Market Research

Research is the process of finding a solution to a problem or a question through

the use of scientific tools and techniques.

According to the American Marketing Association, marketing research refers to

the systematic gathering , recording and analyzing of data about problems
relating to the marketing of goods and services.

Marketing Research provides information about

• Consumers and markets
• Their reactions to various products, prices, distribution and promotion
strategies.

Marketing Research Process

STEP1: FORMULATING THE PROBLEM

STEP 2: DEVELOPING OBJECTIVES OF

THE RESEARCH
STEP 3: DESGNING AN EFFECTIVE
RESEARCH PLAN
STEP 4: COLLECT THE INFORMATION
STEP 5: ANALYZE THE INFORMATION
STEP 6: PRESENT THE FINDINGS
STEP 7 : MAKE THE DECISIONS

STEP1: FORMULATING THE PROBLEM

• Identification of problems
• Problem has to be defined clearly and specifically.
• ill defines problem may result in an ineffective solution.
• Developing an understanding of the problem which requires further study
and investigation.
• The problem faced by the manager has to be properly translated into a
research problem and the reason why the research is required should also
be spelt out.

STEP 2: DEVELOPING OBJECTIVES OF THE RESEARCH

• Objective should be clear and specific.
• Objectives should cover the questions regarding the
 Purpose of the study
 How the study should be conducted
 Information needs
  Sources of information
STEP 3: DESGNING AN EFFECTIVE RESEARCH PLAN
Design of the research plan determines the tools and techniques that are
employed for conducting marketing research.
The research design is broadly classified into:
 Exploratory Research
 Descriptive Research
 Casual Research

Exploratory Research : It helps the management to identify the presence of

opportunities and threats for the company.
Problem is identified in exploratory research.

Descriptive research is generally conducted after the exploratory research. The

intensity of the problem is identified in descriptive research. It usually involve a
small number of subjects. For eg. Studying the traffic movement at a particular
junction to install traffic signals .

Casual Research : the cause and effect relationships between two variables are
analyzed.
For eg. If HUL is trying to find out whether the increase in sales of Surf
detergent powder over the previous year is due to the reduction in its price .

This step involve decisions on :

 Data sources
 Research approaches
 Research instruments
 Sampling plan

Data sources :
Data for the research can be collected from two sources :
1. Primary Data
2. Secondary Data
Primary data are data freshly gathered for a specific purpose or for a specific
research project.
It is direct or first hand data collected from respondents.
It is collected using research instruments like questionnaires , mailers ,
telephonic interviews , personal interviews etc.

Secondary data are data collected for another purpose and already exist
somewhere.
Secondary data is collected from already available sources such as published
papers , journals , magazines , reports, legal documents etc.
Research approaches :
Primary data can be collected in following ways :
 Observational research : fresh data can be collected by observing
the relevant actors and settings.
 Focus group research : A focus group is a gathering of 6-10 people
who are invited 2 spend a few hours with skilled moderator to
discuss product , service, organization or other marketing entity.
 Experimental Research : purpose is to find out the cause and
effect relationship.
 Survey Research :it is done to learn about people’s knowledge ,
beliefs, preferences and satisfaction.

Research instruments:
There are folllowing main research instrument in collecting primary data:
 Questionnaires
 Mechanical devices

Questionnaires: A Questionnaire consists of a set of questions presented to

respondents.
Questionnaires are formal set of questions prepared to collect
the required information.

Mechanical Devices : Mechanical Devices such as galvanometers measure the

responses on various parameters such as emotions etc.

Sampling plan :
 Sampling unit ( who is to be surveyed?):The marketing Research must
define the target population that will be sampled.
 Sample size ( how many people should be surveyed)
 Sampling Procedures ( how should the respondent be chosen)

STEP 4: COLLECT THE INFORMATION

Data collection phase is generally the most expensive and the most prone to
error .

In case of surveys, 4 major problem arises:

 Some respondents will not be at home
 Other respondents will refuse to cooperate
 Others will give biased or dishonest answers.
 Some interviewers will be biased or dishonest answers.

Getting the right respondents is critical.

STEP 5: ANALYZE THE INFORMATION

Next step is to extract the findings from the collected data
STEP 6: PRESENT THE FINDINGS

The researcher should present findings that are relevant to the major marketing
decisions facing management.

STEP 7 : MAKE THE DECISIONS