Marketing Research

INTRODUCTION

Redefining marketing research

The board of directors of American Marketing Association (AMA) has approved the following new definition of marketing research on August 2004.

вЂ?’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. Marketing research specifies the information required to address these issues, designs the method for collecting information, manages and implements the data collection process, analyzes the results, and communicates the findings and their implications.вЂ™Ð²Ð‚™

According to Chartered Institute of Marketing, UK

вЂ?вЂ™Ð²Ð‚¦the objective gathering, recording and analysing of all facts about problems relating to the transfer and sales of goods and services from producer to consumer or user.вЂ™Ð²Ð‚™

Why marketing research is important?

The fundamental reason for conducting marketing research is the widening communications gap between an organization and its customers and the need to provide a more basis for strategic marketing decisions. Marketing research has grown prominence in recent years for the following reasons:

• Increased competition compels greater depth in knowledge of competitive activities, strengths and weaknesses.

• Changes in the macro-environment (such as technology) must be constantly monitored.

• Increasing affluence amongst consumers brings about more rapid changes in needs, wants tastes and purchasing patterns.

• Marketing costs are rising faster than production costs.

• The shift from local marketing to global marketing.

• The shift from price to non-price competition.

• Wider acceptance of the marketing concept.

When marketing is research needed?

The determination of the need for marketing research rests on four factors. These as follows:

1. Time constraints

2. Availability of data

3. Nature of the decision

4. Benefit versus cost

Scope of Marketing Research:

Market Research

Product Research

Pricing Research

Place (Distribution) Research

Promotion Research

Customer Research

Sales Research

Classification of Marketing Research:

Problem Identification Research:

Research that is conducted to help identify problems that are not necessarily apparent on the surface and yet exist or are likely to arise in the future.

Problem Solving Research:

Research which is performed to help solve specific marketing problems. The findings of problem solving research are used in making decisions that will solve specific marketing problems.

The role of Marketing Research in MIS and DSS:

Marketing Information System (MIS) is a formalised set of procedures for generating, analysing, storing, and distributing pertinent information to marketing decision to makers on and ongoing basis where Decision Support System (DSS) is computer based integrated system that helps decision makers confront problems through direct interaction with databases and analytical soft wares.

Marketing Information System VS. Decision Support System

MIS DSS

Structured problems. Unstructured problems.

Use of Reports Use of models.

Rigid Structure. User friendly interaction.

Information displaying restricted. Adaptability.

Can improve decision making by clarifying raw data. Can improve decision making by using вЂ?’What ifвЂ™Ð²Ð‚™ analysis.

Marketing Research Process:

Marketing research process consists of six stages.

Defining the problem

At this stage the marketing problem/issue on which the research is to focus should be clearly defined. These involve a cursory check on past and present sales records, making contacts and holding informal discussions with company executives and staffs, comparing published figures with company statistics, etc.

Development of an approach to the problem

This stage includes objectives of conducting research, formulating conceptual framework, analytical models, research questions, developing hypotheses, and identifying the information needed. This process is guided by discussions with management and industry experts, analysis of secondary data, qualitative research and pragmatic considerations.

Research design formulation

This stage involves the procedures necessary for obtaining the necessary information, test of hypotheses