In this part, we define and classify marketing research and set out a six-step marketing research process. We discuss the nature and scope of marketing research and explain its role in decision support system.

1. DEFINITION,
NATURE, SCOPE
MARKETING RESEARCH

2. MARKETING
 Planning and Execution regarding the 4Ps.
 Creating Exchange
 Satisfying consumer needs as well as
organizational objectives.

3. RESEARCH
 “Creative and systematic work undertaken
to increase the stock of knowledge, including
knowledge of humans, culture and society,
and the use of this stock of knowledge to
devise new applications.“
 It is used to establish or confirm facts,
reaffirm the results of previous work, solve
new or existing problems, support theorems,
or develop new theories.

4. ACRONYMS
 R ecognition of information needs
 E ffective decision making
 S ystematic and Objective
 E xude or disseminate information
 A nalysis of information
 R ecommendations of action
 C ollection of information
 H elpful to managers

5. MARKETING RESEARCH
 To obtain information about the
preferences, opinions, habits, trends, and
plans of potential customers.
 The systematic gathering, recording, and
analysis of data about issues relating to
marketing products and services.

6. It is a technique to know:
 Who are customers of our products or services?
 Where do they live?
 When and how do they buy the product and services?
 Are customers of our products satisfied with the
products?
 Who are our main competitors in the market?
 Are the company’s products inferior or superior to
competitors’ products?
 What policies and strategies are they following?

7. NEED OF MARKETING RESEARCH
 To undertake marketing effectively
 Changes in technology
 Changes in consumer tastes
 Market demand
 Changes in the product ranges of competitors
 Changes in economic conditions
 Distribution channels

8. Marketing research is related to………………
a) Finance process
b) Marketing Process
c) Business Process
d) None of the above
Marketing research is the function that links the ___________ to the marketer
through information---information used to identify and define marketing
opportunities and problems; to generate, refine and evaluate marketing actions; to
monitor marketing performance; and to improve understanding of the marketing
process.
a) Marketer, agent and retailer
b) Demander, buyer and user
c) Specifier, influencer and user
d) Consumer, customer and public
________ is the systematic design, collection, analysis, and reporting of data
relevant to a specific marketing situation facing an organization.
a) The marketing information system
b) Marketing intelligence
c) Marketing research
d) Competitive intelligence
Brush
up Time

10. PROBLEM-SOLVING RESEARCH
Segmentation
Research
1. Determine the basis of
segmentation
2. Establish market
potential and
responsiveness for
various segments
3. Select target markets
4. Create lifestyle profiles:
demography, media,
and product image
characteristics
Product Research
1. Test concept
2. Determine optimal
product design
3. Package tests
4. Product modification
5. Brand positioning and
repositioning
6. Test marketing
7. Control store tests

11. PROBLEM-SOLVING RESEARCH
 Pricing Research
1. Pricing policies
2. Importance of price in
brand selection
3. Product line pricing
4. Price elasticity of demand
5. Initiating and responding
to price changes
 Promotional Research
1. Optimal promotional
budget
2. Sales promotion
relationship
3. Optimal promotional mix
4. Copy decisions
5. Media decisions
6. Creative advertising
testing
7. Evaluation of advertising
effectiveness

12. PROBLEM-SOLVING RESEARCH
Distribution Research
1. Types of distribution
2. Attitudes of channel members
3. Intensity of wholesale & retail coverage
4. Channel margins
5. Location of retail and wholesale outlets

13. 6 -Steps Process
1. Definition of the problem being studied
upon.
2. Determining what approach to take,
3. Formulation of research design,
4. Field work entailed,
5. Data preparation and analysis,
6. Generation of reports, how to present these
reports.

15. NATURE / CHARACTERISTICS
 Marketing research has a wide scope
 Systematic, scientific and objective
 Continuous and dynamic process
 Tool for decision making
 Benefits to the company and consumers
 Similar to military intelligence
 Applied research
 Closely connected with marketing information system (MIS)
 Reduces the gap between producers and consumers
 Use different methods
 Limitations
 Importance to accurate data collection & critical analysis

16. 7 CHARACTERISTICS OF A GOOD
MARKETING RESEARCH
1. Scientific Method : Research should use principles of scientific
methods ;careful observation, formulation of hypothesis, prediction
and testing
2. Research Creativity : Research should develop innovative ways
to solve a problem
3. Multiple Methods : Try to use 2 or 3 methods for getting more
confidence and more accurate result
4. Interdependence of models and data : Researchers recognize
that data are interpreted from underlying models that guide the
type of information sought
5. Value and Cost of Information : Estimation of cost and value, it
is easier to determine cost but value is harder, it depends on the
reliability and validity of information
6. Healthy Skepticism : Researcher shows a healthy skepticism
towards glib assumptions made by managers
7. Ethical Marketing : Marketing research benefits both the
sponsoring company and its customers

17. SCOPE

18. PURPOSE OF MARKETING RESEARCH
 The purpose of marketing research (MR) is to provide
management with relevant, accurate, reliable, valid, and
up to date market information.
 Gain a more detailed understanding of
consumers’ needs: e.g., views on products’ prices,
packaging, recent advertising campaigns
 Reduce the risk of product/business failure:
a. There is no guarantee that any new idea will be a
commercial success
b. Can help to achieve commercial success
 Forecast future trends:
a. It can also be used to anticipate future customer needs

19. OBJECTIVE OF MARKETING RESEARCH
1. Minimizing Cost
2. Controlling
3. Formulation of policies
4. Cover the business risk
5. Guiding the manufacturers
6. To know the demographics and psychographics of
customer
7. To find out the impact of promotional efforts
8. To know customer response to a new product
9. To forecast sale
10. To anticipate competitive moves

20. STRUCTURE OF MARKETING RESEARCH
INDUSTRY
Clients
Marketers
Media
Retailers/
Wholesalers
Govt./
University
Suppliers
Syndicated
Research
Custom
Research
Limited
Function
Data Analysis
Suppliers
Service Firms
Field Service
Firms
Sampling firms

22. Careers in Marketing Research
 Career opportunities are available with marketing
research firms (e.g., AC Nielsen, Burke, Inc., M/A/R/C)
 Careers in business and non-business firms and
agencies with in-house marketing research
departments (e.g., Procter & Gamble, Coca-Cola, AT & T,
the Federal Trade Commission, United States Census Bureau)
 Advertising agencies (e.g., BBDO International, Ogilvy &
Mather, J. Walter Thompson, Young & Rubicam)
 Positions: vice president of marketing research, research
director, assistant director of research, project manager, field
work director, statistician/data processing specialist, senior
analyst, analyst, junior analyst, and operational supervisor.

24. ADVANTAGES OF MARKETING RESEARCH
1. Indicates current market trends
2. Pinpoints deficiencies in marketing policies
3. Explains customer resistance
4. Suggests sales promotion techniques
5. Guidance to marketing executives
6. Selection and training of sales force
7. Facilitates business expansion
8. Suggests marketing opportunities
9. Suggests distribution channels
10. Provides marketing information

25. LIMITATIONS OF MARKETING RESEARCH
1. Offers suggestions and not decisions
2. Fails to predict accurately
3. Cannot study all marketing problems
4. Time-consuming activity
5. Costly/expensive activity
6. Dearth of qualified staff
7. Limitations of data used
8. Vague Result

26. Brush up time
Q. Which of the following are the Benefits of Market
Research?
a) Tapping Opportunities
b) Encouraging Communication
c) Minimization of the risks
d) Find out possible problems
e) All the above

27. Brush up time
Q. Select the mistakes to avoid when doing market
research:
a) Doing only primary market research or secondary
market research
b) Using only the web for research
c) Limited Vision
d) Not being able to identify your target audience
e) Not giving consumers an incentive to communicate
with you
f) A, B & C only
g) All the Above

28. Marketing Information System (MKIS)
 A marketing information system is a management
information system (MIS) designed to support
marketing decision making.
 Jobber defines it as a "system in which marketing
data is formally gathered, stored, analyzed and
distributed to managers in accordance with their
informational needs on a regular basis.

30. Decision Support System (DSS)
 A decision support system is an information
system that supports business or organizational
decision-making activities.