 RESEARCH METHODOLOGY & REPORT PREPARATION

Marketing Researchers support decision-makers by collecting, analysing and

interpreting information needed to identify and solve marketing problems.
 Definition
The American Marketing Association (AMA) defined Marketing Research as:
According to American Marketing Association, “Marketing Research is the function
that links the consumer, customer and public to the marketer through information-
information used to identify and define marketing opportunities and problems,
generate, refine and evaluate marketing actions; monitor marketing performance;
and improve understanding of marketing as a process.”
Marketing Research plays a very significant role in identifying the needs of
customers and meeting them in best possible way. The main task of Marketing
Research is systematic gathering and analysis of information.

 Nature of Marketing RESEARCH

Marketing Research is systematic problem analysis and objective collection of data,
its analysis and evaluation, and decision making and control in respect of specific
aspects of a marketing problem.
Marketing Research is a well-planned, systematic process which implies that it
needs planning at all the stages. It uses scientific method.
It is an objective process as it attempts to provide accurate authentic information.
.
 Nature of Marketing RESEARCH
1. Systematic process
2. Continuous in Nature
3. Applied Research
4. Bridges Company-customer Gap
5. Company Objectives
6. Marketing mix decisions
Systematic process: - Marketing Research is a systematic process to identify and
to solve problems. The process of marketing research involves the following
steps: 1. Identify the marketing problems. 2. Create the research design.
3. Collection of data through primary and secondary sources. 4. Processing of
data. 5. Analysis of data. 6. Implementation of data. 7. Finally, review or follow up of
action taken.
Continuous in Nature: -Marketing research is continuous in nature. As long as the
firm exists, there is a need for marketing research; to overcome certain marketing
problems arise during existence of the firm.
Applied Research: -Marketing Research is conducted to solve specific problems of
commercial importance. Since, marketing research is subject to commercial
considerations, it is not a basic or fundamental research but an applied research
which is used to solve specific problems.
Bridges Company-customer Gap: -Marketing Research bridges the gap between
the producers and the consumers. The company comes to know more about its
consumers-their likes and dislikes, tastes, preferences and buying patterns.
Company Objectives: -Due to marketing research, the company is in a position to
achieve its objectives. Marketing research enables a firm to solve marketing
problems. The resolving of marketing problems enables the company to achieve its
objectives in a profitable manner.
Marketing mix decisions: -Marketing Research provides necessary information to
arrive at appropriate solutions to marketing problems. Effective marketing mix like
packaging, pricing, promotion, distribution enables the firm to achieve marketing
objectives.

 SCOPE OF Marketing RESEARCH

Marketing Research attempts to solve problems in a wide range of areas. The
problem relates to various areas of marketing such as:
PRODUCT RESEARCH
 Test concept
 Determine optimal product design
 Package tests
 Product modification
 Brand positioning and
repositioning
 Test marketing
 Control score tests

PROMOTIONAL RESEARCH
 Optimal promotional budget
 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

 Marketing RESEARCH PROCESS

1. Identify the marketing problems
2. Create the research design
3. Collection of data through primary and secondary sources
4. Processing of data
5. Analysis of data
6. Implementation of data
7. Review or follow up of action taken

 Marketing research as input in decision making process

Marketing research facilitates decision-making in a number of marketing areas.
1. Marketing mix decisions
Product Development
Pricing Decisions
Promotion-mix decisions
Place Decisions
2. Customer Satisfaction
 3. Competitive Advantage
4. Corporate Image
5. Forecasting Sales
6. Expansion of markets
7. Dealer’s Relationship
8. Brand Loyalty
9.
 Marketing information SYSTEM
According to Philip Kotler, “A marketing information system consists of people,
equipment and procedures to gather, sort, analyze, evaluate and distribute needed,
timely and accurate information to marketing decision makers”.
MIS is a set of formalized procedures for generating, analyzing, storing and
distributing information to marketing decision makers on an ongoing basis.

 Marketing information SYSTEM

1. Systematic process
2. Components of MIS
3. Unified and centralized making
4. Unified and centralized making
5. Cost-effective information
6. Future oriented
7. Regular Supply of Information

Systematic process: It is a systematic process of collecting and maintaining a

record of marketing information. The MIS process consists of -
a. Gathering of marketing information.
b. Sorting classification of data.
c. Analyzing of marketing data.
d. Transmitting the data to marketing decision makers.
Components of MIS: MIS consists of four components.
1. Internal Records: It provides current data on internal marketing environment
such as sales, costs, inventories, cash flow and accounts receivable and
payable.
2. Marketing Intelligence System: The marketing intelligence system supplies
marketing mangers with everyday information about developments in the
external marketing environment.
3. Marketing Research: Besides, internal records and marketing intelligence,
marketing managers may often conduct marketing research to solve specific
problems.
4. Marketing Decision support system (MDSS): A MDSS is a set of statistical
tools and decision models with supporting hardware and software available to
marketing managers to assist them in analyzing data and making better
marketing decisions.
5.
Unified and centralized making: There are several information components
(internal records, marketing research, etc.) in every MIS. Also, there are several
activities in each component-collection of data, processing, storing and transmission.
The components and the activities must be integrated into a unified system. The
unified system managed at a centralized place.

Facilitates Decision making: MIS aids in decision making relating to various

elements of marketing mix such as product-designing, pricing, promotion and
distribution. By making available timely information, which is relevant and reliable,
MIS aids marketing managers to take effective decisions to achieve objectives of the
marketing and that of the organization.

Cost-effective information: There is no sense in collecting whatever

information that is available in the market. MIS facilitates the collection of only
relevant information. Efforts are made to collect not only relevant data but also cost
effective.

Future oriented: To manage the business well, marketing managers should

be future oriented. Therefore, MIS should be in a position to provide information to
solve problems that may crop up in future. More emphasis must be placed on future
oriented information rather than past information.

Regular Supply of Information: There is a constant and continuous need to

make marketing decisions. This is because if the constant and continuous changes
in the business environment. Therefore, to make effective decision. MIS should
supply information regularly on a continuous basis.
 Applications of marketing research
Regular Supply of Information: There is a constant and continuous need to
make marketing decisions. This is because if the constant and continuous changes
in the business environment. Therefore, to make effective decision. MIS should
supply information regularly on a continuous basis.

 Applications of marketing research

Product Research
Concept Testing
Pricing Research
Positioning Research
Customer Satisfaction Research
Market Segmentation
Advertising Research
Branding Research

 Applications of marketing research

Brand Equity Research – measure the breadth and depth of brand power in the
target markets
Sales Analysis – stock inventory, measure the effectiveness of sales force
 MEASUREMENT
 Measurement is the process of observing and recording the observations
that are collected as part of a research effort.
 A common feature of marketing research is the attempt to have respondents
communicate their feelings, attitudes, opinions, and evaluations in some
measurable form.
 The decision statement, research questions and research hypothesis can be
used to decide what needs to be measured.
 To measure is to discover the extent, dimensions, quantity or capacity of
something especially by comparison with a standard.

 MEASUREMENT
 The sole purpose of measurement is to accurately represent the research
variables numerically. Scaling involves creating a continuum upon which
measured objects are located. The characteristics of scale are
 Identity/Classification/Description‐ Each number has a particular
meaning.
 Magnitude/Order/Reliability‐ Numbers have an inherent order from
smaller to larger (ex: 5 is a greater magnitude than 3.). There are no
absolute values associated with order, only relative values.
 Equal Intervals/Distance/Validity‐ The difference between units is the
same anywhere on the scale (the difference between 2 & 3 is the same
as the difference between 99 & 100.)
 True Zero/Origin/Practicability‐ Represents none of the concept
being measured (Ratio Scale)

 MEASUREMENT
 It is the process of describing some properties of a phenomenon of interest
 What we measure is not the object but some characteristics of it.
 Process of assigning numbers to objects to events, properties or activities
within some set of rules.
 The numbers convey information about the characteristics being measured.
 Measuring attributes of objects but not objects
 Sales, height, intelligence, performance, goodwill, employees
  LEVELS OF MEASUREMENT
 Nominal–Latin for name only (Republican, Democrat, Green,
Libertarian)
 Ordinal–Think ordered levels or ranks (small–8oz, medium–12oz,
large–32oz)
 Interval–Equal intervals among levels (1 dollar to 2 dollars is the same
interval as 88 dollars to 89 dollars)
 Ratio–Let the “o” in ratio remind you of a zero in the scale (Day 0, day
1, day 2, day 3, …)

NOMINAL SCALE
 Nominal scale of measurement is used to classify the categorical variables,
i.e, the variables which cannot be ranked.
 No ordering of the cases is implied.
 The numerical values just "name" the attribute uniquely.
 The numbers in the variable are used only to classify/differentiate the data.
 Words, letters, and alpha-numeric symbols can be used.
 Nominal is hardly measurement.
 It refers to quality more than quantity.
 E.g. Gender, religion, Food choices, colour, favourite etc.
“Presenting an attribute as it is…Even though we are using the numbers 1 and 2,
they do not denote quantity. The binary category of 0 and 1 used for computers is a
nominal level of measurement.”

ORDINAL SCALE
 The ordinal scales include the characteristics of the nominal scale plus an
indication of order.
 The ordinal scale of measurement includes the variables that have the
property of rank or order.
 Has quantifiable meaning
 Intervals between values not assumed to be equal
 The order of the values has more importance but the differences between
each one is not really known.
 It is more precise than the nominal one.
  This scale of measurement possesses the properties related to identity as
well as magnitude.
 Every value evaluated on ordinal scale has a unique meaning.

INTERVAL SCALE
 This scale has the properties of the nominal and ordinal scales plus one
additional strength: they incorporate the concept of equality of interval.
 Interval scales have the properties of:
 Identity
 Magnitude
 Equal distance
 In interval measurement the distance between attributes does have
meaning
 Time, temperature, IQ levels, scores

RATIO SCALE
 A Ratio Scale is at the top level of Measurement. The factor which clearly
defines a ratio scale is that it has a true zero point.
 Properties of Ratio Scale
 Identity
 Magnitude
 Equal distance
 Absolute/true zero
 These properties allow to apply all possible mathematical operations that
include addition, subtraction, multiplication, and division.

Strength & Weakness

 Nominal - Strength
 Easy to generate from closed questions; large amounts of questions
can be collected quickly; increasing reliability
 Nominal - Weakness
 Without linear scale participants may be unable to express degrees of
response; can only use the mode as a measure of spread
  Ordinal - Strength
 Indicates relative values on a linear scale instead of just totals; more
informative than nominal data
 Ordinal - Weakness
 Gaps between the values aren't equal so a mean cannot be used to
assess central tendency
 Interval - Strength
 More informative than ordinal and nominal as the points are directly
comparable because they are all of equal value; scientific measures
used to record the distance between values are highly reliable
 Interval - Weakness
 In interval scales that do not contain scientific measurements there is
no absolute baseline to the scale so scoring 0 may not mean the
participant doesn't demonstrate the variable but that the scale doesn't
measure it.

SCALING
 Scaling is the branch of measurement that involves the construction of an
instrument that associates qualitative constructs with quantitative metric units.
 Scaling evolved out of efforts in psychology and education to measure
"unmeasurable" constructs like authoritarianism and self esteem.
 In many ways, scaling remains one of the most arcane and misunderstood
aspects of social research measurement. And, it attempts to do one of the
most difficult of research tasks -- measure abstract concepts.
 Scales are generally divided into two broad categories: unidimensional and
multidimensional.


Attitude Scaling
Attitude scaling is the process of assessing an attitudinal disposition using a number
that represents a persons score on attitudinal continuum ranging from an extremely
favorable disposition to an extremely unfavorable one.
Scaling is the procedure for the assignment of numbers (or other symbols) to a
property of object in order to impart some of the characteristics of numbers to the
properties in question. Procedurally, we assign numbers to indicants of the
properties of objects.
 Selecting a Measurement Scale
Selecting and constructing a Measurement of Scale requires the consideration of
several factors that influence the reliability, validity, and practicality of the scale:
 Research objectives
 Response types
 Data properties
 Number of dimensions
 Balanced and unbalanced
 Forced and unforced choice
 Number of scale points
 Rater errors

A Comparison of Scaling Techniques

Comparative scales involve the direct comparison of stimulus objects.
Comparative scale data must be interpreted in relative terms and have only ordinal
or rank order properties.
In non-comparative scales, each object is scaled independently of the others in the
stimulus set. The resulting data are generally assumed to be interval or ratio scaled.