MARKETING RESEARCH

According to American Marketing Association, Marketing Research is the function that links the consumer, customer and public to the marketer through information-information used to identify and define marketing opportunities and problems, generate, refine and evaluat marketing actions; monitor marketing performance; and improve understanding of marketing as a process.

Marketing Research is systematic problem analysis, model building and fact finding for the purpose of important decision making and control in the marketing of goods and services.

Marketing Research is a well-planned, systematic process which implies that it needs planning at all the stages. It uses scientific method It is an objective process as it attempts to provide accurate authentic information. Marketing Research is sometimes defined as the application of scientific method in the solution of marketing problems. Marketing Research plays a very significant role in identifying the needs of customers and meeting them in best possible way. The main task of Marketing Research is systematic gathering and analysis of information. Before we proceed further, it is essential to clarify the relationship and difference between Marketing Research and Marketing Information System (MIS). Whatever information are generated by Marketing Research from internal sources, external sources, marketing intelligence agencies-consist the part of MIS. MIS is a set of formalized procedures for generating, analyzing, storing and distributing information to marketing decision makers on an ongoing basis. 1. 2. 3. While Marketing Research is done with a specific purpose in mind with information being generated when it is conducted, MIS information is generated continuously. MIS is continuous entity while Marketing Research is a ad-hoc system. While in Marketing Research information is for specific purpose, so it is not rigid; in MIS information is more rigid and structured.

Marketing Research is essential for strategic market planning and decision making. It helps a firm in identifying what are the market opportunities and constraints, in developing and implementing market strategies, and in evaluating the effectiveness of marketing plans. Marketing Research is a growing and widely used business activity as the sellers need to know more about their final consumers but are generally widely separated from those consumers. Marketing Research is a necessary link between marketing decision makers and the markets in which they operate. Marketing Research includes various important principles for generating information which is useful to managers. These principles relate to the timeliness and importance of data, the significance of defining objectives cautiously and clearly, and the need to avoid conducting research to support decisions already made.

Marketing Research is of use to the following:1. Producers a. To know about his product potential in the market vis--vis the total product; b. New Products; c. Various brands; d. Pricing; e. Market Structures and selection of product strategy, etc. Business and Government Marketing Research helps businesses and government in focusing attention on the complex nature of problems faced by them. For example: a. Determination of Gross National Product; Price indices, and per capita income;

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b. Expenditure levels and budgeting; c. Agricultural Pricing; d. The economic policies of Government; and e. Operational and planning problems of business and industry. Market Research Agencies Marketing Research is being used extensively by professionals to help conducting various studies in Marketing Research. Most prominent agencies being:a. b. c. d. e. Linta India Ltd; British Market Research Bureau (BMRB); Hindustan Thompson Associate Ltd; eSurveysPro.com; MARG

market research - limitations and constraints

Accurate, up-to-date information obtained by marketing research can be of enormous value to an organisation in gaining and/or maintaining its competitive edge. However, there are a number of reasons why, in reality, these potential benefits may not be realised: Budgetary constraints gathering and processing data can be very expensive. Many organisations may lack the expertise to conduct extensive surveys to gather primary data, whatever the potential benefits, and also lack the funds to pay specialist market research agencies to gather such data for them. In these cases, organisations may be forced to rely on data that is less than perfect but that can be accessed more cheaply, e.g., from secondary sources Time constraints organisations are often forced to balance the need to build up as detailed a picture as possible regarding customer needs etc. against the desire to make decisions as quickly as possible, in order to maintain or improve their position in the market Reliability of the data the value of any research findings depend critically on the accuracy of the data collected. Data quality can be compromised via a number of potential routes, e.g., leading questions, unrepresentative samples, biased interviewers etc. Efforts to ensure that data is accurate, samples are representative and interviewers are objective will all add to the costs of the research but such costs are necessary if poor decisions and expensive mistakes are to be avoided. Legal & ethical constraints the Data Protection Act (1998) is a good example of a law that has a number of implications for market researchers collecting and holding personal data. For instance, researchers must ensure that the data they obtain is kept secure, is only used for lawful purposes and is only kept for as long as it is necessary. It must be made clear as to why data is being collected and the consent of participants must be obtained. In addition to this, there are a number of guidelines, laid down by such organisations as the Market Research Society, that, although not legally binding, encourage organisations to behave ethically when dealing with members of the public,

Step 1: Problem Definition The first step in any marketing research project is to define the problem. In defining the problem, the researcher should take into account the purpose of the study, the relevant background information, what information is needed, and how it will be used in decision making. Problem definition involves discussion with the decision makers, interviews with industry experts, analysis of secondary data, and, perhaps, some qualitative research, such as focus groups. Once the problem has been precisely defined, the [2] research can be designed and conducted properly. Step 2: Development of an Approach to the Problem

Development of an approach to the problem includes formulating an objective or theoretical framework, analytical models, research questions, hypotheses, and identifying characteristics or factors that can influence the research design. This process is guided by discussions with management and industry experts, case studies and simulations, analysis of secondary data, qualitative research and pragmatic [2] considerations. 'Step 3: Research Design Formulation' A research design is a framework or blueprint for conducting the marketing research project. It details the procedures necessary for obtaining the required information, and its purpose is to design a study that will test the hypotheses of interest, determine possible answers to the research questions, and provide the information needed for decision making. Conducting exploratory research, precisely defining the variables, and designing appropriate scales to measure them are also a part of the research design. The issue of how the data should be obtained from the respondents (for example, by conducting a survey or an experiment) must be addressed. It is also necessary to design a questionnaire and a sampling plan to select respondents for the study. More formally, formulating the research design involves the following steps 1. Secondary data analysis 2. Qualitative research 3. Methods of collecting quantitative data (survey, observation, and experimentation) 4. Definition of the information needed 5. Measurement and scaling procedures 6. Questionnaire design 7. Sampling process and sample size 8. Plan of data analysis Step 4: Field Work or Data Collection Data collection involves a field force or staff that operates either in the field, as in the case of personal interviewing (in-home, mall intercept, or computer-assisted personal interviewing), from an office by telephone (telephone or computer-assisted telephone interviewing), or through mail (traditional mail and mail panel surveys with prerecruited households). Proper selection, training, supervision, and evaluation of the field force helps minimize data-collection errors. Step 5: Data Preparation and Analysis Data preparation includes the editing, coding, transcription, and verification of data. Each questionnaire or observation form is inspected, or edited, and, if necessary, corrected. Number or letter codes are assigned to represent each response to each question in the questionnaire. The data from the questionnaires are transcribed or key-punched on to magnetic tape, or disks or input directly into the computer. Verification ensures that the data from the original questionnaires have been accurately transcribed, while data analysis, guided by the plan of data analysis, gives meaning to the data that have been collected. Univariate techniques are used for analyzing data when there is a single measurement of each element or unit in the sample, or, if there are several measurements of each element, each RCH variable is analyzed in isolation. On the other hand, multivariate techniques are used for analyzing data when there are two or more measurements on each element and the variables are analyzed [2] simultaneously.
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Step 6: Report Preparation and Presentation The entire project should be documented in a written report which addresses the specific research questions identified, describes the approach, the research design, data collection, and data analysis procedures adopted, and presents the results and the major findings. The findings should be presented in a comprehensible format so that they can be readily used in the decision making process. In addition, an oral presentation should be made to management using tables, figures, and graphs to enhance clarity [2] and impact. For these reasons, interviews with experts are more useful in conducting marketing research for industrial firms and for products of a technical nature, where it is relatively easy to identify and approach the experts. This method is also helpful in situations where little information is available from other sources, as in the case of radically new products.
Applications of Market Research

Pricing Research

We provide pricing strategy consulting backed by strong pricing research capabilities. Our perspective is broad when dealing with pricing research and pricing strategy decisions, and focus on finding for your business optimum price-product-feature configurations in the context of market positioning opportunities. We employ both qualitative and quantitative pricing research tools. Product Research

Product market research serves several goals: new product design and market validation research, or assessing existing product strength and line extension potential. We follow the product development cycle integrating research with creative positioning and technical product design efforts. Concept Testing

Concept testing research evaluates advertising concepts, ad theme concepts and appeals, new product concepts, pricing, brand concepts, brand names, and positioning strategy concepts. We select techniques -- qualitative and quantitative -- to both develop concepts, refine, and screen to assess market potential. Positioning Research We offer experienced market positioning and creative branding research capabilities to define and go-tomarket with a high-impact positioning strategy. First, it requires understanding the market positioning concept, your current and potential markets, and the process needed to generate brand name impact. Marketing Due Diligence We support venture investment firms with primary and secondary marketing research in a stand alone or component marketing due diligence study. Customer Satisfaction Research The buzz and interest around customer satisfaction research sometimes deflates if the research design does not lead to actionable results. Also, customer expectations generally rise overtime as advances in

technology in many categories boost the consumer consciousness of what to expect. We build into our customer satisfaction study design "action indicators" to point to immediate use of customer satisfaction results. Branding Research

Branding decisions drive branding marketing research strategy. Corporate, product and advertising brand development is a mix of creativity and marketing information to uncover brand positioning opportunities in cluttered market spaces. Brand Equity Research

Brand equity research measures the breadth and depth of brand power in your target markets. We use both standard and custom tailored brand equity survey measurements. A key to research design is the goal of a brand equity measurement study. Advertising Research

Advertising research design is determined by specific advertising goals and the stage of ad development, or campaign. We use a broad range of advertising research techniques including ad recall surveys, message and theme salience and impact measures, buying motivation and association with the ad message or positioning theme. We employ both qualitative and quantitative pricing research tools. Market Segmentation

Market segmentation research maintains focus and delivers needed marketing information in today's moving economy where new markets and new product categories emerge and traditional market segments fade away. Market segmentation research is a way to keep 'your eye on the ball.' Often we start the market segmentation process with qualitative research to the range and breadth of customers. Then we follow with quantitative research using appropriate multivariate analysis (cluster, k-means factor, etc) to define meaningful segments. Sales Analysis

Data mining -- finding gems of insight from sophisticated or basic analysis of your internal customer and sales and margin trend data -- is a key first step in product and brand analysis. Simply put, a marketing analysis data mining effort searches for meaning and insight among the stacks of sales data and marketing data already within a sales and marketing organization. Through these tools we can better target your best customers, find which advertising and promotion methods are most efficient and effective.

How Decision Makers Value Information

Accurate, timely, and relevant information saves transportation agencies both time and money through increased efficiency, improved productivity, and rapid deployment of innovations. For example, access to research results allows agencies to benefit from the experiences of others and avoids costly duplication of effort. While the benefits are substantial, they are difficult to quantify and the value of information goes unrecognized. An extensive literature review and interviews with State DOTs, private companies, and transportation libraries reveal that access to information yields both time and cost savings by improving decision making, expediting solutions, and avoiding unnecessary research. The benefits of information and information services are summarized below. For a more detailed discussion of the literature review and interviews conducted for this report, see Appendices A and B. Good Information Reduces Costs Reducing costs is a primary concern for transportation agencies. A number of studies and experts consulted for this report cited the following cost savings resulting from access to information:

New York State DOT (NYDOT) estimates life-cycle cost savings of nearly $9 million per year resulting from a new concrete mix for bridge decks that was developed as the result of a literature search. The new mix was implemented by NYDOT in less than a year. Illinois DOT saved approximately $300,000 through access to research at Louisiana State University on heat-strengthening of steel bridges. For New York, an innovative horizontal drain system discovered at a TRB conference not only solved a landslide problem, but also yielded net savings of more than $2.5 million over conventional stabilization treatments. In the private sector, Texas Instruments calculated a 515 percent return on its investment in library services. A subsidiary of another major U.S. manufacturer found that the information produced by a series of literature searches performed by its corporate library was worth about $400,000-- and cost the company just $17,000. According to Griffiths and King (1993), firms without libraries spend 2 to 4 times more to acquire information than those with in-house libraries. Obtaining information through the use of alternative sources costs 2.3 times as much as acquiring the same information through an in-house library. Table 1 shows benefit-cost ratios for in-house information services range from 16 to 1 (Georgia Technical Institute) to 3 to 1 (Paccar, Inc.).

Information Saves Time Quality information saves time in numerous ways--by avoiding duplicative efforts, stopping unproductive activities, modifying design approaches, or correcting bad information:

Griffiths and King surveyed more than 27,000 professionals over an 11-year period on their use of information. Table 2 shows the percentage of journal articles, books, and internal reports to which the survey respondents attributed time savings. Table 2. Information Sources and Time Savings Information Source % Yielding Time Savings Journal articles Books Internal reports 26 percent 42 percent 50 percent

For North Carolina DOT, knowing what other States have done, and how these methods or results fit into its own research plan, is an invaluable time-saver. Experts there report that the time gap between initiation of a research project and its inclusion in an information database can be costly to other research efforts; they urge a concentrated effort to expedite the reporting of research in progress. An in-house librarian at Paccar, Inc., joined a task force to reduce the turnaround time for findings from a vehicle test track. The test results, with digitized photographs, were made available on the corporate Intranet within 1 to 6 days instead of the usual 1 to 6 months. The speedier access to the test track data significantly reduced the engineering design cycle.

Another corporate library reduced from 10 days to just 1 day the process of computing cost and labor rates for proposals by developing an on-line, in-house capability to perform functions formerly provided by an outside contractor. Parsons-Brinckerhoff saves time for managers and staff with its knowledge sharing network. This network has been successful in building the corporate knowledge base and in filling short-term vacancies for specialized personnel. Table 1. Benefit-Cost Ratios for Information Services Georgia Technical Institute Exxon [See Koenig, 1992.] Minnesota DOT NASA [ Ibid.] Paccar, Inc. 16 to 1 11 to 1 9-10 to 1 7.6 to 1 3 to 1

Information Improves Decision Making Within the highly decentralized transportation community, knowing what other organizations have done or how they have confronted similar challenges is invaluable when making technical or policy decisions:

Marshall's 1993 survey of banking managers documents the value of information in the decision-making process. Eighty-four percent of the 299 managers surveyed felt that the information provided by their company's information service contributed to better decisions. More than half said that the information led them to handle some aspect of an assignment differently. In cases where a decision involved a financial transaction, 74 percent estimated the value of the decision at more than $1 million. Respondents to Griffiths and King's survey measured the impact of information on work quality. Table 3 shows (from 1=low to 7=high) how respondents rated the quality of their work both with and without specific types of information. Table 3. Information and Quality of Work (Scale of 1 to 7) Journals Books Internal Reports With Information Without Information 5.82 4.04 5.68 3.57 5.78 3.52

Information Yields Customer Satisfaction Although many organizations cannot quantify the value of information or information services, the perceived value among users is high. Users discuss value in terms of whether, and to what extent, the information provided meets their expectations and needs. For example:

Texas Instruments' library in Houston reported that 81 percent of the users sampled felt that the library's services had a positive impact on their jobs. Virginia's Transportation Research Council yielded an overall rating from its customers of 4 on a 1-to-5 scale. In Matarazzo and Prusak's 1995 survey, 75 percent of senior managers thought that their libraries contributed to their organization's strategic goals by providing valuable information. Information obtained from electronic databases and reference services were most valued.