3. • Marketing research is a process of gathering, analyzing, and
reporting of data relating to any problem in the marketing field.
Entire process involves the data-related activities. Data are the
raw information. Webster’s dictionary defines data as: “Facts,
statistics, or information either historical or derived by
calculation, or experimentation.”
• For solving any marketing problem, adequate, reliable, relevant
and timely data are necessary. Major part of research budget,
efforts, and time is occupied in collecting data. Data, being raw
information, cannot provide clear indication or implication. They
are to analyzed and interpreted to get meaningful implication.
Only information developed from data can be used for taking
decisions or formulating strategies. Marketing research uses
TWO TYPES OF DATA – PRIMARY AND SECONDARY DATA. Both data have
their uses and limitations. Also, different methods are used for
collecting both types of data.
4. PRIMARY DATA
• Primary data are those details, which are directly and completely
related with the problem on hand. Primary data are original
information and are treated as the basic input for analyzing and
solving any problem related to marketing activities.
• They are deliberately, rigorously, and consciously collected from
the relevant respondents to generate original information that can
be used directly to solve the marketing problem. They are collected
as per company’s plan. For example, if a company wants to solve
the problem related to distribution activities, whatever data
collected in light of this problem can be referred as primary data.
• Primary data are collected from relevant respondents. They are not
readily available, their collection and analysis need rigorous
efforts. Success of marketing research depends upon quality and
quantity of primary data. In fact, no research project can be
completed without primary data.
5. CHARACTERISTICS OF
PRIMARY DATA
• 1. Primary data are original data.
• 2. Primary data are expensive.
• 3. Collection of primary data takes considerable time and efforts.
• 4. They are collected with reference to problem on hand.
• 5. They are collected deliberately from relevant respondents.
• 6. Specific methods (like survey methods, observation methods,
experimental method, etc.) and tools (like printed forms, questionnaire,
camera, etc.) are used for collecting primary data.
• 7. They constitute a basic input in the research project.
• 8. They are required be furnished, processed, or analyzed before they are
used.
6. SOURCES OF PRIMARY DATA
• Primary data are the basic input in solving problem. They are expensive, time
consuming, and they need more efforts. Sources of primary data depend upon type of
problem. They are collected by using specific methods and tools.
• Most commonly used sources of primary data may include:
• 1. Consumers
• 2. Retailers
• 3. Wholesalers
• 4. Dealers/agents
• 5. Suppliers
• 6. Employees of company
• 7. Salesmen
• 8. Trade associations
• 9. Professional experts
• 10. Top-level management
• 11. Competitors
• 12. Other business firms
• 13. Service providers like banks, transporters, insurance, etc.
7. SECONDARY DATA
• Secondary data, on the other hand, are published data. They are readily
available. They can be used directly without processing or analysis. They
are collected rather than generated. Secondary data are those details
which have been collected for the purpose other than specific research
problem.
• They are also known as the recorded data. They are published data. They
have been collected by other people for their contemporary problems.
Sometimes, they are not useful. They are supplementary to primary data.
They support primary data. Extent to which secondary data are used for
marketing research depends upon suitability, accuracy, and time.
• Secondary data consist of the information that already exists somewhere,
having been collected for other purposes. Hardly problem can be solved
only by secondary data. They are used for exploring, defining, and
understanding problems, which can be solved by primary data. For
collecting secondary data, there is no need for employing qualified,
experience, and capable research officer. Similarly, special methods and
tools are not used. Such data can be easily collected.
8. CHARACTERISTICS OF SECONDARY
DATA
• 1. Secondary data are published data, not original data, for the research on the
hand.
• 2. They give the latest information
• 3. They can be easily collected from various internal and external sources.
• 4. They are relatively cheaper; they need less efforts, time, and money.
• 5. They have been collected by other people for their own problems and
situation in the past.
• 6. They are used as a supplementary to primary data. Mostly, they are used for
defining and understanding problems.
• 7. The use of secondary data is optional. Research can be conducted even
without the use of this type of data.
• 8. They can be used without processing; no need to analyze them before they
are used. They can be used directly.
• 9. Relevance, accuracy, and timing are the main problems related to secondary
data.
9. SOURCES OF SECONDARY DATA
Secondary data can be collected from various sources.
Mostly they are collected from published sources.
THERE ARE TWO TYPES OF SOURCES:
• 1. Internal Sources
• 2. External Sources
INTERNAL SOURCES:
• i. Sales and purchase records
• ii. Customers’ complaint notes
• iii. Sales orders
• iv. Salesmen’s reports
• v. Past research work of company
• vi. Other literature and publication work of company
• vii. Information of the past special events, etc.
10. EXTERNAL SOURCES:
• i. Government publication and reports
• ii. Advertising media – daily newspapers, magazines and
periodicals, radio, television, etc.
• iii. Advertising agencies and marketing consultants
• iv. Universities and colleges
• v. Commercial and general libraries
• vi. Marketing research firms and consultants
• vii. Trade associations and technical and professional
groups
• viii. Internet surfing
• ix. Trade fairs and exhibitions
• x. Consumer rating agencies, etc.
12. SOURCES
INTERNAL SOURCES:
• These refer to the sources of information within the
organisation. In certain cases internal sources are
indispensable without which the researcher cannot obtain
desired results. Internal sources include accounting
information (Trading Profit & Loss A/c and Balance Sheets of
different years), salesmen’s reports, statistics in relation to
advertisement expenditure, transportation costs etc.
Information from internal sources is easily available and no
financial burden is involved in gathering the information.
EXTERNAL SOURCES:
• In order to study marketing problems in detail the need of
external sources of marketing research arises. External
sources are of immense importance and utility in case where
research needs detailed and thorough investigation. External
sources data can be divided with two categories (a) Primary data (b)
Secondary data.
13. SALESMAN
• Salesmen are the most important source of providing
first hand information. They are appointed by the owners
for the sale and promotion of its products. They have a
direct link with the consumers understand tastes,
preferences and buying habits of the consumers.
• They can also know about the dealer’s reaction
(especially of retailers) towards the firm’s products by
taking into consideration price, design, packaging and
size etc. of the product. The marketing manager may
direct the salesmen to prepare periodical reports
containing the information collected by them.
14. • The information collected in this manner is original
and more meaningful. This will further enhance the
morale of salesmen as they feel that they are
contributing towards the formulation of marketing
policies of the organisation.
• But sometimes information provided by salesmen is
not accurate and upto the mark. The salesmen are
not properly trained and do not know the
methodology to collect the information properly.
15. DEALERS
• This is another source of collecting primary data.
Valuable information can be collected with regard to
demand of the product from retailers. Information
about the marketing policies of competitors can also
be gathered from the dealers.
• It has been observed that sometimes this method
does not prove to be fruitful as dealers do not keep
proper records and they do not want to waste their
time in supplying information.
16. CONSUMERS
• This source of collecting primary data is of great
importance. Representative samples of consumers
may be selected for conducting thorough
investigation with regard to price, quality and use of
the product. This method of collection data is very
reliable as it establishes direct link between
producer and the consumer.
17. PERIODICALS AND NEWSPAPERS
• Business magazines and journals published
periodically contain data which is very useful for
marketing research; Newspapers such as Economic
Times and Financial Express also contain data
regarding business trends and market reports.
Important trade journals are Industrial Times,
Commerce, Capital, Market, Indian Finance,
Business India, Business World and others.
18. GOVT. PUBLICATIONS AND REPORTS
• There are innumerable publications brought by
Central and State Govt, which contain valuable data
for conducting marketing research. Census reports
of the Government of India, Publications of Planning
Commission; periodical publication such as Indian
Review, various markets bulletins.
• Reserve Bank of India bulletin, publication of the
Statistical Departments of various State Govt.,
supply valuable information extensively used in
marketing research.
19. TRADE ASSOCIATIONS
• Various trade associations like Chambers of
Commerce, Export Promotion Council etc, publish
useful data which is of immense help to the res
warmer.
20. PUBLISHED SURVEYS OF MARKETS
• This is another useful source of supplying
secondary data. Market surveys and reports are
important instruments in the hands of researcher for
conducting marketing research. These are published
by business houses or independent research
organisations. These pertain to specific lines of
products.
21. FOREIGN GOVT, AND
INTERNATIONAL AGENCIES
• Publications of foreign Govt, with regard to trade
and other important aspects of economy of
respective countries and information published by
UNO, ILO, IBRD (International Bank for
Reconstruction and Development) serve useful
purpose in making comparison of Indian conditions
prevailing in other countries of the world.
22. OTHER SOURCES
• Besides the above mentioned sources of marketing
research, there are many other sources of supplying
secondary data e.g., colleges and universities stock
exchanges and commodity exchanges, specialized
libraries’, internal sources such as sales and
purchase records, salesman, reports, sales orders,
customer complaints and records of other
companies.
23. • The secondary data collected from above mentioned
sources suffer from certain limitations. The basis
undertaken by different agencies for collecting data
may not be comparable. In other words, uniform
basis may not be adopted for data collection. The
data may be based on incomplete records under
secondary source; data is collected for purposes
other than marketing research.
