Definition of Marketing Research:

Marketing research is the systematic collection and analysis of data relating to sale and
distribution of financial products and services. Market research is an early step in the
marketing process, and includes an analysis of market demand for a new product, or for
existing products, as well as appropriate methods of distributing those products.

Marketing research is a systematic approach to solve marketing problems. The American

marketing association defines marketing research “The systematic gathering, recording, and
analyzing of data about problems relating to marketing of goods and services.”

The nature of marketing research 

Systematic process: - Marketing Research is a systematic process to identify and to solve

problems. The process of marketing research involves the following steps: 1. Identify the
marketing problems. 2. Create the research design. 3. Collection of data through primary and
secondary sources. 4. Processing of data. 5. Analysis of data. 6. Implementation of
data. 7. Finally, review or follow up of action taken.

2.      Scope: -Marketing Research attempts to solve problems in a wide range of areas. The
problem relates to various areas of marketing such as:
·         Product Research
·         Promotion Research
·         Pricing Research
·         Place Research

3.      Continuous in Nature: -Marketing research is continuous in nature. As long as the firm

exists, there is a need for marketing research; to overcome certain marketing problems arise
during existence of the firm.

4.      Applied Research: -Marketing Research is conducted to solve specific problems of

commercial importance. Since, marketing research is subject to commercial considerations, it
is not a basic or fundamental research but an applied research which is used to solve specific
problems.

5.      Bridges Company-customer Gab: -Marketing Research bridges the gap between the
producers and the consumers. The company comes to know more about its consumers-their
likes and dislikes, tastes, preferences and buying patterns.

6.      Company Objectives: -Due to marketing research, the company is a position to achieve its
objectives. Marketing research enables a firm to solve marketing problems. The resolving of
marketing problems enables the company to achieve its objectives in a profitable manner.
Marketing mix decisions: -Marketing Research provides necessary information to arrive at
appropriate solutions to marketing problems. Effective marketing mix like packaging,
pricing, promotion, distribution enables the firm to achieve marketing objectives.

8.      Methods of Data collection: -Marketing research data can be conducted with the help of
various methods such as;
·        Survey/interview method
·        Observation Method
·        Experimentation method. (R&D, product trials).

9.      Suffers from certain limitation: -Although marketing research is beneficial to the

company and the customers, yet it suffers from certain limitations, such as; limitation of time,
limitation of funds, limitation of data collection and data analysis techniques, problem of bias
(partiality) on the part of the respondents and of the interviewers and so on. Etc.

Scope of Marketing Research

1.Research on markets- market trends, market share, market potentials, market
characteristics,
completion, and other market intelligence.
2. Research on sales-sales analysis, sales forecasting, quota-setting, sales territory
design, sales performance measurement, trade channels, distribution costs, and
inventories.
3. Research on products-new produc~ research, product features, brand image, concept
tests, product tests, and market tests. (See the following Newsline.)
4. Research on advertising and promotion-promotion concepts, copy research, media
research, merchandising. packaging, adve;tising effectiveness measurement.
5. Research on corporate growth and development--econorrUc and technological forecasting,
corporate planning inputs, corporate image, profitability measurement,
merger and acquisition ~ tudies, and facilities location.

1. Research on Products:
Products involve goods and services. This branch of marketing
research covers all the issues related to firm’s products

It studies and solves the product-related problems, such

as:
i. Study of products’ qualities and performance

ii. Study of physical and psychological characteristics of product

iii. Determining uses of the existing products

2. Research on Market:
This area of marketing research deals with market/consumers. It
studies characteristics and compositions of the target markets. It
covers both current as well as potential markets.
This branch includes:
i. Defining and selecting target market

ii. Studying needs and wants of target market

iii. Study of size and location of current market

iv. Assessing the current market trends and projecting the future
trend

v. Analysis of territorial sales opportunities and potential

vi. Setting sales territories and sales quotas

vii. Market share analysis

viii. Studies on relative profitability of different markets

ix. Estimating demand of a new product

3. Research on Sales Methods and Policies:

This area of marketing research, particularly, concerns with study
and analysis of the sales- related activities.

Various aspects covered under this head may be listed as

below:
i. Study and analysis of sales records

ii. Analysis of sales territories in terms of products, size of orders,

times, terms and conditions and methods

iii. Study on activities and effectiveness of salesmen

iv. Evaluating existing selling methods

v. Sales force management including size, compensation, training,
control, etc.

vi. Study on effect of various promotional tools such as advertising,

personal selling, sales promotion, and publicity tools on sales

vii. Study on organisation structure of sales department

4. Research on Advertising:
Advertising is one of the powerful methods of market promotion.
Major part of promotional budget is devoted to advertising
activities. Therefore, it is imperative to conduct research on various
aspects related to advertising.

Under this area, at least following aspects are covered:

i. Comparative study of various elements of promotion

ii. Study on advertising objectives, media and media selection,

advertising message, theme, copy, and advertising agency

iii. Social aspects of advertising – negative and positive effects of

advertising on society at large

iv. Advertising role in different stages of product life cycle

v. Government restrictions on advertising

vi. Study on costs and contribution of advertising or evaluating

advertising effectiveness

vii. Study of competitors’ advertising practices and strategy

5. Research on Pricing:
Price is an important element of marketing mix. In developing and
underdeveloped countries, price plays a vital role. Suitable pricing
policies and methods can contribute positively in attainment of
marketing goals. It is clear that price has remained a major
determinant of buying decision.

This branch covers:

i. Study on pricing objectives

ii. Study on effectiveness of pricing policies and strategies

iii. Study of various methods for setting price

iv. Quality v/s value analysis

v. New product and pricing policies

vi. Study on effect of discount, allowance, and seasonal variables

vii. Pricing strategies on different stages of product life cycle

6. Research on Distribution:
In today’s marketing, distribution has unique role to determine
success of product. A marketer can contribute to total consumer
satisfaction by designing appropriate distribution network. Physical
distribution and distribution channel are two important
components of such research.

This area includes:

1. Assessing role of distribution decisions in achieving marketing
goals

2. Comparative study of between direct and indirect distribution

3. Physical distribution and ancillary services

4. Study on various types of channels of distribution

5. Study on relevant factors affecting channel decision/selection

6. Comparing company’s distribution strategies with competitors

7. Relevance of online marketing

8. Legal issues related to distributions

7. Research on Business Environment and Corporate

Responsibility:
This area is not concerned with solving any marketing problem
directly. In order to collect and analyze data related to broad
business environment, such research is conducted. The study on the
area helps manager formulate strategies for the current and the
future market as well. It also helps assess strengths and weaknesses
of marketing department in relation to business environment. In
today’s dynamic business environment, the study on various
economic, social, and cultural variables is extremely important.
Similarly, it is necessary to analyze corporate responsibility.

Main aspects covered under the head include:

i. Business analysis including demand, national income, per capita
income, trade and industry, economic growth rate, fiscal monetary
policies, and export-import policy.

ii. Short-term and long-term business forecasting.

iii. Technological aspects.

iv. Availability and quality of productive resources.

v. Impacts of legal provisions and Acts.

vi. Study on consumerism and the consumer rights.

vii. Social and cultural values affecting business policy.

viii. Pollution and ecological imbalance, and social responsibility of

business.
MARKETING RESERACH AS A AID TO MARKETING DECISION MAKING

Reasons why market research leads any business decision

Effective market research aids in decision-making by empowering decision makers with all the
possible suggestions and recommendations that are backed by factual data, information, and
analytics. By adopting market research, a business can comprehend its market position, distribution
channels, and new business opportunities, with the right product mix.

1.    Optimize brand strategy and positioning

Brand strategy – Generate new ideas to improve an organization’s brand image in the market
and reroute customer’s perception towards its products or service offerings.

Brand positioning –Evaluate an organization’s brand strength against their competitors.

Brand awareness – Measure the familiarity and awareness level of a brand amongst its
customers.

Personification – Identify characteristics and traits that customers can associate with the
brand.

 The above tasks can be accomplished by surveying customers to gather feedback on

marketing content such as product shape, color, packaging, naming, logos, brochures, and
websites among others.

2.    Improve your content marketing strategy

Content is the heart of inbound marketing strategy. The words used in your content should
embody the language of your customers. Understanding the likes and dislikes of customers
through social media and other channels helps in creating custom designed content that
would strike a chord with the audience, and choose the right influencer to promote the
content on social media.

3.    Assess your competition

Businesses have to evaluate their competitors in order to maintain their position in the
market. The core competency and weakness of a business can be identified with the help of
market research. Competitor analysis can identify the drawbacks of your products against the
competitors’ products. This information can be used to improve the company’s products and
service offerings. You can strategize the uniqueness of your products and service portfolio to
optimize on your USP against competitors to stay ahead in the market.

4.    Understand your target market

Understanding your customers properly can help you to provide customized products and
services that suit their requirements. Target market research helps you identify the best ways
to introduce your products to customers.  Target market research involves gathering
information on buyer personas and their demographics through surveys. By focusing your
efforts on the right target market, you can achieve faster results with improved efficiency and
better performance from your marketing campaigns.

5.    Measure the effectiveness of your marketing

With the help of surveys, customer feedback and response to marketing initiatives, we can
analyze the impact of our marketing strategy and alter the strategy according to the customer
preferences.

6.    Learn about substitutes and new entrants in the

market
Market research will equip you with knowledge and understanding of potential substitutes for
your products mapped against consumer preferences. Product-based market research will
help you keep track of latest technologies in the market and identify ways to keep your
product and services updated.

7.    Improve decision-making with reduced risks

Market research provides suggestions with detailed facts and concrete trend analysis. The
qualitative and
quantitative data will help you to assess the effectiveness of your business decisions.
Research findings help visualize the responsiveness of your business ideas prior to a market
launch, avoiding potential risks and clarifying expectations from the decision. This allows
you to make informed decisions with confidence, as it reduces the risk of uncertainty in
business decisions