SUBJECT: MARKETING RESEARCH
MBA 302-18
TOPIC: INTRODUCTION
Marketing Research
Marketing Research is comprised of two words:
Marketing Research
The term “Marketing” is derived from the word
“Market”. Here, Market refers to the place or
geographical area where buyers and sellers
gather and enter into transactions involving
transfer of ownership of goods and services (buy
and sell the products).
Marketing is not only about selling; because in
order to sell the product we must know the needs
(basic requirements) of the customers.
2 MR
Marketing Research
Successful marketing builds demand for
products and services, which, in turn,
creates jobs.
By contributing to the bottom line,
successful marketing also allows firms to
more fully engage in socially responsible
activities.
Marketers must decide what features to design
into a new product or service, what prices to
set, where to sell products or offer services, and
how much to spend on advertising, sales, the
Internet, or mobile marketing.
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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'.
Research can be classified into two broad
categories:
Basic Research Applied
Research
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Basic research
Basic research is also called fundamental or
pure research. As the name itself refers,
Basic Research is of basic nature which is
not carried out in response to a problem. It
is more educative, towards understanding
the fundamentals and aim at expanding the
knowledge base of an individual or
organisation. It does not have any
commercial potential.
5 MR
Applied research
Applied Research on the other hand is
carried out to seek alternate solutions for a
problem at hand. Applied research is done
to solve specific, practical questions; its
primary aim is not to gain knowledge. It
specifies possible outcomes of each of the
alternatives and its commercial
implications. For example,
Investigating if background music in a work
environment can contribute to greater
productivity
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Applied research can further be divided into:
Problem-solving research: It involves research
oriented towards a crucial problem facing the
organisation which may be issue specific.
Example: How do we improve the communication
skills of our employees?
Problem-oriented research: The research is
oriented towards a crucial problem facing the
organisation. It is undertaken inside the
organisation or by an external consultant on its
behalf. This research is conceptual in nature and
newer innovative techniques of problem-solving are
applied.
Example: How to improve the production yield from
machine X using modern techniques?
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Meaning of Marketing
Research
Marketing research (also called
consumer research) is a form of business
research. The field of marketing research as
a statistical science was pioneered by
Arthur Nielsen with the founding of the A C
Nielsen Company in 1923.
Marketing research is a systematic and
objective study of problems pertaining to
the marketing of goods and services. It is
applicable to any area of marketing.
Research is the only tool an organization
has to keep in contact with its external
MR
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operating environment
Examples
What are the customer needs and how are they
changing? How to meet these changing needs?
What do the customers think about existing
products or services? What more are they
looking at?
What are the competitors doing to retain
customers in this environment? Are their
strategies exceeding or influencing yours? What
should you do to be more competitive?
How are macro and micro environmental factors
influencing your organisation? How will you
react to this environment?
Reading the results of a political opinion poll in
the media?
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A report on opportunities for new markets being
Definition of Marketing
Research
AMA:
“Marketing Research is the systematic and objective
identification, collection, analysis, dissemination and
use of information for the purpose of improving
decision making related to the identification and
solution of problems and opportunities in Marketing”
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Marketing Research
The American Marketing Association (AMA)
stated:
Marketing research is the function that links the
consumer, customer, and public to the marketer
through information.
Information used to identify and define marketing
opportunities and problems; generate, refine, and
evaluate marketing actions; monitor marketing
performance; and improve understanding of marketing
as a process.
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Marketing Research
According to ESOMAR (originally the European
Society for Opinion and Market Research), a global
membership organisation for research firms and
practitioners explained:
Market research, which includes social and opinion
research, is the systematic gathering and interpretation
of information about individuals or organisations using
the statistical and analytical methods and techniques of
the applied sciences to gain insight or support decision
making.
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So,
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.
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NEED FOR MARKETING RESEARCH
To undertake marketing effectively
Changes in technology
Changes in consumer tastes
Market demand
Changes in economic conditions
Distribution channels
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Scope of Marketing Research
Product Management: One of the major areas of marketing
research is to manage the current products and new products.
Competitive Intelligence – To understand the competitive
product strategy.
Prelaunch strategy for new products- In depth analysis of
target market includes customer needs and wants and
customer satisfaction.
Test Marketing – To monitor the performance of the brand by
launching in a select area and then taking it across the
country. In other words it is a small-scale product launch used
to determine the likely acceptance of the product when it is
introduced into a wider market.
Concept testing - to test the acceptance of a concept by
target consumers. Concept testing is defined as a research
method that involves asking customers questions about
your concepts and ideas for a product or service before
actually launching it.
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Scope of Marketing Research
Sales analysis: Marketing research is used
to study the sales trend and make suitable
strategies when required. It is used to
Assess market potential
Estimation of demand for a product
Market share estimation
Study seasonal variation for a product
Market segmentation studies
Estimate size of the market
Need analysis to find out where the product fits in
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Scope of Marketing Research
Corporate Research: Marketing
Research is used to analyse the
corporate effectiveness.
Some examples are:
Assessing the image of the company
Knowledge of the company activities
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Scope of Marketing Research
Advertising Research: Advertising is
an arena in which Marketing Research is
extensively used. Some scope are:
Readership feedbacks – Mainly carried out for
newspapers and magazines
Advertising Recall – To assess the recall of
television or other advertising and thereby
assess its effectiveness.
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Nature of MR
1. Functions of MR: Collect and analysis the data.
[Link] concept.
3. Important for New Product Development
4. Market Orientation: New Product Launch in Market
[Link] Process
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Classification of Research
A. Problem Identification Research:
[Link] Potential Research
2. Market Share Research
[Link] Research
4. Market Characteristics Research
5. Sales Analysis Research
6. Forecasting Research
7. Business Trends Research
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Classification of Research
Problem solution Research:
1. Segmentation Research
2. Product Research
3. Pricing Research
4. Promotion Research
5. Distribution Research
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