1.1.

MARKETING RESEARCH
1.1.1. Introduction
Marketing Research is the function that 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 for collecting information, manages and implements the data collection process, analyzes the results, and communicates the findings and their implications. Marketing research is the systematic gathering, recording, and analysis of data about issues relating to marketing products and services. The goal of marketing research is to identify and assess how changing elements of the marketing mix impacts customer behavior. Marketing Research plays a very significant role in identifying the needs of customers and meeting them in best possible way. The main task of Marketing Research is systematic gathering and analysis of information. Marketing Research is essential for strategic market planning and decision making. It helps a firm in identifying what are the market opportunities and constraints, in developing and implementing market strategies, and in evaluating the effectiveness of marketing plans. Marketing Research is a growing and widely used business activity as the sellers need to know more about their final consumers but are generally widely separated from those consumers. Marketing Research is a necessary link between marketing decision makers and the markets in which they operate. Marketing Research includes various important principles for generating information which is useful to managers. These principles relate to the timeliness and importance of data, the significance of defining objectives cautiously and clearly, and the need to avoid conducting research to support decisions already made.

1.1.2.

Meaning and Definition of Marketing Research

Marketing research is defined as the objective and formal process of systematically obtaining, analyzing and interpreting data for actionable decision making in marketing. Marketing research is a systematic and objective study of problems pertaining to the marketing of goods and services. It may be emphasized that it is not restricted to any particular area of marketing, but is applicable to all its phases and aspects.

The American Marketing Association (AMA) has defined marketing research as, Marketing research is the function which links the consumer, customer, and public to the marketer through information used to identify and define marketing opportunities and problems, generate, refine, and evaluate marketing actions; monitor marketing performance, and improve understanding of market as a process. Marketing research specifies the information required to address these issues; designs the method for collecting information; manages and implements the data collection process; analyses the results; and communicates the findings and their implications. According to Philip Kotler, Marketing research is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization. According to Palmer, Marketing research is about researching the whole of a companys marketing process. According to Green and Tull, Marketing research is the search for and analysis of information relevant to the identification and solution of any problem in the field of marketing. According to Blankenship and Doyle, Marketing research is the collection and interpretation of facts that help marketing management to get products more efficiently into the hands of the consumer. Market research encompasses all information pertinent to this task, all the appropriate techniques.

1.1.3.

Market Research and Marketing Research

The term market research and marketing research are generally used interchangeably. But, these terms denote different meaning. The term marketing research is a wider than market research. Market research is only one of the functions of marketing research. Market research refers to the factors relating to market only. These factors include size of the market, its geographical distribution, nature of the market, categories of consumers on the basis of their income, age, sex, market segmentation (income), etc. The scope of market research may also extend to market share, market trends and capacity of the market. Marketing research, on the other hand, includes not only market research but also product research, sales research, advertising research, packaging research, packaging brand names and profit volume research, etc. Thus, the scope of marketing research is very wider in comparison to the market research. According to Professor Philip Kotler, Some companies use the term market research instead of marketing research. The former term is accurate for describing research into markets, their size, geographical distribution, incomes and so on. However, it fails to cover the idea of research into the effects of marketing efforts on markets, for which the term marketing research is more accurate. Marketing research is increasingly coming into favor as the term that describes both ideas.

1.1.4.
1)

Nature of Marketing Research

Nature of Marketing Research

Nature of marketing research is shown in figure below: Function of Marketing Management: Marketing research operations helps the marketing executives to keep abreast with the environmental changes by providing right information on dynamic environments to facilitate decision-making. The marketing environment consists of customers,

Function of Marketing Management Integrated Effort Systems Approach Imperfect Science Inter-Disciplinary Process Indispensable for the New Product Introduction Market-Orientation

competitors, suppliers, distributors, etc. The information generated through marketing research can be used to determine most appropriate marketing mix. Thus, marketing research is a well recognized and very important function of marketing management. 2) Integrated Effort: A teamwork or group effort is needed for carrying out marketing research activities in any organization. Research objectives are set by planning executives and data requirement for the accomplishment of these objectives are determined by the data analyst. The data processor should know the nature and location of available data to retrieve and process it at the desired time. Thus, marketing research is a team effort. 3) Systems Approach: Marketing research involves a number of activities, viz., collection, recording, tabulating, analyzing and interpretation of information. Each of these activities is performed by some experts who are supervised by marketing management executives. Thus, marketing research constitutes a systems approach from start to finish. 4) Inter-Disciplinary Process: Marketing researcher collects vast amount of information from various disciplines, viz., economics, sociology, psychology, etc., and uses various statistical and mathematical techniques to process this information. Psychological and sociological information is used to study consumer behavior. Thus, marketing research is based on inter-disciplinary approach.

5) Imperfect Science: Science is an open discipline which hides nothing and brings everything to surface. A scientific method is a set of prescribed procedures for establishing and connecting general laws. In marketing research the objectives and assumptions inherent in the phenomenon are formulated and then data is collected and analyzed to draw inferences. Marketing research can be viewed as scientific effort to enhance knowledge by developing concepts, collecting and analyzing meaningful data and the critical study of concepts and premises. But the studies in marketing research are never exact as it deals with unpredictable and dynamic human behavior. The results are always uncertain with certain amount of risk. Thus, marketing research is based on scientific method and can be termed as science but it cannot be designated as perfect like other social science, i.e., it is an imperfect science. 6) Indispensable for the New Product Introduction: Before introducing a new product, the market research is used to find out suitable avenues and place of the new products. It reveals the various opportunities of new markets and reveals the methods to reach the markets. 7) Market-Orientation: The objective of marketing research is to enable the firms to produce the goods and services acceptable to the customers. It sees that the goods and services must reach the market easily, quickly, cheaply and profitably. The right course of action to approach and sustain the market is possible with suitable marketing research.

1.1.5.

Scope of Marketing Research

Marketing research encompasses all the spheres of marketing, right from the idea generation for a new product to after sales service. The information gathered and analyzed through marketing research can be used for operational purposes or for making important strategic decisions. The scope of marketing research is shown in figure below.
Scope of Marketing Research Market and Customer Research Product Research Promotion Research Distribution Channel Research Motivation Research Pricing Research Sales Research Advertising Research Policy Research

1) Market and Customer Research: Market and customer research looks at the size and structure of a particular marketplace and the behavior of buyers or operators within that market. First the business must determine the size and structure of the marketplace: i) What are the parameters of the marketplace? ii) What sort of customers are in it? iii) Where are customers located? iv) How customers are there? The business must then assess the competition by asking: i) What are the competitive forces in the market? ii) Who are the direct competitors and who provides substitute products? iii) How successful are the competitors and what are their strategies? Businesses must also assess the behavior of buyers in the marketplace: i) What are the behavioral characteristics of those involved? ii) How do the buyers in the marketplace behave? iii) Who makes the buying decisions and how do they do it? iv) What are the principal benefits they are looking for?

2) Product Research: New product ideas and concepts can be tested on a limited scale before they are put to the ultimate test of acceptance in the marketplace. The failure rate for new products is very high; nine out of every ten new product launches fail according to one estimate. To minimize this risk, concept testing is used to establish likely levels of demand. Improvements to existing products or changes to the packaging and presentation can also be tested for acceptability. 3) Promotion Research: Research provides important feedback on the impact of marketing activities. Marketing management needs to know the effect of marketing interventions such as advertising in order to be able to plan future campaigns. All forms of marketing communications can be made more effective by careful research and analysis of the results of past marketing efforts. 4) Pricing Research: The acceptability of pricing levels can be researched in a number of ways. Experiments to assess the effect of changes to the price of a product give an indication of the relationship between price levels and sales. Attitude research among customers can be the basis of an organizations pricing strategy. Pricing is a difficult area to research as respondents tend to give responses which encourage lower prices. However, prices need to be assessed in the context of overall costs to the consumer, as they include not only the money paid but also the convenience and timing of the purchase. 5) Distribution Channel Research: Research can provide crucial information affecting the physical distribution of goods and services or intangible channels to market such as the Internet. Feasibility studies into alternative methods of distribution may involve:

i)

Analysis of the Structure of the Marketplace: What are the current distribution practices in this market? What is the best option for distributing this product agents, wholesalers or directly through the organizations own operation?

ii) Research into Store Location: What is the optimum location for this retail outlet prime High Street, secondary off-High Street, back street or out of town? iii) Research into Information Channels: Channels to market may involve developing new methods of getting information to customers as well as physical goods. The development of the Internet has given companies new opportunities to reach the marketplace. However, these often need careful investigation to make them effective. 6) Sales Research: Sales research covers the problems relating to the sale of products of a given firm. It attempts to find out sales potential to improve the existing level. The areas of sales research are: i) Measuring sales performance in terms of volume and profits. ii) Analyzing and appraising the sales methods and sales personnel performance. iii) Establishing and revising sales territories and sales quotas. iv) Determining the effective ways of employee compensation. 7) Motivation Research: The consumer research that answers the questions like What? Who? How many? Where? When? is known as quantitative research. However, motivation research is qualitative, that answers why? That is, why do people buy or do not buy a particular product? It is not only the ability to pay for but the motives or the attitudes that have far reaching impact on consumer purchase decisions. The areas of motivation research are: i) Identifying the consumer motives, attitudes, emotions or the hidden reasons influencing buying decision. ii) Finding out the ways and means of motivating the people to increase the sales. iii) Knowing the consumer reactions in terms of consumer expectations and aspirations. iv) Distinguishing between the hidden and apparent consumer likes and dislikes. 8) Advertising Research: Advertising research is to do with communication mix, the problems involved and the solutions possible. The areas of advertising research are: i) Determining the advertising messages and appeals in the limelight of research findings. ii) Comparison of likely effectiveness of the alternative copies designed. iii) Evaluating and selecting the media mix. iv) Measuring advertising effectiveness.

9) Policy Research: Marketing as a specialized activity is going to be a grand success if other specialized activities contribute their mite. These are the contributions of finance, production and personnel activities. Policy research is to do with the study of the policies in all the areas of an organization and their postoperative effects on marketing and vice-versa. The areas of policy research are: i) Studying the existing policies and strategies in production, finance and personnel vis--vis marketing policies. ii) Evaluating the efforts of changes in these policies on firms marketing efforts and the results. iii) Determining a blended policy to better the results with reduced efforts and investments. iv) Having comparative study of competitors policies blend to seek betterment. This checklist by no means is comprehensive but serves as an outline of the possible scope of research activities. Although research in most of the above areas is concerned with the recording of fact, qualitative research into the nature of attitudes and opinions is also appropriate in a number of instances.

1.1.6.

Objectives of Marketing Research

The following are the objectives of marketing research: 1) Discovering the New Markets: The first important objective of marketing research is to discover the new market for the product. These can be discovered by advertising, market survey, effective salesmanship, etc. 2) Capturing the Greater Market Share: The second objective of marketing research is to enable the organization to capture greater market share. Market share refers to that portion of a particular industrys total sale which a firm aims to achieve. Marketing research helps the organization to get leadership in the market as well as to take decision whether to expand the market share or not. Marketing research, thus, assists the management in selling new products or improved variety of products. Besides, there should be made attempts to maintain the existing market share. 3) Analyzing Tastes and Preferences of Customers: An important objective of marketing research is to analyze tastes and preferences of customers. Marketing research assists in determining the likings and dislikings of the consumers. The marketing department should make an analysis of the demand and preference of product from time to time. This helps the organization to make any necessary improvement in the quality of product. 4) Anticipating the Future Sales Volume: Marketing research is aimed at studying and understanding the consumer behavior. It facilitates in determining the probable future sales volume that can be achieved either by creating new markets or by adding new lines of production. If the future sales are anticipated in accurate volume, the organization will be able to capture a greater market share in the period of high demand.

5) Reducing the Cost of Marketing: An important objective of marketing research is to reduce the cost of marketing. The cost of marketing includes selling, advertising, promotion and distribution of products. Marketing research here facilitates in determining the methods by which excessive (unnecessary) sales and advertisement expenditure can be reduced to minimum possible extent. Further, it also reduces the chances of wastage and losses of product in packaging by suggesting appropriate methods. 6) Improving the Quality of Product: Another important objective of marketing research is to improve the quality of the product. It is the quality of the product which creates loyalty among consumers for the product of the organization. The purpose of marketing research, in this context, is to determine what the consumers demand and to make necessary changes in the product in accordance with their requirement. 7) Helping in Formulation of Suitable Price Policy: Price is the amount of money charged for a product or services that consumers exchange for the benefits of product or service. Marketing research provides valuable information to the management about competitive prices. This information also reveals the packaging, quality and discounts of competitive products. The objective of marketing research is to also unfold the impressions of the customers about the competitive products. The marketing research also provides information in relation to product demand, elasticity of demand, consumer behavior, distributive channels, suppliers terms and conditions and Government regulations. This information assists the management in formulating the suitable price policy. 8) Facing Cut Throat Competition: It is also another objective of marketing research. In modern time, no firm can survive without facing competition in the market. Since any reaction of the competitors firm can affect the demand of the firm, therefore, the firm should also take proper action in response to the strategy of competitor. Marketing research, in this connection, provides all the information relating to products of competitors, their pricing polices, strategies, etc. 9) Making Liaison with Ultimate Consumers: According to Philip Kotler, Consumers are neither so simple that they do not require to be studied, nor so complex that their study is not possible. Consumer is a human being and his behavior is never static. It is, therefore, important to make liaison with ultimate consumers so that their dynamic tastes and preferences may be understood. It enables the firm to make necessary changes in the product. Marketing research helps the firm to be in touch with the consumers, behavior and as a result, the management may take appropriate decisions in relation to production policies, pricing policies, channels of distribution, sales promotion activities and finally to face the competition. 10) Studying the External Environment: An important objective of marketing research is to study the effect of external environment on decision-making by the firm. External environment refers to the present Government policies and regulations. It also provides information regarding the probable development in the foreign markets, new products and substitutes, emergence of new competitors and their future impact on firms output. The income of the consumers and their spending habits also play a crucial role in determining the external environment. Summarizing the above mentioned objectives, it can be concluded that the marketing research plays the Consumers pivotal role in providing significant information about the competitors, consumers and commodities. Employees
Customer Groups Shareholders Suppliers

1.1.7.

Role of Marketing Research

Marketing Research Factors Economy Technology Competition Laws and Regulations Social and Cultural Factors Political Factors

The nature and role of marketing research can be better understood in light of the basic marketing paradigm Uncontrollable depicted in figure 1.1: Environmental
Controllable Marketing Variables Product Pricing Promotion Distribution

Assessing Information Needs

Providing Information

Marketing DecisionMaking

Marketing Managers Market Segmentation Target Market Selection Marketing Programs Performance and Control Figure 1.1: Role of Marketing Research

The emphasis in marketing is on the identification and satisfaction of customer needs. In order to determine customer needs and to implement marketing strategies and programs aimed at satisfying those needs, marketing managers need information. They need information about customers, competitors, and other forces in the marketplace. In recent years, many factors have increased the need for more and better information. As firms have become national and international in scope, the need for information on larger and more distant markets has increased. As consumers have become more affluent and sophisticated, marketing managers need better information on how they will respond to products and other marketing offerings. As competition has become more intense, managers need information on the effectiveness of their marketing tools. As the environment changes more rapidly, marketing managers need more timely information. The task of marketing research is to assess the information needs and provide management with relevant, accurate, reliable, valid, current, and actionable information. Todays competitive marketing environment and the ever-increasing costs attributed to poor decision-making require marketing research to provide sound information. Sound decisions are not based on gut feeling, intuition or even pure judgment. In the absence of sound information, an incorrect management decision may be made, as illustrated by the case of Johnson & Johnson baby aspirin. Using market research and decision clarification tools, they help clients benefit from the right marketing research information for uncovering marketing strategy solutions that work. Power Decisions researches, evaluates, and facilitates its clients market entry and market share growth. Figure 1.2 is a pictorial representation of Power Decisions methodology:
Opportunity scan Option generation Refine options Decision Seek Evaluate interpret facilities Plan Act

Solve problem Client Needs Find

Achieve Goal Research How We Help analysis Clarify decisions

Recommend

Market plan research

Advice assist execution

Figure 1.2: Power Decisions Methodology

A food processing company approached Power Decisions for opportunity scanning and brand development. The client was a well-respected private label food processor that held a strong position in Western markets. Top grocery chains stocked much of its canned vegetables line it was known for packing quality product at competitive prices. The private label business, however, grew more prices competitive and profits began to erode. A proprietary brand strategy was required to deliver higher profits through re-stored margins.

Power Decisions role was to guide an 18-month multistage effort to discover the most appropriate product categories to pursue. They undertook a major consumer research product concept testing study, which consisted of the following steps: 1) Scanned and evaluated more than 40 product groups, recommending a shortlist of product category candidates.

2) Conducted a consumer research study to find a set of canned food products with low consumer satisfaction and high interest in a new brand. 3) Made a trade-off analysis to calculate the price-quality blends that had the best chance of success. 4) Worked closely with the client product development team as they formulated test run of the final food product chosen to ensure that the test formulations held true to the product attributes formula derived from consumer research. The final stage was to manage the brand name development, package design, initial ad campaign, and test market plan. As a result, the new brand containing the blend of ingredients desired most by consumers was successfully introduced at a premium price level. The brand fast gained both trade and consumer acceptance and was later expanded to other products and institutional markets.

1.1.8.

Functions of Marketing Research

1) Describing: It conveys description of an event which has either taken place or expected to take place. It is the beginning of marketing research. 2) Evaluating: The goods produced, the acceptance given to the product already in the market, customers reaction, competitors product and its performance in the market, etc., are first described and then evaluated. 3) Explaining: It leads the organization to some of the points where it comes to know as to why a particular event has taken place? Where the organization has gone wrong? What has taken away the customers from the products? Which sales territory is doing better and the performance of which one is not upto the expectations and why? What remedial measures have been taken and with what results? 4) Predicting: It is the focal point around which other functions of this wing cluster. Its aim is description, evaluation and explanation. The market research wing predicts regarding what the sales volume might, will or should be in a future date what might, will or should be the future product needs, what distribution procedure should be adopted in future and what competition the product is going to face and what should be done to face the competitors challenge, etc., are to be predicted by this wing. 5) Assisting: After prediction is made the whole organization believes in it and acts in accordance with such predictions. It is expected that the marketing research wing will come to the help of the organization in follow-up to the prediction. Such assistance helps the organization in taking proper decision. Assisting in decision-making helps the marketing research wing grow in stature. The marketing research wing functions as an advisor to marketing management.

1.1.9.

Factors Influencing Marketing Research Decisions

1) Relevance: Research should not be conducted to satisfy curiosity or confirm the wisdom of previous decisions. Relevance comes through support of strategic and tactical planning activities, that is, by anticipating the kinds of information that will be required. This information is the backbone of the ongoing information system. 2) Type and Nature of Information Sought: The decision whether to conduct marketing research depends on the type and nature of the information sought. If the information required for decision making already exists within the organization, in the form of results of a study conducted for a different problem or in the form of managerial experience and talents, marketing research is not called for. Under these circumstances, further research would be redundant and a waste of money. 3) Timing: Research decisions are constrained by the march of events. Often these decisions are fixed in time and must be taken according to a specified schedule, using whatever information is available. If a new product is to be launched in the spring, all the research-based decisions on price, product formulation, name, copy appeals, and other components must be conducted far in advance. 4) Availability of Resources: Though the need for resources to be available may appear to be obvious, in several instances managers have called for marketing research without properly understanding the amount of resources available including both financial and human resources. Lack of funds can result in improper and inefficient execution of a marketing research project.

5) Cost-Benefit Analysis: Before conducting marketing research, a prudent manager should perform a costbenefit analysis to determine the value of the information sought through the research.

1.1.10. Marketing Research Process

Marketing research process consists of a number of closely related activities. But such activities overlap continuously and do not follow a strictly prescribed sequence. Various steps involved in a research process are not mutually exclusive; nor are they separate and distinct. They do not necessarily follow each other in any specific order and the researcher has to be constantly anticipating at each step in the research process the requirements of the subsequent steps. However, the following order concerning various steps provides a useful procedural guideline regarding the research process which is shown in the figure 1.3: 1) Identifying the research problem; 2) Defining research problem; 3) Extensive literature survey; 4) Formulation of hypotheses; 5) Preparing the research design; 6) Determining sample design; 7) Collecting the data; 8) Execution of the project; 9) Analysis of data;

10) Testing of hypothesis; 11) Generalizations and interpretation; and 12) Preparation of the report or presentation of the results, i.e., formal write-up of conclusions reached.
FF Review concepts and theories Identifying and Defining Research Problem Review previous research finding FF Define research (including sample design) Analyze data (Testing of hypotheses if any)

Formulation of hypotheses

Collect data (Execution)

Interpret and report

F F FF = Feed back (Helps in controlling the sub-system to which is transmitted) = Feed forward (Serves the vita function of providing criteria for evaluation) Figure 1.3

1) Identifying and Defining Research Problem: The initial step in the research process is the identification of the problem or opportunity. A research problem refers to some difficulty which a researcher experiences in the context of either a theoretical or conceptual situation and wants a solution for it. A research problem exists when the individual or the group having one or more desired outcomes are confronted with two or more courses of action that have some but not equal efficiency for the desired objectives and are in doubt about which course of action is best. As businesses today operate in a highly volatile environment governed by various macro-environmental factors they need to constantly assess their relative position and identify the various problem areas or opportunities they need to work upon in order to sustain themselves competitively in the market. The managers need to analyze the changing dynamics of business, and to evolve a strategy to adapt to the changes taking place in the external environment. Whether these are potential problem areas or opportunities, it is very important for the manager to identify them accurately and at the earliest. Problem identification precedes the problem definition stage. For example, a company producing cellphone wave protectors (devices that protect the cellphone from harmful radiations), may realize that its new product is not selling, but it may not know the reason for this at the outset. Although it has identified the problem in a broader perspective, it needs to define the problem specifically in terms of what is to be researched. It is important to define the problem in a precise manner. A well-defined problem gives the researcher a proper direction for carrying-out investigation. It also helps in utilizing the resources provided for the research effectively. A researcher can focus his efforts on collecting relevant information, if the problem is defined properly. Some research problems such as conducting a survey on the newspaper reading habits of a given set of the population can be clearly defined. But if a company wants to define a research problem such as declining sales, it needs to explore the research problem further through exploratory research. 2) Extensive Literature Survey: Once the problem is formulated, the next step is to write down a brief summary. For this the researcher should undertake extensive literature survey connected with the problem. For this purpose, the abstracting and indexing journals and published or unpublished bibliographies are the first place to go to. Academic journals, conference proceedings, government reports, books etc., must be taped depending on the nature of the problem. 3) Formulation of Hypotheses: Now the researcher should state in clear terms the working hypothesis or hypothesis. Working hypothesis is tentative assumption made in order to draw out and test its logical or empirical consequences. As such the manner in which research hypothesis are developed is particularly important since they provide the focal point for research. Hypothesis should be very specific and limited to the piece of research in hand because it has to be tested. The role of the hypothesis is to guide the researcher by delimiting the area of research and to keep him on the right track.

Working hypothesis can be developed by using the following approach: i) Discussion with colleagues and experts about the problem its origin and the objectives in seeking a solution, ii) Examination of data and records, if available, concerning the problem for possible trends, peculiarities and other clues, iii) Review of similar studies in the area or of the studies on similar problems, and iv) Exploratory personal investigation, which involves original field interviews on a limited scale with interested parties and individuals with a view to secure insight into the practical aspects of the problem. Working hypothesis are more useful when stated in precise and clearly defined terms. A basic fact about testing hypothesis is that a hypothesis may be rejected but that the hypothesis never can be unconditionally accepted until all possible evidence is evaluated. In the case of sampled data, the information set cannot be complete. So, if a test using such data does not reject a hypothesis, the conclusion is not necessarily that the hypothesis should be accepted. The null hypothesis in an experiment is the hypothesis that the independent variable has no effect on the dependent variable. The null hypothesis is expressed as H0. This hypothesis is assumed to be true unless proven otherwise. The alternative to the null hypothesis is the hypothesis that the independent variable does have an effect on the dependent variable. This hypothesis is known as the alternative, research or experimental hypothesis and is expressed as H1. This alternative hypothesis states that the relationship observed between the variables cannot be explained by chance alone. There are two types of errors in evaluating hypothesis: i) Type I Error: It occurs when one rejects the null hypothesis and accepts the alternative, when in fact the null hypothesis is true. ii) Type II Error: It occurs when one accepts the null hypothesis when in fact the null hypothesis is false. 4) Preparing the Research Design: Research design is the conceptual structure within which research should be conducted. A research design specifies the methods and procedures for conducting a particular study. The researcher should specify the approach he intends to use with respect to the proposed study. The function of research design is to provide for the collection of relevant evidence with minimal expenditure of effort, time and money. Research designs can be grouped into three categories exploratory research, descriptive research and causal research. i) Exploratory Research: An exploratory research focuses on the discovery of ideas and is generally based on secondary data. It is preliminary investigation, which does not have a rigid design. ii) Descriptive Research: A descriptive study is undertaken when the researcher wants to know the characteristics of certain groups such as age, sex, educational level, income, occupation, etc. In contrast to exploratory studies, descriptive studies are well structured. iii) Causal Research: A causal research is undertaken when the researcher is interested in knowing the cause and effect relationship between two or more variables. Such studies are based on reasoning along welltested lines. 5) Determining Sample Design: All the items under consideration in any field of inquiry constitute a universe or population. A complete enumeration of all the items in the population is known as a census inquiry. In such an inquiry when all the items are covered no element of chance is left and highest accuracy is obtained. But in practice this may not be true. This type of inquiry involves a great deal of time, money and energy, not only this, census inquiry is not possible in practice under many circumstances. The researcher must decide the way of selecting a sample or the sample design. A sample design is a definite plan determined before any data are actually collected for obtaining a sample from a given population. Samples can be either probability samples or non-probability samples. With probability samples each element has a known probability of being included in the sample but the non-probability samples do not allow the researcher to determine this probability.

6) Collecting the Data: The next step is to determine the sources of data to be used. The researcher has to decide whether he has to collect primary data or depend exclusively on secondary data. Sometimes, the research study is based on both secondary and primary data. The primary data are those, which are collected afresh and for the first time, and thus happen to be original in character. The secondary data, on the other hand, are those which have already been collected by someone else and which have already been passed through the statistical process. Any statistical data can be classified under two categories depending upon the sources utilized. These categories are, i) Primary sources of data ii) Secondary sources of data 7) Execution of the Project: The researcher should see that the project is executed in a systematic manner and in time. If the survey is to be conducted by means of structured questionnaires, data can be readily machineprocessed. In such a situation, questions as well as the possible answers may be coded. If the data are to be collected through interviews, arrangements should be made for proper selection and training of the interviewers. The training may be given with the help of instruction manuals, which explain clearly the job of the interviewers at each step. Occasional field checks should be made to ensure that the interviewers are doing their assigned job sincerely and efficiently. A careful watch should be kept for unanticipated factors in order to keep the survey as much realistic as possible. This means that steps should be taken to ensure that the survey is under statistical control so that the collected information is in accordance with the pre-defined standard of accuracy. 8) Analysis of Data: After the data have been collected, the researcher turns to the task of analyzing them. The analysis of data requires a number of closely related operations such as establishment of categories, the application of these categories to raw data through coding, tabulation and then drawing statistical inferences. Researcher should classify the raw data into some purposeful and usable categories. i) Coding operation is usually done at this stage through which the categories of data are transformed into symbols that may be tabulated and counted. ii) Editing is the procedure that improves the quality of the data for coding. With coding the stage is ready for tabulation. iii) Tabulation is a part of the Technical procedure where in the classified data are put in the form of tables. Analysis work after tabulation is generally based on the computation of various percentages, coefficients, etc., by applying various well-defined statistical formulae.

In order to derive meaningful results from the statistical tables, the researcher may use one or more of the following four steps: i) The first step is to calculate relevant measures of central tendency as also of dispersion, highlighting the major aspects of the data. ii) The second step is to cross tabulate the data to ascertain some useful relationships. iii) The third step is to calculate the correlation coefficient and undertake a regression analysis between variables. iv) The fourth step is to undertake a multivariate analysis. Such an analysis used a variety of techniques to determine important relationships amongst several variables. 9) Testing of Hypothesis: After analyzing the data the researcher has to test the hypothesis, various tests, such as Chi-square test, t-test, F-test, have been developed by statisticians for the purpose. The hypothesis may be tested through the use of one or more of such tests, depending upon the nature and object of research inquiry. Hypothesis testing will result in either accepting the hypothesis or in rejecting it. If the researcher had no hypothesis to start with, generalizations established on the basis of data may be stated as hypothesis to be tested by subsequent researches in times to come. 10) Generalization and Interpretation: If a hypothesis is tested and upheld several times, it may be possible for the researcher to arrive at generalization, i.e., to build a theory. If the researcher had no hypothesis to start with, he might seek to explain his findings on the basis of some theory. It is known as interpretation. The process of interpretation may quite often trigger off new questions, which in turn may lead to further researches. 11) Preparation of the Report or the Thesis: Although report writing needs some skill, which can be developed with practice, the researcher should follow the main principles of writing a report. Some of these principles are: i) There should be objectivity, coherence, clarity in the presentation of ideas. ii) Report should be written in a concise and objective style in simple language avoiding vague expressions such as it seems, there may be, and the like. iii) Charts and illustrations in the main report should be used only if they present the information more clearly and forcibly. iv) Calculated confidence limits must be mentioned and the various constraints experienced in conducting research operations may as well be stated. v) The layout of the report should be as follows: a) The preliminary pages; b) The main text, and c) The end matter. In its preliminary pages, the report should carry title and date followed by acknowledgements and foreword. Then there should be a table of contents followed by a list of tables and list of graphs and charts, if any, given in the report.

The main text of the report should have the following parts: i) Introduction: It should contain a clear statement of the objective of the research and an explanation of the methodology adopted in accomplishing the research. ii) Summary of Findings: A statement of findings, and recommendation in non-technical language should be there after introduction. If the findings are extensive, they should be summarized. iii) Main Report: The main body of the report should be presented in logical sequence and sections. iv) Conclusion: At the end of the main text, result of the research should be put clearly and precisely. At the end of the report, appendices should be enlisted in respect of all technical data. Bibliography, i.e., list of books, journals, reports, etc., consulted, should also be given in the end. Index should also be given specially in a published research report.

1.1.11. Marketing Research as Aid to Decision-Making

Marketing research by itself cannot be expected to provide sound marketing decisions. It can serve as resource for decision-makers provided, of course, that the information it delivers is relevant, timely, and reliable. Its relevance, in turn, depends on marketers ability to accurately diagnose the nature of the question or problem they want to solve and ask the right questions at the right time in the data-gathering process. For example, in the P&Gs Ariel High Suds, certain research-related decisions the timing of the research studies prior to launch and the decision to forgo additional research to understand the impact of changed economic conditions contributed to the initial lackluster performance of the product. In short, although marketing research can aid and influence decision-making its effectiveness is in turn affected by the decision-makers who undertake the research. There is thus an interactive relationship between marketing research and decision-making; one cannot substitute for the other. Another reason marketing research is an aid to decision-making rather than a replacement for it is that final decisions are influenced not only by research results but also by other factors both within the firm, such as resource constraints and corporate goals, and outside it, such as competitors activities and legal constraints, all of which must be taken into consideration. Therefore, decision-makers, who should be more knowledgeable about such factors than researchers have the ultimate responsibility for financial decisions. The experience of Kellogg Company illustrates this point. Managements job is to take decision about what has to be done, specify the personal to do the work; to see that the work is actually done; and evaluate how well the work has been done, etc. for this purpose the management must have information of the correct quantity and relevance to enable the management to decide matters. Better decisions, right decisions are always based on right information. It lowers the degree of uncertainty and risk. Collecting information about the market and its consumers and information itself can be collected in three ways: Situation Understand the environment and the market 1) By personal observation of consumers buying and opportunities Analysis Identify threats habits and trends; 2) Desk research, by the use of official publications andposition Assess the competitive statistics and by; 3) Original research by undertaking sample, surveys designed to reveal new information in answer to specific decision needs. Of course the utility and superiority of the last method is unquestionable.
Strategy Marketing decisions involve issues that range from fundamental shifts in the positioning of a business or the Define the business scope and served market segments Development decision to enter a new market to narrow tactical questions of how best to stock a grocery shelf. The context for Establish competitive advantages Set performance objectives these decisions is the market planning process, which proceeds sequentially through four stages: 1) Situation analysis, 2) Strategy development, 3) Marketing program development, and Marketing Product and channel decision 4) Implementation. Program Development Communication decisions Pricing Personal selling decisions

Implementation

Performance monitoring Refining strategies and program

Figure 1.4: Marketing Planning Process

Marketing Research and Decision-Making Although conducting the activities of marketing research requires using a variety of research techniques, the focus of the research should not be on the techniques. Marketing research should focus on decisions to be made rather than the collection techniques used to gather information to facilitate decision-making. This focus is central to understanding the marketing research function in terms of what it should be and to the effective and efficient use of research as an aid to decision-making. Any user or provider of marketing research who loses sight of this central focus is likely to end-up in one of two awkward and costly positions: 1) Failing to collect the information actually needed to make a decision; or 2) Collecting information that is not needed in a given decision-making context. The result of the first is ineffectiveness not reaching a desired objective, and the result of the second is inefficiency failing to reach an objective in the least costly manner. The chances of either of these occurring are greatly reduced when the decision to be made is the focus of the research effort. To maintain this focal point, an understanding of the purpose and role of marketing research in decision-making is necessary. The basic purpose of marketing research is to reduce uncertainty or error in decision-making. It is the uncertainty of the outcome surrounding a decision that makes decision-making difficult. If the outcome of choosing one alternative over another is the uncertainty of the outcome surrounding a decision that makes decision-making difficult. If the outcome of choosing one alternative over another is known, then choosing the right alternative would be simple, given the decision-making criteria.

1.1.12. Applications of Marketing Research

1)

Types of Research Research on Market

2)

Research on and Services

Product

3)

Research on Promotion

4)

Research on Distribution

5)

Research on Prices

Research Activities Covered Analyzing market potential for the existing products and estimating the demand for the new ones. ii) Sales forecasting. iii) Studying the characteristics of product markets. iv) Analyzing sales potential. v) Studying the market trends. i) Customer acceptance of the proposed new products. ii) Comparative study of competitive products. iii) Determining new uses of the present products. iv) Test-marketing the proposed products. v) Studying the extent of customer satisfaction/ dissatisfaction with the companys products. vi) Product line research. vii) Packaging and design research. i) Evaluating advertising effectiveness. ii) Analyzing advertising and selling practices. iii) Selecting advertising media. iv) Motivational studies. v) Establishing sales territories. vi) Evaluating the present and the proposed sales methods. vii) Studying competitive pricing. viii) Analyzing the salesmens effectiveness. i) Location and design of distribution centers. ii) Handling and packaging of merchandise. iii) Cost analysis of transportation methods. iv) Dealer supply and storage requirements. i) Demand elasticities. ii) Perceived prices iii) Cost analysis i)

iv) Margin analysis

1.1.13. Benefits of Marketing Research

1) Significance to Business and Industry i) Decision-making Tool: Marketing research is useful for taking marketing management decision. It provides necessary information and data in analyzed and processed forms for making marketing decisions. With advanced technology, higher production functions and an increasing marketing complex, market research has become an indispensable tool for taking appropriate decisions. ii) Management Planning: Marketing research is used for management planning. It deals with marketing opportunities, i.e., those opportunities which are viable to be exploited by management. Thus, marketing management can assess the resources that will be useful for the business. iii) Problem-Solving: Starting from problem identification to formulation of alternative solutions, and evaluating the alternatives in every area of marketing management, is the problem-solving action of marketing research. iv) Control Technique: Marketing research is used as a control technique of marketing management to find out the weaknesses and shortcoming of the management decisions to reorient the planning and performance techniques. v) Large-Scale Production: Marketing research helps large-scale production by providing suitable decisions to be undertaken by the producers to exploit the existing production resources to meet the growing markets. The resources of production and market potentials are properly assessed by marketing research.

vi) Complex Market: The advancement of science and technology and the standard of living of consumers necessitate closer touch with the growing markets. The size and specialization within the business unit and the intervention of numerous middlemen between the manufacturer and customers created a wide communication gap. vii) Pattern of Consumption: The pattern of consumption is to be assessed by the marketing management. The study of buyers behavior, attitudes and capacity to purchase is very important in marketing research. The purchasing power of a consumer depends upon his disposable personal income. Thus, the total purchasing power of a country or geographical area can be assessed by the disposable income of the place. viii)Market Complex: The marketing activities are influenced by several internal and external environments. Internal environments include price, promotion, production and place (distribution), whereas the external environments include economic, sociological, political, legal and government motives. ix) Suitable Marketing Operations: Marketing operations decide production functions, and marketing operations can be better decided by the findings of marketing research. x) Pricing: In marketing management, pricing is not arbitrary for follow up action of competitors. It has to be judiciously fixed which is done effectively with the study of various marketing variables. xi) Marketing Strategy: Marketing management has to lay down appropriate marketing strategies to meet competition to pursue growth in market and to attain organizational objectives. xii) Distribution: Marketing research helps the members of the channel of distribution to formulate suitable policies and programmes to solve their problems. xiii) Sales Promotion: Marketing research can decide suitable media of sales promotion after a study of the various channels of promotion. The costs and benefits of advertising, personal selling and wide publicity should be studied to decide the most appropriate media of sales promotion. 2) Significance to Economy i) Production: Suitable production functions are adopted to meet the market demand. In the absence of marketing research, production will be undertaken without knowing its ultimate result. It may exceed the market demand or may lag behind. It may not meet the consumers needs, interest and willingness to purchase. ii) Distribution: The market researcher finds suitable channels of distribution. Those coming in the channel of distribution may get a reasonable margin for their services. Thus, the producers and distributors are benefited.

iii) Employment: The increased production, widespread distribution and promotion functions increase employment opportunities in the country. Increasing production requires more personnel; distribution needs more businessmen in the areas of wholesaling and retailing. iv) National Income: With the increase of production, distribution and marketing activities, the national income increases. The diversified economic activities act as an impetus to the growth of national income. v) Reduce Recession: Recession occurs when the production exceeds the capacity of the market. The disequilibrium between production and the market can be avoided with the use of the findings of marketing research. vi) Avoid Crisis: Similar to recession, a crisis is also troublesome to people. The scarcity of production causes a crisis in the economy, and it is unable to meet the market demand. If the findings of market research are used, the disequilibrium between the market and production can be corrected. vii) Non-Profit Organizations: The use of marketing research has not been extended to non-profit organizations to find out their clients and to pursue them in an effective manner to receive their support.

1.1.14. Limitations of Marketing Research

1) Fragmentary: Many times, marketing research tends to be fragmentary in its approach as a result of which it becomes difficult to have an overall perspective in which a marketing problem is to be viewed and studied. 2) Superficial and Faulty: Marketing research is criticized on the ground that it becomes too superficial and faulty in industry. While the principles of marketing research are good and based on scientific lines, in industry, marketing research is very often used by those who have had no formal training in the subject. 3) Communication Gap: There is an absence of a meaningful dialogue between the marketing management and the marketing research team. As a result, marketing researchers get divorced from the main stream of marketing. 4) Not a Science: Marketing research is not an exact science, there are several imponderables which come in the way of getting accurate results. For example, consumer behavior is an area which is rather elusive and the theory does not go very far in disclosing it very precisely. Analytical tools of marketing research are still deficient and cannot give a precise idea, especially on the behavioral aspects. 5) Misused: Apart from these limitations of marketing research, one finds that it is sometimes misused. These misapplications, strictly speaking, are not the limitations of the subject as such. 6) Delay in Decision: Another misuse of marketing research is found in deliberately delaying decisionmaking. In the hands of vested interests, it may be used to avoid taking a certain decision or delaying it until the findings of marketing research are available. 7) As a tool for Grabbing Power and Authority: It is used to grab power and authority in an organization. Executives who are over-ambitious may use marketing research to consolidate and strengthen their position in the organization as also to extend their authority over their colleagues. 8) Failure to Conduct Controlled Experiments: In marketing research process, controlled experimentation is not possible due to presence of so many variables in the marketing phenomenon. 9) Time Constraints: The methodology of marketing research is quite time consuming. It studies tastes of human beings, their preferences and habits as well as the intentions which are always changing with time. The time gap affects the successful implementation of research findings. Thus one should try to complete such studies in the shortest possible time so that decisions based on it are valid for coming period. Here time is a more important factor than accuracy.