MARKETING RESEARCH

Related terms-
• Market a place where people go to buy and sell things.
• Research a detailed and careful study of something to find out more information
about it.
• Marketing the activity of showing and advertising a company’s products in the best
possible way

Marketing
• Marketing is a management process through which goods and services move from
concept to the consumer.
• It includes identifying a product, determining its demand, deciding on a price, and
selecting distribution channels. It also includes creating and implementing a
promotional strategy.

What is marketing research?

Marketing research is defined as any technique or a set of practices that companies use to
collect information to understand their target market better.
Organizations use this data to improve their products, to offer a better product to their
customers. So, marketing research is used to determine what the customers want, and how
they react to products or features of a product.

Scope of Marketing Research

1. Diagnosing the current situation or problem based on detailed information.
2. Clearly identifying competitive strengths and weaknesses.
3. Constantly analyzing what is happening in the market place.
4. Planning to watch company’s strengths with market opportunities by outlining objectives
for product and market development and devising strategies and tactics to achieve them.
5. Watching out continuously for threats to the achievement of those plans.
6. Monitoring the progress of strategy implementation.
7. Research creativity, at its best, marketing research develops innovative ways to solve
problems.
 The main objective of marketing research is to enable manufacturers to make goods
acceptable and saleable and to see that they reach the market more easily, quickly, cheaply
and profitably without sacrificing consumer interest.

Marketing identifies consumers’ needs and supplies various goods and services to
satisfy those needs most effectively. So the businessman needs to:
(a) Produce or manufacture the product according to consumers’ need;
(b) Make available it at a price that the consumers’ find reasonable;
(c) Supply the product to the consumers at different outlets they can conveniently approach
(d) Inform the consumers about the product and its characteristics through the media they
have access to.

So the marketing manager concentrates on four major decision areas while planning
the marketing activities, namely,
(i) Products
(ii) Price
(iii) Place (distribution)
(iv) Promotion.

These 4 ‘P’s are called as elements of marketing and together they constitute the marketing
mix. All these are inter-related because a decision in one area affects decisions in other areas.
This lesson gives information about the basic aspects relating to these 4‘P’s viz., product,
price, place and promotion.
Marketing involves a number of activities. To begin with, an organisation may decide on its
target group of customers to be served. Once the target group is decided, the product is to be
placed in the market by providing the appropriate product, price, distribution and promotional
efforts. These are to be combined or mixed in an appropriate proportion so as to achieve the
marketing goal. Such mix of product, price, distribution and promotional efforts is known as
‘Marketing Mix’.

According to Philip Kotler “Marketing Mix is the set of controllable variables that the firm
can use to influence the buyer’s response”. The controllable variables in this context refer to
the 4 ‘P’s [product, price, place (distribution) and promotion]. Each firm strives to build up
such a composition of 4‘P’s, which can create highest level of consumer satisfaction and at
the same time meet its organisational objectives. Thus, this mix is assembled keeping in mind
the needs of target customers, and it varies from one organisation to another depending upon
its available resources and marketing objectives. Let us now have a brief idea about the four
components of marketing mix.

MARKETING PRINCIPLE

Some companies may follow the 4Ps Strategy (or 4P Strategy).

The term ‘4Ps’ stands for -
• Product
• Price
• Place
• Promotion

It is also known as the -

• 4P Marketing Matrix
• 4P Strategy/Matrix
• Four ‘controllable‘ categories
• They are ‘controllable’ because our efforts affect them or their outcomes.
“The 4P Matrix dates back to the 1960s, and is arguably the most frequently used marketing
matrix because it’s simple and it works.”

The four marketing principles

i. Product
Product: Product refers to the goods and services offered by the organization. A pair
of shoes, a lipstick, all are products. All these are purchased because they satisfy one or more
of our needs. We are paying not for the tangible product but for the benefit it will provide.
So, in simple words, product can be described as a bundle of benefits which a marketer offers
to the consumer for a price. While buying a pair of shoes, we are actually buying comfort for
our feet, while buying a lipstick we are actually paying for beauty because lipstick is likely to
make us look good. Product can also take the form of a service like an air travel,
telecommunication, etc. Thus, the term product refers to goods and services offered by the
organization for sale.
In this category, person focuses on the benefits and features of the product. We should also
consider product interaction. Below is a list of some considerations:
• Who wants the product and why?
• What needs does it satisfy?
• Does it solve problems for the consumer, or help them overcome challenges?
• Which of the product’s features help it meet the needs of the consumer?
• Does the product have a competitive advantage? If so, what is it?
A competitive advantage is something the product has that makes it stand out from
competitors’ goods. It could be the price, quality, a guarantee, or after-sales service. Ask
representative samples of consumers to try out the product. Take careful note of their
feedback regarding its pros and cons. Also, ask them whether the product lacks features. Ask
them how it compares to competing products.

ii. Price
Price is the amount charged for a product or service. It is the second most important element
in the marketing mix. Fixing the price of the product is a tricky job. Many factors like
demand for a product, cost involved, consumer’s ability to pay, prices charged by competitors
for similar products, government restrictions etc. have to be kept in mind while fixing the
price. In fact, pricing is a very crucial decision area as it has its effect on demand for the
product and also on the profitability of the firm.
Beside this, the price of product can determine many things, including profit margin and
investments for future growth. Price also determines what kind of discounts or special deals
can be offer. As far as the consumer is concerned, price is not everything. Quality, for
example, and after-sales service also matter. However, price is an important consideration.

iii. Place
Goods are produced to be sold to the consumers. They must be made available to the
consumers at a place where they can conveniently make purchase. Woollens are
manufactured on a large scale in Ludhiana and you purchase them at a store from the nearby
market in your town. So, it is necessary that the product is available at shops in your town.
This involves a chain of individuals and institutions like distributors, wholesalers and
retailers who constitute firm’s distribution network (also called a channel of distribution).
The organization has to decide whether to sell directly to the retailer or through the
distributors/wholesaler etc. It can even plan to sell it directly to consumers.
Where the manufacturer makes the product and where people buy it can significantly
influence its price (due to transportation cost). Location can also affect customer service and
how quickly you can respond to orders and customer requests. In this category, people should
consider the following factors:
• Where is the best place to sell it?
• Where are consumers or potential purchasers going to look for it?
• How are you going to get the product to where the consumers are?
• Is this a B2B or B2C product?
• B2B means business-to-business, while B2C means business-to-customer.
• In other words, are you going to sell to businesses or directly to consumers?
• With some products, the government is the main customer. The government might
even be the only customer. A company that sells mainly to the government is a B2G
(business-to-government) business. Defence contractors are usually B2G businesses.

iv. Promotion
If the product is manufactured keeping the consumer needs in mind, is rightly priced
and made available at outlets convenient to them but the consumer is not made aware about
its price, features, availability etc, its marketing effort may not be successful. Therefore
promotion is an important ingredient of marketing mix as it refers to a process of informing,
persuading and influencing a consumer to make choice of the product to be bought.
Promotion is done through means of personal selling, advertising, publicity and sales
promotion. It is done mainly with a view to provide information to prospective consumers
about the availability, characteristics and uses of a product. It arouses potential consumer’s
interest in the product, compare it with competitors’ product and make his/ her choice. The
proliferation of print and electronic media has immensely helped the process of promotion.

In other words it can be said that If you want people to buy your product, you must make sure
they know about it. Among the four marketing principles, promotion is one that many people
do not take seriously enough. You need to determine how you will get your marketing
message to your target market, and when you will begin promoting it. If the product is
seasonal, knowing when and how to promote it is crucial.

In 1980, concept of 7‘P’s are called as elements of marketing and together they constitute the
marketing mix. All these are inter-related because a decision in one area affects decisions in
other areas. These ‘7 P’s, are-
i. Product
ii. Price
iii. Place
iv. Promotion
v. People
vi. Process
VII. Physical Evidence
V. People
Anyone who comes into contact direct and indirect touch with your target clients/ customers
will make an impression, and that can have a profound effect - positive or negative - on the
customer satisfaction. The reputation of your brand rests in your people’s hands who
represents a brand or deals with customers are must be appropriately, fully trained sales
professionals with an intimate knowledge of the product, well-motivated and the right
attitude.
 It is essential to ensure that all employees who have contact with customers are not
only properly trained but also the right kind of people for the job.
 Many customers cannot separate the product or service from the staff member who
provides it. This shows the importance of your people.
 The level of after sale support and advice provided by a business is one way of adding
value to what you offer, and can give you an important edge over your competitors.
This will probable become more important than price for many customers once they
start to use you.
 Look regularly at the products that account for the highest percentage of your sales.
Do these products have adequate after support, or are you being complacent with
them? Could you enhance your support without too much additional cost?
 Traditionally, adding the sixth and seventh P’s would be for service industries.
However, they are worth considering for products too, especially in B2B.

VI. Process
Process in one the “P’s” that is frequently overlooked. A customer trying to reach your
company by phone is a vital source of income and returning value; but so often customers
have to stay on hold for several minutes listening to a recorded message before they are able
to get though. Many of these customers will hang up, go elsewhere and tell their friends not
to use your company. The process of giving a service, and the behaviour of those who deliver
and crucial to customer satisfaction. Issues such as waiting times, the information given to
customers and the helpfulness of staff are all vital to keep customers happy.

 Customers are not interested in the detail of how your business runs. What matters to
them is that the system works.
  Do customers have to wait? Are they kept informed? Are your people helpful? Is your
service efficiently carried out? Do your people interact in a manner appropriate to
your service?

VII. Physical Evidence:

A service can’t be experienced before it is delivered. This means that choosing to use a
service can be perceived as a risky business because you are buying something intangible.
This is uncertainly can be reduced by helping potential customers to “see” what they are
buying. Cases studies and testimonials can provide evidence that an organization keeps its
promises. Facilities such as a clean, tidy and well-decorated reception area can also help to
reassure. If your premises aren’t up to scratch, why would the customer think your service is?

Physical evidence included-

Tangible goods and experiences that convince clients that your product is genuine
 Physical store or office for business
 Bills-proof of purchases
 Packaging materials with brand name etc.

In the case of digital/ Online business-

 Website visits
 Confirmation emails
 Client feedback
 Digital receipts etc.

“The 4P/ 7P Matrix can help-

• Define marketing options
• Planning to launch a new product
• Evaluating an existing one
PRODUCT CLASSIFICATION
Product
William J. Stanton “Product is a set of tangible and intangible attributes including packaging,
colour, price, manufacturer’s prestige, retailer’s prestige and manufacturer’s and retailer’s
services which buyer may accept as offering satisfaction of wants and services”.

Jerome McCarthy “A product is more than just a physical product with its related functional
and aesthetic features. It includes accessories, installation, instructions on use, the package,
perhaps a brand name, which fulfils some psychological needs and the assurances that service
facilities will be available to meet the customer needs after the purchase”.

Product can be broadly classified on the basis of:

1) Use
2) Durability
3) Tangibility

Let us have a brief idea about the various categories and their exact nature under each head,
noting at the same time that in marketing the terms ‘product’ and ‘goods’ are often used
interchangeably.

1) Based on use:
The product can be classified as-
a. Consumer Goods
b. Industrial Goods

a) Consumer goods
Goods meant for personal consumption by the households or ultimate consumers are called
consumer goods. This includes items like toiletries, clothes etc. Based on consumers’ buying
behaviour the consumer goods can be further classified as-

i. Convenience Goods
ii. Shopping Goods
iii. Speciality Goods
Convenience Goods :
Do you remember, the last time when did you buy a packet of soap or a soft drink or a
grocery item? Perhaps you don’t remember, or you will say last week or yesterday. Reason is,
these goods belong to the categories of convenience goods which are bought frequently
without much planning or shopping effort and are also consumed quickly. Buying decision in
case of these goods does not involve much pre-planning. Such goods are usually sold at
convenient retail outlets.

Shopping Goods:
These are goods which are purchased less frequently and are used very slowly like clothes,
shoes, household cloth items. In case of these goods, consumers make choice of a product
considering its suitability, price, style, quality and products of competitors and substitutes, if
any. In other words, the consumers usually spend a considerable amount of time and effort to
finalize their purchase decision as they lack complete information prior to their shopping trip.
It may be noted that shopping goods involve much more expenses than convenience goods.

Specialty Goods:
Because of some special characteristics of certain categories of goods people generally put
special efforts to buy them. They are ready to buy these goods at prices at which they are
offered and also put in extra time to locate the seller to make the purchase. The nearest car
dealer may be ten kilometres away but the buyer will go there to inspect and purchase it. In
fact, prior to making a trip to buy the product he/she will collect complete information about
the various brands. Examples of specialty goods are cameras, TV sets, new automobiles,
jewellery etc.

B.) Industrial Goods:

Goods meant for consumption or use as inputs in production of other products or provision of
some service is termed as ‘industrial goods’. These are meant for non-personal.

Commercial use included-

a) Raw materials
b) Machinery
c) Components
d) Operating supplies (such as lubricants, stationery etc).
The buyers of industrial goods are supposed to be knowledgeable, cost conscious and rational
in their purchase and therefore, the marketers follow different pricing, distribution and
promotional strategies for their sale. It may be noted that the same product may be classified
as consumer goods as well as industrial goods depending upon its end use. Take for example
the case of coconut oil. When it is used as hair oil or cooking oil, it is treated as consumer
goods and when used for manufacturing a bath soap it is termed as industrial goods.
However, the way these products are marketed to these two groups are very different because
purchase by industrial buyer is usually large in quantity and bought either directly from the
manufacturer or the local distributor.

Based on Durability
The products can be classified as :
i) Durable Goods
ii) Non-durable Goods

i. Durable Goods:
Durable goods are products which are used for a long period i.e., for months or years
together. Examples of such goods are jewellery, clothes, washing machine etc. Such goods
generally require more of personal selling efforts and have high profit margins. In case of
these goods, seller’s reputation and presale and after-sale service are important determinants
of purchase decision.

ii. Non-durable Goods: Non-durable goods are products that are normally consumed in one
go or last for a few uses. Examples of such products are soap, cloth conditioner, etc. These
items are consumed quickly and we purchase these goods more often. Such items are
generally made available by the producer through large number of convenient retail outlets.
Profit margins on such items are usually kept low and heavy advertising is done to attract
people towards their trial and use.

Based on tangibility, the products can be classified as:

a) Tangible Goods
b) Intangible Goods
a. Tangible Goods:
Most goods, whether these are consumer goods or industrial goods and whether these are
durable or non-durable, fall in this category as they have a physical form that can be touched
and seen. Thus, all items like groceries, cars, raw-materials, machinery etc. fall in the
category of tangible goods.

b. Intangible Goods:
Intangible goods refer to services provided to the individual consumers or to the
organizational buyers (industrial, commercial, institutional, government etc.). Services are
essentially intangible activities which provide want or need satisfaction. Medical treatment,
postal, banking and insurance services etc., all fall in this category.

Types of Marketing Research

Marketing research is conducted to get the answer of following-
• Analysis of marketing performance
• Brand awareness research
• Brand association research
• Marketing effectiveness
• Sales forecasting
• Trend spotting
• Demand estimation

THE MARKETING RESEARCH PROCESS

Marketing Research is very much essential to make strategic decisions which are important
for the growth of the organisation. It helps in making the right decisions systematically using
statistical methods. Marketing Research reduces the uncertainty in the decision-making
process and increase the probability and magnitude of success if conducted in a systematic,
analytical, and objective manner. Marketing research by itself does not arrive at marketing
decisions, nor does it guarantee that the organization will be successful in marketing its
products. It is only a tool which helps in the decision making process.
The Marketing Research Process involves a number of inter-related activities which have
bearing on each other. Once the need for Marketing Research has been established, broadly it
involves the steps as depicted in below:
1. Define the research problem
The first step in Marketing is to define the research problem. A problem well defined is half-
solved. If a problem is poorly defined, a good research design cannot be developed. The
decision problem faced by the organisation must be translated into a market research problem
in the form of questions. These questions must define the information that is required to make
the decision and how this information can be obtained. This way, the decision problem gets
translated into a research problem. For example, a decision problem may be whether to
launch a new product. The corresponding research problem might be to assess whether
the market would accept the new product. In order to define the problem more precisely,
an exploratory research can be carried out. Survey of secondary data, pilot studies or
experience surveys are some of the popular methods.
2. Determine research design
The research design specifies the method and procedure for conducting a particular
study. As studied already, marketing research and hence the research designs can be
classified into one of three categories-
i. Exploratory research
ii. Descriptive research
iii. Causal research
This classification is based on the objective of the research. In some cases the research will
fall into one of these categories, but in other cases different phases of the same research
project will fall into different categories. Problems are formulated clearly in exploratory
research. It aims at clarifying concepts, gathering explanations, gaining insight, eliminating
impractical ideas, and forming hypotheses.
Exploratory research can be performed using a literature search, surveying certain
people about their experiences, focus groups, and case studies. During the survey, exploratory
research studies would not try to acquire a representative sample, but rather, seek to interview
those who are knowledgeable and who might be able to provide insight concerning the
relationship among variables. Case studies can include contrasting situations or
benchmarking against an organization known for its excellence. Exploratory research may
develop hypotheses, but it does not seek to test them. Exploratory research is characterized by
its flexibility.
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.
Descriptive research is more rigid than exploratory research and seeks to describe users of a
product, determine the proportion of the population that uses a product, or predict future
demand for a product. Descriptive research should define questions, people surveyed, and the
method of analysis prior to beginning data collection. In other words, the who, what, where,
when, why, and how aspects of the research should be defined. Such preparation allows one
the opportunity to make any required changes before the costly process of data collection has
begun.

There are two basic types of descriptive research:

Longitudinal studies and crosssectional studies. Longitudinal studies are time series analyses
that make repeated measurements of the same individuals, thus allowing one to monitor
behaviour such as brand-switching. However, longitudinal studies are not necessarily
representative since many people may refuse to participate because of the commitment
required. Cross-sectional studies sample the population to make measurements at a specific
point in time. A special type of cross-sectional analysis is a cohort analysis, which tracks an
aggregate of individuals who experience the same event within the same time interval over
time. Cohort analyses are useful for long-term forecasting of product demand.
Causal research seeks to find cause and affect relationships between variables. It
accomplishes this goal through laboratory and field experiments.

3. Identify data types and sources

The next step is to determine the sources of data to be used. The researcher has to decide
whether to go for primary data or secondary data. Sometimes a combination of both is
used. Before going through the time and expense of collecting primary data, one should
check for secondary data that previously may have been collected for other purposes but that
can be used in the immediate study. Secondary data may be internal to the firm, such as sales
invoices and warranty cards, or may be external to the firm such as published data or
commercially available data. The government census is a valuable source of secondary data.
Secondary data has the advantage of saving time and reducing data gathering costs. The
disadvantages are that the data may not fit the problem perfectly and that the accuracy may be
more difficult to verify for secondary data than for primary data. Many a time the secondary
data might have to be supplemented by primary data originated specifically for the study at
hand. Some common types of primary data are-
 Demographic and socioeconomic characteristics
 Psychological and lifestyle characteristics
 Attitudes and opinions
 Awareness and knowledge - for example, brand awareness
 Intentions - for example, purchase intentions. While useful, intentions are not a
reliable indication of actual future behaviour.
 Motivation - a person's motives are more stable than his/her behaviour, so motive is a
better predictor of future behaviour than is past behaviour
 Behaviour

Primary data can be obtained by communication or by observation. Communication

involves questioning respondents either verbally or in writing. This method is versatile, since
one needs to only ask for the information; however, the response may not be accurate.
Communication usually is quicker and cheaper than observation. Observation involves the
recording of actions and is performed by either a person or some mechanical or electronic
device. Observation is less versatile than communication since some attributes of a person
may not be readily observable, such as attitudes, awareness, knowledge, intentions, and
motivation. Observation also might take longer since observers may have to wait for
appropriate events to occur, though observation using scanner data might be quicker and
more cost effective. Observation typically is more accurate than communication.
Personal interviews have an interviewer bias that mail-in questionnaires do not have.
For example, in a personal interview the respondent's perception of the interviewer may
affect the responses.

4. Design data collection forms

Once it has been decided to obtain primary data, the mode of collection needs to be
decided. Two methods are available for data collection:
1. Observational methods
2. Survey method

Observational methods:
As the name itself suggests, the data are collected through observation. An observer
observes and records the data faithfully and accurately. This may be suitable in case
of some studies but is not useful to observe attitudes, opinions, motivations and other
intangible states of mind. Also in this method, the data collected is non-reactive, as it
does not involve the respondent. Surveys: It is one of the most common methods of
collecting data for primary marketing research. Surveys can be:

Personal: The information is sought through personal interviews. A questionnaire is prepared

and administered to the respondent during the interview. This is a detailed method of
collecting information.

Telephonic: This is suitable if limited information is sought in a fixed time frame.

Mail: Here, the questionnaire is sent out in mail and the response is sought. Timely response
cannot be sought in this method as there is no control over the survey. All the people to
whom the mail was sent may not respond.

Sometimes a combination of two or more methods may be used. Whatever be the method, a
structured questionnaire is required to be used. The questionnaire is an important tool for
gathering primary data. Poorly constructed questions can result in large errors and invalidate
the research data, so significant effort should be put into the questionnaire design. The
questionnaire should be tested thoroughly prior to conducting the survey.

5. Determine sampling design and size

A sampling plan is a very important part of the research process. The marketing
researcher has to decide whether it will be a sample survey or a census. Definitely a sample
survey has its distinct merits. The population from which the sample has to be drawn has to
be well defined. A broad choice is to be made between probability sampling and non-
probability sampling. The sample design is then chosen depending on the suitability and the
availability of the sample frame. The size of the sample chosen is based on statistical
methods. This is well defined and also reproduces the characteristics of the population. In
practice, however, this objective is never completely attained on account of the occurrence of
two types of errors – errors due to bias in the selection and sapling errors.

6. Collect the data

The next step is to collect the data for which the research process has been spelled
out. The interviewing and the supervision of field work should be looked into. One of the
most difficult tasks is interviewing for marketing research. Many a time the respondents may
not part with crucial information unless approached with tact and intelligence. Supervision of
field work is important to ensure timely and proper completion of the field survey. If this is
not carried out properly, then there results an interview error which may be detrimental to
marketing research.

7. Analyze and interpret the data

The next step is to analyze the data that has been collected from the field survey. The raw
data is transformed into the right format. First, it is edited so that errors can be corrected or
omitted. The data is then coded; this procedure converts the edited raw data into numbers or
symbols. A codebook is created to document how the data is coded. Finally, the data is
tabulated to count the number of samples falling into various categories as shown below-

Cording was given to each number-

If yes= 1
If No= 0
Simple tabulations count the occurrences of each variable independently of the other
variables. Cross tabulations, also known as contingency tables or cross tabs, treats two or
more variables simultaneously. Cross tabulation is the most commonly utilized data analysis
method in marketing research. Many studies take the analysis no further than cross
tabulation. Once the tabulation is done, the following analysis can be carried out.
Conjoint Analysis: The conjoint analysis is a powerful technique for determining consumer
preferences for product attributes.

Hypothesis Testing: 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. Once analysis is completed, make the
marketing research conclusion. In order to analyze whether research results are statistically
significant or simply by chance, a test of statistical significance can be run.

8. Prepare the research report

All the research findings have to be compiled in a report to be then presented to the
organization. The format of the marketing research report varies with the needs of the
organization. The report often contains the following sections:
Authorization letter for the research should contain-
 Table of Contents
 List of illustrations
 Executive summary/ about problem
 Research objectives
 Methodology
 Results
 Limitations
 Conclusions and recommendations
 Appendices containing copies of the questionnaires etc.
The report has to be written with objectivity, coherence, clarity in the presentation of
the ideas and use of charts and diagrams. Sometimes, the study might also throw up one or
more areas where further investigation is required.
Summary:
Marketing Research reduces the uncertainty in the decision-making process and
increase the probability and magnitude of success if conducted in a systematic, analytical,
and objective manner
The Marketing Research Process involves a number of inter-related activities which have
bearing on each other. Each and every step plays an important role in the research process.

Four standard marketing research methods (data collection methods)

 Surveys
 Interviews
 Customer observations
 Focus groups

1. Surveys
Researchers collect responses by deploying surveys and managing data via online
questionnaires or on-screen surveys at the POS.

These surveys contain closed-ended and open-ended questions. They are popular and
are the most widely used research techniques.
Why are online surveys popular?
• Surveys are inexpensive, simple to set-up, deploy, and gather responses.
• It gets easy to collect multiple answers from a tailored audience group using surveys.
• Researchers rely on quantitative data, and online surveys provide quick responses
compared to the more traditional offline methods.
• Collect large amounts of data within minutes from anywhere in the world.

2. Interviews
• Face-to-face or personal interviews are a more traditional way of doing marketing
research.
• It is a slow and more expensive way of collecting responses. Researchers doing large
scale marketing research do not prefer this method to collect a large number of
responses.
• Interviews are conducted both in-person and on the telephone (CATI).
Why are interviews important?
• Personal interviews may not be widely used but play a significant role in
understanding precisely what the respondent feels.
• You can record more than just verbal responses and understand the customer better.
Often, when two humans interact with each other, more information is shared because
of the dialogue.
• Personal interviews are useful in small-scale studies, where the researcher wants to
interview a specific group of local respondents. CATI’s are helpful when the
respondent base is more expansive.

3. Focus groups
• Focus groups or online focus groups involve several respondents who participate in
discussions about a particular topic.
• A researcher conducts focus groups to obtain richer information. The main reason for
a focus group is to hold a dialogue between various people on a particular topic of
interest.
• Unlike interviews, focus group members are allowed to interact with each other and
influence one another.
Why are focus groups impactful?
• It is no secret that focus groups are hugely impactful in decision making.
• Researchers gain a lot of information by organizing focus groups.
• Often, focus groups bring up issues not foreseen by researchers.
• Online or video focus groups have a broad reach, and many organizations have now
started creating and nurturing research communities for better respondent handling
and data gathering.
• Direct interaction of business groups and customers positively impacts users because
they feel that their voices are heard.

4. Observation
• Observation, though not popular and widely used, gives intuitive feedback. Research
companies organize customer observation sessions to gather information on how they
engage with the product or service (or a similar competitor product or service).
Feedback from people’s behavioral attitudes is a powerful tool for researchers looking
to improve their products and services.
• What makes observation so powerful?
• Observational market research is an excellent alternative to focus groups. It’s not only
an inexpensive research tool, but you will also witness people interacting with and
using your product in a natural environment. The downside is that you will have to
make inferences about their feelings and reactions.