MODULE-5
Marketing Research
Marketing Research
□ Marketing research is the systematic
gathering, recording and analyzing of data
about problems relating to the marketing
of goods and services.
□ Market research will give you the data you
need to identify and reach your target
market at a price customers are willing to
pay.
□ Marketing research focuses and organizes
marketing information. It permits
entrepreneurs to:
■ Spot current and upcoming problems in the
current market
■ Reduce business risks
■ Identify sales opportunities
■ Develop plans of action
□ Market research will identify trends that
affect sales and profitability.
■ Population shifts
■ Legal developments
■ The local economic situation should be
monitored to quickly identify problems and
opportunities
□ Keeping up with competitors' market
strategies also is important.
□ Every small business owner must ask
the following questions to devise
effective marketing strategies:
■ Who are my customers and
potential customers?
■ What kind of people are they?
■ Where do they live?
■ Can and will they buy?
ROLES OF MARKETING
RESEARCH
➢ To know the demographic and
psychographic
- Market research reveal the number of customer who
buy, why they buy, when they buy, the frequency of
their buying and the source their buying
➢ To find out the impact of
promotional effort
- Marketing research facilitates appraising and
improving the methods
of sale promotion.
To know customer response to
new product-
▶ marketing research is frequently used to
know the opinion of the customer about the
satisfaction given by a new product. This
helps in knowing the desired improvement in
quality, design, size, packing, distribution
method.
To forecast
sale
▶ Marketing research sales forecasting and
marketing planning on the basis of the
response of the customer and the
distribution method.
To anticipate
competitive moves
▶ Marketing research helps the marketers to
continuously monitor the competitors and
judge about the right actions that might be
required.
To probe what went wrong
▶ This happens when the product is having some
special problem.
Market research - the process
□ Market research can be simple or complex.
□ You might conduct simple market research.
■ Example: Questionnaire in your customer bills to gather
demographic information about your customers
□ You might conduct complex research.
■ Example: Hiring a professional market
research firm to conduct primary research to
aid in developing a marketing strategy to
launch a new product
□ Regardless of the simplicity or complexity
of your marketing research project, you'll
benefit by reviewing the following seven
steps in the market research process.
1 3 5 7
2 4 6
Step 1: Define Marketing Problems
and Opportunities
□ You are trying to launch a new product or
service. Opportunity
□ Awareness of your company and its
products or services is low. Problem
□ The market is familiar with your company,
but still is not doing business with you.
Problem
□ Your company has a poor image and
reputation. Problem
□ Your goods and services are not reaching
the buying public in a timely manner.
Problem
Step 2: Set Objectives, Budget and
Timetables
Budget
□ Your market research budget is a portion of
your overall marketing budget.
□ Allocate a small percentage of gross sales for
the most recent year to use on market
research.
■ It’s usually about 2 percent for an existing
business.
□ Planning to launch a new product or
business?
■ You may want to increase your budget to as much
as 10 percent of your expected gross sales.
□ Other methods include analyzing and
estimating the competition's budget and
calculating your cost of marketing per sale.
Timetables
□ Prepare a detailed timeline to complete all
steps of the market research process.
□ Establish target dates that will allow the
best accessibility to your market.
■ For example, a holiday greeting card business
may want to conduct research before or
around the holiday season buying period, when
its customers are most likely to be thinking
about their purchases.
Step 3: Select Research Types,
Methods and Techniques
□ Two types of research are available:
■ Primary research is original information
gathered for a specific purpose.
■ Secondary research is information that already
exists somewhere.
Primary Research
□ Primary research can be as simple as
asking customers or suppliers how they
feel about a business, or as complex as
surveys conducted by professional
marketing research firms.
□ Examples of primary research are:
■ Direct-mail questionnaires
■ On-line or telephone surveys
■ Experiments
■ Panel studies
■ Test marketing
■ Behavior observation
Primary Research
□ Primary research is divided into reactive and
nonreactive research.
□ Nonreactive
■ Observes how real people behave in real market
situations without influencing that behavior
□ Reactive research
■ Includes surveys, interviews and questionnaires
■ This research is best left to marketing
professionals, as they usually can get more
objective and sophisticated results.
Primary Research Cont.
• □ Those who can't afford high-priced marketing
research services should consider asking nearby
college or university business schools for help.
Secondary Research
□ Secondary research is faster and less
expensive than primary research.
□ Gathering secondary research may be as
simple as making a trip to your local
library or business information center or
browsing the Internet.
□ It utilizes information already published.
■ Surveys, books, magazines, etc.
Step 4: Design Research Instruments
□ The most common research instrument is
the questionnaire. Keep these tips in mind
when designing your market research
questionnaire.
■ Keep it simple. Include instructions for
answering all questions
■ Begin the survey with general questions and
move toward more specific questions.
■ Design a questionnaire that is graphically
pleasing and easy to read.
□ Before printing the survey, ask a few
people to complete the survey and give
feedback.
□ Mix the form of the questions for different
sections of the questionnaire
■ Scales
■ Rankings
■ Open-ended questions
■ Closed-ended questions
□ The form or way a question is asked may
influence the answer given. Questions are
in two forms: closed-end questions and
open-end questions.
Closed-ended questions
□ Types of closed-ended questions include:
■ Multiple choice questions
■ “Yes” or “No” questions
□ Scales refer to questions that ask
respondents to rank their answers or
measure their answer at a particular point on
a scale.
■ For example, a respondent may have the choice to
rank his/her feelings toward a particular
statement. The scale may range from "Strongly
Disagree" "Disagree" and "Indifferent" to "Agree"
and "Strongly Agree."
Open-ended questions
□ Respondents answer questions in their own
words.
□ Types of open-ended questions include:
■ Word association questions ask respondents to
state the first word that comes to mind when a
particular word is mentioned.
■ Fill-in-the blank
□ For example, a question might
read: “When I eat toast and
jelly, I use brand of jelly
and it usually costs about
per jar.
Step 5: Collect Data
□ To obtain clear, unbiased and
reliable results, collect the
data under the direction of
experienced researchers.
□ Before beginning data
collection, You must to train,
educate and supervise your
research staff.
■ Untrained staff conducting
primary research will lead to
interviewer bias.
Step 5 Cont.
□ Stick to the objectives and rules associated
with the methods and techniques you have
set in Step 2 and Step 3.
□ Be as scientific as possible in gathering your
information.
Step 6: Organize
and Analyze the Data
□ Once data has been collected, it needs to
be cleaned.
□ Cleaning research data involves editing,
coding and tabulating results.
■ Start with a simply designed research
instrument or questionnaire.
□ Look for data focusing on immediate market
needs.
□ Rely on subjective information only as support
for more general findings of objective research.
□ Analyze for consistency; compare the results of
different methods of your data collection.
□ Look for common opinions that may be counted
together.
□ Read between the lines. For example, combine
U.S. Census Bureau statistics on median income
levels for a given location and the number of
homeowners vs. renters in the area.
Step 7: Present and Use Market
Research Findings
□ Once marketing information is
collected and analyzed, present
it in an organized manner to the
decision makers of the business.
■ You may want to report your
findings in the market analysis
section of your business plan.
■ You may want to familiarize your
sales and marketing departments
with the data or conduct a
companywide informational
training seminar using the
information.
⦿ INTRODUCTION TO MARKETING &
ORGANISATION
⦿ MEANING OF MARKETING ORGANISATION
⦿ PRINCIPLES OF MARKETING ORGANISATION
⦿ IMPORTANCE OF MARKETING ORGANISATION
⦿ TYPES OF MARKETING ORGANISATION &
STRUCTURE
⦿ Marketing can be simply defined as “ Process
of Creating & Delivering Standard of Living of
Society .
⦿ Marketing isthe Beginning & End of all
Business Activities.
⦿ Marketing is a Process of Create Time &
Place Utilities.
⦿ Organisationis simply a Group of People
working with a Common objective with a
Motive of Profit Earning.
⦿ Organisation
is a Mechanism through which
Managerial Philosophy is Translate into
Action.
⦿Marketing Organisation is an Orienting point
for Cooperative endeavors and a Structure of
Human Relationship.
⦿ It is Composed of Group of Individual
straining jointly to reach qualitative and
quantitative personnel selling objectives and
bearing both informal and formal relation to
one another.
⦿Marketing Organisation is the Foundation of
Effective Sales Planning for Systematic
execution of Plan and Policies.
⦿ Principle of Organisation
⦿ Principle of Objectives
⦿ Principle of Specialisation
⦿ Principle of Co ordination
⦿ Principle of Authority
⦿ Principle of Responsibilities
⦿ Principle of Definition
⦿ Principle of Correspondance
⦿ Principle of Span of Control
⦿ Principle of Continuity
⦿ It
helps in Administration and Management of
Marketing Policies.
⦿ Ithelps in Expansion and Growth of
Organisation and its Activities
⦿ It helps in Unity of Command
⦿ It helps in achieving objectives
⦿ Its Permits Optimum Use of Resourses.
⦿ Co-ordination of Different Departmental
Activities.
⦿ Effective Marketing Manager can Satisfy
various types of Consumer and their different
tests with the same product by converting
them properly.
1.FUNCTION
AL
5.COMBINAT 2.PRODUCT
ION OF 4
4.CUSTOMER 3.MARKET
⦿FUNCTIONAL TYPE OF MARKETING
ORGANISATION
⦿ In Functional type of organisation the
activities are grouped on the basis of
function to be performed as product
planning ,marketing research,advertising
and sales.
⦿ This is the most simple and common type
of organisation structures of marketing
tasks.
⦿ Eachmain function is sub-divided into
various sub-function to be performed to
attain the objectives such as
MARKETING,FINANCE AND PRODUTION.
⦿Each sub-function is delegated to separate
manager under the control of marketing
manager and such manager are responsible
to marketing manager who report to
executives.
⦿ PRODUCT TYPE OF MARKETING
ORGANISATION
⦿ In
Product marketing organisation forms
assigns to product manager with the
responsibility for marketing decisions of
particular product or groups of product.
⦿ The
product manager acts as a Little
manager.
⦿ Theproduct manager takes and executes
decision regarding matter like advertising
and sales promotion.
⦿ This
type of structure is best suited to
industries producing different products or
brands.e.g.Amul,hindustan uniliver.etc.
⦿ MARKET ORIENETD MARKETING
ORGANISATION
⦿ Market marketing organisation used by big
companies who serve large number of
customer spread over large territory.
⦿ CUSTOMER ORIENTED MARKETING
ORGANISATION
⦿ In customer marketing organisation
,structure concentration is on the type of
customers and separate groups are
designated responsible for marketing
programmes for their different classes of
customer such as
⦿ DISTRIBUTORS
⦿ RETAILERS AND
⦿ CUSTOMERS.
⦿ Fullattention can be paid to each classes of
customers and the problems can be
understood by the organisation .
⦿ Contact with customers regularly.
⦿ Helpful to estimated demands and satisfy
them.
⦿ COMBINED MAARKETING ORGANISATION
Definitions:
“Marketing control is theprocess of taking steps to
bring actual results and desired results closer
together”.
----Phillip Kotler
Definitions:
“It is concerned with analysing the performance
of marketing decisions, uncovering the
performance problems of opportunities and
taking corrective actions to resolve the problems
or to take advantages of the opportunities”. -
---Cravens
1.Annual Plan Control (Annual sales and the profit
goals are achieved.)
2. Profitability Control
3.Efficiency Control
4.Strategic Control
Sales Analysis
Market Share Analysis
Marketing Expense Analysis
Financial Analysis
Customer Attitude tracking
Sales Analysis: (Trace and understand sales pattern
over a period of time and compare with target pattern.
Sales, total sales, sales by areas, customers, products)
Market Share Analysis: (Competitors evaluation)
Marketing Expense Analysis: (Sales for expenses,
sales promotion expenses, market research expenses,
sales administration expenses.)here we can use control
charts
Financial Analysis: (Ratio analysis is very useful here.
Profitability and turnover ratios are very famous)
Customer Attitude tracking: (It is a qualitative term.
Identification of customers, dealers and other
employees. 1. Complaint suggestion system
2. Customer panel
3. Customer surveys
Profitability control and efficiency control allow a
company to closely monitor its sales, profits, and
expenditures.
Profitability control demonstrates the relative profit-
earning capacity of a company’s different products and
consumer groups.
This control is to determine the actual profitability of
the firms products, territories, market segments and
intermediaries.
Efficiency control involves micro-level analysis of the
various elements of the marketing mix,
including sales force, advertising, sales promotion, and
distribution.
For example, to understand its sales-force efficiency, a
company may keep track of how many sales calls a
representative makes each day, how long each call losts,
and how much each call costs and generates in revenue.
This type of analysis highlights areas in which
companies can manage their marketing efforts in a
more productive and cost-effective manner.
It is a in-depth study undertaken to examine whether
the company is pursuing its best opportunities with
respect to markets and products. Marketing department
having policies, objectives, strategies and programs are
to be reviewed and changed periodically.
1.Marketing effectiveness rating review:
(Marketing Orientation, Customer philosophy,
integrating marketing organisation, adequate marketing
information and strategic orientation)
2. Marketing audit:
Market audit is a in-depth analysis of the marketing
functions. Marketing audit is a comprehensive,
systematic, independent and periodic examination of
company’s marketing environment, objectives, strategies
and activities with a view to determining problem areas
and opportunities and recommendations.
Components of Marketing Audit:
Marketing environment audit
Marketing strategy audit
Marketing organisation audit
Marketing system audit, productivity audit, functional
audit
