MARKET RESEARCH

MODULE 1:

MARKET RESEARCH AS INPUT IN DECSION MAKING PROCESSThe task of marketing research (MR) is to provide management with relevant, accurate, reliable, valid, and current information. Competitive marketing environment and the ever-increasing costs attributed to poor decision making require that marketing research provide sound information. Sound decisions are not based on gut feeling, intuition, or even pure judgment.

Marketing managers make numerous strategic and tactical decisions in the process of identifying and satisfying customer needs. They make decisions about potential opportunities, target market selection, market segmentation, planning and implementing marketing programs, marketing performance, and control. These decisions are complicated by interactions between the controllable marketing variables of product, pricing, promotion, and distribution. Further complications are added by uncontrollable environmental factors such as general economic conditions, technology, public policies and laws, political environment, competition, and social and cultural changes. Another factor in this mix is the complexity of consumers. Marketing research helps the marketing manager link the marketing variables with the environment and the consumers. It helps remove some of the uncertainty by providing relevant information about the marketing variables, environment, and consumers. In the absence of relevant information, consumers' response to marketing programs cannot be predicted reliably or accurately. Ongoing marketing research programs provide information on controllable and non-controllable factors and consumers; this information enhances the effectiveness of decisions made by marketing managers.

Traditionally, marketing researchers were responsible for providing the relevant information and marketing decisions were made by the managers. However, the roles are changing and marketing researchers are becoming more involved in decision making, whereas marketing managers are becoming more involved with research. The role of marketing research in managerial decision making is explained further using the framework of the "DECIDE" model:

The DECIDE model conceptualizes managerial decision making as a series of six steps. The decision process begins by precisely defining the problem or opportunity, along with the objectives and constraints. Next, the possible decision

factors that make up the alternative courses of action (controllable factors) and uncertainties (uncontrollable factors) are enumerated. Then, relevant information on the alternatives and possible outcomes is collected. The next step is to identify and select the best alternative based on chosen criteria or measures of success. Then a detailed plan to develop and implement the alternative selected is developed and put into effect. Last, the outcome of the decision and the decision process itself are evaluated.

What is the Role of Research? Managers and CEOs often want to base their brand decision on measurable market research. So, how much market research should you do? Research can never give you all the answers, but it can be effectively used to understand how target audiences might receive a new idea, or to find a new market opportunity

MARKET RESEARCH AND MARKETING INFORMATION SYSTEMMarketing Research and Marketing Information Systems

Marketing Research is defined as:

the systematic design, collection, interpretation, and reporting of information not currently available, to help marketing managers solve specific marketing problems or take advantage of marketing opportunities.

In other words, marketing research is the process of defining a marketing problem and opportunity, systematically collecting and analysing information, and recommending actions to enhance an organisation’s marketing activities. It is the function that links the consumer (customer) and public to the marketer through information.

To supplement the process of marketing research, marketing managers make use of a Marketing Information System (MIS). The Marketing Information System is a framework for day-to-day management and structuring of information gathered regularly from sources both inside and outside an organisation. MIS provides a continuous flow of information considered relevant to marketing managers.

Two important sources of information are:

1. Internal records - for example invoices, consumer databases, inventory, etc.

2. Market intelligence or information - a regular information on market development in the marketing environment.

The main focus of MIS is on manager’s information requirements i.e what information is required and why; how it can be stored and retrieved; and the framework for achieving these. Special attention is placed on expediting the “flow” of information.

Both marketing research and MIS are measured by their ability to efficiently improve a marketing manager’s ability to make decisions. The cost of carrying out the marketing research must be weighed against the benefits derived. We must evaluate the value of the information. It is also important for marketing managers to approach the research in a logical manner, as the difference between good and bad research depends on the quality of the inputs, amongst others.

To ensure appropriateness of marketing research, marketing managers should give due consideration to the following:

* Research must be conducted in a systematic manner that involves a series of steps and activites.

* Data may be retrieved from different sources and care has to be exercised in selecting the most appropriate/reliable sources.

* Research may apply to any aspect of marketing (any of the marketing mix variables, segmentation, targeting and positioning, consumer behaviour etc.) that needs information for decision-making purposes.

* Findings or output of the research must be communicated and acted upon in the most effective mannerApplications of Market Research

Pricing Research

We provide pricing strategy consulting backed by strong pricing research capabilities. Our perspective is broad when dealing with pricing research and pricing strategy decisions, and focus on finding for your business optimum price-product-feature configurations in the context of market positioning opportunities. We employ both qualitative and quantitative pricing research tools.

Product Research

Product market research serves several goals: new product design and market validation research, or assessing existing product strength and line extension potential.   We follow the product development cycle integrating research with creative positioning and technical product design efforts.

Concept Testing

Concept testing research evaluates advertising concepts, ad theme concepts and appeals, new product concepts, pricing, brand concepts, brand names, and positioning strategy concepts.   We select techniques -- qualitative and quantitative -- to both develop concepts, refine, and screen to assess market potential.

Positioning Research

We offer experienced market positioning and creative branding research capabilities to define and go-to-market with a high-impact positioning strategy. First, it requires understanding the market positioning concept, your current and potential markets, and the process needed to generate brand name impact.

Marketing Due Diligence

We support venture investment firms with primary and secondary marketing research in a stand alone or component marketing due diligence study.

Customer Satisfaction Research

The buzz and interest around customer satisfaction research sometimes deflates if the research design does not lead to actionable results. Also, customer expectations generally rise overtime as advances in technology in many categories boost the consumer consciousness of what to expect. We build into our customer satisfaction study design "action indicators" to point to immediate use of customer satisfaction results.

Branding Research

Branding decisions drive branding marketing research strategy.  Corporate, product and advertising brand development is a mix of creativity and marketing information to uncover brand positioning opportunities in cluttered market spaces.

Brand Equity Research

Brand equity research measures the breadth and depth of brand power in your target markets.  We use both standard and custom tailored brand equity survey measurements.  A key to research design is the goal of a brand equity measurement study.

Advertising Research

Advertising research design is determined by specific advertising goals and the stage of ad development, or campaign. We use a broad range of advertising research techniques including ad recall surveys, message and theme salience and impact measures, buying motivation and association with the ad message or positioning theme. We employ both qualitative and quantitative pricing research tools.

Market Segmentation

Market segmentation research maintains focus and delivers needed marketing information in today's moving economy where new markets and new product categories emerge and traditional market segments fade away.  Market segmentation research is a way to keep 'your eye on the ball.'  Often we start the market segmentation process with qualitative research to the range and breadth of

customers.  Then we follow with quantitative research using appropriate multivariate analysis (cluster, k-means factor, etc) to define meaningful segments. 

Sales Analysis

Data mining -- finding gems of insight from sophisticated or basic analysis of your internal customer and sales and margin trend data -- is a key first step in product and brand analysis. Simply put, a marketing analysis data mining effort searches for meaning and insight among the stacks of sales data and marketing data already within a sales and marketing organization. Through these tools we can better target your best customers, find which advertising and promotion methods are most efficient and effective.PLANNING A RESEARCH PROJECT

1) Find an interesting topic2) Think of a particular question-The most important thing in research is to

have a very specific question that you want to ask.3) Search the literature-This is important because it will give you an idea of

what other people have researched on your topic and will give you ideas about how to answer your own question.It may enable you to form a hypothesis

4) How will you test your question-There are a number of methods you could use:Laboratory experiments

Observational exercisesQuestionnaires

The method you use should help you to answer your question• 5) Is what I am planning feasible-What time constraints do I have?

– I have 2 days.• What equipment will I need?

– LOTS of cats, somewhere to throw them off of, and cat food.• How expensive will it be?

– How much does 100 tins of cat food cost?

• 6) Is what I am planning ethical-Will my research contribute something useful to society?

• Does my research involve any risk to myself or anyone else? • Is my research dangerous?

What do you think• 7) Write a ‘research protocol’.- It is important to write down exactly what

you are planning to do and how you are planning to do it.• This is so that somebody else would be able to repeat your experiment, and

also so that you remember what you are supposed to be doing! RESEARCH PROBLEM IDENTIFICATION AND FORMULATION   Research Problem: Identification and Formulation: Mohd Shoket 513 International Journal of Research (IJR) Vol-1, Issue-4, May 2014. ISSN 2348-6848 Introduction Research comprises creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of this stock of knowledge to devise new applications. Research problems are questions that indicate gaps in the scope or the certainty of our knowledge. They point either to  problematic phenomena, observed events that are puzzling in terms of our currently accepted ideas, or to problematic theories, current ideas that are challenged by new hypotheses. What is a research problem?  It is the topic we would like to address, investigate, or study, whether descriptively or experimentally.  It is the focus or reason for engaging in our research.  It is typically a topic, phenomenon, or challenge that we are interested in and with which we are at least somewhat familiar applications Problem Formulation Problem formulation is the logical first step toward this goal. As Northrop (1966) writes, “Inquiry starts only when something is unsatisfactory, when traditional beliefs are inadequate or in question, when the facts necessary, to resolve one’s

uncertainties are not known, when the most likely relevant hypotheses are not even imagined. What one has at the  beginning of the inquiry is merely the  problem” (p. 17). The formulation of research problems also has an important social function. As Merton, Broom, and Cottrell (1959) suggest, researchers must justify the demands for attention and other scarce resources that research makes: “In conferring upon the scientist the right to claim that a question deserves the concerted attention of others as well as himself, the social institution of science exacts the obligation that he justify the claim” (p. xix). Achieving significant research results is  perhaps the most powerful justification for such claims, but this type of justification can be offered only after the fact, and only in the event that the research is successful. A compelling research problem, by contrast, must marshal support in advance of  research and, if it is sufficiently compelling, can even sustain that support through the sometimes fruitless periods that researcher's experience. However, despite research  problems’ logical priority in inquiry, and their importance as a priori justification, a  problem formulation, as John Dewey stresses, is in fact a “progressive” matter. The Role of Theory in Problem Formulation Theory plays a dual role in research. 1. On the one hand, new theories solve research problems by

   Research Problem: Identification and Formulation: Mohd Shoket 514 International Journal of Research (IJR) Vol-1, Issue-4, May 2014. ISSN 2348-6848 accounting for unexplained  phenomena and by superseding questionable older theories. 2. 

On the other hand, existing theory guides researchers in formulating research problems. In determining whether and in what respects a  phenomenon or a theory is  problematic, researchers consider the context of accumulated theoretical as well as empirical knowledge. Sources of Research Problem  Classroom  School  Community  Own teaching experiences  Classroom lectures  Class discussions  Seminars/workshops/paper  presentations  Internet  Out-of-class exchange of ideas with fellow students and professors  Reading assignment  Textbook

 Special programme  Research reports  Term papers  Consultation with  Course instructor  Advisor  Faculty member How is a research problem formed? We often think we understand problems when we don’t. For example, when students encounter difficulties with word  problems in math, teachers may initially think that students have not mastered the  basic skills that would allow them to carry out the needed computations. However, the difficulty may actually lie in poor reading skills, which prevent the students from identifying the words in math problems. As another example, when students do not hand in homework assignments or  participate in class, some might be inclined to think that the students are not moti-vated. While there may be motivational issues, motivation may not be the only factor. A high school student may have an evening job that demands considerable time and energy. A younger student may  be trying desperately to camouflage poor or nonexistent skills. In some cases, the chosen instructional strategy may not be well matched to the student’s cognitive or attention level. Therefore, it is crucial that researchers accurately identify the problem they want to study Formulating the Problem The selection of one appropriate researchable problem out of the identified problems requires evaluation of those alternatives against certain criteria, which may be grouped into: Internal Criteria

 Internal Criteria consists of: 1. Researcher’s interest: The  problem should interest the researcher and be a challenge to him. Without interest and curiosity, he may not develop sustained

   Research Problem: Identification and Formulation: Mohd Shoket 515 International Journal of Research (IJR) Vol-1, Issue-4, May 2014. ISSN 2348-6848 

 perseverance Interest in a problem depends upon the researcher’s educational background, experience, outlook and sensitivity. 2. Researcher’s own resource: In the case of a research to be done by a researcher on his own, consideration of his own financial resource is pertinent. If it is beyond his means, he will not be able to complete the work, unless he gets some external financial support. Time resource is more important than finance. Research is a time-consuming process; hence it should  be properly utilized. 3. Researcher’s competence: A mere interest in a problem will not do. The researcher must be competent to plan and carry out a study of the problem. He must  possess adequate knowledge of the subject-matter, relevant methodology and statistical  procedures. External Criteria 1. Research-ability of the problem: The problem should be researchable, i.e., amendable for finding answers to the questions involved in it through the scientific method. 2. Novelty of the problem: The  problem must have novelty. There is no use of wasting one’s time and energy on a problem already studied thoroughly by others. 3. Importance and urgency: Problems requiring investigation are unlimited, but available research efforts are very much limited. 4. Facilities: Research requires certain facilities such, as well-equipped library facility, suitable and competent guidance, data analysis facility, etc. Hence the availability of the facilities relevant to the problem must be considered. Problems for research, their relative importance and significance should be considered. 5. 

Feasibility: A problem may be a new one and also important, but if research on it is not feasible, it cannot be selected. 6. Usefulness and social relevance: Above all, the study of the problem should make a significant contribution to the concerned body of knowledge or to the solution of some significant  practical problem. It should be socially relevant. 7. Research personnel: Research undertaken by professors and by research organizations require the services of investigators and research officers. But in India and other developing countries, research has not yet become a  prospective profession. Hence talent persons are not attracted to research projects. Each identified problem must be evaluated in terms of the above internal and external criteria and the most appropriate, one may  be selected by a research scholar.

RESEARCH DESIGN:Purpose of ResearchAs you probably already know, there are many reasons why research is done. But what are its purposes? Why bother with all the different styles, techniques, experiments and measurements? Why did the first sailors, the ones before Columbus and Magellan, hop on their little canoes and paddle out? Humans naturally explore the world around them, wanting to learn about the planet we have labeled Earth. Why did Hippocrates and Galen examine and write about the maladies of man? The need to describe and understand our world is found in even the youngest children. Why did we develop an entire group of sciences to understand humans? Because what good is being human if you cannot explain why we do something. Maybe I am being a little to 'meta' about all this. The purpose of psychology is to explore, to describe and to explain how and why a person thinks, feels and acts. Exploratory ResearchExploratory research is defined as the initial research into a hypothetical or theoretical idea. This is where a researcher has an idea or has observed something and seeks to understand more about it. An exploratory research project is an attempt to lay the groundwork that will lead to future studies, or to determine if what is being observed might be explained by a currently existing theory. Most often, exploratory research lays the initial groundwork for future research.

To make this a little more understandable, imagine you are blindfolded or placed into a room without light. You are not told if something is in the room, but you have a suspicion there is something in there. You shuffle out slowly into the room, exploring with the tips of your fingers until you find something. Exploratory research can come in two big forms: either a new topic or a new angle. A new topic is often unexpected and startling in its findings. For example, American psychologist John Watson really began his behaviorism research with a new topic on the study of human behaviors and learning: rats! Because humans have brains and rats have brains, it makes a certain kind of sense. There was an attempt to find the universal laws of learning in all brains. New angles can come from new ways of looking at things, either from a theoretical perspective or a new way of measuring something. For instance, computers have allowed large populations to be looked at. Old experiments can now involve thousands of people from around the globe instead of a few people from the local train station. Descriptive ResearchOnce the groundwork is established, the newly explored field needs more information. The next step is descriptive research, defined as attempts to explore and explain while providing additional information about a topic. This is where research is trying to describe what is happening in more detail, filling in the missing parts and expanding our understanding. This is also where as much information is collected as possible instead of making guesses or elaborate models to predict the future - the 'what' and 'how,' rather than the 'why.' Remember that room you're blind in? Descriptive research is the act of exploring the thing in the dark, creating a fuller picture of what you are looking at. It is not quite as tentative as exploratory, but you still are not 100% sure what you've found, although you're starting to get an idea. You begin to fill in what you know with what you find. A psychological example is the use of CT scans, MRI, fMRI, PET, and SPECT imaging to describe the living brain. We now have the clearest picture in all of history of the thinking, living brain. Just a few decades ago, a person who wanted to look at a living brain had two options: a really blurry CT scan without any detail or to crack open the skull and peel back the protective layers around the brain. Both options are better than a century ago, where you kind of had to wait for someone to die to examine their brain. Research over the last few decades has been expanding our understanding, providing descriptions of the active processes in the brain. One field that is quickly growing is the field of forensic psychology. Over the last few decades, studies exploring the decision making process of police officers, the techniques used to question witnesses and the jury processes are all being

examined. There has been an active interest in many researchers to explore the field that the judicial system needs. For instance, looking into eyewitness memory studies reveals research explaining and describing the factors that influence what people see. For example, did you know that a person with different lights shining at different angles on a person's face can alter a person's entire look, including their ethnicity? How about that even in broad daylight, people still get gender of perpetrExperimental Research - An attempt by the researcher to maintain control over all factors that may affect the result of an experiment. In doing this, the researcher attempts to determine or predict what may occur.Experimental Design - A blueprint of the procedure that enables the researcher to test his hypothesis by reaching valid conclusions about relationships between independent and dependent variables. It refers to the conceptual framework within which the experiment is conducted.Steps involved in conducting an experimental study

Identify and define the problem.Formulate hypotheses and deduce their consequences.Construct an experimental design that represents all the elements, conditions, and relations of the consequences.

1. Select sample of subjects.2. Group or pair subjects.3. Identify and control non experimental factors.4. Select or construct, and validate instruments to measure outcomes.5. Conduct pilot study.6. Determine place, time, and duration of the experimentators and victims mixed up?

Marketing Research Techniques in the Internet Environmentby Alex Saez, Demand Media

Gear your online marketing techniques to suit your needs.Marketing has always been critical for business success. With the advent of the Internet, new techniques have emerged. As a small-business owner, it is essential that you take advantage of the Internet environment to promote yourself and assess your ever-changing industry. That being said, understanding these methods and tools will give you the edge you need to thrive.Ads by GoogleVoluum TrackingCan't decide which tracker? Try Voluum - it's free!voluum.com / free Keyword ResearchUsing search engines is a quick and effective Internet marketing research technique. With tools such as WordTracker or Trellian's Keyword Discovery, you can search for keywords related to your business or product. The aforementioned software then tracks the popularity of those words. In turn, you gain an insight regarding the product or service's popularity and sales potential. You can also use search engines to research rival businesses. By typing "link:www.[competitor's name].com" in a Google search, you will find links to competitor websites, which should show you what other companies are offering in terms of pricing and product

quality. Use this information to emphasize why your business is better by promoting more enticing deals or higher-quality products.Blogs and PostsThere is a wealth of information you can harness online. While researching competitors certainly helps, monitoring blogs is also beneficial. Whether the blog belongs to a business or is simply an interest group, it contains a steady stream of information about public opinion. Posters and forum commenters will often reveal which products they favor or demand. You can then gear your business to meet those needs and attract more customers. This process can be further facilitated by blogging search engines, such as Technorati. These tools filter out all content but blogs, saving you a great deal of time.Related Reading: Marketing Challenges in a Multinational EnvironmentSurveys and QuestionnairesOnline surveys and questionnaires are both effective and cheap. By emailing short -- "short" being the key term -- forms to past, current or potential customers, you can determine things like satisfaction, public opinion and potential demand. In turn, you may alter your product or change your business to keep it relevant and provide the best customer service possible. There are many tools available in this area. KeySurvey and WebSurveyor allow you to quickly and easily create your own questionnaires or surveys. When creating these, avoid vague or "open-ended" questions. Instead, focus on simple "yes", "no" or "maybe" answers.Group InterviewsAlso referred to as "focus groups," this marketing technique used to be only done in person but has since expanded to the Internet environment. It can contain anywhere from 10 to 30 members. Having it online is advantageous, because participants do not have to leave home to take part. There are two forms: real-time focus groups and bulletin board focus groups. As their name implies, real-time focus groups have respondents interact simultaneously. They function similarly to a conventional chat room. Participants discuss the business, product or service while a staff moderator oversees the dialog to keep it on track. Bulletin board groups, on the other hand, do not require everyone to meet. They are comparable to a typical forum, again moderated by staff. Group members log in at their convenience, post messages and respond to others