MARKETING RESEARCH


Marketing Research

According to American Marketing Association, “Marketing Research is the function that links the consumer, customer and public to the marketer through information-information used to identify and define marketing opportunities and problems, generate, refine and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process.”
Marketing Research is systematic problem analysis, model building and fact finding for the purpose of important decision making and control in the marketing of goods and services.
Marketing Research is a well-planned, systematic process which implies that it needs planning at all the stages. It uses scientific method. It is an objective process as it attempts to provide accurate authentic information. Marketing Research is sometimes defined as the application of scientific method in the solution of marketing problems.Marketing Research plays a very significant role in identifying the needs of customers and meeting them in best possible way. The main task of Marketing Research is systematic gathering and analysis of information.
Before we proceed further, it is essential to clarify the relationship and difference between Marketing Research and Marketing Information System (MIS). Whatever information are generated by Marketing Research from internal sources, external sources, marketing intelligence agencies-consist the part of MIS.
MIS is a set of formalized procedures for generating, analyzing, storing and distributing information to marketing decision makers on an ongoing basis.
  1. While Marketing Research is done with a specific purpose in mind with information being generated when it is conducted, MIS information is generated continuously.
  2. MIS is continuous entity while Marketing Research is a ad-hoc system.
  3. While in Marketing Research information is for specific purpose, so it is not rigid; in MIS information is more rigid and structured.
Marketing Research is essential for strategic market planning and decision making. It helps a firm in identifying what are the market opportunities and constraints, in developing and implementing market strategies, and in evaluating the effectiveness of marketing plans.
Marketing Research is a growing and widely used business activity as the sellers need to know more about their final consumers but are generally widely separated from those consumers. Marketing Research is a necessary link between marketing decision makers and the markets in which they operate.
Marketing Research includes various important principles for generating information which is useful to managers. These principles relate to the timeliness and importance of data, the significance of defining objectives cautiously and clearly, and the need to avoid conducting research to support decisions already made.
Marketing Research is of use to the following:-
  1. Producers
    1. To know about his product potential in the market vis-à-vis the total product;
    2. New Products;
    3. Various brands;
    4. Pricing;
    5. Market Structures and selection of product strategy, etc.
  2. Business and Government
    Marketing Research helps businesses and government in focusing attention on the complex nature of problems faced by them. For example:
    1. Determination of Gross National Product; Price indices, and per capita income;
    2. Expenditure levels and budgeting;
    3. Agricultural Pricing;
    4. The economic policies of Government; and
    5. Operational and planning problems of business and industry.
  3. Market Research Agencies
    Marketing Research is being used extensively by professionals to help conducting various studies in Marketing Research. Most prominent agencies being:-
    1. Linta India Ltd;
    2. British Market Research Bureau (BMRB);
    3. Hindustan Thompson Associate Ltd;
    4. eSurveysPro.com.
    5. MARG

Data Collection in Marketing Research

Data Collection in Marketing Research is a detailed process in which a planned search for all relevant data is made by researcher.
Types of Data
  1. Primary Data- Primary data is the data which is collected first hand specially for the purpose of study. It is collected for addressing the problem at hand. Thus, primary data is original data collected by researcher first hand.
  2. Secondary data- Secondary data is the data that have been already collected by and readily available from other sources. Such data are cheaper and more quickly obtainable than the primary data and also may be available when primary data can not be obtained at all.
    Data Collection Methods
    1. Qualitative Research- Qualitative Research is generally undertaken to develop an initial understanding of the problem. It is non statistical in nature. It uses an inductive method, that is, data relevant to some topics are collected and grouped into appropriate meaningful categories. The explanations are emerged from the data itself. It is used in exploratory research design and descriptive research also. Qualitative data comes into a variety of forms like interview transcripts; documents, diaries and notes made while observing. There are two main methods for collecting Qualitative data
      1. Direct Collection Method-When the data is collected directly, it makes use of disguised method. Purpose of data collection is not known. This method makes use of-
        1. Focus Groups
        2. Depth Interview
        3. Case Study
      2. Indirect Collection-Method
        1. Projective Techniques
    2. Quantitative Research- Quantitative Research quantifies the data and generalizes the results from the sample to the population. In Quantitative Research, data can be colleted by two methods
      1. Survey Method
      2. Observation Method

Techniques 

Focus Groups

Focus groups are also known as group interviews or group discussions. They are used to understand the attitude or behaviour of the audience. Six to twelve individuals are selected and either one or two moderators (those who lead the discussions) are selected. If there are two moderators, they will adopt opposite positions. It is the moderator who introduces the topic. Discussion is controlled through these moderators. The group is watched from adjacent rooms. There are various devices which are used to record these discussions.
Objectives of Focus Group
  1. To gather primary information for research project;
  2. To help developing questionnaires in terms of survey research;
  3. To understand reason behind a particular phenomenon:
  4. To see how people interpret certain phenomenon;
  5. To test primarily ideas or plan
Steps involved in conducting Focus group
  1. Define the problem
  2. Select a sample
  3. Determine the number of groups necessary(minimum number should be two)
  4. Prepare the study mechanics. Arrange the respondents place where the focus group is to be assembled.
  5. Select moderators and brief them.
  6. Prepare the focus group material.
  7. Conduct the session.
  8. Analyze the data and prepare summary report.
Advantages of Focus Group
  1. It is used to collect primary information and therefore it can conduct a pilot study also.
  2. Relative cost is not much.
  3. It can be conducted quickly.
  4. It has flexibility.
  5. Moderator can detect the opinion and certificates of those who cannot speak well by facial expression and other non verbal behaviour.
  6. We can get the questionnaire filled up either before or after the discussion.
Disadvantages of Focus Group
  1. It is inappropriate for gathering quantitative data.
  2. Self appointed group leader may impose his /her opinion on other members. Moderators can restrict people.
  3. t depends heavily on skills of moderator.
  4. Respondents in the focus group may or may not represent the population from which they are drawn.
  5. Recording equipments are likely to restrict respondents. Location of recording equipment is very important.

Depth Interview

They generally use small samples and also conduct direct one to one personal interviews. A detailed background is provided by the respondents and elaborate data concerning the respondents opinions, values, motivation, expression, feeling etc are obtained. Even their non-verbal expressions are observed. They take long time, therefore lengthy observations are involved.
These are conducted to customize individual responses. The questions will depend on what kind of answers are given. Even interview climate influences the respondents. The success of interviews depends on the rapport of the interviewers established with the respondents.
Advantages of Depth Interview
  1. Lot of detail is provided.
  2. Information obtained is comparatively more accurate.
  3. Personal or intimate topic can also be discussed since the personal rapport is established between the respondent and the interviewer
Disadvantages of Depth Interview
  1. It is difficult to generalize since the interviewers are non-standardized
  2. Since the success depends on the interviewer, there are chances of bias.
  3. Data analysis takes a lot of time.

Projective Techniques

Projective Techniques are indirect and unstructured methods of investigation which have been developed by the psychologists and use projection of respondents for inferring about underline motives, urges or intentions which cannot be secure through direct questioning as the respondent either resists to reveal them or is unable to figure out himself. These techniques are useful in giving respondents opportunities to express their attitudes without personal embarrassment. These techniques helps the respondents to project his own attitude and feelings unconsciously on the subject under study. Thus Projective Techniques play a important role in motivational researches or in attitude surveys.
Important Projective Techniques
  1. Word Association Test.
  2. Completion Test.
  3. Construction Techniques
  4. Expression Techniques
  1. Word Association Test: An individual is given a clue or hint and asked to respond to the first thing that comes to mind. The association can take the shape of a picture or a word. There can be many interpretations of the same thing. A list of words is given and you don’t know in which word they are most interested. The interviewer records the responses which reveal the inner feeling of the respondents. The frequency with which any word is given a response and the amount of time that elapses before the response is given are important for the researcher. For eg: Out of 50 respondents 20 people associate the word “ Fair” with “Complexion”.
  2. Completion Test: In this the respondents are asked to complete an incomplete sentence or story. The completion will reflect their attitude and state of mind.
  3. Construction Test: This is more or less like completion test. They can give you a picture and you are asked to write a story about it. The initial structure is limited and not detailed like the completion test. For eg: 2 cartoons are given and a dialogue is to written.
  4. Expression Techniques: In this the people are asked to express the feeling or attitude of other people.
Disadvantages of Projective Techniques
  1. Highly trained interviewers and skilled interpreters are needed.
  2. Interpreters bias can be there.
  3. It is a costly method.
  4. The respondent selected may not be representative of the entire population.

Survey Method

The Survey method is the technique of gathering data by asking questions to people who are thought to have desired information. A formal list of questionnaire is prepared. Generally a non disguised approach is used. The respondents are asked questions on their demographic interest opinion.
Advantages of Survey Method
  1. As compared to other methods (direct observation, experimentation) survey yield a broader range of information. Surveys are effective to produce information on socio-economic characteristics, attitudes, opinions, motives etc and to gather information for planning product features, advertising media, sales promotion, channels of distribution and other marketing variables.
  2. Questioning is usually faster and cheaper that Observation.
  3. Questions are simple to administer.
  4. Data is reliable
  5. The variability of results is reduced.
  6. It is relatively simple to analyze, quote and interrelate the data obtained by survey method
Disadvantages of Survey Method
  1. Unwillingness of respondents to provide information- This requires salesmanship on the part of the interviewer. The interviewer may assure that the information will be kept secret or apply the technique of offering some presents.
  2. Inability of the respondents to provide information- This may be due to
    1. Lack of knowledge
    2. Lapse of memory
    3. Inability to identify their motives and provide “reasons why?” for their actions
  3. Human Biases of the respondents are there, for eg: “Ego”
  4. Symantec difficulties are there - it is difficult, if not impossible, to state a given question in such a way that it will mean exactly same thing to each respondent. Similarly two different wordings of the same question will frequently produce quite different results.
How to overcome the limitations of Survey Method
  1. Careful framing and phrasing of questions.
  2. Careful control of data gathering by employing specially trained investigators who will observe carefully report on subtle reactions of persons interviewed
  3. Cautious interpretations by a clear recognition of the limitations of the data and understating of what exactly the data represents. This is especially true of responses to questions like - “What price would you be willing to pay for this product?”
  4. Looking at facts in relative rather than absolute terms. For eg - A survey by a dentist team showed that the number of families in the middle income group used toothpaste taken by itself in the absolute sense, the results of the survey are in some doubt. Even though the individual group readings shall differ say for eg: for upper income group families it could be 90 %. Hence we should look at the facts in relative rather than in absolute terms

Techniques of Survey Method

There are mainly 4 methods by which we can collect data through the Survey Method
  1. Telephonic Interview
  2. Personal Interview
  3. Mail Interview
  4. Electronic Interview

  1. Telephonic Interview

    2. Telephone Interviewing stands out as the best method for gathering quickly needed information. Responses are collected from the respondents by the researcher on telephone.
    Advantages of Telephonic Interview
    1. It is very fast method of data collection.
    2. It has the advantage over “Mail Questionnaire” of permitting the interviewer to talk to one or more persons and to clarifying his questions if they are not understood.
    3. Response rate of telephone interviewing seems to be a little better than mail questionnaires
    4. The quality of information is better
    5. It is less costly method and there are less administration problems
    Disadvantages of Telephonic Interview
    1. They cant handle interview which need props
    2. It cant handle unstructured interview
    3. It cant be used for those questions which requires long descriptive answers
    4. Respondents cannot be observed
    5. People are reluctant to disclose personal information on telephone
    6. People who don’t have telephone facility cannot be approached

  2. Personal Interviewing

    3. It is the most versatile of the all methods. They are used when props are required along with the verbal response non-verbal responses can also be observed.
    Advantages of Personal Interview
    1. The person interviewed can ask more questions and can supplement the interview with personal observation.
    2. They are more flexible. Order of questions can be changed
    3. Knowledge of past and future is possible.
    4. In-depth research is possible.
    5. Verification of data from other sources is possible.
    6. The information obtained is very reliable and dependable and helps in establishing cause and effect relationship very early.
    Disadvantages of Personal Interview
    1. It requires much more technical and administrative planning and supervision
    2. It is more expensive
    3. It is time consuming
    4. The accuracy of data is influenced by the interviewer
    5. A number of call banks may be required
    6. Some people are not approachable

  3. Mail Survey

    4. Questionnaires are send to the respondents, they fill it up and send it back.
    Advantages of Mail Survey
    1. It can reach all types of people.
    2. Response rate can be improved by offering certain incentives.
    Disadvantages of Mail Survey
    1. It can not be used for unstructured study.
    2. It is costly.
    3. It requires established mailing list.
    4. It is time consuming.
    5. There is problem in case of complex questions.

  4. Electronic Interview

    5. Electronic interviewing is a process of recognizing and noting people, objects, occurances rather than asking for information. For example-When you go to store, you notice which product people like to use. The Universal Product Code (UPC) is also a method of observing what people are buying.
    Advantages of Electronic Interview
    1. There is no relying on willingness or ability of respondent.
    2. The data is more accurate and objective.
    Disadvantages of Electronic Interview
    1. Attitudes can not be observed.
    2. Those events which are of long duration can not be observed.
    3. There is observer bias. It is not purely objective.
    4. If the respondents know that they are being observed, their response can be biased.
    5. It is a costly method.

Questionnaire Design

A good questionnaire should not be too lengthy. Simple English should be used and the question shouldn’t be difficult to answer. A good questionnaire requires sensible language, editing, assessment, and redrafting.
Questionnaire Design Process
  1. State the information required- This will depend upon the nature of the problem, the purpose of the study and hypothesis framed. The target audience must be concentrated on.
  2. State the kind of interviewing technique- interviewing method can be telephone, mails, personal interview or electronic interview. Telephonic interview can be computer assisted. Personal interview can be conducted at respondent’s place or at mall or shopping place. Mail interview can take the form of mail panel. Electronic interview takes place either through electronic mails or through the internet.
  1. Decide the matter/content of individual questions- There are two deciding factors for this-
    1. Is the question significant? - Observe contribution of each question. Does the question contribute for the objective of the study?
    2. Is there a need for several questions or a single question? - Several questions are asked in the following cases:
      • When there is a need for cross-checking
      • When the answers are ambiguous
      • When people are hesitant to give correct information.
  2. Overcome the respondents’ inability and unwillingness to answer- The respondents may be unable to answer the questions because of following reasons-
    • The respondent may not be fully informed
    • The respondent may not remember
    • He may be unable to express or articulate
    The respondent may be unwilling to answer due to-
    • There may be sensitive information which may cause embarrassment or harm the respondent’s image.
    • The respondent may not be familiar with the genuine purpose
    • The question may appear to be irrelevant to the respondent
    • The respondent will not be willing to reveal traits like aggressiveness (For instance - if he is asked “Do you hit your wife, sister”, etc.)
    To overcome the respondent’s unwillingness to answer:
    1. Place the sensitive topics at the end of the questionnaire
    2. Preface the question with a statement
    3. Use the third person technique (For example - Mark needed a job badly and he used wrong means to get it - Is it right?? Different people will have different opinions depending upon the situation)
    4. Categorize the responses rather than asking a specific response figure (For example - Group for income levels 0-25000, 25000-50000, 50000 and above)
  3. Decide on the structure of the question- Questions can be of two types:
    1. Structured questions- These specify the set of response alternatives and the response format. These can be classified into multiple choice questions (having various response categories), dichotomous questions (having only 2 response categories such as “Yes” or “No”) and scales (discussed already).
    2. Unstructured questions- These are also known as open-ended question. No alternatives are suggested and the respondents are free to answer these questions in any way they like.
  4. Determine the question language/phrasing- If the questions are poorly worded, then either the respondents will refuse to answer the question or they may give incorrect answers. Thus, the words of the question should be carefully chosen. Ordinary and unambiguous words should be used. Avoid implicit assumptions, generalizations and implicit alternatives. Avoid biased questions. Define the issue in terms of who the questionnaire is being addressed to, what information is required, when is the information required, why the question is being asked, etc.
  5. Properly arrange the questions- To determine the order of the question, take decisions on aspects like opening questions (simple, interesting questions should be used as opening questions to gain co-operation and confidence of respondents), type of information (Basic information relates to the research issue, classification information relates to social and demographic characteristics, and identification information relates to personal information such as name, address, contact number of respondents), difficult questions (complex, embarrassing, dull and sensitive questions could be difficult), effect on subsequent questions, logical sequence, etc.
  6. Recognize the form and layout of the questionnaire- This is very essential for self-administered questionnaire. The questions should be numbered and pre-coded. The layout should be such that it appears to be neat and orderly, and not clattered.
  7. Reproduce the questionnaire- Paper quality should be good. Questionnaire should appear to be professional. The required space for the answers to the question should be sufficient. The font type and size should be appropriate. Vertical response questions should be used, for example:
    Do you use brand X of shampoo ?
    • Yes
    • No
  8. Pre-test the questionnaire- The questionnaire should be pre-tested on a small number of respondents to identify the likely problems and to eliminate them. Each and every dimension of the questionnaire should be pre-tested. The sample respondents should be similar to the target respondents of the survey.
  9. Finalize the questionnaire- Check the final draft questionnaire. Ask yourself how much will the information obtained from each question contribute to the study. Make sure that irrelevant questions are not asked. Obtain feedback of the respondents on the questionnaire.

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