SCOPE OF MR

1. Product research: -
 Design, development and testing of new products as well as the
improvement of the existing one,
 Analysis of Consumer durables and technical products; after sales
services’
 Packaging – powerful promotional tool, suitable market segment
strategies
2. Sales research: -
 It is concerned with all the selling activities of the firm,
 It includes examining the sales outlet territories in terms of sale
 Effectiveness of sales force & identifying their performance
Cont…

3. Customer Research: -
 It studies the buying behavior of the customers
 Sociological, economic & psychological factors that influence the
decision of the customers
 It provides customer’s opinion, attitude & suggestions for their &
competitor’s brand.
4. Pricing Research: -
 One of the major factors that affects the success of the firm.
 Price depends on the no. of factors i.e nature of demand, extent of
competition, technological development etc
 In case of new product development the firm may undertake test
marketing. In different locations providing products at varying
prices
 In case of established product the firm would like to know how
much sensitive customers are to price change .
 In case of decline in the cost of production the firm is in dilemma
whether to reduce the price or provide a better quality.
5. Advertising Research: -
 Media Research: - T.V., Newspaper, Magazines, Radio. Here the
main problem is to choose the right media
 E.g in case of rural areas the reach of newspaper is the most but the
main problem over there is illiteracy
 Copy Testing: - final film has to be tested before it is released by the
firm as an advertisement.
 Due to the liberalization of the economy, more and more firms are
allocating larger budget in advertisements.
Threats to MR
 Excessive interviewing: - it annoys the respondent too much that
they stop entertaining from the next time.
 Lack of consideration & abuse of respondents: - the respondent
don't pay much attention to the researcher’s question as a result they
end up giving wrong answers and also sometimes the researcher is
not welcomed properly by the respondent.
 Use of MR as sales ploy: - a major threat to the research process,
most of the respondents misunderstand the researcher for a
salesperson, they think this as another mode of selling things, so this
hampers the research a lot.
THE MARKET RESEARCH PROCESS
 1.Identify the problem

2.Choose the research design

3.Determine the sources of data

4.Design data collection forms

5.Determine sample design &

Sample size

6.Organize & conduct the field

survey

7.Analyze & interpret the

collected data

8.Prepare the research report

1.
 Sample & Sampling units: -the individuals or objects whose
characteristics are to be measured are called sampling unit
 Time and space boundaries: -
‘Marketing managers continually run the risk of making right
decision at the wrong.’
 Product features, & consumer preferences: - buying behavior,
personality traits, style and color preference
 Specific environmental conditions: - means how the unit respond
to price changes, how the behavior of certain firm changes under
specific economic conditions
2.
 A research design specifies the methods & procedures for
conducting a particular study.
 There are three types of research designs depending upon the
nature of the particular study;
A) Exploratory :- it focuses on the discovery of ideas and is
generally based on secondary data. It is used when the topic or
issue is new and when data is difficult to collect for eg comparison
between smokers and non smokers health problem
B) Descriptive: - this research is undertaken when the researcher
wants to know about the characteristics of certain groups such as
age, sex, income level etc.
C) Causal: - it tells cause & effect relationship between two or more
variables
3.
 Primary: - first hand data
 Secondary: - data referred from magazines, journals , old
publications reports etc
It is best to look into existing data with a view to examine their
suitability for the research.
It is only when such secondary data are invalid, inadequate &
unreliable that fresh data is needed to collect
4.
 Observation: - this data is nonreactive and can be collected
without the direct participation of the respondent. Attitudes,
opinions, motivations cannot be observed.
 Surveys: -
personal- when detailed information is to be collected
telephonic- for limited information
by mail- sending the questionnaires by post
5.
 Another important aspect which forms a part of research is sampling
plan.
 The researcher has to decide between census or sample survey.
 Before choosing the sample design he has to make choice between
probability & non-probability sampling.
 The sample design is to be selected now which depends upon the
suitability and availability of sample frame.
 Now there are two basic approaches to chose sample size- practicl
or ad hoc approach and statistical approach. The researcher should
follow the later one as it is based on well defined principles.
 The sample size will depend upon the cost considerations.
6.
 Another important aspect is interviewing and the supervision of
field work.
 Respondents generally hesitate to give information unless
approached with tact, initiative & intelligence.
 Supervision of field work is equally important to ensure timely and
proper completion of the survey.
7.
 Once the field survey is over it is very necessary to tabulate,
interpret and analyze the data in a meaningful manner, it can be
done by the following four steps;
A) Measurement of central tendency
B) Cross- tabulate data to ascertain relationships
C) Calculate the correlation coefficient & regression analysis between
variables
D) Undertake multivariate analysis
 It is necessary that the researcher gives as much importance tot the
analysis and interpretation of data as he has given to their
collection.
8.
 Research report is an important part of the whole research process,
a poor report on a good research will undermine its utility. The
researcher should follow certain Principles while writing a report
they are;
A) Objectivity
B) Clarity in the presentation of ideas
C) Use of charts and diagrams
 The essence of a good research report is its findings and
recommendations, the researcher should not complicate the report
by putting too much details about the research design & statistical
findings as management is not much interested in such details.
 DATA SOURCES

PRIMARY SECONDARY
 Primary Data

Observation Qualitative Choice of survey

Method Method Method
Methods of observation
1. Structured-Unstructured: -
2. Disguised-Undisguised
3. Natural Setting-Laboratory Setting
4. Direct-Indirect
5. Human-Mechanical
Qualitative Methods
1. Interviewing: - it is one of the most difficult task as it requires a
rare combination of intelligence, initiative and adequate attention.
Conditions for a successful interview: -
 Availability of information with the respondent
 Cognition
 Motivation
The Interviewer’s task: -
 Locating the sample members
 Obtaining the interview
 Asking the Questions
 Recording the Answers
Cont…
Interviews for Qualitative Research: -
 Depth Interview: -When a researcher is interested in in-depth
investigations of perceptions, attitudes or motivations of the
respondents, a formal or structured interview will not be suitable.
For this purpose an unstructured is more suitable.
Advantages: -
 It is able to discover hidden motivations which really determine
consumer behavior.
 It may lead to the development of motivational pattern w.r.t a
particular brand or other action under investigation.
 It provides strong stimulus to the insight of the interviewer.
Cont…
Disadvantages: -
 No systematic structure for the interpretation of information.
 The information obtained is non-quantifiable and purely based on
human-judgment.
 It needs more training on the part of interviewer.

2. Focus-group Interviewing: -a small number of representative

consumers say about of 8 people are collected for interviewing.
Generally the group selected is homogeneous. Groups are formed
in no. of ways, such as telephonic screening, field survey etc.
2. Questionnaire
1. Structured-Non-disguised: -
 Here the listing of the questions is in a pre-arranged manner and
the object of enquiry is revealed to the respondent.
 It enables systematic collection of information and in an orderly
manner.
 This type of questionnaire have straightforward approach, also it is
easy for the less educated person also to answer.
2. Structured-disguised: -
 The researcher does not disclose the object of the survey.
 He feels that if the respondent comes to know about it he may not
get the necessary or correct information.
Cont…
 Eg in case of insurance policy, if asked about the income of the
respondents.
3. Non-structured-Non-disguised: -
 The questions are not into a fixed order i.e it is left entirely upon
the researcher which pattern they will follow
 And the purpose of the enquiry is disclosed to the respondents.
4. Non-structured-disguised: -
Designing a Questionnaire
1. Type of information to be collected: -
 Facts: do you own a car?
 Quasi facts: -When did you buy the car?
Do you eat fruit everyday?
 Awareness or penetration of information: - to know about the
awareness of an ad campaign, the researcher must conduct two
studies first soon after its launching & second one near by the same
date to check the increase in awareness.
 Opinions: - verbalization of the attitude. The problem is that the
respondent can give opinion without knowing the subject.
 Attitude: -they give indication of the past & future behavior of the
respondent.
 Reason
2. Type of Questions: -
 Open-ended questions: - here the respondent has complete freedom
to decide the form, length & detail of the answer.
 Dichotomous questions: - it has only two answers in the form of
‘yes’ or ‘no’ Eg. Do you like to watch movies?
Third alternative can be included if the respondent is unsure like
neither like nor dislike
 Multiple-choice questions: - the respondent is offered to or more
choices. Eg. Which of the brand/brands do you use for washing
clothes? Rin __ Surfexcel___ ariel__ tied___
3. Phrasing of the question: -Don’t you think it is a sub-standard product?
Do you think it is a sub-standard product?
4. Order of the question: - in the beginning general questions should be
asked from the respondent in order to built a rapport with him/her.
5. How many questions are to be asked? The researcher has to sustain
the interest of the respondent so too lengthy questionnaire can be a
disadvantage and the response can be quite poor.
6. Layout of the questionnaire: - the questionnaire should have easy
looks i.e. it should be short & printed on superior quality paper so that
writing with pen or pencil is smooth. proper spacing between the
words should be given, a single page should not be crowded with too
many questions.
Cont…
7. Mail questionnaire: -
 Mail questionnaires should be shorter other wise the response rate
would be affected adversely.
 The wording should be extremely simple so as to avoid any
misunderstanding.
 Wherever necessary suitable explanations should be provided so
that the respondents understand the questions properly.
 A covering letter should be there to explain the purpose and
importance of the survey.
 In case of lengthy questionnaire, it is desirable to send an advance
letter seeking the cooperation of the respondent.
8. Pre-Testing the questionnaire: - it implies that it is tried out on few
respondents and their reaction to the questionnaire is observed. It
helps the researcher to decide whether any changes are required in
the content or wordings etc. Interviewers also became familiar with
the problems they’ll face while collecting data.
9. Important considerations while designing a questionnaire: -
 Specify the information required under the study.
 Select the type of questionnaire and the method for its
administration.
 Determine the type & content of each question.
 Be careful in phrasing each question.
 Decide the sequence of the questions.
Cont…
 Determine what form of response each question is likely to have
and provide space accordingly.
 Decide the no of questions/size of the questionnaire.
 Determine the layout of the questionnaire.
 Pre-test the questionnaire among a small number of respondents.
 Finalise the questionnaire and use it for the proposed survey.
 Secondary Data

Internal External
Internal sources
1. Accounting Records: -Sales invoice, customer data , items ordered,
quantities ordered, disc allowed etc.
2. Sales force reports: -
3. Miscellaneous reports: -any study done earlier on marketing problems
of the company, special audit etc.
4. Internal experts: -experts working in the company like product
managers, marketing research managers PR personnels are good
source of data.
External sources
1. Government Publications: -
 Regular publications such as census data, RBI bulletin, journals
like Agriculture situation in India, the Indian labor year book etc.
2. Non-Government Publications: -
 One major source of information is National Council of Applied
Economic Research (NCAER) which is a premier research institute
in applied economics in India.
Research Design
 Research Design is the plan, structure, and strategy of investigation
conceived so as to obtain answers to research questions and to
control variance.
-Kerlinger
The definition consists of three important terms-plan, structure and
strategy.
The plan is an outline of the researcher scheme on which he has to
work.
Structure is the more specific outline &
Strategy shows how the research will be carried out.
Cont…
 “A Research Design is the arrangement of conditions for collection
and analysis of data in a manner that aims to combine relevance to the
research purpose.”
keeping the above definition in mind one may split the over all
research design into the following parts;
a) The sampling design which deals with the method of selecting items to
be observed for the given study,
b) The observational design which relates to the conditions under which
the observations are to be made,
c) The statistical design which concerns with the question of how many
items are to be observed & how the information & data are to be
analysed,
d) The operational design which deals with the techniques by which the
procedures specified in the sampling, statistical & observational
designs can be carried out.
Need for research design
 It facilitates the smooth sailing of the various research operations,
thereby making research as efficient as possible yielding maximal
information with minimal expenditure of effort, time & money.
 It is needed for advance planning of the methods to be adopted for
collecting the relevant data & the techniques to be used in their
analysis, checking the availability of staff, time & money.
 The design helps the researcher to organize his ideas in a form
whereby it will be possible for him to look for flaws and
inadequacies.
 Therefore preparation of the research design should be done with
great care as any error in it may upset the entire project.
Features of a good design
 A good design is economical, flexible, appropriate and efficient.
 Generally the design which minimizes bias and maximizes the
reliability of the data collected and analysed is considered a good
design.
 A good design is supposed to yield maximal information & provide
an opportunity for considering many research problems.
 The question of a good research design is related to the purpose or
objective of the research problem and also with the nature of the
problem to be studied.
 So one single design cannot serve the purpose of all types of
research problems.
Cont…
An appropriate research design involves the following factors;
 The means of obtaining information,
 The availability & skills of the researcher & his staff, if any
 The objective of the problem to be studied,
 The nature of the problem,
 The availability of time & money for the research work.
Types of research design
1. Exploratory Research: -
 It generally focuses on the discovery of new ideas.
 An exploratory research is generally based on the secondary data
that are readily available. It does not have a formal and rigid design
as the researcher may have to change his focus or direction,
depending on the availability of new ideas and relationship among
variables.
 E.g in a business where sales have been declining for past few
months, the possible explanation could be deterioration in the
quality of the product, increased competition, inadequate or
ineffective advertisement , In such cases the research is mostly
carried out to find out the cause.
Cont…
The following three methods in the context of research design for
such studies are talked about:
 Survey of the concerning literature: - it is the most simple &
fruitful method of formulating precisely the research problem or
developing hypothesis. Hypothesis stated by earlier workers may
be reviewed & their usefulness be evaluated as a basis for further
research.
 Experience Survey: - the survey of people who have had practical
experience with the problem to be studied. for such a survey people
who are competent and can contribute new ideas may be carefully
selected as respondents to ensure a representation of different types
of experience.
 Analysis of insight-stimulating examples: - this method consists
of the intensive study of selected instances of the phenomenon in
which one is interested. for this purpose the existing records, if any
may be examined, the unstructured interviewing may take place, or
some other approach may be adopted. E.g. the reactions of
individuals from different social strata.
2. Descriptive Research: -
 Descriptive studies are well-structured and rigid in nature.
 They are factual and very simple, the objective of the study is to
answer the ‘who, what, when, where, and how’ of the subject under
investigation. E.g when the researcher is interested in knowing the
proportion of people in a given population who have behaved in a
particular manner, making projections of a certain thing.
 It can be divided into two broad categories;
A) Cross-sectional studies: - it is concerned with a sample of
elements from a given population. It deals in with households,
dealers, retail stores etc. it is of two types: -
• Field studies: - life situations like communities, schools, factories
etc.
Cont…
They ex-post-facto (after the fact or action) inquiries that find inter-
relations among variables in a real setting.
• Survey research:- it has a wide scope i.e. detailed information can be
obtained from a large sample of a large population.
B) Longitudinal studies: - they are based on panel data & panel
methods. A panel is a sample of respondents who are interviewed and
then reinterviewed from time to time. Panel data relate to the
repeated measurements of the same variables at regular intervals say
weekly, monthly or quarterly.
3. Causal Designs: - it investigates the cause & effect relationship
between two or more variables. Suppose a manufacturer has sold his
product at two points of time t1 & t2 the sale in t2 time is much
higher than in the previous year. During that particular year the firm
the firm has launched an ad also for the product now the
manufacturer is interested in knowing whether the ad has caused
increase in sales in the year t2.
Comparison b/w exploratory &
descriptive research
Research Type of Study
Design Exploratory/ Formulative Descriptive/Diagnostic

Overall Design Flexible design(design must Rigid design(design must

provide opportunity for make enough provisions for
considering diff aspects of the protection against bias &
problem) must maximize reliability)
i) Sampling Non-probability sampling Probability sampling
Design design(purposive or judgment design(random sampling)
sampling)
ii) Statistical No pre-planned design for Pre-planned design for
Design analysis analysis
iii) Observatio Unstructured instruments Structured or well thought
nal design instruments
iv) Operationa No fixed decisions about the Advanced decisions about
l design operational procedures operational procedures
What is Sampling?
 Sampling may be defined as the selection of some part of an
aggregate or totally on the basis of which judgment or inference
about the aggregate or totality is made.
 In other words it is the process of obtaining information about an
entire population by examining only a part of it.
 The items so selected constitute what is technically called a sample,
their selection process or technique is called sampling design and
the survey conducted on the basis is described as a sample survey.
 Sample should be truly representative of population characteristics
without any bias so that it may result in valid and reliable
conclusions.
Need for sampling
 Sampling can save time and money, i.e. it is less expensive than a
census study & produces results at a relatively faster speed.
 Sampling may enable more accurate measurements for a sample
study is generally conducted by trained and experienced
investigations.
 Sampling remains the only way when population contains infinitely
many members.
 It remains the only choice when a test involves the destruction of
the item number study.
 Sampling usually enables to estimate the sampling errors and, thus,
assists in obtaining information concerning some characteristics of
the population.
 Sampling techniques

Probability Non-Probability
sampling sampling

Random convenience

Systematic
Judgement/
Stratified
puposive

Multistage snowball

cluster

Quota
1. Probability sampling
 RS: - this is the method according to which each & every member
of a given population is given equal chance for getting selected in
the sample. Here the element of chance is distributed equally and
there fore there is no prejudice or partiality, hence this method is
popularly used in all economic, social & political surveys.
 S.S: - it is based on well defined procedure or system . This method
consist of selecting any one of the numbers at random & thereafter
selecting other members, according to the application of a
systematic procedure.
e.g if out of 40 different roll no.s one of the no. is selected at
random & if that happens to be 12 then according to the system the
other no.s will be 12, 24, 36, 48, 20, 32 etc.
Cont…
 ST.S: - according to this method a given heterogeneous population is
divided into a no of homogenous classes or divisions or strata's from
each division, or starta a no. of members are selected at random. This
no. is in proportion to the size of the stratum. Advantage of this
method is that each division is propotionally & properly represented in
the entire sample.
 M.S: - this method is based on a samplic procedure i.e. conducted at
random, through a no. of stages. At each stage the representative
sample of items is obtained. Hence a very large population is
efficiently represented by a sample.
 C.S: - a cluster stands for a group of persons or things if 100 MBA
students are to be selected from 5 institutes A,B,C,D,E then each
institute as a cluster of students
suppose there are 200 students in each cluster & then the sample
would be 20+20+20+20+20=100. cluster sampling provides
effectively representative members without bias or prejudice.
2. Non-Probability sampling
 P.S/J.S: - the organizers of the inquiry purposively chose the
particular units of the universe for constituting a sample on the basis
that the small mass that they select out of a huge one will be typical
or representative of the whole.
The judgement of the organizer plays an important part ion the
sampling design. In this design personal element has a great chance
of entering into the selection of the sample.. Thus there is always
the danger of getting bias results, but the investigators are impartial,
work without bias and have the necessary experience so as to take
sound judgement.
Cont…
 Q.S: - it refers to the method of selecting a fixed no. of members
from a certain population. For instance if a particular organization
lady candidates are given 30% quota from all the jobs in that
organization then the members are selected according to that 30%
reservation. Suppose there are 150 jobs in a particular office then
30% of these could be 45. there are two methods in fulfilling
requirements of quota members random selection or in the order of
merit.
 C.S:- it refers to the method of selecting sample as per the
convenience of the researcher. This type of sampling is also called
accidental sampling as the respondents in the sample are included
on the account of their availability on the spot of survey.
 SN.S:- in this type of sampling the additional units are obtained on
the basis of information given by initial sample units. These units
may provide other names to the researcher.
E.g: a market research agency may use telephone to contact some
persons and ask them the names of the individuals who in their
opinion are appropriate respondents for the concerned study.