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BIRLA INSTITUTE OF TECHNOLOGY AND SCIENCE

Work Integrated Learning Programme Division

M.S. Consultancy Management

Second Semester

Course : MARKETING RESEARCH

Assignment No : Ist

Submitted by : GAURAV JAIN

ID. No. : 2012HZ58049

Signature:

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S.No Particulars Page No.

1Introduction

4

2Marketing Process

5-6

3Marketing Research Process

7-8

4Market research inputs at every stage of a typical marketing process.

9-13

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ASSIGNMENT 1 - Explain as to how market research inputs are required at every stage of a typical marketing process.

Market research is one of the most important features of the business campaign of most of the

companies in the present times be it in the manufacturing industry or service sector.

I have structured the assignment in the following parts in order to ensure that none of the points are

left:-

Assignment Structure:-

I. Introduction

II. Marketing Process

III. Marketing Research Process

IV. Market research inputs at every stage of a typical marketing process

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I. INTRODUCTION

Market research is one of the most important features of the business campaign of most of the

companies. It is mainly conducted so as to know the demands of the market. Companies can assess by

the market research that if their product or service can do well in a particular market or not. Market

research is essential for businesses or products that are meant for a particular audience base. One can

minimize the risks involved in a business by opting to timely and efficient market research.

Businesses must make market research an important part of their business process. One must utilize

market research throughout the lifecycle of a business or product.

There are numerous benefits that are associated with market research. Market research can help the

businesses to communicate with customers or potential issuers. The experience of the existing

clientele of businesses is a valuable source of information. The market research can let the businesses

analyze how well they are catering to the needs and specifications of the customers. One of the most

alluring features of the market research is that it can tell what are the modifications that can make the

business grow and what are the practices that should be avoided while doing a business. Market

research involves getting feedback from the customers regarding a product and service. This way the

consumers can not only feel important but also satisfied as they are involved in marketing process by

asking for their feedback in the process of market research.

Customers can feel assured of the company’s customer service if they are involved in the marketing

process. Market research can help businesses to identify new opportunities. If a company is planning

for a new product/service launch and want to analyze the preconceived attitudes of people then market

research is the best option available. Market research can help the businesses get potential ideas for

boosting up their businesses. Businesses can assess the areas that need modification by the means of

market research. Market research minimizes the risk by helping the businesses in shaping up new

services and products. It can help businesses in identifying what they need for increasing the clientele

and retaining the existing clientele.  

Market research can help the businesses know the exact demand of a product in the current

marketplace as the development of any product is dependent solely upon its demand in the present

times. One can measure progress and can create benchmarks by the means of the market research.

One cannot assess how well the business is performing without pursuing market research. Timely

research can enable the businesses to find out loopholes and flaws in a specific product or service

launched by them. One can assess the short falls of a brand by pursuing market research. One of the

most premium benefits of pursuing market research is that it shows if the modifications brought up in

a product can bring positive effects on a business or not.

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II. MARKETING PROCESS

Under the marketing concept, the firm must find a way to discover unfulfilled customer needs and

bring to market products that satisfy those needs. The process of doing so can be modeled in a

sequence of steps: the situation is analyzed to identify opportunities, the strategy is formulated for a

value proposition, tactical decisions are made, the plan is implemented and the results are monitored.

The Marketing Process in general has the following phases or say steps:

Situation Analysis

A thorough analysis of the situation in which the firm finds itself serves as the basis for identifying

opportunities to satisfy unfulfilled customer needs. In addition to identifying the customer needs, the

firm must understand its own capabilities and the environment in which it is operating. The situation

analysis thus can be viewed in terms an analysis of the external environment and an internal analysis

of the firm itself. The external environment can be described in terms of macro-environmental factors

that broadly affect many firms, and micro-environmental factors closely related to the specific

situation of the firm. The situation analysis should include past, present, and future aspects. It should

include a history outlining how the situation evolved to its present state, and an analysis of trends in

order to forecast where it is going. Good forecasting can reduce the chance of spending a year

bringing a product to market only to find that the need no longer exists. If the situation analysis

reveals gaps between what consumers want and what currently is offered to them, then there may be

opportunities to introduce products to better satisfy those consumers. Hence, the situation analysis

should yield a summary of problems and opportunities. From this summary, the firm can match its

own capabilities with the opportunities in order to satisfy customer needs better than the competition.

There are several frameworks that can be used to add structure to the situation analysis:

5 C Analysis- company, customers, competitors, collaborators, climate. Company represents

the internal situation; the other four cover aspects of the external situation

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PEST analysis - for macro-environmental political, economic, societal, and technological

factors. A PEST analysis can be used as the "climate" portion of the 5 C framework.

SWOT analysis- strengths, weaknesses, opportunities, and threats - for the internal and

external situation. A SWOT analysis can be used to condense the situation analysis into a

listing of the most relevant problems and opportunities and to assess how well the firm is

equipped to deal with them.

Marketing Strategy

Once the best opportunity to satisfy unfulfilled customer needs is identified, a strategic plan for

pursuing the opportunity can be developed. Market research will provide specific market information

that will permit the firm to select the target market segment and optimally position the offering within

that segment. The result is a value proposition to the target market. The marketing strategy then

involves:

Segmentation

Targeting

Positioning the product within the target market

Value proposition to the target market

Marketing Mix Decisions

Detailed tactical decisions then are made for the controllable parameters of the marketing mix The action items include:

Product development - specifying, designing, and producing the first units of the product.

Pricing decisions Distribution contracts Promotional campaign development

Implementation and Control

At this point in the process, the marketing plan has been developed and the product has been

launched. Given that few environments are static, the results of the marketing effort should be

monitored closely. As the market changes, the marketing mix can be adjusted to accommodate the

changes. Often, small changes in consumer wants can addressed by changing the advertising message.

As the changes become more significant, a product redesign or an entirely new product may be

needed. The marketing process does not end with implementation - continual monitoring and

adaptation is needed to fulfil customer needs consistently over the long-term.

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III. Process of marketing research

Market research, reviewing the following seven steps in the market research process.

Step One: Define Marketing Problems and Opportunities

The market research process begins with identifying and defining the problems and opportunities that

exist for the business

Step Two: Set Objectives, Budget and Timetables

Organization objective might be to explore the nature of a problem so it may further define it. Or,

perhaps it is to determine how many people will buy the product packaged in a certain way and

offered at a certain price. The objective might even be to test possible cause and effect relationships.

For example, if the company lower price by 10 percent, what increased sales volume should be

expected? What impact will this strategy have on the profits?

How much money are the company willing to invest in the companys’ market research? How much

can it afford? Prepare a detailed, realistic time frame to complete all steps of the market research

process.

Step Three: Select Research Types, Methods and Techniques

There are two types of research: primary research or original information gathered for a specific

purpose and secondary research or information that already exists somewhere. Both types of research

have a number of activities and methods of conducting associated with them.

Step Four: Research Design

There are three types of research design used in a marketing research process namely:

1. Exploratory Research Design- is defined as collecting information in an unstructured and

informal manner. Examples: Reading periodicals, visiting competitors’ premises, examine

company sales and profits vs. industry sales and profit, clipping service.

2. Descriptive Research Design- refers to a set of methods and procedure that describe

marketing variables. Portray these variables by answering who, what, why and how questions.

Example: consumer attitude survey to the companies services.

3. Casual Research Design - designs allow us to isolate causes and their effects.

a. Casual research is conducted by controlling various factors to determine which factor

is causing the problem.

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b. By changing one factor, say price, we can monitor its effect on a key consequence,

such as sales. In other words, casual design allows us to determine causality, or which

variable is causing another variable to change.

Step Five: Collect the Data

Often called data collection or survey fielding, this is the point at which the finalized questionnaire Survey instrument) is used in gathering information among the chosen sample segments. There are a variety of data collection methodologies to consider. Basically two types of data information available to a marketing researcher: Secondary data – as it name implies, refers to information that has been collected for some other purpose. Primary data - refers to information that has been gathered specifically to serve the research objectives at hand. There are several different methods of collecting primary data including

A. Telephone surveys

B. Mail surveys

C. Door-to-door interviews

D. Mall-intercept studies

E. New data collection methods are emerging.

Step Six: Organize and Analyze the Data

Once the data has been collected, it needs to be assembled into a format in which it can be analyzed

easily. This involves editing, coding and tabulating the responses.

Step Seven: Present and Use Market Research Findings

Once marketing information about the target market, competition and environment is collected and

analyzed, present it in an organized manner to the decision makers of the business.

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IV. Role of Marketing Research in the Marketing Process

Once the researcher has determined which type or types of information are needed, he or she must

determine methods of accessing data.

PHASE I: Situation Analysis

During the first phase of marketing process (Situation Analysis) data is required on the internal and

external factors that influence production and sales to formulate an effective marketing strategy.

Detailed market intelligence can be obtained by conducting market research using methods such as

online and telephone surveys. Demographic data can be sources, or bought from research companies

and solicit feedback from former and existing customers by mail. Compiling the information into a

comprehensive market research report guides in developing a business' marketing strategy.

Utilizing market research, a situational analysis will define potential customers, projected growth,

competitors and a realistic assessment of the business. It involves targeting the specific objectives in

the business and identifying the factors that will support or hinder those objectives. Techniques Used

– For external factors/capabilities the most commonly used techniques are PESTLE (Political,

Economic, Socio Cultural, Technological, Environmental and Legal) , Porters’ 5 forces framework

while MOST Analysis (Mission, Objective, Strategy and Tactics), Boston Box, SWOT, Ansoff

Matrix and Mckinsey 7s and Four view model are used for internal evaluation. Exploratory research

design and the use of secondary data can be of great help in performing environmental analysis.

PHASE II: Marketing Strategy

Marketing strategy establishes the guidelines for how to use the information gathered from the

market research. The marketing strategy should include a path to specific goals, such as reaching a

specific market demographic or a distinctive way to position the company and product. The marketing

strategy is also useful in defining where the company fits in among competitors: as a leader, follower,

challenger or niche company. The answer to the above questions is what one wants.

Researching the market is perhaps the easiest way to conquer the market. Market research does not

have to be costly, nor does it have to be a complex process. Businesses today are very different from

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those of the past. Business today is far more aggressive in their pursuit of success. With the growth of

the Internet, competitiveness has gone global. Millions of businesses compete every day, and it is

necessary to arm with the right tools to close the sale.

A business that wants to remain competitive and be profitable will need to understand the products

that their target market is looking for. This kind of information only comes from marketing research.

Not only will they need to understand what products should be brought into the market, but also the

success of their current products. Information on what they are doing right and what could use some

improvement is vital to a business’s success. It is only with the correct data that a business can create

a marketing plan or adjust the one they already have.

For market research to be useful it must contain a detailed plan on the method that will be used to

collect the information and how that information will be analyzed. This will ensure that there is

applicable information that allows management to make the correct decisions. When the research is

completed the resulting information is given to the marketing group or managers of the business. All

of this information will aid the marketing team in creating the correct promotions and marketing

strategies to gain the market share they are after.

In today's competitive business world it is important to have the right data to properly develop a

marketing plan. Without a plan to market products a business is set up to fail. Marketing methods and

tools are the basis of the marketing strategy that a company will use to rise to the top of their market. .

Some common used marketing research techniques used at this phase being:-

1. Concept testing  - to test the acceptance of a concept by target consumers

2. Buyer decision making process  research - to determine what motivates people to buy and

what decision-making process they use; over the last decade, Neuro marketing emerged from

the convergence of neuroscience and marketing, aiming to understand consumer decision

making process

3. Demand  estimation - to determine the approximate level of demand for the product

4. Sales forecasting - to determine the expected level of sales given the level of demand. With

respect to other factors like Advertising expenditure, sales promotion etc.

5. Segmentation research  - to determine the demographic, psychographic, and behavioural

characteristics of potential buyers

6. Test marketing  - a small-scale product launch used to determine the likely acceptance of the

product when it is introduced into a wider market

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Research design used at this phase shall be Descriptive and Exploratory with both primary

and secondary data as the input.

PHASE III: Marketing Mix

Of all the marketing terms, people are most often familiar with the term "marketing mix". It's used to

describe the 4 tactics at a marketer's disposal, namely: product, price, place and promotion. Some also

add people and process to the mixture. To understand how the marketing mix works, one can think of

the analogy of baking a cake and the 4 P's being the ingredients. The finished cake will depend on

how much of each ingredient he/she use. For a sweeter cake, add more sugar. For a product that

differentiates on the basis of being accessible 24/7, increase the emphasis on place (distribution) and

decrease the emphasis on price. Depending on marketing objectives, marketing research can help to

find the answers to questions such as:

PRODUCT RESEARCH

What product characteristics are important to your customer experiences e.g. features, color,

size etc.

What product innovations are likely to be well-received by customers?

What brand name appeals to your customers?

What functionality do your customers want?

What styling, quality, safety and packaging do your customers want?

Is after sales service, repairs, warranty and guarantees important to your customers?

PRICING RESEARCH

What pricing strategy should you use (cash discounts, customer segment pricing, special

event pricing etc.)?

What should your suggested retail price be?

Should you give volume discounts or offer wholesale pricing?

Should you offer early payment discounts?

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Should you offer seasonal discounts?

Should you bundle products or services?

PLACE OR DISTRIBUTION RESEARCH

Choosing a distribution channel. Should your product or service be sold through a retailer?

Should you offer the product or service wholesale? Should you use multi-level marketing or

party-plan to sell your product?

Deciding what kind of market coverage you need i.e. are you going to be exclusive, selective

or have a wide inclusive distribution

What channel partners to choose?

Where and when should your product or service be available?

PROMOTION RESEARCH

What promotion strategy to use

Whether your key messages or copy resonates with your target market

Selecting the advertising media that will best reach your target market and which best

conveys your brand message

Whether your advertising or promotions strategy has increased your brand recognition

Marketing research techniques as stated below helps in finding the answers to the questions:-

1. Ad Tracking  – periodic or continuous in-market research to monitor a brand’s performance

using measures such as brand awareness, brand preference, and product usage.

2. Advertising Research  – used to predict copy testing or track the efficacy of advertisements for

any medium, measured by the ad’s ability to get attention (measured with AttentionTracking),

communicate the message, build the brand’s image, and motivate the consumer to purchase

the product or service.

3. Brand equity  research - how favorably do consumers view the brand?

4. Brand association research - what do consumers associate with the brand?

5. Brand attribute research - what are the key traits that describe the brand promise?

6. Brand name testing  - what do consumers feel about the names of the products?

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7. Commercial eye tracking  research - examine advertisements, package designs, websites, etc.

by analyzing visual behavior of the consumer

8. Viral Marketing Research  - refers to marketing research designed to estimate the probability

that specific communications will be transmitted throughout an individual's Social Network.

Estimates of Social Networking Potential (SNP) are combined with estimates of selling

effectiveness to estimate ROI on specific combinations of messages and media.

9. Positioning  research - how does the target market see the brand relative to competitors? -

what does the brand stand for?

10. Price elasticity  testing - to determine how sensitive customers are to price changes

11. Copy testing  – predicts in-market performance of an ad before it airs by analyzing audience

levels of attention, brand linkage, motivation, entertainment, and communication, as well as

breaking down the ad’s flow of attention and flow of emotion.

Research design used at this phase is Descriptive, Exploratory and Casual with both primary and

secondary data as the input.

PHASE IV: Implementation & Control

Once the product/service has been launched, it's at this stage that anything missed will become

apparent and where flexibility in organization’s strategy will be necessary. What if a competitor

produces a spoiler? Or there is a major channel shake up?

By having done sufficient planning up front and looked at scenarios and pre-tested, the organization

can be prepared for the major contingencies it might face and hopefully have an appropriate response

ready and waiting. If the main strategy is right and robust, but the details aren't quite in place then the

company would have the option of tweaking as you go, without throwing out all the work and effort

that has been put in place.

To ensure how the company does, It is important to having monitoring and reviews in place.

Company have to be able to prove success by having set appropriate measures, as much as achieving

that success in the first place. Monitoring can include internal financial and quality indicators, but

these normally need to be combined with external measures such as customer satisfaction, brand tracking, or market share monitoring. Some common used marketing research techniques used

at this phase being:-

1. Cool hunting - to make observations and predictions in changes of new or existing cultural

trends in areas such as fashion, music, films, television, youth culture and lifestyle

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2. Customer satisfaction research - quantitative or qualitative studies that yields an

understanding of a customer's satisfaction with a transaction

3. Marketing effectiveness and analytics - Building models and measuring results to determine

the effectiveness of individual marketing activities.

4. Mystery consumer or mystery shopping - An employee or representative of the market

research firm anonymously contacts a salesperson and indicates he or she is shopping for a

product. The shopper then records the entire experience. This method is often used for quality

control or for researching competitors' products.

5. Store audit - to measure the sales of a product or product line at a statistically selected store

sample in order to determine market share, or to determine whether a retail store provides

adequate service

6. Online panel  - a group of individual who accepted to respond to marketing research online

7. Distribution channel  audits - to assess distributors’ and retailers’ attitudes toward a

product, brand, or company

8. Internet strategic intelligence - searching for customer opinions in the Internet: chats, forums,

web pages, blogs... where people express freely about their experiences with products,

becoming strong opinion formers.

Research design used at this phase is Descriptive and Casual with primary data as the input.