MARKETING RESEARCH

Course FacilitatorDr.C.DHARMARAJ

MBA., M.Com., M.Phil., MA., PGDCA., PGDMM., Ph.D.,Assistant Professor (SG)School of Management

Karunya UniversityCoimbatore-641 114.

MARKETING RESEARCH

MARKETING – The performance of business activities that direct the flow of goods and services from producer to ultimate consumer.

RESEARCH – Finding something new-Finding solution for some problem.

MARKETING RESEARCH (MR)

Meaning - It means the careful and objective study of product design, markets and transfer activities such as physical distribution & warehousing, advertisement and sales management.

Definition – According to AMA defined MR as “the gathering, recording and analyzing of all data about problems relating to the transfer and sale of goods and services from producers to consumers”.

Objectives of MR

1. To know the demographic and psychographic of customers.

2. To find out the impact of promotional efforts.3. To know customers response to a new

product.4. To forecast sales.5. To anticipate competitive moves.6. To search what went wrong-if any.

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.

REASONS FOR CONDUCTING MARKET RESEARCH

• To identify the present and potential customers and their needs

• To forecast the demand of a product• To determine customers’ preference with regard

to packaging, design, size and price etc.,• To locate the demand for products with regard to

time and place, such as festival demand• To explore new demand for existing products.

SCOPE OF MARKETING RESEARCH

MRProduct

Research

Customer Research

Sales Research

Promotion Research

SCOPE OF MARKETING RESEARCHProduct research- it includes development and testing

of new product, improving the existing products, and a tab on the changing customer habits, tastes & preferences, etc.

Customer research- it includes investigation in to the customer buying behaviour-the economic, social, cultural, personal and psychological influences.

Sales research –it includes selection of store location, channels, territories and competition.

Promotion research- it includes advertising, publicity, public relations sales promotion, etc.

SIGNIFICANCE OF MR

1. To implement the marketing concept2. To synchronies the production & consumption3. To reduce uncertainty by providing information

for decision making

ADVANTAGE OF MR

1. Forecasting2. Assessing product acceptance3. Rightful promotion4. Understanding new markets5. Suitability of channels6. Overall business direction7. Assessment of middleman

LIMITATIONS OF MR

• Huge expenditure• Bias in collecting data• Unpredictable human behaviour• Requires intelligent handling• Requires competent researcher• Time gap between MR and implementation of

its findings

MR PROCESSIdentifying

Problem (Discovery )

Determination of MR

Selection of Research methods

Selection of sample design

Data collection

Data processing

Data analysis

Interpretation & findings

MR Report

MARKETING INFORMATION SYSTEM-MIS

• According to Kotler –MIS “ as a system that consist of people, equipment and procedures to gather, sort, analyze, evaluate, and distribute needed, timely and accurate information to marketing decision maker”

MARKETING INFORMATION SYSTEM-MISMarketing

Information SystemsInternal

Records, Marketing

Intelligence, Marketing Research, Analysis of

Information

Marketing EnvironmentTarget Markets,

Competitors, Channels, Macro Environment

Marketing Management DecisionsProduct , Pricing, Place, Promotion , Packaging ,

People and Process

MR Vs MISKey Point MR MIS

Definition as “the gathering, recording and analyzing of all data about problems relating to the transfer / sale of goods and services from producers to consumers

“as a system that consist of people, equipment and procedures to gather, sort, analyze, evaluate, and distribute needed, timely and accurate information to marketing decision maker”

Scope It handles problems relating to Particular area. Thus its scope is Limited.

It is concerned with the problems in all areas of marketing such as sales, cost of distribution advertising, etc.

Continuity It operates on specific marketing problems & it is over after the research study

It is continuous process

Objective It is conceived with finding solution for specific marketing problems

It cautions against possible marketing problems and thus preventing problems.

Orientation It may be Post-mortem of what has already taken place

It is always directed at the future aspects of marketing management

System It is a part of MIS It is an integral part of the Management IS

MR Agencies in India• India’s top 5 MR Agencies

Agency Business Size (in Crore)

ORG-MARG (Operation Research Group-Marketing and research Group)

57.0

Indian Market Research Bureau (IMRB) 48.0

Taylor nelson Sofres Mode 14.0

AC Nielson India 12.0

MBL-RCG (It has been bought by National Family Opinion) (NFO)

8.5

MR DesignRESEARCH DESIGN-Definition: A blue print or

frame work for conducting the marketing research project. It specifies the details of the procedures necessary for obtaining the information needed to structure or solve the marketing research problems.

COMPONENTS OF RESEARCH DESIGN

• Define the information needed• Design the exploratory, descriptive or causal

phase of the research• Specify the measurement and scaling

procedures• Construct and pre-test the questionnaire• Specify the sampling process & sample size• Develop a plan of data analysis

CLASSIFICATION OF MR DESIGN

RESEARCH DESIGN

CONCLUSIVE RESEARCH

DESCRIPTIVE

RESEARCH

CAUSAL RESEARC

H

EXPLORATORY RESEARCH

EXPLORATORY RESEARCHThe objectives of the exploratory research is to explore or

search through a problem / situation to provide insights and understanding.

It could be used for any of the following purpose:1. Formulate a problem2. Identify the alternative course of action3. Develop hypotheses4. Isolate key variables and relationships for further

examination5. Gain insights for developing an approach to the problem6. Establish properties for further research

DESCRIPTIVE RESEARCHThe major objective of descriptive research is to describe

something – usually market characteristics OR functions.Descriptive research is conducted for the following

reasons:1. To describe the characteristics of the relevant groups,

such as consumers, sales people etc.,2. To estimate the percentage of units in a specified

population exhibiting certain behaviour3. To determine the perception of product characteristic4. To determine the degree to which marketing variables

are associated5. To make specific predictions.

CAUSAL RESEARCH

The major objective is to obtain evidence regarding cause- and – effect (causal) relationship.

The causal research is appropriate for the following purposes:

1. To understand which variable are the cause(Independent variable) and which variable are the effect (dependent variable) of a phenomenon.

2. To determine the nature of the relationship between the causal variables and the effect to be predicted.