Scope of Modern Marketing Research

 Q. Discuss in detail the scope of modern marketing research.

Ans. Marketing research is more comprehensive, it covers all marketing functions relating to product, price, promotion and distribution. Marketing policies, programmes and strategies are guided by it. There is hardly any area in marketing where research is not possible or needed. The area of marketing research can be classified as: 

I. Problem Identification Research: It helps to identify problems that are exist or are likely to arise in the future. This type of research provides information about the marketing environment and helps to diagnose a problem. Problem identification research covers the following areas:

(i) Market Share Research

(ii) Market Potential Research

(iii) Market Features Research

(iv) Market Image Research

(v) Sales Analysis Research

(vi) Business Trend Research

II. Problem Solving Research: Once a problem is identified, problem solving research is undertaken to arrive at some solution. The findings of problem solving research are used in making decisions that will solve specific marketing problems. Problem solving research covers the following areas:

(i) Product Research

(ii) Pricing Research

(iii) Promotion Research

(iv) Segmentation Research

(v) Distribution Research

Marketing Research can be applied in almost every aspect of marketing. A wide range of marketing activities are covered by the marketing research. The scope of marketing research is very wider but it may be summarised in following manner: 

1. CONSUMER RESEARCH: Consumer Research is concerned with the studies of consumer behaviour. It probes into different factors such as economic, sociological and psychological that influence the consumers in their decision to buy the product. Generally, consumer research is in the form of attitude studies which offer clues in distinguishing the appeals of competitive brands to certain type of customers.

Consumer research can also provide consumer suggestions when they feel certain deficiency or when they would like to have some improvement in the product or service.

Consumer research may be undertaken not only at macro level but also at different segment level. Consumer research generally covers the following areas:

(i) To know the demographic features of both present and potential consumers.

(ii) To identify the needs and expectation level of consumers regarding product or service.

(iii) To know the buying motives and buying habits of the consumers.

(iv) To determine the level of consumer satisfaction.

2. MARKET RESEARCH: Market research is the study of markets with regard to certain products of a company. The market research involves analysis of market potential for existing products and estimating demand for new products, sales forecasting, characteristics of product markets, analysis of sales potentials and studies of market trends. 

Market Research develops market and sales potentials and sales quotas by determining how much of a commodity in a given market is expected to be sold. It helps in determining the sales territories of salesmen, distributors and dealers.

Market Research involves investigation of various elements of consumer demand, such as total demand, relative demand and replacement demand. Market research provides answer to the question, 'who may buy and who is buying the product. 

Market Research collect the information on following aspects:

(i) Forecasting of sales and demand

(i) Nature and extent of competitive forces

() Geographical location of markets.

(iv) Strength's and weaknesses of the firm and the competitors

(v) Assessment of government policies on the marketing efforts of the firm.

3. PRODUCT RESEARCH: Product Research refers to the efforts made to have knowledge about new and existing product, to meet the specific requirements of consumers regarding quality, design, shape, size, style, durability, purity, packaging, branding, etc. It aims at finding out new product or combination of products. On the basis of product and packaging research, a business firm can develop suitable market segment strategies. It may also emphasized that the product research is concerned with every stage of product life cycle viz. introduction, growth, maturity and decline. 

The major area of product research are: 

(i) Evaluating the product performance of the firm in terms of turnover, profits, market segments and competition.

(ii) Market testing for new products of the firm.

(iii) Research on consumer acceptance of firm’s products and services as compared to similar products of competitors.

(iv) Research on development of new products.

(v) Evaluation of new competitive products.

(vi) Appraisal of product diversification and simplification plans.

(vii) Determining product modifications on the basis of their quality, design, varieties, colours and appearance, etc.

(viii) Research on causes and extent of consumer dissatisfaction with firm’s products when sales are rapidly declining.

4. SALES RESEARCH: Sales Research covers the problems relating to the sales of products of the firm. It examine various sales outlets or sales territories to find out sales potentials to improve the existing level. Such a research can be product wise in addition to the overall performance. Sales research helps in determining the effectiveness of the sales force and identifying specific factors that may improve its performance. Sales research can be used:

(i) For measuring sales performance in terms of volume and profits.

(ii) For determining and revising sales territories and sales quotas.

(iii) For assessing firm’s position in the market in relation to its main competitors.

(iv) For analysing and appraising the sales methods and sales force performance.

(v) For finding out ways and efforts by which sales opportunities can be exploited successfully.

5. PRICING RESEARCH: Pricing Research examine all the questions relating to the consumer’s ability to pay for the products and services. It examine the policies relating to prices, discounts and allowances.

The areas of pricing research are:

(i) Testing of alternative price strategies.

(ii) Studying the price policies and strategies of the competitors.

(iii) Determining the suitable price policy for a product.

(iv) Determining price expectation of the consumers in different market areas or segments.

(v) Measuring the consumers reactions and responses to firm’s product prices.

6. PROMOTION RESEARCH: Promotion Researches are conducted to know past trends, present performance and future plans in connection with the promotional policies of the company and its competitors. The research on promotional policies includes advertising research, analysing advertising and selling practices, selection of advertising media, designing advertising copy and testing advertising message, determining sales territories, evaluating present and proposed sales methods, evaluating promotional tools viz., premiums, price-offs, contests, trade shows, exhibitions, etc. 

Promotion research is getting more importance because huge amount is spent by al fe companies on advertising, publicity, personal selling and sales promotion activities. Following are the important areas of promotional research:

(i) Measuring effectiveness of alternative advertising copies designed.

(ii) Media research ie., studying alternative media television, radio, newspapers and magazines, etc.

(iii) Evaluating and selecting the media mix.

(iv) Determining the advertising messages and appeals in the light of research findings.

(v) Identifying the consumer motives, attitudes and emotions to find out the ways and means of motivating the people to increase the sales.

7. DISTRIBUTION RESEARCH: Distribution Research has two major areas namely, channel research and physical distribution research. Channel research is concerned with the problems of middlemen and their solution. Physical distribution research is concerned with the problems of and solutions to storing. transporting and handling of products. Distribution research is concerned with designing of distribution channels, handling and packaging of merchandise, location of warehouses, transportation, inventory control, material handling, etc.

The areas of distribution research are:

(i) Studying the existing and potential channels with evaluation of channel performance.

(ii) Determining optimum inventory levels and storage facilities.

(iii) Making cost analysis of various elements of distribution mix like, warehousing, transporting, inventory control and material handling, etc.

(iv) Determining dealers needs and behavioural factors.

8. POLICY RESEARCH: Policy Research is concerned with the study of the policies in all the areas of an organisation and their post-operative effects on marketing. Marketing as a specialised activity is going to be a grand success if other specialised activities contribute to it. The areas of policy research are:

(i) Studying the existing policies and strategies in production, finance, personnel, etc.

(ii) Determining the best policies to better the results with reduced efforts and investments.

(iii) Studying the marketing policies adopted by the competitors.

(iv) Evaluating the impact of change in firm’s policies on marketing efforts.

9. CORPORATE RESEARCH: Corporate Research is gaining importance because of increasing consumer awareness. Corporate research is conducted on anti-pollution devices, consumerism, attitude of consumers towards package designs and promotional strategies, etc. A company might be interested to see whether the consumers are unintentionally harmed by the company by adding to the pollution of environment, adding to the social costs, excessive expenditure on packaging and promotion, not allowing consumers to know about the product quality and manufacturing, etc. Corporate research covers the following areas:

(i) Studying the awareness among consumers regarding product quality and manufacturing methods.

(ii) Evaluating attitudes of consumers to package designs and promotional strategies, company’s addition to social costs, etc.

(iii) Studying the impact of business on the environment and cost of using anti-pollution devices.

10. MOTIVATION RESEARCH: Motivation Research is qualitative research, that answers, why do people buy or do not buy a particular product. It also studies impact of motives, attitudes and ability to pay on consumer purchase decisions. The areas of motivation research are:

(i) Knowing the consumer reactions in terms of consumer expectations and aspirations.

(ii) Finding out the ways and means which motivate the consumers to buy company’s products or services.

(iii) Identifying the consumer motives, attitudes, emotions and other hidden reasons which influence the buying decisions.

(iv) Knowing the consumer likes and dislikes about the product or service.

From the above description it is clear that the scope of marketing research is very wide. It spans over the marketing activities in the areas of consumer, product, market, sales, pricing, promotion, distribution, business policies, advertising, motivation, etc. In addition to the above broad areas, there are many other areas of marketing research which are also equally important. However, The actual scope of marketing research is determined by the specific needs of the firm.

 Scope of Modern marketing Research