1
UNIT
SUBJECT
: 1
: MARKETING RESEARCH
:
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Syllabus
Introduction :

Definition of marketing research

Nature and scope

Marketing research

An aid to rational decision making

Marketing research methodology.
RESEARCH :

Research can be defined as
(1) A Methodical, unbiased and complete investigation of asubject matter to establish principle or
(2) Investigation orf aproblem to discover pertinent information to help solve it
There are two types of research :

1.
Basic research
2.
Applied research.
Basic research:

The research which is devoted to creation of new knowledge with no intention of applying that knowledge to an existing problem.
Applied research:

It is the use of existing knowledge to finde a solution to new problem.
DEFINITION:

The American marketing association defines the marketing research as follows.
Marketing research is function which links the consumer, customer and public to the marketer through information

information used to identify and define marketing opportunities and probles: generate refine and evaluate marketing actions, monitor marketing performance and improve understanding of marketing performace and improve understanding of marketing as a process.
MR specifies the information required to address these issues, designs the method for collecting information, manages and implememts the data collection process; analyse the results and communicate the findings and their implications.
1.
What is the need for marketing research?
Many manufacturers distribute their products through their own sales personnel to wholesalers, who in turn sell those products to retailers, who then make the sale to final consumer, many manufacturers have little direct contact with the retailers of their products and no contact at all with the final consumers of their products. Thus marketing manager in such firms are separated from their final consumers by geographical distances as well as by a number of layers of people within their wholesalers and retailers organization. Even though retailers and service organisatio have direct contact with their customers managers of retail operations often do not have much knowledge of their customers , managwr of retail operations often do not have much knowledge o ftheir customers attitude, opinion and preferences because sales clerks and other store personnel do not pass customer coments to their managers . Thus most of the customers who become dissatisfied with retailer just move to other retailers and become former customer without retailer even knowing why? Retailer must also have knowledgw of potential customer i.e., who are not present customers but could identify them.
Management
Research
Findings
MARKETING
RESEARCH
Feed Back
Consumer
Thus marketing research bridges the gap between management and consumer.

2
1.Define marketing research.
The American marketing association defines marketing research as follows.
Marketing research is function which 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 specifies the information required to address these issues , designs the method ofr collecting information, manages and implements the data collection process; analyse the results and communicate the findings and their implications.

Marketing research is the systematic, objective and exhaustive search for study of the facts relevant to any problem in the field of marketing by Crisp.R.D

Marketing research is “ The systematic and objective search for the analysis of information relevant to the identification and solution of any problem in the field of marketing, by Green and Tull.
3. Scope of Marketing research
Manager need information from their final consumer in order to satisfy their customer wants and needs and to design effective marketing programmes . MR is used to find solution to any problem of marketing. It anticipates a problem or can diagnose any existing problem. MR has application in all areas such as
(1)Product Research

This is conducted to position the product.

It also helps in forecasting sales potential and to analyse the market trend for the product.

This also includes packaging research and best marketing of new products.
(2) Promotion Research:


Promotion research is related to personal selling research, advertising research, public relations research and sales promotion research

In advertising research, there is media research and pre
 testing and post
 testing of the advertisements.

In personal selling research activities like analysis of sales force effectiveness, analysis of selling practices and establishment of sales quota are included.
(3)Distribution Research:


This research includes location and design of distribution outlets, transportation and logistics studies, dealer survey etc.,

This answers to questions such as What distribution channel is the target market most likely to use when purchasing the product? Is organization pricing in line with what the target market expects to pay for the product when purchased through the channel? Is organization pricing in line with what the target market expects to pay for the product when purchased through the channel? Does the pricing include the size of margin the channel traditionally expects? Will the channel be able to provide the service or support needed for the product.
(4)Pricing research:


It includes pricing studies about elasticities marginal analysis, cost analysis and perception regarding price.

3

This answers questions such as How much value does the target market place on the product? What products are they willing to substitute? What advantage in features or benefits or appeal does the organization product have that might allow it to charge a higher price?
(5) Business economic and corporate Research:


This include studies for short term and long term forecasting.

Business trends are also analysed

Macro level pricing studies are under taken

This research includes plant location and export market studies.
(6)Corporate responsibility research:


To make environment friendly organization ecological impact studies are conducted apart form these, there are studies on consumers right, social values, social change and legal constraint.
(7)Consumer Research:


This research answers questions such as Who is our target audience? What do they expect? How do the consumers behave? Why do they behave like this?etc., All consumer related questions are answered by consumer research.
(8)Qualitative research:


Psycho graphic and life style studies are qualitative research

Quantitative research is an understanding of the perceptions, attitude and predisposition of a

Certain target segments towards a product, service, advertising concept or a need area.
4.. What is the process of marketing research OR Marketing research procedure
Marketing research is undertaken in the effort to learn something reliable about a marketing problem that is faced by manageer. Steps involved in marketing research are
1.Problem Definition :
==================
The problem should be stated specifically and the use of the research must be made clear. As the definition of problem is foundation for the research more important must be given so that it isunderstood clearly by all those

4 involved in the research. If the problem is stated vaguely or if the use of the research are not made clear or in a wrong manner then the research results may prove useless to the manager.
2.Research design :

===============
It is the basic plan which guides the data collection and analysis part of the research. It is the framework that specifies the type of information to be collected, the source of data and the data collection.
3.Research design process involves :

===========================
1.
Defining the problem.
2.
Specify the approximate value of information :

It involves determination of amount that can be spent on the project.
3.
Select the data collection method

i.e to decide whether to go for primary or secondary data. By what means data can be collected.
4.
Select the measurement techniques:

Determine whether and how to use the questionnaire, observation attitude scale etc.,
5.
Select the sample determine:

Determine who and how many respondents or objects to measure
6.
Basic analysis of data:

Determine the appropriate means of analyzing the data to provide required information.
7.
Specify time and financial cost.
8.
Prepare research proposal:

Summarising the results of all the previous steps in the form of research proposal.
4.Field work :

==========
After research design has been finalized the research department must supervise or subcontract the task of collecting the data. This part of the research process chance for error so it should be handled carefully.
5. Data Analysis :

=============
This is to extract meaning ful information from the data. Here the data are processed analysed and then interpreted.
6.Report preparation :

=================
This involves preparation of managerial oriented report presenting major findings and recommendation coming from the study.
The report should begin with a short statement of the problem and the major findings.
The report should be written to facilitate the understanding and interest of the marketing executives and their ability to derive actionable information.
DATA Types
Data can be broadly classified into two as primary data and secondary data.
Primary data are the data that have been observes or recorded by researchers for the first time of their knowledge.
Secondary data may be described as those data that have been compiled by some agency other than the user.

5
MARKETING DATA
PRIMARY DATA
METHODS OF GENERATING PRIMARY DATA :

===========================================
PRIMARY DATA
Internal source
SECONDARY
DATA
External source
Survey Observation Panels Experiment
The data can be obtained from the entire population or from a representative sample from the population.
When data is obtained from entire population it is called as census surve and a representative sample then it is called as sample suvey.
The decision about selecting sample survey or census survey depends up
(1) Size of the population
(2) Characteristics of the population.
(3) Time, cost and other factor which the researcher consider important.
Surveying can be defined as a method employed to collect information from a representative sample of individual consumer either by asking them questions verbally or by using a questionnaire.
The decision to use particular method or combination of methods depends upon the type of data, the ease with which data can be obtained, available time, the availability of qualified and experienced personnel neede to conduct the survey.
Questionnaires used to collect primary data are classified as
1.
Structured questionnaire
2.
Unstructured questionnaire
3.
Semi structured questionnaire
4.
Disguise questionnaire
5.
Undisguised questionnaire

6
Methods of survey
Personal interview
Group interview
Mail survey
Telephone interview
Indepth interview
Structured interview:

Here the question and answer are determined and use only closed end questions.
Unstructured interview:

The questions are rather loosely pre determined. The respondent is free to respond in hiw own words and are open end questions.
Semi structured questionnaire:

Here the questions are fixed or predetermined, but open ended, i.e., it allows the respondent to answer whatever they feel is appropriate.
Disguised questionnaire:

The questions on Disguised questionnaire normally do not reveal the purpose of the study.
Undisguised Questionnaire:

The questions reveal the purpose of the study.
In marketing research most common questionnaire are of the structured undisguised type.
I. Survey :


It is the most popular method for obtaining primary data.

More information can be gathered by this method than by any other method.

The survey method offers more flexibility with regard to the time and money reuired to gather the desired data.

Survey method of collection data can be implemented in equal or less time than other methods
(a) Personal interview :

The researcher asks each potential respondent specific questions and records the responses directly face to face.
Advantage:

1.
An interviewer can explain question to the respondent if desired or needed.
2.
An interviewer can observe respondent’s reaction to question.
Disadvantage:

1.
An interviewer however well qualified and experienced, cannot question those who are not at home.
2.
In an area of low population density the cost of interviewing individual household will be high.
(b) Telephone interview:

Contacting potential respondent by telephone for generating primary data is called telephone interview.
The researcher who plans to collect primary data through telephone should restrict himself to a relatively short questionnaire dealing with non personal topics.
In telephone interview method of data collection random sample of household can be selected either by using (1)
Traditional approach (2) Modern approach.

Advantage:

7
1.
As the respondent answer only one question at a time he is not biased by subsequent questions
2.
No field work is involved.
3.
As a number of household can be called relatively within short time the needed information can be obtained quickly.
Disadvantage:

1.
The short questionnaire which must be used limits the amount of data which can be gathered.
2.
Only household who have phone can be called.
(c) Group interview:

The group interview also known as focused group interview. It may be defined as a method of collecting primary data in which number of individuals with common interest interacts with each other.
The method involves interviewing by two or more individuals at the same time. Normal size of the group is from six to eight individuals. The desired information may be obtained through questionnaire and written responses or the discussion can be recorded and ten supplement information cab be gathered from it.
Group interview techniques can be employed by researcher to evaluate
(1) New product or service concept
(2) Brand names
(3) Packages
(4) Advertising or promotional strategies
Advantages:

(1) Respondent comment freely and in detail.
(2) Flexibility
(3) A group can be interviewed in the time required for one personal interview
Disadvantage:

1.
The difficulty of getting a representative sample.
2.
Th possibility of group being dominated by one personnel.
(d) Indepth interview:

The indepth interview is chiefly a tool of psychologists and psychiatrists. When this method is ude by marketing research an individual is interviewed for one or two hours.
Many indepth interviews are disguisd or indirect tests. The individual being interviewed is given the impression that he is being questioned for some reason other than real one.
(e) Mail survey:

In mail survey the questionnaire is sent to the respondent with the assumption that he can read, write and answer open
 ended questions or check appropriate box or answer when the questionnaire is highly structured and contains closed end and multiple-choice question. A covering letter explaining to the potential respondent the purpose of the study and requisition to provide his co
 operation in providing the needed information accompanies the questionnaire.
The mail survey method will reach potential respondents dispersed geographically effectively and economically.
The mail survey is only way a researcher can contact physicians’ executives and other busy professionals.
Advantage:

1.The potential respondent can select his convenient time in answering questions.
2.The mail survey obtains information from hard to contact people and those who are away from home frequently.
This method costs less when geographical distance is considered.
Disadvantage:

1.The return rate of mail survey is low
2.It is not possible to check whether respondent understand question and gives right answers.
3.Most mail questionnaires contain unanswered questions and incomplete responses.

II. Observation:

8
Observation is another method of generating primary data.
The observation can be made either at formal or informal level.
In informal level, marketer or the researcher observes common events in the market place and surrounding environment.
Formal observation is systematic.
Formal observation is subject to checks and controls needed to attain accurate data.
This approach makes researcher
(i) Identify what he wants to observe.
(ii) Evaluate the environment or condition under which observations are made.
(iii) Design a method to quantify the observed information by using direct and indierect method.
(iv) Understand the events which he observes
(v) Determine the reliability of the data collected through observation method.
In studying consumer behaviour researcher may observe a group of consumers in a specific situation and reord their reactions towards particular store product or package.
Classificationof observation method are
(i) Human and mechanical
(ii) Direct and indirect
(iii) Structured and unstructured
(iv) Disguised and undisguised
(v) Controlled and uncontrolled
III.Panel
:

A panel can be defined as a group of individuals, household or firms that provide information to a firm about their behaviour in the market place during a specific firms that provide information to a firm about their behaviour in the market place during a specific time
Classificatin of panel
(I)Longevitu of individuals in the capacity of panel members or retention of paner members.
1.
Continuous panel
2.
Rotating panels
3.
Ad
 hoc panel
(II)Based on functional panel a.
Consumer panel. b.
Dealer panel
 middlemen or channel members. c.
Media audience panel
(III)Based on manner in which data are collectded
(a)Personal interview panekl,
(b)Telephone interview panel
(c)Mail interview panel.
IV. Experimental method :

In this method Experiements are conducted and cause and effect relationship or obtained. These experiments are conducted in controlled or in natural environment.
6.What are the techniques that should be followed to make the respondent co
 operate?
Most respondent are concerned about a.
The time involved in the interview? b.
Type of information they will be asked to provide? c.
How the information will be used?
Same time the interviewer are concerned about
(1) Obtaining the respondents co
 operation

(2) Prepare the way for successful completion of the
9 interview
To obtain appropriate data from respondent the interviewer must
 Tell the respondent who he is, why he is calling and iform that the respondent was randomly selected.

Assure the potential respondent that all information provided by him will be confidential and never connected with the respondent.

Complete the questionnaire in lead pen

Never erase the initial answer provided by the respondent nut simply strike it ut to record the subsequent answer

Ask each question in same order as in structured questioner. If questions are open
 ended, the enumerator should record the answers in exactly the same manner as the respondent answer them.

Work efficiently to conduct the best possible interviews at different times

morning, afterternoon, evening weekend.

Obtain the highest possible completion rate

The respondent should know that his answers ae important and the interviewer feels that his study will help people

Mail , completed questionnaire promptly to the main office to facilitate coding and other data processing operations.

Complete time and expense record should be maintained.
7. What are the difference between questionnaire and shedule?
1.The questionnaires are generally sent through mail to informants or respondents

Shedules are generally filled out by the enumerator.
2.To collect data through questionnaire is cheap and economical since money is spent only in preparing the questionnaire and mailing the same to respondents

Though shedule is expensive since considerable amount of money is spent in appointing enumerator and training them.
3.Field work is required while using shedule

No field work is used for Questionnaire.
4.Non respondent is usually high in case of questionnaire as many do not respond and return the questions without answering all the questions.

Non response is generally low in case of shedule.
5.In case of questionnaire it is not always clear as to who replies the questionnaire

In shedule identity of respondent is known.
6.The time conception is more in case of questionnaire. As the respondent take their own time in replyin g the questionnaire.

In schedules the information is collected well in time as it is filled in by enumerartor.
7.Questionnaire can be used to get information only from literate.

Shedules can be used even to collect information from illiterates.
8.Wider and more representative sample is possible under questionnaire method.

But in schedules there usually remains the difficulty in sending enumerator over a relatively wider area.
10. Distinction between primary and secondary data.
S.No PRIMARY DATA
1.
These are first hand data collected by researcher methods. through various
SECONDARY DATA
1.
These are second hand data collected by some other agency but not by the researcher.
2. Collection is time and cost 2.
Easy and quick collection at less

3.
4.
5. consuming. It is complicated too.
Source of primary data are the sampling unit chosen or the whole population of the study.
Primary data are reliable and accurate when properly collected.
Primary data are latest useful for current problem
10 cost.
3.
Source could be internal or external record.
4.
Supplementary to primary data.
5.
Secondary data are historical
11.Distinction between open end questions and closed end questions.
S.NO Open end questions.
1. It is free answer questions. It shows free responses. It also includes some probing questions.
2.
Closed end questions
It offers limited choices as responses. They may be dichotomous or multiple choice questions.
3.
4.
5.
6.
There is great freedom and degree of openness in answering these questions. They are difficult to answer.
These questions are easy to ask and generally easy to answer.
They make the questionnaire interesting
They are good for educated respondents.
They make the questionnaire obtain straight answers.
An average individual can answer them.
Difficult to analyse and interpret. Easy analysis and interpretation.
Good in personal interview Suitable in mail survey.
12.What are the drawbacks or problem faced when using secondary data ?
I.
Finding Data to suit the project:-
Secondary data do not satisfy immediate needs because they have been compiled for other purposes.So the variations are
(a) Units of measurement
(b) Definition of classes
(c) Recency
(a)Units of measurement:- Consumer income may be measured by individual, family, household, spending units, or tax return depending upon the source. The difference in the units of measurement of these data can be used only for rough approximation.
(b)Definition of classes:- (That is different construction given to classes in different project.) A chain of stores for example may be defined as mote than one store or 4 stores or ten stores or more stores. Although these data may be both accurate and timely, they may be impossible to manipulate to suit a researcher need.
(c)Recency:- (Date they were collected)
Market is dynamic. Data that are valuable one year may be useless the next year. The census for example, contains some of the most indispensable marketing data; yet four to six years after a census is taken, much of the information will have lost its value.
II. Finding data of known accuracy :-

11
After obtaining the secondary data the researcher must determine whether the information is accurate enough for the research to be conducted. Before using the secondary data researcher must analyse and know about the circumstance in which it is collected.
The researcher should also evaluate the source of secondary data. If the researcher obtains secondary data from the party who gathered them then it is implied that the original or primary source is used else if it is procured from elsewhere then it is implied that a secondary source is used. It is always feasible to collect secondary data from original sources, as it will explain how the data were collected. This makes the data reliable.
13.What are the factors that are to be evaluated while considering a secondary data .
When there are two or more secondary data the following factors are to be considered while selecting it
1.Pertinency:-
The data must use (a) the same unit of measurement specified in the project. (b) Must be applicable to the period of time in question and (c) must be derived from the universe of interest.
2.Who collected data: -
The resear4cher must examine the organization that collected the data and the purpose for which they were published. An organization that makes collection and publication of data its chief function is suitable to furnish accurate data.
Discovering the purpose for which data are published to promote the interest of whole population of the study must be considered whereas the data collected is in interest of particular group must be rejected.
3.Data collection method:-
If a source fails to give information of it method of data collection then researcher should not use that particular source of information. If a sample is used in secondary data collection the researcher should analyse.
(a)was sample selected objectively/
(b)was it large enough/
(c)Was it selected from universe of interest.
(d)was the questionnaire adequate for getting the desired information? What kind of supervision was exercised over people who collected the data?
4.General evidence of careful work:-
Here the analysis should be made to find out whether the data collected were properly tabulated or processed.
(i.e) Is the information presented in a well organized manner/ are the table constructed properly?
5. Conflicting Data:-
If several source of data relating to a researcher’s problem are available the data can be submitted to quality control. Statistical tests can be conducted and secondary data can be selected.
14.What are the different types of marketing research ?
Marketing research can be broadly classified into two as
(a) Exploratory research
(b) Conclusive research
Exploratory research:-

Seeks to discover new relationship

Exploratory research results when manager feels that changes are taking place in the market that may open an opportunity for new product or create a problem for existing problem.

Exploratory research is useful to find out the most likely alternative, which are thn turned into hypothesis

Exploratory research is involved when perceived problem is much general.

The research process is circular over a period of time. Here Exploratory research define the hypothesis which are usually tested by conclusive research.
MARKETING RESEARCH

12
Exploratory research
Descriptive research
Conclusive research.
Experimental research
Conclusive research :-
Conclusive research provides information that helps the executive to choose among the variable course of action that is to make decisions.
Conclusive research can be divided into two as descriptive research and experimental research.
Descriptive research
Descriptive research are designed to describe some thing example

Characteristic of user of givern product, the degree to which product use varies with income, age or other characteristics or number of individual who saw a specific TV commercial

Descriptive data do not show direct cause and effect relationships.
Example:- Purchases of a product and income may vary together but this does not prove high income is the ause of purchases.
Experimental research:-

Experimental research are needed to establish cause and effect relationship.
 Experiments create “ artificial situation to obtain the particular data that arte needed and to measure the data accurately.

Experimental research can be conducted in laboratory or in the field.
There are different types of experimental design they are
(1)’After only’ design:-
This desiogn consist of applying the experimental variable(e.g advertising) to an experimental group(e.g consumer) and measuring the dependent variable(e.g. recall of brand name) after and only after experimental variable.
After only experimental design is often used with new product when the before measurement is know to be zero.
Particulars Experimental group
Experimental variable introduced
“After measurement”
Yes
Yes(X1)
Effect of experimental variable = X1 –implicit before measurement
This design is usually used to measure break even or minimum acceptable volume of sales.
2.“Before- after” design:-
The experimenters measure the dependent variable before exposing the subject to the experimental variable and again after exposure to experimental variable. The difference between two is considered to be a measurement of the effect of experimental variable.
Particulars Experimental group
Before measurement
Experimental variable introduced
X1
Yes
After measurement
Effect of experimental variable = (X2-X1)
3.”Before – after with control Group “ Design:-
X2
Here an additional group is considered which is called as control group.

Control group is that group or unit of individual
13 consumers or stores or market area compared to the experimental group to indicate whether or not the treatment are effective.
This “Before – after with control Group “ design was developed to permit measurement of the effect of the experimental variable alone.
Particulars
Before measurement
Experimental variable introduced
Experimental group Control Group
X1 Y1
Yes No
After measurement
Effect of experimental variable = (X2-X1) – (Y2-Y1)
4.”After only with control group” design:-
X2 Y2
Here the experimental and control group are selected in such a way as to be equal. No “ before” measurement is made in either group. The effect of the experimental variable is determined by computing the difference between the two” after measurements”
Particulars Experimental group Control Group
Before measurement
Experimental variable introduced
After measurement
Effect of experimental variable = (Y1 –X1)
No
Yes
X1
No
No
Y1
SECONDARY DATA
Secondary data are those data previously collected for some purpose or to solve a problem other than the one confronting the researcher at a given point of time.
Such data can be obtained internally
Example:

Accounting records, or externally the census of population, trade association reports etc.,
Advantage of secondary data:


Economy is clearly greatest advantage of secondary data.

Secondary data can be more quickly obtained.

Data of this category, colleted in ordinary course of events are less subject to the biases that mignt occur if researcher were to gather the information for a specific purpose.

14
1.
What is marketing research?
2.
What is the need for marketing research?
3.
Define marketing research.
4.
What are the scope for marketing research
5.
What are the different types of research?
6.
What are the essential characteristics of good research?
7.
Explain the process of marketing research.
8.
Explain the methods to collect primary data.
9.
What are secondary data.
10.
Difference between primary and secondary data
11.
Difference between open and closed end questions
12.
Difference between questionnaire and schedule