Meaning and Scope of Marketing Research
Meaning and Scope of Marketing Research
Meaning and Scope of Marketing Research
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--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:-
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
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
1. Telephonic Interview
2. Personal Interview
3. Mail Interview
4. Electronic Interview
1.
Telephonic Interview
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
Personal Interviewing
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
Mail Survey
Questionnaires are send to the respondents, they fill it up and send it back.
Advantages of Mail Survey
4. It is costly.
5. It requires established mailing list.
6. It is time consuming.
7. There is problem in case of complex questions.
4.
Electronic Interview
Observation Method
The observation method involves human or mechanical observation of what people
actually do or what events take place during a buying or consumption situation.
Information is collected by observing process at work. The following are a few
situations:1. Service Stations-Pose as a customer, go to a service station and observe.
2. To evaluate the effectiveness of display of Dunlop Pillow Cushions-In a
departmental store, observer notes:- a) How many pass by; b) How many
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.
After 5 Years
5000-6000
6001-7000
7001-10000