Research is defined as a ‘‘systematic inquiry aimed at providing information to solve managerial

problems.’’ The term systematic is related to the scientific method, the idea being that research is
the process of inquiry conducted in the best, or at least, most appropriate way.

Definition of Marketing Research

The American Marketing Association defines marketing research as follows:

Marketing Research is the function which links the consumer, customer, and public to the marketer
through information—information used to identify and define marketing opportunities and
problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and
improve understanding of marketing as a process.

Marketing research is the function which links the customer, customer and public to the marketer
through informationinformation used to identify and define marketing opportunities and problems;
generate, refine and evaluate marketing actions; monitor marketing performance; and improve
understanding of market as a process.

Marketing research specifies the information required to address these issues; designs the method
for collecting information; manages and implements the data collection process; analyses the
results; and communicates the findings and their implications.

According to Naresh Malhotra , a popular researcher and professor the definition of Marketing
research is:
The systematic and objective identification, collection, analysis, and dissemination of information for
the purpose of assisting management in decision making related to the identification and solution of
problems (and opportunities) in marketing.

Green and Tull, a popular text book authors have defined marketing research as follows:
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.

These definitions bring out the following common features.

1. Marketing research is a function of a business organization.
2. It links marketer with consumer, customer and public.
3. Information is the outcome of marketing research.
4. It is an objective search- inquiry with a purpose
5. It is systematic. It is based on a defined procedure and uses standard methods.
6. It is a process involving steps like: identification, collection, analysis, and dissemination of
information.
7. It is purposeful. It helps managers in improving their understanding of marketing as a process and
assists in decision making related to problems and opportunities in marketing. It helps evaluate
marketing actions and monitor marketing performance.

Definition of Basic Research

Basic Research or otherwise called as pure or fundamental research, is one

that focuses on advancing scientific knowledge for the complete
understanding of a topic or certain natural phenomenon, primarily in natural
sciences. In a nutshell, when knowledge is acquired for the sake of knowledge
it is called basic research.

Basic Research is completely theoretical, that focuses on basic principles and

testing theories. It tends to understand the basic law.

Basic Research deals with generalization and formulation of theory about

human behaviour. It is aligned towards collecting information that has
universal applicability. Therefore, basic research helps in adding new
knowledge to the already existing knowledge.

Definition of Applied Research

Applied Research can be defined as research that encompasses real life

application of the natural science. It is directed towards providing a solution to
the specific practical problems and develop innovative technology.

In finer terms, it is the research that can be applied to real-life situations. It

studies a particular set of circumstances, so as to relate the results to its
corresponding circumstances.

Applied research includes research that focuses on certain conclusions

experiencing a business problem. Moreover, research that is aligned towards
ascertaining social, economic or political trends are also termed as applied
research.

Key Differences Between Basic and Applied Research

The points given below explain the differences between basic and applied
research:

1. Basic Research can be explained as research that tries to expand the

already existing scientific knowledge base. On the contrary, applied
research is used to mean the scientific study that is helpful in solving
real-life problems.
2. While basic research is purely theoretical, applied research has a
practical approach.
3. The applicability of basic research is greater than the applied research,
in the sense that the former is universally applicable whereas the latter
can be applied only to the specific problem, for which it was carried out.
4. The primary concern of the basic research is to develop scientific
knowledge and predictions. On the other hand, applied research
stresses on the development of technology and technique with the help
of basic science.
5. The fundamental goal of the basic research is to add some knowledge to
the already existing one. Conversely, applied research is directed
towards finding a solution to the problem under consideration.
Comparison Chart
BASIS FOR BASIC RESEARCH APPLIED RESEARCH
COMPARISON

Meaning Basic Research refers to the Applied Research is the

study that is aimed at research that is designed to
expanding the existing base solve specific practical
of scientific knowledge. problems or answer certain
questions.

Nature Theoretical Practical

Utility Universal Limited

Concerned with Developing scientific Development of technology

knowledge and predictions and technique

Goal To add some knowledge to To find out solution for the

the existing one. problem at hand.

The scope of marketing research is very wide and comprehensive. It includes

1. Product Research
Product means the goods and services which are sold to the consumers. It includes consumer products and
industrial products. Product research studies the individual product. It studies the making and marketing of the
product. It studies the colour, size, shape, quality, packaging, brand name and price of the product. It also deals
with product modification, product innovation, product life cycle, etc. The product is modified (changed) as per the
needs and wants of the consumers. Therefore, the product will not fail in the market.

2. Consumer Research

Consumer is the person who purchases the goods and services. The consumer is the king in the market.
Consumer research studies consumer behaviour. It studies the consumers needs, wants, likes, dislikes, attitude,
age, sex, income, location; buying motives, etc. This data is used to take decisions about the product, its price,
place and promotion.

3. Packaging Research

Packaging research is a part of product research. It studies the package of the product. It improves the quality of
the package. It makes the package more attractive. It makes the package more convenient for the consumers. It
reduces the cost of packaging. It selects a suitable method for packaging. It also selects suitable packaging
material.

4. Pricing Research

Pricing Research studies the pricing of the product. It selects a suitable method of pricing. It fixes the price for the
product. It compares the companies price with the competitor's price. It also fixes the discount and commission
which are given to middlemen. It studies the market price trends. It also studies the future price trends.

5. Advertising Research

Advertising research studies the advertising of the product. It fixes the advertising objectives. It also fixes the
advertising budget. It decides about the advertising message, layout, copy, slogan, headline, etc. It selects a
suitable media for advertising. It also evaluates the effectiveness of advertising and other sales promotion
techniques.

6. Sales Research

Sales research studies the selling activities of the company. It studies the sales outlets, sales territories, sales
forecasting, sales trends, sales methods, effectiveness of the sales force, etc.

7. Distribution Research

Distribution research studies the channels of distribution. It selects a suitable channel for the product. It fixes the
channel objectives. It identifies the channel functions like storage, grading, etc. It evaluates the competitor's
channel.
8. Policy Research

Policy research studies the company's policies. It evaluates the effectiveness of the marketing policies, sales
policies, distribution policies, pricing policies, inventory policies, etc. Necessary changes, if any, are made in
these policies.

9. International Marketing Research

International marketing research studies the foreign market. It collects data about consumers from foreign
countries. It collects data about the economic and political situation of different countries. It also collects data
about the foreign competitors. This data is very useful for the exporters.

10. Motivation Research

Motivation research studies consumers' buying motives. It studies those factors that motivate consumers to buy a
product. It mainly finds out, Why the consumers buy the product? It also finds out the causes of consumer
behaviour in the market.

11. Market Research

Market research studies the markets, market competition, market trends, etc. It also does sales forecasting. It
estimates the demand for new products. It fixes the sales territories and sales quotas.

12. Media Research

Media research studies various advertising media. The different advertising media are television (TV), radio,
newspapers, magazines, the internet, etc. Media research studies the merits and demerits of each media. It
selects a suitable media for advertising. It does media planning. It also studies media cost. It helps in sales
promotion and to avoid wastage in advertising

NATURE OF MARKETING RESEARCH

Meaning: - Marketing research is a systematic approach to solve marketing

problems. The American marketing association defines marketing research
“The systematic gathering, recording, and analyzing of data about problems
relating to marketing of goods and services.”
The nature of marketing research is briefly stated as follows
1. Systematic process: - Marketing Research is a systematic process to identify and to solve
problems. The process of marketing research involves the following steps: 1. Identify the
marketing problems. 2. Create the research design. 3. Collection of data through primary
and secondary sources. 4. Processing of data. 5. Analysis of data. 6. Implementation of
data. 7. Finally, review or follow up of action taken.

2. Scope: -Marketing Research attempts to solve problems in a wide range of areas. The
problem relates to various areas of marketing such as:

 Product Research

 Promotion Research

 Pricing Research

 Place Research

3. Continuous in Nature: -Marketing research is continuous in nature. As long as the firm

exists, there is a need for marketing research; to overcome certain marketing problems
arise during existence of the firm.

4. Applied Research: -Marketing Research is conducted to solve specific problems of

commercial importance. Since, marketing research is subject to commercial considerations,
it is not a basic or fundamental research but an applied research which is used to solve
specific problems.

5. Bridges Company-customer Gab: -Marketing Research bridges the gap between the
producers and the consumers. The company comes to know more about its consumers-their
likes and dislikes, tastes, preferences and buying patterns.

6. Company Objectives: -Due to marketing research, the company is a position to achieve its
objectives. Marketing research enables a firm to solve marketing problems. The resolving of
marketing problems enables the company to achieve its objectives in a profitable manner.

7. Marketing mix decisions: -Marketing Research provides necessary information to arrive at

appropriate solutions to marketing problems. Effective marketing mix like packaging,
pricing, promotion, distribution enables the firm to achieve marketing objectives.

8. Methods of Data collection: -Marketing research data can be conducted with the help of
various methods such as;
 Survey/interview method

 Observation Method

 Experimentation method. (R&D, product trials).

9. Suffers from certain limitation: -Although marketing research is beneficial to the company
and the customers, yet it suffers from certain limitations, such as; limitation of time,
limitation of funds, limitation of data collection and data analysis techniques, problem of
bias (partiality) on the part of the respondents and of the interviewers and so on. Etc.

Need and Importance of Marketing Research!

The most important task of a marketer is to get the right product at the right place with the
right price to the right person. Besides, it was also necessary to go back and find whether
consumer is getting optimum satisfaction, so that consumer remains loyal. These aspects
made it imperative for the marketers to conduct marketing research.

The following points explain the need for and importance of marketing
research:

1. Identifying problem and opportunities in the market:

It helps in identifying new market opportunities for existing and new products. It provides
information on market share, nature of competition, customer satisfaction levels, sales
performances and channel of distribution. This helps the firms is solving problems.

2. Formulating market strategies:

Today, markets are no more local. They have become global. Manufactures find it difficult to
contact customers and control distribution channels. Competition is equally severe. The
consumer needs are difficult to predict. Market segmentation is a complicated task in such
wide markets. The marketing intelligence provided through marketing research not only
helps in framing but also in implementing the market strategies.

3. Determining consumer needs and wants:

Marketing has become customer-centric. However, large-scale production needs
intermediaries for mass distribution. Due to prevalence of multi channels of distribution,
there is an information gap. Marketing research helps in collecting information on
consumers from structured distribution research and helps in making marketing customer
oriented.

4. For effective communication mix:

In an era of micro- rather than mass-marketing, communication plays a vital role. Marketing
research uses promotional research to study media mix, advertising effectiveness and
integrated communication tools. Research on such aspects will help in promoting effectively
a company’s product in the market.

5. Improving selling activities:

Marketing research is used to analyse and evaluate performances of a company within a
market. It also studies effectiveness of a sales force. It helps in identifying sales territories.
Such information helps the companies in identifying areas of shortcoming in sales. It also
examines alternative methods for distribution of goods.
6. For sales forecasting:
The most challenging task for any production manager is to keep optimum levels of
inventory. However, production is undertaken in anticipation of demand. Therefore,
scientific forecast of sales is required. Marketing research helps in sales forecasting by using
market share method, sales force estimate method and jury method. This can also help in
fixing sales quotas and marketing plans.

7. To revitalize brands:
ADVERTISEMENTS:

Marketing research is used to study and find out the existing brand position. It finds out the
recall value of brands. It explores the possibilities of brand extension or prospects of
changing existing brand names. The main purpose of marketing is to create brand loyalty.
Marketing research helps in developing techniques to popularize and retain brand loyalty.

8. To facilitate smooth introduction of new products:

Marketing research helps in testing the new products in one or two markets on a small scale.
This helps in finding out consumer response to new product and develop a suitable
marketing mix. It reveals the problems of the customers regarding new products. Thus, it
controls the risk involved in introducing a new product.

9. Determine export potentials:

The development in transport and communication has helped in globalization and
digitalization of world trade. This has helped in boosting the growth of international
markets. Marketing research helps in conducting market survey for export. It. collects
information on marketing environment prevailing in a country. By collecting data on
consumers from different countries, it indicates export potentials.

10. Managerial decision-making:

Marketing research plays a vital role in the decision-making processes by supplying relevant,
up-to-date and accurate data to the decision-makers. Managers need up-to-date information
to access customer needs and wants, market situation, technological change and extent of
competition.
 1. Provides valuable data

Marketing research provides valuable data to the decision makers. It provides data about demand, supply,
consumer behavior, competition, etc. This data is used for decision making. This data improves the quality of
decisions. It makes the decision very successful.

2. Studies consumer behaviour

Marketing research provides data about consumer behavior. It provides data about age, incomes, likes, dislikes,
etc. of the consumers. It also finds out the opinions of the consumers about a company’s product. This data is
used to make production and marketing policies.

3. Selects promotional techniques

Marketing research helps the company to select suitable sales promotion techniques. It helps to select marketing
techniques. It helps to select proper media for advertising. It helps to solve the problems of after-sales service. It
also helps to prepare the budget for advertising and sales promotion.

4. Supplies marketing information

Marketing research supplies data about the market situation.

This market-related data is used to find out:
1. The present and future demand and supply position.
2. The level of competition and steps taken to control it.
3. Market opportunities.
4. The cause of fall in sales level.

5. Evaluates marketing performance

Marketing research helps the company to evaluate its marketing performance and to take steps to improve it.
 Marketing research is used to find out the effect of price, package, brand name, etc. on sales. It is used to find
consumers’ reaction towards the company’s product. It is used to evaluate the inventory and pricing policies. It is
also used to evaluate the effectiveness of advertising, sales promotion techniques, channels of distribution, etc.

6. Miscellaneous needs and importance

Miscellaneous needs and importance of marketing research are as follows:

 Marketing research improves the efficiency of the marketing department. This creates goodwill and good
reputation.
 It helps the marketing manager to take the rational and effective decisions.
 It helps to choose suitable staff for doing research.
 It is used to make growth and expansions programs.
 It benefits all i.e. it benefits the company, distributor, advertising agency, consumer, government and the entire
society.
So, marketing research is very helpful to everyone. But it is most useful to a manufacturer because it helps to
answer the basic questions, i.e. what, where, when, who, whom and how to sell?

Limitations of Marketing Research

Though marketing research (MR) has many advantages, it also has many limitations or disadvantages.
1. Marketing research studies consumer behavior and marketing environment. Since these factors keep on
changing, it cannot give exact information.
2. MR is also a social science. So, it cannot give exact solutions.
3. It cannot be an alternative to decision making. In other words, it cannot replace decision making. It aids in
decision-making. It can improve the quality of decisions. However, it cannot guarantee a 100% success.
4. It can reduce the business risks. However, it cannot totally eliminate all these risks.
The demerits or limitations of marketing research are depicted below.
 The limitations or disadvantages of marketing research are as follows:
1. Marketing research (MR) is a costly affair.
2. It is also lengthy and time-consuming.
3. It has a limited scope.
4. It has a limited practical value.
5. It can't predict consumer behavior.
6. It can't give 100% accurate results.
7. It provides suggestions and not solutions.
8. Non-availability of qualified and experienced staff affects its quality.
9. It uses a fragmented approach.
10. It can be misused.
11. Non-availability of a reliable data affects it.
12. It is resistant to marketing managers.

Now let's discuss above listed limitations of marketing research.

1. Costly : Marketing research is a costly affair. It needs a lot of money to conduct various market research
activities. Huge funds are required to pay salaries, prepare questionnaires, conduct surveys, prepare reports,
etc. It is not a viable choice for small businesses. It is suitable only to large companies who can afford its cost.
2. Time consuming : Marketing research is a lengthy and time-consuming process. This process involves many
important steps. All these steps are crucial and not even a single step can be neglected or avoided. In other
words, there are no short-cuts in MR. Generally, it takes at least three to six months to solve a marketing
problem. Therefore, it cannot be used in urgent or emergency situations.
3. Limited scope : Marketing research solves many business-related problems. However, it cannot solve all
business problems. It cannot solve problems related to consumer behavior, income and expenditure
relationship, etc. Thus, its scope is limited.
4. Limited practical value : Marketing research is only an academic exercise. It is mainly based on a
hypothetical approach. It gives theoretical solutions. It does not give realistic solutions to real-life problems. Its
solutions look good on paper but are harder to implement in a real sense. Thus, it has a limited practical value.
5. Can't predict consumer behavior : Marketing research collects data about consumer behavior. However,
this data is not accurate because consumer behavior cannot be predicted. It keeps on changing according to
the time and moods of the consumers. Consumer behavior is also very complex. It is influenced by social,
religious, family, economic and other factors. It is very difficult to study these factors.
6. No accurate results : Marketing research is not a physical science like physics, chemistry, biology, etc. It is a
social science. It studies consumer behavior and marketing environment. These factors are very
unpredictable. Therefore, it does not give accurate results. It gives results, but it cannot give 100% correct
results.
7. Provides suggestions and not solutions : Marketing research provides data to the marketing manager. It
guides and advises him. It also helps him to solve the marketing problems. However, it does not solve the
marketing problem. The marketing manager solves the marketing problems. So, MR only provides
suggestions. It does not provide solutions.
8. Non-availability of technical staff : Marketing research is done by researchers. The researchers must be
highly qualified and experienced. They must also be hard-working, patient and honest. However, in India, it is
very difficult to find good researchers. Generally, it is done by non-experienced and non-technical people.
Therefore, MR becomes a costly, time-consuming and unreliable affair. So, its quality is also affected due to
non-availability of technical staff.
9. Fragmented approach : Marketing research studies a problem only from a particular angle. It does not take
an overall view into consideration. There are many causes for a marketing problem. It does not study all
causes. It only studies one or two causes. For example, if there is a problem of falling sales. There are many
causes for falling sales; like, poor quality, high-price, competition, recession, consumer resistance, etc. It will
only study two causes viz; low-quality and high price. It will not study other causes. So, it is not a reliable one.
10. Can be misused : Sometimes, marketing research is misused by the company. It is used to delay decisions. It
is used to support the views of a particular individual. It is also used to grab power (managerial) in the
company.
11. Non-availability of reliable data : The quality of the marketing research report depends on the quality of the
collected data. If the data is complete, up-to-date and reliable, then the MR report will also be reliable.
However, in India, it is very difficult to get full, latest and trustworthy data. So, non-availability of a reliable data
is also its limitation.
12. Resistance of marketing managers : The marketing managers do not use the suggestions given in the
marketing research report. Primarily, they feel that these suggestions are not practical. Secondly, they also
feel that their importance will become less if they use these suggestions. There is a conflict between the
marketing managers and the researchers.