Market Research

MARKET RESEARCH
‘Research’ refers to the process of collecting, documenting and analysing important, critical
and relevant information pertaining to any problem or question. This means that the presence
of a problem or query or question implies research is to be undertaken.
Market Research is the systematic and objective search for and analysis of information
relevant to the identification and solution of any problem in the field of marketing.
Market Research is a systematic and objective search because careful planning starting with
a clear and concise statement of the problem to be researched, to the objective - (scientific
method of marketing) of collecting and finally, analysing of information is to be carefully
planned and worked out.
UTILITY AND SCOPE OF MARKET RESEARCH
The utility and scope of marketing research can be examined by having a look at the reasons
why organisations are required to carry out researches.
(a) When organisations get evolved and start growing and expanding their markets, marketers
need to keep in touch with the final customers who are far away from the manufacturer.
(b) Organisations and marketing managers need to have exact information on the target
customers’ unmet needs, deliver products and services effectively and carry out activities
which will add to customer satisfaction and delight.
(c) Marketing research during the organisation’s administrative process: Marketing research
can also help managers during the various phases of the administrative process. The main
four phases of the administrative process where managers can make use of marketing
research are:
Phase 1: Setting goals and establishing strategies: When managers are attempting to
decide upon a new strategy to be pursued, then marketing research will help to generate the
necessary information. For instance, changes in the media trends, such as more preference for
interactions with customers signaled the emergence of an opportunity to many of the
entertainment channels to be involved in interactive programme sessions with their target
audience. This is seen in the reality programmes being telecast on the various T.V.
entertainment channels. In the same way, (change in needs, wants and/or) unhappiness (or
dissatisfactions) in certain market segments, etc., can indicate that a problem exists and needs
to be solved.
Phase 2: Developing a marketing plan: For developing marketing plans, managers make
use of marketing research to identify key market segments. Marketing research can help
managers to identify important product attributes and advertising considerations to be
included in their marketing plans. It will help them to work out suitable marketing plans to
tap an emerging market. Phase 3: Put the plan into action: When putting a marketing plan
into action, the management will need to use marketing research to measure and analyse the
effectiveness of the programme. For instance, before the launch of Tata Nano, Tata Motors
had carried out a detailed marketing research, which identified the need of a new ‘Ultra Low
Cost” (ULC) car segment across many global countries (markets) and accordingly planned,
developed and launched the Nano Car
Phase 4: Evaluating the effectiveness of the plan: The information received through
marketing research can be used by managers to evaluate the effectiveness of the plan. These
could include measuring: brand awareness, trial rates, repeat purchase traits, customer
satisfaction etc
(d) Tracing problems and taking decisions Long ago, a marketing director had said of
research: “A blind man uses a white stick to avoid walking into large obstacles in his path
and to define his passage around the world. Market research is the businessman’s white stick.
It prevents him from blundering sightlessly into large objects designed to do his company
significant financial damage”
Steps involved in marketing research process are as follows:

1. Identification and Defining the Problem
2. Statement of Research Objectives
3. Planning the Research Design or Designing the Research Study
4. Planning the Sample
5. Data Collection
6. Data Processing and Analysis
7. Formulating Conclusion, Preparing and Presenting the Report.
Marketing research exercise may take many forms but systematic enquiry is a feature
common to all such forms. Being a systematic enquiry, it requires a careful planning of the
orderly investigation process.
Though it is not necessary that all research processes would invariably follow a given
sequence, yet marketing research often follows a generalised pattern which can be broken
down and studied as sequential stages.
The various stages or steps in the marketing research process are discussed below:
1. Identification and Defining the Problem:

The market research process begins with the identification “of a problem faced by the
company. The clear-cut statement of problem may not be possible at the very outset of
research process because often only the symptoms of the problems are apparent at that stage.
Then, after some explanatory research, clear definition of the problem is of crucial
importance in marketing research because such research is a costly process involving time,
energy and money.
Clear definition of the problem helps the researcher in all subsequent research efforts
including setting of proper research objectives, the determination of the techniques to be
used, and the extent of information to be collected.
It may be noted that the methods of explanatory research popularly in use are—survey of
secondary data, experience survey, or pilot studies, i.e., studies of a small initial sample. All
this is also known as ‘preliminary investigation’.
2. Statement of Research Objectives:

After identifying and defining the problem with or without explanatory research, the
researcher must take a formal statement of research objectives. Such objectives may be stated
in qualitative or quantitative terms and expressed as research questions, statement or
hypothesis. For example, the research objective, “To find out the extent to which sales
promotion schemes affected the sales volume” is a research objective expressed as a
statement.
On the other hand, a hypothesis is a statement that can be refuted or supported by empirical
finding. The same research objective could be stated as, “To test the proposition that sales are
positively affected by the sales promotion schemes undertaken this winter.”
Example of another hypothesis may be: “The new packaging pattern has resulted in increase
in sales and profits.” Once the objectives or the hypotheses are developed, the researcher is
ready to choose the research design.
3. Planning the Research Design or Designing the Research Study:
After defining the research problem and deciding the objectives, the research design must be
developed. A research design is a master plan specifying the procedure for collecting and
analysing the needed information. It represents a framework for the research plan of action.
The objectives of the study are included in the research design to ensure that data collected
are relevant to the objectives. At this stage, the researcher should also determine the type of
sources of information needed, the data collection method (e.g., survey or interview), the
sampling, methodology, and the timing and possible costs of research.
4. Planning the Sample:

Sampling involves procedures that use a small number of items or parts of the ‘population’
(total items) to make conclusion regarding the ‘population’. Important questions in this
regard are— who is to be sampled as a rightly representative lot? Which is the target
‘population’? What should be the sample size—how large or how small? How to select the
various units to make up the sample?
5. Data Collection:
The collection of data relates to the gathering of facts to be used in solving the problem.
Hence, methods of market research are essentially methods of data collection. Data can be
secondary, i.e., collected from concerned reports, magazines and other periodicals, especially
written articles, government publications, company publications, books, etc.
Data can be primary, i.e., collected from the original base through empirical research by
means of various tools.
There can be broadly two types of sources

(i) Internal sources—existing within the firm itself, such as accounting data, salesmen’s
reports, etc.
(ii) External sources—outside the firm.
6. Data Processing and Analysis:
Once data have been collected, these have to be converted into a format that will suggest
answers to the initially identified and defined problem. Data processing begins with the
editing of data and its coding. Editing involves inspecting the data-collection forms for
omission, legibility, and consistency in classification. Before tabulation, responses need to be
classified into meaningful categories.
The rules for categorizing, recording and transferring the data to ‘data storage media’ are
called codes. This coding process facilitates the manual or computer tabulation. If computer
analysis is being used, the data can be key punched and verified.
Analysis of data represents the application of logic to the understanding of data collected
about the subject. In its simplest form analysis may involve determination of consistent
patterns and summarising of appropriate details.
The appropriate analytical techniques chosen would depend upon informational requirements
of the problem, characteristics of the research designs and the nature of the data gathered.
The statistical analysis may range from simple immediate analysis to very complex
multivariate analysis.
7. Formulating Conclusion, Preparing and Presenting the Report:

The final stage in the marketing research process is that of interpreting the information and
drawing conclusion for use in managerial decision. The research report should clearly and
effectively communicate the research findings and need not include complicated statement
about the technical aspect of the study and research methods.
Often the management is not interested in details of research design and statistical analysis,
but instead, in the concrete findings of the research. If need be, the researcher may bring out
his appropriate recommendations or suggestions in the matter. Researchers must make the
presentation technically accurate, understandable and useful.
LIMITATIONS OF MARKETING RESEARCH
Inspite of the many advantages there are also certain limitations of marketing research.
These limitations are briefly discussed below:
1. May not be an answer to all problems Marketing research cannot provide solutions to all
business problems. Marketing research will help the marketers to the extent of providing
accurate information by making use of samples and various statistical tools. To obtain
optimum results, the user of the information should see to it that errors due to statistical tools
are eliminated to arrive at exact results.
2. May be difficult to arrive at suitable solutions when faced with too complex market
problems When faced with complex problems, the researcher may have to use a lot of time,
money and techniques to arrive at the answers. The result findings will be accurate only if the
researcher has the appropriate training to carry out the research.
3. Marketing research, though uses various techniques of science, is not an exact science, so
the conclusions drawn are often not accurate. Further, the research is carried out on
consumers, suppliers, vendors, etc., who may not be able to correctly express their attitudes,
beliefs, perception, motivation etc. So, the results or conclusions arrived at may not be very
accurate. This is because it is concerned with the study of human behaviour, which is always
very difficult to predict.
4. Often, in business organisations, there is not much interaction between the marketing
research department and the main research executives. So, when the research department is in
segregation, it can make research ineffective.
5. Due to paucity of time and wanting of quick results, researchers carry out research via
telephones or mobiles, which may not always be a true representative sample since not
everyone has a mobile phone. Apart from the limitation on penetration, such mobile phone
methods can lack depth due to the inability of the researcher to obtain detailed information
from the respondents. Further, there could also be inconsistencies which usually emerges
when data is self-reported (as in case of mobile phones).
6. Effectiveness of the marketing research will to a great extent depend upon the ability of the
researcher carrying out the study. It can be effectively and profitably carried out by persons
who have sound knowledge of statistical tools, data processing and operational research etc.
However, often such competent and expert personnel are not easily available.
7. Marketing research only provides suggestions not ready-made solutions to marketing
problems. It is a tool which will help marketing managers to take decisions. The effectiveness
of marketing research will depend upon the experience, judgemental ability and skill of the
marketing decision maker.
8. Marketing research can only predict possible future tendencies and so the conclusions may
not be hundred per cent dependable. Marketing research only helps to make an estimate about
possible future situations. So the conclusions from the study arrived at may not be complete,
perfect or accurate as it is based on predictions of future situations, which is again uncertain.
The guidance offered can also work out to be outdated at the time of taking current marketing
decisions.
9. Marketing research is a costly, time consuming and lengthy activity. Marketing research is
costly since it requires engaging the services of experts in the fields of Economics,
Management, Statistics, Computer, etc., who have the necessary expertise, knowledge,
maturity and skill. The organisation needs to invest in advance training and pay for engaging
the services of such experts. The marketing research also needs to be carried out in the form
of various steps which have to be completed in an orderly manner over a long period of time.
By the time the research findings are available, it may prove to be old and outdated in case of
current marketing problems.
10. Non availability of qualified staff and resistance by marketing executives. Research is to
be carried out by professional researchers with suitable qualification, training and experience
who may not be easily available. There could also be resistance from marketing researchers if
they feel that the findings of the research are more academic in character and lack practical
utility. This, they may feel will not be useful in taking policy decisions. So, a lot of care
needs to be exercised to ensure that conflicts between researchers and executives do not arise,
otherwise, it may act as a limitation to the marketing research activity.

Market Research

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MARKET RESEARCH

Steps involved in marketing research process are as follows:

1. Identification and Defining the Problem:

2. Statement of Research Objectives:

3. Planning the Research Design or Designing the Research Study:

4. Planning the Sample:

There can be broadly two types of sources

(ii) External sources—outside the firm.

6. Data Processing and Analysis:

7. Formulating Conclusion, Preparing and Presenting the Report:

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