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– Marketing management by Kottler



What is market research ??

– Marketing Research process way through which marketer

evaluate the market, analyze the opportunities and threats, and
try to show a best possible solution for addressing this situation.
Actually, marketing research is conducted in order to get
information about certain factors like customers, competitors or
any other factor related to the external environment.
– All of such information collected is then utilized in the decision
making process in the organization.
– Marketing research can be utilized to achieve the
following outcomes.
– To measure the potential of the market.
– Sales analysis.
– Market share analysis.
– Identification of the characteristics of the market.
– Analysis of business trends.
– Analysis of the products of competitors etc
Process of Marketing

Specification of the Interpretation and

Preparation of
problem and Implementation reporting of
research plan
research objectives conclusions
STEP 1 Specification of Problem &
Research Objectives
– This is the first step in the marketing research process in which marketing
manager and the researcher work together to define the main problem or
purpose of the research.
– It is done carefully because if any mistake has made in this step, then that
mistake would lead the whole research process into the wrong direction.
– After the specification of the main problem, the research objectives are also
set by the marketing manager together with the researcher.
The research objectives may take
the following three forms.
Exploratory Research
– It is helpful in to obtain the preliminary information that supports to clear
specification of the problem and suggesting of the hypothesis for solution.

Descriptive Research
– This type of research is fruitful in such cases where the things need to be described like,
demographics and consumer behavior or market potential of a certain product or service etc.

Casual Research
– It is done in order to testify the cause-effect relationship of a hypothesis.
– The specification of the problem and the research objectives should be kept in written
form so that every member of the research team understands the direction of the
research efforts.
STEP 2 Preparation of the Research Plan

In this step of marketing research the main work is to obtain the

necessary information (secondary data) and its effective presentation
to the management.
It involves a number of steps like contact methods, research
approaches, sampling plans along with instruments etc. Moreover, the
company should know what kind of information is already available
and what kind is to be further required.
Following activities are included in
this step.
– Planning about the Collection of Primary Data
– It includes the following steps
1) Research Approaches:
– Research approaches have a further more three types, which are as below.
a) Observational Research:
– In this research approach, the relevant actions, peoples and situations are observed to gain
information. However the attitudes and private behavior are not observed completely. This is used in
such cases where people are unable and unwilling to provide the required information.
b) Survey Research:
– In this type, people are asking different questions about their attitudes, knowledge, buying behavior to
get required information. Descriptive information is effectively collected through this research
approach. It is most widely used approach that has much flexibility, but it has a limitation in case when
the respondent gives wrong answers or has no time to give answers.
c) Experimental Research:
– In experimental research different subjects are grouped together, and
passed through different conditions having certain factors as controlled
so that the different responses of these groups can be checked to get
required information. Mostly the cause- effect relationships are
explained in this research process. Surveys and observations may
employed to get the causal information of the research.
2) Contact Methods:
– Contact methods may be of the following types
– 01– Mail Questionnaires are employed to get enormous information at low cost.
– 02– Telephone Interviewing is the quickest method for obtaining information.
– 03– Personal interviewing can be either individual or group interviewing.
– 04– Computer Interviewing is latest form through the use of computers in which
consumers answer according to the questions shown on their computer screens.
– Besides contact method, proper sampling is also made in the marketing research
process, because it very difficult to cover the whole population in the research
process. In this whole there are two types of research instrument used, which are as
– Questionnaires
– Mechanical Devices
STEP3- Implementation
– This is the action stage of the marketing research in which the prepared plan is
properly implemented to get the required results. In this step, the data or
information is collected, processed and analyzed by either the company own staff of
marketing research or by the outside team. If the company uses its own staff, then it
has more control over the whole process. But there are certain specialized firms that
can perform this job more effectively.
– The information collection phase is more expensive and sensitive in the
implementation phase of the prepared plan. In order to avoid the errors and
mistakes of the respondents, the researcher should monitor the field properly.
STEP4- Interpretations and
Reporting of Conclusions
– This the last step of the Marketing Research Process in which the final
conclusions are presented to the management.
– In this step the researcher should avoid certain mistakes in the
presentation. This means that the researcher should not provide the
overwhelm numbers and statistical techniques.
– Instead, he should provide the important points that are helpful to the
managers in their decision making situations
Another important point in this regard is that the researcher does
not reach at the conclusion by himself alone through
interpretation. The managers should also involve themselves in
this step as they have already know-how of the main problem of
the research process. This means that he does not blindly accepts
the reporting of the researcher. So, the researcher and manager
work together to reach at a certain result after interpretation, so
that proper decisions are made in this regards.
4 types of Market research

1) Syndicated market research firm

2) Custom market research firm
3) Specialty market research firm
4)The online market research firm
1) Syndicated market
research firm
Syndicated market research companies are the ones who look the market requirements and
prepare their reports accordingly.
– For exampe – A.C Nielson is a market research company, which knows that other top
companies are looking for consumer behavior studies, buying patterns etc.
– Thus, A.C nielson regularly presents reports on buying patterns, industry analysis and sectory
analysis which is then sold at a cost to all companies.
– Simplifying the example even further, say you are the product head in P&G for Tide detergent.
You need a report on the detergent market. Such reports will be ready with A.C nielson as it
carries out research reports for the open market, and not for specific companies. Thus, you get
ready made reports at a given cost.
2) Custom market research
– Now, taking the above example, instead of wanting the complete market analysis,
you want to know just how well Tide and your particular brands are doing in the
– What is the thing missing in these products and what can be features added?
– For such a purpose, you will hire a custom market research firms. As the name
suggests, these custom market research firms will be ready to do the custom jobs
that you give them.
– Thus, initially many market research firms start as custom market research firms,
and then move on to specialty or syndicated market research firm.
3) Specialty market research

– Once a market research firm has a grip on one specialty, then the firm
may be known as a specialty market research firm. Many a times, such
market research firms also depend on the team of directors leading
them. If, for example, the team of directors or the proprietor is an
advertising guy, the firm might specialize in advertising research because
the team and the experience is ready with the specialty market research
4)The online market
research firm
– There are dozens of online market research firms. However, online
market research firms might be more useful for other online marketers
like Ebay, Online e commerce portals, top bloggers etc.
– MOZ and search engine land are few of these search marketing firms.
There are many such online market research firms.
– These firms help the website owners, as well as the brands, to connect to
their desired users and at the same time conduct online analysis.
– Marketing for small businesses is crucial to building
brand awareness, distinguishing your company from
the competition and encouraging sales. To get the best
results from your marketing, measure the results of
each campaign for analysis. By tracking and analyzing
the results of your marketing, you can improve your
marketing tactics to produce better or faster results.

– Metrics are the foundation for any successful marketing strategy,
but most companies fail to use many of these important metrics to
calculate success or failure. Too often, companies focus heavily on
the number of new leads generated, which ignores many of the
complex formulas that can determine the true success of any
marketing strategy.
1. ROI (Return on

2. CPA (Cost Per


3. ROAS (Return On
Advertising Spend).

4. CLV (Customer
Lifetime Value).

5. Customer
Retention Rate.
1. ROI (Return on Investment).

– ROI is the most common formula and probably the easiest to understand. ROI is a
measurement tool used to calculate the effectiveness and value of an investment. It
shows the gain and/or loss of an investment by comparing and measuring the
amount of return on an investment with the investment costs.
– . One company may use it to evaluate a return on a stock, while another may use it
to make vital decisions on whether the new PPC or SEO strategy is effective.
– For example, a company makes an investment of $5,000 into Google AdWords and
generates $10,000 in net profit. This would be a 100 percent ROI. The formula would
look like this: ROI = (Net Profit / Cost of Investment) x 100. Divide the return of an
investment by the cost of the investment, and the result is a percentage. In this
case, ROI = ($10,000/$5,000) X 100.
2. CPA (Cost Per Action).

– CPA is referred to as Cost Per Acquisition, Pay Per Action or Cost Per Action. It is a
formula that measures the amount a business has paid to attain a conversion.
– CPA campaigns are relatively low-risk, as costs are only accumulated once the
desired action has occurred.
– Most companies define CPA as Cost per Acquisition.
– For example, a company invests $1,000 in a SEO campaign. They received 100 new
customers specifically from SEO. Their CPA is $10/customer. The formula is CPA =
(Cost/ Conversions). Divide the cost of the ad campaign by the conversions.
3. ROAS (Return On Advertising

– Simply put, ROAS is a tool used to measure the profit

made from advertising. It’s the most useful metric to
evaluate the performance of marketing campaigns, as it
measures how much revenue you get back on each dollar
spent on advertising.
4. CLV (Customer Lifetime

– The Customer Lifetime Value metric is used to determine the

economic value a customer brings to your business, not only for
the time being, but for the entire time they’re a customer.
– The metric considers everything from their first interaction to their
final purchase with your company. This is essential to determine
whether there is more value in long-term marketing channels.
5. Customer Retention Rate

– Customer Retention Rate is a metric used to calculate how loyal your

customers are. Acquiring new customers costs more than retaining current
ones. Determining how dedicated a customer is to your company allows
you to improve your business strategies. If you can encourage loyal
customers to stay with your business longer, you'll maximize your
A marketing dashboard is a reporting tool that displays
marketing analytics, KPIs, and metrics using data
visualizations. Marketing dashboards are designed to
provide teams with instant and continuous visibility into
marketing performance.
At its core, a marketing dashboard answers the question,
“How are we performing right now?”
Digital Marketing Dashboard

– This digital marketing dashboard provides an example

of how marketers are tracking the performance of
their online marketing activities. While digital
marketing activities span multiple channels, this
dashboard focuses on lead generation stats and
showing progress towards monthly goals.
Marketing Performance

– This marketing dashboard is designed to provide

an in-depth view of the conversion funnel to help
inform marketing decision makings and campaign
eCommerce Marketing

– eCommerce Marketing Dashboard

– Ecommerce businesses are a fantastic use case for

dashboards because with the vast majority of the
business being digital, there is an open opportunity to
leverage the power of this data and a great need to do
it in a way that connects all the moving parts of the
SEO Dashboard

– SEO Dashboard

– An SEO Dashboard is a one stop shop for all your

web analytics data. An SEO dashboard is a central
meeting place for all these data sources so that
digital marketers can get a full understanding of
SEO performance from a number of perspectives
through metrics.
– When a company finds an attractive market, it must estimate that
market’s current size and future potential carefully.

– To develop effective targeting strategies, and to manage their

marketing efforts effectively, companies must be good at both
measuring current market demand and forecasting future demand.
– Overly optimistic estimates of current or future demand can result in
costly overcapacity or excess inventories. Underestimating demand
can mean missed sales and profit opportunities.
Market-buildup method A forecasting
method that calls for identifying all the
potential buyers in each market and
estimating their potential purchases

Market-factor index method A forecasting

method that identifies market factors that
correlate with market potential and
combines them into a weighted index.
Potential market is the part of
the total population that has
shown some level of interest
in buying a particular product
or service. This includes
individuals, firms and
organizations. Potential
market is also called Total
addressable market (TAM).
Available market is defined as
the number of people who are
both willing and capable of
buying a particular product or
service in a particular market. In
some cases it also includes the
access to markets for these
buyers. This metric is used to
measure the potential of a
–Target market is
the end
customer to
which the
company wants
to sell its end
products .
– A set of customers who are
already using a particular
product or service .
– A penetrated market means
that the potential users of a
product or service are aware
of it and many cases are active
consumers of it.