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Marketing research has emerged, during recent decades, as an important tool of market planning
and decision making. A marketing manager can hardly hope to make sound marketing decisions
without the information supplied by marketing research. Marketing research is needed to find out
customer's acceptance of the product, its position relative to competing brands and substitute
products, effectiveness of promotional policies, sales and market share analysis, etc. Its function
as a critical information system is evident from the fact that more and more companies are now
devoting attention to organized and systematic marketing research. According to a report
published in Business Week in 1969,"Companies--even whole industries--that a few years ago
would not have dreamed of using it are turning to the market research expert for answers. It was
estimated that the investment in marketing research amounted to $ 600 million, which was three
times the amount spent five years earlier. The National Industries Conference Board reported in
the same year that American enterprises are relying more heavily on marketing research than even
before", and, "a great many are also attempting to link these efforts even more closely...to
planning and decision making."

NATURE AND SCOPE OF MARKETING RESEARCH

Definition The American Marketing Association (AMA) has defined marketing research as the
“gathering, recording and analyzing of all facts about problems relating to the transfer and sales of
goods from producer to consumer". It seems that the AMA is looking at marketing research from
the 'sales' angle and not from the angle of marketing systems' concept. It also limits the task of
marketing research to the gathering, recording and analysis of information, and thus ignores the
important tasks of interpretation of data, and reporting for decision making. Moreover, it focuses
on the collection and analysis of all the facts about a problem. Not only collection and analysis of
all facts is likely to be an extremely costly affair, it will also be so time consuming that the
decision maker may not like to wait for it. Managers generally work under terrific pressure of
time, and they can hardly sit around and wait until the marketing researcher has collected and
analyzed all the data. Finally, this concept concerns marketing research with the collection and
analysis of information about marketing problems, and ignores the tasks of problem searching,
location and definition.
Crisp's definition of marketing research is relatively more adequate. According to him, marketing
research is the systematic, objective and exhaustive search for and study of the facts relevant to
any problem in the field of marketing". He, however, ignores problem identification as one of the
functions of marketing research. Green and Tull's definition removes this lacuna. According to
them, marketing research is "the systematic and objective search for and analysis of information
relevant to the identification and solution of any problem in the field of marketing". As indicated
earlier, we consider interpretation of research data and preparation of report for decision making
also as essential elements of marketing research. Considering the above definitions and various
aspects of marketing research, it may be defined as an objective and systematic collection,
analysis, interpretation and reporting of information relevant to identification of marketing
problems and their solutions.
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Scope
Scope of marketing research has been growing during the last few decades. The National
Industries Conference Board? found in a study of 237 manufacturing and non-manufacturing
companies in 1969, that marketing research was conducted in the following areas:
(i) research on markets,
(ii) research on sales,
(iii) research on products,
(iv) research on advertising and promotion, and
(v) research on corporate growth and development.
A survey of marketing research conducted by the American Marketing Association conducted in
1973 showed that a whole new area of marketing research, viz., corporate responsibility research,
has emerged. The scope of research in other areas has also widened. It found that the companies
covered in the survey, conducted marketing research in the following areas:
1. Business Economics and Corporate Research
(a) Short-range forecasting (up to one year)
(b) Long-range forecasting (over one year)
(c) Analysis of business trends
(d) Pricing studies
(e) Product-mix studies
(f) Acquisition studies
(g) Export and international studies
(h) Company-employees studies
(i) Plant and warehousing location studies.

2. Advertising Research
(a) Motivation research
(b) Copy research
(c) Media research
(d) Advertisement effectiveness studies.

3. Product Research
(a) New-product potential and acceptance studies
(b) Competitive product studies
(c) Product testing
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(d) Packaging and branding studies.

4. Sales and Market Research

(a) Measurement of market potentials
(b) Market share analysis
(c) Determination of market characteristics
(d) Sales analysis
(e) Establishment of sales quotas, territories
(f) Distribution channel studies
(g) Sales compensation studies.

5. Corporate Responsibility Research

(a) Consumer right to know studies
(b) Ecological impact research
(c) Research on legal constraints on advertising and promotion
(d) Social values and policies studies.

The above listing of the areas of marketing research is by no means exhaustive. Many marketing
research departments conduct research, in several other areas including customer motivation and
behavior, distribution channels effectiveness, physical distribution logistics and costs, etc. The
desirable areas of research for a particular marketing research department depends on a number of
factors including the corporate goals and policies, marketing goals, strategies and policies, nature
of the product, marketing mix, nature of competition, etc. The basic criterion underlying a
marketing research project is its utility in decision making and problem solving.

TECHNIQUES AND PROCEDURES OF MARKETING RESEARCH

The marketing manager should be familiar with the techniques and procedures of marketing
research. He needs this knowledge not because he has to conduct, guide or supervise research but
because he is involved in the identification and selection of marketing-research projects. Only if
he understands the basics of research can be predict the outcome of a proposed project and
evaluate its utility. It will also help him in estimating its time and cost implications.
Marketing research techniques and process have been undergoing significant changes under the
impact of developments in behavioral sciences and operations research. It is, therefore, not
possible to do more than outline its basic fundamentals. The research procedure discussed here is
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not necessarily involved in the preparation and implementation of all research projects. It,
however, indicates the various elements involved in it."
The basic steps involved in a research project are :
(i) identification and definition of the research problem;
(ii) situation analysis and preliminary exploration;
(iii) preparation of the research design;
(iv) conducting the investigation;
(v) processing, analysis and interpretation of research data;
(vi) preparation of research report; and
(vii) follow-up.

Identification and Definition of the Problem

This is the most crucial step in marketing research, or for that matter, in any kind of research.. A
researcher cannot hope to get the right answer from his research if he has not in the first instance
correctly and fully identified and defined his research problem. What is it that he wants to find out
? Does he want to evaluate the effectiveness of advertising, competitor's competition strategy,
changes in customers tastes and preferences, demographic or disposable personal income changes
? What he eventually finds will depend on what he started to find out.
It may be emphasized here that a researcher should not confuse the problem with symptoms. What
we generally see is not the problem but its symptoms. Identification, analysis and probing of
symptoms, of course, helps in the location of the problem. For example, when we suffer from
headache, the problem is rarely, if ever, with the head. It may be with the nervous system,
circulatory system or digestive system, etc. As highlighted by Crisp, in what he calls, 'the iceberg
principle', the basic marketing problem is seldom the problem that appears on the surface. In order
to locate the problem, the researcher should always look carefully under the surface.
The objective of marketing research is not always to produce information for problem solving. It
has three other important purposes also. One is to provide information for marketing planning and
policy formulation. Research in the nature and size of the market, sales forecasting, market
conditions, etc., lies in this category. Another purpose of marketing research is to collect
information for evaluating the effectiveness of marketing planning, strategies and policies. It also
covers areas such as product, territory- and salesman-wise sales performance, advertising
effectiveness, channel efficiency and effectiveness, etc. Finally, marketing research may be aimed
at continuous market surveillance so as to tip the management about the impending problems.
This kind of marketing research focusses on its 'fire-preventive' function as compared to its 'fire-
fighting' function associated with its problem solving nature.
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Situation Analysis and Preliminary Exploration

The purpose of situation analysis is to help the researcher understand the problem in all its
dimensions, and its relationship with various aspects of marketing strategies and policies, and
market environment. The researcher taps all the available sources of information within and
outside the company. For example, depending on the nature of the problem, he may analyze and
acquaint himself with product, territory- and salesman-wise sales data, size of the market and
market share, promotion strategy, marketing mix and budgets, advertising policy, competitors'
strategy, and so forth. He may also make a study of outside published data such as trade journals,
reports of various trade associations and agencies, government policy, etc. In case the marketing
research project is being handled by a consulting firm or a professional marketing research
agency, it must familiarize itself with the company and its marketing environment. A company's
own marketing researchers are presumably well acquainted with internal and external
environmental forces, but they will also do well to analyze their knowledge in the context of the
problem at hand. They may also need to update their information.
Preliminary exploration is somewhat similar to the preceding step of situation analysis. Besides
what the researcher has done in the preceding stage it includes informal field investigation. This is
a kind of quick survey of the external environment, and a researcher may do it by talking to the
company's marketing staff as well as outsiders, particularly the salesmen, middlemen, customers,
competitors, advertising agencies, etc. The basic purpose of exploratory research is to develop
tentative hypotheses for testing through further research. A hypothesis is a statement of
relationship between two variables-one called the dependent variable and the other independent
variable. For example, a researcher may conclude after exploratory investigation that:
(i) the sales decline is due to lack of channel effectiveness;
(ii) the sales decline is due to lack of salesmen's motivation;
(iii) the sales decline is due to the superiority of competing brands.

In all these cases, the dependent variable is decline in sales which is the basic marketing problem
under investigation. The independent variables acting on the above dependent variable (sales
decline) are :
(i) channel ineffectiveness,
(ii) lack of salesmen's motivation, and
(iii) superiority of competing brands.
The hypotheses provide direction to further research efforts. For example, in this instance the
researcher has identified three causes of decline in sales, and he will concentrate his research
efforts in these directions.

A researcher should never lose sight of one possible result of exploratory research. It may suggest
that the problem needs no further investigation. For example, if the explorat oty research suggests
that sales decline is not associated with loss of market share but with the shrinking of the total size
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of the market as a result of the declining stage in the life cycle of the product, there is no need to
continue further research into this problem.

Preparation of Research Design

Marketing research is objective and systematic collection of relevant data. Research design lays
down in specific terms what is to be done and how it is to be done. It ensures optimum utilization
of time, money and manpower resources by providing a definite direction and plan of further
research. It thus, not only prevents the frittering away of scarce resources, but also ensures that the
required information is made available in time to the decision maker.
Since no two marketing research problems are alike, every project needs an unique design.
However, the following basic elements are common components of almost all research designs.
Each of these components, provides the researcher a wide element of choice in planning and
executing the project. The various components of an adequate research design are: (i) objectives
of the research project, (ii) nature of information sought, (iii) sources of information, (iv) methods
of research, (v) sampling plan, and (vi) anticipated results of investigation.

OBJECTIVES OF RESEARCH
The first step in creating the research design is to establish and set down the research objectives.
The research hypotheses are formulated after exploratory research. The research objectives are
generally set down for testing these hypotheses, or to answer the research questions. The
hypotheses or research questions should be as few as possible so as to permit adequate
investigation into them, and to permit the optimum utilisation of available time, money and other
resources. The guiding consideration in establishing the research objectives is to limit its scope to
the financial and other resources available for research, and the use to which the research results
will be put.

NATURE OF INFORMATION SOUGHT

Information sought to be collected through research depends on the research objectives. The
researcher has to decide precisely what kind of information is needed for testing the research
hypotheses, or answering the research questions. Unless the researcher clearly identifies the
precise information that he needs to achieve his objectives, he may find at the end that he has
collected quite a lot of information which is not pertinent to the project in hand, and neglected to
gather some which he needed. For example if the research objective is to find out whether sales
have declined due to ineffectiveness of distribution channels, he may seek information on
questions such as point-of-purchase displays provided by the company and used by retailers.
training and skill of retailer's salesmen, shelf space provided to the product, effectiveness of
cooperative advertising, if any, wholesaler-retailer relations, and so forth. He may also study all
these factors in relation to the competing products. To the extent a researcher can clearly identify
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the nature of information needed by him for testing his hypotheses, or answering the research
questions, his time and other resources will be more efficiently utilised.

SOURCES OF INFORMATION
After deciding what kind of information he needs, a researcher has to locate the sources from
which this information will be available. Basically, sources of information are of two types-
secondary and primary. Secondary sources of information are those sources which already have
the data needed by the researcher, and was collected earlier for some other purpose. Thus
secondary data is that data which already exists, and which may become available to the
researcher. Since the researcher does not have to collect the secondary data, all that he has to do is
to analyze and interpret it. Consequently, he has to spend much less time in collecting it as
compared to the time he has to devote in collecting the primary (original) data. The researcher
should, therefore, always try to identify, collect and use as much secondary data as available.
Much of this secondary data is often available in the company records, such as sales figures,
promotion expenditure, advertising media used, pricing policies, etc. Considerable secondary data
is available in trade newspapers and journals, publications of the Reserve Bank of India, Central
and State departments of industries, trade and commerce, population census, publications of trade
associations such as Federation of Chambers of Commerce, etc. Limitations in using the
secondary data are that: (i) it is frequently outdated; and (ii) it was collected for some other
purpose and may not be wholly relevant to the researcher's purpose. He may often have to sift a
lot of data in order to find out what he exactly wanted. Despite these limitations, the researcher
should always give priority to the searching and using of secondary data because it is inexpensive
to do so in terms of time as well as money,
Primary sources of information are those from which relevant data may be obtained by the
researcher. These sources include customers, middlemen, salesmen, trade association executives,
purchase influencers, actual users, etc. Although collection of primary data is very expensive both
in terms of time as well as money, it has some distinct advantages. It is more current as compared
to the secondary data, and therefore more useful for answering the research questions. The
researcher may also collect 'future data', and make sales projections, etc.,, based on buyers'
intentions, market conditions and trends, etc. Secondly, the researcher can tailor the search for
primary data specifically to his needs.

METHODS OF RESEARCH
Various research methods are used for collecting pr mary data. Basically three research methods
are used for this purpose : () survey method, (ii) experimental method, and (iii) observational
method.
Survey Method: Survey is the most widely used method of marketing research. It involves
asking the respondents answers to specific questions. A questionnaire is prepared for this purpose
which is either administered to respondents through personal interviews, sent by mail with a
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request to return it, duly filled in, to the researcher, or used as the basis for telephone
interviewing. The questions contained in the questionnaire are aimed at eliciting the information
needed by the interviewer.
The questions used for survey research may be structured or open-ended. A structured question is
followed by suggested possible answers, and the respondent is asked to record his answer
accordingly. Open-end questions give considerable latitude to the respondent to answer the
question in his own way. A structured question may be as follows: Do you buy Lux soap :
Yes/Nol; If yes, why do you like it. Please tick any one of the following answers You like its
fragrance. It is cheaper than other soaps. It is more conveniently available.
In the above questions, the respondent has been given restricted choice in answering them. This
can at times be frustrating to the respondent, particularly if he finds that none of the given answers
is applicable in his case. For example, one may not be sure whether he likes Luk soap or not, and
if he likes, his reason for doing so may be different from the ones given in the questionnaire. It is,
therefore, always better to frame questions in such a manner that the responses are not restricted
so rigidly. For example, in the first question, the researcher may better add 'doubtful to the given
answers. In the second question, if the researcher is not in & position to think of all the possible
reasons for liking the Lux soap, or if he thinks that the list of such factors will become too long,
he may add the following after the given answers: "Any other reason. Please state briefly---".
An example of an 'open-end' question may be as follows: “Why do you like Lux soap". The
respondent can give whatever answer he wants, and in whatever way he likes. While open-end
questions provide complete freedom to respondents, analysis and interpretation of data collected
through such questions become very difficult, complex and time consuming. On the other hand,
tabulation and analysis of data collected through structured questions can be done by the
computer.

The survey questionnaire may be used by the researcher as the basis for personal interviewing; it
may be sent to the respondent by mail with a request to return it to the researcher after completing
it, or used by the researcher as the basis of telephone interviewing.
Mail questionnaire survey is the most widely used method of survey research, particularly if the
number of respondents is large, or if they are scattered over a wide area. It has several advantages.
It is faster and cheaper. It saves the cost and time involved in travelling and interviewing. It is also
useful when it is not easy to get appointments with respondents. It makes less demand on the
respondents' time as not only personal interviewing is very time consuming, but also because they
can complete it at their own pace and at a time most convenient to them. Finally, it is possible to
maintain the respondents' anonymity when mailed questionnaires are used. Often the researcher
takes special care of this factor and requests the respondent not to disclose his and his company's
name.
The mail questionnaire method suffers from certain limitations. First, the response rate is often
poor and it is possible that the respondents who did not respond are the ones whose responses
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would have changed the survey conclusions, if they had answered it. For example, in the earlier
illustration, suppose the questionnaire on market acceptance of the Lux soap was replied by 60 per
cent of those to whom it was sent, and 90 per cent of those who responded said that they liked the
Lux soap, and that they liked it for its fragrance. Let us also suppose that 75 per cent of those who
did not reply to the questionnaire did not like Lux soap, and 80 per cent of the remaining
respondents liked it for its relatively lower price. In this case, the conclusions drawn by the
researcher on the basis of the responses received by him will be obviously wrong. A second
limitation of mail survey is that the respondent is often not clear about one or more questions, or
understands it differently than intended by the researcher. In such cases, the researcher will either
get no response, or he will get a wrong response. The questionnaire used for mail survey should,
therefore, be very carefully structured. It should be as short as possible; questions should be
worded unequivocally, and accompanied by explanations, where necessary; value-loaded and ego-
involving questions should be avoided; every question should contaia full instructions regarding
the manner in which it is to be answered.
Another method of survey research is through personal interviewing. The researcher personally
interviews the respondents, and obtains the needed information on the basis of a questionnaire.
The researcher may tape the answers, write in his own hand or record it in his office after the
interview. The advantage of this method is that it permits great flexibility to the researcher and he
can tune his questions to the personality and moods of his respondents. He can also explain the
meaning and implications of his questions, where necessary. But, as indicated earlier, it is a very
expensive and time consuming method of research. Moreover, many respondents are too busy to
devote time on such activities, or they are just not accessible to the researcher. Furthermore, many
a respondent will answer the questions only if his identity remains undisclosed,
Survey may also be made by interviewing the respondents on the telephone. While it is faster,
cheap and least time consuming, it is not very useful unless all the respondents have telephones.
Moreover, many of us do not like to talk about our opinions, feelings, etc., to a stranger who is no
more than an unknown voice over the wire.

Experimental Method: Experimental method of marketing research involves the simulation of a

real marketing situation, and testing of the stipulated solution to the problem under consideration.
An experiment is "a research design in which the selected hypothetical solution or solutions are
put into effect and the results measured. In other words, a hypothesis is actually applied or put
into action to see what its results are and whether it solves the problem".' The assumption
underlying the experimental method is that if a particular marketing strategy or policy proves
successful in the simulated situation, it will also work in the real marketing situation. It helps the
marketing executive, "by pointing up those areas in which their plans are inadequate, by providing
an opportunity for any unforeseen problems to crop up, and by providing some of the time needed
to make adjustments before the far greater risks of large scale marketing are assumed by
management".
In the experimental method, two groups are selected for research, one of which is the
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experimental group and the other is the control group. The stipulated policy or program is put into
effect in the experimental group while all the other variables are held constant or under control.
No change is introduced in the control group. After the marketing policy of program has been in
effect in the experimental group for some time, its results are measured and compared with the
situation in the controlled group. Differences, if any, between the experimental and control
groups, indicate the success or failure of the policy or program. Let us illustrate the use of
experimental method of marketing research. A firm is planning to reduce the price of its product
on certain assumptions of price elasticity of demand, and expecting that it will result in 20 per
cent iacrease in sales volume. Now the researcher selects one or test markets which are, as closely
as possible, representative of the real market situation. He also selects one control market in the
similar manner. Now price reduction is introduced in test markets, and all other marketing factors
such as advertising etc. are held constant. No change is introduced in the control market. After
some time, sales volume is measured in the test markets and the control market, and the results
evaluated to determine whether the price reduction has succeeded in the simulated situation. It is
assumed that if the price reduction is introduced later in the real market situation, it will bring the
same results as it did in the simulated situation.
The experimental method is the most realistic of all the research methods. It simulates a real
market situation which is as close to the real situation as possible. In the above example, no other
research method can predict the effectiveness of price reduction as correctly as the experimental
method. Another merit of the experimental method is that it lends itself to the application of the
techniques of operations research and mathematical models for purposes of quantitative
measurement.
A great limitation of this method is that while the researcher changes one variable (price in the
above example), he has to hold other variables such as advertising, sales promotion, distribution
channels, etc., unchanged. Probably he can do so as far as his company's marketing mix is
concerned, but how does he hold constant his competitor's price, product, advertising, etc., or his
customers' preferences? If any change occurs in any one of the host of marketing variables,
economic situation, demographic factors, customers' preferences, etc., the experimental method
will not give the correct results. Second, the researcher is also faced with the task of selecting the
experimental and the control markets which are identical in all respects. This is no easy task.
Finally, the experimental method is very expensive. It takes a long time to measure the effect of
the experimental variable. Nevertheless, the experimental method is a valuable tool of marketing
research, and provides valuable guidance to the decision maker.

Observational Method: The observational method of marketing research involves the collection
of the research data through observation of the behavior of the subjects who may be customers,
retailers, salesmen, etc. It does not involve personal interviewing, although interviews may be
used for getting additional information. For example, if a researcher wants to study the effect of
point-of-purchase display of his product in a departmental store, he will station himself
strategically so as to observe customer reaction without being conspicuous. He may observe the
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percentage of customers who noticed the display, those who stopped by it, those who picked up
the product and examined it, and those who actually purchased it. He notes down his observations.
An analysis of these observations gives a fairly good idea of customer response.
The chief merit of observational method is that it yields fairly accurate results. The researcher
draws conclusions from his own observations of the subjects' (customers passing by the display in
the above example) behavior in an actual market situation. It reduces the bias of the respondent
which creeps, in when a respondent answers questions asked by the researcher. In that case, a
respondent may not correctly interpret his own actions or feelings, or he may even deliberately
fake the answers. In this method there is no possibility of such bias as the researcher observes the
expressed behavior pattern and actions of respondents. A severe limitation of the observational
method is that it provides the observers no clue as to the reasons and feelings underlying the
customer behavior. He merely observes and listens to what goes on and has no way of knowing
why customers are acting or reacting the way they are doing. This limitation, can, however, be
overcome to some extent by supplementing the observational method with personal interviewing.
Another limitation of this method is that its success critically depends on the observational and
interpretive skills of the researcher. Not every one of us is a keen observer. Moreover, the
researcher's personality comes into play during the process of observation as well as in the
interpretation of the observed behavior. Often we see what we want to see, and also we interpret
other's behavior in the context of our own concepts, predilections, experiences and prejudices.

Sampling Plan: It is generally unnecessary in survey research to elicit relevant data from every
person who possesses the information. For example, if a marketing researcher is evaluating the
advertising effectiveness, it is unnecessary for him to ask every potential customer to tell his or
her reaction to the advertisement. To take another commonplace example, if we want to find out
the average height of students in a class, we do not measure the height of each and every student.
Instead, we measure the height of some students, find their average height, and assume that this is
also the average height of all the students in the class. In this case, all the students of the class
constitute the 'universe' or 'population and the students whose height we measured constitute the
'sample'. A sample is thus "a part of the whole population that is used to make inferences about
the characteristics of the population". 11 It is assumed that the sample possesses all the
characteristics of the population and what is true of the sample is also true of the population.
A marketing researcher, wishing to survey the sample or representative part of his population', has
to make two basic decisions: one relating to the size of the sample, and the other relating to the
method of selecting the sample.

Size of the Sample

How big should be the sample? In other words, how many persons or stores, etc. should be
selected from their population for purposes of research. It can be stated as a generalization that
larger the sample, smaller will be the sampling error. At the same time, it is also true that larger
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the sample size, larger will be the expenditure of time and money required for field investigation.
Thus, more we aim at sampling accuracy, more time and money we are going to spend. Moreover,
after a certain point, any increase in the sample size makes only marginal difference in its
accuracy: Cost of sampling, on the other hand, increases almost proportionately with every
addition to the sampling size.
Brown suggests four criteria for determining the sample size: (i) the amount of sampling error
acceptable to the researcher/decision maker, (ii) the amount of risk that he is willing to take, (iii)
the amount of money allocated for the research project, and (iv) the nature of the research.

Method of Selecting the Sample

The marketing researcher has the choice of using the probability sampling or non-probability
sampling method for selecting the sample. In probability sampling, elements of the sample are
selected randomly so that every member of the population has a known and equal chance of being
selected in the sample. For example, if the researcher wants to take a sample of 100 from a
customer population of 1000, every one of the customer has ten per cent chance of being selected
in the sample. This is also called random sample as the elements of the sample are random digits.
selected on a random basis. The researcher may use any random process including a table or
In cases where the research population is heterogeneous, the researcher may find it advisable to
select a stratified sample instead of a simple sample as above. For example, if the researcher is
making a study of buying behavior of his customers relative to his product, say, toothpaste, and
finds that his customers are men, women, students, professionals, and so forth, and that the buying
behavior of each of these groups is likely to be different from that of others he may decide to use
stratified sampling. If so, he will first have to divide his population in various groups, and then
take a random sample from each of these groups. This is a stratified sample.
The researcher may use area probability sampling if his respondents are spread over a wide
geographical area. For example, the customers of refrigerators are spread all through the length
and breadth of the country. In this case, the researcher may first select geographical areas for
research on a random basis, and then the households in the selected areas are included in the
sample.
In contrast to probability samples in which elements of the sample are selected randomly, in case
of non-probability sample, elements of the sample are selected according to deliberately
determined criterion. The researcher uses his judgment and thus introduces his bias in selecting
the sample. In a non-probability sample, every member of the population does not have a known
and equal chance of being selected in the sample as in the case of a random sample. A major
difference between these two kinds of samples is that in case of probability sample, the errors due
to sampling or the sampling error can be statistically measured, and the results of the research can
be evaluated statistically. The sampling error cannot be measured in case of a non-probability of
sample, and it is, therefore, not possible to evaluate the extent of accuracy of the research results.
A widely used kind of non-probability sample is the quota sample. The population is divided in
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several categories based on income, age group, marital status, etc., and out of the total sample
size, quota is fixed for each such group. For example, a researcher of customer behaviour in
relation to the purchase of refrigerators may decide that out of the total sample size of 180, he will
interview 10 doctors, 25 lawyers, 12 college teachers, and so forth. The members in each of these
groups may, however, be selected on a random basis. In case of quota sampling, accuracy of the
results of research depends on the judgment of the researcher. It cannot be measured statistically.

Anticipate Results of Research: A good marketing researcher, like any other researcher, should
anticipate the results of his research, and prepare a 'dummy report'. The dummy report should
include a summary of the research findings and recommendations for management action.
This exercise of anticipating the results and preparing the report is useful from several points of
view. It enables the researcher to critically examine and evaluate his entire research project. It also
suggests the kind of classification, tabulation and analysis that will be required for processing the
data. The greatest merit of the dummy report is that it enables the researcher to evaluate the
practical utility of his research for managerial decision making. He should ask himself the
question, "These are my findings and recommendations, so what? How do they help management
in policy formulation and decision making?" If the researcher is satisfied with the practical use of
his research, he is in a better position to convince his superiors also about its value, and win their
support in its financing and execution.

Conducting Investigation
After preparing the research design, the next step in marketing research is to conduct the field
investigation. If the data is to be collected through experimental method, it will require the
services of a research scientist of a high calibre. If the company does not have a qualified and
trained researcher, it may hire the services of a consultant or a professional researcher from one of
the management teaching and research institutions.
Observational method also requires trained and skilled observers who can observe not only keenly
but also objectively. It is well known that a trained observer can see many things around him
which others do not see, and also that he can observe without bringing his own personality in the
process.
As mentioned earlier, the most widely used method of marketing research is the survey method.
In case the questionnaire is to be sent by mail and received the same way, field work is not much
more than of a routine type. But if survey is to be made by personal interviewing, it is a big game
indeed. The research investigator has to be a very resourceful person in order to gain access to his
respondents. He also has to have a lot of patience and frustration tolerance as he may be turned
down by many a prospective respondents. Finally, but not the least in importance, he should be a
very skilful interviewer. He should be able to develop a rapport quickly with strangers, and also
inspire their confidence in him.
Special care should be taken in field investigation to minimize the bias. Errors or distortion in the
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collection of primary data are called non-sampling errors, and represent deviation from the true
situation. Unlike sampling errors (in case of probability sampling), it is not possible to measure
non-sampling errors. As observed by Ferbcr, Blankertz and Hollander, "non-sampling errors
include various influences that tend to distort, or bias estimates obtained by samples. Arbitrary
selection of sample members, prejudicial wording of questions, preconceived interviewer
attitudes, faulty editing, and many other factors can prejudice sample values that will not average
out to the true population values, no matter how large the sample."13
Since it is impossible to measure non-sampling errors, efforts should be made to minimize them.
This can be done by training the interviewers, and exercising adequate supervision on the field
staff. Great care should also be taken in structuring the research questionnaire. Reliability and
validity of the questionnaire should be pretested before using it for collecting the research data.

Processing and Interpretation of Data

Once the data-both secondary as well as primary-have been collected, the researcher faces the task
of reducing it in an intelligible form. It needs the application of statistical techniques of
classification, tabulation, frequency distribution, averages, etc. It helps in the conversion of
myriad of data in a meaningful form.
The processed data needs to be analyzed by the researcher. Objective and proper analysis of data
is crucial to the success of the research project as it significantly influences its interpretation and
reporting. Here also a researcher has a vast array of statistical and operations research tools
available to him. The most frequently used tools of statistical analysis are correlation, regression,
and tools associated with operations research. As cautioned by Rosenberg, "Even the most
brilliant command of mathematical tools is not sufficient. The investigator must be able to take a
huge 'jigsaw puzzle' of data and see the relationships between various pieces of information”.
The next stage in marketing research is interpretation of data based on its analysis. A researcher
needs a lot of insight, ingenuity and objectivity in interpreting data. Interpretation is almost
invariably influenced by a researcher's own background, experience, preconceived notions and
prejudices, but his success depends on his ability to be objective and honest in the performance of
this task.

Reporting the Findings

A researcher should always prepare a written report of his project. He will do well to remember
that he is not writing a scientific research report or a research paper, but a report for management's
use in decision making. The most important parts of marketing research report are: (i) findings,
(ii) conclusions, and (iii) recommendations. Of the three, the most important are recommendations
focusing in very clear and precise terms, what needs to be done to solve the given problem.
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Follow-up
The researcher's job does not end with the presentation of his project report. He should followup
to see what action is being contemplated and taken on his report. More important, he should be
available to management not only to explain and clarify, but also to help in the implementation of
his recommendations,

LIMITATIONS OF MARKETING RESEARCH

One of the greatest limitations of marketing research is that it does not solve any marketing
problems. It only aids management in decision important to emphasize because too many
marketing executives expect the researcher to tell them what they should do. The researcher's
recommendations for action are, by and large, if not wholly, marketing oriented, whereas a
marketing manager has to look to all the parts of the organization system while making decisions.
He is to make decisions in the context of corporate goals, policies, budgets, and needs of other
related functions such as manufacturing, quality control, personnel, financing, and so forth.
Another limitation of marketing research is that it takes time as well as money. Often a research
project takes several months in designing and execution, and by the time its recommendations are
available to management, they are useless. A research project should, therefore, be planned in
such a way that its recommendations are available at the time the marketing manager needs them
for decision making. This, of course, depends on management as well as researcher's ability to
anticipate problems before they actually occur. By and large, systematic marketing research is
undertaken for strategy and policy formulation, and market planning. In these cases, research
projects can be sanctioned and launched sufficiently in advance of the need.
Cost of research is also one of its limitations. Good research costs a lot of money because it
requires a highly qualified and trained research staff, and long period of time for the planning and
execution of research projects. Only large-scale enterprises can afford such expensive research. If
a company cannot afford to employ such highly qualified research personnel, it will do well to use
the services of marketing consultants and professional researchers, as and when necessary.
Another limitation of marketing research is the paucity of the trained research personnel. Research
is a highly specialized job and a researcher need to possess not only a high level of academic and
research sophistication but also considerable amount of practical horse-sense, and background as
a professional business executive. It is only then that he can produce research which is of practical
use to management. As pointed out earlier, firms who cannot find or afford to employ a trained
research staff may avail of the services of consultants, and faculty members of management
research and educational institutions.
Finally, marketing research lacks the precision of scientific research, and its results are not as
accurate as that of research in natural sciences. However, marketing research is gaining increasing
sophistication with the growing use of scientific methods, and tools and techniques of statistics
and operations research. It is also being enriched by the development of knowledge in the field of
behavioral sciences. Nevertheless, the decision maker should use the findings and
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recommendations of marketing research with judgment, discretion and common sense.

RECAPITULATION
Marketing research performs a critical information function in market planning and decision
making. More and more companies are increasingly using it as an important input in decision
making,

Nature and Scope

Marketing research is an objective and systematic collection, analysis, interpretation and reporting
of information relevant to identification and solution of marketing problems.
Marketing research is scientific and controlled gathering of marketing information for decision
making.
Marketing research is generally conducted in the following areas: (i) business economics and
corporate research, (ii) advertising research, (iii) product research, (iv) sales and market research,
and (v) corporate responsibility research.

Procedures of Marketing Research

The basic steps involved in a marketing research project are: (i) identification and definition of the
research problem; (ii) situations analysis and preliminary exploration; (iii) preparation of the
research design; (iv) field investigation; (v) preparation of research report; and (vi) follow-up.

Identification and Definition of the Problem

This is the most basic step in marketing research, as in all other kinds of research. Only if the
researcher knows what problem management is trying to solve, can he do an effective job in
planning and executing his research project.
The objectives of marketing research are: (i) to produce information for problem solving; (ii) to
provide information for market planning, and policy and strategy formulation; (iii) to collect
information for evaluating the effectiveness of marketing effort; and (iv) to perform continuous
market surveillance so as to tip management about the impending problems.

Situation Analysis and Preliminary Exploration

Situation analysis is aimed at familiarizing the researcher with the company and its environment.
This is particularly important if the research is being handled by an external agency such as a
consultancy firm.
Preliminary exploration is kind of a quick survey. It is aimed at developing hypotheses for further
investigation.
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Preparation of Research Design

It provides direction and plan for conducting research. Its components are: (i) objectives of the
research project, ii) nature of information sought, (iii) sources of information, (iv) methods of
research (survey, experimental and observational), (v) sampling plan (probability and
nonprobability sampling, simple sample, stratified sample, area sample and quota sample), and
(vi) anticipated results of research.

Conducting Investigation
Experimental method of research requires highly trained research personnel. Observational
method does not require that degree of sophistication but the researcher must be a keen and
objective observer. In case of survey research, the interviewer should be resourceful and skilled in
interpersonal relations and in the art of interviewing. Training of researchers, and their control and
supervision are required to minimize non-sampling errors.

Processing and Interpretation of Data

Several statistical tools are available for the processing and analysis of data. Interpretation needs
insight and judgment.

Reporting the Findings

Report should focus on the following: (i) findings, (ii) conclusions, and recommendations. It
should be non-technical and specifically indicate what needs to be done to solve the problem.

Follow-up
It is intended at finding out what action management is planning to take on the recommendations
and providing explanations, if needed, and helping management in implementing the
recommendations.

Limitations
Limitations of marketing research are the following: (i) it does not provide answers to problems,
or makes decisions by itself. It is an aid to decision making; (ii) it is time consuming; (iii) it is
expensive; and (iv) it is difficult to find trained research personnel.