Marketing Research Process Procedure

 Q. Explain the procedure of conducting marketing research. 

Ans. Marketing research process consists a sequence of several steps, these steps are closely interlinked and interdependent. They are so logical that success of one depends on the prior step. Marketing research process is carried out with a series of steps which are required to be taken in a chronological order. Some commonly followed major steps involved in a marketing research project are as follows:

1. Formulation of Research Problem: The first step in any marketing research project is formulating a research problem. It is the most important stage in applied research because poorly defined problem will not give useful results. It is rightly said that, “a problem well defined is half-solved.” Poorly formulated problems create confusion and do not allow the researcher to develop a good research design. Therefore, the researcher should take into account the purpose of the study, the relevant background information, the information needed and how it will be used in decision making. 

Formulation of research problem involves discussion with the decision makers, interview with industry experts and analysis of secondary data. Formulation of research problem involves three sub-steps:

i) Discovering the managerial problem: Discovering the managerial problem is not a easy job, because these are covert (meaning hidden) and subtle (meaning complex, difficult). The dynamic and competitive world of business creates many problems for the firm. One should be alert in discovering the managerial problem well in advance of its occurrence.

ii) Defining the problem: It is really difficult to define managerial problem as it is more systematic than cause-oriented. The researcher is to go to the very roots of the problem to establish cause and effect relations. For example, the problem of falling sales may be because of wrong pricing, wrong packaging, wrong distribution system or cut throat competition. The researcher is to see the real cause of falling sales.

iii) Translating of managerial problem into a research problem: A research problem is one in respect of which the data is collected and analysed to find a solution. All management problems are not research problems. Therefore, to translate managerial problem into a research problem, the cause and effect relation must be established. Translation of managerial problem into a research problem involves the in-depth study of company’s strengths and weaknesses in respect of production, marketing, finance and study of marketing environment under which the company is working. 

Thus, it is clear that to investigate the reasons for falling sales researcher can investigate all aspects affecting sales or he may investigate the problem on the basis of product policies or pricing policies or distribution policies or other marketing policies of the company. But it is sure that before assigning research project to the researcher, the problem in hand must be well defined, because a well defined problem leads to a better solution.

2. Situation Analysis: Situation analysis is important to obtain background information on the problem. Situation analysis means the circumstances under which the research is being conducted. Situation analysis generally consists of following information:

(i) Products of the company

(ii) Company itself its competitors and the industry in general

(iii) Its markets

(iv) Its channels of distribution 

(v) Its sales organisation 

(vi) Its advertising and sales policies

This analysis enables the researcher to arrive at a hypothesis or a tentative presumption on the basis of which further investigation may be done. Hypothesis are tentative statements describing relationship between concepts or possible cause and effect relationships. 

Formulation of research problem helps to specify and precise the scope of marketing problem. It makes research both economical and meaningful.

3. Developing Research Design: Research design is the heart of marketing research. Once the research problem is defined, the next step is to determine research design. A research design specifies the methods and procedures for conducting a marketing research. A research design is the master plan for the conduct of marketing research. Research design keeps the study right on the track making it to keep pace with the problem requirements and makes possible best result with minimum resources and possible procedures. Research design specifies the methods for data collection and data analysis i.e, 

(i) How would tĥe data be collected?

(ii) Which instruments for data collection would be used?

(iii) What sampling method would be used?

The choice of research design will depend essentially on the nature of the problem on which the research is to be undertaken. Another factor is the scope of the research project. Research having wider scope has different research design from a research having limited scope. 

Research designs are classified by the purpose of research and data collection efforts. These are: 

(i) Exploratory Research Design: An exploratory research design focuses on the discovery of ideas and is generally based on secondary data. This design aims at defining the research problem and identifying the possible alternative solutions. Information for exploratory research are gathered from the internal sources, interviews with knowledgeable persons and from secondary sources. 

(ii) Descriptive Research Design: It is most commonly used research design. A descriptive study is undertaken when the researcher wants to know the characteristics of certain group on the basis of age, education, income, occupation, etc. The purpose of descriptive research design is:

1. to describe the phenomena,

2. to describe the consequences of possible alternative course of actions,

3. to describe the potential market in terms of present and future attitude of the customers and 

4. to describe the product image.

(iii) Causal Research Design: A causal research design is undertaken when the researcher wants to know the cause and effect relationship between two or more variables. 

Formulation of research design involves the following steps: 

1. Determining the objectives of the research project.

2. Determining the scope of the research project.

3. Determining the methods for collection of data.

4. Designing the questionnaire.

5. Deciding sampling process and sample size.

6. Decision regarding analysis and interpretation of data.

7. Determining the time required for research work.

8. Determining the budget of completion of research project.

9. Designing the personnel and administrative set-up.

10. Preparing the research proposal and getting it approved. 

4. Collection of Marketing Data: Once the research design is finalised, the next step before the researcher is to go for data collection. A comprehensive research study requires both primary and secondary data. 

(i) Primary Data: Primary data is one which is originally collected by the researcher specifically for the project in hand through questionnaire and interviews. Collection of primary data is time and money consuming affair. It is an unpublished but latest and relevant to the problem and most accurate. It may be collected by survey, observation or experimentation method. Primary data sources includes: Company’s salesman, consumers, middlemen, executives, suppliers, competitors and trade associations. 

(ii) Secondary Data: Data originally collected by someone else for other purpose but can be used for research project in hand is known as secondary data. Such data or information may not be latest but accurate and reliable. It costs less in terms of time and money. The sources of secondary data are: Internal company records, Government Publications, Government Reports, Publication of Research Organisations, Publications of Trade Associations and Chamber of Commerce, Reports and Journals etc. 

The researcher has to decide whether he has to collect primary data or depend on secondary data. Sometime the researcher study is based on both primary data as well as secondary data. When a study is based on secondary data, it is necessary to satisfy oneself that the available data are matched with the objectives of research project. One should be familiar with the authentic sources of such data, their periodicity, the concept used in compilation and their limitations, if any. The researcher should look to the secondary data first, if needed information are already available, the time and expense of gathering it from primary sources can be saved. 

If the decision in favour of primary data is taken, then one has to decide the method of data collection. Following three methods are available for collecting primary data. 

I. OBSERVATION METHOD: Suggests that data are collected through one’s observation. This method is non-reactive as data are collected without the direct participation of the respondent. In observation method, actions of the respondents are observed either directly mixing with them or indirectly without getting mixed up with them. 

II. EXPERIMENTATION METHOD: The experimentation method emphasis on the creation of controlled environment where some variables are allowed to vary and cause-and-effect relationship is studied. 

III. SURVEY METHOD: In marketing research, field surveys are commonly used to collect primary data. With the use of survey method, we are able to collect wide range of valuable information, which may not be possible in observation and experimentation methods. Surveys can be (i) personal, (ii) telephonic and (iii) by mail. Personal interviews are suitable when detailed information are to be collected. Telephonic survey is suitable when limited information is sought in a short period of time. Mail survey is used when respondents are scattered over a large geographical area and detailed information are required. Sometimes a combination of two or more methods could also be used. 

5. Determining Sampling Design and Sample Size: When the marketing researcher has decided to carry out a field survey, he has to decide whether it is to be census survey or sample survey. In census survey, all members of the relevant universe are contacted. In research surveys, it is not possible to contact the entire population because of cost, time and energy involved in it. Therefore, researcher has to establish a ‘sample’ or the representative group from whom the information may be collected. It is called as sample survey. 

In determining the sampling design, the researcher must specify:

(i) Sampling frame

(ii) Sample selection process 

(iii) Size of the sample

(i) Sampling frame: Sampling frame is the list of population elements from which sample will be drawn. 

(ii) Sample selection process: The sample selection process requires that the form of the sample must be specified. Will it be probability sample in which each population element has a known chance of being selected, or will it be a non-probability sample? The type of sample design chosen will depend on its suitability and the availability of the requisite sampling frame.

(iii) Sample size: Sample size means how many units to be surveyed? The researcher has to select a relevant fraction of the population which is the representative of the entire population or universe. In any case, the sample size must not be increased more than 10 per cent of the universe. 

6. Field Work and Data Collection: Field work is the most expensive of all the steps in a research project. Interviewing and supervision are two important aspects of field survey. The task of interviewing seems to be simple, but in reality, it is one of the most difficult task in marketing research. Because respondents are generally hesitant in giving information. If the researcher is carefully selected or trained, he may use his tactics and intelligence to persuade the respondents to answer the questions.

Supervision of field staff is equally important to ensure timely and proper completion of the field survey. Proper selection, training, supervision and evaluation of field force help to minimise data-collection errors. 

7. Analysis and Interpretation of Data: Once the field survey is over and filled questionnaires have been received, the next step is to aggregate the data in a meaningful manner. The data are first edited, coded and tabulated for the purpose of analysing them. 

Editing refers to the process by which collected data are reviewed to check that they are complete, consistent and that the instructions were followed. Editing facilitates tabulation.

Once the questionnaire forms have been edited they must be coded. Coding involves assigning numbers or letters codes to the observations, so that can be properly analysed.

Tabulation implies data arrangements as to classes and weightages. If the questionnaire has been well planned, tabulation work is very much facilitated. From the tabulated summaries, conclusions may be drawn. The editing, coding and tabulation functions are common to most research studies. The researcher should have a well thought out framework for processing and analysing the data and this should be done prior to the collection of data. The editing, coding and tabulation is must when the researcher has huge amount of data concerning the research project in hand.

It is necessary that the researcher gives as much importance to the analysis and interpretation if data as he has given to their collection. In the absence of proper analysis, data may be rendered useless resulting in a waste of time and money. The analysis of data can be conducted by using simple statistical tools like percentages, averages and measures of dispersion. The collected data may be analysed by using diagrams, graphs, charts, pictures, etc. Data may be cross-tabulated to produce useful relationships among the variables involved. 

Interpretation of data includes conclusion, summary and recommendations of research based on the statistical analysis. Thus, interpretation is a minute and meticulous work involving the use of mental facilities of sound judgement and clear vision to reach a cut-off point. 

8. Report Preparation and Presentation: Once the data have been tabulated, analysed and interpreted, the marketing researcher is to present his findings to the users in the form of research report. The report should be written in clear language, properly paragraphed and should be able not only to hold the interest of the reader but also convince him by presenting it with necessary evidences. 

While preparing a research report, the researcher should follow the principles of objectivity, coherence, clarity in the presentation of ideas and use of charts and diagrams. The essence of good research report is that it effectively communicates its research findings in simple and lucid manner. Latest visuals and colour combinations such as charts, graphs, diagrams, photographs are to be used. The findings and recommendations must be clear, precise and feasible. The report should be in written form and must be technically accurate as well as it should be understandable and useful. 

The research report must contain the following sequence:

1. Title page with name of organisation from whom it has been conducted

2. Table of contents, alongwith charts and diagrams used in the report

3. Preface

4. Statement of objectives and hypothesis with statement of marketing problem.

5. Research methodology containing (a) Research design, (b) Assumptions, (c) Data collection methods and instruments used, (d) Sampling plan, (e) Field survey, (f) Scheme of analysis and interpretation of data, (g) Scope and (h) Limitations 

6. Analysis of collected data

7. Interpretation of data 

8. Findings of the research study

9. Conclusions arrived at and recommendations suggested

10. Appendices: contain - (a) Copy of questionnaire used, (b) Glossary of terms, (c) Tables, (d) Maps, (e) Charts, (f) Photographs, (g) Bibliography 

9. Follow-up of Recommendations: .In the last, the researcher should follow up his study and see that his recommendations must be implemented. The researcher gets satisfaction and the user rich returns for his investments made in research only when the research findings are implemented in the form of objectives, policies, strategies, procedures and methods. 

Each step described above is more complex when actually performed. Because each involve number of issues to be decided. Marketing research attempt to achieve the scientific way in their research projects ɓy using a series of steps referred to collectively as the marketing research process.

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