IIPM

MARKETING RESEARCH

Project submitted to: Submitted By:

Prof. N.R.Vaid Sudhir Kumar
Roll.no.- 76
Sec – FF5
Marketing Defined And The Need For Market Research

One definition of marketing states: "Marketing is the process of planning and executing the
conception, pricing, promotion and distribution of ideas, goods and services to create exchanges
that satisfy individual (customer) and organizational objectives". The concept of marketing as a
business philosophy defines marketing as a process that is intended to find, satisfy and retain
customers while business makes a profit. But central to all these definitions is the role of the
customer and his relationship to the product (i.e. whether he considers the product or service to
meet a need or want).

Therefore, market research is imperative for a company to know what type of products or
services would be profitable to introduce in the market. Also with respect to its existing products
in the market, good market research enables a company to know if it has been able to satisfy
customer needs and whether any changes need to be made in the packaging, delivery or the
product itself. This enables a company to formulate a viable marketing plan or measure the
success of its existing plan.

Market Research Is An Essential Management Tool

Market research consists of a plan that charts how relevant data is to be collected and analyzed
so that the results are useful and relevant for making marketing decisions. Once the research and
the related analysis are complete, the results are communicated to management. This provides
management with in-depth information regarding crucial factors that have an impact on the
target market and existing marketing mix. Market research allows management to make the
changes necessary for better results through adopting a proactive approach.

When marketers conduct research to collect original data for their own needs it is called primary
research. This process has the marketer or someone working for the marketer designing and then
carrying out a research plan. As we noted earlier, primary research is often undertaken after the
researcher has gained some insight into the issue by collecting secondary data.

While not as frequently used as secondary research, primary research still represents a significant
part of overall marketing research. For many organizations, especially large consumer products
firms, spending on primary research far exceeds spending on secondary research.
The primary research market consists of marketers carrying out their own research and an
extensive group of companies offering their services to marketers. These companies include:

 Full-Service Market Research Firms – These companies develop and carryout the full
research plan for their clients.
 Partial-Service Market Research Firms – These companies offer expertise that address a
specific part of the research plan, such as developing methods to collect data (e.g., design
surveys), locating research participants or undertaking data analysis.
 Research Tools Suppliers – These firms provide tools used by researchers and include
data collection tools (e.g., online surveys), data analysis software and report presentation
products.

Primary research is collected in a research “instrument” designed to record information for later
analysis. Marketing researchers use many types of instruments from basic methods that record
participant responses to highly advanced electronic measurement where research participants are
connected to sophisticated equipment.

Data Collection Methods

Unlike secondary research, where data is initially obtained by someone other than the marketer,
the responsibility for collecting data under primary research falls to the marketer.  In general
marketers can select from two basic approaches to data collections using primary methods:

 Qualitative Data Collection

 Quantitative Data Collection

Importance of Primary Research

 Addresses Specific Research Issues – Carrying out their own research allows the
marketing organization to address issues specific to their own situation. Primary research
is designed to collect the information the marketer wants to know (Step 2) and report it in
ways that benefit the marketer. For example, while information reported with secondary
 research may not fit the marketer’s needs (e.g., different age groupings) no such problem
exists with primary research since the marketer controls the research design.

 Greater Control – Not only does primary research enable the marketer to focus on
specific issues, it also enables the marketer to have a higher level of control over how the
information is collected. In this way the marketer can decide on such issues as size of
project (e.g., how many responses), location of research (e.g., geographic area) and time
frame for completing the project.

 Efficient Spending for Information - Unlike secondary research where the marketer
may spend for information that is not needed, primary data collections’ focus on issues
specific to the researcher improves the chances that research funds will be spent
efficiently.

 Proprietary Information – Information collected by the marketer using primary

research is their own and is generally not shared with others. Thus, information can be
kept hidden from competitors and potentially offer an “information advantage” to the
company that undertook the primary research.