1 |Page

BIRLA INSTITUTE OF TECHNOLOGY AND SCIENCE Work Integrated Learning Programme Division M.S. Consultancy Management
Second Semester

Course Assignment No :

MARKETING RESEARCH Ist

Submitted by ID. No. Signature:

:
:

GAURAV JAIN 2012HZ58049

2 |Page

S.No

Particulars Introduction

Page No.

Marketing Process

5-6

Marketing Research Process

7-8

Market research inputs at every stage of a typical marketing process. 4 9-13

3 |Page ASSIGNMENT 1 - Explain as to how market research inputs are required at every stage of a typical marketing process. Market research is one of the most important features of the business campaign of most of the companies in the present times be it in the manufacturing industry or service sector. I have structured the assignment in the following parts in order to ensure that none of the points are left:-

Assignment Structure:I. II. III. IV. Introduction Marketing Process Marketing Research Process Market research inputs at every stage of a typical marketing process

4 |Page

I.

INTRODUCTION

Market research is one of the most important features of the business campaign of most of the companies. It is mainly conducted so as to know the demands of the market. Companies can assess by the market research that if their product or service can do well in a particular market or not. Market research is essential for businesses or products that are meant for a particular audience base. One can minimize the risks involved in a business by opting to timely and efficient market research. Businesses must make market research an important part of their business process. One must utilize market research throughout the lifecycle of a business or product. There are numerous benefits that are associated with market research. Market research can help the businesses to communicate with customers or potential issuers. The experience of the existing clientele of businesses is a valuable source of information. The market research can let the businesses analyze how well they are catering to the needs and specifications of the customers. One of the most alluring features of the market research is that it can tell what are the modifications that can make the business grow and what are the practices that should be avoided while doing a business. Market research involves getting feedback from the customers regarding a product and service. This way the consumers can not only feel important but also satisfied as they are involved in marketing process by asking for their feedback in the process of market research. Customers can feel assured of the companys customer service if they are involved in the marketing process. Market research can help businesses to identify new opportunities. If a company is planning for a new product/service launch and want to analyze the preconceived attitudes of people then market research is the best option available. Market research can help the businesses get potential ideas for boosting up their businesses. Businesses can assess the areas that need modification by the means of market research. Market research minimizes the risk by helping the businesses in shaping up new services and products. It can help businesses in identifying what they need for increasing the clientele and retaining the existing clientele. Market research can help the businesses know the exact demand of a product in the current marketplace as the development of any product is dependent solely upon its demand in the present times. One can measure progress and can create benchmarks by the means of the market research. One cannot assess how well the business is performing without pursuing market research. Timely research can enable the businesses to find out loopholes and flaws in a specific product or service launched by them. One can assess the short falls of a brand by pursuing market research. One of the most premium benefits of pursuing market research is that it shows if the modifications brought up in a product can bring positive effects on a business or not.

5 |Page

II. MARKETING PROCESS

Under the marketing concept, the firm must find a way to discover unfulfilled customer needs and bring to market products that satisfy those needs. The process of doing so can be modeled in a sequence of steps: the situation is analyzed to identify opportunities, the strategy is formulated for a value proposition, tactical decisions are made, the plan is implemented and the results are monitored. The Marketing Process in general has the following phases or say steps:

Situation Analysis
A thorough analysis of the situation in which the firm finds itself serves as the basis for identifying opportunities to satisfy unfulfilled customer needs. In addition to identifying the customer needs, the firm must understand its own capabilities and the environment in which it is operating. The situation analysis thus can be viewed in terms an analysis of the external environment and an internal analysis of the firm itself. The external environment can be described in terms of macro-environmental factors that broadly affect many firms, and micro-environmental factors closely related to the specific situation of the firm. The situation analysis should include past, present, and future aspects. It should include a history outlining how the situation evolved to its present state, and an analysis of trends in order to forecast where it is going. Good forecasting can reduce the chance of spending a year bringing a product to market only to find that the need no longer exists. If the situation analysis reveals gaps between what consumers want and what currently is offered to them, then there may be opportunities to introduce products to better satisfy those consumers. Hence, the situation analysis should yield a summary of problems and opportunities. From this summary, the firm can match its own capabilities with the opportunities in order to satisfy customer needs better than the competition. There are several frameworks that can be used to add structure to the situation analysis: 5 C Analysis- company, customers, competitors, collaborators, climate. Company represents the internal situation; the other four cover aspects of the external situation

6 |Page PEST analysis - for macro-environmental political, economic, societal, and technological factors. A PEST analysis can be used as the "climate" portion of the 5 C framework. SWOT analysis- strengths, weaknesses, opportunities, and threats - for the internal and external situation. A SWOT analysis can be used to condense the situation analysis into a listing of the most relevant problems and opportunities and to assess how well the firm is equipped to deal with them.

Marketing Strategy
Once the best opportunity to satisfy unfulfilled customer needs is identified, a strategic plan for pursuing the opportunity can be developed. Market research will provide specific market information that will permit the firm to select the target market segment and optimally position the offering within that segment. The result is a value proposition to the target market. The marketing strategy then involves: Segmentation Targeting Positioning the product within the target market Value proposition to the target market

Marketing Mix Decisions

Detailed tactical decisions then are made for the controllable parameters of the marketing mix The action items include: Product development - specifying, designing, and producing the first units of the product. Pricing decisions Distribution contracts Promotional campaign development

Implementation and Control

At this point in the process, the marketing plan has been developed and the product has been launched. Given that few environments are static, the results of the marketing effort should be monitored closely. As the market changes, the marketing mix can be adjusted to accommodate the changes. Often, small changes in consumer wants can addressed by changing the advertising message. As the changes become more significant, a product redesign or an entirely new product may be needed. The marketing process does not end with implementation - continual monitoring and

7 |Page adaptation is needed to fulfil customer needs consistently over the long-term. III. Process of marketing research Market research, reviewing the following seven steps in the market research process.

Step One: Define Marketing Problems and Opportunities

The market research process begins with identifying and defining the problems and opportunities that exist for the business

Step Two: Set Objectives, Budget and Timetables

Organization objective might be to explore the nature of a problem so it may further define it. Or, perhaps it is to determine how many people will buy the product packaged in a certain way and offered at a certain price. The objective might even be to test possible cause and effect relationships. For example, if the company lower price by 10 percent, what increased sales volume should be expected? What impact will this strategy have on the profits? How much money are the company willing to invest in the companys market research? How much can it afford? Prepare a detailed, realistic time frame to complete all steps of the market research process.

Step Three: Select Research Types, Methods and Techniques

There are two types of research: primary research or original information gathered for a specific purpose and secondary research or information that already exists somewhere. Both types of research have a number of activities and methods of conducting associated with them.

Step Four: Research Design

There are three types of research design used in a marketing research process namely:

1. Exploratory Research Design- is defined as collecting information in an unstructured and

informal manner. Examples: Reading periodicals, visiting competitors premises, examine company sales and profits vs. industry sales and profit, clipping service.

2. Descriptive Research Design- refers to a set of methods and procedure that describe
marketing variables. Portray these variables by answering who, what, why and how questions. Example: consumer attitude survey to the companies services.

3. Casual Research Design - designs allow us to isolate causes and their effects.
a. Casual research is conducted by controlling various factors to determine which factor is causing the problem.

8 |Page b. By changing one factor, say price, we can monitor its effect on a key consequence, such as sales. In other words, casual design allows us to determine causality, or which variable is causing another variable to change.

Step Five: Collect the Data

Often called data collection or survey fielding, this is the point at which the finalized questionnaire Survey instrument) is used in gathering information among the chosen sample segments. There are a variety of data collection methodologies to consider. Basically two types of data information available to a marketing researcher: Secondary data as it name implies, refers to information that has been collected for some other purpose. Primary data - refers to information that has been gathered specifically to serve the research objectives at hand. There are several different methods of collecting primary data including A. Telephone surveys B. Mail surveys C. Door-to-door interviews D. Mall-intercept studies E. New data collection methods are emerging.

Step Six: Organize and Analyze the Data

Once the data has been collected, it needs to be assembled into a format in which it can be analyzed easily. This involves editing, coding and tabulating the responses.

Step Seven: Present and Use Market Research Findings

Once marketing information about the target market, competition and environment is collected and analyzed, present it in an organized manner to the decision makers of the business.

9 |Page

IV. Role of Marketing Research in the Marketing Process Once the researcher has determined which type or types of information are needed, he or she must determine methods of accessing data. PHASE I: Situation Analysis During the first phase of marketing process (Situation Analysis) data is required on the internal and external factors that influence production and sales to formulate an effective marketing strategy. Detailed market intelligence can be obtained by conducting market research using methods such as online and telephone surveys. Demographic data can be sources, or bought from research companies and solicit feedback from former and existing customers by mail. Compiling the information into a comprehensive market research report guides in developing a business' marketing strategy. Utilizing market research, a situational analysis will define potential customers, projected growth, competitors and a realistic assessment of the business. It involves targeting the specific objectives in the business and identifying the factors that will support or hinder those objectives. Techniques Used For external factors/capabilities the most commonly used techniques are PESTLE (Political, Economic, Socio Cultural, Technological, Environmental and Legal) , Porters 5 forces framework while MOST Analysis (Mission, Objective, Strategy and Tactics), Boston Box, SWOT, Ansoff Matrix and Mckinsey 7s and Four view model are used for internal evaluation. Exploratory research design and the use of secondary data can be of great help in performing environmental analysis.

PHASE II: Marketing Strategy Marketing strategy establishes the guidelines for how to use the information gathered from the market research. The marketing strategy should include a path to specific goals, such as reaching a specific market demographic or a distinctive way to position the company and product. The marketing strategy is also useful in defining where the company fits in among competitors: as a leader, follower, challenger or niche company. The answer to the above questions is what one wants. Researching the market is perhaps the easiest way to conquer the market. Market research does not have to be costly, nor does it have to be a complex process. Businesses today are very different from those of the past. Business today is far more aggressive in their pursuit of success. With the growth of

10 | P a g e the Internet, competitiveness has gone global. Millions of businesses compete every day, and it is necessary to arm with the right tools to close the sale. A business that wants to remain competitive and be profitable will need to understand the products that their target market is looking for. This kind of information only comes from marketing research. Not only will they need to understand what products should be brought into the market, but also the success of their current products. Information on what they are doing right and what could use some improvement is vital to a businesss success. It is only with the correct data that a business can create a marketing plan or adjust the one they already have. For market research to be useful it must contain a detailed plan on the method that will be used to collect the information and how that information will be analyzed. This will ensure that there is applicable information that allows management to make the correct decisions. When the research is completed the resulting information is given to the marketing group or managers of the business. All of this information will aid the marketing team in creating the correct promotions and marketing strategies to gain the market share they are after. In today's competitive business world it is important to have the right data to properly develop a marketing plan. Without a plan to market products a business is set up to fail. Marketing methods and tools are the basis of the marketing strategy that a company will use to rise to the top of their market. . Some common used marketing research techniques used at this phase being:1. Concept testing - to test the acceptance of a concept by target consumers 2. Buyer decision making process research - to determine what motivates people to buy and

what decision-making process they use; over the last decade, Neuro marketing emerged from the convergence of neuroscience and marketing, aiming to understand consumer decision making process
3. Demand estimation - to determine the approximate level of demand for the product 4.

Sales forecasting - to determine the expected level of sales given the level of demand. With respect to other factors like Advertising expenditure, sales promotion etc.

5. Segmentation research - to determine the demographic, psychographic, and behavioural

characteristics of potential buyers

6. Test marketing - a small-scale product launch used to determine the likely acceptance of the

product when it is introduced into a wider market Research design used at this phase shall be Descriptive and Exploratory with both primary and secondary data as the input.

11 | P a g e

PHASE III: Marketing Mix Of all the marketing terms, people are most often familiar with the term "marketing mix". It's used to describe the 4 tactics at a marketer's disposal, namely: product, price, place and promotion. Some also add people and process to the mixture. To understand how the marketing mix works, one can think of the analogy of baking a cake and the 4 P's being the ingredients. The finished cake will depend on how much of each ingredient he/she use. For a sweeter cake, add more sugar. For a product that differentiates on the basis of being accessible 24/7, increase the emphasis on place (distribution) and decrease the emphasis on price. Depending on marketing objectives, marketing research can help to find the answers to questions such as:

PRODUCT RESEARCH

What product characteristics are important to your customer experiences e.g. features, color, size etc. What product innovations are likely to be well-received by customers? What brand name appeals to your customers? What functionality do your customers want? What styling, quality, safety and packaging do your customers want? Is after sales service, repairs, warranty and guarantees important to your customers?

PRICING RESEARCH

What pricing strategy should you use (cash discounts, customer segment pricing, special event pricing etc.)? What should your suggested retail price be? Should you give volume discounts or offer wholesale pricing? Should you offer early payment discounts? Should you offer seasonal discounts? Should you bundle products or services?

12 | P a g e
PLACE OR DISTRIBUTION RESEARCH

Choosing a distribution channel. Should your product or service be sold through a retailer? Should you offer the product or service wholesale? Should you use multi-level marketing or party-plan to sell your product?

Deciding what kind of market coverage you need i.e. are you going to be exclusive, selective or have a wide inclusive distribution What channel partners to choose? Where and when should your product or service be available?

PROMOTION RESEARCH

What promotion strategy to use Whether your key messages or copy resonates with your target market Selecting the advertising media that will best reach your target market and which best conveys your brand message Whether your advertising or promotions strategy has increased your brand recognition

Marketing research techniques as stated below helps in finding the answers to the questions:1. Ad Tracking periodic or continuous in-market research to monitor a brands performance

using measures such as brand awareness, brand preference, and product usage.
2. Advertising Research used to predict copy testing or track the efficacy of advertisements for

any medium, measured by the ads ability to get attention (measured with AttentionTracking), communicate the message, build the brands image, and motivate the consumer to purchase the product or service.
3. Brand equity research - how favorably do consumers view the brand? 4. 5.

Brand association research - what do consumers associate with the brand? Brand attribute research - what are the key traits that describe the brand promise?

6. Brand name testing - what do consumers feel about the names of the products? 7. Commercial eye tracking research - examine advertisements, package designs, websites, etc.

by analyzing visual behavior of the consumer

8. Viral Marketing Research - refers to marketing research designed to estimate the probability

that specific communications will be transmitted throughout an individual's Social Network. Estimates of Social Networking Potential (SNP) are combined with estimates of selling effectiveness to estimate ROI on specific combinations of messages and media.
9. Positioning research - how does the target market see the brand relative to competitors? -

what does the brand stand for?

13 | P a g e
10. Price elasticity testing - to determine how sensitive customers are to price changes 11. Copy testing predicts in-market performance of an ad before it airs by analyzing audience

levels of attention, brand linkage, motivation, entertainment, and communication, as well as breaking down the ads flow of attention and flow of emotion. Research design used at this phase is Descriptive, Exploratory and Casual with both primary and secondary data as the input.

PHASE IV: Implementation & Control Once the product/service has been launched, it's at this stage that anything missed will become apparent and where flexibility in organizations strategy will be necessary. What if a competitor produces a spoiler? Or there is a major channel shake up? By having done sufficient planning up front and looked at scenarios and pre-tested, the organization can be prepared for the major contingencies it might face and hopefully have an appropriate response ready and waiting. If the main strategy is right and robust, but the details aren't quite in place then the company would have the option of tweaking as you go, without throwing out all the work and effort that has been put in place. To ensure how the company does, It is important to having monitoring and reviews in place. Company have to be able to prove success by having set appropriate measures, as much as achieving that success in the first place. Monitoring can include internal financial and quality indicators, but these normally need to be combined with external measures such as customer satisfaction, brand tracking, or market share monitoring. Some common used marketing research techniques used at this phase being:1.

Cool hunting - to make observations and predictions in changes of new or existing cultural trends in areas such as fashion, music, films, television, youth culture and lifestyle Customer satisfaction research - quantitative or qualitative studies that yields an understanding of a customer's satisfaction with a transaction Marketing effectiveness and analytics - Building models and measuring results to determine the effectiveness of individual marketing activities.

2.

3.

4. Mystery consumer or mystery shopping - An employee or representative of the market

research firm anonymously contacts a salesperson and indicates he or she is shopping for a product. The shopper then records the entire experience. This method is often used for quality control or for researching competitors' products.

14 | P a g e
5. Store audit - to measure the sales of a product or product line at a statistically selected store

sample in order to determine market share, or to determine whether a retail store provides adequate service
6. Online panel - a group of individual who accepted to respond to marketing research online 7. Distribution channel audits - to assess distributors and retailers attitudes toward a

product, brand, or company

8.

Internet strategic intelligence - searching for customer opinions in the Internet: chats, forums, web pages, blogs... where people express freely about their experiences with products, becoming strong opinion formers.

Research design used at this phase is Descriptive and Casual with primary data as the input.