Difference Between Market Research vs Marketing Research

Following image shows five important points of comparison used to find out the difference
between Market Research vs Marketing Research (MR).

Image credits Prof. Mudit Katyani.
Distinguish between market research and marketing research is based on following five points:
1. Meaning of market research and marketing research (MR).
2. Their prime or main objective.
3. Limited or wide scope.
4. Their relation or is a branch of.
5. Independent or not, narrow or broad term.
Now let's differentiate market research and marketing research (MR) on above points.
1. Meaning :
a. Market research collects data about market, market competition, market trends,
market demand and supply, etc. It finds out answers for the following questions:
What to sell?
Where to sell?
When to sell? and
How much to sell?
It also does sales forecasting. It estimates the demand for new products. It also fixes sales territories
and sales quotas.
b. Marketing research collects and analyses data for solving marketing problems. It
also aids in taking marketing decisions. It facilitates in controlling the marketing
activities. It is very systematic, scientific and objective.
2. Objective :
a. The main objective of market research is to:
Study the entire market, i.e. its nature, size, location, demand potential, etc.
Fix sales territories and sales quotas.
b. The main objective of marketing research (MR) is to:
Solve the marketing problems.
Find out present and future marketing opportunities.
3. Scope :
a. The scope of market research is limited. It only studies the market.
b. The scope of marketing research (MR) is very wide. It covers all areas of marketing.
It includes:
Product research,
Packaging research,
Pricing research,
Market research,
Sales research, etc.
It is used:
For solving marketing decision,
For taking marketing policies,
To select marketing channels, advertising agency, sales promotion
measures, etc.
4. Relation :
a. Market research is a branch of marketing research.
b. Marketing research is a branch of Marketing Information System (MIS).
5. Independent :
a. Market research is not independent. It is a narrow term.
b. Marketing research is independent. It is a very broad and wide term.
What is Marketing Research? Meaning


Marketing Research has two words, viz., marketing and research.
1. Marketing means buying and selling activities.
2. Research means a systematic and complete study of a problem. It is done by experts. It uses
scientific methods.
Thus, we can say, Marketing Research is a systematic method of collecting, recording and analyzing
of data, which is used to solve marketing problems.

Image credits A3sthetix.
A company faces many marketing problems. It faces problems about consumers, product, market
competition, sales promotion, etc. Marketing research helps to solve these problems.
Marketing research is a systematic process. It first collects data (information) about the marketing
problem. Secondly, it records this data. Then it analysis (studies) this data and draws conclusions
about it. After that, it gives suggestions (advice) for solving the marketing-problem.
So, marketing research helps to solve the marketing problems quickly, correctly and systematically.
Marketing research collects full information about consumers. It finds out the needs and
expectations of the consumers. So the company produces the goods according to the needs and
expectations of the consumers.
Marketing research helps the company to make its production and marketing policies. It helps the
company to introduce new products in the market. It helps to identify new-markets.
Marketing research also collects full information about the competitors. The company uses this
information to fight competition. It also helps the marketing manager to take decisions.
Marketing research is a special branch and soul of 'Marketing Management'. It is of recent origin and
widely used by manufacturers, exporters, distributors and service organisations.
Marketing research is very systematic, scientific, objective and organised. It has a wide scope. It
includes product research, consumer research, packaging research, pricing research, etc.
Marketing research is a continuous process. It has a few limitations. However, a company cannot
survive and succeed without it.


Definition of Marketing Research


There are many definitions of marketing research. Some important ones are:
1. According to American Marketing Association (AMA),
Marketing Research is the systematic gathering, recording and analysing of data about problems
relating to the marketing of goods and services.
2. According to Philip Kotler,
Marketing research is a systematic problem analysis, model building and fact finding for the
purpose of improved decision-making and control in the marketing of goods and services.
3. According to Paul Green and Donald Tull,
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.
4. According to David Luck, Donald Taylor and Hugh Wales,
Marketing Research is the application of scientific methods in the solution of marketing problems.
Read following articles to know more on the concept of marketing research:
1. Objectives of marketing research.
2. Functions of marketing research.
3. Need for marketing research.
4. Importance of marketing research.
5. Limitations of marketing research.
6. Distinguish between MIS and marketing research.


Features of Marketing Research


The salient characteristics or features of marketing research are as follows:
1. Wide and comprehensive scope - Marketing research has a very wide scope. It includes
product research, packaging research, pricing research, market research, sales research, etc.
It is used to solve marketing problems and to take marketing decisions. It is used to make
marketing policies. It is also used to introduce new products in the market and to identify
new markets. Marketing research is used to select channels of distribution, in advertising
strategy, for sales promotion measures, etc.
2. Systematic and scientific - Marketing research is conducted in a step-by-step manner. It is
conducted in an orderly fashion. Therefore, it is systematic. Marketing research uses
scientific methods. Thus, it is also scientific.
3. Science and art : A Science collects knowledge (data) while an Art uses this knowledge for
solving problems. Marketing research first collects data. It then uses this data for solving
marketing problems. Therefore, it is both, a Science and an Art.
4. Collects and analyzes data - Marketing research gathers data accurately and objectively. It
first collects reliable data and then analyses it systematically and critically.
5. Continuous and dynamic process - The company faces marketing problems throughout the
year. So, Marketing research is conducted continuously. It continuously collects up-to-date
data for solving the marketing problems. Large companies have their own marketing
research departments. They conduct Marketing research continuously throughout the year.
Therefore, Marketing research is a continuous process. It is a dynamic process because it
goes on changing. It does not remain static (the same). It uses new methods and techniques
for collecting, recording and analyzing the data.
6. Tool for decision-making - The marketing manager has to take many decisions. For this, he
requires a lot of data. Marketing research provides correct and up-to-date data to the
marketing manager. This helps him to take quick and correct decisions. Therefore, Marketing
research is an important tool for decision-making.
7. Benefits company and consumers - Marketing research is useful to the company in many
ways. It increases the sales and profits of the company. It helps the company to fight
competition and boost its goodwill in the market. It reduces the marketing risks. In short,
Marketing research brings success to the company. It also brings the company closer to the
consumers. It gives convenience and satisfaction to the consumers.
8. Similar to military intelligence - Marketing research is a commercial intelligence-gathering
activity. It works similar to military intelligence. Marketing intelligence first makes a
systematic study and only then takes a business action. Marketing research collects reliable
data about the consumers, the competitors, the market, etc. This data is then organised and
used for planning, decision-making and problem solving. This data is also further used for
introducing new products and services in the market.
9. Applied research - Applied research is used for solving problems. Marketing research is used
for solving marketing problems. Therefore, we can say that, Marketing research is also an
applied research. It has a practical value because it is used for solving present and future
problems.
10. Connected with MIS - Marketing research is a component of Marketing Information System
(MIS). Marketing research and MIS are interrelated. Both are used to solve marketing
problems and to take marketing decisions.
11. Reduces gap between producers and consumers - Marketing research informs producers
about the needs and wants of the consumers. The producers produce goods according to
the needs and demands of the consumers. This brings satisfaction to the consumers and in
return producers make good profits. So, Marketing research reduces the gap between the
producers and the consumers.
12. Uses different methods - Marketing research uses three methods for collecting data, viz.,
Survey Method, Experiment Method and Observation Method. All three methods are
scientific. The researcher has to use a suitable method for collecting a reliable data.
13. Has few limitations - Marketing research has few limitations too. It is not an exact science.
So, it does not give accurate results. It provides suggestions and not solutions. It is also a
costly and time-consuming process.
14. Accurate data collection and critical analysis - Marketing research gives much importance
to accurate data collection and its critical analysis. Thus, in a Marketing research, the data
must be first collected accurately. That is, collected data or gathered information must be
accurate, reliable and relevant. Later, this information must be systematically and critically
examined before making any decisions.
http://kalyan-city.blogspot.com/2011/07/what-is-marketing-research-meaning.html
Objectives of Marketing Research - Purposes
Post : Gaurav Akrani Date : 1/17/2013 11:26:00 PM IST
No Comments Labels : Marketing Research

Objectives of Marketing Research

The main objective of marketing research (MR) is to provide information to the marketing manager.
The marketing manager uses this information to make marketing decision and to solve marketing
problems.

The purposes or objectives of marketing research are listed below.
1. Identify the consumer response to the companys product.
2. Know the consumers needs and expectations.
3. Seek maximum information about the consumer, i.e. the know consumers income range,
their location, buying behavior, etc.
4. Know the nature and extent of competition and also the strength and weaknesses of the
competitors.
5. Check the reaction of the dealers to the company policies.
6. Evaluate the reputation of the company in the market.
7. Identify and solve the marketing problems of the company.
8. Search for new marketing opportunities.
9. Find out alternative uses of the existing products.
10. Estimate the cost of marketing of goods and service.
11. Help company to introduce new products in the market and improve its existing products.
12. Assist a company to select a suitable channel of distribution and test the effectiveness of this
distribution channel.
13. Facilitate company to select suitable sales promotion measures and test the effectiveness of
the sales promotion techniques.
14. Aids the company to select a suitable media for advertising and find out the overall impact
of advertising.
15. Help the marketing manager to decide about the quality of the product, product
modification, packaging, pricing, branding, etc.
16. Provide information to top level of management for making objective, policies, plans and
strategies.
17. Provide prerequisite information to forecast the marketing budget.
18. Supply up-to-date information about market trends, demand and supply position, etc.
19. Forecast the future sales and business conditions.
Marketing research is very useful to government, manufacturers, wholesalers, retailers, consumers
and to entire society.

Five Basic Functions of Marketing Research MR
Post : Gaurav Akrani Date : 1/17/2013 11:45:00 AM IST
No Comments Labels : Marketing Research

Functions of marketing research

The following image depicts five basic functions of marketing research.

Image credits Prof. Mudit Katyani.
The five main functions of marketing research (MR) are:
1. Description,
2. Evaluation,
3. Explanation,
4. Prediction, and
5. Aid in decision making.
Now let's discuss these prominent functions of marketing research.
1. Description : Marketing research gives full description about the consumers. It describes
their age, sex, education, income, etc. It also gives a description about the competitors and
the market situation. This description is used to take marketing decisions and
solve marketingproblems.
2. Evaluation : Marketing research helps to evaluate the company's performance. It helps to
evaluate the company's production and marketing policies. It finds out the customer
reaction to the quality of the product, price, packaging, advertising, sales, promotions'
techniques, etc. If the consumer reactions are bad, then the company must change its
policies. It also compares the company's policies with the competitors' policies.
3. Explanation : Marketing research gives explanations (answers) for all the marketing
problems. For example, it answers in detail, why are the sales falling, why are the retailers
giving negative reaction, etc. It gives all the causes or reasons for the problem. It also tells
how to solve the problem.
4. Prediction : Marketing research also gives predictions. Predictions mean to forecast or guess
about the future. It gives a prediction about the future sales, future market opportunities,
future risks, future marketing environment, future consumer behavior, etc. All the prediction
may not be correct. However, these predictions help the company to make future plans and
policies. It helps to take advantage of future opportunities. It also helps to avoid future risks.
5. Aid in decision making : Marketing research helps the marketing manager to take decisions.
It provides all the concerned data, which is necessary to take decisions. Decision making
means to select a course of action from two or more alternatives. Decision making requires
up-to-date and correct data. MR helps the marketing manager to take decisions. It provides
all the data, which is necessary to take decisions. It also provides alternative course of
action. It gives the merits and demerits of each course of action. It also helps the marketing
manager to choose the best course of action. It helps the marketing manager in all aspects
of distribution, selection of sales promotion techniques, selection of media for advertising,
etc. So, MR helps to take quick and correct marketing decisions. It also helps to implement
the marketing decisions.

Limitations of Marketing Research - Demerits of MR
Post : Gaurav Akrani Date : 1/16/2013 10:37:00 PM IST
No Comments Labels : Marketing Research

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.

Imgage credits Prof. Mudit Katyani.
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

Need For Marketing Research - Why is MR Needed?
Post : Gaurav Akrani Date : 1/17/2013 04:29:00 PM IST
Need For Marketing Research


In recent years, the scope of business has expanded from local to global level. The size of
the production has greatly increased. The production is now centralized, and the consumption
centers are widespread. This has created a wide gap between the manufacturer and consumer. This
has caused basic problems like what to produce and what to sell.
There is a need for marketing research to solve these problems.

There is a need for marketing research, to:
1. Collect latest data on demand and supply in the market.
2. Find out new market and create more demand for goods.
3. Analyze the extent of competition.
4. Find out the best technology for production, packaging, etc.
5. Fill information gap between producers and consumers.
6. Collect consumer-related data for decision making.
7. Supply latest and reliable data to decision makers.
8. Study changing consumer patterns.
Now lets discuss above points highlighting the need for marketing research.


1. Expansion of market


Due to development in means of transport and communication, market has expanded from local to
global level. The structure of market has also changed. There is a need for marketing research to
collect latest data on demand and supply in the market, extent of competition, etc. This data is used
to make production & marketing policies and strategies.


2. Large-scale production


Automation has helped to produce goods of standard quality on a large scale. There is a need for
marketing research to find out new market or to create more demands for these goods.


3. Increased competition


Competition is unavoidable in an open and globalized economy. It has endangered the survival and
growth prospects of many firms. There is a need for marketing research to analyze the extent of
competition. It also provides steps to fight competition.


4. Growth of science and technology


Increasing use of science and technology has helped to reduce the cost of production and improve
the quality of production. There is a need for marketing research to find out the best technology for
production, packaging, data, storing, etc.


5. Information gap
Due to centralized production and decentralized consumption, there is an information gap between
producer and consumer. This information gap can be filled by marketing research. Hence it is
needed.
6. Role of consumerism
Today, consumers are organised. They are aware of their rights and duties. They are now more
selective. They will not accept an inferior quality product.
Consumer research is needed to collect demographic and psychological data about consumers. This
data is used for decision making. There is a need for marketing research as consumer research is a
part of it.
7. Information needs
There is a need for marketing research to supply latest and reliable data to the decision makers. This
will improve the quality and success rate of decisions.
8. Consumer pattern
Consumers are now more quality conscious. They are willing to pay a higher price but for a better
quality. There is a need for marketing research to study the likes and dislikes, preferences and
interest of rural and urban consumers.

Explain Need and Importance of Marketing Research (MR)
Post : Gaurav Akrani Date : 1/17/2013 12:53:00 AM
Need and Importance of Marketing Research (MR)


A business faces many types of marketing problems. It faces problems about its product, price, place
and promotion. It also faces problems about product design, packaging, branding, marketing
channels, advertising, etc. Some marketing problems are very serious. Therefore, in the marketing,
managers use marketing research as an important tool to solve marketing problems.
The need and importance of marketing research are depicted below.

Marketing research helps company and decision makers as follows:
1. Marketing research (MR) provides valuable data.
2. It studies and provides data about consumer behavior.
3. It helps to select suitable sales promotional techniques.
4. It supplies market-related information.
5. It helps a company to evaluate its marketing performance.
6. It also has miscellaneous needs and importance.


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
companys 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 companys 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?

Distinguish Between MIS and Marketing Research (MR)
Distinguish Between MIS and Marketing Research (MR)


Following image depicts the ten main points which are used to make a comparison or distinction
between MIS and Marketing Research (MR).

Image credits Prof. Mudit Katyani.
Difference between MIS vs MR is based on the following ten points:
1. Meaning of MIS and MR.
2. Their basic or main purpose.
3. Wide or narrow scope.
4. General or specific nature.
5. Number of reports provided.
6. Future or past orientation.
7. Frequency of data collection.
8. Number of problems to solve.
9. Continuous or non-continuous operational method.
10. Based on use of computers or not.
Now let's distinguish MIS and Marketing Research (MR) on above points.
1. Meaning :
a. MIS means to collect, analyze and supply relevant marketing information to the
marketing managers. The marketing managers use this information for taking
effective marketing decisions. It is a permanent and continuous process.
b. Marketing Research (MR) is a systematic process of collecting and analyzing
information to solve a specific marketing problem.
2. Purpose :
a. The main purpose of MIS is to provide relevant information to marketing managers
and enable them to make effective marketing decisions.
b. However, the main purpose of Marketing Research (MR) is to solve a specific
marketing problem.
3. Scope :
a. The scope of MIS is wide. Marketing Research (MR) is one of its component. It is not
only used to solve problems but also helps to prevent problems in the future.
b. The scope of Marketing Research (MR) is narrow. It is one small part of MIS. It solves
a specific present marketing problem.
4. Nature :
a. MIS is more nonspecific or general in nature. It can solve many types of marketing
problems.
b. Marketing Research (MR) is more specific or particular in nature. At one time, it can
only solve a single type of marketing problem.
5. Reports :
a. MIS gives four types of reports namely, plan-reports, periodic-reports, triggered-
reports and demand reports.
b. Marketing Research (MR) provides only one report called as MR Report.
6. Orientation :
a. Orientation of MIS is more future-oriented when compared to MR.
b. However, the orientation of Marketing Research (MR) is more past and present one
when compared to MIS. It concentrates more on earlier and latest information. It
uses this information to solve a current marketing problem.
7. Problems :
a. MIS deals with and attempts to solve many different marketing problems at one
time. For this, it collects, stores, analyze and supply relevant market information to
the marketing managers.
b. Marketing Research (MR) only deals with a single marketing problem at one time. It
doesn't solve multiple marketing problems simultaneously.
8. Data :
a. In MIS, the data is collected more frequently, usually almost daily. This is a must for
every company.
b. In Marketing Research (MR), the data is not collected as frequently as MIS. It is
collected on a required basis.
9. Operation :
a. MIS is a permanent and continuous system. Here, the inflow of market information
never stops. Data is constantly collected and stored for further analysis. It is properly
analyzed, studied and well-organized before supplying to the marketing managers.
MIS has a starting but no ending point.
b. Marketing Research (MR) is not a continuous system. Here, data is collected only
when a company faces a specific marketing problem. It has a starting and ending
point.
10. Computers :
a. MIS is heavily based on the use of computers. Here, computing technologies are
widely used to ease and facilitate data collection, its storage, analysis, retrieval and
supply of relevant information to marketing managers of the company.
b. Unlike MIS, Marketing Research (MR) hardly makes use of computers. It uses
computers only for analyzing some information and is not entirely based on
computing technologies.


Twelve Steps in Marketing Research Process
Post : Gaurav Akrani Date : 8/16/2013 04:54:00 AM IST
Steps in marketing research process


Following image depicts the steps in a marketing research process.

Image credits Prof. Mudit Katyani.
The twelve stages or steps in a marketing research process are:
1. Problem identification,
2. Problem definition,
3. Research design,
4. Determining data needs,
5. Determining data sources,
6. Sampling design,
7. Designing questionnaire,
8. Field staff selection,
9. Collection and processing of data,
10. Analysis and interpretation of data,
11. Project reporting and
12. Follow up.
Now let's discuss above steps involved in a marketing research process.


1. Problem identification


The first step in a marketing research process is to identify the problem or opportunity. The problem
may be about decrease in sales, increase in competition, expansion of market, etc.


2. Problem definition


The second step in a marketing research process is to define the problem. In this stage, the
researcher must understand the problem correctly. He must find out the scope of the problem, the
type of information needed, etc. If the problem is not defined properly, then it will result in waste of
time, money and resources.


3. Research design


The third step in a marketing research process is to prepare research design.
Research design is a plan for conducting a research. It guides the researcher in data collection. It
gives proper direction to the research.
There are three types of research designs:
1. Exploratory research,
2. Descriptive Research and
3. Experimental Research.
All three types are used for marketing research.


4. Determining data needs


The fourth step in a marketing research process is to determine the data needs. The researcher must
consider the following issues:
1. Whether to use primary data or secondary data or both.
2. The accuracy and reliability of the data.
3. The availability of accurate and reliable data.
4. The cost and time required to collect the data.


5. Determining data sources


The fifth step in a marketing research process is to determine the data sources.
The researcher decides the sources of collecting data. The two main sources are secondary data and
primary data.
The researcher first collects secondary data. This is because it is easily available and less costly. It is
collected by Desk Research. Desk Research can be internal for e.g. collected from company's records
or external i.e. acquired from libraries, trade journals, government sources, etc. If the secondary
data is not sufficient to solve the marketing problem, then primary data is wheeled.
Collecting primary data is very costly and time consuming. It can be collected by using survey
methods, i.e. by doing personal interviews, telephone interviews and mail surveys. It can also be
collected by using observational method and experimentation method.
So in this step the researcher decides what source and what method to use for collecting data.


6. Sampling design


The sixth step in a marketing research process is of sampling design.
The Researchers has limited time and other resources. So he cannot contact the total population.
That is, he cannot collect information from all the people in the market. Therefore, he selects few
persons from the population. These handful persons are called sample respondent. They are
considered to represent the total population. The researcher collects data from the sample
respondents.
Sampling helps to save time, efforts and cost. It is used to collect primary data. The researcher has to
decide about method of sampling, the size-of-sample, etc.


7. Designing questionnaire


The seventh step in a marketing research process is of designing a questionnaire.
In this stage, primary data is collected with the help of a questionnaire. So the researcher has to
prepare a questionnaire. A questionnaire is a list of questions. These questions are asked to the
respondents for collecting data. The questionnaire must be suitable so that the require data is
collected easily, quickly and correctly. It is used for conducting person interview, telephone
interviews and mail survey. The researcher must decide about the type of the information required,
the type of questioned to be asked, the wordings of the questionnaire, its order, etc.


8. Field staff selection


The eighth step in a marketing research process is of selecting field staff.
After preparing the questionnaire, the researcher selects field interviewers. The field interviewers
collect information from the respondents. They must be property trained. Students of psychology
and statistics are good for this job.


9. Collection and processing of data


The ninth step in a marketing research process is of collection and processing of data.
In this stage, the data is collected from the respondents. The questionnaire is used for collecting
data. In case of mail surveys, the questionnaire is sent to the respondents by post. In case of
telephone interviews, the data is collected through telephone. In case of personal interviews, the
data is collected by the field interviewers. The researcher can also use observation method and
experimentation method for collecting data. The data collected must be reliable and complete. It
must also be collected quickly. Secondary data is also collected. The data collected is raw. It cannot
be used directly. It has to be processed and organised neatly. That is, the data must be edited,
coded, classified and tabulated. Editing helps to remove the unwanted data. Coding, classification
and tabulation make the data ready for analysis and interpretation.


10. Analysis and interpretation of data


The tenth step in a marketing research process is of analysis and interpretation of data.
In this stage, the researcher analyzes and interprets the data. That is, he studies the data very
careful and draws conclusions from it. These conclusions are then used to solve the marketing
problem.


11. Project reporting


The eleventh step in a marketing research process is to prepare a project report.
In this stage, the researcher prepares the final research report. This report contains a title of the
report, method used, findings, conclusions and suggestions about how to solve the marketing
problem. The language of the report must not be very difficult. The report must be submitted to the
marketing executives for recommendations and implementation.


12. Follow up


Finally, the last step in a marketing research process is to do a follow up.
In this stage, the marketing executive makes changes in the product, price, marketing policies, etc.
as per the recommendations of the report. Here, the researcher should find out, whether his
recommendations are implemented properly or not. He should also figure-out, whether the
marketing problem is solved or not.
So these are the twelve steps in a marketing research process.

Marketing Research MR Concept, Marketing Research Process
Post : Gaurav Akrani Date : 7/07/2010 08:18:00

1. Introduction to Marketing Research

The term marketing research is used extensively in modem marketing
management. It acts as a tool for accurate decision making as regards
marketing of goods and services. It is also useful for studying and solving
different marketing problems in a systematic and rational manner.
Research means detailed, systematic and comprehensive study of a problem.
Here, the details of the marketing problems are collected and studied,
conclusions are drawn and suggestions (recommendations) are made to solve
the problems quickly, correctly and systematically. In marketing research,
marketing problem is studied in depth and solutions are suggested to solve the
problem relating to consumers, product, market competition, sales promotion
and so on.

MR is a special branch of marketing management. It is comparatively recent in
origin. MR acts as an investigative arm of a marketing manager. It suggests
possible solutions on marketing problems for the consideration and selection
by a marketing manager.


2. Definitions of Marketing Research


1. According to American Marketing Association (AMA), MR is "The
systematic gathering, recording, and analyzing of data about problems
relating to the marketing of goods and services."
2. According to Richard D. Crisp, MR is "The systematic, objective and
exhaustive search for and study of the facts relevant to any problem in
the field of marketing."
3. According to Philip Kotler, "Marketing research is systematic problem
analysis, model building and fact-finding for the purpose of improved
decision-king and control in the marketing of goods and services."


3. Features of Marketing Research


1. Systematic and continuous activity/process : MR is a continuous
process. This is natural as new marketing problems are bound to come
from time-to-time in the course of marketing of goods and services. One
type of research is not adequate to resolve all marketing problems.
Similarly, new research projects will have to be undertaken to solve new
marketing problems and challenges.
2. Wide and comprehensive in scope : Marketing research is wide in scope
as it deals with all aspects of marketing of goods and services.
Introduction of new products, identification of potential markets,
selection of appropriate selling techniques, study of market competition
and consumer preferences, introduction of suitable advertising strategy
and sales promotion measures, are some areas covered by MR.
3. Emphasizes on accurate data collection and critical analysis : In
marketing research, suitable data should be collected objectively and
accurately. The data collected must be reliable. It should be analyzed in
a systematic manner. This will provide comprehensive picture of the
situation and possible solutions.
4. Offers benefits to the company and consumers : Marketing research is
useful to the sponsoring company. It raises the turnover and profit of
the company. It also raises the competitive capacity and creates goodwill
in the market. It enables a company to introduce consumer-oriented
marketing policies. Consumers also get agreeable goods and more
satisfaction due to marketing research activities.
5. Commercial equivalent of military intelligence : MR is a type of
commercial intelligence activity. It facilitates planned activities in the
field of marketing. It is similar to military intelligence where systematic
study of the situation is made before taking any military action.
Marketing research acts as the intelligence tool of management.
6. Tool for managerial decisions : MR acts as a tool in the hands of
management for identifying and analyzing marketing problems and
finding out solutions to them. It is an aid to decision-making. It suggests
possible solutions for the consideration and selection by managers.
Marketing research, is an aid to judgment and never a substitute for it.
7. An applied research : MR is applied knowledge. It is concerned with
specific marketing problem and suggests alternative solutions and
possible outcome of each alternative.
8. Reduces the gap between the producers and consumers : MR is an
essential supplement of competitive marketing. It is useful for
understanding the needs and expectations of consumers. It reduces the
gap between producers and consumers and adjusts the marketing
activities to suit the needs of consumers.
9. Marketing research has limitations : Marketing research is not an exact
science. It only suggests possible solutions to marketing manager for
consideration and selection.
10. Use of different methods : MR can be conducted by using different
methods. Data can be collected through survey or by other methods.
The researcher has to decide the method which is suitable for the
conduct of research project. This selection is important as the quality of
research work depends on the method used for the research purpose.


4. Steps In Marketing Research Process


1. Identifying and defining a marketing problem : The first step in the
marketing research procedure is to identify the marketing problem
which needs to be solved quickly. The problem may be related to
product, price, market competition, sales promotion and so on. The
research process will start only when the marketing problem is identified
and defined clearly. The researcher has to identify and define the
marketing problem in a clear manner.
2. Conducting a preliminary exploration (survey) : The marketing team
may suggest many marketing problems which they face. However, it is
not possible to take up all such problems for research purpose. The
researcher has to study such problems and select one major problem
which is suitable for detailed investigation. For this, preliminary
investigation is necessary. A sales manager may suggest a problem of
declining sales. The researcher has to find out the possible reasons and
which one is the most important and also suitable for detailed study.
Marketing problems are not researchable and hence such preliminary
exploration is necessary and useful.
3. Determining research objectives : The researcher has to formulate
hypothesis to fit the problem under investigation. It is a tentative
explanation of a problem under study. For example, the sales are
declining. According to the researcher, this may be due to poor quality
and high price or due to limited interest taken by middlemen or that the
product has become outdated. If the first reason is accepted, the same
will be investigated in full. If the first cause is rejected, he will move to
the second for detailed study through data collection.
4. Determining the data required and their sources : In this stage, the
researcher has to decide the type of data required for his study purpose.
The hypothesis guides the data collection process. The researcher can
use primary and/or secondary data for his research project. The sources
of primary and secondary data are different. Similarly, for the collection
of primary data, any one method such as mail survey or telephone
survey, or personal interview or observation or experimentation method
can be used. The researcher has to decide the method which is
convenient for data collection and collect the required data accordingly.
5. Creating research design : Research design is the plan for the conduct of
actual research investigation. Such design provides guideline for the
researcher to keep a track on his actions and to know that he is moving
in the right direction on data collection.
The research design contains answers to the following questions:
i. What is the nature and purpose of study?
ii. What type of data is required?
iii. How to collect required data?
iv. What is the technique of data collection?
v. How much funds will be required?
vi. How much time/period will be required for completion of
research project?
6. Designing the Questionnaire : As per the objective of research project,
information will be required. For collection of data, suitable
questionnaire will have to be prepared. All necessary care should be
taken in order to prepare ideal questionnaire, so as to collect required
information easily, quickly and correctly.
7. Designing a sample of respondents : For data collection, a
representative group will have to be selected out of the total i.e.
universe. A sample designed should be adequately representative in
character. It must represent the total population under study.
8. Collecting Data : Data are to be collected as per the method selected for
data collection. If mail survey method is selected, questionnaires will be
sent by post to respondents. If personal interview method is selected,
interviewers will be given suitable guidance, information and training for
the conduct of personal interview. Data collection should be quick and
data collected should be reliable, adequate and complete in all respects.
9. Organising/Processing the data collected : The completed
questionnaires are not useful directly for tabulation and drawing
conclusions. They need to be organised /processed properly for drawing
conclusions. For this, scrutiny of data, editing, coding and classification
of data are required. In addition, tabulation of data collected is also
essential. Such processing make data integrated in a compact manner. In
addition, the data are made reliable and suitably arranged for analysis
and interpretation. Conclusions can be drawn only when the collected
data are arranged in an orderly manner for detailed study. In short,
processing of data means verification of data collected and the orderly
arrangement of data for analysis and interpretation. The steps in data
processing (editing, coding, etc.) are interrelated and need to be
completed properly. The processing of data collected is a type of office
work which can be attended by the office staff under the guidance of
researcher. The processing of data is a lengthy and time-consuming
activity and needs to be completed property. This is necessary for raising
accuracy and reliability of the whole research project.
The processing of data collected through marketing research involves
the following steps:
a. Preliminary screening of the data collected,
b. Editing of the data collected,
c. Coding of the data collected,
d. Classification of data into meaningful categories, and
e. Tabulation of data for easy and quick analysis and interpretation.
10. Analyzing and interpreting data : Tabulated data can be used for
detailed and critical analysis. The purpose is to establish useful and
logical relation between the information and problem. Analysis of data
should be made in a rational manner. This facilitates interpretation of
data in an orderly manner. Conclusions can be drawn after the analysis
and interpretation of data. Such conclusions are useful for suggesting
remedial measures. Various statistical techniques are used for the
analysis and interpretation of data. This is necessary so that the
conclusions drawn will be accurate and remedial measures
recommended will be appropriate or result-oriented.
In brief, processing of data collected is one important and critical stage
in the research process. The utility of the whole research process
depends upon the manner in which the data are processed by the
researchers. The services of experts should be used for such processing
of data. Similarly, advanced statistical techniques should be used in the
analysis and interpretation of data so that the conclusions drawn will be
accurate and useful for the introduction of appropriate remedial
measures. Processing of data is like examining patient by a doctor. Here,
if the diagnosis is accurate, the follow-up treatment (remedial measures)
will be appropriate and the patient will be all right within a short period.
The same rule is applicable to processing of data in the marketing
research activity/process.
11. Preparing research report : After drawing conclusions, the researcher
can make concert suggestions/recommendations for solving the
marketing problem in a satisfactory manner. A researcher also prepares
a document giving details of research problem, data collected,
conclusions drawn and the recommendations made. Such document is
called research report which is the final outcome of lengthy research
process. The report will be prepared in a suitable format for the
convenience of readers. It acts as a self-explanatory document.
12. Presenting research report : The researcher will submit the report to the
decision-makers in the field of marketing. The decision-makers will study
the report minutely and find out the desirability of execution of the
recommendations made. The final decision is to be taken by the
decision-makers (marketing managers and top level management) only.
13. Follow-up steps : If the recommendations made are accepted, the
decision-makers have to take follow-up steps for the execution of the
recommendations made. The follow-up steps should be controlled
effectively so as to have positive results in the cause of time.
The steps in the MR process (as noted above) are normally used in all MR
projects. Certain modifications are also possible in a specific research project.
The research process is lengthy and time consuming and needs to be
completed in a rational and systematic manner. This gives promising results in
the sense that appropriate solution to marketing problem is available.
The researcher has to follow this lengthy MR procedure carefully. He has to
take various decisions while conducting the research work. The research
project may be conducted by an outside consultancy firm or an advertising
agency. Sometimes, the research work is conducted internally i.e. through the
marketing research department or sales department. Here, the research
department takes up the major marketing problem (e.g. declining sales or
profits of the company) and organise the research project in order to find out
the causes (e.g. causes for declining sales or profit) and appropriate remedial
measures. A sales manager may be asked to organise the research project for
dealing with the problem of declining sales. Here, he has to organise the whole
research project and finalize the details of different steps involved.


5. Advantages of Marketing Research


1. Indicates current market trends : Marketing research keeps business
unit in touch with the latest market trends and offers guidance for facing
market situation with confidence. It facilitates production as per
consumer demand and preferences.
2. Pinpoints deficiencies in marketing policies : MR pinpoints the
deficiencies as regards products, pricing, promotion, etc. It gives proper
guidance regarding different aspects of marketing. They include product
development, branding, packaging and advertising.
3. Explains customer resistance : MR is useful for finding out customer
resistance to company's products. Suitable remedial measures are also
suggested by the researcher to deal with the situation. This makes the
products agreeable to the consumers.
4. Suggests sales promotion techniques : Marketing research enables a
manufacturer to introduce appropriate sales promotion techniques,
select most convenient channel of distribution, suitable pricing policy for
the products and provision of discounts and concessions to dealers. It
facilitates sales promotion.
5. Guidance to marketing executives : Marketing research offers
information and guidance to marketing executives while framing
marketing policies. Continuous research enables a company to face
adverse marketing situation boldly. It acts as an insurance against
possible changes in market environment.
6. Selection and training of sales force : Marketing research is useful for
the selection and training of staff in the sales Organisation. It suggests
the incentives which should be offered for motivation of employees
concerned with marketing.
7. Facilitates business expansion : Marketing research enables a business
unit to grow and expand its activities. It creates goodwill in the market
and also enables a business unit to earn high profits through consumer-
oriented marketing policies and programmes.
8. Facilitates appraisal of marketing policies : Research activities enable
marketing executives to have an appraisal of the present marketing
policies in the fight of research findings. Suitable adjustments in the
policies are also possible as per the suggestions made.
9. Suggests marketing opportunities : Marketing research suggests new
marketing opportunities and the manner in which they can be exploited
fully. It identifies existing and emerging market opportunities.
10. Facilitates inventory study : Marketing research is useful for the
evaluation of company's inventory policies and also for the introduction
of more efficient ways of managing inventories including finished goods
and raw materials.
11. Provides marketing information : MR provides information on various
aspects of marketing. It suggests relative strengths and weaknesses of
the company. On the basis of such information, marketing executives
find it easy to frame policies for the future period. MR provides
information, guidance and alternative solutions to marketing problems.
12. Suggests distribution channels : Marketing research can be used to
study the effectiveness of existing channels of distribution and the need
of making suitable changes in the distribution system.
13. Creates progressive outlook : Marketing research generates a
progressive and dynamic outlook throughout the business Organisation.
It promotes systematic thinking and a sense of professionalisation within
the company. It also creates enthusiasm among executives concerned
with marketing. This brings success and stability to the whole business
unit.
14. Social significance : Marketing research is of paramount importance
from the social angle. It acts as a means by which the ultimate consumer
literally becomes king of the market place.
6. Limitations of Marketing Research


1. Offers suggestions and not decisions : Marketing research is not a
substitute for decision-making process. Ready-made decisions on
marketing problems are not provided by the researcher. Marketing
research does not solve any marketing problems directly. It only aids
management in decision-making and problem solving process.
2. Fails to predict accurately : In marketing research, efforts are made to
predict the possible future situation. For this, certain research studies
are undertaken. However, the predictions arrived at may not be perfect.
Future is always uncertain and exact prediction about the future is just
not possible through marketing research.
3. Cannot study all marketing problems : Marketing research cannot study
all marketing problems particularly where it is difficult to collect relevant
data. Similarly, research study is not possible where value judgments are
involved. Thus, all marketing problems are not researchable and all
research problems are not answerable. MR is not a 'panacea'.
4. Resistance to research by marketing executives : Researchers study
marketing problems and offer guidance to marketing executives in their
decision-making process. However, some executives are reluctant to use
the solutions suggested by the researchers. They feel that such use will
act as a threat to their personal status. Marketing executives also feel
that researchers give solutions which are academic in character and lack
practical utility.
5. Time-consuming activity : MR is a time-consuming activity. The research
work takes longer period for completion and the findings when available
may prove to be outdated. Even data collected very soon become old
due to fast changing market environment.
6. Costly/expensive activity : MR activity is costly as research work
requires the services of experts. Advanced training in economics,
computer technology, sociology, etc. is also necessary on the part of
research staff. Even giving responsibility of research work to an
advertising agency or to a management consultant is costly.
7. Dearth of qualified staff : For scientific MR, professional marketing
researchers with proper qualifications, experience and maturity are
required. Research work is likely to be incomplete /unreliable in the
absence of such expert staff.
8. Complexity of the subject : MR fails to give complete and correct
guidance to the management on marketing issues. This is because MR is
not an exact science. It is concerned with the study of human behavior
which is always difficult to predict. As a result, the conclusions drawn
and recommendations made are not cent per cent correct.
9. Uncertainty of conclusions : Consumer is the focal point in marketing
research. However, consumer's buying motives are difficult to judge
precisely and accurately. This brings some sort of uncertainty in the
conclusions drawn from the MR.
10. Limitations of data used : MR process solely depends on the data
collected and used for analyzing the marketing problem, for drawing
conclusions and making recommendations. However, the whole process
will come in danger if data collected are inadequate and unreliable.
11. Limited practical utility : MR is mainly an academic exercise.
Researchers take more interest in research work rather than in supplying
information and guidance to marketing managers in decision-making
process. Many research reports are rather bulky and unintelligible. This
brings down the practical utility of marketing research.
12. Miscellaneous Limitations :
1. Problems developed due to changing marketing environment
cannot be solved quickly through MR.
2. Research report may be bulky, technically worded and difficult. Its
execution is difficult at lower levels.
The limitations of marketing research (noted above) do not suggest that it is a
redundant activity. It only suggests that the marketing research activity should
be conducted with proper care and caution. This will make research activity
meaningful and result-oriented.


7. Importance of Marketing Research


Marketing research is fast growing in its importance due to increasing
competition, fast moving technological developments and changing consumer
needs, expectations and attitudes. The importance of marketing research is
universally accepted. The status of marketing research in business
management is identical to the position of brain in a human body.
The following points suggest the importance of marketing research:-
1. Planning and execution of marketing plan : A business unit can plan and
execute all activities right from manufacturing to marketing with
reasonable accuracy and confidence due to the guidelines available
through marketing research.
2. Quick and correct decision-making : MR facilitates quick and correct
decision-making by marketing managers. It enables management to take
quick and correct marketing decisions.
3. Effective solutions on marketing problems : MR provides effective
solutions to marketing problems. MR is the radiology and pathology of
marketing operations of business. It diagnoses the business ailments and
suggests measures to remove them. Marketing researcher acts like
business doctor and prescribes treatment for business elements.
4. Huge spending on MR : Large companies spend crores (1 Crore = 10
million) of rupees on marketing research activities. New techniques and
methods are used in the conduct of research activities in an accurate
manner. This suggests the growing importance of MR.