Market research

Topic : Market Research
Dr. Devyanee K. Nemade
Assistant Professor
Department of Agricultural
Economics & Statistics Dr.
PDKV, Akola

What is Market Research?
• The market research is an important element of
the process of marketing research.
• Marketing research includes the complete analysis
of the market.
• Information regarding the nature, size,
organization profitability of different markets,
changes in markets and various factors- economic,
social and political-affecting those changes are
studied vigorously.
• The main purpose of market research is to know
about the consumers and the markets of its
products or services.

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

Concept of Market Research:
The systematic and
objective identification,
collection, analysis and
dissemination of information
for the purpose of assisting
management decision-
making related to the
identification and solution of
problems and opportunities
in marketing.

Scope of Marketing Research:
Thus the scope of marketing research lies in its variety of
applications.
• Diagnosing the current situation or problem based on
detailed information.
• Clearly identifying competitive strengths and
weaknesses.
• Constantly analyzing what is happening in the market
place.
• Planning to watch company’s strengths with market
opportunities by outlining objectives for product and
market development and devising strategies and tactics
to achieve them.

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• Watching out continuously for threats to the
achievement of those plans.
• Monitoring the progress of strategy
implementation.
• Research creativity, at its best, marketing research
develops innovative ways to solve problems.
• The main objective of marketing research is to
enable manufacturers to make goods acceptable
and saleable and to see that they reach the market
more easily, quickly, cheaply and profitably without
sacrificing consumer interest.

Market research covers the following items of study:
• Size of the present and potential market.
• Consumer needs wants, habits and behaviour.
• Dealer wants and preferences.
• Analysis of the market size according to age,
sex, income, profession, standard of living etc.
•
• Geographic location of customers.

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• Analysis of market demand.
• Knowledge of competitors and their products.
• Knowing the profitability of different markets.
• Study the market changes and market
conditions.
• Analysis of various channels of distribution.

Objectives of Marketing Research:
Marketing research helps the marketing
executive in the formulation of all marketing plans,
policies, programmes and procedures, to attain the
marketing goals. When the above said plans, policies
and programmes are translated into action, marketing
research is used for evaluation purposes.

• To understand the economic factors affecting the
sales volume and their opportunities.
• To understand the competitive position of rival
products.
• To evaluate the reactions of consumers and
customers.
• To study the price trends.
• To evaluate the system of distribution.
• To understand the advantages and limitation of the
products.

• To find new methods of packaging, by comparing other
similar packages.
• To analyze the market size.
• To know the estimation of demand.
• To evaluate the profitability of different markets.
• To study the customer’s acceptance of products.

• To assess the volume of future sales.
• To study the nature of the market, its location and its
potentialities.
• To find solutions to problems relating to marketing of
goods and services.
• To evaluate policies and plans in the right course of
action.

• To know the development of science and
technology.
• To know the complexity of marketing.
• To measure the effectiveness of advertising.
• To estimate the potential market for a new
product.
• To assess the strength and weakness of the
competitors.

Advantages of marketing research:
• Marketing research is used to measure market
potential, characteristics and share of markets for a
company.
• Companies can use marketing research to evaluate
new product opportunities and product acceptance
and to test existing products relative to the
competitor’s products.
• It helps to make better advertising decisions.
• It helps to evaluate the effectiveness of marking
activities and draws attention to a potential problem.

• It helps the manufacturer to adjust his productions
according to the conditions of demand.
• It helps marketing of goods in efficient and
economical way by eliminating all types of wastage.
• It helps a dealer to find out the best way of
approaching potential buyers.

• It helps to find out defects in the products and take
corrective steps to improve the product.
• It guides a dealer in planning, advertising and promotion
effort.
• It helps to assess the effectiveness of advertising
programmes.
• It helps in evaluating the relative efficiency of different
advertising media.

• It facilitates to evaluate the selling methods.
• It helps to minimize the risks of uncertainties.
• It helps in exploring new markets for its products.
• It guides a firm in making sales forecasts for
products.

• It helps to explore new uses of existing products.
• It is quite helpful for a firm to launch a new product.
• It helps the firm in knowing general conditions
prevailing in the market.
• It helps in determining pricing policies and pricing
strategy of competitors.
• It reveals the causes of consumer resistance, etc.

Application / Scope of marketing research
1. Research on Product
2. Research on Market
3. Research on Sales Methods and Policies
4. Research on Advertising
5. Customer Research
6. Research on Pricing
7. Research on Distribution
8. Research on Business Environment and
Corporate Responsibility

1. Research on Products:
Products involve goods and services. This branch
of marketing research covers all the issues related to
firm’s products.
It studies and solves the product-related problems, such
as:
• Study of products’ qualities and performance .
• Study of physical and psychological characteristics
of product.
• Determining uses of the existing products.
• Comparative study of competitive products .

• Detecting consumers’ problems related to the
products.
• Determining need for developing new products.
• Assessing success of a new product in market,
including market testing.
• Product life cycle and consumer adoption study.
• Study of branding, packaging, labeling, after-
sales services, and remarking.

2. Research on Market:
This area of marketing research deals with
market/consumers. It studies characteristics and
compositions of the target markets. It covers both current
as well as potential markets.
This branch includes:
• Defining and selecting target market.
• Studying needs and wants of target market .
• Study of size and location of current market .
• Assessing the current market trends and projecting
the future trend.

• Analysis of territorial sales opportunities and
potential.
• Setting sales territories and sales quotas.
• Market share analysis.
• Studies on relative profitability of different
markets.
• Estimating demand of a new product.

3. Research on Sales Methods and Policies:
This area of marketing research, particularly,
concerns with study and analysis of the sales- related
activities.
Various aspects covered under this head may
be listed as below:
• Study and analysis of sales records.
• Analysis of sales territories in terms of products,
size of orders, times, terms and conditions and
methods.
• Study on activities and effectiveness of salesmen.

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• Sales force management including size,
compensation, training, control, etc.
• Study on effect of various promotional tools such as
advertising, personal selling, sales promotion, and
publicity tools on sales.
• Study on organization structure of sales department.

4. Research on Advertising:
Advertising is one of the powerful
methods of market promotion. Major part of
promotional budget is devoted to advertising
activities. Therefore, it is imperative to conduct
research on various aspects related to
advertising.

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Under this area, at least following aspects are
covered:
- Comparative study of various elements of
promotion.
- Study on advertising objectives, media and
media selection, advertising message, theme,
copy, and advertising agency.

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• Social aspects of advertising – negative and positive
effects of advertising on society at large.
• Advertising role in different stages of product life
cycle.
• Government restrictions on advertising.
• Study on costs and contribution of advertising or
evaluating advertising effectiveness.
• Study of competitors’ advertising practices and
strategy.

5. Customer Research:
Customer research is concerned with the study of
buyer behavior. It probes into different factors such
as sociology, economic and psychological, that
influence the customers in their decision to buy the
product.
The firm may like to know whether its
customers are satisfied with its products and to what
extent. Customer research can provide customer’s
suggestions.

6. Research on Pricing:
Price is an important element of marketing mix. In
developing and underdeveloped countries, price plays a
vital role. Suitable pricing policies and methods can
contribute positively in attainment of marketing goals. It
is clear that price has remained a major determinant of
buying decision.
This branch covers:
• Study on pricing objectives.
• Study on effectiveness of pricing policies and
strategies.
• Study of various methods for setting price.

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• Quality v/s value analysis.
• New product and pricing policies.
• Study on effect of discount, allowance, and seasonal
variables.
• Pricing strategies on different stages of product life
cycle.

7. Research on Distribution:
In today’s marketing, distribution has unique role to
determine success of product. A marketer can contribute
to total consumer satisfaction by designing appropriate
distribution network. Physical distribution and distribution
channel are two important components of such research.
This area includes:
• Assessing role of distribution decisions in achieving
marketing goals.
• Comparative study of between direct and indirect
distribution.

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• Physical distribution and ancillary services.
• Study on various types of channels of
distribution.
• Study on relevant factors affecting channel
decision/selection.
• Comparing company’s distribution strategies
with competitors.
• Relevance of online marketing.
• Legal issues related to distributions.

8. Research on Business Environment and Corporate
Responsibility:
This area is not concerned with solving any
marketing problem directly. In order to collect and analyze
data related to broad business environment, such research
is conducted. The study on the area helps manager
formulate strategies for the current and the future market
as well. It also helps assess strengths and weaknesses of
marketing department in relation to business environment.
In today’s dynamic business environment, the study on
various economic, social, and cultural variables is
extremely important. Similarly, it is necessary to analyze
corporate responsibility.

Research Process:
1. Identifying & Formulating Problem
2. Choice of Research Design
3. Determine Sources of data
4. Design data Collection forms
5. Determine sample design & sample size
6. Organize & Conduct field survey
7. Analyse & Interpret the collected date
8. Prepare the research report

1. Identifying & Formulating
Problem
The first step in
research is formulating the
research problem. It is the
most important stage in
applied research, as poorly
designed problems will not
yield useful results.
It is rightly said that ‘ a
problem well defined is half-
solved”. Poorly defined
problems create confusion
and do not allow the
researcher to develop good
research design.

2. Choice of Research Design:
An exploratory research focuses on the discovery of
ideas and is generally based on secondary data.
A descriptive study is undertaken when the researcher
wants to know the characteristics of certain groups such
as age, gender, education level, income, occupation etc.
A causal research is undertaken when the researcher
wants to know the cause and effect relationship between
tow or more variables.

3. Determine sources of data
It is also advisable to
evaluate secondary data in detail
to avoid possible sources of error.
It is only when such secondary
data are unavailable, inadequate
or unreliable, that a research
should decide on collecting fresh
data(Primary data).

4. Design data Collection Forms:
Once the decision in favor of collection of
primary data is taken, one has to decide the mode of
collection. The two methods available are observation
method survey method.
1. Observations
2. Surveys.

5. Determine Sample design & Sample size
When the marketing researcher had decided to
carry out a field survey, he has to decide whether it is to
be a census or sample survey.
When a decision in favour of sample survey has
been taken. It is necessary to have a clear definition of
the population from which the sample is to be drawn,
before deciding on the type of sample design to be used.
First, a broad choice is to be made between probability
sampling and non probability sampling.
The object of sampling is to choose a sample
which will faithfully reproduce the characteristics of the
population.

6. Organize & Conduct Field
survey:
The task of
interviewing seems to be
simple but in reality. It is the
most difficulty tasks in
marketing research. This is
because respondents are
generally hesitant in giving
information unless
approached with tact,
initiative and Intelligence.

7. Analyze & Interpret the collected date:
Once the field survey is over and
questionnaires have been received, the next task is
to aggregate the data in a meaningful manner. A
number of tables are prepared to bring out the main
characteristics of the data.
The researcher should have a well thought
out framework for processing and analyzing data and
this should be done prior to the collection.

8. Prepare the research report:
Once the data have been
tabulated, interpreted and
analyzed, the marketing
researcher is required to prepare
his report embodying the findings
of the research study and his
recommendations. As a poor
report on a good research will
considerably undermine its utility.
It is necessary that the
researcher gives sufficient
thought and care to its
preparation.

Although report writing needs some skill which
can be developed with practice. The researcher should
follow the main principles of writing a repost. Some of
these principles are objectivity, clarity in the
presentation of ideas and use of charts and diagrams.
The essence of a good research report is that it
effectively communicates its research findings. The
researcher has to exercise extra care to make the report
a useful and worthwhile document for the management.

Market Information:
It implies transference of information to the perspective
or potential user for consideration, Marketing of
information is set of activities by which information
products and services to the potential users. The core
marketing concept is user oriented.

Need for Marketing of Information Services:
Marketing informs your customers about the products or
services you are offering them. Though Marketing. The
customers get to know about the value of the products,
their usage and additional info that might be helpful to
the customers.
Library services are valuable services but are
undervalued because of lack of visibility among the
users. Marketing efforts can help in improve the image
of library and information professional by establishing
cordial relations with the users and other patrons, good
facilities, high standard of service, good dixcipline and
well-behaved staff.

Sources of Information:
Internal External
Details of the Product Trade Associations
Knowledge about
Customer
Competitors
Buying Behaviour Government Policies
Lifestyle Colleges & Research
Centers

Difference between MIS & MR:
Particular Market
Information
System
Marketing
Research
Purpose Collect, Analysis
and Supply,
Relevant Marketing
Information to the
Marketing Managers
Systematic Process
of Collecting &
Analyzing Marketing
Information
Scope Wide Narrow
Nature General Specific
Orientation Future Oriented Past or Present
Collection of Data Daily On the basis of
Requirement

Market research

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