Project Of Marketing Management 64131k
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Submitted for the first year of
Master of management studies By Ms. Shinde Nayana S. Mr. Meshram Tushar G. Mr. Ghanekar Sameer J. Mr. Karval Vinod P. Ms. Ghanekar Kavita G.
Under the guidance of DR. C. SATYANARAYANA
YADAVRAO TASGAONKAR SCHOOL OF BUSINESS MANAGEMENT BHIVPURI ROAD, KARJAT 410 201.
UNIVERSITY OF MUMBAI
Marketing research & MIS
OCT 2009-2010
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Marketing research & MIS
ACKNOWLEDGEMENTS We desire to express our sense of profound gratitude to all those personalities who have contributed their best efforts in helping us through the proceedings in our project work. With immense pleasure, we would like to express our deepest sense of indebt ness to our guide professor “DR.C.SATYANARAYANA” for his esteemed guidance, co-operation. We would also like to thank our parents who have ed us financially as well as morally. Without the of all these personalities, our project would not have been successfully completed.
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Marketing research & MIS
INDEX Sr. no.
Particulars
1
Introduction and Definition
2
Features of Marketing Research
3
Objective of Marketing Research
4
Need of Marketing Research
5
Functions of Marketing Research
6
Advantages of Marketing Research
7
Limitations of Marketing Research
8
Branches of Marketing Research
9
Method of Conducting Marketing Research
10
Definition of MIS
11
Function of MIS
12
Characteristics of MIS
13
Sources of MIS
14
Advantages of MIS
15
Components of MIS
16
Difference between MIS and MR
17
Sampling- Planning and Deg
18
Features of Sampling
20
Advantages of Sampling Method
21
Limitations of Sampling Method
22
Steps in Sampling Process
23
Sampling Methods
4
Pg.no
Marketing research & MIS 24
Marketing Research Process
25
Marketing Research on Preference of Consumers
26
Questionnaire
27
Analysis
28
Conclusion
29
References
5
Marketing research & MIS
INTRODUCTION
OF
MARKETING
RESEARCH: Marketing Research comprises of two words ‘Marketing’ and ‘Research’. To understand the role of Marketing Research, it is essential on our part to thoroughly understand the basic concepts of Marketing Management.
In the Marketing Management the entire emphasis is on
Customer. The entire function of Marketing revolves around customer. In the Management theory Customer has been perceived as a ‘King” or the ‘Boss’ for whom everything is being done by the business. In marketing research, specific marketing problem is studied in depth by collecting and analyzing all relevant information and solutions are suggested to solve the problem which may be related to consumer, product, market competition, sales promotion and so on. Marketing research facilitates accurate marketing decisions for consumer satisfaction on the one hand and sales promotion on the other hand. It is rightly treated as the SOUL of modern management.
DEFINITIONS OF MARKETING RESEARCH According to AMERICAN MARKETING ASSOCIATION: “ The systematic gathering, recording and analyzing of data about problems relating to the marketing of goods and services” According to PHILIP KOTLER: “Marketing research is systematic problem analysis, model building and fact finding for the purpose of improved decision making and control in the marketing of goods and services.” According to RICHARD D. CRISP: “Marketing research is the systematic, objective and exhaustive search for and study of the facts relevant to any problem in the field of marketing.”
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Marketing research & MIS
FEATURES OF MARKETING RESEARCH: 1) Systematic and continuous process: Marketing research is a continuous process. One type of research is not adequate to resolve all marketing problems. A marketing company has to conduct marketing research regularly for its survival & growth in the present dynamic marketing environment. 2) Wide/comprehensive in scope/wide application: Marketing research is wide in scope as it deals with all aspects of marketing of goods and services. Introduction of new products, identification of potential markets, selection of appropriate selling techniques, study of market competition, introduction of suitable advertising strategy and sales promotion measures are some areas covered by marketing research. 3) Emphasizes on accurate data collection and critical analysis: In marketing research, required data should be collected objectively and accurately. The data collected must be reliable. It should be analyzed in a systematic manner. This will provide comprehensive picture of the situation and possible solutions. 4) Offers benefits to sponsoring company and consumers: It raises the turnover and profit of the company. It also raises the competitive capacity and creates goodwill in the market. It enables a company to introduce consumer oriented marketing policies. 5) Commercial equivalent of military intelligence: Marketing research is the commercial intelligence activity. It is similar to military intelligence where systematic study is made before taking any military action. MR acts as the intelligence tool of marketing management. 6) Tool for managerial decisions: Marketing research acts as a tool in the hands of management for identifying and analyzing marketing problems and finding out solutions to them. It is an aid to decision making. MR is an aid to judgment and never a substitute for it.
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Marketing research & MIS 7) Applied type of research: Marketing research is applied knowledge. It studies specific marketing problem and suggests alternative solutions and possible outcome of each alternative. 8) Reduces the gap between the producers and consumers: It is useful for understanding the needs and expectations of consumers. It reduces the gap between produces and consumers and adjusts the marketing activities to suit the needs of consumers. 9) Not an exact science: Marketing research is both science and an art. It collects information and studies marketing problem in a scientific manner. The information collected is also applied to real life problem. However, MR is not the exact science. It only suggests possible solutions and not the exact solution to marketing manager for consideration and selection. 10) Use of different methods: Marketing research can be conducted by using different methods. Data can be collected through survey or by other methods like observation method or experimentation method. Even computers and internet are used for data collection. The researcher has to decide the method suitable for his research project. 11) Dynamic character: Marketing research is dynamic in nature. Its scope is fast expanding along with the new developments in the field of marketing. 12) Closely connected with marketing information system: Both the concepts are interrelated. In fact, MR is one component of MIS. Both are useful for solving marketing problems and for accurate and quick decision making in the field of marketing.
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Marketing research & MIS
OBJECTIVES OF MARKETING RESEARCH: •
To study the need, wants and expectation of consumers.
•
To find out reactions of consumers to the products of the company.
•
To evaluate company’s sales promotion measures for suitable adjustment and improvement.
•
To study current marketing problems and opportunities for suitable follow-up actions.
•
To suggest the introduction of new products, modifications of existing products and to discover new uses of existing products.
•
To design and test appropriate packages, brands of company’s products.
•
To study existing pricing, channels of distribution and market competition for suitable changes, if necessary.
•
To find out methods for marketing the products of the company popular and raising its goodwill and market reputation.
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Marketing research & MIS
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Marketing research & MIS
INCREASING NEED OF MARKETING RESEARCH: The following factors/points suggest increasing need of MR: Growth and complexity of markets:
1.
The marketing activity is becoming increasingly complex and broader in scope as more firms operate in domestic and global markets. Manufacturers find it difficult to establish close with all markets and consumers directly. Similarly, they have no control on the marketing system once the goods are sold out to middlemen. This situation creates new problems before the manufacturers which can be faced effectively through MR as it acts as a feed-back mechanism to ascertain first hand information, reactions, etc. of consumers and middlemen. Wide gap between producers and consumers:
2.
Marketing research is needed as there is a wide gap between producers and consumers in the present marketing system. Due to mass scale production and distribution, direct (personal) between producers and consumers is practically lost. Producers do not get dependable information as regards needs, expectations and reactions of consumers. They are unable to adjust their products, packaging, prices, etc. as per the needs of consumers. The problems creates due to information gap can be solved only through MR as it is possible to establish with consumers and collect first hand information about their needs, expectations, likes, dislikes, preferences and special features of their behavior. Changes in the composition of population and pattern of
3.
consumption: In India, many changes are taking place in the composition of population. There have been considerable changes in the consumption and expenditure patterns of consumers because of urbanization. The incomes of 11
Marketing research & MIS the people, in general, are rising. This brings corresponding increase in their purchasing capacity and buying needs and habits. MR is needed for the study of changes in the pattern of consumption and corresponding adjustment in the marketing planning, policies and strategies. Growing importance of consumers in marketing:
4.
Consumers occupy key position in modern marketing system. They are now well informed about market trends, goods available, consumer rights and protection available to them through consumer protection acts. Even growing customers expectations create situation when manufacturers have to understand such expectations and adjust the production policies accordingly. MR particularly consumer research gives valuable data relating to consumers this data use to framing marketing policies. Shift of competition from price to non-price factors:
5.
Cut-throat competition is unavoidable in the present marketing field due to various factors such as price, quality, packaging, advertising and sales promotion techniques. MR is needed as it offers guidance in this regard. A manufacturer can face market competition even by using certain non-price factors. The shifting of competition from price to non-price factors has made marketing of consumers goods more complicated and challenging. This challenge can be faced with confidence by using certain measures suggested through marketing research. 6.
Need of prompt decision making: In competitive marketing, marketing executives have to take quick and
correct decisions. Moreover, wrong decisions may bring loss to the organization. For correct decision- making, marketing executives need reliable data and up-to-date market information. Here, MR comes to the rescue of marketing managers. Problems in marketing are located, defined, analyzed and
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Marketing research & MIS solved through MR technique. MR is needed as a tool for reasonably accurate decision making in the present highly competitive marketing system. 7.
Recent developments in science and technology: Science and technology are making rapid progress. In fact, the impact
of such progress touches all aspects of commercial and industrial activities. Consumers prefer new/novel articles in place of old ones. Producers and distributers find it difficult to take decisions due to lack of knowledge about future market trends. Here, marketing research is useful as it provides information about future trends in the marketing field and enables marketing managers to take quick and correct marketing decisions. The factors noted above clearly suggest the growing need of MR in the present consumer-oriented marketing system. It is needed in order to reduce the risks and uncertainties in the marketing activities.
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Marketing research & MIS
•
FUNCTIONS OF MARKETING RESEARCH: MR performs five basic functions. These functions are related to the
research project undertaken. Usually, every research study performs the functions as explained below: 1.
Description: MR provides data and gives information/description of customers
who buy the product. This includes information about their age/sex, education, income and the amount of money which they are willing to spend on the product. Description of the customers is useful in order to draw certain conclusions about the customers and their buying behavior. 2.
Evaluation: MR is useful for understanding the views/reactions of the buyers.
This includes views of consumers on packaging/ advertising/ sales promotion measures used. A manufacturer gets these details as well as the information about his product in comparison with the products of his competitors. This facilitates evaluation of the marketing policies. 3.
Explanation: MR gives explanation to certain questions of a manufacturer related
to decline in sales, retailers negative reaction or resistance of consumers in a particular marketing area.MR enables a manufacturer to understand why sales are reducing (causes) or why the response of the retailers is negative or why consumers in a particular region are not willing to purchase a specific project.
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Marketing research & MIS 4.
Prediction: MR conducts prediction function. Such predictions may be related
to consumers, market environment, market competition, possible socioeconomic changes and so on. This prediction function enables a manufacturer to understand how much people will spend on the specific product in the next year or the fashions which consumers may prefer in next year. In brief, MR is useful for understanding the marketing environment likely to develop in future. The prediction function is important even when all predictions made through research studies may not prove to be fully correct. However, the trend indicate can be used for appropriate policy decisions.
5.
Aid in Decision-making: MR guides the manufacturer as regards the manner in which he can
make
effective
advertising
appeal
or
create
incentive
among
his
salesmen/distributors. It also gives him guidance as regards price fixation and sales promotion techniques which will be useful for the future period. These functions facilitate reasonably correct decision-making by marketing managers. In brief, the basic function of MR is to marketing decisionmaking process. MR does not provide ready-made decisions or exact solutions on all marketing problems. It only provides the clues or possible solutions which should be taken into consideration in the decision-making process. It provides to skills and abilities of marketing managers. The different functions of MR are supplementary in character. These functions enable a manufacturer to keep close touch with the marketing situation and enable him to make suitable changes in his marketing policies and programmes.
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Marketing research & MIS
ADVANTAGES / BENEFITS OF MARKEING RESEARCH: 1.
Indicates current market trends: MR keeps business unit in touch with the current market trends
and offers guidance for facing market situation with confidence. 2.
Pinpoints deficiencies in marketing policies: MR pinpoints the deficiencies as regards products, pricing,
promotion, etc. It gives guidance regarding different aspects of marketing. They include product development, branding, packaging and advertising.
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Marketing research & MIS 3.
Explains customer resistance: MR is useful for finding out customer resistance to company’s
products. Remedial measures are also suggested by the researcher to deal with the situation. This makes the products and marketing policies agreeable to consumers. 4.
Suggests sales promotion techniques: MR enables a manufacturer to introduce appropriate sales
promotion techniques, select most convenient channel of distribution, suitable pricing policy for the products and provisions of discounts and concessions to dealers. MR facilitates sales promotion. 5.
Offers guidance to marketing executives: MR offers information and guidance to marketing executives while
framing marketing policies. Continuous research enables a company to face adverse marketing situation boldly. It acts as an insurance against possible changes in market environment. 6.
Facilitates selection and training of sales force: MR is useful for the selection and training of staff in the sales
organization. It also suggests the incentives which should be offered for motivation of employees concerned with marketing. 7.
Promotes business activities: MR enables a business unit to grow/expand its activities. It creates
goodwill in the market and also enables a business unit to earn high profits through consumer- oriented marketing policies and programmes.
8.
Facilitates appraisal of marketing policies: Research activities enable business executives to have an appraisal
of the present marketing policies in the light of finding of research work.
17
Marketing research & MIS Suitable a adjustments in the policies are also possible as per the suggestions made by the researchers. 9.
Suggests new marketing opportunities: MR suggests new marketing opportunities and the manner in which
they can be exploited fully. It identifies emerging market opportunities. 10.
Facilitates inventory study: MR is useful for the evaluation of company’s inventory policies
and also for the introduction of more efficient ways of managing inventories including finished goods and raw materials. 11.
Provides marketing information: MR provides information on various aspects of marketing. It
suggests relative strengths and weaknesses of the company. On the basis of such information, marketing executives find it easy to frame policies for the future period. MR provides information, guidance and alternative solutions to current marketing problems. 12.
Suggests appropriate distribution channels: MR can be used to study the effectiveness of existing channels of
distribution and the need of making suitable changes in the distribution system. 13.
Provides information on product acceptance: MR helps in knowing the probability of acceptance of the
product in its present form. It is also useful for the introduction of modifications in the existing product line of a firm. 14.
Creates progressive outlook: MR generates a progressive and dynamic outlook throughout the
business organization. It promotes systematic thinking and a sense of professionalization within the company. It also creates enthusiasm among
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Marketing research & MIS marketing executives. This brings success and stability to the whole business unit.
15.
Has wider social significance: MR is of paramount importance from the social angle. It is the
means by which the ultimate consumer literally becomes king of the market place, with his desires, prejudices and every whim transmitted to the producer and distributor. In brief, MR has wider social significance. It is useful to all parties involved in the process of marketing.
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Marketing research & MIS
LIMITATIONS
OF
MARKETING
RESEARCH: MR itself is not complete/perfect in all respects. It deals with marketing environment which itself is flexible. Even the actions/reactions of consumers are different under different situations. This brings limitations: 1.
MR offers suggestions and decisions: MR is not a substitute for decision-making process. It only offers
possible suggestions/solutions to marketing problems. It guides marketing managers in taking balanced, result-oriented and rational decisions. MR offers predictions but they are not necessarily accurate or perfect. MR only provides indicators. MR aids managerial decision-making but it cannot replace judgment and experience of marketing executives/managers. MR is not always the only source of information to be used for marketing decisions. 2.
MR cannot predict accurately: In MR, efforts are being made to estimate or predict the possible
future situation. However, the results/conclusions arrived at may not be complete, perfect or accurate. They predict possible tendencies but not certainties. This is because market environment is ever changing, consumer behavior is difficult to estimate correctly and reliable data for research purpose may not be available. As a result, the decisions taken and policies framed on the basis of such research studies may not be accurate and useful for solving current marketing problems. 3.
MR conclusions are not dependable:
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Marketing research & MIS There are many who are skeptics of MR. Their criticism is that MR conclusions are not dependable. There are examples where the research failed to deliver desired results or a product failed even when the research had shown promising market demand and consumer . 4.
MR cannot study all marketing problems: MR is rather very wide in scope. However, it cannot study all
marketing problems particularly where it is difficult to collect relevant data. Even it is not useful for dealing with urgent marketing problems where quick decisions and follow-up actions are necessary. Thus, all marketing problems are not researchable and all research problems are not answerable.
5.
Resistance by marketing executives: Researchers study marketing problems and offer information and
guidance to marketing executives in their decision-making process. However, some executives are reluctant to use the solutions suggested by the researchers. They feel that such extensive use will act as a threat to their personal status. Findings of the research work may bring them in difficulties if the policy-decisions taken accordingly prove to be wrong. 6.
Lengthy and time-consuming activity: MR is a lengthy and time consuming activity. It involves various
stages/steps which need to be completed in an orderly manner. It is not desirable to conduct research work is a haphazard manner. MR is not useful for dealing with urgent marketing problems. Moreover, research work cannot be conducted overnight and marketing decisions cannot be postponed till the research work is completed. 7.
MR is a costly affair: MR is costly as research work requires the services of experts
with knowledge, maturity and skill. Such experts include economists, management scientists, statisticians, psychologists and computer (software)
21
Marketing research & MIS experts. Advanced training in economics, computer technology, psychology, sociology, etc. is also necessary on the part of research staff. 8.
Non-availability of qualified staff: For scientific MR, professional marketing researchers with proper
qualifications, training and experience are necessary. Research work is likely to be incomplete/unreliable in the absence of such expert staff. Companies find it difficult to have the services of such expert staff. Research activities are conducted in limited areas due to non-availability of property qualified staff. Such staff includes statisticians, psychologists, sociologists, economists and computer experts. 9.
Complexity of the subject: MR fails to give complete and full proof solutions to
management. This is because MR itself is not an exact science. It is concerned with the study of human beings and human behavior is always difficult to predict. Errors in drawing conclusions are possible due to this human element in MR activities. Errors in the research studies are also possible due to uncertainty of human behavior and also because of non-availability of reliable data. 10.
Changing behavior of consumers: Consumer is the focal point in MR. However; his buying motives
are difficult to judge precisely and accurately. This brings some sort of uncertainty in conclusions drawn from research activity. The findings of the research work (in case of consumer research) may not prove to be accurate. 11.
Limited practical utility: MR is regarded as an academic exercise. It is often been delinked
from the business strategy. As a result many research reports become ‘academic’ in nature and are ‘field’. Researchers take more interest in concluding research work rather than in supplying information and guidance to marketing managers in the decision-making process.
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Marketing research & MIS 12.
ive nature: MR is ive by its nature. Sometimes, it becomes too
superficial and faulty in business management. Many conclusions drawn from the MR activities may be imaginary or not based on realities. Its use and effectiveness largely depend on the ability of marketing executives to get the most promising results out of it. MR by itself may not give any benefit. It only shows the way to executives in the decision-making process. 13.
Fragmentary approach: On many occasions, MR tends to be fragmentary in its approach.
It suggests solution which may be difficult to put into operation. This is because overall marketing environment is not given adequate attention while suggesting the solution. Such fragmentary approach is not useful for solving marketing problems in an integrated manner. 14.
Absence of affective communication: The research activity will be useful and result-oriented only
when there is meaningful dialogue between the marketing management and MR team. However, such dialogue is ineffective in many organizations. This makes research activity ineffective. The limitations of MR do not suggest that it is a redundant activity or an activity without any practical utility. It only suggests that the MR activity should be conducted with proper care and caution.
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Marketing research & MIS
IMPORTANT
BRANCHES
OF
MARKETING
RESEARCH 1) Product Research: Product research relates to products which are to be marketed to consumers. It is useful for introducing new product which will be agreeable to consumers. Product research relates to various aspects such as design, development and introduction of new products, testing of existing products, product modification studies and so on. 2) Packaging Research: Packaging research is a part of product research. It is important for making the product attractive and agreeable to consumers. Packaging is now treated as a tool for sales promotion. Constant changes in package design are required for sales promotion. For innovation in the package design, packaging research is necessary. Branding and packaging normally go together and hence brand research is treated as a part and parcel of packaging research. 3) Pricing Research: It relates to analysis of pricing policies and strategies, studies of market price trends, fixation of market prices, studies relating to price charged by competitors, price incentives for sales promotion and provision of price discount and other price concessions to dealers and consumers. 4) Market Research: It relates to analysis of consumer markets, assessment of market trends, forecasting of business conditions, studies of wholesale marketing, market competition studies, sales forecasting, estimating demand for new products and monitoring competitive marketing activities. 5) Sales Research: It relates to studies of sales outlets, sales territories and their revision, trends in sales, sales forecasting, sales policies, sales performance and so on.
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Marketing research & MIS 6) Promotion and Distribution Research: Promotion research relates to assessing effectiveness of the sales force and selling efforts, effectiveness of advertising campaigns. It also includes the study of channels of distribution for modification for modification, distribution cost analysis of the physical distribution, inventory control and handling of goods 7) Consumer Research: It relates to finding out consumers needs and preference, consumers purchasing intentions, consumers choice of brands, trends in consumer preference and purchasing patterns. 8) Policy Research: It is related with the evaluation of effectiveness of marketing policies, sale policies, distribution policies, pricing policies, inventory policies and so on. 9) Advertising Research: It relates to evaluation of advertising effectiveness, analyzing competitive advertising and selection of appropriate advertising media. Media research, copy research, corporate research are included within the scope of advertising research. 10) Media Research: Different media are used for communicating message about the products to prospective buyers. Media are used for advertising and publicity purpose. Newspaper, TV, magazines are used for advertising. Media research relates to detailed study of different media for selection and use. 11) Motivational Research: It is one aspect of consumer research as it deals with consumer behavior. Consumer research is useful for finding out the sentiments, buying motives, priorities and inner feelings of consumers. 12) International Marketing Research: It deals with foreign markets which are attractive and profitable provided products and marketing activities are adjusted as per the need of foreign markets and buyers. Data collections about foreign markets, market surveys, etc. are undertaken under international marketing research. Such research is costly and time consuming as compared to internal research. 25
Marketing research & MIS
METHODS OF CONDUCTING MARKETING RESEARCH It is classified into following four categories: 1) Desk Research: In desk research, the required information for research work is collected from published and other written sources of the collection secondary data. Desk research is a type of in-house research. 2) Field Research/investigation: In this method, the required information is collected from the consumers, dealers and others connected with marketing through personal interviews, etc. In addition, consumer’s surveys are also conducted for this purpose. The data collected from such field investigation are called primary data. 3) Observation Method: In observation method, the required information is collected through actual physical observation of one or more phenomena under study. This method is also useful for the collection of primary data. 4) Experimentation Method: Here the required information is collected through a small scale experiment under controlled conditions. It is also used for primary data collection.
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Marketing research & MIS
MARKETING INFORMATION SYSTEM (MIS)
WHAT IS MIS? Marketing information system s marketing decision making and marketing planning. It facilitates quick marketing decision making and thereby raises marketing excellence. Even after collecting all required information, the decisions are to be made by marketing executives. MIS is an essential system for developing marketing decisions, plans and strategies. Information is critical for a firm’s survival and competitive edge in the marketing field. Information network serves as key resource in all aspects of life including business and marketing. Required information needs to be collected, arranged and stored systematically for reference purpose. This is what is achieved through MIS. In order to achieve marketing objective, correct decision must be taken and correct decision making is possible when reliable, up to date and adequate information is made available regularly.
DEFINITIONS OF MARKETING INFORMATION SYSTEM: According to MR.COX AND GOOD “A set of procedures and methods for the regular and planned collection, analysis and presentation of information in making marketing decisions.” According to MR.WILLIAN STANTON “Marketing information system (MIS) is an ongoing, organized set of procedures and methods designed to generate, analyze, store, and retrieve information for use in making marketing decisions.”
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Marketing research & MIS
FUNCTIONS OF MARKETING INFORMATION SYSTEM: 1)
Assembling of information or relevant marketing data through
internal and external sources. Such data act as a raw material of MIS. 2) Processing of information i.e. editing, tabulating and summarizing the data collected for the purpose of ready reference and critical analysis. 3) Analyzing the data collected which is essential for drawing conclusions for decision making. 4) Storing of data collected i.e. filing and indexing of information collected so that it can be made available for use when required. 5) Evaluating the data i.e. finding out accuracy and reliability of the data collected. 6) Disseminating relevant information to decision makers, i.e. Marketing Managers. 7) Updating the information collected periodically by discarding outdated data and incorporating new data available. 8) Introducing updated information technology in the collection processing and storing of information collected.
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Marketing research & MIS
CHARACTERISTICS
OF
MARKETING
INFORMATION SYSTEM: 1) Continuously operated process: MIS is a consciously developed technique for the flow of information to the company. It operates continuously. Regular flow of information acts as a in decision making. It is an ongoing process as new information is added to the old one in a continuous manner. 2) Facilitates prompt and correct decision making: MIS provides updated information on various aspects of marketing to managers or executives. As a result, managers are aware of new marketing developments taking place. They are also in apposition to take prompt decisions from time to time due to the provided by MIS. It acts as a data bank for the benefit of marketing managers. 3) Future oriented: MIS provides information about possible future problems and their solutions through appropriate marketing decisions. It acts as a preventive mechanism in marketing management and offers guidance to marketing executives. 4) Provides continuous information on marketing developments: MIS collects and provides information on marketing to concerned executives. It goes to right people at the right time. In other words, it provides right information at the right time to right people for decision making. As a result, decision-making process becomes accurate and quick. 5) Acts as a link between external environment and internal resources: It provides updated information about external marketing situation and facilitates suitable adjustment in the internal resources to face the overall situation effectively. 6) Operates in a systematic manner: MIS operates in a rational and systematic manner. This is necessary for quick reference to required information. Proper system in the
29
Marketing research & MIS collection and storing of information is necessary as varied type of information is now easily available. Such information has to be stored after due classification. In brief, MIS needs well prepared operational system for raising its utility and efficiency. 7) Uses modern technologies: New techniques and machines are available for collection, processing and storage of information. MIS is now becoming costly and also needs the service of technically qualified staff (software experts).MIS is now based on advanced technology. It is a computer based method of data collection, processing and storage. Due to the use of computers updated information is provided to executives easily and quickly.
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Marketing research & MIS
• SOURCES OF MARKETING INFORMATION SYSTEM: Information is the base of MIS. Such information is collected from different
sources which includes internal and external.
Internal Sources of Information: 1) Old statistical records of the company. 2) Sales invoices and sales statistics. 3) Sales force records. 4) Production statistics. 5) ing data. 6) Financial records. 7) Departmental budgets and reports. 8) Old research and surveys. 9) Periodical progress reports. 10) Director’s report and committee reports. External Sources of Information: 1) Trade journals and periodicals. 2) Business press i.e. Economics Times, Financial Express, etc. 3) Census reports and other government publications on business, finance, marketing, exports, etc. 4) Publication of trade associations and other agencies concerned with finance, trade, commerce and industry. 5) Publication of RBI, financial institutions, term lending institutions and government departments. 6) Publications and survey report of World Bank, WTO, FAO, etc. 7) Published survey reports and statistical data.
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Marketing research & MIS 8) Special reports, surveys conducted by marketing research agencies, magazines, advertising agencies etc. 9) Publications of stock exchanges, commodity exchanges and export promotion councils. 10) Daily press, reports and information.
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Marketing research & MIS
•
ADVANTAGES OF MARKETING INFORMATION SYSTEM:
1)
Provides updated and timely information for decision-making: MIS provides information about various aspects of marketing.
Information acts as a and facilitates correct decision making by marketing managers. Problems are solved at the initials stages through suitable preventive measures. 2)
Facilitates monitoring of marketing operations: Data on different aspects of marketing can be collected and stored
through MIS. This helps easy and effective monitoring of the performance of products, markets etc. 3)
Raises efficiency of decision making: Integrated and updated marketing information may not be available
easily and quickly in large companies with many departments. However separate arrangement can be made for collection, evaluation and storage of such information through efficient MIS. 4)
Facilitates quick reference: Easy and quick reference to old information is possible due to MIS.
Quick reference to old information is due to modern computer techniques. 5)
Promotes marketing excellence: It is rightly said that to manage a business well is to manage its future
and to manage the future is to manage information. Marketing decisions will be accurate when they are based on dependable information. Thus, MIS gives the benefit in the form of marketing excellence. 6)
Facilitates tapping of marketing opportunities: MIS facilitates tapping of promising marketing opportunities and
effective defense against marketing problems and threats likely to develop in the future. Both benefit stability and prosperity.
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Marketing research & MIS
COMPONENTS OF MARKETING INFORMATION SYSTEM: 1) Internal Marketing Information: This component of MIS provides information from within the organization itself i.e. through the ing system on sales, inventories, cost, cash flows and old records. All such data provides information for marketing decision making. All such data are available within the firm and hence these sources are called internal sources of marketing information. Marketing managers use this internal source as the information is available easily and quickly. For easily availability of internal information, filing and record keeping system must be efficient. 2) Marketing Intelligence: This component provides information
on external marketing
environment. Information is collected from external sources. It provide information regarding current marketing environment and changing conditions in the market. This information is available through census data, weekly and monthly reports on markets and market news published in magazines and trade journals etc. Market intelligence acts as a mirror of marketing environment and provides appropriate decision making on marketing. 3) Marketing Research (MR): In this component, specific marketing problem of the firm is selected for investigation. Data regarding the problem is collected, tabulated analyzed and conclusion is drawn. Suitable policy measures are recommended in order to solve the problem. 4) Market Information Analysis: Information gathered by the company’s marketing intelligence and marketing research systems often requires more detailed analysis. With from market information analysis managers can make better marketing mix decisions, design sales territories, select site for retail outlets and forecast new product sales.
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Marketing research & MIS
DIFFERENCE BETWEEN MIS AND MR:
1) Meaning
2)Nature concept 3)Information provided
4)Purpose
5) Coverage
Marketing Research (MR) MR is the systematic gathering, recording and analyzing of data relating to the marketing of goods and services. of MR is a narrow concept as MR is one of the components of MIS. MR provides precise and properly analyzed information regarding a specific marketing problem with a view to solving that problem. The purpose of MR is to study a specific marketing problem in depth and to solve it quickly and also in satisfactory manner. MR collects information relating to specific marketing problem under investigation.
6) Operational MR is conducted on method problem by problem or project by project basis with each project having a starting and ending point. 7) Use computer
8) Type orientation 9)
of It’s a non computer based system. However, computers may be used tabulating data or while analyzing the information collected. of MR is past-oriented.
Marketing Information System(MIS) MIS is a set of procedures and methods used for the regular and planned analysis and presentation of information for marketing decision-making. MIS is a broad concept. Its purpose is to collect information on all aspects of business. MIS provides information on various aspects of marketing in order to frame marketing policies and marketing decisions. The purpose of MIS is to provide relevant and reliable information to all departments and facilitates quick and correct decisionmaking. MIS collects information on various aspects of marketing such as products, consumer needs, market competition and sales. MIS is a continuous system and information is collected, analyzed used and stored in a regular and continuous manner. MIS is a computer based process as a computer technology is extensively used while collecting, analyzing and storing the information collected. MIS is future-oriented.
Every company may or Companies 35
make
Marketing research & MIS Organizational structure.
may not maintain department.
MR arrangements for the collection and storage of information through MIS. 10) Frequency of In MR data collection is not In MIS data are collected data collection. continuous but only as per regularly on different the research projects marketing aspects in which undertaken. the firm is interested. 11) Sources of In MR, external sources In MIS, external as well as data used: such as surveys and census internal sources are used reports are used for data for data collection. collection.
SAMPLING 36
Marketing research & MIS
PLANNING AND DEG THE SAMPLE: In MR, primary data cannot be collected from each and every dealer/consumer as this is costly and time-consuming. The better alternative is to select a representative sample and to collect information from such selected individuals called sample. The information collected from the sample will be applicable to the entire group but the collection will be quick and economical. Sampling is based on the law of statistical regularity and the law of inertia of large numbers. It is a process of selecting a small representative group from the whole for intensive study purpose. A sample is a part of the whole and is representative in character. It refers to a selected number of individuals chosen from the whole group/population with a view to obtaining information and drawing conclusions. Naturally, the conclusions applicable to the sample are also applicable to the whole universe. This is how reliable data can be collected quickly and economically through sampling. Moreover, sampling facilitates collection of information this is sufficiently adequate for survey purpose. Sampling methodology is the foundation of the research design. It has a key role to play in a systematic and objective marketing survey. According to Crisp R. D., the fundamental idea of sampling is that “if a small number of items or parts (called a sample) are chosen at random from a large number of items or a whole (called a universe or population) the sample will tend to have the same characteristics and to have them in approximately the same proportion as the universe.”
FEATURES OF SAMPLING:
37
Marketing research & MIS 1. Sampling is a small representative of the whole. It is an effective alternative to the census survey.
2. Sampling reduces the time, efforts and money of the researcher on data collection without any adverse effect on its quality.
3. The sampling technique is based on the assumption that random selection of sample from the universe do possesses the same features and characteristics as that of the universe.
4. The findings of sample survey are accurate and reliable. The large sample is better as the results available are more accurate.
5. Sampling is used in data collection as well as for different purposes in our daily life.
38
Marketing research & MIS
ADVANTAGES OF SAMPLING METHOD: 1. Saves time and money:
Sampling facilitates primary data collection easily, quickly and with less cost. It is time saving and economical method of survey for data collection. 2. Provides reliable data:
The conclusions drawn from the sample survey are reliable, accurate and also applicable to the whole population/universe. Sampling has no adverse effect on the quality of data collected. It gives quality results with lesser volume of work. 3. Scientific base:
The concept of sampling has scientific backing as it is based on the law of statistical regularity and the law of inertia of large numbers. 4. Popular and extensively used technique in MR:
The concept of sampling is quite common and popular in MR as it helps researchers to finalize their findings and recommendations within a short period. 5. Facilitates better supervision on data collection:
39
Marketing research & MIS Sampling method is restricted to limited number of respondents. Naturally effective monitoring and supervision on the data collection work is possible. This improves the quality of data collected.
LIMITATIONS OF SAMPLING METHOD: 1. Findings may not be accurate:
The findings and collection drawn from sample survey may not be as available from the census technique in which the entire population is covered. The accuracy is comparatively less. 2. Findings may not be reliable:
The findings may not be reliable if the sample selected is too small or is not adequately representative in the character. In such case, the conclusions drawn may be misleading and this may affect the quality of research work. 3. Difficulties in the selection of representative sample:
There are many practical difficulties in the selection of representative sample. This may defeat the very purpose of sampling. 4. Findings are not completely accurate:
40
Marketing research & MIS The findings of sampling method are reasonably accurate but not completely accurate. 5. Data collection difficult in the case of large sample:
Data collection become difficult when large size sample is decided. This also leads to more time and money for data collection.
SAMPLING PROCESS/STEPS IN SAMPLING PROCESS: The sampling process consists of various steps involved in selecting an appropriate sample. The work of sampling process starts with defining/deciding the data needs of the research projects and ends with final selection of sample for actual use. A detailed plan for the selection of appropriate sample is the sampling process which is lengthy and time consuming. The following steps are involved in the sampling process: 41
Marketing research & MIS 1. Deciding the data needs of research project:
Here, it is necessary to define the data requirements of proposed research project. For this, the research problem needs to be studied properly. Deciding the data needs of the project is the first and basic step in the sampling process. 2. Deciding the area to be covered by survey work:
In this step, the area to be covered by the survey work needs to be decided clearly. Population and sample size relate to the area decided for the survey work. However, the decision in this regards should be firm and final. 3. Defining the population:
Here, the total population from which the sample is to be selected will be decided. The total population may be different for different survey work. The researcher has to decide the population in of elements, sampling unit, time available and so on. For example, for the specific survey, the population may be all girls in the group of 18 to 22 within the sampling area which may be decided as Mumbai city. The time period for the sample/survey may be from 15th October 2006 to 15th January 2007. 4. Deciding the sample frame:
The sample frame for the survey should be proper. Every element of the population should be represented only once. Attention should be given to adequacy, accuracy, completeness and convenience before deciding the sample frame.
5. Determining the desirable sample size:
The sample size should be decided in a fair manner. It should not be too large or too small. It should be as per the requirements of the research work. Here, adequate attention should be 42
Marketing research & MIS given to various factors such as data needs of the project, the statistical method to be used for analysis of data, the method of sampling to be used and the availability of time, money and other resources. 6. Selecting the sampling method:
Methods of sampling are varied and broadly divided into two categories-probability sampling and non-probability sampling. Any suitable and convenient method should be selected for sampling purpose. 7. Drawing
samples
and
obtaining
data
from
the
selected
respondents: Here, the final selection of the sample is to be made from a well defined population. The sample selected should be of suitable size. It should be selected through suitable method. After making all such preparations, the researcher should select the field staff for the collection of data. They include interviewers, supervisors and others. This will enable them to act efficiently and collect the required information within the time schedule prepared.
43
Marketing research & MIS
SAMPLING METHODS/SAMPLING DESIGNS: Sample designs are different methods used for the conduct of sample survey. Quota sampling, judgment sampling etc. are the nonprobability sample designs while random sampling, area sampling, etc. are the probability sample designs. In brief, the sample designs are divided into the following two categories: 1. Probability Sampling Methods, and 2. Non-Probability Sampling Method.
1. Probability/Random Sampling Methods:
In the probability sampling methods, the sample units are selected at random. Every member in the universe has equal chance of being selected as the representative. The selection of sampling items is impartial and independent of the person making the study. There is no scope for any biased selection of sample units. Probability sampling methods include random sampling, stratified, cluster, sampling, etc. Such methods are used extensively in marketing research. Greater statistical competence and time are required to plan and probability sampling methods. 2. Non-probability Sampling Methods:
Here, sample units are selected in a non-random manner. The selection may be purposive. It may be based on the convenience or the judgment of the researcher. Every item is not given a definite chance of being included in the sample. The non-probability sampling methods include convenience sampling, judgment sampling and quota sampling. In these methods, the sample is selected in a subjective manner and the decision regarding sample is taken by the researcher himself.
44
Marketing research & MIS Non-probability sampling methods are also used in marketing research along with probability methods. Such methods are sometimes preferred because they cost less per observation, required less time and need relatively little statistical sophistication in planning the sample design and in the selection the respondents.
MARKETING RESEARCH PROCESS •
Details of steps in MR process:
1. Identifying and defining a marketing problem: The First step/ starting point in the MR process is to identifying the marketing problem which needs to be studied in depth and solved. The research process will start only when the marketing problem is identified clearly. 2. Conducting preliminary survey: The marketing team may suggest many marketing problem which they face. All marketing problems are not researchable and hence such preliminary survey is necessary. 3. Determining research objectives: The objective decided should be specific, measurable and also attainable. The research objectives decided act as a guide to the researcher and help him in maintaining a focus on the whole research project. 4. Creating research design: The research design is a plan /blueprint of the whole research work to be undertaken. It gives all details of the research project and acts as a reference document during the execution of research project. The research design indicates the method of research, the instruments to be used for the research, the method of sampling etc. 5. Determining the data needs and their source: The researcher has to decide the nature of data required for his study. The researcher can use primary and/ or secondary data for his project. The researcher has to decide the convenient method for data collection. 45
Marketing research & MIS 6. Deg a sample of respondents: Sample is a small representative group selected from the total population for intensive study purpose. Sampling is necessary in marketing research as information collection from all consumers or all dealers is not possible due to time and cost involved. 7. Deg the questionnaire: Questionnaire aspect relates to the selection of research instruments employed in research for collecting required information/data. The questionnaire is one research instrument used extensively in a survey type research. 8. Selection of field staff: For data collection/ survey work, field staff is required. This includes interviewers, supervisors and staff for secondary data collection. For data collection, qualified staff should be selected on fair . 9.
Data collection: Data collection moves the research process from planning stage to
implementation stage. Communication between the researcher and the sample begins at the data collection as per the method selected for data collection. 10. Data processing: The completed questionnaires are not useful directly for tabulation and drawing conclusions. This raw data need proper processing. For this, scrutiny of data, editing, coding, classification and tabulation of data are required. 11. Data analysis and interpretation: The final step in a research study consists of analyzing the data and interpreting the results. The purpose is to establish a relation between the information and marketing problem under investigation. 12. Preparation of research report: After drawing conclusions from the data collected, the researcher can make concrete recommendations for solving the marketing problem. A researcher also prepare a research report giving detail of research problem, data collected, conclusions drawn and the recommendations made. 13. SUBMISION OF RESEACH REPORT: 46
Marketing research & MIS In this stage, the researcher will submit his research report to the appointing
authority.
The
researcher
may
submit
his
findings,
recommendations, etc.
MARKETING
RESEARCH
ON
PREFERENCE OF CONSUMER Celebrity endorsement is a boom marketing concept in today’s world, since, customer recall is found to be higher with celebrity endorsement ment. We can see that every company is going for this marketing strategy for advertising their brands. Companies which produce fast moving consumer goods and companies which produce product like suiting, automobiles, garments, etc. all are adopting this marketing strategy to their product. So through this research we are trying to find out, that whether consumer buying product just because that product is being endorse/ advertising by celebrity or which are those factors consumer take into the consideration while buying any product. For this research we use random sampling method:
Sample size: Total 90 people were ed and interviewed. Due the different kind of characteristic of consumer, we used segmentation method. We segment them into the three categories, according to their age.
Sample design: AGE WISE 5—15 30
16—30 30
47
30—above 30
Marketing research & MIS
QUESTIONNARE: Name:. Age: _________ Sex: ____________ Occupation: 1. Do you like seeing celebrities in the ment? Yes: _______ No: _______ 2. Do you feel celebrities should ? Yes: ______ No: ________ 3. Do you buy the product endorsed by the celebrities? Yes: ______ No: ________ 4. Do you feel they relay the message more effectively? Yes: ______ No: ________ 5. Does celebrity attract towards product? Yes: ______ No: ________ 6. Which things you give more preference while purchasing any product? (a) Quality
(b) Celebrity
(c) Style
7. Would you like to switch your traditional product with new quality product? Yes: ______ No: ________
48
Marketing research & MIS
ANALYSIS OF THE SURVEY: •
Three categories of people were interviewed. The three categories being.
1. Age group of 05-15. 2. Age group of 15-30. 3. Age group above 30. •
The number of people interviewed was approximately 90.
DATA FOUND IN SURVEY 1. Do you like seeing celebrities in the ment?
100 80 60 YES
40
NO
20 0 1st 2nd 3rd group group group
2. Do you feel celebrities should ?
49
Marketing research & MIS
100 80 60 YES
40
NO
20 0 1st 2nd 3rd group group group
3. Do you buy the product endorsed by the celebrities?
100 80 60 YES
40
NO
20 0 1st 2nd 3rd group group group
4. Do you feel they relay the message more effectively? 100 80 60 YES
40
NO
20 0 1st 2nd 3rd group group group
5. Does celebrity attract towards product?
50
Marketing research & MIS
100 80 60 YES
40
NO
20 0 1st 2nd 3rd group group group
6. Which things you give more preference while purchasing any product? (a) Quality
(b) Celebrity
(c) Style
100 80 60
Quality
40
celebrity
20
style
0 1st group
2nd 3rd group group
7. Would you like to switch your traditional product with new quality product?
51
Marketing research & MIS
100 80 60 YES
40
NO
20 0 1st 2nd 3rd group group group
•
Findings from the survey:
1. All the three age groups like to see celebrities in the ments. The reason being, for the 1st age group - they just like to see their favorite stars in the ads. For the 2nd and 3rd group are they come to know about a new talent in their favorite stars or celebrities and quality of the product. 2. For the question "do you feel that the celebrities should do the ads" the 1st group said 'Yes' because they like the celebrities very much. The 2nd group said that they should come in the ads because it attracts the customers towards the product for which they are advertising. The 3rd group feel that as they are bored to see the same faces in the ads, it’s good that celebrities come in ads, its creates an interest to see the ad. 52
Marketing research & MIS 3. The 1st age group and the 2nd age group like to see the ads repeatedly but the 3rd group doesn't have that much inclination for it except a few selected ads. 4. When it comes to liking of celebrities, group 1 is very fond of celebrities. 5. For the question " do you think they relay the message more effectively", the 1st group had no answer as such but the 2nd group agreed to the question and the 3rd group gave the example of cad bury and coke sales ri still, after the pesticides problem.. They feel it’s because of Amitabh Bachchan for Cadbury and Aamir Khan for coke. 6. When it comes to buying the product endorsed by the celebrities the 1 st group says yes. They insist upon buying the product endorsed by them. The 2nd group is very choosy, they don't buy everything the celebrities endorse except FMCG goods like cold drinks and chocolates etc. the 3rd group is basic1ally more of logical thinkers. They say that "it’s good to see the ads and enjoy more than going and buying only those products endorsed by them.”
53
Marketing research & MIS
CONCLUSION Marketing research is one of the essential supplements of modern highly competitive, consumer oriented and global marketing system. It facilitates large scale marketing with satisfaction and pleasure to consumers. It is essentially a systematic and objective study of different problems of marketing. It helps to study various marketing problems in depth and offers various benefits to manufacturing and marketing firms or organizations. Marketing Research enables the firm or organization to make their business operations as per the needs and expectations of the consumers. It provides information regarding consumers and their needs/ expectations, intensity of market competition, sales promotion techniques used by the competitors. It also helps the firm to find out the method or strategies for making their products popular in the market, raising its goodwill and also its market reputation. The purpose of MIS is to provide relevant and reliable information to all departments and facilitates quick and correct decision-making. MIS is the life blood of marketing decision-making.
54
Marketing research & MIS
RFERENCES THE
INFORMATION
COLLECTED
IS
MAINLY
FROM
FOLLOWING SOURCES: •
BOOK REFERENCE:
“MARKETING MANAGEMENT” BY PHILIP KOTLAR. “MARKETING RESEARCH” BY N.G.KALE & M.AHMED •
WEBSITES:
www.hindustantimes.com www.bbc.com www.yahoo.com www.google.com
•
ECONOMIC TIMES
•
DAILY NEWS AND ANALYSIS [DNA]
•
TIMES OF INDIA
55
THE
Master of management studies By Ms. Shinde Nayana S. Mr. Meshram Tushar G. Mr. Ghanekar Sameer J. Mr. Karval Vinod P. Ms. Ghanekar Kavita G.
Under the guidance of DR. C. SATYANARAYANA
YADAVRAO TASGAONKAR SCHOOL OF BUSINESS MANAGEMENT BHIVPURI ROAD, KARJAT 410 201.
UNIVERSITY OF MUMBAI
Marketing research & MIS
OCT 2009-2010
2
Marketing research & MIS
ACKNOWLEDGEMENTS We desire to express our sense of profound gratitude to all those personalities who have contributed their best efforts in helping us through the proceedings in our project work. With immense pleasure, we would like to express our deepest sense of indebt ness to our guide professor “DR.C.SATYANARAYANA” for his esteemed guidance, co-operation. We would also like to thank our parents who have ed us financially as well as morally. Without the of all these personalities, our project would not have been successfully completed.
3
Marketing research & MIS
INDEX Sr. no.
Particulars
1
Introduction and Definition
2
Features of Marketing Research
3
Objective of Marketing Research
4
Need of Marketing Research
5
Functions of Marketing Research
6
Advantages of Marketing Research
7
Limitations of Marketing Research
8
Branches of Marketing Research
9
Method of Conducting Marketing Research
10
Definition of MIS
11
Function of MIS
12
Characteristics of MIS
13
Sources of MIS
14
Advantages of MIS
15
Components of MIS
16
Difference between MIS and MR
17
Sampling- Planning and Deg
18
Features of Sampling
20
Advantages of Sampling Method
21
Limitations of Sampling Method
22
Steps in Sampling Process
23
Sampling Methods
4
Pg.no
Marketing research & MIS 24
Marketing Research Process
25
Marketing Research on Preference of Consumers
26
Questionnaire
27
Analysis
28
Conclusion
29
References
5
Marketing research & MIS
INTRODUCTION
OF
MARKETING
RESEARCH: Marketing Research comprises of two words ‘Marketing’ and ‘Research’. To understand the role of Marketing Research, it is essential on our part to thoroughly understand the basic concepts of Marketing Management.
In the Marketing Management the entire emphasis is on
Customer. The entire function of Marketing revolves around customer. In the Management theory Customer has been perceived as a ‘King” or the ‘Boss’ for whom everything is being done by the business. In marketing research, specific marketing problem is studied in depth by collecting and analyzing all relevant information and solutions are suggested to solve the problem which may be related to consumer, product, market competition, sales promotion and so on. Marketing research facilitates accurate marketing decisions for consumer satisfaction on the one hand and sales promotion on the other hand. It is rightly treated as the SOUL of modern management.
DEFINITIONS OF MARKETING RESEARCH According to AMERICAN MARKETING ASSOCIATION: “ The systematic gathering, recording and analyzing of data about problems relating to the marketing of goods and services” According to PHILIP KOTLER: “Marketing research is systematic problem analysis, model building and fact finding for the purpose of improved decision making and control in the marketing of goods and services.” According to RICHARD D. CRISP: “Marketing research is the systematic, objective and exhaustive search for and study of the facts relevant to any problem in the field of marketing.”
6
Marketing research & MIS
FEATURES OF MARKETING RESEARCH: 1) Systematic and continuous process: Marketing research is a continuous process. One type of research is not adequate to resolve all marketing problems. A marketing company has to conduct marketing research regularly for its survival & growth in the present dynamic marketing environment. 2) Wide/comprehensive in scope/wide application: Marketing research is wide in scope as it deals with all aspects of marketing of goods and services. Introduction of new products, identification of potential markets, selection of appropriate selling techniques, study of market competition, introduction of suitable advertising strategy and sales promotion measures are some areas covered by marketing research. 3) Emphasizes on accurate data collection and critical analysis: In marketing research, required data should be collected objectively and accurately. The data collected must be reliable. It should be analyzed in a systematic manner. This will provide comprehensive picture of the situation and possible solutions. 4) Offers benefits to sponsoring company and consumers: It raises the turnover and profit of the company. It also raises the competitive capacity and creates goodwill in the market. It enables a company to introduce consumer oriented marketing policies. 5) Commercial equivalent of military intelligence: Marketing research is the commercial intelligence activity. It is similar to military intelligence where systematic study is made before taking any military action. MR acts as the intelligence tool of marketing management. 6) Tool for managerial decisions: Marketing research acts as a tool in the hands of management for identifying and analyzing marketing problems and finding out solutions to them. It is an aid to decision making. MR is an aid to judgment and never a substitute for it.
7
Marketing research & MIS 7) Applied type of research: Marketing research is applied knowledge. It studies specific marketing problem and suggests alternative solutions and possible outcome of each alternative. 8) Reduces the gap between the producers and consumers: It is useful for understanding the needs and expectations of consumers. It reduces the gap between produces and consumers and adjusts the marketing activities to suit the needs of consumers. 9) Not an exact science: Marketing research is both science and an art. It collects information and studies marketing problem in a scientific manner. The information collected is also applied to real life problem. However, MR is not the exact science. It only suggests possible solutions and not the exact solution to marketing manager for consideration and selection. 10) Use of different methods: Marketing research can be conducted by using different methods. Data can be collected through survey or by other methods like observation method or experimentation method. Even computers and internet are used for data collection. The researcher has to decide the method suitable for his research project. 11) Dynamic character: Marketing research is dynamic in nature. Its scope is fast expanding along with the new developments in the field of marketing. 12) Closely connected with marketing information system: Both the concepts are interrelated. In fact, MR is one component of MIS. Both are useful for solving marketing problems and for accurate and quick decision making in the field of marketing.
8
Marketing research & MIS
OBJECTIVES OF MARKETING RESEARCH: •
To study the need, wants and expectation of consumers.
•
To find out reactions of consumers to the products of the company.
•
To evaluate company’s sales promotion measures for suitable adjustment and improvement.
•
To study current marketing problems and opportunities for suitable follow-up actions.
•
To suggest the introduction of new products, modifications of existing products and to discover new uses of existing products.
•
To design and test appropriate packages, brands of company’s products.
•
To study existing pricing, channels of distribution and market competition for suitable changes, if necessary.
•
To find out methods for marketing the products of the company popular and raising its goodwill and market reputation.
9
Marketing research & MIS
10
Marketing research & MIS
INCREASING NEED OF MARKETING RESEARCH: The following factors/points suggest increasing need of MR: Growth and complexity of markets:
1.
The marketing activity is becoming increasingly complex and broader in scope as more firms operate in domestic and global markets. Manufacturers find it difficult to establish close with all markets and consumers directly. Similarly, they have no control on the marketing system once the goods are sold out to middlemen. This situation creates new problems before the manufacturers which can be faced effectively through MR as it acts as a feed-back mechanism to ascertain first hand information, reactions, etc. of consumers and middlemen. Wide gap between producers and consumers:
2.
Marketing research is needed as there is a wide gap between producers and consumers in the present marketing system. Due to mass scale production and distribution, direct (personal) between producers and consumers is practically lost. Producers do not get dependable information as regards needs, expectations and reactions of consumers. They are unable to adjust their products, packaging, prices, etc. as per the needs of consumers. The problems creates due to information gap can be solved only through MR as it is possible to establish with consumers and collect first hand information about their needs, expectations, likes, dislikes, preferences and special features of their behavior. Changes in the composition of population and pattern of
3.
consumption: In India, many changes are taking place in the composition of population. There have been considerable changes in the consumption and expenditure patterns of consumers because of urbanization. The incomes of 11
Marketing research & MIS the people, in general, are rising. This brings corresponding increase in their purchasing capacity and buying needs and habits. MR is needed for the study of changes in the pattern of consumption and corresponding adjustment in the marketing planning, policies and strategies. Growing importance of consumers in marketing:
4.
Consumers occupy key position in modern marketing system. They are now well informed about market trends, goods available, consumer rights and protection available to them through consumer protection acts. Even growing customers expectations create situation when manufacturers have to understand such expectations and adjust the production policies accordingly. MR particularly consumer research gives valuable data relating to consumers this data use to framing marketing policies. Shift of competition from price to non-price factors:
5.
Cut-throat competition is unavoidable in the present marketing field due to various factors such as price, quality, packaging, advertising and sales promotion techniques. MR is needed as it offers guidance in this regard. A manufacturer can face market competition even by using certain non-price factors. The shifting of competition from price to non-price factors has made marketing of consumers goods more complicated and challenging. This challenge can be faced with confidence by using certain measures suggested through marketing research. 6.
Need of prompt decision making: In competitive marketing, marketing executives have to take quick and
correct decisions. Moreover, wrong decisions may bring loss to the organization. For correct decision- making, marketing executives need reliable data and up-to-date market information. Here, MR comes to the rescue of marketing managers. Problems in marketing are located, defined, analyzed and
12
Marketing research & MIS solved through MR technique. MR is needed as a tool for reasonably accurate decision making in the present highly competitive marketing system. 7.
Recent developments in science and technology: Science and technology are making rapid progress. In fact, the impact
of such progress touches all aspects of commercial and industrial activities. Consumers prefer new/novel articles in place of old ones. Producers and distributers find it difficult to take decisions due to lack of knowledge about future market trends. Here, marketing research is useful as it provides information about future trends in the marketing field and enables marketing managers to take quick and correct marketing decisions. The factors noted above clearly suggest the growing need of MR in the present consumer-oriented marketing system. It is needed in order to reduce the risks and uncertainties in the marketing activities.
13
Marketing research & MIS
•
FUNCTIONS OF MARKETING RESEARCH: MR performs five basic functions. These functions are related to the
research project undertaken. Usually, every research study performs the functions as explained below: 1.
Description: MR provides data and gives information/description of customers
who buy the product. This includes information about their age/sex, education, income and the amount of money which they are willing to spend on the product. Description of the customers is useful in order to draw certain conclusions about the customers and their buying behavior. 2.
Evaluation: MR is useful for understanding the views/reactions of the buyers.
This includes views of consumers on packaging/ advertising/ sales promotion measures used. A manufacturer gets these details as well as the information about his product in comparison with the products of his competitors. This facilitates evaluation of the marketing policies. 3.
Explanation: MR gives explanation to certain questions of a manufacturer related
to decline in sales, retailers negative reaction or resistance of consumers in a particular marketing area.MR enables a manufacturer to understand why sales are reducing (causes) or why the response of the retailers is negative or why consumers in a particular region are not willing to purchase a specific project.
14
Marketing research & MIS 4.
Prediction: MR conducts prediction function. Such predictions may be related
to consumers, market environment, market competition, possible socioeconomic changes and so on. This prediction function enables a manufacturer to understand how much people will spend on the specific product in the next year or the fashions which consumers may prefer in next year. In brief, MR is useful for understanding the marketing environment likely to develop in future. The prediction function is important even when all predictions made through research studies may not prove to be fully correct. However, the trend indicate can be used for appropriate policy decisions.
5.
Aid in Decision-making: MR guides the manufacturer as regards the manner in which he can
make
effective
advertising
appeal
or
create
incentive
among
his
salesmen/distributors. It also gives him guidance as regards price fixation and sales promotion techniques which will be useful for the future period. These functions facilitate reasonably correct decision-making by marketing managers. In brief, the basic function of MR is to marketing decisionmaking process. MR does not provide ready-made decisions or exact solutions on all marketing problems. It only provides the clues or possible solutions which should be taken into consideration in the decision-making process. It provides to skills and abilities of marketing managers. The different functions of MR are supplementary in character. These functions enable a manufacturer to keep close touch with the marketing situation and enable him to make suitable changes in his marketing policies and programmes.
15
Marketing research & MIS
ADVANTAGES / BENEFITS OF MARKEING RESEARCH: 1.
Indicates current market trends: MR keeps business unit in touch with the current market trends
and offers guidance for facing market situation with confidence. 2.
Pinpoints deficiencies in marketing policies: MR pinpoints the deficiencies as regards products, pricing,
promotion, etc. It gives guidance regarding different aspects of marketing. They include product development, branding, packaging and advertising.
16
Marketing research & MIS 3.
Explains customer resistance: MR is useful for finding out customer resistance to company’s
products. Remedial measures are also suggested by the researcher to deal with the situation. This makes the products and marketing policies agreeable to consumers. 4.
Suggests sales promotion techniques: MR enables a manufacturer to introduce appropriate sales
promotion techniques, select most convenient channel of distribution, suitable pricing policy for the products and provisions of discounts and concessions to dealers. MR facilitates sales promotion. 5.
Offers guidance to marketing executives: MR offers information and guidance to marketing executives while
framing marketing policies. Continuous research enables a company to face adverse marketing situation boldly. It acts as an insurance against possible changes in market environment. 6.
Facilitates selection and training of sales force: MR is useful for the selection and training of staff in the sales
organization. It also suggests the incentives which should be offered for motivation of employees concerned with marketing. 7.
Promotes business activities: MR enables a business unit to grow/expand its activities. It creates
goodwill in the market and also enables a business unit to earn high profits through consumer- oriented marketing policies and programmes.
8.
Facilitates appraisal of marketing policies: Research activities enable business executives to have an appraisal
of the present marketing policies in the light of finding of research work.
17
Marketing research & MIS Suitable a adjustments in the policies are also possible as per the suggestions made by the researchers. 9.
Suggests new marketing opportunities: MR suggests new marketing opportunities and the manner in which
they can be exploited fully. It identifies emerging market opportunities. 10.
Facilitates inventory study: MR is useful for the evaluation of company’s inventory policies
and also for the introduction of more efficient ways of managing inventories including finished goods and raw materials. 11.
Provides marketing information: MR provides information on various aspects of marketing. It
suggests relative strengths and weaknesses of the company. On the basis of such information, marketing executives find it easy to frame policies for the future period. MR provides information, guidance and alternative solutions to current marketing problems. 12.
Suggests appropriate distribution channels: MR can be used to study the effectiveness of existing channels of
distribution and the need of making suitable changes in the distribution system. 13.
Provides information on product acceptance: MR helps in knowing the probability of acceptance of the
product in its present form. It is also useful for the introduction of modifications in the existing product line of a firm. 14.
Creates progressive outlook: MR generates a progressive and dynamic outlook throughout the
business organization. It promotes systematic thinking and a sense of professionalization within the company. It also creates enthusiasm among
18
Marketing research & MIS marketing executives. This brings success and stability to the whole business unit.
15.
Has wider social significance: MR is of paramount importance from the social angle. It is the
means by which the ultimate consumer literally becomes king of the market place, with his desires, prejudices and every whim transmitted to the producer and distributor. In brief, MR has wider social significance. It is useful to all parties involved in the process of marketing.
19
Marketing research & MIS
LIMITATIONS
OF
MARKETING
RESEARCH: MR itself is not complete/perfect in all respects. It deals with marketing environment which itself is flexible. Even the actions/reactions of consumers are different under different situations. This brings limitations: 1.
MR offers suggestions and decisions: MR is not a substitute for decision-making process. It only offers
possible suggestions/solutions to marketing problems. It guides marketing managers in taking balanced, result-oriented and rational decisions. MR offers predictions but they are not necessarily accurate or perfect. MR only provides indicators. MR aids managerial decision-making but it cannot replace judgment and experience of marketing executives/managers. MR is not always the only source of information to be used for marketing decisions. 2.
MR cannot predict accurately: In MR, efforts are being made to estimate or predict the possible
future situation. However, the results/conclusions arrived at may not be complete, perfect or accurate. They predict possible tendencies but not certainties. This is because market environment is ever changing, consumer behavior is difficult to estimate correctly and reliable data for research purpose may not be available. As a result, the decisions taken and policies framed on the basis of such research studies may not be accurate and useful for solving current marketing problems. 3.
MR conclusions are not dependable:
20
Marketing research & MIS There are many who are skeptics of MR. Their criticism is that MR conclusions are not dependable. There are examples where the research failed to deliver desired results or a product failed even when the research had shown promising market demand and consumer . 4.
MR cannot study all marketing problems: MR is rather very wide in scope. However, it cannot study all
marketing problems particularly where it is difficult to collect relevant data. Even it is not useful for dealing with urgent marketing problems where quick decisions and follow-up actions are necessary. Thus, all marketing problems are not researchable and all research problems are not answerable.
5.
Resistance by marketing executives: Researchers study marketing problems and offer information and
guidance to marketing executives in their decision-making process. However, some executives are reluctant to use the solutions suggested by the researchers. They feel that such extensive use will act as a threat to their personal status. Findings of the research work may bring them in difficulties if the policy-decisions taken accordingly prove to be wrong. 6.
Lengthy and time-consuming activity: MR is a lengthy and time consuming activity. It involves various
stages/steps which need to be completed in an orderly manner. It is not desirable to conduct research work is a haphazard manner. MR is not useful for dealing with urgent marketing problems. Moreover, research work cannot be conducted overnight and marketing decisions cannot be postponed till the research work is completed. 7.
MR is a costly affair: MR is costly as research work requires the services of experts
with knowledge, maturity and skill. Such experts include economists, management scientists, statisticians, psychologists and computer (software)
21
Marketing research & MIS experts. Advanced training in economics, computer technology, psychology, sociology, etc. is also necessary on the part of research staff. 8.
Non-availability of qualified staff: For scientific MR, professional marketing researchers with proper
qualifications, training and experience are necessary. Research work is likely to be incomplete/unreliable in the absence of such expert staff. Companies find it difficult to have the services of such expert staff. Research activities are conducted in limited areas due to non-availability of property qualified staff. Such staff includes statisticians, psychologists, sociologists, economists and computer experts. 9.
Complexity of the subject: MR fails to give complete and full proof solutions to
management. This is because MR itself is not an exact science. It is concerned with the study of human beings and human behavior is always difficult to predict. Errors in drawing conclusions are possible due to this human element in MR activities. Errors in the research studies are also possible due to uncertainty of human behavior and also because of non-availability of reliable data. 10.
Changing behavior of consumers: Consumer is the focal point in MR. However; his buying motives
are difficult to judge precisely and accurately. This brings some sort of uncertainty in conclusions drawn from research activity. The findings of the research work (in case of consumer research) may not prove to be accurate. 11.
Limited practical utility: MR is regarded as an academic exercise. It is often been delinked
from the business strategy. As a result many research reports become ‘academic’ in nature and are ‘field’. Researchers take more interest in concluding research work rather than in supplying information and guidance to marketing managers in the decision-making process.
22
Marketing research & MIS 12.
ive nature: MR is ive by its nature. Sometimes, it becomes too
superficial and faulty in business management. Many conclusions drawn from the MR activities may be imaginary or not based on realities. Its use and effectiveness largely depend on the ability of marketing executives to get the most promising results out of it. MR by itself may not give any benefit. It only shows the way to executives in the decision-making process. 13.
Fragmentary approach: On many occasions, MR tends to be fragmentary in its approach.
It suggests solution which may be difficult to put into operation. This is because overall marketing environment is not given adequate attention while suggesting the solution. Such fragmentary approach is not useful for solving marketing problems in an integrated manner. 14.
Absence of affective communication: The research activity will be useful and result-oriented only
when there is meaningful dialogue between the marketing management and MR team. However, such dialogue is ineffective in many organizations. This makes research activity ineffective. The limitations of MR do not suggest that it is a redundant activity or an activity without any practical utility. It only suggests that the MR activity should be conducted with proper care and caution.
23
Marketing research & MIS
IMPORTANT
BRANCHES
OF
MARKETING
RESEARCH 1) Product Research: Product research relates to products which are to be marketed to consumers. It is useful for introducing new product which will be agreeable to consumers. Product research relates to various aspects such as design, development and introduction of new products, testing of existing products, product modification studies and so on. 2) Packaging Research: Packaging research is a part of product research. It is important for making the product attractive and agreeable to consumers. Packaging is now treated as a tool for sales promotion. Constant changes in package design are required for sales promotion. For innovation in the package design, packaging research is necessary. Branding and packaging normally go together and hence brand research is treated as a part and parcel of packaging research. 3) Pricing Research: It relates to analysis of pricing policies and strategies, studies of market price trends, fixation of market prices, studies relating to price charged by competitors, price incentives for sales promotion and provision of price discount and other price concessions to dealers and consumers. 4) Market Research: It relates to analysis of consumer markets, assessment of market trends, forecasting of business conditions, studies of wholesale marketing, market competition studies, sales forecasting, estimating demand for new products and monitoring competitive marketing activities. 5) Sales Research: It relates to studies of sales outlets, sales territories and their revision, trends in sales, sales forecasting, sales policies, sales performance and so on.
24
Marketing research & MIS 6) Promotion and Distribution Research: Promotion research relates to assessing effectiveness of the sales force and selling efforts, effectiveness of advertising campaigns. It also includes the study of channels of distribution for modification for modification, distribution cost analysis of the physical distribution, inventory control and handling of goods 7) Consumer Research: It relates to finding out consumers needs and preference, consumers purchasing intentions, consumers choice of brands, trends in consumer preference and purchasing patterns. 8) Policy Research: It is related with the evaluation of effectiveness of marketing policies, sale policies, distribution policies, pricing policies, inventory policies and so on. 9) Advertising Research: It relates to evaluation of advertising effectiveness, analyzing competitive advertising and selection of appropriate advertising media. Media research, copy research, corporate research are included within the scope of advertising research. 10) Media Research: Different media are used for communicating message about the products to prospective buyers. Media are used for advertising and publicity purpose. Newspaper, TV, magazines are used for advertising. Media research relates to detailed study of different media for selection and use. 11) Motivational Research: It is one aspect of consumer research as it deals with consumer behavior. Consumer research is useful for finding out the sentiments, buying motives, priorities and inner feelings of consumers. 12) International Marketing Research: It deals with foreign markets which are attractive and profitable provided products and marketing activities are adjusted as per the need of foreign markets and buyers. Data collections about foreign markets, market surveys, etc. are undertaken under international marketing research. Such research is costly and time consuming as compared to internal research. 25
Marketing research & MIS
METHODS OF CONDUCTING MARKETING RESEARCH It is classified into following four categories: 1) Desk Research: In desk research, the required information for research work is collected from published and other written sources of the collection secondary data. Desk research is a type of in-house research. 2) Field Research/investigation: In this method, the required information is collected from the consumers, dealers and others connected with marketing through personal interviews, etc. In addition, consumer’s surveys are also conducted for this purpose. The data collected from such field investigation are called primary data. 3) Observation Method: In observation method, the required information is collected through actual physical observation of one or more phenomena under study. This method is also useful for the collection of primary data. 4) Experimentation Method: Here the required information is collected through a small scale experiment under controlled conditions. It is also used for primary data collection.
26
Marketing research & MIS
MARKETING INFORMATION SYSTEM (MIS)
WHAT IS MIS? Marketing information system s marketing decision making and marketing planning. It facilitates quick marketing decision making and thereby raises marketing excellence. Even after collecting all required information, the decisions are to be made by marketing executives. MIS is an essential system for developing marketing decisions, plans and strategies. Information is critical for a firm’s survival and competitive edge in the marketing field. Information network serves as key resource in all aspects of life including business and marketing. Required information needs to be collected, arranged and stored systematically for reference purpose. This is what is achieved through MIS. In order to achieve marketing objective, correct decision must be taken and correct decision making is possible when reliable, up to date and adequate information is made available regularly.
DEFINITIONS OF MARKETING INFORMATION SYSTEM: According to MR.COX AND GOOD “A set of procedures and methods for the regular and planned collection, analysis and presentation of information in making marketing decisions.” According to MR.WILLIAN STANTON “Marketing information system (MIS) is an ongoing, organized set of procedures and methods designed to generate, analyze, store, and retrieve information for use in making marketing decisions.”
27
Marketing research & MIS
FUNCTIONS OF MARKETING INFORMATION SYSTEM: 1)
Assembling of information or relevant marketing data through
internal and external sources. Such data act as a raw material of MIS. 2) Processing of information i.e. editing, tabulating and summarizing the data collected for the purpose of ready reference and critical analysis. 3) Analyzing the data collected which is essential for drawing conclusions for decision making. 4) Storing of data collected i.e. filing and indexing of information collected so that it can be made available for use when required. 5) Evaluating the data i.e. finding out accuracy and reliability of the data collected. 6) Disseminating relevant information to decision makers, i.e. Marketing Managers. 7) Updating the information collected periodically by discarding outdated data and incorporating new data available. 8) Introducing updated information technology in the collection processing and storing of information collected.
28
Marketing research & MIS
CHARACTERISTICS
OF
MARKETING
INFORMATION SYSTEM: 1) Continuously operated process: MIS is a consciously developed technique for the flow of information to the company. It operates continuously. Regular flow of information acts as a in decision making. It is an ongoing process as new information is added to the old one in a continuous manner. 2) Facilitates prompt and correct decision making: MIS provides updated information on various aspects of marketing to managers or executives. As a result, managers are aware of new marketing developments taking place. They are also in apposition to take prompt decisions from time to time due to the provided by MIS. It acts as a data bank for the benefit of marketing managers. 3) Future oriented: MIS provides information about possible future problems and their solutions through appropriate marketing decisions. It acts as a preventive mechanism in marketing management and offers guidance to marketing executives. 4) Provides continuous information on marketing developments: MIS collects and provides information on marketing to concerned executives. It goes to right people at the right time. In other words, it provides right information at the right time to right people for decision making. As a result, decision-making process becomes accurate and quick. 5) Acts as a link between external environment and internal resources: It provides updated information about external marketing situation and facilitates suitable adjustment in the internal resources to face the overall situation effectively. 6) Operates in a systematic manner: MIS operates in a rational and systematic manner. This is necessary for quick reference to required information. Proper system in the
29
Marketing research & MIS collection and storing of information is necessary as varied type of information is now easily available. Such information has to be stored after due classification. In brief, MIS needs well prepared operational system for raising its utility and efficiency. 7) Uses modern technologies: New techniques and machines are available for collection, processing and storage of information. MIS is now becoming costly and also needs the service of technically qualified staff (software experts).MIS is now based on advanced technology. It is a computer based method of data collection, processing and storage. Due to the use of computers updated information is provided to executives easily and quickly.
30
Marketing research & MIS
• SOURCES OF MARKETING INFORMATION SYSTEM: Information is the base of MIS. Such information is collected from different
sources which includes internal and external.
Internal Sources of Information: 1) Old statistical records of the company. 2) Sales invoices and sales statistics. 3) Sales force records. 4) Production statistics. 5) ing data. 6) Financial records. 7) Departmental budgets and reports. 8) Old research and surveys. 9) Periodical progress reports. 10) Director’s report and committee reports. External Sources of Information: 1) Trade journals and periodicals. 2) Business press i.e. Economics Times, Financial Express, etc. 3) Census reports and other government publications on business, finance, marketing, exports, etc. 4) Publication of trade associations and other agencies concerned with finance, trade, commerce and industry. 5) Publication of RBI, financial institutions, term lending institutions and government departments. 6) Publications and survey report of World Bank, WTO, FAO, etc. 7) Published survey reports and statistical data.
31
Marketing research & MIS 8) Special reports, surveys conducted by marketing research agencies, magazines, advertising agencies etc. 9) Publications of stock exchanges, commodity exchanges and export promotion councils. 10) Daily press, reports and information.
32
Marketing research & MIS
•
ADVANTAGES OF MARKETING INFORMATION SYSTEM:
1)
Provides updated and timely information for decision-making: MIS provides information about various aspects of marketing.
Information acts as a and facilitates correct decision making by marketing managers. Problems are solved at the initials stages through suitable preventive measures. 2)
Facilitates monitoring of marketing operations: Data on different aspects of marketing can be collected and stored
through MIS. This helps easy and effective monitoring of the performance of products, markets etc. 3)
Raises efficiency of decision making: Integrated and updated marketing information may not be available
easily and quickly in large companies with many departments. However separate arrangement can be made for collection, evaluation and storage of such information through efficient MIS. 4)
Facilitates quick reference: Easy and quick reference to old information is possible due to MIS.
Quick reference to old information is due to modern computer techniques. 5)
Promotes marketing excellence: It is rightly said that to manage a business well is to manage its future
and to manage the future is to manage information. Marketing decisions will be accurate when they are based on dependable information. Thus, MIS gives the benefit in the form of marketing excellence. 6)
Facilitates tapping of marketing opportunities: MIS facilitates tapping of promising marketing opportunities and
effective defense against marketing problems and threats likely to develop in the future. Both benefit stability and prosperity.
33
Marketing research & MIS
COMPONENTS OF MARKETING INFORMATION SYSTEM: 1) Internal Marketing Information: This component of MIS provides information from within the organization itself i.e. through the ing system on sales, inventories, cost, cash flows and old records. All such data provides information for marketing decision making. All such data are available within the firm and hence these sources are called internal sources of marketing information. Marketing managers use this internal source as the information is available easily and quickly. For easily availability of internal information, filing and record keeping system must be efficient. 2) Marketing Intelligence: This component provides information
on external marketing
environment. Information is collected from external sources. It provide information regarding current marketing environment and changing conditions in the market. This information is available through census data, weekly and monthly reports on markets and market news published in magazines and trade journals etc. Market intelligence acts as a mirror of marketing environment and provides appropriate decision making on marketing. 3) Marketing Research (MR): In this component, specific marketing problem of the firm is selected for investigation. Data regarding the problem is collected, tabulated analyzed and conclusion is drawn. Suitable policy measures are recommended in order to solve the problem. 4) Market Information Analysis: Information gathered by the company’s marketing intelligence and marketing research systems often requires more detailed analysis. With from market information analysis managers can make better marketing mix decisions, design sales territories, select site for retail outlets and forecast new product sales.
34
Marketing research & MIS
DIFFERENCE BETWEEN MIS AND MR:
1) Meaning
2)Nature concept 3)Information provided
4)Purpose
5) Coverage
Marketing Research (MR) MR is the systematic gathering, recording and analyzing of data relating to the marketing of goods and services. of MR is a narrow concept as MR is one of the components of MIS. MR provides precise and properly analyzed information regarding a specific marketing problem with a view to solving that problem. The purpose of MR is to study a specific marketing problem in depth and to solve it quickly and also in satisfactory manner. MR collects information relating to specific marketing problem under investigation.
6) Operational MR is conducted on method problem by problem or project by project basis with each project having a starting and ending point. 7) Use computer
8) Type orientation 9)
of It’s a non computer based system. However, computers may be used tabulating data or while analyzing the information collected. of MR is past-oriented.
Marketing Information System(MIS) MIS is a set of procedures and methods used for the regular and planned analysis and presentation of information for marketing decision-making. MIS is a broad concept. Its purpose is to collect information on all aspects of business. MIS provides information on various aspects of marketing in order to frame marketing policies and marketing decisions. The purpose of MIS is to provide relevant and reliable information to all departments and facilitates quick and correct decisionmaking. MIS collects information on various aspects of marketing such as products, consumer needs, market competition and sales. MIS is a continuous system and information is collected, analyzed used and stored in a regular and continuous manner. MIS is a computer based process as a computer technology is extensively used while collecting, analyzing and storing the information collected. MIS is future-oriented.
Every company may or Companies 35
make
Marketing research & MIS Organizational structure.
may not maintain department.
MR arrangements for the collection and storage of information through MIS. 10) Frequency of In MR data collection is not In MIS data are collected data collection. continuous but only as per regularly on different the research projects marketing aspects in which undertaken. the firm is interested. 11) Sources of In MR, external sources In MIS, external as well as data used: such as surveys and census internal sources are used reports are used for data for data collection. collection.
SAMPLING 36
Marketing research & MIS
PLANNING AND DEG THE SAMPLE: In MR, primary data cannot be collected from each and every dealer/consumer as this is costly and time-consuming. The better alternative is to select a representative sample and to collect information from such selected individuals called sample. The information collected from the sample will be applicable to the entire group but the collection will be quick and economical. Sampling is based on the law of statistical regularity and the law of inertia of large numbers. It is a process of selecting a small representative group from the whole for intensive study purpose. A sample is a part of the whole and is representative in character. It refers to a selected number of individuals chosen from the whole group/population with a view to obtaining information and drawing conclusions. Naturally, the conclusions applicable to the sample are also applicable to the whole universe. This is how reliable data can be collected quickly and economically through sampling. Moreover, sampling facilitates collection of information this is sufficiently adequate for survey purpose. Sampling methodology is the foundation of the research design. It has a key role to play in a systematic and objective marketing survey. According to Crisp R. D., the fundamental idea of sampling is that “if a small number of items or parts (called a sample) are chosen at random from a large number of items or a whole (called a universe or population) the sample will tend to have the same characteristics and to have them in approximately the same proportion as the universe.”
FEATURES OF SAMPLING:
37
Marketing research & MIS 1. Sampling is a small representative of the whole. It is an effective alternative to the census survey.
2. Sampling reduces the time, efforts and money of the researcher on data collection without any adverse effect on its quality.
3. The sampling technique is based on the assumption that random selection of sample from the universe do possesses the same features and characteristics as that of the universe.
4. The findings of sample survey are accurate and reliable. The large sample is better as the results available are more accurate.
5. Sampling is used in data collection as well as for different purposes in our daily life.
38
Marketing research & MIS
ADVANTAGES OF SAMPLING METHOD: 1. Saves time and money:
Sampling facilitates primary data collection easily, quickly and with less cost. It is time saving and economical method of survey for data collection. 2. Provides reliable data:
The conclusions drawn from the sample survey are reliable, accurate and also applicable to the whole population/universe. Sampling has no adverse effect on the quality of data collected. It gives quality results with lesser volume of work. 3. Scientific base:
The concept of sampling has scientific backing as it is based on the law of statistical regularity and the law of inertia of large numbers. 4. Popular and extensively used technique in MR:
The concept of sampling is quite common and popular in MR as it helps researchers to finalize their findings and recommendations within a short period. 5. Facilitates better supervision on data collection:
39
Marketing research & MIS Sampling method is restricted to limited number of respondents. Naturally effective monitoring and supervision on the data collection work is possible. This improves the quality of data collected.
LIMITATIONS OF SAMPLING METHOD: 1. Findings may not be accurate:
The findings and collection drawn from sample survey may not be as available from the census technique in which the entire population is covered. The accuracy is comparatively less. 2. Findings may not be reliable:
The findings may not be reliable if the sample selected is too small or is not adequately representative in the character. In such case, the conclusions drawn may be misleading and this may affect the quality of research work. 3. Difficulties in the selection of representative sample:
There are many practical difficulties in the selection of representative sample. This may defeat the very purpose of sampling. 4. Findings are not completely accurate:
40
Marketing research & MIS The findings of sampling method are reasonably accurate but not completely accurate. 5. Data collection difficult in the case of large sample:
Data collection become difficult when large size sample is decided. This also leads to more time and money for data collection.
SAMPLING PROCESS/STEPS IN SAMPLING PROCESS: The sampling process consists of various steps involved in selecting an appropriate sample. The work of sampling process starts with defining/deciding the data needs of the research projects and ends with final selection of sample for actual use. A detailed plan for the selection of appropriate sample is the sampling process which is lengthy and time consuming. The following steps are involved in the sampling process: 41
Marketing research & MIS 1. Deciding the data needs of research project:
Here, it is necessary to define the data requirements of proposed research project. For this, the research problem needs to be studied properly. Deciding the data needs of the project is the first and basic step in the sampling process. 2. Deciding the area to be covered by survey work:
In this step, the area to be covered by the survey work needs to be decided clearly. Population and sample size relate to the area decided for the survey work. However, the decision in this regards should be firm and final. 3. Defining the population:
Here, the total population from which the sample is to be selected will be decided. The total population may be different for different survey work. The researcher has to decide the population in of elements, sampling unit, time available and so on. For example, for the specific survey, the population may be all girls in the group of 18 to 22 within the sampling area which may be decided as Mumbai city. The time period for the sample/survey may be from 15th October 2006 to 15th January 2007. 4. Deciding the sample frame:
The sample frame for the survey should be proper. Every element of the population should be represented only once. Attention should be given to adequacy, accuracy, completeness and convenience before deciding the sample frame.
5. Determining the desirable sample size:
The sample size should be decided in a fair manner. It should not be too large or too small. It should be as per the requirements of the research work. Here, adequate attention should be 42
Marketing research & MIS given to various factors such as data needs of the project, the statistical method to be used for analysis of data, the method of sampling to be used and the availability of time, money and other resources. 6. Selecting the sampling method:
Methods of sampling are varied and broadly divided into two categories-probability sampling and non-probability sampling. Any suitable and convenient method should be selected for sampling purpose. 7. Drawing
samples
and
obtaining
data
from
the
selected
respondents: Here, the final selection of the sample is to be made from a well defined population. The sample selected should be of suitable size. It should be selected through suitable method. After making all such preparations, the researcher should select the field staff for the collection of data. They include interviewers, supervisors and others. This will enable them to act efficiently and collect the required information within the time schedule prepared.
43
Marketing research & MIS
SAMPLING METHODS/SAMPLING DESIGNS: Sample designs are different methods used for the conduct of sample survey. Quota sampling, judgment sampling etc. are the nonprobability sample designs while random sampling, area sampling, etc. are the probability sample designs. In brief, the sample designs are divided into the following two categories: 1. Probability Sampling Methods, and 2. Non-Probability Sampling Method.
1. Probability/Random Sampling Methods:
In the probability sampling methods, the sample units are selected at random. Every member in the universe has equal chance of being selected as the representative. The selection of sampling items is impartial and independent of the person making the study. There is no scope for any biased selection of sample units. Probability sampling methods include random sampling, stratified, cluster, sampling, etc. Such methods are used extensively in marketing research. Greater statistical competence and time are required to plan and probability sampling methods. 2. Non-probability Sampling Methods:
Here, sample units are selected in a non-random manner. The selection may be purposive. It may be based on the convenience or the judgment of the researcher. Every item is not given a definite chance of being included in the sample. The non-probability sampling methods include convenience sampling, judgment sampling and quota sampling. In these methods, the sample is selected in a subjective manner and the decision regarding sample is taken by the researcher himself.
44
Marketing research & MIS Non-probability sampling methods are also used in marketing research along with probability methods. Such methods are sometimes preferred because they cost less per observation, required less time and need relatively little statistical sophistication in planning the sample design and in the selection the respondents.
MARKETING RESEARCH PROCESS •
Details of steps in MR process:
1. Identifying and defining a marketing problem: The First step/ starting point in the MR process is to identifying the marketing problem which needs to be studied in depth and solved. The research process will start only when the marketing problem is identified clearly. 2. Conducting preliminary survey: The marketing team may suggest many marketing problem which they face. All marketing problems are not researchable and hence such preliminary survey is necessary. 3. Determining research objectives: The objective decided should be specific, measurable and also attainable. The research objectives decided act as a guide to the researcher and help him in maintaining a focus on the whole research project. 4. Creating research design: The research design is a plan /blueprint of the whole research work to be undertaken. It gives all details of the research project and acts as a reference document during the execution of research project. The research design indicates the method of research, the instruments to be used for the research, the method of sampling etc. 5. Determining the data needs and their source: The researcher has to decide the nature of data required for his study. The researcher can use primary and/ or secondary data for his project. The researcher has to decide the convenient method for data collection. 45
Marketing research & MIS 6. Deg a sample of respondents: Sample is a small representative group selected from the total population for intensive study purpose. Sampling is necessary in marketing research as information collection from all consumers or all dealers is not possible due to time and cost involved. 7. Deg the questionnaire: Questionnaire aspect relates to the selection of research instruments employed in research for collecting required information/data. The questionnaire is one research instrument used extensively in a survey type research. 8. Selection of field staff: For data collection/ survey work, field staff is required. This includes interviewers, supervisors and staff for secondary data collection. For data collection, qualified staff should be selected on fair . 9.
Data collection: Data collection moves the research process from planning stage to
implementation stage. Communication between the researcher and the sample begins at the data collection as per the method selected for data collection. 10. Data processing: The completed questionnaires are not useful directly for tabulation and drawing conclusions. This raw data need proper processing. For this, scrutiny of data, editing, coding, classification and tabulation of data are required. 11. Data analysis and interpretation: The final step in a research study consists of analyzing the data and interpreting the results. The purpose is to establish a relation between the information and marketing problem under investigation. 12. Preparation of research report: After drawing conclusions from the data collected, the researcher can make concrete recommendations for solving the marketing problem. A researcher also prepare a research report giving detail of research problem, data collected, conclusions drawn and the recommendations made. 13. SUBMISION OF RESEACH REPORT: 46
Marketing research & MIS In this stage, the researcher will submit his research report to the appointing
authority.
The
researcher
may
submit
his
findings,
recommendations, etc.
MARKETING
RESEARCH
ON
PREFERENCE OF CONSUMER Celebrity endorsement is a boom marketing concept in today’s world, since, customer recall is found to be higher with celebrity endorsement ment. We can see that every company is going for this marketing strategy for advertising their brands. Companies which produce fast moving consumer goods and companies which produce product like suiting, automobiles, garments, etc. all are adopting this marketing strategy to their product. So through this research we are trying to find out, that whether consumer buying product just because that product is being endorse/ advertising by celebrity or which are those factors consumer take into the consideration while buying any product. For this research we use random sampling method:
Sample size: Total 90 people were ed and interviewed. Due the different kind of characteristic of consumer, we used segmentation method. We segment them into the three categories, according to their age.
Sample design: AGE WISE 5—15 30
16—30 30
47
30—above 30
Marketing research & MIS
QUESTIONNARE: Name:. Age: _________ Sex: ____________ Occupation: 1. Do you like seeing celebrities in the ment? Yes: _______ No: _______ 2. Do you feel celebrities should ? Yes: ______ No: ________ 3. Do you buy the product endorsed by the celebrities? Yes: ______ No: ________ 4. Do you feel they relay the message more effectively? Yes: ______ No: ________ 5. Does celebrity attract towards product? Yes: ______ No: ________ 6. Which things you give more preference while purchasing any product? (a) Quality
(b) Celebrity
(c) Style
7. Would you like to switch your traditional product with new quality product? Yes: ______ No: ________
48
Marketing research & MIS
ANALYSIS OF THE SURVEY: •
Three categories of people were interviewed. The three categories being.
1. Age group of 05-15. 2. Age group of 15-30. 3. Age group above 30. •
The number of people interviewed was approximately 90.
DATA FOUND IN SURVEY 1. Do you like seeing celebrities in the ment?
100 80 60 YES
40
NO
20 0 1st 2nd 3rd group group group
2. Do you feel celebrities should ?
49
Marketing research & MIS
100 80 60 YES
40
NO
20 0 1st 2nd 3rd group group group
3. Do you buy the product endorsed by the celebrities?
100 80 60 YES
40
NO
20 0 1st 2nd 3rd group group group
4. Do you feel they relay the message more effectively? 100 80 60 YES
40
NO
20 0 1st 2nd 3rd group group group
5. Does celebrity attract towards product?
50
Marketing research & MIS
100 80 60 YES
40
NO
20 0 1st 2nd 3rd group group group
6. Which things you give more preference while purchasing any product? (a) Quality
(b) Celebrity
(c) Style
100 80 60
Quality
40
celebrity
20
style
0 1st group
2nd 3rd group group
7. Would you like to switch your traditional product with new quality product?
51
Marketing research & MIS
100 80 60 YES
40
NO
20 0 1st 2nd 3rd group group group
•
Findings from the survey:
1. All the three age groups like to see celebrities in the ments. The reason being, for the 1st age group - they just like to see their favorite stars in the ads. For the 2nd and 3rd group are they come to know about a new talent in their favorite stars or celebrities and quality of the product. 2. For the question "do you feel that the celebrities should do the ads" the 1st group said 'Yes' because they like the celebrities very much. The 2nd group said that they should come in the ads because it attracts the customers towards the product for which they are advertising. The 3rd group feel that as they are bored to see the same faces in the ads, it’s good that celebrities come in ads, its creates an interest to see the ad. 52
Marketing research & MIS 3. The 1st age group and the 2nd age group like to see the ads repeatedly but the 3rd group doesn't have that much inclination for it except a few selected ads. 4. When it comes to liking of celebrities, group 1 is very fond of celebrities. 5. For the question " do you think they relay the message more effectively", the 1st group had no answer as such but the 2nd group agreed to the question and the 3rd group gave the example of cad bury and coke sales ri still, after the pesticides problem.. They feel it’s because of Amitabh Bachchan for Cadbury and Aamir Khan for coke. 6. When it comes to buying the product endorsed by the celebrities the 1 st group says yes. They insist upon buying the product endorsed by them. The 2nd group is very choosy, they don't buy everything the celebrities endorse except FMCG goods like cold drinks and chocolates etc. the 3rd group is basic1ally more of logical thinkers. They say that "it’s good to see the ads and enjoy more than going and buying only those products endorsed by them.”
53
Marketing research & MIS
CONCLUSION Marketing research is one of the essential supplements of modern highly competitive, consumer oriented and global marketing system. It facilitates large scale marketing with satisfaction and pleasure to consumers. It is essentially a systematic and objective study of different problems of marketing. It helps to study various marketing problems in depth and offers various benefits to manufacturing and marketing firms or organizations. Marketing Research enables the firm or organization to make their business operations as per the needs and expectations of the consumers. It provides information regarding consumers and their needs/ expectations, intensity of market competition, sales promotion techniques used by the competitors. It also helps the firm to find out the method or strategies for making their products popular in the market, raising its goodwill and also its market reputation. The purpose of MIS is to provide relevant and reliable information to all departments and facilitates quick and correct decision-making. MIS is the life blood of marketing decision-making.
54
Marketing research & MIS
RFERENCES THE
INFORMATION
COLLECTED
IS
MAINLY
FROM
FOLLOWING SOURCES: •
BOOK REFERENCE:
“MARKETING MANAGEMENT” BY PHILIP KOTLAR. “MARKETING RESEARCH” BY N.G.KALE & M.AHMED •
WEBSITES:
www.hindustantimes.com www.bbc.com www.yahoo.com www.google.com
•
ECONOMIC TIMES
•
DAILY NEWS AND ANALYSIS [DNA]
•
TIMES OF INDIA
55
THE
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