SUBJECT: MARKETING RESEARCH

MBA 302-18
TOPIC: INTRODUCTION

Dr.Maninder Singh Gill

Associate Professor
 Marketing Research
Marketing Research is comprised of two words:

 Marketing Research
The term “Marketing” is derived from the word
“Market”. Here, Market refers to the place or
geographical area where buyers and sellers gather and
enter into transactions involving transfer of ownership of
goods and services (buy and sell the products).
Marketing is not only about selling; because in order to
sell the product we must know the needs (basic
requirements) of the customers.
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 Marketing Research
Successful marketing builds demand for
products and services, which, in turn, creates jobs.
By contributing to the bottom line, successful
marketing also allows firms to more fully engage
in socially responsible activities.
Marketers must decide what features to design into a
new product or service, what prices to set, where to
sell products or offer services, and how much to spend
on advertising, sales, the Internet, or mobile marketing.

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 Research is often described as an active, diligent, and
systematic process of inquiry aimed at discovering,
interpreting and revising facts. The word research is
derived from the French language; its literal meaning
is 'to investigate thoroughly'.
Research can be classified into two broad categories:

 Basic Research Applied Research

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 Basic research
Basic research is also called fundamental or pure
research. As the name itself refers, Basic Research is
of basic nature which is not carried out in response to a
problem. It is more educative, towards understanding
the fundamentals and aim at expanding the knowledge
base of an individual or organisation. It does not have
any commercial potential..

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 Applied research
Applied Research on the other hand is carried out to
seek alternate solutions for a problem at hand. Applied
research is done to solve specific, practical questions;
its primary aim is not to gain knowledge. It specifies
possible outcomes of each of the alternatives and its
commercial implications. For example,
Investigating if background music in a work
environment can contribute to greater productivity

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 Applied research can further be divided into:
Problem-solving research: It involves research oriented towards a
crucial problem facing the organisation which may be issue
specific.
Example: How do we improve the communication skills of our
employees?
Problem-oriented research: The research is oriented towards a
crucial problem facing the organisation. It is undertaken inside the
organisation or by an external consultant on its behalf. This
research is conceptual in nature and newer innovative techniques of
problem-solving are applied.
Example: How to improve the production yield from machine X
using modern techniques?

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 Meaning of Marketing Research
Marketing research (also called consumer research)
is a form of business research. The field of marketing
research as a statistical science was pioneered by
Arthur Nielsen with the founding of the A C Nielsen
Company in 1923.
Marketing research is a systematic and objective study
of problems pertaining to the marketing of goods and
services. It is applicable to any area of marketing.
Research is the only tool an organization has to keep in
contact with its external operating environment

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 Examples
 What are the customer needs and how are they changing?
How to meet these changing needs? What do the customers
think about existing products or services? What more are
they looking at?
 What are the competitors doing to retain customers in this
environment? Are their strategies exceeding or influencing
yours? What should you do to be more competitive?
 How are macro and micro environmental factors
influencing your organisation? How will you react t this
environment?
 Reading the results of a political opinion poll in the media?
 A report on opportunities for new markets being presented
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 Definition of Marketing Research
AMA:

“Marketing Research is the systematic and objective

identification, collection, analysis, dissemination and

use of information for the purpose of improving
decision making related to the identification and
solution of problems and opportunities in Marketing”

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 Marketing Research
The American Marketing Association (AMA) stated:
Marketing research is the function that 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.

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 Marketing Research
According to ESOMAR (originally the European
Society for Opinion and Market Research), a global
membership organisation for research firms and
practitioners explained:
Market research, which includes social and opinion
research, is the systematic gathering and interpretation
of information about individuals or organisations using
the statistical and analytical methods and techniques of
the applied sciences to gain insight or support decision
making.

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 So,
Marketing Research starts by:

stating the problem or the issue to be investigated;

indicate what kind of information is required to
resolve the problem;
identify where and how to get it; specify the
methodology for analyzing the research findings;
sum up the research findings
and then suggest the best solution for marketing
decision making.

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 NEED FOR MARKETING RESEARCH

To undertake marketing effectively

Changes in technology

Changes in consumer tastes

Market demand

Changes in economic conditions

Distribution channels

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 Scope of Marketing Research
Product Management: One of the major areas of marketing research is to
manage the current products and new products. In product management
Marketing Research is helpful in:
Competitive Intelligence – To understand the competitive product strategy.
Prelaunch strategy for new products- In depth analysis of target market
includes customer needs and wants and customer satisfaction.
Test Marketing – To monitor the performance of the brand by launching in
a select area and then taking it across the country. In other words it is a
small-scale product launch used to determine the likely acceptance of the
product when it is introduced into a wider market.
Concept testing - to test the acceptance of a concept by target consumers.
Concept testing is defined as a research method that involves asking
customers questions about your concepts and ideas for a product or
service before actually launching it.

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 Scope of Marketing Research
Sales analysis: Marketing research is used to
study the sales trend and make suitable strategies
when required. It is used to
Assess market potential
Estimation of demand for a product
Market share estimation
Study seasonal variation for a product
Market segmentation studies
Estimate size of the market
Need analysis to find out where the product fits in

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 Scope of Marketing Research
Corporate Research: Marketing Research is used
to analyse the corporate effectiveness.

Some examples are:

Assessing the image of the company

Knowledge of the company activities

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 Scope of Marketing Research
Advertising Research: Advertising is an arena in
which Marketing Research is extensively used.
Some scope are:

Readership feedbacks – Mainly carried out for

newspapers and magazines

Advertising Recall – To assess the recall of television or

other advertising and thereby assess its effectiveness.

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 Nature of MR
1. Functions of MR: Collect and analysis the data.

2.Interdisciplinary concept.

3. Important for New Product Development

4. Market Orientation: New Product Launch in Market

5.Continous Process

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 Classification of Research
A. Problem Identification Research:
1.Market Potential Research
2. Market Share Research
3.Image Research
4. Market Characteristics Research
5. Sales Analysis Research
6. Forecasting Research
7. Business Trends Research

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 Classification of Research
Problem solution Research:

1. Segmentation Research

2. Product Research

3. Pricing Research

4. Promotion Research

5. Distribution Research

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