MARKETING

RESEARCH
UNIT-I
 Redefining Marketing
Research
n The American Marketing
Association(AMA)
Redefined Marketing Research as:

The function which links the



consumer, the customer and public

to the marketer through
INFORMATION.
 Redefining Marketing
Research
Used to identify and
define market
opportunities and
problems

Information Generate, refine, and

evaluate marketing
performance

Monitor marketing
performance

Improve understanding
of marketing as a
process
 DEFINITIONS OF
MARKETING RESEARCH
Marketing research is defined as the


systematic and objective

identification, collection, analysis and
dissemination of information for the
purpose of assisting management in
decision making related to the
identification and solution of
problems (and opportunities) in
marketing
n Identification: Involves defining the
marketing research problem (or
opportunity) and
 determining the information that is
needed to address it.


n Collection: Data must be obtained

from relevant sources.
n
n Analysis: Data are analyzed,
interpreted, and inferences are
drawn.
n Dissemination of information: The
findings, implications, and
recommendations are provided in a
format that makes this information
actionable and directly useful as an
input into decision making.

Thus, marketing research is the


function which links the consumer ,

customer and public to the marketer
through information- used to identify
and define marketing opportunities
and problems, generate, refine and
evaluate marketing actions, monitor
marketing performance and improve
understanding of marketing as a
process.
 Classification of
Marketing Research
 Problem Identification Research
 Research undertaken to help identify problems which
are not necessarily apparent on the surface and yet exist
or are likely to arise in the future. Examples: market
potential, market share, image, market characteristics,
sales analysis, forecasting, and trends research.
n
 Problem Solving Research
 Research undertaken to help solve specific marketing
problems. Examples: segmentation, product, pricing,
promotion, and distribution research.

 A Classification of Marketing
Research
Fig 1.1
Marketing Research

Problem Problem Solving

Identification Research Research

Market Potential Research

Market Share Research
Market Characteristics Research
Sales Analysis Research
Forecasting Research
Business Trends Research
Segmentation Research
Product Research
Promotion Research
Distribution Research
 Problem Solving
Table 1.1 Research
SEGMENTATION RESEARCH

§ Determine the basis of segmentation

§ Establish market potential and

responsiveness for various PRODUCT RESEARCH

segments §
§ Select target markets § Test concept
§ Create lifestyle profiles: § Determine optimal product design
demography, media, and § Package tests
product image characteristics § Product modification
§ Brand positioning and
repositioning
§ Test marketing

§
 Problem
Table 1.1 cont. Solving Research
PROMOTIONAL RESEARCH
§ Optimal promotional budget
0.00% APR §
§
Sales promotion relationship
Optimal promotional mix
§ Copy decisions
§ Media decisions
§ Creative advertising testing
§ Evaluation of advertising effectiveness
§ Claim substantiation

PRICING RESEARCH
§ Pricing policies
§ Importance of price in brand selection
§ Product line pricing
§ Price elasticity of demand
§ Initiating and responding to price changes
$ALE
 Problem Solving
Table 1.1 cont. Research

DISTRIBUTION RESEARCH

Determine…
§ Types of distribution
§ Attitudes of channel members
§ Intensity of wholesale & resale coverage
§ Channel margins
§ Location of retail and wholesale outlets
§
 GOAL OF MARKETING
RESEARCH
To provide:


n Relevant
n Accurate
n Valid and
n Timely
Information to facilitate marketing

decision making.
 WHEN TO DO MARKETING
RESEARCH
n There is an information gap which
can be filled by doing research.
n The cost of filling the gap through
marketing research is less than the
cost of taking a wrong decision
without doing the research.
n The time taken for research does not
delay decision- making beyond
reasonable limits.
 APPLICATIONS OF
MARKETING RESEARCH
Applications of marketing research
can be divided into two broad areas:
n Strategic
n Tactical
Among the strategic areas, marketing

research applications would be

demand forecasting, sales
forecasting, segmentation studies
and identification of target markets
for a given product.
In tactical area, there is product


testing, pricing research, advertising

research, promotional research and
distributional research.

Concept Research- The first stage is


the development of a concept and its

testing. The concept for a new
product may come from several
sources- the idea may be brain-
storming session consisting of
company employees, a focus group
conducted among consumers or the
brainwave of a top executive, before
it goes into prototype or product
development stages.
Product research- Research also helps


to identify which alternative

packaging is most preferred, or what
drives a consumer to buy a brand or
product category itself, and specifies
of satisfaction or dissatisfaction with
elements of a product.
Pricing Research- It could try to find


out how the current price of a

product is perceived, whether it is a
barrier for purchase, how a brand is
perceived with respect to its price
and relative to other brand’s prices.
Distribution Research- Distribution


research focuses on various issues

related to the distribution of products
including service levels provided by
current channels, frequency of
salespeople visits to distribution
points, routing and transport related
issues for deliveries to and from
distribution points throughout the
channel etc.
Advertising Research- The two major


categories of research in advertising

are-
n Copy

n Media
Copy testing- This is a broad term that


includes research into all aspects of

advertising-brand awareness, brand
recall etc.
Media Research- The major activity


under this category is research into

viewer ship of specific television
programmes on various TV
channels . There are specialized
agencies like A.C. Nielsen worldwide
which offer viewer ship data. In India
both ORG-MARG and IMRB offer this
service. They provide peoplemeter
data with brand names of TAM and
INTAM which is used by advertising
agencies when they draw up media
Limitations of Marketing Research

n Ever changing market conditions

n Research reports based on
interpretations and individual
inferences
n Biasness of Researcher
n Higher Costs
n Inability to draw accurate and
reliable information from the
respondents
 The Role of Marketing
Research Customer Groups
Consumers
• Employees
• Shareholders
• Suppliers
Uncontrollable
Controllable Environmental
Marketing Factors
Variables
Marketing •Economy
•Product Research •Technology
•Pricing
•Laws &
•Promotion Regulations
•Distribution •Social & Cultural
Assessing Marketing Factors
Providing
Information Information Decision •Political Factors
Needs Making

Marketing Managers
•Market Segmentation
•• Target Market Selection
••Marketing Programs
•
•Performance & Control
 MARKETING RESEARCH DURING
DIFFERENT PHASES OF THE
ADMINISTRATIVE PROCESS
This conceptual framework is called


the administrative process, and it

consists of the four phases managers
frequently go through:


n Setting goals and establishing

strategies
n Developing a marketing plan
n Putting the plan into action
n Evaluating the plan's effectiveness
n Setting goals and establishing
strategies- Useful information can
be obtained on a variety of topics
when managers attempt to select a
new strategy to pursue. Changes in
the size or trend of demand,
changes in the structure or
composition of the market, needs,
wants and/ or dissatisfactions in
relevant market segments may
suggest that a problem exists,
n Developing a marketing plan-When
developing marketing plans,
managers often use marketing
research to identify key market
segments. By measuring their
attitudes and opinions toward the
features of available products and
how these products are used,
managers can identify important
product and advertising
considerations to include in their
Putting the plan into action- When a


plan is put into action, management

must monitor the effects of the plan
to see if it is achieving its objectives.
Evaluating the Plan’s Effectiveness- At


the end of the operating period

management will want to reappraise
the plan and compare results with
the objectives. Such a reappraisal
will involve an aggregation and
compilation of most of the
information obtained during the
planning and action phases, with a
special emphasis on sales, market
share, marketing costs and
Such a reappraisal will involve an
aggregation and compilation of most
of the information obtained during
the planning and action phases, with
a special emphasis on sales, market
share, marketing costs and
contribution to profit.
It will also measure brand awareness,

preferred rates and other measures

of marketing results.
The Importance of
Information
Marketing
Environment

Competition
Customer
Needs

Strategic
Planning
 EVOLUTION OF THE MARKETING
INFORMATION SYSTEM CONCEPT
In 1966 Professor Philip Kotler of
northwestern University used the
terms marketing nerve centre to
describe a new unit within marketing
to gather and process marketing
information. He identified the three
types of marketing information:
Marketing intelligence- information

that flows into the firm from the

environment.
Internal marketing information-


information that is gathered within

the firm.


Marketing communication- information



that flows from the firm outward to

the environment.
 Marketing Intelligence

Internal
Marketing ENVIRONME
FIRM
information NT

Marketing communications
 What is a Marketing
Information System (MIS)?

n Consists of people,
equipment, and
procedures to gather, sort,
analyze, evaluate and
distribute needed, timely,
and accurate information
to marketing decision
makers.

The MIS inputs are provided through


internal record system( information

on market potential, sales, prices ) ,
marketing intelligence system,
marketing research system and
analysis of information and turns it
into a basis for marketing actions
and tactics.
The term marketing information


system has gained prominence in the

new era of technological
advancement, consumer
consciousness and computerised
information systems.
Thus MIS may be defined as “ a


structured, interacting complex of

persons, machines and procedures
designed to generate an orderly flow
of pertinent information, collected
from both intra and extra firm
sources for use as the basis for
decision making in specified
responsibility areas of marketing
management.”

 FUNCTIONS OF MIS
n Assess,


n Develop and


n Distribute Information.

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Marketing Information
System
 THE DIMENSIONS OF
MARKETING INFORMATION
SYSTEMS
n Accessibility- This refers to the ease
and speed with which the particular
information could be obtained.
Faster and easier access will have
more value as compared to slow
and difficult access.
n Comprehensiveness- More complete
the information in itself, more
valuable it becomes. This attribute
does not refer to the value of
information but refers only to its
usefulness.
n Accuracy- The information if free
from any error will have more value
than otherwise.
n Timeliness- It takes certain time to
generate the information and the
value of information depends very
much on how timely it is made
available to the user manager.



n Authenticity- If the information is
being generated from a formal
information system it is authentic
and could be measurable
n Free from Bias- The information if
free from any bias towards the
preconceived conclusion will have
more value than otherwise.
 STEPS IN MIS DESIGN
n Define the system-The system for
which design is to be made has to
be defined; in terms of elements,
the relationship and its boundaries.
The system may be the complete
organization consisting of all
functions or only one or several
functions.
n Source and identification- Once the
information needs have been
assessed, the source of this
information and the frequency of
reporting have to be identified. The
source could be both external and
internal where as the frequency
could be based on the occurrence
of the event or by exception.

Formats of MIS- There are two formats
which are very important, viz.
(a) Research assessment sheet

(b) Marketing activity evaluation

sheet.

The research assessment sheet


contains information like marketing

decisions, parameters, frequency,
source and the format code. The
marketing activity evaluation sheet
will contain the items, relationship,
standard, actual, variance and
reason. The first format is useful
from the information point of view
while the second format could be
used for control
Implementation- The steps needed for


implementing the newly designed

Marketing information system could
be:
n Prepare marketing research plan

n Train the research staff

n Prepare operating schedule

n Evaluate and modify the research

system.
ROLE AND IMPORTANCE OF
MIS
n Information primarily geared to assist
marketing decision-making process
and control.
n Marketing communication based on
relevance with respect to diverse
needs of management at different
levels.
n Flexibility in information system to
incorporate future requirements of
marketing managers on need basis.
n Marketing information helps an
organization update itself with the
current and future competition,
diversification and / or expansion
strategic plans because marketing
managers are engrossed in finding
solutions to ever increasing
operational problems.
 Functions of a MIS:
eveloping Information
Obtains
Obtains Needed
Needed Information
Information for
for Marketing
Marketing Managers
Managers
From
From the
the Following
Following Sources
Sources

Internal
InternalData
Data
Collection
Collectionof
ofInformation
Informationfrom
fromData
DataSources
SourcesWithin
Withinthe
theCompany
Company
From:
From:Accounting,
Accounting,Sales
SalesForce,
Force,Marketing,
Marketing,Manufacturing,
Manufacturing,Sales
Sales

Marketing
MarketingIntelligence
Intelligence
Collection
Collection and Analysis of PubliclyAvailable
and Analysis of Publicly AvailableInformation
Informationabout
about
Competitors and the Marketing Environment
Competitors and the Marketing Environment
From:
From:Employees,
Employees,Suppliers,
Suppliers,Customers,
Customers,
Competitors,
Competitors, Marketing ResearchCompanies
Marketing Research Companies

Marketing
MarketingResearch
Research
Design,
Design,Collection,
Collection,Analysis,
Analysis,and
andReporting
Reportingof
ofData
Dataabout
aboutaa Situation
Situation
 Assessing Information
Needs
n There must be a balance between what
information is wanted and what is cost
effective, obtainable and needed
n
n Too much information can be as harmful
as too little
n
n Information gathering costs can add up
quickly
 Developing Information
n Information can be obtained from
internal company records, marketing
intelligence and marketing research
n
n Data warehouses contain all customer
information in a single, accessible
source
n
n Guest history information the most
valuable
 Marketing Intelligence
 Marketing intelligence includes
everyday information about
developments in the marketing
environment that helps managers
prepare and adjust marketing plans
and short-run tactics
Marketing Intelligence Forms
n Internal marketing intelligence
n

n External marketing intelligence

n

n Competitive information
Internal Marketing Intelligence
n Company executives
n

n Hotel owners and managers

n

n Contact personnel
External Marketing Intelligence
n Macro market information
n

n Competitive information
n

n New innovation and trends

Competitive Information
n Competitors annual reports
n

n Trade magazines, press releases,

advertisements
n

n In today’s information age,

companies leave a paper trail