Originally Posted by abhishreshthaa
MR is a systematic problem analysis , model building & fact finding for the purpose of improved decision making & control in the marketing of goods & services.
Role of MR
Drawbacks of MR
- To study needs ,wants & expectation of the consumers.
- To find out feedback about the product & co.
- To evaluate cos. Sales promotion measures & activities.
- To find out current marketing problem & opportunities.
- To study market condition while launching new product into the market.
- To find out competitors product response.
- It works as a tool for decision making.
- Reduces the gap between producer & consumer- MR is an essential element of competitive marketing .
- It suggests alternative solution to the marketer.
- Helps focus attention on objectives
- Aids forecasting, planning and strategic development.
- May help to reduce risk of new product development.
- Communicates image, vision of the co.
- Indicates current market trends
- Facilitates training & selection of the sales force.
- Facilitates business expansion.
- It helps to find out new distribution channel.
Identifying & defining marketing problem
- Information only as good as the methodology used
- Can be inaccurate or unreliable
- Results may not be what the business wants to hear
- It offers suggestion & not decision
- Information collected may be or may not be applicable – its human tendency to change.
- Application & utility of information depend upon the economic & political condition of the country.
- It cannot study all marketing problem- recession effects on buying decision or women do more shopping then men.
- Collection of information & application of the conclusion has time limit.
- Costly affair – increase in time , labor, decision cost.
- Problem developed due to changing marketing environment cannot be solved quickly.
- Expert & loyal staff – it requires expert & loyal staff which is difficult to get.
Determining research objective (hypothesis)
- To find out marketing problem – customer preference , needs , wants of the consumer.
- Income level of the customer & economic condition of the market.
- Introduction the new product in the market.
- Competitors product consumer response.
- To start MR process its important to know & identify market problem.
Creating research design
- Researcher has to formulate hypothesis to fit the problem under investigation.
- It is important to work under the hypothesis.
- Launch of the new product in particular market – Hypothesis – market condition like income level of the consumer is good , suitable to the needs of the area , no competitors product are available.
- Once it is decoded gives clear direction to the research process
- It is master plan to conduct of actual research investigation.
- What is the nature & purpose of study
- Type of data required
- Finds required for the research
- Exploratory research
- Descriptive research
- Casual research
Selecting sampling procedure
- For collecting data suitable questionnaire should be design.
- What – exact answer
- Why – explanatory answer , can find out likes & dislikes.
- How – process oriented , way to reach the target
- Who – exact source
- Options giving question – giving options in the question income level – 1 lac. To 2 lac pa , 5 lac to 10 lac pa ?
- For data collection a representative of the total universe.
- Random sampling – selection of group of people from the market as representative of the full market.
- Researcher cannot take full universe for data collection.
- Mix of all type of people – income, education, test etc.
Collection data can be done by –
Organizing analyzing & interpreting data
- Mail survey
- Telephone survey
- Personal interview
- Consumer panel
- Observation method
- Sample testing
- It may be primary data - Company Accounts ,Internal Reports and Analysis ,Stock Analysis, Retail data - loyalty cards, till data, etc
Preparation of research report
- Information collected through above sources should be organize in proper manner.
- Interpretation data which is collected under electronic format .
- This will help to establish relation between problem & information collected.
- Conclusion of the research is depend upon how the researcher interprets the data
A research report contains the following detail-
Follow up step
- Title of the report
- Methodology used
Methods of data collection Telephone survey
- t is step when the recommendation will be tested & feedback will be given to the research team.
- This step should be controlled effectively so as to have positive results in the course time.
- It is a decision making process in which hypothesis plays an important role
- use of interviewers encourages sample persons to respond, leading to higher response rates.
- fairly cost efficient, depending on local call charge structure
- good for large national (or international)
- some potential for interviewer bias
- cannot be used for non-audio information (graphics, demonstrations, taste/smell samples)
- unreliable for consumer surveys in rural areas where telephone penetration is low
- the questionnaire may be handed to the respondents or mailed to them, but in all cases they are returned to the researcher via mail.
- cost is very low
- long time delays, often several months, before the surveys are returned and statistical analysis can begin
- not suitable for issues that may require clarification
- respondents can answer at their own convenience (allowing them to break up long surveys; also useful if they need to check records to answer a question)
- no interviewer bias introduced
- large amount of information can be obtained: some mail surveys are as long as 50 pages
- Face to face interaction between two people
- Recording of the answer or writing of the answer on paper
- Facial expression can observe in the interview
- Oldest technique of data collection
- Detailed information is available.
- Sequence , addition or deletion of the question is possible
- It’s a costly time consuming method of data collection
- May be affected by personal bias
- Answer may be given to please the interviewer.
- It is a group of consumers selected for the purpose of survey / research work.
- Group of consumer is on the basis of age, economic status , believes , social background.
- Panel may ask to give opinion every now & then.
- Easy to tap the panel
- Easy to record the reaction & answer
- Some time repetitive answers & feedback
Applications of marketing research
- Observation of behavior of the customer at the market place.
- Purchase behavior & post purchase behavior can be observed.
- Video cameras are used to tab the reaction & facial reaction the customer along with the comment.
- It requires trained people to interpret the body language & observation
Research on market
- Consumer profile – this research is applicable to find out responses towards the launch of new product.
- To find reasons for dissatisfaction level of the consumer.
- To find out buying influences of the customer.
- Studying customer taste , reactions & brand preference.
- To find out changes needed in the existing product, for developing the product.
- Customer satisfaction study.
- Shift in consumption pattern
Market share analysis.
- Study market size , potential, market growth.
- To study market segment before launching the new product.
- To study overall business trends in the market.
- To find out distribution channels available in the market.
- Product, price, promotion, place research
- Testing of new product.
- Study on service requirements
- Brand tracking study competitive position of the product.
- Product development strategies.
- Decision of making or enhancing product.
- Study of packing, design , attractive packing material.
- Price charging for new product
- Pricing strategy for rural, urban market
- Discounts, offers, free( buy one get one free) on the product etc.
- Media research , ad campaigns, sales promotional measures
- Selecting cheap but effective media according to market condition.
- Distribution channels search.
- Finding out different mode of transportation.
- Safe & convenient place for storage.
- Finding out effective dealers, retailers chain for rural as well as urban market.
Hey abhi, thanks for sharing such a nice article on the marketing research as we know that it is very important topic and essential part of any business. Well, i am also uploading a document where you can find more information on marketing research.