Marketing research is undertaken in order to improve the understanding about a marketing situation or problem and consequently improve the quality of decision-making related to it. The usefulness of the marketing research output will depend upon the way the research has been designed and implemented at each stage of the process. There are five steps in every marketing research process:
• Problem definition
• Research design
• Field work
• Data analysis
• Report presentation and implementation.
Some problems faced by marketing managers are such that they can be handled on the basis of past experience and intuition. Such decisions can be made if the manager has been in the line for at least a couple of years. Decisions made on judgment may not always turn out to be correct, but the problem may not be important enough to justify substantial time, money and effort to be spent on solving it. But when the problem is critical, spending resources to initiate formal marketing research is warranted. Also, when the problem is such that the manager has no past experience to guide him (as in case of a new product launch) or the decision will have a critical impact on the future of the company (diversification in new markets, new products), it is worthwhile to undertake research and make decisions on the basis of concrete results rather than mere hunch or judgment.
It is very important that you define the problem for research properly. It is correctly said that ‘a problem well defined is half- solved’. Clear, precise, to the point statement of the problem itself provides clues for the solution. On the other hand, a vague, general, or inaccurate statement of the problem only confuses the researcher and can lead to wrong problems being researched and useless results generated.
CONCLUSION
Marketing Research as a tool for decision-making is gaining wide acceptance. Marketing decisions involve variables which are often external to the firm, dynamic in nature, uncontrollable by the firm and interact with each other in a complex manner. Because of their dynamic and uncontrollable nature, the uncertainty associated with them is very high, which in turn leads to the situation that in most marketing decisions the associated risk factor is also very high. The marketing manager is always on the lookout for ways and means to reduce this risk. One way that the risk can be reduced is through the use of MR which, by providing information, reduces uncertainty and converts the unknown risk factor into a known calculated risk.
SUMMARY
In this unit, it was highlighted that MR can be used for gathering information about market structure, competitors’ activities, consumer behaviour, testing the efficacy of various elements of the marketing strategy and making forecasts. MR can be used for pre-testing a strategy before actually implementing it, monitor it during implementation, and after implementation, monitor the results to assess its impact. Apart from its usefulness in the area of marketing, MR is also used for monitoring socio-economic projects. The manager must take the decision regarding the utility of MR on the basis of the cost involved in conducting the research and the benefits expected to accrue from it.
TUTOR-MARKED ASSIGNMENT
i. Conducting marketing research (MR) involves some costs. What are these costs?
ii. What are the areas in which marketing research is applied to?
iii. Despite best research effort, the outcome of a research can still be unpredictable. Explain, if possible with a case study.
Ben M. (1980). Marketing Principles. California: Goodyear
Publishing Company.
Ferber, Robert (ed.) (1974). Handbook of Marketing Research. New
York: McGraw-Hill Book Company.
Kotler, Philip (1987). Marketing Management: Analysis, Planning and
Control. New Delhi: Prentice-Hall of India Private Limited.
Luck, D.J.; Wales, H.G.; Taylor, D.A. and Rubbin, R.S. (1978).
Marketing Research. New Delhi: Prentice-Hall of India Private Limited.
• Problem definition
• Research design
• Field work
• Data analysis
• Report presentation and implementation.
Problem Definition
A problem is any situation which requires further investigations. However, not all marketing problems need further investigation or research. Many problems are of a routine and trivial nature which can be solved immediately after ascertaining all the facts of the case. For example, your distributor wants 90 days credit against the usual 60 days because he is facing certain financial problems. You can immediately check the distributor’s past record in honouring his outstanding and ascertain the genuineness of his problem and make a decision.Some problems faced by marketing managers are such that they can be handled on the basis of past experience and intuition. Such decisions can be made if the manager has been in the line for at least a couple of years. Decisions made on judgment may not always turn out to be correct, but the problem may not be important enough to justify substantial time, money and effort to be spent on solving it. But when the problem is critical, spending resources to initiate formal marketing research is warranted. Also, when the problem is such that the manager has no past experience to guide him (as in case of a new product launch) or the decision will have a critical impact on the future of the company (diversification in new markets, new products), it is worthwhile to undertake research and make decisions on the basis of concrete results rather than mere hunch or judgment.
It is very important that you define the problem for research properly. It is correctly said that ‘a problem well defined is half- solved’. Clear, precise, to the point statement of the problem itself provides clues for the solution. On the other hand, a vague, general, or inaccurate statement of the problem only confuses the researcher and can lead to wrong problems being researched and useless results generated.
CONCLUSION
Marketing Research as a tool for decision-making is gaining wide acceptance. Marketing decisions involve variables which are often external to the firm, dynamic in nature, uncontrollable by the firm and interact with each other in a complex manner. Because of their dynamic and uncontrollable nature, the uncertainty associated with them is very high, which in turn leads to the situation that in most marketing decisions the associated risk factor is also very high. The marketing manager is always on the lookout for ways and means to reduce this risk. One way that the risk can be reduced is through the use of MR which, by providing information, reduces uncertainty and converts the unknown risk factor into a known calculated risk.
SUMMARY
In this unit, it was highlighted that MR can be used for gathering information about market structure, competitors’ activities, consumer behaviour, testing the efficacy of various elements of the marketing strategy and making forecasts. MR can be used for pre-testing a strategy before actually implementing it, monitor it during implementation, and after implementation, monitor the results to assess its impact. Apart from its usefulness in the area of marketing, MR is also used for monitoring socio-economic projects. The manager must take the decision regarding the utility of MR on the basis of the cost involved in conducting the research and the benefits expected to accrue from it.
TUTOR-MARKED ASSIGNMENT
i. Conducting marketing research (MR) involves some costs. What are these costs?
ii. What are the areas in which marketing research is applied to?
iii. Despite best research effort, the outcome of a research can still be unpredictable. Explain, if possible with a case study.
REFERENCES/FURTHER READING
Enis,Ben M. (1980). Marketing Principles. California: Goodyear
Publishing Company.
Ferber, Robert (ed.) (1974). Handbook of Marketing Research. New
York: McGraw-Hill Book Company.
Kotler, Philip (1987). Marketing Management: Analysis, Planning and
Control. New Delhi: Prentice-Hall of India Private Limited.
Luck, D.J.; Wales, H.G.; Taylor, D.A. and Rubbin, R.S. (1978).
Marketing Research. New Delhi: Prentice-Hall of India Private Limited.
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