Unit – 9

Marketing Research
Meaning:
It is concerned with collection of market information systematically and impartially,
analysis and evaluation of relevant data and use such data for the benefit of the organisation.
Definition:
According to American Marketing Association, ‘The systematic gathering, recording and
analysis of data about problems relating to the marketing of goods and services’.
Objectives of Marketing Research:
1. To Provide Basis for Proper Planning:
Marketing and sales forecast research provides sound basis for the formulation of all
marketing plans, policies, programmes and procedures.
2. To Reduce Marketing Costs:
Marketing research provides ways and means to reduce marketing costs like selling,
advertisement and distribution etc.
3. To Find Out New Markets for The Product:
Marketing research aims at exploring new markets for the product and maintaining the
existing ones.
4. To Determine Proper Price Policy:
Marketing research is considered helpful in the formulation of proper price policy with
regard to the products.
5. To Study in Detail Likes and Dislikes of the Consumers;
Marketing research tries to find out what the consumers, (the men and women who
constitute the market) think and want. It keeps us in touch with the consumers, minds and to study
their likes and dislikes.
6. To Know The Market Competition:
Marketing research also aims at knowing the quantum of competition prevalent in the
market about the product in question. The company may need reliable information about
competitor’s moves and strategies which are of immense significance for further planning.
Elements of Marketing Research:
1. Market Research:
It covers the aspects regarding size and nature of market including export markets, dividing
the consumers in terms of their age, sex, income (market segmentation). It may include market
trends, market share, and market potential.
2. Sales Research:
It relates to the problem of problem of regional variations in sales, fixing sales territories,
measurement of the effectiveness of a salesman, evaluation and impact of sales methods and
incentives, etc.
3. Product Research:
It relates to the analysis of strengths and weakness of the existing product, product testing
problems relating to diversification, simplification, trading up and trading down, etc.
4. Packaging Research:
In essence, it is a pat of product research. But recent developments in packaging and its
contribution to advertising has led it to occupy an important position in marketing. To know the
impact and its response in the market has become an independent research field.
5. Advertising Research:
It undertakes a study relating to the preparations of the advertisement copy, the media to
be used and the measurement of advertising effectiveness.
6. Business Economics Research:
Problems relating to input-output analysis, forecasting, price and profit analysis, and
preparation of break-even charts are the main fields of this research.
7. Export Marketing Research:
This research is intended to study the export potentials of the product. In such cases any or
all kinds of research mentioned above become necessary.
Advantages / Benefits of Marketing Research:
1. It facilitates planned production:
It enables a firm to forecast the demand for its product. With the help of sales forecast, the
amount and schedule of production can be properly planned.
2. It is helpful in judging the acceptance:
 Marketing research is helpful in judging the acceptance of new products. It reveals changes
required in the product to make it more acceptable to target customers.
3. It provides valuable information:
Marketing research provides valuable information about the market place. Such
information is helpful in improving the working of marketing purchase and production
departments. It helps to remove wasteful expenditure and to reduce cost.
4. It helps to study the effectiveness of pricing:
It helps to study the effectiveness of pricing policies, channels of distribution, advertising,
sales promotion and other marketing activities. With the help of such appraisal, defects in
marketing programme can be located and eliminated.
5. It is used to understand consumers behavior:
It can also be used to understand consumer behaviour and to discover new markets and
new lines of production. It helps the firm to judge its overall standing in the industry.
6. It helps in improving relations with dealers:
It helps in improving relationship with dealers. It helps to know the reaction of middlemen
to the firm’s marketing policies and to adjust such policies.
7. It helps to overcome sales resistance:
It describes the cause of the resistance, explains the problem and helps to explore an
effective solution. Sales resistance may arise due to several factors such as physical defects in
products, inappropriate pricing policies, unsuitable distribution channels, unfavourable company
image, change in consumer’s preferences, etc.
Limitations of Marketing Research:
1. Not an exact science:
Marketing Research is not an exact science though it uses the techniques of science. Thus,
the results and conclusions drawn upon by using MR are not very accurate.
2. Limitation of time:
Systematic marketing research project needs more time. It takes weeks, months, even
years. When marketing research is carried on to investigate or solve the problem, final outcomes
are available after considerable time. When outcomes are made available, situations might have
been changed thoroughly or problem for which research was made might have been solved
automatically. Decision-maker needs information in time. But, practically, it is not possible.
Sometimes, time, money, and efforts contribute nothing.
3. Not an exact tool of forecasting:
The results of MR are very vague as MR is carried out on consumers, suppliers, intermediaries,
etc. who are humans. Humans have a tendency to behave artificially when they know that they are
being observed. Thus, the consumers and respondents upon whom the research is carried behave
artificially when they are aware that their attitudes, beliefs, views, etc are being observed.
4. In experienced research staff:
The results of a marketing research study may not be accurate due to the bias or
carelessness of the research staff. Investigators may not be able to collect, analyze and interpret
the data accurately. Sometimes, marketing research is used by executives to support their
individual views and objectives and not those of the organisation.
5. Involves high cost:
To conduct marketing research systematically is a luxury. A firm needs money for research
design, data collection, data analysis, interpretation, and report preparation. Statisticians and
computer experts charge heavy fees. When research is conducted regularly, a company has to
maintain a separate well-equipped marketing research department. Marketing research has become
costlier. So, it is difficult for medium and small companies to afford.
Marketing Information System (MIS)
Meaning:
It implies a set of procedures and methods for the planned and regular collection, analysis
and dissemination of accurate and timely information for use in marketing decision making.
Definition:
According to Philip Kotler, ‘a marketing information system consists of people, equipment
and procedures to gather, sort, analyze, evaluate and distribute needed timely and accurate
information to marketing decision makers’.
Difference between MIS and Marketing Research:
Marketing Information System Marketing Research
It suggests methods to prevent and solve the It presents the problems pertaining to
problems for the whole organisation particular field of activity
 The past experiences form the basis for future It is only a post-mortem of what had taken
place already, in most cases
It is a fairly wide concept and includes It remains as a source for contributing
marketing research as one of its elements information to MIS
It is a continuous process It operates on specific problems
It prevents as well as solves problems related It is concerned with finding out the solutions
to marketing for marketing problems
It developed in 1960s It developed in 1950s

Marketing Ethics:
It is defined as principles that define acceptable conduct in marketing. These principles or
standards encourage marketers to conform to society’s expectation.
Need for Marketing Ethics:
1. To maintain public confidence:
Unethical marketing practices on the part of few business firms can erode public
confidence in marketing. Companies can restore and increase the confidence of public by setting
and enforcing high ethical standards in marketing. It is in the very interest of business itself to be
ethical because consumers are the mainstay of business.
2. To avoid Government regulation:
Unethical marketing practices increase the probability of Government control on business.
Honest and fair dealings with consumers help business firms to avoid such control and thereby
retain the freedom of operations.
3. To regain Social Power:
Marketers can regain and improve their power and influence over society by fulfilling their
responsibility to consumers and other groups in society. They need to use their power in a manner
that is acceptable to society.
4. To boost Public image:
People form an opinion about a business enterprise on the basis of their experience. When
marketers care for consumers, customers form a positive opinion. Ethical marketing behaviour can
protect the image of the enterprise.
5. For enlightened Self-interest:
 Many marketers engage in ethical behaviour due to enlightened self-interest or in the
expectation that ethics pays. They believe that if they do not act in the public interest, the public
and customers will strike back in one way or other. Consumers avoid marketers who are perceived
to be unethical.
Ethical Issues in Marketing Issues:
1. Unethical Product and Distribution Practices:
Several product-related issues, especially regarding the quality of products and services
raise questions about ethical conduct in marketing. The most frequent complaints are voiced
regarding the products which are of unsafe nature. The company which is making products that
are of poor quality or is potentially unsafe for its consumers may jeopardize its image and develop
a reputation for poor quality products or services. It may also put itself in the situation of product
claims or legal actions.
Ethical issues may arise in the distribution process as well. Since the marketing personnel
and sales representatives are evaluated mostly on the basis of sales performance, they may face
performance pressure and this pressure may lead to ethical dilemmas. This may lead to unethical
practices like pushing sales for products with a higher commission, exerting influence on vendors
to reduce promotions for competitors’ products, or making false promises regarding shipment
dates and quantities.
2. Deceptive Marketing Practices:
Deception is making the customer believe in the value provided by the product/service
which it actually doesn’t provide. It may take the form of misrepresentation or omission of key
facts or misleading practices. This may also involve the omission of important terms and
conditions of sale and bait-and-switch selling techniques in which a product/service is offered
usually at a lower price and the customers are then encouraged to buy more expensive items.
3. Offensive and Objectionable Materials and Marketing Practices:
The promotional materials, advertisements, and publications that are perceived as
objectionable may create strong negative reactions for the organization. When people find the
products or the promotion and advertising media as objectionable, they may force the vendors to
stop carrying the product. Direct marketing also involves objectionable practices ranging from
minor irritants like the frequency and timing of sales calls, letters or e-mails, to the ones that are
even illegal. The practices that may raise ethical questions are persistent and annoying
telemarketing calls, sales disguised as contests, use of mailing lists containing personal mail IDs,
junk mails, etc.
4. Marketing Research and Benchmarking:
This is another area in which ethical questions may arise. Consumers and entities being
benchmarked may consider it an invasion of their privacy. They are usually resistant to giving out
personal information. However, in order to obtain correct and better data, researchers may act by
unfair means. The same may happen in the case of benchmarking. In some cases, the questions
may be modified in a way to gain information which the respondent would not be willing to share
otherwise. Organizations have to impose ethical standards for themselves in such instances.
5. Price issues:
The ethical issues regarding this include unfair price differentials, pricing to eliminate local
competition by selling products at prices that are well below those in the home country, or adopting
pricing practices that are illegal in the home country but are legal in the host country like price-
fixing arrangements and forming cartels.
Post Modern Marketing:
Postmodern Marketing is a term derived from postmodern philosophical movements
where there are cultural tendencies of inherent suspicion towards a global cultural narrative or
meta-narrative. Postmodern marketing takes this same philosophical perspective and applies it to
the way advertising initiatives are handled in the current post-World War II era. Postmodern
marketing is approaching or has passed through a new era in advertising, branding, and
strategic brand thinking. Postmodern marketing is inherently focused on customized experiences
where broad market generalizations are no-longer applied or implemented on behalf of branded
communications.
Experiential Marketing:
Experiential marketing is marketing strategy that engages the consumer and creates real-
life experience that will be remembered. This type of marketing focuses on getting the consumer
to experience the brand.
Big Data Analytics:
Big data is becoming a fundamental tool in sales and marketing. In the marketing sector,
big data comprises gathering, analyzing, and using massive amounts of digital information to
improve business operations.
Benefits of Big data in Marketing:
1. Know your audience better:
With clear data, marketers can even segment customers as sub-groups with their specific
features and activities online. They can customize operations and improve customer journeys, in
which every single client receives products or services based on their personal preferences. Based
on careful monitoring, they can also adjust prices to their products and services in real time. Big
data helps to measure people’s reactions to each marketing activity. With big data analytics,
business intelligence can be improved by making positive changes such as improving existing
products or increasing revenue per customer.
2. Increase in brand awareness:
Brand awareness is another way big data can have a significant impact on marketing. Based
on this data, companies can also identify their loyal customers who are repeat buyers and who
recommend your brand to their friends and family members. You can also measure ROI, as big
data takes into account all marketing channels, activities, and investments and conducts a cost-
benefit analysis of each element. You will get the option to track your marketing activities and the
corresponding budget.
3. Better customer acquisition:
One of the major benefits of big data in marketing is improved customer acquisition.
According to a survey by McKinsey, serious users of customer analytics are more likely to clearly
outperform their competitors in terms of new customer acquisition. Growth of big data also
benefits the cloud computing industry. This is because big data’s demand for huge data storage
cannot be met without the features of cloud computing. Cloud computing allows data analysis
from numerous sources. Beyond those basic characteristics, innovations in cloud computing
continue to provide benefits to big data marketing initiatives. It facilitates the use of virtual
machines and containers and gives the marketing team the flexibility to reduce workloads and
innovate new solutions that physical infrastructure cannot provide.
4. Provide content of customer interest:
Content marketing is a crucial strategy in attracting targeted audience to your business. To
compete efficiently, businesses can use big data to provide content to their targeted audience.
Major companies like Facebook and Google are using big data analysis to allow advertisers to
target content with people of desired interests and behavior. Marketers can now deliver relevant
content to their website visitors, based on details such as where they clicked and where they came
from.