MARKETING RESEARCH PROCESS

A research project is conducted / chanellized through several stages/ steps called research
process. Various steps involved in this process are interwoven into each other in the sense
that each step will have some influence on the successive steps. Thus, MR process starts
with the identification of research problem and ends with follow-up of recommendations
made for solving the marketing problem. In between, the research process moves through
different steps logically arranged. Such steps include creating research design,
determining data needs and sources of collection, designing sample, data collection, data
processing, report writing and so on.

The charts given below suggest the steps involved in marketing research
process/procedure:

IDENTIFYING AND DEFINING THE RESEARCH PROBLEM

DETERMINING RESEARCH OBJECTIVES

CHOICE OF RESEARCH DESIGN

DETERMINING DATA NEEDS AND SELECTING DATA

SOURCES

DETERMINING SAMPLING DESIGNING AND SAMPLING SIZE

DATA COLLECTION, ANALYSIS AND INTERPRETATION

PREPARATION AND SUBMISSION OF RESEARCH REPORT

1
Each step in the research process should be carefully and meticulously planned. In the
absence of such planning, the research project will not be completed properly and the
results available may not be accurate. In short, the MR procedure is lengthy and time-
consuming. It needs to be followed with proper planning. All steps in the research
procedure are important and essential. The quality of research project will be affected
adversely even if one step in the procedure is not completed with utmost care.

(1) Identifying and defining a marketing problem

The first-step (the starting point) in the MR process is to identify the marketing problem
that needs to be studied in depth and solved. There are several marketing problems before
a marketing firm. However, research is neither possible nor desirable on all marketing
problems. It is desirable to consider the basic, the most complicated and challenging
problem for research purpose. A good problem definition is the key to getting the most
out of the marketing research. Defining a marketing problem means understanding the
problem in an exact manner. It suggests the scope of the problem, the types of
information needed and other details of the research project. The significant saying that
"a problem well put is half solved" is applicable to the correct identification of marketing
problem. On the other hand, wrong definition of marketing problem misdirects the whole
research process. Even the information to be collected relates to the problem selected for
research purpose.

The research process will start only when the marketing problem is identified and defined
clearly. This will give clear direction to the research process and the researcher will be
able to take appropriate decisions as regards proposed research project. There must be
agreement between the researcher and marketing executives in the identification of
marketing problem for research purpose. This facilitates co-operation between the two.
Moreover, such co-operation is needed for orderly completion of research work. It is
generally said that "well begin is half done". This is applicable to this first step in the MR
process. Marketing research problems may be related to different areas such as
production, sales, product and product designs.

The marketing team may suggest many marketing problems that they face. However, the
researcher has to select one major problem, which is suitable for detailed investigation.
All marketing problems are not researchable and hence such preliminary survey of the
situation is necessary. This step in the research process avoids wastage of time and money
on unsuitable research project and facilitates quick completion of the research project,
which will be useful to the company in promoting sales/ turnover and profits.

(2) Determining research objectives (Formulating Hypothesis)

After defining the research problem, the researcher has to state what he wants to achieve.
The objectives decided should be specific, measurable and also attainable. The research
objectives decided act as a guide to the researcher and help him in maintaining a focus on
the whole research project. The objectives are directly related to the marketing problem
defined by the researcher.

2
While determining research objectives, the researcher has to formulate hypothesis to fit
the problem under investigation. The hypothesis is a proposition, which the researcher
wants to verify. Often there may be several competing hypotheses, either specified or
implied If, before undertaking the research, the researcher finds that all hypotheses are
true, then there is no need whatsoever to undertake research One objective of research is
to select among the possible hypotheses and to test them empirically with the help of
statistical tools in order to ascertain whether they are true or false For example, declining
sales may be due to poor quality or high price or due to limited interest taken by
middlemen or that the product itself has become outdated. If the first reason is accepted,
the same will be investigated in full. If the first cause is rejected, he will have to move to
the second one for detailed study through data collection. The hypothesis, once decided,
gives clear direction to the research process and also facilitates data collection process.

While the formulation and testing of hypotheses are important in research, it is not
necessary that every marketing research study must have a hypothesis In some studies we
are only interested in knowing factual information and hence there is no need for
formulating a hypothesis

(3) Choice Of Research Design

Research design is the grand plan for the conduct of actual research work. It is a blueprint
of the whole research activity, like an architect's plan for building construction. The
actual construction work will be as per the plan prepared. Similarly, the researcher
prepares complete plan of his project and accordingly the whole research process moves.
It. gives all details of the research project and acts as a reference document during the
execution of research project. The research design indicates the method of research, the
instruments to be used for the research, the method of sampling, etc. Such design
provides guideline for the researcher to keep a track on his actions and to know that he is
moving in the right direction on data collection.

The research design contains answers to the following questions:

(a) What is the nature and purpose of study?
(b) What type of data is required?
(c) How to collect required data?
(d) How much funds will be required?
(e) How much time/period will be required for completion of research project?

(4) Determining the data needs and their sources

After defining the research problem and creating research design, the researcher has to
decide the nature of data required for his study. The hypothesis guides the data collection
process. The data needs are directly related to the research project undertaken.
The next step is to determine the sources of data to be used. The sources of primary /
secondary data are different. The marketing researcher has to decide whether he has to
collect primary data or depend exclusively on secondary data. Sometimes, the research
study is based on both secondary and primary data

3
When a study is to be based on secondary data, whether partly or fully, it is necessary to
satisfy oneself that the data are quite suitable for the objectives spelt out by the study. It is
also advisable to evaluate secondary data in detail to avoid possible sources of error. To
begin with, one should be familiar with the authentic sources of relevant data, their
periodicity, the agency publishing or having such data, the concepts used in compilation
and their limitations, if any. A sincere effort must be made to look into the existing data
with a view to examining their suitability for the research.
It is only when such secondary data are unavailable, inadequate, or unreliable, that a
researcher should decide on collecting fresh data. He should also consider the time and
cost required for data collection.
Similarly, for the collection of primary data, any suitable survey method can be used. The
researcher has to decide the convenient method for data collection. He can use internal as
well as external sources to data. Survey work will also be needed for the collection of
primary data.

(5) Determining Sampling Design And Sampling Size

Another aspect, which forms a part of research process, is the sampling plan. When the
marketing researcher has decided to carry out a field survey, he has to decide whether it is
to be a census or sample survey. In almost all cases, a sample survey is undertaken on
account of its overwhelming advantages over a census survey.

When a decision in favor of a sample survey has been taken, it is necessary to have a
clear definition of the population from which the sample is to be drawn, before deciding
on the type of sample design to be used.

Sample is a small, representative group selected from the total population for intensive
study purpose. For data collection, a representative group of respondents will have to be
selected out of the total i.e. universe. A sample designed should be adequately
representative in character. It must represent the total population under study.

Sampling is necessary in marketing research, as information collection from all

consumers or all dealers is not possible due to time and cost involved. Collection of data
from the entire universe is costly and time-consuming. The best alternative is to select a
representative sample and to collect information from such selected individuals (called
sample). A sample is a part of the whole and is representative in character. Sampling
reduces cost, saves time and facilitates collection of information that is sufficiently
representative in character and is also adequate for survey purpose. Hence, sampling
becomes inevitable. Properly done, sampling produces representative data on the entire
population,

Sampling method is normally used for primary data collection for research purpose. Here,
the researcher has to take decisions on the following issues:
(a) How to select representative sample for survey purpose?
Sampling has a key role to play in systematic and objective market survey. A sample can
be selected at random or by using probability techniques. Random sampling is better but

4
should be adequately proportional. In simple random sampling every member of the
population has equal chance of selection. Here, lottery method is used or random tables
are used.
(b) What should be the size of the sample?
As regards sample size, there are two basic approaches—the ad hoc or practical approach
and the statistical approach. Although the former is widely used in marketing research, it
should be the endeavor of the researcher to follow the statistical approach, which is based
on well-defined principles. The size of sample will depend on the degree of precision
required as also on the cost considerations.
(c) Which method of sampling (probability or non-probability sampling) is suitable for
the research project undertaken?
Probability has been found to be useful in descriptive research while non-probability
sampling has been found to be useful in exploratory research.

The object of sampling is to choose a sample that will faithfully reproduce the
characteristics of the population or universe. In practice, however, this objective is never
completely attained on account of the occurrence of two types of errors - errors due to
bias in the selection and sampling errors. It is desirable to minimize these errors and to
consult an experienced statistician on sampling.

(6) Data Collection Analysis and Interpretation

Once the decision in favor of collection of primary data is taken, one has to decide the
mode of collection.
Once the field survey is over and questionnaires have been received, the next task is to
aggregate the data in a meaningful manner. A number of tables are prepared to bring out
the main characteristics of the data. The researcher should have a well thought out
framework for processing and analyzing data, and this should be done prior to the
collection. It is advisable to prepare dummy tables; as such an exercise would indicate the
nature and extent of tabulation as also the comparisons of data that can be undertaken.

In order to derive meaningful results from the statistical tables, the researcher may use
one or more of the following four steps. The first step is to calculate relevant measures of
central tendency as also of dispersion, highlighting the major aspects of the data. The
second is to cross-tabulate the data to ascertain some useful relationships. The third is to
calculate the correlation coefficient and undertake a regression analysis between
variables. The fourth is to undertake a multivariate analysis. Such an analysis uses a
variety of techniques to determine important relationships amongst several variables.

(7) Preparation and Submission of research report

Once the data have been tabulated, interpreted and analyzed, the marketing researcher is
required to prepare his report embodying the findings of the research study and his
recommendations As a poor report on an otherwise good research will considerably
undermine its utility it is necessary that the researcher gives sufficient thought and care to
its preparation

5
Although report writing needs some skill which can be developed with practice the
researcher should follow the main principles of writing a report Some of these principles
are objectivity, coherence, clarity in the presentation of ideas and use of charts and
diagrams The essence of a good research report is that it effectively communicates its
research findings As management is generally not interested in the details of the research
design and statistical findings, the research report should-not be loaded with such details,
otherwise, there is a strong likelihood of its remaining unattended on the manager's desk
In view of this, the researcher has to exercise extra care to make the report a useful and a
worthwhile document for the management

The researcher will submit his research report to the appointing authority The researcher
may submit his findings, recommendations, etc orally to the top executives of the
management In addition, the detailed written report will be submitted for scrutiny by the
management. The decision-makers will study the report minutely and find out the
desirability of execution of the recommendations made. The final decision on the
research report is to be taken by the appointing authority

Sometimes, a detailed marketing research study throws up one or more areas where
further investigation is needed. Since research on those areas or aspects could not have
been fitted into the original project a separate follow-up study has to be attempted