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MM - Module 5
MM - Module 5
MM - Module 5
MARKETING RESEARCH
Clear Goals:
Marketing research begins with a problem and attempts to find measures to
solve that problem. So the primary goal of marketing research is to find out
solution for the problems identified.
Continuous Process:
The process of marketing is continuous in nature. The reason is that there is no
end for the problems in marketing. After solving one problem, another arises.
Thus, research is required throughout the course of marketing.
Systematic:
Marketing research is a systematic process. It utilises well designed method to
collect the data and analyse the results. Marketing research adopts systematic
problem solving which ascertains crucial variables in the problem and studies
relationships between them.
Wide scope:
Marketing research deals with the entire aspects of marketing. Introduction of
new products, identification of suitable markets, selection of appropriate
strategies, study of market competition and consumer preferences, introduction
of suitable advertising and sales promotion strategies are some of the areas
covered by marketing research.
Beneficial to the company and the Consumers:
Marketing research is helps to solve the problems and choose the best
marketing strategies. Thus, it is highly useful for improving the performance
and profits of the company. Consumers get best goods and more satisfaction as
a result of marketing research.
Inputs for Decision Making:
Marketing research is helps to solve the problems and choose the best
marketing strategies. Thus, it is highly useful for improving the performance
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and profits of the company. Consumers get best goods and more satisfaction as
a result of marketing research.
Applied Research:
Marketing research is an applied area of research. It uses the various
techniques of research in marketing for solving specific marketing problems.
1. Product Research:
This includes development and testing of new products, improving the existing
products.
2. Customer Research:
Customer research covers areas like customer buying behaviour, the economic, social,
cultural, personal and psychological influences of buying.
3. Sales Research:
It involves decisions concerning selection of location, channels of distribution, sales
force motivation and compensation. The purpose of sales research is to effectively
reaching the target customers.
4. Promotion Research:
promotion research covers all efforts by the companies to communicate the products
and services to customers. This includes advertising, publicity, public relations and
sales promotion.
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PROCESS OF MARKETING RESEARCH
1. Identification of the problem:
The first step in the marketing research process is to identify the specific marketing
problem. The problem may be
development of new products, identification of
marketing needs or establishment of the distribution network. The problem must be
clear and specific for the smooth conduct of the research.
2. Clarification of the problem:
The initial problem identified may be too large or broad in scope. In such situations,
the researcher has to clarify and define the problem. The researcher must understand
the problem correctly. He must find out the scope of the problem, the type of
information needed, etc. If the problem is not defined properly, then it will result in
waste of money and resources.
3. Formulation of Objectives:
Objectives are the goals set out by the researcher to attain through the study.
Research begins with a problem and attempts to find measures to solve that problem.
So the primary objective of every research is to find out the solution for the problem.
For this, the researcher has to clearly formulate the major objectives and the direction
of his research.
4. Preparation of the Research Design:
Research design is the conceptual structure within which research would be
conducted. The function of research design is to provide for collection of relevant
information with minimal expenditure of effort, time and money. Every research
adopts a definite course of action to explore the measures to solve the problem
undertaken by it.
5. Determining the Sample Design:
Researchers usually draw conclusions about large population by taking a sample.
Sample design is an important area in the process of marketing research. A Sample is
a segment of the population selected to represent the population as a whole.
Appropriate sample design improves the quality ol marketing research.
6. Collection of Data:
Once the research design is prepared, the actual study begins with the collection of
data. The collection of data is a critical step in providing the information needed to
answer the research question. A researcher gathers data relevant to the research
problem. The data includes reports, records, statements, opinions, events,
happenings, and observations.
7. Analysis of the Data:
The worth of the collected data relies on the method applied by the researcher to
analyse it in order to wheedle out its exact meaning. Analysing data involves a number
of operations which are performed with the purpose of summarising the collected data
and organising these in a manner that they answer the research questions.
8. Reporting the Findings:
Writing the report is the last, and for many, the most difficult step of the research
process. The report informs the world, the content and findings of research. The report
should be written in an academic style. Language should be formal and simple.
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9. Follow up:
The last step in a marketing research process is to do a Mow up. this stage, the
marketing firm makes changes in the product, price, marketing policies, etc. as per
the recommendations of the research report.
MARKETING RISK
Risk is the possibility or chance of loss. In marketing, there are many known and unknown
risk factors. The existence of these risk factors causes deviations in the earnings (return) from
the marketing activities. The chance of loss in marketing activities is known as marketing risk.
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3. Brand Risk:
The term brand refers to a type of product manufactured by a particular company under a
particular name. Brand risk means anything that threatens the existence of a brand in the
market. Introduction of new brands, competitive pricing and innovations may changes in the
brand preferences of consumers.
4. Advertising Risk:
The major risk in advertising is the mismatch between the cost of advertisement and sales.
Companies are spending huge amount of money in expectation of increased sales. But,
expectations may go when the actual sales are lower than the cost incurred for advertising.
5. Economic Risk:
The changes in the economic conditions may cause several risks in marketing. In an
inflationary situation, the cost of production and marketing rises. This reduces the profitability
of the marketing activities. In the case of deflation, sales declines as a result of the decline in
the purchasing power of consumers.
6. Political Risk:
Changes and uncertainties in the political environment pose threats to the marketing
activities. The policies of the political parties and the system of governance influence the
marketing functions.
7. Legal Framework:
The marketing activities are greatly influenced by the legal framework. The laws, statutes and
regulations of the enforcement agencies may impose restrictions on marketing activities which
obstruct companies from attaining the anticipated results.
MARKETING AUDIT
Marketing audit is a programme to evaluate marketing activities and ensure that they are
going in the right direction. The audit process helps companies to analyse and marketing
strategies, activities, goals and results. A marketing audit analyses the business objectives and
understands and helps the management to make decisions on their future marketing
direction. Marketing audit is an extensive, systematic, independent and regular examination of
a company’s marketing activities.
Marketing audit evaluates marketing environment, objectives, plans, policies and strategies of
a company. After evaluation, it identifies various problems, and weaknesses faced by the
company in its marketing activities. It is usually conducted to suggest measures solve
problems in marketing. It tries to explore new marketing opportunities for a company.
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OBJECTIVES OF MARKETING AUDIT:
1. To evaluate the marketing activities in order to ensure that they are going in the right
direction.
2. To improve marketing performance.
3. To effectively face the challenges of competition.
4. To evolve appropriate marketing strategies.
5. To improve profitability.
6. To modify the product, price, place and promotion in accordance with the changes in
marketing environment.
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4. Marketing Systems Audit:
In this audit, the auditor examines the various systems of marketing such as the marketing
information system, marketing planning system, marketing control system and the system for
developing new products.
5. Marketing Productivity Audit:
The auditor evaluates the productivity or output of marketing such as the profitability analysis
and cost efficiency analysis.
6. Marketing Function Audit:
It is a detailed examination of all the functions of marketing. It includes evaluation of the
product, price, promotion, place and people.
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