IJRHS 2013 Vol01 Issue 05 04

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Dr. Nilesh B. Gajjar [Subject: Commerce & Management] International Vol.

1, Issue:5, July 2013


Journal of Research in Humanities and Social Sciences (IJRHS) ISSN:2320-771X

Basic Steps for Introducing ‘Marketing Research’


DR. NILESH B. GAJJAR
M.Com. (A/c), M.Com. (Mgt.), M.Ed., M. Phil., G.Set. Ph. D.
I/c Principal,
S. V. S. Education College, (M.Ed.) P. G. Dept.,
Nagalpur, Mehsana, Gujarat (India)
[email protected]
http://www.raijmr.com
Abstract:
Research means detailed, systematic and comprehensive study of a problem. Here, the details of
the marketing problems are collected and studied, conclusions are drawn and suggestions
(recommendations) are made to solve the problems quickly, correctly and systematically. In
marketing research, marketing problem is studied in depth and solutions are suggested to solve
the problem relating to consumers, product, market competition, sales promotion and so on.

Keywords: Comprehensive study, Marketing management, Marketing research

1. Introduction to Marketing Research


MR is a special branch of marketing management. It is comparatively recent in origin. MR acts
as an investigative arm of a marketing manager. It suggests possible solutions on marketing
problems for the consideration and selection by a marketing manager.
The term marketing research is used extensively in modem marketing management. It acts as a
tool for accurate decision making as regards marketing of goods and services. It is also useful for
studying and solving different marketing problems in a systematic and rational manner.

2. Definitions of Marketing Research


According to American Marketing Association (AMA), MR is "The systematic gathering,
recording, and analyzing of data about problems relating to the marketing of goods and
services."

According to Richard D. Crisp, MR is "The systematic, objective and exhaustive search for and
study of the facts relevant to any problem in the field of marketing."
According to Philip Kotler, "Marketing research is systematic problem analysis, model building
and fact-finding for the purpose of improved decision-king and control in the marketing of goods
and services."
3. Features of Marketing Research
Systematic and continuous activity/process: MR is a continuous process. This is natural as new
marketing problems are bound to come from time-to-time in the course of marketing of goods
and services. One type of research is not adequate to resolve all marketing problems. Similarly,
new research projects will have to be undertaken to solve new marketing problems and
challenges.
18 Online International, Refereed (Reviewed) & Indexed Monthly Journal www.raijmr.com
RET Academy for International Journals of Multidisciplinary Research (RAIJMR)
Dr. Nilesh B. Gajjar [Subject: Commerce & Management] International Vol. 1, Issue:5, July 2013
Journal of Research in Humanities and Social Sciences (IJRHS) ISSN:2320-771X

 Wide and comprehensive in scope : Marketing research is wide in scope as it deals with
all aspects of marketing of goods and services. Introduction of new products,
identification of potential markets, selection of appropriate selling techniques, study of
market competition and consumer preferences, introduction of suitable advertising
strategy and sales promotion measures, are some areas covered by MR.
 Emphasizes on accurate data collection and critical analysis : In marketing research,
suitable data should be collected objectively and accurately. The data collected must be
reliable. It should be analyzed in a systematic manner. This will provide comprehensive
picture of the situation and possible solutions.
 Offers benefits to the company and consumers : Marketing research is useful to the
sponsoring company. It raises the turnover and profit of the company. It also raises the
competitive capacity and creates goodwill in the market. It enables a company to
introduce consumer-oriented marketing policies. Consumers also get agreeable goods and
more satisfaction due to marketing research activities.
 Commercial equivalent of military intelligence : MR is a type of commercial
intelligence activity. It facilitates planned activities in the field of marketing. It is similar
to military intelligence where systematic study of the situation is made before taking any
military action. Marketing research acts as the intelligence tool of management.
 Tool for managerial decisions : MR acts as a tool in the hands of management for
identifying and analyzing marketing problems and finding out solutions to them. It is an
aid to decision-making. It suggests possible solutions for the consideration and selection
by managers. Marketing research, is an aid to judgment and never a substitute for it.
 An applied research : MR is applied knowledge. It is concerned with specific marketing
problem and suggests alternative solutions and possible outcome of each alternative.
 Reduces the gap between the producers and consumers : MR is an essential
supplement of competitive marketing. It is useful for understanding the needs and
expectations of consumers. It reduces the gap between producers and consumers and
adjusts the marketing activities to suit the needs of consumers.
 Marketing research has limitations : Marketing research is not an exact science. It only
suggests possible solutions to marketing manager for consideration and selection.
 Use of different methods : MR can be conducted by using different methods. Data can
be collected through survey or by other methods. The researcher has to decide the method
which is suitable for the conduct of research project. This selection is important as the
quality of research work depends on the method used for the research purpose.

4. Steps in Marketing Research Process


4.1 Identifying and defining a marketing problem
The first step in the marketing research procedure is to identify the marketing problem which
needs to be solved quickly. The problem may be related to product, price, market competition,
sales promotion and so on. The research process will start only when the marketing problem is
identified and defined clearly. The researcher has to identify and define the marketing problem in
a clear manner.
4.2 Conducting a preliminary exploration (survey)
The marketing team may suggest many marketing problems which they face. However, it is not
possible to take up all such problems for research purpose. The researcher has to study such

19 Online International, Refereed (Reviewed) & Indexed Monthly Journal www.raijmr.com


RET Academy for International Journals of Multidisciplinary Research (RAIJMR)
Dr. Nilesh B. Gajjar [Subject: Commerce & Management] International Vol. 1, Issue:5, July 2013
Journal of Research in Humanities and Social Sciences (IJRHS) ISSN:2320-771X

problems and select one major problem which is suitable for detailed investigation. For this,
preliminary investigation is necessary. A sales manager may suggest a problem of declining
sales. The researcher has to find out the possible reasons and which one is the most important
and also suitable for detailed study. Marketing problems are not researchable and hence such
preliminary exploration is necessary and useful.
4.3 Determining research objectives
The researcher has to formulate hypothesis to fit the problem under investigation. It is a tentative
explanation of a problem under study. For example, the sales are declining. According to the
researcher, this may be due to poor quality and high price or due to limited interest taken by
middlemen or that the product has become outdated. If the first reason is accepted, the same will
be investigated in full. If the first cause is rejected, he will move to the second for detailed study
through data collection.
4.4 Determining the data required and their sources
In this stage, the researcher has to decide the type of data required for his study purpose. The
hypothesis guides the data collection process. The researcher can use primary and/or secondary
data for his research project. The sources of primary and secondary data are different. Similarly,
for the collection of primary data, any one method such as mail survey or telephone survey, or
personal interview or observation or experimentation method can be used. The researcher has to
decide the method which is convenient for data collection and collect the required data
accordingly.

4.5 Creating research design


Research design is the plan for the conduct of actual research investigation. Such design provides
guideline for the researcher to keep a track on his actions and to know that he is moving in the
right direction on data collection.
The research design contains answers to the following questions:
What is the nature and purpose of study?
What type of data is required?
How to collect required data?
What is the technique of data collection?
How much funds will be required?
How much time/period will be required for completion of research project?

4.6 Designing the Questionnaire


As per the objective of research project, information will be required. For collection of data,
suitable questionnaire will have to be prepared. All necessary care should be taken in order to
prepare ideal questionnaire, so as to collect required information easily, quickly and correctly.

4.7 Designing a sample of respondents


For data collection, a representative group will have to be selected out of the total i.e. universe. A
sample designed should be adequately representative in character. It must represent the total
population under study.

20 Online International, Refereed (Reviewed) & Indexed Monthly Journal www.raijmr.com


RET Academy for International Journals of Multidisciplinary Research (RAIJMR)
Dr. Nilesh B. Gajjar [Subject: Commerce & Management] International Vol. 1, Issue:5, July 2013
Journal of Research in Humanities and Social Sciences (IJRHS) ISSN:2320-771X

4.8 Collecting Data


Data are to be collected as per the method selected for data collection. If mail survey method is
selected, questionnaires will be sent by post to respondents. If personal interview method is
selected, interviewers will be given suitable guidance, information and training for the conduct
of personal interview. Data collection should be quick and data collected should be reliable,
adequate and complete in all respects.
4.9 Organising/Processing the data collected
The completed questionnaires are not useful directly for tabulation and drawing conclusions.
They need to be organised /processed properly for drawing conclusions. For this, scrutiny of
data, editing, coding and classification of data are required. In addition, tabulation of data
collected is also essential. Such processing make data integrated in a compact manner. In
addition, the data are made reliable and suitably arranged for analysis and interpretation.
Conclusions can be drawn only when the collected data are arranged in an orderly manner for
detailed study. In short, processing of data means verification of data collected and the orderly
arrangement of data for analysis and interpretation. The steps in data processing (editing, coding,
etc.) are interrelated and need to be completed properly. The processing of data collected is a
type of office work which can be attended by the office staff under the guidance of researcher.
The processing of data is a lengthy and time-consuming activity and needs to be completed
property. This is necessary for raising accuracy and reliability of the whole research project.
The processing of data collected through marketing research involves the following steps:
 Preliminary screening of the data collected,
 Editing of the data collected,
 Coding of the data collected,
 Classification of data into meaningful categories, and
 Tabulation of data for easy and quick analysis and interpretation.

4.10 Analyzing and interpreting data


Tabulated data can be used for detailed and critical analysis. The purpose is to establish useful
and logical relation between the information and problem. Analysis of data should be made in a
rational manner. This facilitates interpretation of data in an orderly manner. Conclusions can be
drawn after the analysis and interpretation of data. Such conclusions are useful for suggesting
remedial measures. Various statistical techniques are used for the analysis and interpretation of
data. This is necessary so that the conclusions drawn will be accurate and remedial measures
recommended will be appropriate or result-oriented. In brief, processing of data collected is one
important and critical stage in the research process. The utility of the whole research process
depends upon the manner in which the data are processed by the researchers. The services of
experts should be used for such processing of data. Similarly, advanced statistical techniques
should be used in the analysis and interpretation of data so that the conclusions drawn will be
accurate and useful for the introduction of appropriate remedial measures. Processing of data is
like examining patient by a doctor. Here, if the diagnosis is accurate, the follow-up treatment
(remedial measures) will be appropriate and the patient will be all right within a short period.
The same rule is applicable to processing of data in the marketing research activity/process.

21 Online International, Refereed (Reviewed) & Indexed Monthly Journal www.raijmr.com


RET Academy for International Journals of Multidisciplinary Research (RAIJMR)
Dr. Nilesh B. Gajjar [Subject: Commerce & Management] International Vol. 1, Issue:5, July 2013
Journal of Research in Humanities and Social Sciences (IJRHS) ISSN:2320-771X

4.11 Preparing research report


After drawing conclusions, the researcher can make concert suggestions/recommendations for
solving the marketing problem in a satisfactory manner. A researcher also prepares a document
giving details of research problem, data collected, conclusions drawn and the recommendations
made. Such document is called research report which is the final outcome of lengthy research
process. The report will be prepared in a suitable format for the convenience of readers. It acts as
a self-explanatory document.
4.12 Presenting research report
The researcher will submit the report to the decision-makers in the field of marketing. The
decision-makers will study the report minutely and find out the desirability of execution of the
recommendations made. The final decision is to be taken by the decision-makers (marketing
managers and top level management) only.
4.13 Follow-up steps
If the recommendations made are accepted, the decision-makers have to take follow-up steps for
the execution of the recommendations made. The follow-up steps should be controlled
effectively so as to have positive results in the cause of time.
The steps in the MR process (as noted above) are normally used in all MR projects. Certain
modifications are also possible in a specific research project. The research process is lengthy and
time consuming and needs to be completed in a rational and systematic manner. This gives
promising results in the sense that appropriate solution to marketing problem is available.
The researcher has to follow this lengthy MR procedure carefully. He has to take various
decisions while conducting the research work. The research project may be conducted by an
outside consultancy firm or an advertising agency. Sometimes, the research work is conducted
internally i.e. through the marketing research department or sales department. Here, the research
department takes up the major marketing problem (e.g. declining sales or profits of the company)
and organise the research project in order to find out the causes (e.g. causes for declining sales or
profit) and appropriate remedial measures. A sales manager may be asked to organise the
research project for dealing with the problem of declining sales. Here, he has to organise the
whole research project and finalize the details of different steps involved.

5. Advantages of Marketing Research


 Indicates current market trends : Marketing research keeps business unit in touch with
the latest market trends and offers guidance for facing market situation with confidence.
It facilitates production as per consumer demand and preferences.
 Pinpoints deficiencies in marketing policies : MR pinpoints the deficiencies as regards
products, pricing, promotion, etc. It gives proper guidance regarding different aspects of
marketing. They include product development, branding, packaging and advertising.
 Explains customer resistance : MR is useful for finding out customer resistance to
company's products. Suitable remedial measures are also suggested by the researcher to
deal with the situation. This makes the products agreeable to the consumers.
 Suggests sales promotion techniques : Marketing research enables a manufacturer to
introduce appropriate sales promotion techniques, select most convenient channel of

22 Online International, Refereed (Reviewed) & Indexed Monthly Journal www.raijmr.com


RET Academy for International Journals of Multidisciplinary Research (RAIJMR)
Dr. Nilesh B. Gajjar [Subject: Commerce & Management] International Vol. 1, Issue:5, July 2013
Journal of Research in Humanities and Social Sciences (IJRHS) ISSN:2320-771X

distribution, suitable pricing policy for the products and provision of discounts and
concessions to dealers. It facilitates sales promotion.
 Guidance to marketing executives : Marketing research offers information and
guidance to marketing executives while framing marketing policies. Continuous research
enables a company to face adverse marketing situation boldly. It acts as an insurance
against possible changes in market environment.
 Selection and training of sales force : Marketing research is useful for the selection and
training of staff in the sales Organisation. It suggests the incentives which should be
offered for motivation of employees concerned with marketing.
 Facilitates business expansion : Marketing research enables a business unit to grow and
expand its activities. It creates goodwill in the market and also enables a business unit to
earn high profits through consumer-oriented marketing policies and programmes.
 Facilitates appraisal of marketing policies : Research activities enable marketing
executives to have an appraisal of the present marketing policies in the fight of research
findings. Suitable adjustments in the policies are also possible as per the suggestions
made.
 Suggests marketing opportunities : Marketing research suggests new marketing
opportunities and the manner in which they can be exploited fully. It identifies existing
and emerging market opportunities.
 Facilitates inventory study : Marketing research is useful for the evaluation of
company's inventory policies and also for the introduction of more efficient ways of
managing inventories including finished goods and raw materials.
 Provides marketing information : MR provides information on various aspects of
marketing. It suggests relative strengths and weaknesses of the company. On the basis of
such information, marketing executives find it easy to frame policies for the future
period. MR provides information, guidance and alternative solutions to marketing
problems.
 Suggests distribution channels : Marketing research can be used to study the
effectiveness of existing channels of distribution and the need of making suitable changes
in the distribution system.
 Creates progressive outlook : Marketing research generates a progressive and dynamic
outlook throughout the business Organisation. It promotes systematic thinking and a
sense of professionalization within the company. It also creates enthusiasm among
executives concerned with marketing. This brings success and stability to the whole
business unit.
 Social significance : Marketing research is of paramount importance from the social
angle. It acts as a means by which the ultimate consumer literally becomes king of the
market place.
6. Limitations of Marketing Research
 Offers suggestions and not decisions : Marketing research is not a substitute for
decision-making process. Ready-made decisions on marketing problems are not provided
by the researcher. Marketing research does not solve any marketing problems directly. It
only aids management in decision-making and problem solving process.
 Fails to predict accurately : In marketing research, efforts are made to predict the
possible future situation. For this, certain research studies are undertaken. However, the
23 Online International, Refereed (Reviewed) & Indexed Monthly Journal www.raijmr.com
RET Academy for International Journals of Multidisciplinary Research (RAIJMR)
Dr. Nilesh B. Gajjar [Subject: Commerce & Management] International Vol. 1, Issue:5, July 2013
Journal of Research in Humanities and Social Sciences (IJRHS) ISSN:2320-771X

predictions arrived at may not be perfect. Future is always uncertain and exact prediction
about the future is just not possible through marketing research.
 Cannot study all marketing problems : Marketing research cannot study all marketing
problems particularly where it is difficult to collect relevant data. Similarly, research
study is not possible where value judgments are involved. Thus, all marketing problems
are not researchable and all research problems are not answerable. MR is not a 'panacea'.
 Resistance to research by marketing executives : Researchers study marketing
problems and offer guidance to marketing executives in their decision-making process.
However, some executives are reluctant to use the solutions suggested by the researchers.
They feel that such use will act as a threat to their personal status. Marketing executives
also feel that researchers give solutions which are academic in character and lack
practical utility.
 Time-consuming activity : MR is a time-consuming activity. The research work takes
longer period for completion and the findings when available may prove to be outdated.
Even data collected very soon become old due to fast changing market environment.
 Costly/expensive activity : MR activity is costly as research work requires the services
of experts. Advanced training in economics, computer technology, sociology, etc. is also
necessary on the part of research staff. Even giving responsibility of research work to an
advertising agency or to a management consultant is costly.
 Dearth of qualified staff : For scientific MR, professional marketing researchers with
proper qualifications, experience and maturity are required. Research work is likely to be
incomplete /unreliable in the absence of such expert staff.
 Complexity of the subject : MR fails to give complete and correct guidance to the
management on marketing issues. This is because MR is not an exact science. It is
concerned with the study of human behavior which is always difficult to predict. As a
result, the conclusions drawn and recommendations made are not cent per cent correct.
 Uncertainty of conclusions : Consumer is the focal point in marketing research.
However, consumer's buying motives are difficult to judge precisely and accurately. This
brings some sort of uncertainty in the conclusions drawn from the MR.
 Limitations of data used : MR process solely depends on the data collected and used for
analyzing the marketing problem, for drawing conclusions and making recommendations.
However, the whole process will come in danger if data collected are inadequate and
unreliable.
 Limited practical utility : MR is mainly an academic exercise. Researchers take more
interest in research work rather than in supplying information and guidance to marketing
managers in decision-making process. Many research reports are rather bulky and
unintelligible. This brings down the practical utility of marketing research.

7. Importance of Marketing Research


Marketing research is fast growing in its importance due to increasing competition, fast moving
technological developments and changing consumer needs, expectations and attitudes. The
importance of marketing research is universally accepted. The status of marketing research in
business management is identical to the position of brain in a human body.
The following points suggest the importance of marketing research.

24 Online International, Refereed (Reviewed) & Indexed Monthly Journal www.raijmr.com


RET Academy for International Journals of Multidisciplinary Research (RAIJMR)
Dr. Nilesh B. Gajjar [Subject: Commerce & Management] International Vol. 1, Issue:5, July 2013
Journal of Research in Humanities and Social Sciences (IJRHS) ISSN:2320-771X

 Planning and execution of marketing plan : A business unit can plan and execute all
activities right from manufacturing to marketing with reasonable accuracy and
confidence due to the guidelines available through marketing research.
 Quick and correct decision-making : MR facilitates quick and correct decision-making
by marketing managers. It enables management to take quick and correct marketing
decisions.
 Effective solutions on marketing problems : MR provides effective solutions to
marketing problems. MR is the radiology and pathology of marketing operations of
business. It diagnoses the business ailments and suggests measures to remove them.
Marketing researcher acts like business doctor and prescribes treatment for business
elements.
 Huge spending on MR : Large companies spend crores (1 Crore = 10 million) of rupees
on marketing research activities. New techniques and methods are used in the conduct of
research activities in an accurate manner. This suggests the growing importance of MR.

References
1. Berghoff, Hartmut., Philip, Scranton., and Uwe, Spiekermann, eds.,(2012). The Rise of
Marketing and Market Research (New York: Palgrave Macmillan,), ISBN 978-0-230-
34106-7
2. Bradley, (2007).Nigel Marketing Research. Tools and Techniques. Oxford University Press,
Oxford, ISBN 0-19-928196-3 ISBN 978-0-19-928196-1
3. Kotler, Philip and Armstrong, (2007). Gary Principles of Marketing Pearson, Prentice Hall,
New Jersey, 2007 ISBN 978-0-13-239002-6, ISBN 0-13-239002-7
4. Marder, Eric (1997). The Laws of Choice-Predicting Customer Behavior (The Free Press
division of Simon and Schuster, 1997. ISBN 0-684-83545-2
5. Young, Charles E. (2005). The Advertising Handbook, Ideas in Flight, Seattle, WA, April
2005. ISBN 0-9765574-0-1

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