Thursday, June 11, 2009

What is marketing research ? Discuss its scope in accomplishing the marketing goal...

What is marketing research ? Discuss its scope in accomplishing the marketing goal of profit maximization set by the firm. Explain with suitable examples.

Marketing research is the function that likes the consumer with the organisation through
information. It involves systematic and objective search for and analysis of information
iluit tan be uses for evolving some marketing decisions.
An> research study must clearly state the issues being investigated. It must apply
s\ sicniatic and formal procedure in collection and analysis of information. It must
communicate the study findings in a manner, which could help in arriving at some
marketing decisions.
A research study will fail to serve its purpose if marketing researcher merely collates
some stalistieal facts or is pre-occupied with techniques or uses data of questionable
validity or communicates the findings in too much vague or technical language.
Likewise, a research study wills suffer_ _ the marketing manager does not offer full
perspective of the research problem; or allows inadequate time; or uses research as a
lireliglning device or does not really appreciate the value of research.
Problem must be clearly defined and reasons for undertaking the research from the point
of vie\\ of marketing decision-making should be explicitly justified.
In order to carry out effective research programme
1. Prepare a list of objectives to-be examined
2. Avoid
Vague terms of reference
I rivial research projectors
Research where underlying purpose in known or with held.
I nsuic concurrence about the terms of references (specially research objectives, plan ol data collection, time and budget) among all concerned.
Bulk of research is done to measure consumer wants and needs. Also, marketing research is carried out to assess the impact of past marketing actions. Some research is done to understand the competitive, technological, social, economic, cultural, political or legal cm ironments of the market.
Another \sa\ of looking at the function of marketing research is to look at the particular decision area where research results are used.
I) Sales Analysis
Much research is done in the following areas, which are broadly referred as sales analysis
• Measurement of market potential/demand projection;
• Determination of market characteristics:
• Market share estimation;
• Studies of business trends.
In fact, some of the more detailed studies to be carried out under the broad ambit of analysis could be as follows.
• The types of consumers that constitute the potential market;
• The size and location of the market;
• The growth and concentration of the market over certain period of time;
• The competitive picture for the product;
• The major strategies of leading competitors with respect to price, offerings
distribution etc.
• 1 he purchase habits of key market segments;
• What is the pattern of per-purchase deliberations made by the consumers?
• Who arc the involved in the decision-making?
• I low does the product lit into the consumer's life styles? (Operation if it is an industrial product);
• Do consumers prefer to buy some particular brands? (i.e. Assess the degree of grand loyalty).
The above list is not exhaustive. Here research is basically done with a view to know consumers" motivation, attitude, cognition and perceptions etc. Thus information will be collected in a manner so that they have some implications for various marketing
decisions.
11) Sales Methods and Policies
Marketing research studies are also conducted with a view to evaluate the effectivness of present distribution system. Such studies are used in establishing or revising sales territories. They are also helpful in establishment of sales quotas, design of territory boundary, compensation to sales force, physical distribution and distribution cost analysis etc. Marketing research is also done to assess the effectiveness of different promotional activities such as premiums, deals, coupons, sampling etc.
Ill) Product Management
l-'ver\ marketer tries to formally or informally utilize information to manage the existing and ncu products. It examines market feedback about competitive product offerings. Also, some companies make use of marketing research to form market segments through choice of aliernaiixc bases. Companies also carry out different research studies to assess consumer feedback to new products and their likely potential. Of late, in India many consumer products have been launched after making rigorous amount of research. \loreo\er. researches have enabled to diagonise how consumers perceive various brands of a product. Such studies have enabled the companies to position their brands. Marketing research studies have been conducted to monitor the performance of the test brand (in terms of trial and repeat purchase) launched in select shops in the market. Studies are popularly known as simulated test marketing (STM) models. Pricing studies, packaging research, design or physical characteristics, have also been sometimes conducted.
IV) Advertising Research
Media research: There National Readership Surveys (NRS) have so far been conducted in India. These studies have basically estimated the readership of leading newspapers. The last NRS has also assessed, qualitatively, readers feedback on the editorial content. Moreover, some marketing research have evaluated the relative effectiveness of different media in specific product fields, and in context of achieving specific tasks such as creating brand awareness or a particular product benefit.

Copy research: Advertising agencies have been regularly engaged in this activitywhere ihc\ lest out alternative copy designs by assess and monitor effectiveness of different ad\ crtising campaigns.
V) Corporate Research
Large scale corporate image studies among different target publics - They involve an assessment of knowledge about company activities, association of company with sponsored activities and company perceptions on specific dimensions. These type of corporate image studies are done periodically to monitor any change in image over time among different publics. Social values research: Knowledge, attitude and practices on family planning,
antidowry. smoking, drinking etc.
Political studies: In recent times marketing studies have been conducted to ascertain the public opinion about the election results.
Customer service studies: Many banks and large industrial houses have resorted to marketing research to know the consumers' changing need for service and possible grievances about existing operations.
VI) Syndicated Research
Several research agencies collect and tabulate marketing information on a continuing basis. Reports are sent periodically (Weekly, monthly or quarterly) to clients who are paid subscribers. Such services are found specially useful in the spheres of movement of consumer goods through retail outlets (ORG Retail Audit), incidence of disease and use of branded drugs (MARG - prescription audit), Television Program viewing (the television Rating Points). Newspaper & Magazine readership (NRS - discussed earlier under media research), assessment of market potential of a city with-population one lakh and abo\e (Thompson Indices), study of nation's attitudes and psychographics (PSNAP and IMRM's life style research on the cigarette market).

1 comments:

Unknown said...

Very informative and interesting post.It is really a big help. Thank you so much for sharing it with us.
Marketing Research Company
Small Business Marketing

Post a Comment