Category : Banking
Market research is the process of systematic gathering, recording, and analyzing of data about customers, competitors, and the market. Market research can help create a business plan, launch a new product or service fine tune existing products and services, expand into new market etc. It can be used to determine which portion of the population will purchase the products services, based on variables like age, gender, location an income level.
According to Philip Kotler: "Marketing research is systemic problems analysis model building, aid, fact finding for the purpose of improved decision making and control in the marketing of goods and services.
Nature of marketing research
(i) Research on Product
(ii) Research on Services
(iii) Research of new markets
(iv) Research of Sales Method
(v) Research of Sales Policies
(vi) Research on Consumer Behavior
(vii) Research on Product Pricing
(viii) Research of Advertising
(ix) Research of New Product.
(x) Research on Product Life Cycle.
Market research may be used in the following ways
(i) Market and their potentialities: A study of the market, its location and its potentialities.
(ii) Consumers: Information concerning who they are, where they live and their buying habits, motives and preferences.
(iii) Dealers: An investigation of present dealers and their business methods with a view to determining the best type of dealer to choose official representative.
(iv) Selling policies: An analysis of present territories with a study of the best territorial division and routing within them.
(v) Sales territories: An analysis of present territories with a study of the best territorial division and routing within them.
(vi) Sales quotas: The finding of correct facts upon which to base and to develop a sales quota.
(vii) Merchandising policies: The study of old policies and the finding and testing of new ones.
(viii) Products: The discovery of desirable new products, their uses and improvements together with a determination of best sizes, prices and qualities.
(ix) Package: The designing and testing of appropriate packages.
(x) Trademarks and slogans: The compilation/ testing and choosing the best trademarks and slogans.
(xi) Advertising: The determination of the efficiency of advertising and the testing of window displays etc.
(xii) Copy appeals: Finding out why people buy one product rather than another from one in preference to another.
(xiii) Magazine: Information with reference to the reading habits of consumers and retailers.
(xiv) Competition: Determination of policies and practices etc. of competitors and the strength and weakness of each competitor's position.
(xv) Person the collection of facts about any particular person's positions
Marketing research, covers the following items of study
(i) Nature and size of the market.
(ii) Determination of Market Characteristics.
(iii) Geographical Location of Customers.
(iv) Income and Purchasing Power of Customers.
(v) Market Trends
(vi) Likes, dislikes, needs, preferences of Customers.
(vii) Preferences of the dealers.
(viii) Degree of Competition.
Steps in Marketing Research:
(i) Define the Problem and the Research Objectives.
(ii) Analysis of the Problems.
(iii) Determine the information needed.
(iv) Determine the sources of information.
(v) Decide the Research methodology to be adopted.
(vi) Tabulate, Analyze and Interpret data.
(vii) Prepare the research report.
(viii) Follow up the Study.
(i) Define the problem and research objectives: The first basic step is to define the marketing problem in specific terms. Only if the marketing researcher knows what problem the management is trying to solve. Can he do an effective job in planning and designing a research project that will provide the needed information?
(ii) Analysis of the problem: After the problem has been defined, the researcher's task is to learn as much about it as the time permits. This involves getting acquainted with the company, its business, its products and market environment, advertising by means of library consultation and extensive inter viewing of company's officials.
(iii) Determine the information needed: The researcher should then determine the specific information needed to achieve the research objectives for successful operation of production and sales departments, what information is required depends to a large extent on the nature of goods and the method used for placing it in the hand of the consumers. In general the producer, the manufacturer, the wholesaler, and the retailer try to find out four things, namely -
(a) What to sell
(b) When to sell
(c) Where to sell
(d) How to sell, so as to get better prices.
(iv) Determine the source of information: The investigator must identify the sources from which the different items of information are obtainable and select those that he will use. He may collect information from primary data, secondary data or both. Primary data are those which are gathered specifically for the project at hand, directly through questionnaires and inter views. Primary data sources include company salesmen, middlemen, consumers, buyers, trade associations, executives and other businessmen and even competitors. Secondary data are generally published sources, which have been collected originally for some other.
(v) Decide the research methodology to be adopted: If it is found that secondary data cannot be of much use, collection of primary data becomes necessary. Three widely used methods of gathering primary data are-
(vi) Tabulate analyses and interpret the data: After the necessary data have been collected, they are tabulated by way of statistical summary. If the questionnaire has been well planned, tabulation work is very much facilitated.
(vii) Prepare the research, report: Then prepare the research report.
Marketing research, areas and activities:
(a) Business/Economics and
(i) Industry / market characteristics and Corporate trend Research
(iii) Market?share analysis
(iv) Infernal employee studies
(i) Cost/profit analysis
(ii) Price elasticity
(iii) Demand analysis
(iv) Competitive pricing analysis
(i) Concept development and testing
(ii) Brand name generation and testing
(iii) Test market
(iv) Product testing of existing products.
(v) Packaging design studies.
(vi)Competitive product studies.
(i) Plant/warehouse location studies.
(ii) Channel performance studies.
(iii) Channel coverage studies.
(iv) Export and international studies.
(i) Motivation research
(ii) Media research
(iii) Copy research
(iv) Advertising effectiveness
(v) Competitive advertising studies
(vi) Public image studies
(f) Buying Behavior
(i) Brand preference
(ii) Brand attitudes
(iii) Product satisfaction
(iv) Purchase behavior
Benefits of Marketing Research:
(i) It tells the management where the company stands in the industry.
(ii) It tells the management what the industry and market trends are at present and what they are likely to be.
(iii) It shows change if any from time to time in preference of customer regarding price, quality color size, and composition of a product.
Factors of Marketing Research contributed in growth:
(i) Due to large scale production the producers do not have direct contact with the ultimate consumer. Marketing research helps to bridge the gap in this regard.
(ii) There has been an increasing emergence in the number of specialists like Psychologist, Statistician and Behavioral Scientist. Due to this fact the significance of Marketing Research has increased several times.
(iii) There has been an increasing use of computers in almost every field of human activity. This has also increased the significance of Marketing Research.
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