Académique Documents
Professionnel Documents
Culture Documents
Hemant Kombrabail
The term "Marketing Research" is composed of two words -"Marketing" and "Research".
Marketing
Marketing basically consists of spotting the needs of customers and meeting them in the best
possible manner through appropriate production and distribution activities.
The term marketing refers to buying and selling activities. Exchange/transfer of ownership is the
essence of marketing.
Research
Research means detailed/systematic/comprehensive study of a problem. .
Research is a process involving a series of steps to collect and analyze the information needed for
decision-making in the desired / specific field of inquiry. The term research can be applied to any
field of human activity.
Research means “studious enquiry" or "thorough, honest and impartial study conducted by trained
men using scientific methods". It means detailed study relating to a particular subject.
The term MR is used extensively in modern marketing management. It acts as a tool for accurate
decision making in marketing of goods and services. It is also useful for studying and solving
different marketing problems faced by business units. . Here, the details (information and data) of
the marketing problem are collected and studied, conclusions are drawn and
suggestions/recommendations are made to solve the problem quickly, correctly and
systematically. In MR/ marketing problem is studied in depth by collecting and analyzing all
relevant information and solutions are suggested to solve the problem relating to consumers,
product, market competition, sales promotion and so on.
1
TYBMS Prof. Hemant Kombrabail
(a) Marketing research is concerned with systematic gathering, recording and analyzing of
information: In MR, information that is relevant to the marketing problem is collected in a
systematic manner from all available sources. Thereafter, the same is tabulated and recorded for
systematic scrutiny. Such scrutiny will offer certain specific conclusions useful for solving the
marketing problem.
(c) Marketing research is a tool for solving marketing problems: MR is a means and not the end
in itself. It is a tool in the hands of management for identifying and analyzing marketing
problems. The purpose is to solve them correctly.
2
TYBMS Prof. Hemant Kombrabail
marketing problems and challenges. A marketing company faces new marketing problems
from time to time. For facing these problems marketing research activities need to be
conducted on a regular basis. A marketing company has to conduct MR regularly for its
survival & growth in the present dynamic marketing environment.
(2) Wide/comprehensive in scope and application: MR is wide in scope as it deals with all
aspects of marketing of goods and services. It is more than just collecting data on
marketing. Introduction of new products, identification of potential markets, selection of
appropriate selling techniques, study of market competition and consumer preferences,
introduction of suitable advertising strategy and sales promotion measures, are some areas
covered by MR. It plays a role in all the three phases of the management process in
marketing: planning, implementation and evaluation.
(3) Emphasizes on accurate data collection and critical analysis: In MR, required data
should be collected objectively and accurately. The data collected must be reliable. It
should be analyzed in a systematic manner. This will provide comprehensive picture of the
situation and possible solutions.
(4) Offers benefits to sponsoring company and consumers: MR is useful to the sponsoring
company. It raises the turnover and profit of the company. It also raises the competitive
capacity and creates goodwill in the market. It enables a company to introduce consumer-
oriented marketing policies. Consumers also get agreeable goods and more satisfaction
due to MR activities.
(5) Commercial equivalent of military intelligence: MR is the commercial intelligence
activity. It is similar to military intelligence where systematic study is made before taking
any military action. MR acts as the intelligence tool of marketing management.
(6) Tool for managerial decisions: MR acts as a tool in the hands of management for
identifying and analyzing marketing problems and finding out solutions to them. It is an
aid to decision-making. It suggests possible solutions for the consideration and selection
by managers. MR is an aid to judgment and never a substitute for it.
(7) Applied type of research: MR is applied knowledge. It is also called 'decisional research
as it provides specific alternative solutions to deal with a specific marketing problem. It
studies specific marketing problem and suggests alternative solutions and possible
outcome of each alternative. In addition, it is both science and an art. MR is also becoming
highly professional activity.
(8) Reduces the gap between the producers and consumers: MR is an essential supplement
of modern competitive marketing. It is useful for understanding the needs and
expectations of consumers. It reduces the gap between producers and consumers and
adjusts the marketing activities to suit the needs of consumers.
(9) Not an exact science: MR is both science and an art. It collects information and studies
marketing problem in a scientific manner. The information collected is also applied to real
lire problem. However, MR is not an exact science. It only suggests possible solutions and
not the exact solution to marketing manager for consideration and selection. At present,
MR is treated as a professional activity. We have professional agencies (MR agencies or
advertising agencies) dealing with the marketing problems of their clients on commission
basis.
(10)Use of different methods: MR can be conducted by using different methods. Data can be
collected through survey or by other methods like observation method or experimentation
3
TYBMS Prof. Hemant Kombrabail
method. Even computers and internet are used for data collection. The researcher has to
decide the method that is suitable for the conduct of research project. This selection is
important as the use of unsuitable methods affect the quality of research work.
(11)Dynamic character: MR is dynamic in nature. Its scope is fast expanding along with the
new developments in the field of marketing. This is natural as MR is essentially for dealing
with new problems and challenges in the field of marketing. In addition, developments in
other subjects such as economics, statistics, computer science, sociology, psychology,
cultural anthropology and behavioral sciences also bring corresponding changes in the field
of MR. New methods, new techniques, etc., are used while conducting the research
activities. This suggests that MR is a dynamic and progressive subject with new
developments taking place regularly.
(12)Closely connected with marketing information system: Both the concepts are
interrelated. In fact, MR is one component of MIS. Both are useful for solving marketing
problems and for accurate and quick decision-making in the field of marketing.
(13)Phenomenal growth: MR has made a phenomenal growth since its inception. It has
become an important tool in the hands of management (to solve marketing problems) along
with the advent of consumer-oriented philosophy in modern business. The increasing
research budgets of companies are the indicators of its tremendous growth in recent years.
4
TYBMS Prof. Hemant Kombrabail
Marketing research has received attention and importance along with the growth of highly
competitive consumer-oriented marketing philosophy. Research activities in different aspects of
marketing are necessary and useful in such competitive and flexible marketing environment.
Large companies marketing consumer items noted the growing need of MR activities in the
5
TYBMS Prof. Hemant Kombrabail
MR activity (as we understand today) is comparatively new in the field of marketing. This activity
probably began around 1950s (Modern era of marketing research) and attracted the attention of
companies interested in marketing their products in the national and global markets. However, the
concept of MR got firm roots in the marketing activity after 1910. First time the marketing
research techniques were used by newspapers to predict the election results. However, during the
second decade of 20th century, marketing research emerged as a valuable management tool to
solve marketing problems. In the developed countries, marketing research activity is conducted on
scientific lines. Even in India, large manufacturing companies treat marketing research as an
essential supplement of planning and decision-making in the marketing field. It is treated as an
indispensable tool for profitable and consumer-oriented marketing. The popularity of MR
increased after 1960 due to the introduction of computers in data collection and analysis. In the
early period, marketing research activities were confined to market studies only but in 1950s
research relating to marketing activities was broadened to include all managerial aspects-price,
produce place and promotion. In late 1950's motivational and psychological techniques were
introduced to generate more information on consumers.
Several factors have contributed to the growing importance of marketing research. For example,
due to large-scale production, producers could not have direct contact with the consumers. This
created many problems before producers. For solving all such problems developed due to the gap
between producers and consumer and marketing research activities prove to be useful.
Secondly, the shifting from sellers’ market to buyers' market made it necessary to have better
understanding about consumer net-expectations. For this, marketing research proved to be useful.
Thirdly, the introduction of computers has contributed to the growth of marketing research
activity.
Finally, the scope of marketing has widened due to population growth and development of rural
markets. MR proved to be useful for dealing with the problems created by national and global
markets. In brief, growing importance of marketing research in the present marketing system is
the net result of various factors and forces available in the present marketing system. At present,
MR activities are undertaken by marketing companies on their own. In addition, marketing
research consultants and agencies provide expert advice to companies on general and specific
marketing problems of their clients.
6
TYBMS Prof. Hemant Kombrabail
consumers through various sales promotion techniques. Here, MR offers helping hand to
companies. It offers suggestions for survival under global competitive environment. In brief, the
importance/relevance of MR is fast growing along with the globalization of business. It is a must
for survival and growth under globalization. Current marketing scenario is different as compared
to traditional one. There is a new trend towards liberalization and globalization. Markets
(domestic as well as foreign) are becoming highly competition. New companies and new products
are entering in the markets. Survival is difficult under the present marketing environment. Here,
MR offers various services. It is, now, a professional activity with new developments in regard to
scope/coverage and techniques. In brief, MR has great relevance in the current marketing scenario
in India as well as in all countries- developed and developing of the world. MR has enormous
capacity to help and guide marketing companies in regard to their marketing problems and
challenges.
7
TYBMS Prof. Hemant Kombrabail
It also gives him guidance as regards price fixation and sales promotion techniques that will
be useful for the future period. This function of marketing research is closely related to other
functions that it performs. These functions facilitate reasonably correct decision-making by
marketing managers.
MR functions provide feedback (information and guidance) to marketing managers and improve
the quality of their decision-making. This practice is certainly safer as compared to decision-
making on the basis of past experience or intuition. When reality is complex and many facts are
not detectable, intuition is not adequate for decision-making. Similarly, experience is useful but
decisions on experience alone may not be accurate.
Large companies and professional executives prefer to resort to marketing research than
depending on experience. This is because information available is based on real data and is more
reliable/ dependable. This facilitates correct decision-making. Thus, marketing executives should
prefer decisions on the basis of information supplied through marketing research. Such decisions
are likely to be more accurate as they are based on actual market situation.
The different functions of marketing research are supplementary in character. These functions
enable a manufacturer to keep close touch with the marketing situation and enable him to make
suitable changes in his marketing policies and programmers. They also suggest the role marketing
research activity in modern competitive and consumer oriented marketing. Marketing research
functions certainly improve the quality of decision-making by marketing managers.
8
TYBMS Prof. Hemant Kombrabail
adverse' marketing situation boldly. It acts as an insurance against possible changes in market
environment.
6. Facilitates selection and training of sales force: Marketing research is useful for the
selection and training of staff in the sales organization. It also suggests the incentives that
should be offered for motivation of employees concerned with marketing.
7. Promotes business activities: Marketing research enables a business unit to grow/expand its
activities. It creates goodwill in the market and also enables a business unit to earn high profits
through consumer-oriented marketing policies and programmers.
8. Facilitates appraisal of marketing policies: Research activities enable business executives
to have an appraisal of the present marketing policies in the light of findings of research work.
Suitable adjustments in the policies are also possible as per the suggestions made by the
researchers.
9. Suggests new marketing opportunities: MR suggests new marketing opportunities and the
manner in which they can be exploited fully. It identifies emerging market opportunities.
10. Facilitates inventory study: Marketing research is useful for the evaluation of company’s
inventory policies and also for the introduction of more efficient ways of managing
inventories including finished goods and raw materials.
11. Provides marketing information: MR provides information on various aspects of marketing.
It suggests relative strengths and weaknesses of the company. On the basis of such
information, marketing executives find it easy to frame policies for the future period. MR
provides information/ guidance and alternative solutions to current marketing problems.
12. Suggests appropriate distribution channels: MR can be used to study the effectiveness of
existing channels of distribution and the need of making suitable changes in the distribution
system.
13. Provides information on product acceptance: Marketing research helps in knowing the
probability of acceptance of the product in its present form. It is also useful for the
introduction of modifications in the existing product line of a firm.
14. Creates progressive outlook: MR generates a progressive and dynamic outlook throughout
the business organization. It promotes systematic thinking and a sense of professionalization
within the company. It also creates enthusiasm among marketing executives. This brings
success and stability to the whole business unit
15. Has wider social significance: MR is of paramount importance from the social angle. It is the
means by which the ultimate consumer literally becomes king of the market place, with his
desires/ prejudices and every whim transmitted to the producer and distributor. In brief, MR
has wider social significance. It is useful to all parties involved in the process of marketing.
Marketing research need not be treated as a fad. It is one of those fundamental tools that today’s
marketing manager needs to keep sharpened all the time so that he might be-m a position to
minimize the business or marketing risk.
9
TYBMS Prof. Hemant Kombrabail
(1) Marketing research offers suggestions and not decisions: Marketing research is not a
substitute for decision-making process. It only offers possible suggestions/solutions to
marketing problems. It actually acts as a tool that facilitates decision-making process. It
guides marketing managers in taking balanced, result-oriented and rational decisions. The
suggestions offered by marketing researchers are usually possible/probable solutions but not
the exact solutions.
MR offers predictions but they are not necessarily accurate or perfect. Such predictions should
be taken in the right spirit by the management. It offers information and guidance to
marketing managers but not the final decisions, which are to be taken by managers
themselves.
MR does not provide readymade solutions to marketing problems. It only provides indicators.
It may not provide conclusive information on marketing problems. The marketing managers
have to use available information properly and take appropriate marketing decisions.
The effectiveness of MR depends on the skill of the decision-maker. For this/ various
marketing forces need careful consideration. However all such forces are not covered by
research project undertaken. MR aids managerial decision-making but it cannot replace
judgment and experience of marketing executives/managers.
(2) Marketing research cannot predict accurately: In MR, efforts are being made to estimate
or predict the possible future situation. For this/ certain research studies are undertaken.
However, the results/ conclusions arrived at may not be complete, perfect or accurate. They
predict possible tendencies but not certainties. Future is always uncertain and exact prediction
about the future is just not possible through marketing research. This is because market
environment is ever changing consumer behavior is difficult to estimate correctly and reliable
data for research purpose may not be available. As a result, the decisions taken and policies
framed on the basis of such research studies may not be accurate and useful for solving
current marketing problems.
(3) MR conclusions are not always dependable: There are many who are skeptics of MR. Their
criticism is that MR conclusions are not dependable. There are examples where the research
failed to deliver desired results or a product failed even when the research had shown
promising market demand and consumer support. The classical example is that of Coke. Its
MR showed that 68% customers in US liked the taste of the new formula developed by the
Coca-Cola Corporation. However, the New Coke failed and in less than six months of its
launch, the Coke management had to re-launch old Coke under the brand name Coke Classic.
However, this failure of MR was mainly due to conventional approach of researchers.
10
TYBMS Prof. Hemant Kombrabail
(4) Not an exact science: Since marketing research plates to consumers, it cannot be accepted as
an exact science. Both quantifiable and non-quantifiable factors have to be assessed with the
help of various techniques available to formulate marketing policies that will help to achieve
maximum sales. The technical part of marketing research comes into operation particularly
while collecting, analyzing, interpreting facts and figures. No amount of sophistication makes
the subject an exact science. Because, as stated earlier, it concerns primarily the consumer as a
human being Study of human behavior precludes absolute mathematical accuracy Probable
trends, at the most can be indicated within predetermined limits. This sets a basic limitation to
marketing research. At the same time, it necessitates a creative and skilled approach to the
conduct of research. In this way, marketing research can contribute immensely to decision-
making in a dynamic market. For accurate judgment, the marketer must be fully aware of the
nature of limitations of marketing research.
(5) Time lag in presentation and implementation: There are other constraints as well that make
for qualified utility of marketing research in decision-making. For example, there is the
limitation of time. Collection of data, their checking as to accuracy and analysis and
presentation often involve considerable time. The formulation of policies and their
implementation as also their subsequent evaluation, which are a necessary follow-up, also take
time. People's tastes and preferences are subject to frequent changes. It is, therefore necessary,
keeping in mind the scope and nature of marketing research, that the projects should be
completed in time to ensure their utility. In this process, at times, as a compromise some
accuracy may have to be sacrificed, but the degree of it can be decided in relation to the
specific circumstances.
(6) Limitations of personnel: Another constraint that is experienced pertains to personnel and its
quality. Trained, well-equipped and well-directed research personnel can improve the quality
and utility of marketing research. In the absence of this, research is likely to be costly and
unreliable. Correct and complete information has to be collected from the respondents
tactfully. The interviewer has to be reasonably aware of the psychological make-up of the
persons that are being interviewed and should be able to analyze their thoughts and reactions.
Apart from this, interviewers may have their own failings and weaknesses. Hence the
training interviewers and investigators is a must. These limitations and constraints can be
overcome or at least their impact can be minimized. To the extent a market researcher is
successful in his task, the value of the findings can be improved. What is most important is
that reliable data should be available on the basis of which production and marketing plans
and programmers can be formulated with a fair degree of accuracy. It is better to be certain
about 50 percent reliable information than do a guesswork, which has more chances of going
wrong.
(7) Difficult to ascribe results: It is also difficult to ascribe results as a direct consequence of
market research. The rupee value received by a firm from marketing research, therefore,
cannot be measured accurately and completely. This has contributed to an element of
hesitation on the part of organizations to undertake marketing research in many cases,
especially in the developing countries.
11
TYBMS Prof. Hemant Kombrabail
development of their economies, the marketing conditions are changing in favor of buyers and
the need for and the value of marketing research are being increasingly recognized by the
enterprises in these countries also. With the communication between the purchaser and the
manufacturer becoming indirect, meagre and unsatisfactory and as a result of competition, the
manufacturer is increasingly becoming anxious to know the magnitude of his sales to
consumers, where they are being effected, the kinds of people buying his goods and their
reactions and responses. All this information is essential to the manufacturer, as this decides
ultimately whether he will survive in the market or not. He can improve his product and
marketing strategy to secure consumer satisfaction and logically profit from these changes.
(9) Marketing research cannot study all marketing problems: Marketing research is rather
very wide in scope. However, it cannot study all marketing problems particularly where it is
difficult to collect relevant data. Similarly, research study is not possible where value
judgments are involved. Even it is not useful for dealing with urgent marketing problems
where quick decisions and follow-up actions are necessary. Thus, all marketing problems are
not researchable and all research problems are not answerable.
MR cannot provide answer to each and every marketing problem. A problem like Profitability
Vs. Consumer satisfaction is difficult to answer with complete accuracy. The present
marketing research techniques have certain limitations. MR fails to offer guidance to
managers while dealing with specific problems. Thus, marketing research cannot study all
marketing problems and do not offer ready-made solutions to all marketing problems faced by
a business unit. It is also argued that very many times, marketing research tends to be
fragmentary in its approach. As a result, it becomes difficult to have an overall perspective in
which a marketing problem is to be viewed and studied.
Marketing executives may also feel that researchers suggest solutions that are academic in
character and lack practical utility. They use guidance and suggestions given by the researched
only when they are compelled to do so. There is absence of meaningful dialogue between the
marketing managers and the marketing research team. As a result/ marketing researchers get
divorced from the main stream of marketing. Such attitude of indifference on the part of
researchers and marketing executives makes marketing research meaningless.
12
TYBMS Prof. Hemant Kombrabail
desirable to conduct research work in a haphazard manner. Naturally, the research work takes
longer period for completion and the findings when available may prove to be old and outdated.
Even data collected very soon become old or historical due to fast changing market
environment. As a result, research findings based on them become irrelevant in the changed
situation.
MR is not useful for dealing with urgent marketing problems. Moreover, research work cannot
be conducted overnight and marketing decisions cannot be postponed till the research work is
completed. Thus, urgent/pressing marketing decisions arc usually taken without the support of
research work. In brief, lengthy and time consuming aspect of marketing research reduces its
practical utility and is rightly treated as one limitation of marketing research technique.
(12)Non-availability of qualified staff: For scientific MR, professional marketing researchers with
proper qualifications, training and experience are necessary. Research work is likely to be
incomplete/ unreliable in the absence of such expert staff. Companies find it difficult to have the
services of such expert staff. They find it difficult to pay high salary to professional consultants.
Research activities are conducted in limited areas due to non-availability of properly qualified
staff. Such staff includes statisticians, psychologists, sociologists, economists and computer
experts.
(13)Complexity of the subject: Marketing research fails to give complete and full proof solutions
to management. This is because marketing research itself is not an exact science. It is concerned
with the study of human beings and human behavior is always difficult to predict, errors in
drawing conclusions are possible due to this human element in marketing research activities.
Errors in the research studies are also possible due to uncertainty of human behavior and also
because of non-availability of reliable data.
(16)Passive nature: MR is passive by its nature. Sometimes, it becomes too superficial and faulty
in business management. Man) conclusions drawn from the marketing research activities may
be imaginary or not based on realities. Its use and effectiveness largely depend on the ability of
marketing executives to get the most promising results out of it. Marketing research by itself
may not give any benefit. It only shows the way to executives in the decision-making process.
13
TYBMS Prof. Hemant Kombrabail
marketing environment is not given adequate attention while suggesting the solution. Such
fragmentary approach is not useful for solving marketing problems in an integrated manner.
(18)Absence of effective communication: The research activity will be useful and result-oriented
only when there is meaningful dialogue between the marketing management and marketing
research team. However, such dialogue is ineffective in many organizations. This make' research
activity ineffective.
Inspite of the limitations noted above, MR is necessary and useful in marketing management.
Marketing research is a subject with wide scope. Broadly speaking, it is concerned with the
marketing activities of an enterprise. All activities of a seller-to market his products to consumers
are covered by such research. Marketing research is primarily concerned with "4 Ps" of
marketing mix. These are: Product, Price, Place and Promotion. The scope of marketing
research is comprehensive and is actually widening in recent years. Products research, sales
research, pricing research, brand and package research, promotion research and customer research
arc the usual areas covered by MR. In addition, specialized research activities such as motivation
research, consumer satisfaction research, etc. are also undertaken to meet the specific needs of a
business unit. Additional areas and new methods of conducting research activities are regularly
added within the scope of MR.
In 1973, the American Marketing Association noted that marketing research activities were
undertaken on 36 different topics of 1322 companies interviewed. Even in India, large companies
conduct research activities on many marketing problems. Finally, it may be pointed out that
marketing research is essentially for solving the marketing problems of a business unit. Naturally,
research activities will be adjusted accordingly. This suggests that there is no limit to the areas
covered by marketing research. Everything connected with marketing comes within the scope of
MR.. The branches of MR are as explained below:
1. Product Research:
Product research relates to products that are to be marketed to consumers. It is useful for
introducing new product that will be agreeable to consumers. Product research relates to
various aspects such as design, development and introduction of new products, testing of
existing products, product modification studies and so on.
2. Packaging Research:
Packaging research is a part of product research and is important for making the products
attractive and agreeable to consumers. Packaging is now treated as a tool for sales promotion.
It attracts the attention of consumers and induces them to purchase products. Constant changes
in the package design are-required for sales promotion. For innovation in the package design/
packaging research is necessary. Packaging research is now treated as an independent branch
of marketing research. Such research is conducted in order to know the impact of packaging.
Branding and packaging normally go together and hence brand research is treated as a part
and parcel of packaging research.
14
TYBMS Prof. Hemant Kombrabail
3. Pricing Research:
Pricing research relates to pricing of the product It relates to analysis of pricing policies and
strategies, studies market price trends, fixation of market prices, studies relating to prices
charged by competitors, studies relating to future price trends, price incentives for sales
promotion and provision of price discount and other price concessions to dealers and
consumers.
4. Market Research:
Market research proper relates to analysis of consumer markets, assessment of market trends,
forecasting of business conditions, setting of sales territories and sales quota, sale potentials
studies, studies of wholesale marketing, demography descriptions of customers, market
competition studies, sale-forecasting, estimating demand for new products, analyzing relative
profitability of sales territories and monitoring competitive-marketing activities.
5. Sales Research:
Sales research relates to studies of sales outlets, sales territories and their revision, trends in
sales, sales forecasting, effectiveness of sales force, sales policies and sales performance and
so on.
7. Consumer Research:
It relates to finding out consumers' needs and preference, consumers' purchasing intentions,
consumers' choice of brands, trends in consumer preferences and purchasing patterns
8. Policy Research:
Policy research activity is connected with the evaluation of effectiveness of marketing
policies, sales policies, distribution policies, pricing policies, inventory policies and so on.
Necessary changes in such policies are possible through intensive policy research studies.
9. Advertising Research:
It relates to evaluation of advertising effectiveness, analyzing competitive advertising and
selection of appropriate advertising media.
15
TYBMS Prof. Hemant Kombrabail
16
TYBMS Prof. Hemant Kombrabail
a. Concept generation
There are two types of concept generation research. They are:
1. Need identification. The emphasis In need research is on identifying unfilled needs in the
market. Marketing research can identify needs in various ways. Some are qualitative and others,
such as segmentation studies can be quantitative. Following are some examples:
i. Perceptual maps, in which products are positioned along the dimensions by which users
perceive and evaluate, can suggest gaps into which new products might fit.
Multidimensional scaling is used to generate these perception gaps.
ii. Social and environment trends can be analyzed.
iii. An approach termed benefit structure analysis has product users identify the benefits desired
and the extent to which the product delivers those benefits, for specific applications. The
result is an identification of benefits sought that current product do not deliver.
iv. Lead user analysis the approach in which instead of just asking users what they have done,
their solutions are collected more formally. Lead users are positioned to benefit
significantly by solving problems associated with these needs. Once a lead user is
identified, the concepts that company or person generates are tested.
2. Concept identification. During the new product development process there is usually a point
where a concept is formed but there is no tangible usable product that can be tested. The concept
should be defined well enough so that it is communicable. There may be simply a verbal
description, or there may be rough ideas for a name, a package, or an advertisement approach.
The role of marketing research at this stage is to determine if the concept warrants further
development and to provide guidance on how it might be improved and refined
b. Product Evaluation and Development
Product evaluation and development, or product testing, is very similar to concept testing, in
terms of both the objectives and the techniques. The aim is still to predict market response to
determine whether or not the product should be carried forward.
1 Use testing - The simplest form of use testing gives users the product and after a reasonable
amount of time asks their reactions their intentions to buy it.
2. Predicting trial -Trial levels (the percentage of a sample of consumers who had purchased the
product at least once within 12 months after launch) were predicted on the basis of three
variables:
Product class penetration (PCP)
Promotional expenditure
Distribution of the product
3. Pretest marketing - Two approaches are used to predict the new brand's market share.
The first one is based on preference judgments. The preference data are used to predict the
proportion of purchases of the new brand that respondents will make given that the new brand
is in their response set.
The second approach involves estimating trial and repeat purchase levels based on the
respondent's purchase decisions and intentions-to-buy judgments.
c. Test marketing
Test marketing allows the researcher to test the impact of the total marketing program, with all its
Interdependencies, in a market context as opposed to the artificial, context associated with the
concept and product tests that have been discussed. Test marketing has two primary functions.
The first is to gain information and experience with the marketing program before making a
total commitment to it.
17
TYBMS Prof. Hemant Kombrabail
The second is to predict the program's outcome when it is applied to the total
market There are really two types of test markets:
1. Sell-in test markets are cities in which the product is sold just as it would be in a national
launch. In particular the product has to gain distribution space.
2. Controlled distribution scanner markets are cities for which distribution is prearranged and the
purchase of a panel of customers are monitored using scanner data.
eariy stages of the product life cycle are sacrificed in the expectation that higher
volumes in later periods will generate sufficiently greater promts to result in overall profit
for the product over its life
III. DISTRIBUTION RESEARCH
Traditionally, the distribution decisions in marketing strategy involve the number and location of
sales persons, retail outlets, warehouses and the size of discount to be offered The discount to be
offered to the members in the channel of distribution usually is determined by what is being
offered by existing or similar products and also whether the firm wants to follow; a "push1 or a
"pull” strategy Marketing research, however, plays an important role in the number and location
in decisions about numbers and locations
a. Warehouse and Retail Location Research
The essential questions to be answered before a location decision is made are "What costs and
delivery times would result if we choose one location over another?"
Simulation of scenarios is used to answer these questions. The simulation can be relatively simple
paper-and-pencil exercise for the location of 3 single warehouse in a limited geographic area. or it
can be a complex, computerized simulation of a warehousing system for a regional or national
market
i. Center of gravity simulation - The center for gravity method of simulation is used to locate
a single warehouse or retail site In this method, the approximate location that will
minimize the distance to customers, weighted by the quantities purchased is determined
The more symmetry there is in customer locations and weights the more nearly the initial
calculation approximates the optimal location The location indicated by the first
calculation can be checked to be determine if it is optimal (or near optimal) by using a
"confirming” procedure. If it is not optimal, successive calculations can be made as
necessary to “home in" on the best location
ii. Computerized simulation models - The concept involved m simulations for this purpose is
quite simple Data that describes the customer characteristics (location of plants, potential
warehouse and retail sites) and distribution costs (costs per mile by volume shipped, fixed
and variable costs of operating each warehouse the effect of shipping delays on and
variable costs of operating each warehouse, the effect of shipping delays on customer
demand) are generated and input into the computer The computer is programmed to
simulate various combinations of numbers and locations of warehouses and to indicate
which one(s) gives the lowest total operating cost Effective results have been achieved by
using computer simulations to design distribution systems
iii. Trade area analysis - Formal models have been developed that can be used to predict the
trading area of a given shopping center or retail outlet based on relative size travel time
and image A variety of other techniques can be used to establish trading areas. An analysis
of the addresses of the credit card customers or license plates of the cars (by plotting the
addresses of the car owners) can provide a useful estimate of the trading area. Check-
clearance data can be used to supplement this information. The best, but also the most
18
TYBMS Prof. Hemant Kombrabail
expensive way of establishing trading area bound Aries is to conduct surveys to determine
them
iv. Outlet location research. - Individual companies and, more commonly, chains, financial
institutions with multiple outlets, and franchise operations must decide on the physical
location of their outlets). Three general methods involves plotting the area surrounding the
potential site in terms of residential neighborhood, income levels, and competitive stores.
Regression models have been used for location studies for a variety of retail outlets,
including banks, grocery stores, liquor stores, chain stores and hotels. Data for building
the model and for evaluating new potential locations are obtained through secondary data
analysis and surveys.
b. Number and location of Sales Representatives
How many sales representatives should be in a given territory? There are three general research
methods for answering this question.
The first, the sales effort approach, is applicable when the product line is first introduced and
there is no operating history to provide sales data.
The second involves the statistical analysis ofsales data and can be used after the sales
program is under way.
The third involves a field experiment and is also applicable only afterthe sales program has
begun.
a) Advertisement recognition
b) Recall of the commercial and its contents
c) The measure of commercial persuasion and the impact on purchase behavior.
• Purchase behavior
- Coupon stimulating purchasing
- Split-cables tests. Information Resources Inc's (IRI) Behavior Scan is one of several split-cable
testing operations. Behavior Scan monitors the purchases of panel members as well as in-store
information such s special prices, features and displays.
• Tracking studies
19
TYBMS Prof. Hemant Kombrabail
When a campaign is running, its impact often is monitored via a tracking study Periodic sampling
of the target audience provide a time trend of measures of interest. The purpose is to evaluate and
reassess the advertising campaign, and perhaps also to understand why it is or is networking.
Among the measures that often are traced are advertisement awareness, awareness of elements of
the advertisement, brand awareness, beliefs about brand attributes, brand image, occasions of use,
and brand preference. Of particular interest is, knowing how the campaign is affecting the brand,
as opposed to how the advertisement is communicating the message.
• Diagnostics testing
A whole category of advertising research methods is designed primarily not to test the impact of a
total ad but rather to help creative people understand how the parts of the ad contribute to its
impact. Which are weak and how do they interact? Most of these approaches can be applied to
mock-ups of proposed ads as well as finished ads.
• Copy test validity
This test refers to the ability to predict advertising response.
* Budget decision
Arriving at analytical research-based judgments as to the optima! advertising budget Is
surprisingly difficult. However, there are research inputs that can be helpful. Tracking studies that
show advertising is either surpassing or failing to reach communication objectives can suggest
that the budget should be either reduced or increased.
• Media research
In evaluating a particular media alternative, it is necessary to know how many advertising
exposures it will deliver and what will be the characteristics of the audience. A first cut of the
vehicle's value is the cost per thousand (circulation), the advertisement insertion cost divided by
the size of the audience.
2. Sales Promotion Research
There are three major types of sales promotion: consumer promotion, retailer promotion and trade
promotions.
In consumer promotion, manufacturers offer promotions directly to consumers, whereas retail
promotions involve promotions by retailers to consumers. Trade promotions involve
manufacturers offering promotions to retailers or other trade entities. Trade entities can also
promote to each other. For ex ample, a distributor can offer a steep temporary price cut to retailers
in order to sell excess inventory. It is called trade promotions, since the recipient of the promotion
is a marketing intermediary.
Sometimes several manufacturers or several retailers combine in one promotion. These are called
cooperative promotions or promotion partnerships.
20
TYBMS Prof. Hemant Kombrabail
Brand equity is defined as a set of assets and liabilities linked to a brand that add to or subtract
from the value of a product or service to a company and/ or its customers. The assets or liabilities
that underlie brand equity must be linked to the name and/or symbol of the brand. The assets and
liabilities on which brand equity is based will differ from context to context. However, they can
be usefully grouped into five categories:
a) Brand loyalty
b) Name awareness
c) Perceived quality
d) Brand association
e) Other proprietary brand assets: patents, trademarks, channel relationships etc.
3. Customer satisfaction.
The measurement of customer satisfaction and its link to product/service attributes is the vehicle
for developing a market-driven quality approach This approach requires a sequential research
design that uses the results from each research phase to build and enhance the value of subsequent
efforts. During this process, it is imperative to study customers who were lost, to determine why
they left This issue must be addressed early in the system design The steps involved in customer
satisfaction is
a) Define goals and how information will be used
b) Discover what is really important to customers and employees
c) Measure critical needs
d) Act on the information
e) Measure performance overtime
f) Issues in questionnaire design and scaling in satisfaction research
1. Database marketing
A database is a customer list to which has been added information about the characteristics and
the transactions of these customers. Businesses use it to cultivate customers - as they seek new
customers.
Need
A database provides the means for research to support decisions. It enables profiling of customers
by searching for prospects who are similar to existing customers. It provides the means for
implementation of profitable programs of repeat business and cross-selling. It assists in marketing
planning and forecasting. Further a database can:
• Match products or services to customers' wants and needs
21
TYBMS Prof. Hemant Kombrabail
• Help select new lists or use new media that ft the profile of existing customers.
• Maximize personalization of all offers to each customer.
• Provide for on going interaction with customers and prospects.
• Pinpoint ideal timing and frequently for promotions
• Measure response and be accountable for results
• Help create the offers most likely to elicit responses from customers
• Help achieve a unique selling proposition (USP), targeted to appeal to your customers
• Integrate direct-response communication with other forms of advertising
• Demonstrate that customers are valuable assets.
Types of database
1. Active customers
2. Inactive customers
3. Inquiries
22
TYBMS Prof. Hemant Kombrabail
behavior are not available. This affects the conclusions drawn in the research work. General
conclusions about human behavior can be given. However, such rough estimates are not
completely scientific. In short, complexity of human behavior puts limitations on MR and
makes it less scientific.
(3) Human beings react differently under test conditions: MR is les^ scientific because human
beings react differently under different conditions or while testing. The human tendency is to
keep the real causes/reactions secret when interviewed for a research purpose. This affects the
quality of results of research project. Such results are not scientific to the fullest extent. It is
always difficult to collect reliable information from the persons selected for interview. It
equally difficult to verify the correctness of the information collected from them. This makes
MR less scientific.
(4) MR cannot be completely objective: MR cannot be completely objective as human beings
cannot be studied in complete isolation This is possible in laboratory work by physical
scientists, as they can shut off all outside influences during the period of experimentation
However an investigator in MR cannot be separated from the society. His attitudes and
interests are bound to affect research findings. This affects the conclusions drawn out of the
MR project.
(5) Human beings cannot be studied in isolation: In MR, it is not possible to study the behavior
of a consumer independently. It needs to be studied along with his personal interests, values,
attitudes and so on. This situation affects the behavior of the consumer and the findings of the
research work. The researcher has to conduct his study openly and has no control over the
external factors. As a result, the findings of marketing researcher are bound to be less
scientific.
(6) Dearth of reliable information: Information serves as the base of MR. The quality of
research work depends on the reliability of information collected. The information collected
in MR may not be accurate or complete. It is possible to draw only rough estimates/
conclusions from such information/data. This makes research conclusions less accurate and
reliable. Sometimes, even the attitude and approach of researchers, investigators, etc. may
make the research work less scientific.
23
TYBMS Prof. Hemant Kombrabail
This consumer orientation to MR is the result of modern concept of marketing, which is basically
different from the traditional concept of marketing. It is consumer-oriented and service-oriented.
It is societal in character. As a result, in the marketing research activities, special attention is now
given to consumers. All research activities are for making marketing useful, agreeable and
acceptable to consumers. This is what is described as consumer orientation of MR. Research
activities are now made pro-consumer rather than pro manufacturer or trader. Even research
techniques and methodologies are adjusted according.
The importance of consumer is now accepted not only in MR but also in all aspects of business
management. In fact, consumer is the most important person in business. He is the king and
should be treated accordingly. All production and marketing activities are for meeting his needs
and also for raising his satisfaction and welfare. He is the cause and purpose of all business
activities. Finally, modern business is not profit-oriented but consumer oriented or service
oriented. All these arguments are equally applicable to MR. In other words, MR activities move
around the consumer and his satisfaction. He is the focus point in all research projects as MR is
essentially for adjusting the marketing activities as per the expectations of consumers. This clearly
suggests the importance of consumers in all MR activities.
Marketing research helps the management to be consumer-oriented in its policies and decisions.
The benefits of MR will not be available if consumer and his needs, conveniences, expectations,
etc. are not given due attention. This suggests that neglect of consumers in any type of research
activity is undesirable and even dangerous. The benefits of marketing research will be available
only when research activities are conducted after due regard to consumer who acts as the center of
all marketing activities. Information available from consumer research can be used as a
foundation for many important marketing decisions.
Finally, it may be noted that there is nothing wrong in making MR activities pro-consumer. In
fact, this trend exists since the early growth of marketing research activities. Consumer is
important in all marketing activities and the same rule is applicable to MR activities. Research
activities without due consideration to consumers may not give expected results. In fact, the
purpose of MR is to find out precisely what the consumer wants and how to make
marketing activities agreeable to consumers in all respects such as product, price, packaging,
promotion j and so on. In brief, MR as a subject has consumer-orientation in all its| aspects.
Consumer/Customer is the cause and purpose of all marketing research activities. How to make
consumers happy and satisfied is the| basic issue before the researchers. At present, all
manufacturing/, marketing companies spend huge money on marketing research. The purpose is
to make marketing activities consumer oriented.
24
TYBMS Prof. Hemant Kombrabail
This situation creates new problems before the manufacturers, which can be faced effectively
through MR as it acts as a feedback mechanism to ascertain first hand information, reactions,
etc. of consumers and middlemen. Marketing activities can be adjusted accordingly.
2. Wide gap between producers and consumers: Market research is needed as there is a wide
gap between producers and consumers in the present marketing system. Due to mass sc
production and distribution, direct (personal) contact between product and consumers is
practically lost. This creates information gap between producers and consumers. The
middlemen dominate the market] scene. Producers do not get dependable information as
regards nee expectations and reactions of consumers. They are unable to adjust the products,
packaging, prices, etc. as per the needs and requirements consumers.
The problems created due to information gap can be solved Q] through MR as it is possible to
establish contact with consumers a collect first hand information about their needs,
expectations, likes & dislikes, preferences and special features of their behavior. Thus
marketing research enables a manufacturer to make his marketing policies pro-consumers.
Effective communication with consumers is a possible through MR activities. Thus, MR is
needed for removing wide communication gap between producers and consumers.
Manufacturers are expected to know such qualitative & quantitative changes in the consumer
preferences and their consumption pattern. For achieving this objective, MR activities are
necessary and useful. It is possible to adjust production and marketing operations as per the
information supplied from consumer surveys and market surveys conducted under various MR
projects. In brief, MR is needed for the study of changes in the pattern of consumption and
corresponding adjustment in the marketing planning, policies and strategies.
Marketing research particularly consumer research gives valuable data relating to consumers. It
is possible to use such data fruitfully while framing marketing policies. Thus, marketing
decisions can be made pro-consumer through marketing research activities
25
TYBMS Prof. Hemant Kombrabail
.
5. Shift of competition from price to non-price factors: Cutthroat competition is unavoidable in
the present marketing field. Such competition may be due to various factors such as price,
quality, packaging, advertising and sales promotion techniques. Entry of new competitors
creates new problems in the marketing of goods and services. In addition, market competition
is no more restricted to price factor alone. There are other non-price factors such as packaging,
branding, after-sale service and advertising which create severe market competition. Every
producer has to find out the extent of such non-price competition and the manner in which he
can face it with confidence.
MR is needed as it offers guidance in this regard. A manufacturer can face market competition
even by using certain non-price factors. The shifting of competition from price to non-price
factors has made marketing of consumer goods more complicated and challenging. This
challenge can be faced with confidence by using certain measures suggested through marketing
research.
7. Problems in the distribution system: Modern distribution system is complex and costly. How
to market goods efficiently and economically is a basic issue in the present marketing system.
Modern production is now possible because of the use of advanced technology. However
efficient distribution is rather difficult. For this, it is necessary to identify new markets, new
consumers, new channels of distribute and new sales promotion techniques. For such
identification, MR needed.
The cost of marketing is fast increasing in modern marketing. The burden of rising marketing
cost is normally passed on to consumers. This creates adverse effects on marketing activities.
In brief, obstacles large scale distribution and rising distribution costs are two problems in the
present marketing system. These problems can be studied & solved through MR activities
relating to products, distribution channel consumers and so on. This suggests the growing need
of MR.
8. Recent developments in science and technology: Science and technology are making rapid
progress. In fact, the impact of such progress touches all aspects of commercial and industrial
activities. Me products are manufactured and brought in the market. Articles with good
demand become old and out-dated within a short period Consumers prefer new/novel articles
in place of old ones. Produce and distributors find it difficult to take decisions due to lack
knowledge about future market trends. Here, marketing research useful as it provides
information about future trends in the markets field and enables marketing managers to take
quick and corn marketing decisions. This suggests the need of marketing research.
9. Existence of large size enterprises: Modern manufacturing enterprises are large in size. Such
enterprises can work as viable units and make progress only when their products are made
26
TYBMS Prof. Hemant Kombrabail
popular with the consumers. Large-scale enterprises need distribution of their products on a
massive scale. Here, MR is useful. It helps the enterprises explore, identify and locate new
consumer markets. It suggests the ways and means for large-scale distribution of goods at the
national/global level. In brief, MR is needed as an essential element of large scale
manufacturing and marketing.
The factors noted above clearly suggest the growing need of MR in | the present consumer-
oriented marketing system. It is needed in order to reduce the risks and uncertainties in the
marketing activity. It supports 1 marketing managers while dealing with the marketing
problems. Marketing research is needed as it acts as a key factor in successful marketing of
goods and services.
Marketing management and marketing research are inter-related activities. In fact, marketing
research cannot exist as a watertight compartment nor has it any existence independent of
marketing management. It must be a part and parcel of the problem-solving process of marketing
management. MR activities in any organization must be directly related to the marketing
problems faced by that organization. This is natural as MR cannot be effective, if it is assigned
some portions of a marketing problem for exploration in a piecemeal manner. It must be supplied
with the full background required to study the whole problem in depth. This will enable the
researcher to provide reasonably accurate solution to the problems faced by the marketing
managers. Similarly, MR will be effective/purposeful, if the research activities are conducted in a
regular and continuous manner and also as per the specific needs of the marketing management.
This suggests that there should be effective integration in between marketing management and
marketing research. Both these activities should be effectively co-ordinated. This will ensure
efficient management of marketing activities of a company. There is no scope for any conflict in
between the two as such conflict is undesirable to the company itself. However, on many
27
TYBMS Prof. Hemant Kombrabail
occasions, differences of opinion and discord between research department and management are
visible Keane, John G has spelt out the conflicting points of view of the to management and
marketing researchers in the areas of research responsibility, research personnel, budget,
assignments, problem definition, research reporting and use of research.
MR will be effective/purposeful only when there is close c ordination between research and actual
management. Research activities must be necessarily relevant to the marketing problems. Both
(researchers and top-level management) should have a clear understanding and appreciation of
each other's position and role. However, in practice, conflicts are noticed between the top-level
management and the researchers. Such conflicts should be avoided.
(iii) Responsibility of top management for effective integration: The top management should
accept honestly that the researchers have a capacity to study marketing problems and offer
valuable suggestions for solving the marketing problems. In addition, adequate budget provision
and all necessary facilities should be provided to the researcher to investigate marketing problems
minutely and make suitable recommendations. The top management should keep meaningful
communication with the marketing researchers in a continuous manner. The bias attitude towards
them is certainly undesirable. Finally management should avoid too many layers of
communication between top management and researchers. It is also desirable to discuss the
recommendations of researchers with open mind. Such liberal outlook will make MR activities
useful to the marketing management.
The researchers should also adopt open and constructive approach towards the top-level
management. In the research project, attention should be given to the plans and priorities decided
by the top-level management. The researchers should continuously improve the research
methodology and see that their reports and recommendations are easily acceptable to the
management. Delay in the research work should be avoided as top-level management can
consider the recommendations if received in time as the nature of marketing problem changes in
the course of time.
0n some occasions, the management is not convinced about the utility of marketing research. This
may be due to past experience in regard to research activity undertaken. The other reasons for
unfavorable opinions about marketing research include delay in the completion of research work,
heavy expenditure involved, bulky and confusing report and finally recommendations made are
not convincing and practical. The result is that the management forms negative impression about
the very concept of marketing research. The company management fails to understand the
practical utility of research work. It feels that MR is an unnecessary activity and funds should not
be spent on the same. It is as good as waste of money as positive benefits may not available. Such
negative opinion formation is the result of previous experience of the firm. It is a type of criticism
of the researchers who failed to submit promising, result-oriented and practical research report. It
need not be treated as the criticism of marketing research activity itself. The adverse opinions of
companies on marketing research are undesirable and even dangerous to the future growth of MR
activity. Here the responsibility lies on the researchers. They have to conduct research work
honestly and also by taking keen interest in the proposed research project. As a result, the research
report and recommendations 11 be promising and easily acceptable by the management. The
marcher should prepare the outline of research project properly and place it before the
management in a convincing manner. As a result, the management will be convinced about the
utility of marketing research project and will be willing to spend money on the same. "Many a
times, management is not convinced about the utility of marketing research and discards it as an
28
TYBMS Prof. Hemant Kombrabail
unnecessary activity over which no funds should be spent." is possible when the research project
is not prepared and placed properly before the management for consideration and approval.
(iv) Responsibility of researchers for effective integration: The researchers should use their
skills, experience and knowledge while conducting the research activities. Finally, they should
maintain persuasive communication as inadequate/poor communication creates bias attitude on
the part of top-level management. As a result, the recommendations are rejected or not used in
actual practice. In addition, the superiority of the top-level management in the decision-making
process should also be honored. The approach should be to help the management in all possible
ways. Such positive/constructive approach on the part of researchers will enable them to make
purposeful contribution in the field of marketing management.
(v) Present Position: MR is now given more creative role as compared to the conventional role
where it was used just for studying buyer behavior or for the feasibility studies for new products
to be introduced in the market. MR until the mid-1980s, was considered a luxury, which only
multinationals could afford. However, all companies now feel the need of MR due to growing
competition and liberalization. Realizing the contribution that MR makes, more and more
companies in India are now turning to MR.
Marketing research is a useful tool available at the disposal of management. At all stages of
marketing cycle it can be used. On the other hand in certain quarters misunderstandings have
cropped in about each other. Many organizations feel that marketing research is not at all needed.
On the other hand, marketing researchers point out the lack of appreciation for their work by the
organization.
29
TYBMS Prof. Hemant Kombrabail
2. Through this, the changing tastes of the consumers could be identified and the firm can
suitably alter its production pattern or bring a new variety to meet in needs of the consumers.
3. By means of marketing research the type of competition that exists and the ability of the other
manufacturers could be identified.
4. It helps the sales manager to push activities further thereby to enrich the sales as well as to
find new markets and new customers.
5. It tells the management where the company stands in its industry
6. It tells management what the industry trends are & likely to be.
7. It is an essential tool in appraising and improving sales management effectiveness. Specific
activities in this area include measuring variations in territorial sales yield, market share, sales
effectiveness, measuring the effectiveness of individual salesmen and analysis of salesmen's
activities.
8. It is an essential tool in the development and introduction of new products.
9. Supplies data to be used in salesman's and territorial quotas planning.
10. Supplies the facts for fixing the budget.
11. Helps determine the advertising methods that should be used and the angle that should be
employed in the advertising copy.
12. Furnishes facts to convince dealers of the selling possibilities of given articles and to help them
to increase their sales.
13. Predicts the trend of business conditions in given industries and furnishes a basis for promotion
programs.
14. Ascertains the consumer's likes and dislikes.
15. Reports the methods used by the dealers, display, advertising and selling
16. Measures the stock in the dealer's hands.
17. Finds the dealer's reactions to given policies.
18. Furnishes data for fixing dealer's territories and quota.
19. Finds out and tabulates statistics in which the concern is particularly interested.
20. Keeps one informed about the developments in other industries, which may affect the business
of the firm.
21. Measures the purchasing capacity of a given territory.
22. Discovers new uses for the product.
23. Analyzes the cost data that are available in published form.
24. Studies the organization of the concern with a view to suggesting changes or improvements
The top-level management needs feedback on current marketing environment and the MR
department can provide this quickly. The feedback required in this regard can be provided in a
30
TYBMS Prof. Hemant Kombrabail
continuous manner by the research department which studies marketing problems of the company
in a regular and continuous manner. The research department is supposed to supply information to
the top-level management on the following aspects of marketing:
(1) Current business environment (more particularly marketing environment) faced by the
company and the changes likely to take place in the near future.
(2) Trends in consumer behavior, demographic information and consumer needs/expectations.
(3) Changes in consumer purchasing power and data on demand and supply position in the
market.
(4) Trends about market competition and marketing policies of major competitors of the company
and their marketing strategies.
(5) Availability of better/cheaper raw materials and technology for manufacturing superior quality
goods at lower costs.
(6) Feedback on the marketing performance of the company and the challenges that it is facing.
(7) Sales force requirement, recruitment and development.
(8) Marketing opportunities available (domestic and foreign) and the marketing challenges likely
to develop in the near future.
(9) Any other information that the top management is expected to know for correct marketing
decision-making and policy framing.
The top-level management can take reasonably correct decisions in the following marketing areas
with the help of updated feedback available from the marketing research department:
1. Deciding the long term marketing objectives and setting marketing plans, policies and
strategies to achieve marketing objectives.
2. Designing of product or modifications in the existing products.
3. Determining the product line and adjusting the products as per the needs and expectations of
consumers and allocation of resources among various products and marketing activities.
4. Improving the brand or package design, color, etc.
5. Fixing fair pricing of the product.
6. Fixing marketing strategies in order to face the competitors’ ever-changing market
environment.
7. Selecting suitable channels of distribution for large scale an economical marketing of
company's products.
8. Estimating sales i.e. sales forecasting for adjusting production and marketing activities of the
company.
9. Designing internal mechanism to monitor and evaluate performance of marketing department
and introduction of remedial measures, if required.
In brief, MR is the crucial analytical tool and provides management with vital strategic and
tactical information for decision-making. It guides management in the decision-making process.
However, the final decision is to be taken by the top management. The feedback of Marketing
department certainly plays a positive role in the correct decision making This suggests the
importance and benefits of marketing research to top level management of the company.
31
TYBMS Prof. Hemant Kombrabail
In India population census, (census survey) crop surveys, surveys of industrial production,
wholesale and retail prices, cost of living index, estimates of imports and exports etc. for the
future period are conducted regularly. In addition, needs of various sectors of the economy are
estimated. Information collected through these sources is used while deciding government
policies, budgets, funds allocation, etc. This suggests how research activities are given adequate
importance attention at the government level. The data collected through census and other surveys
are used while framing economic policies, long term development plans, allocation of resources
and so on.
32
TYBMS Prof. Hemant Kombrabail
In brief, marketing research is useful to the government in bringing economic stability and
economic growth. The government can take correct decisions about various aspects of national
economy with the help of the feedback provided by marketing research activities. Finally, it can
solve economic problems and difficulties with the help research activities undertaken at the
government level. This suggests the importance of marketing research at the government level.
In order to conduct its activities efficiently, an advertising agency needs adequate information and
latest trends as regards advertising and marketing. Such information includes product details,
readership details, details of different advertising media, media rates and so on. Such information
is available from different sources such as data published by newspapers, TV, radio, advertising
magazines and so on.
An advertising agency also needs information as regards new trends and techniques used in
advertising, legal and other restrictions on advertising and publicity in India, details of different
advertising media (i.e./ rates, coverage, audience, popularity of the media, etc.). Information about
market competition, new products available in the markets, advertising campaigns of competitors
of its clients, etc. is also required by an advertising agency. For this, the agency has to conduct
research activities in the field of advertising and marketing.
An advertising agency has to collect and maintain all such information in an orderly manner for
quick reference. It has to collect all useful data from different sources. Data already published on
advertising and allied subjects need to be stored by the agency for ready reference. In addition, the
agency has to conduct research activities in order to collect necessary information useful for the
conduct of its functions. A well-maintained reference library is also necessary in the case of an
advertising agency. Such activities will provide suitable feedback to the agency and the agency
will be able to offer efficient services to its clients. This suggests the importance of MR and MIS
in the case of advertising agencies.
33
TYBMS Prof. Hemant Kombrabail
34
TYBMS Prof. Hemant Kombrabail
activities indirectly as all research activities are basically for the benefit and convenience of
consumers.
The benefits of MR to consumers are as noted below:
1. Supply of goods and services as per the needs and expectations of consumers. MR provides
wide choice to consumers. Consumers get wide variety of goods at fair prices due to MR
activities.
2. Suitable adjustments in the products (as per the requirements of consumers) through
product planning, product innovation and product modification.
3. Supply of goods at right place, time and also at the right price.
4. Better return (in terms of convenience, satisfaction and welfare) of the price paid for goods
and services.
5. Protection of the rights of consumers and prompt redressal of complaints relating to price/
quality, use, etc.
6. Availability of new / innovative products as per current socio-economic-cultural needs.
7. Provision of wide variety of goods for the convenience of consumers.
8. Better quality after-sales services.
9. Fair treatment and prevention of exploitation of consumers.
10. Production as per the expectations of consumers.
11. Provision of wide choice to consumers.
A small businessman may not be able to maintain separate research department for the conduct of
research activities. However, he can collect necessary information from census reports, other
financial and marketing reports, etc. published by different agencies. He can even refer to market
reports and other reports on current economic issues and adjust his business policies accordingly.
This is how marketing research is useful to small businessmen in the conduct of all their business
activities properly and with foresight, imagination and vision.
Small businessmen have to adjust their business policies and activities as per the need of the
situation. Here, they use the research techniques (knowingly or unknowingly). This suggests that
marketing research is useful to large business houses as well as small businessmen. In the case of
small businessmen, the use of MR may not be extensive as in the case of large business houses.
However, small businessmen study market situation as per their business needs, use available
information on market competition, consumer needs, etc. and adjust their business plans, policies
and operations according. This is precisely the manner in which they use marketing research for
their benefit.
35
TYBMS Prof. Hemant Kombrabail
2. Sometimes, the executives develop their own objectives, which are in conflict with the
organization, and they want research to support their views rather than the views of the
organization.
3. The executives are unable to use specialists effectively. Marketing research presently draws on
a variety of specialists from such disciplines as mathematics, statistics, economics, psychology,
sociology, general semantics, anthropology, etc.
4. Marketing research department is often isolated from key departments.
36
TYBMS Prof. Hemant Kombrabail
Applied research can be of two types (a) problem-solving research and (b) problem-oriented
research. As the name indicates problem-solving research relates to a specific problem. This
research can be conducted either by the marketing research department of the firm or by an
outside research agency. By contrast problem-oriented research deals with problems that may be
of interest to many firms. This type of research puts into practice the knowledge obtained through
basic research.
37