Professional Documents
Culture Documents
Topic:-Marketing
Research
This project required hard work; sincerity and devotion that I tried my best to put
in this project and in turn gained a lot of knowledge and confidence from this
project.
Finally I thank the almighty god with whose grace I was always motivated and
deeply engrossed with my project during the entire duration from its conception to
success.
KAWALJEET
CERTIFICATE
This is to certify that this Minor Term Paper titled “MARKETING RESEARCH” has
been submitted in the partial fulfillment of the Minor Term Paper in the course “BCA”. It has
been further certified that this Term Paper is an Original work carried out by KAWALJEET
under the continuous guidance of MRS. AVNEET KAUR
Contents
Market research and marketing research are often confused. ‘Market’ research is
simply research into a specific market. It is very narrow concept. ‘Marketing’
research is much boarder. It not only include market research, but also areas such
as research into new product,or modes of distribution such as via the internet. Here
are couples of definitions:
A word of caution regarding life cycle activities: we isolate and sequence these
activities for learning purposes, but in real life they overlap and are highly
interrelated. For example, when the analyst is evaluating an existing operation,
he/she is probably thinking about an alternative way that would improve the
system or wondering whether a given piece of hardware would be critical cost
item to consider system. Therefore , there can easily be overlap during any
phase of the cycle. Infect , it may act as a basis for modifying earlier steps
taken. We now describe each of these steps.
Recognition of need – what is the problem?
one must know what the problem is before it can be solved. The basis for a
candidate system is recognition of a need for improving an information system
or procedure. For example, a supervisor may want to investigate the system
flow in purchasing or a bank president has been getting complaints about the
long lines in the drive-in. This need leads to a preliminary survey or an initial
investigation to determine whether an alternative system can solve the problem.
It entails looking into the duplication of effort, bottlenecks, inefficient existing
procedures , or whether parts of existing system would be candidates for
computerization.
Ideas for change may also come from within the organisation –top management
, the user the analyst. As an organisation changes its operations or faces
advances in computer technology, someone within the organisation may feel the
need to update existing applications or improve procedures. Here are some
examples:
Feasibility study:-
Many feasibility studies are disillusioning for both users and analysts. First ,the
study often presupposes that When the feasibility evaluate solutions. Second ,
most studies tend to overlook the confusion inherent in system development- the
constraints and assumed attitudes. If the feasibility study is to serve as a decision
document, it must answer three key questions:
1. Is there a new and better way to do the job that will benefit the users?
2. What are the costs and savings of the alternatives?
3. What is recommended ?
The most successful system projects are not necessarily the biggest or most visible
in a business but rather those that truly meet user expectations. More projects fail
because of inflated expectations than for any other reason.
Feasibility considerations:
1. Economic feasibility:-
Economic analysis is the most frequently used method for evaluating the
effectivenessof a candidate system. More commonly known as cost/benefit
analysis , the procedure is to determine the benefits and savings that are
expected from a candidate system and compare them with costs. If benefits
outweigh costs, then the decision is made to design and implement the
system. Otherwise, further justification or alterations in the proposed
system will have to be made if it is to have a chance of being approved.
This is an ongoing effort that improves in acccuracy at each phase of the
system life cycle.
2. Technical feasibility:-
Technical feasibility centers around the existing computer system
(hardware, software etc) and what to extent it can support the proposed
addition. For example, if the current computer is operating at 80% capacity-
an arbitrary ceiling- then running another application could overload the
system or require additional hardware. This involves financial
considerations to accommodate technical enhancements. If the budget is a
serious constraints, then the project is judged not feasible.
3. Behavioral feasibility:-
People are inherently resistant to change andcomputer have been known to
facilitate change . an estimate should be made of how strong a reaction the user
staff is likely to have toward the development of a computerized system. It is
common knowledge that computer installation have something to do with turnover
, transfer, retraining and changes in employee jo status. Therefore, it is
understandable that the introduction of a candidate system requires special effort to
educate ,sell,and train the staff on new ways of conducting business.
Detailed system
documentation
Output
design
Design submitted
Input
to management for
design
approval
Design
File accept
design Abandon project
Processing Test
design programs
2
The Role of Marketing Research in
Strategic Planning and Decision
Making
The task of marketing research is to provide management with relevant, accurate,
reliable, valid, and current information. Competitive marketing environment and
the ever-increasing costs attributed to poor decision making require that marketing
research provide sound information. Sound decisions are not based on gut feeling,
intuition, or even pure judgment.
Marketing managers make numerous strategic and tactical decisions in the process
of identifying and satisfying customer needs. They make decisions about potential
opportunities, target market selection, market segmentation, planning and
implementing marketing programs, marketing performance, and control. These
decisions are complicated by interactions between the controllable marketing
variables of product, pricing, promotion, and distribution. Further complications
are added by uncontrollable environmental factors such as general economic
conditions, technology, public policies and laws, political environment,
competition, and social and cultural changes. Another factor in this mix is the
complexity of consumers. Marketing research helps the marketing manager link
the marketing variables with the environment and the consumers. It helps remove
some of the uncertainty by providing relevant information about the marketing
variables, environment, and consumers. In the absence of relevant information,
consumers' response to marketing programs cannot be predicted reliably or
accurately. Ongoing marketing research programs provide information on
controllable and non-controllable factors and consumers; this information enhances
the effectiveness of decisions made by marketing managers.
sales
profits
customer satisfaction
value.
This is a big topic, but I’d like to try to discuss the major market research tools and
consider how they can help you and where they can’t.
Before I get too far, let me say that the tools for market research have improved
dramatically in the past decade. Many of the concerns of the past, which I’ll
discuss shortly, are addressed by new technologies for easily reaching out to large
numbers of users and customers, and for analyzing your user’s activity and
behavior – who they are and what they do with your product. That said, there are
still some very fundamental, inherent limitations to market research tools, so it’s
important to understand that to
For marketers, research is not only used for the purpose of learning, it is also a critical
component needed to make good decisions. Market research does this by giving marketers a
picture of what is occurring (or likely to occur) and, when done well, offers alternative
choices that can be made. For instance, good research may suggest multiple options for
introducing new products or entering new markets. In most cases marketing decisions prove
less risky (though they are never risk free) when the marketer can select from more than one
option.
Using an analogy of a house foundation, marketing research can be viewed as the foundation
of marketing. Just as a well-built house requires a strong foundation to remain sturdy,
marketing decisions need the support of research in order to be viewed favorably by
customers and to stand up to competition and other external pressures. Consequently, all
areas of marketing and all marketing decisions should be supported with some level of
research.
While research is key to marketing decision making, it does not always need to be elaborate
to be effective. Sometimes small efforts, such as doing a quick search on the Internet, will
provide the needed information. However, for most marketers there are times when more
elaborate research work is needed and understanding the right way to conduct research,
whether performing the work themselves or hiring someone else to handle it, can increase the
effectiveness of these projects.
Problem identification research is undertaken to help identify problems which are, perhaps, not
apparent on the surface and yet exist or are likely to arise in the future. Examples of problem
identification research include market potential, market share, brand or company image, market
characteristics, sales analysis, short-range forecasting, long range forecasting, and business trends
research. A survey of companies conducting marketing research indicated that 97 percent of
those who responded were conducting market potential, market share, and market characteristics
research. About 90 percent also reported that they were using other types of problem
identification research. Research of this type provides information about the marketing
environment and helps diagnose a problem. For example, a declining market potential indicates
that the firm is likely to have a problem achieving its growth targets. Similarly, a problem exists
if the market potential is increasing but the firm is losing market share. The recognition of
economic, social, or cultural trends, such as changes in consumer behavior, may point to
underlying problems or opportunities. The importance of undertaking problem identification
research for the survival and long term growth of a company is exemplified by the case of PIP
printing company
Once a problem or opportunity has been identified, as in the case of PIP, problem solving research
is undertaken to arrive at a solution. The findings of problem solving research are used in making
decisions which will solve specific marketing problems. More than two-thirds of companies
conduct problem solving research.
The Stanford Research Institute, on the other hand, conducts an annual survey of consumers that is
used to classify persons into homogeneous groups for segmentation purposes. The National
Purchase Diary panel (NPD) maintains the largest diary panel in the United States.
Standardized services are research studies conducted for different client firms but in a standard
way. For example, procedures for measuring advertising effectiveness have been standardized so
that the results can be compared across studies and evaluative norms can be established. The
Starch Readership Survey is the most widely used service for evaluating print advertisements;
another well-known service is the Gallup and Robinson Magazine Impact Studies. These services
are also sold on a syndicated basis.
Customized services offer a wide variety of marketing research services customized to suit a
client's specific needs. Each marketing research project is treated uniquely. Some marketing
research firms that offer these services include Burke Marketing Research, Market Facts, Inc., and
Elrick & Lavidge.
Limited-service suppliers specialize in one or a few phases of the marketing research project.
Services offered by such suppliers are classified as field services, coding and data entry, data
analysis, analytical services, and branded products. Field services collect data through mail,
personal, or telephone interviewing, and firms that specialize in interviewing are called field
service organizations. These organizations may range from small proprietary organizations which
operate locally to large multinational organizations with WATS line interviewing facilities. Some
organizations maintain extensive interviewing facilities across the country for interviewing
shoppers in malls.
Coding and data entry services include editing completed questionnaires, developing a
coding scheme, and transcribing the data on to diskettes or magnetic tapes for input into the
computer. NRC Data Systems provides such services.
Analytical services include designing and pretesting questionnaires, determining the best
means of collecting data, designing sampling plans, and other aspects of the research design.
Some complex marketing research projects require knowledge of sophisticated procedures,
including specialized experimental designs, and analytical techniques such as conjoint analysis
and multidimensional scaling. This kind of expertise can be obtained from firms and
consultants specializing in analytical services.
Data analysis services are offered by firms, also known as tab houses, that specialize in
computer analysis of quantitative data such as those obtained in large surveys. Initially most
data analysis firms supplied only tabulations (frequency counts) and cross tabulations
(frequency counts that describe two or more variables simultaneously). With the proliferation
of software, many firms now have the capability to analyze their own data, but, data analysis
firms are still in demand.
Branded marketing research products and services are specialized data collection and
analysis procedures developed to address specific types of marketing research problems.
These procedures are patented, given brand names, and marketed like any other branded
product.
Brand name testing - what do consumers feel about the names of the products?
Buyer decision processes research - to determine what motivates people to buy and
what decision-making process they use
Demand estimation - to determine the approximate level of demand for the product
Distribution channel audits - to assess distributors’ and retailers’ attitudes toward a product, bran
Internet strategic intelligence - searching for customer opinions in the Internet: chats, forums, we
people express freely about their experiences with products, becoming strong "opinion formers"
Marketing effectiveness and analytics - Building models and measuring results to determine the
individual marketing activities.
Positioning research - how does the target market see the brand relative to competitors? - what do
Price elasticity testing - to determine how sensitive customers are to price changes
Sales forecasting - to determine the expected level of sales given the level of demand. With respec
Advertising expenditure, sales promotion etc.
Online panel - a group of individual who accepted to respond to marketing research online
Store audit - to measure the sales of a product or product line at a statistically selected
store sample in order to determine market share, or to determine whether a retail store
provides adequate service
Test marketing - a small-scale product launch used to determine the likely acceptance of
the product when it is introduced into a wider market
Exploratory research is conducted to explore a problem to get some basic idea about the
solution at the preliminary stages of research. It may serve as the input to conclusive research.
Exploratory research information is collected by focus group interviews, reviewing literature or
books, discussing with experts, etc. This is unstructured and qualitative in nature. If a secondary
source of data is unable to serve the purpose, a convenience sample of small size can be
collected. Conclusive research is conducted to draw some conclusion about the problem. It is
essentially, structured and quantitative research, and the output of this research is the input to
MIS.
Exploratory research is also conducted to simplify the findings of the conclusive or descriptive
research, if the findings are very hard to interpret for the marketing managers.
Marketing research methods
Methodologically, marketing research uses the following types of research designs:
Based on questioning:
Qualitative marketing research - generally used for exploratory purposes - small number
of respondents - not generalizable to the whole population - statistical significance and
confidence not calculated - examples include focus groups, in-depth interviews, and
projective techniques
Quantitative marketing research - generally used to draw conclusions - tests a specific
hypothesis - uses random sampling techniques so as to infer from the sample to the
population - involves a large number of respondents - examples include surveys and
questionnaires. Techniques include choice modelling, maximum difference preference
scaling, and covariance analysis.
Based on observations:
There are four key factors that make B2B market research special and different to consumer
markets:
The decision making unit is far more complex in B2B markets than in consumer markets
B2B products and their applications are more complex than consumer products
B2B marketers address a much smaller number of customers who are very much larger in
their consumption of products than is the case in consumer markets
Personal relationships are of critical importance in B2B markets.
Below some steps that could do by SME (Small Medium Entreprise) to analyze the market
Step 2.Analyze Macro & Micro Economic data (e.q. Supply & Demand, GDP,Price change,
Economic growth, Sales by sector/industries,interest rate, number of investment/ divestment, I/O,
CPI, Social anlysis,etc);
Step 3.Implement the marketing mix concept, which is consist of: Place, Price,
Product,Promotion, People, Process, Physical Evidence and also Political & social situation to
analyze global market situation);
Step 4.Analyze market trends, growth, market size, market share, market competition (e.q.SWOT
analysis, B/C Analysis,channel mapping identities of key channels, drivers of customers loyalty
and satisfaction, brand perception, satisfaction levels, current competitor-channel relationship
analysis, etc),etc.;
Step 5.Determine market segment, market target, market forecast and market position;
Step 6.Formulating market strategy & also investigating the possibility of partnership/
collaboration (e.q.Profiling & SWOT analysis of potential partners, evaluating business
partnership.)
Step 7.Combine those analysis with the SME's business plan/ business model analysis
(e.q.Business Description, Business process, Business Strategy ,Revenue model, Business
expansion, Return of Investment, Financial analysis (Company History, Financial assumption,
Cost/Benefit Analysis, Projected profit & Loss, Cashflow, Balance sheet & business Ratio,etc).
Note as important : Overall analysis is should be based on 6W+1H (What, When, Where, Which,
Who, Why and How)question.