Marketing Research

Meaning & Definition

Marketing research is the systematic gathering, recording, and
analysis of qualitative and quantitative data about issues relating
to marketing products and services. The goal is to identify and assess
how changing elements of the marketing mix impacts customer
behaviour.
or
Marketing research is the systematic collection and analysis of data
relating to sale and distribution of financial products and services.

Marketing research is nothing but gathering and analysis of

information about the moving of goods or services from producer to
consumer.
According to the Marketing Research Association (2000), Marketing’
Research is defined as follows- “Marketing Research is the function
which 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.”
It covers three wide areas:
market analysis, which yields information about the marketplace;
product research, which yields information about the characteristics
and desires for the product;
and consumer research, which yields information about the needs
and motivations of the consumer.
The results of marketing research will supply facts needed to make
marketing decisions and will determine the extent and location of the
market for a product or service.

Nature/Features of Marketing Research:

(1) Intensive Study- It involves systematic and intensive study of
a marketing problem.
(2) Planned Process- it is a planned procedure of investigation
and analysis.
(3) Orderly Investigation- The procedure of marketing research
has clearly-defined steps in proper sequence or order.
(4) Scientific Approach- Marketing research adopts scientific
method and objectivity in the solution of a marketing
problem.
(5) Rational Outlook- Researcher or analyst has an objective
attitude — rational outlook based on reason and logic.
(6) Defined Purpose- The purpose of inquiry and the problem
under investigation are clearly defined.
(7) Accuracy- Accuracy (exactness) in calculation, in
observation and in reporting is strictly ensured.
(8) Standardised Process- Marketing research process is
standardised and can be repeated exactly in solving all
problems.
(9) Decision Tool- Marketing research is a tool for decision-
making and control in the marketing of goods.

Objectives of Marketing Research:

Marketing research helps the marketing executive in the formulation
of all marketing plans, policies, programmes and procedures, to attain
the marketing goals. When the above said plans, policies and
programmes are translated into action, marketing research is used for
evaluation purposes.

Since the main thrust of marketing research is on selling, promotion,

advertising and distribution, it is used in minimizing all wasteful and
unnecessary marketing cost.
It finds out the answer of following:

(i) Where are his consumers?

(ii) What they want?
(iii) When they want it and?
(iv) Where and how much they are willing to pay for it?

Hence, through marketing research, marketing management can sell

the right product through right channels of distribution to right
consumers at right places and at right price by formulating right plans,
policies and programmes with the help of right personnel.

Functions of Marketing Research:

The basic task of marketing management is that of preparing plans,
executing them and controlling operations to achieve the most
profitable allocation of company resources to current and future
market opportunities. Market research aids the management in these
efforts.

i. The emergence of buyer’s market requires continuous need of

marketing research to identify consumers’ need and ensure
their satisfaction.
ii. The ever-expanding markets require large number of
middlemen and intensive distribution. Marketing research
could help identify and solve the problems of middlemen and
distribution.
iii. There is always a change in the market conditions and the
requirements of consumers. Marketing research enables to
anticipate and meet any such changes.
iv. Marketing research can help bring about prompt adjustments
in product design and packaging.
v. It can help find out effectiveness of pricing.
vi. It can help find out the effectiveness of sales promotion and
advertisement.
 vii. It can help identify the strength and weakness of sales force.
viii. The impact of economic and taxation policies on marketing
could also know through marketing research.
In short, marketing research enables the management to identify and
solve any problem in the area of marketing and help better marketing
decisions.
Role of Research in Decision Making

Business organization are known to conduct the research for variety

of reasons:
• For gathering information about consumers or even about
business.
• Proper research is very much needed for taking correct and
proper decision.
• A good and stable research mechanism is very important for any
business irrespective of its size as well as client strength.
• It is very much needed to stay ahead in the competitive
environment.
• The primary role of managers consists of undertaking proper
research and taking effective decision.
 • Research would provide key information related to different
area of the business. This information will be analysed and used
for improving the efficiency of the business.
• Research indicates the employee and consumer preferences and
different channels and degree of competition it helps to develop
ideal and best suited strategy for enterprises.

Marketing Research Process

Some of the major steps involved in marketing research process are
as follows:
1. Identification and Defining the Problem:
The market research process begins with the identification “of a
problem faced by the company. Clear definition of the problem
helps the researcher in all subsequent research efforts including
setting of proper research objectives, the determination of the
techniques to be used, and the extent of information to be collected.

2.Statement of Research Objectives: After identifying and

defining the problem with or without explanatory research, the
researcher must take a formal statement of research objectives.
Such objectives may be stated in qualitative or quantitative terms
and expressed as research questions, statement or hypothesis. For
example, the research objective, “To find out the extent to which
sales promotion schemes affected the sales volume” is a research
objective expressed as a statement.

On the other hand, a hypothesis is a statement that can be refuted

or supported by empirical finding. The same research objective
could be stated as, “To test the proposition that sales are positively
affected by the sales promotion schemes undertaken this winter.”
Example of another hypothesis may be: “The new packaging pattern
has resulted in increase in sales and profits.” Once the objectives or
the hypotheses are developed, the researcher is ready to choose the
research design.

3. Planning the Research Design or Designing the

Research Study: After defining the research problem and
deciding the objectives, the research design must be developed. A
research design is a master plan specifying the procedure for
collecting and analysing the needed information. It represents a
framework for the research plan of action.

The objectives of the study are included in the research design to

ensure that data collected are relevant to the objectives. At this
stage, the researcher should also determine the type of sources of
information needed, the data collection method (e.g., survey or
interview), the sampling, methodology, and the timing and possible
costs of research.

4. Planning the Sample:

Sampling involves procedures that use a small number of items or
parts of the ‘population’ (total items) to make conclusion regarding
the ‘population’. Important questions in this regard are— who is to
be sampled as a rightly representative lot? Which is the target
‘population’? What should be the sample size—how large or how
small? How to select the various units to make up the sample?

5. Data Collection:
The collection of data relates to the gathering of facts to be used in
solving the problem. Hence, methods of market research are
essentially methods of data collection. Data can be secondary, i.e.,
collected from concerned reports, magazines and other periodicals,
especially written articles, government publications, company
publications, books, etc.

Data can be primary, i.e., collected from the original base through
empirical research by means of various tools.

There can be broadly two types of sources

(i) Internal sources—existing within the firm itself, such as
accounting data, salesmen’s reports, etc.

(ii) External sources—outside the firm.

6. Data Processing and Analysis: Once data have been

collected, these have to be converted into a format that will suggest
answers to the initially identified and defined problem. Data
processing begins with the editing of data and its coding. Editing
involves inspecting the data-collection forms for omission,
legibility, and consistency in classification. Before tabulation,
responses need to be classified into meaningful categories.

The rules for categorizing, recording and transferring the data to

‘data storage media’ are called codes. This coding process facilitates
the manual or computer tabulation. If computer analysis is being
used, the data can be key punched and verified.

Analysis of data represents the application of logic to the

understanding of data collected about the subject. In its simplest
form analysis may involve determination of consistent patterns and
summarising of appropriate details.
The appropriate analytical techniques chosen would depend upon
informational requirements of the problem, characteristics of the
research designs and the nature of the data gathered. The statistical
analysis may range from simple immediate analysis to very complex
multivariate analysis.

7. Formulating Conclusion, Preparing and Presenting the

Report: The final stage in the marketing research process is that of
interpreting the information and drawing conclusion for use in
managerial decision. The research report should clearly and
effectively communicate the research findings and need not include
complicated statement about the technical aspect of the study and
research methods.

Often the management is not interested in details of research design

and statistical analysis, but instead, in the concrete findings of the
research. If need be, the researcher may bring out his appropriate
recommendations or suggestions in the matter. Researchers must
make the presentation technically accurate, understandable and
useful.