the problem) should be provided.
(d) The suitability of the time-period and the sources of data available must also be
considered by the researcher in defining the problem.
(e) The scope of the investigation or the limits within which the problem is to be studied must
be mentioned explicitly in defining a research problem.
AN ILLUSTRATION
The technique of defining a problem outlined above can be illustrated for better
understanding by taking an example as under:
Let us suppose that a research problem in a broad general way is as follows:
“Why is productivity in Japan so much higher than in India”?
In this form the question has a number of ambiguities such as:
What sort of productivity is being referred to?
With what industries the same is related?
With what period of time the productivity is being talked about?
In view of all such ambiguities the given statement or the question is much too general to be
amenable to analysis. Rethinking and discussions about the problem may result in narrowing
down the question to:
―What factors were responsible for the higher labour productivity of Japan‘s manufacturing
industries during the decade 1971 to 1980 relative to India‘s manufacturing industries?‖
This latter version of the problem is definitely an improvement over its earlier version for the
various ambiguities have been removed to the extent possible.
Further rethinking and rephrasing might place the problem on a still better operational basis
as shown below:
―To what extent did labour productivity in 1971 to 1980 in Japan exceed that of India in
respect of 15 selected manufacturing industries?
What factors were responsible for the productivity differentials between the two countries by
industries?‖
With this sort of formulation, the various terms involved such as ‗labour productivity‘,
‗productivity differentials‘, etc. must be explained clearly. The researcher must also see that
the necessary data are available. In case the data for one or more industries selected are not
available for the concerning time-period, then the said industry or industries will have to be
substituted by other industry or industries.
The suitability of the time-period must also be examined. Thus, all relevant factors must be
considered by a researcher before finally defining a research problem.
Research Design
―A research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedure.‖
In fact, the research design is the conceptual structure within which research is conducted; it
constitutes the blueprint for the collection, measurement and analysis of data. As such the
design includes an outline of what the researcher will do from writing the hypothesis and its
operational implications to the final analysis of data.
More explicitly, the design decisions happen to be in respect of:
(i) What is the study about?
(ii) Why is the study being made?
(iii) Where will the study be carried out?
(iv) What type of data is required?
(v) Where can the required data be found?
(vi) What periods of time will the study include?
(vii) What will be the sample design?
(viii) What techniques of data collection will be used?
(ix) How will the data be analysed?
(x) In what style will the report be prepared?
Keeping in view the above stated design decisions; one may split the overall research design
into the following parts:
(a) The sampling design which deals with the method of selecting items to be observed for
the given study;
(b) The observational design which relates to the conditions under which the observations are
to be made;
(c) The statistical design which concerns with the question of how many items are to be
observed and how the information and data gathered are to be analysed; and
(d) The operational design which deals with the techniques by which the procedures
specified in the sampling, statistical and observational designs can be carried out.
From what has been stated above, we can state the important features of a research design as
under:
(i) It is a plan that specifies the sources and types of information relevant to the research
problem.
(ii) It is a strategy specifying which approach will be used for gathering and analysing the
data.
(iii) It also includes the time and cost budgets since most studies are done under these two
constraints.
In brief, research design must, at least, contain—
(a) A clear statement of the research problem;
(b) Procedures and techniques to be used for gathering information;
(c) The population to be studied; and
(d) Methods to be used in processing and analysing data.
Research Design