Unit 2 Marketing Research Process

UNIT 2 Marketing Research Process
2.3 Characteristics of Good Marketing Research: After carefully carrying out the various
steps in marketing research process, the researcher has reduced the possibility of committing
major mistakes. This means the research conducted would give concrete and useful results. In
evaluating the quality of research project and making a value judgement on competency of the
researcher, there are four key characteristics to consider:
(i) scientific method,
(ii) creative research,
(iii) multiple methods,
(iv) the value measured against the cost of information.
(i) Scientific Method: The effective marketing research is based on the scientific method which
is used to conduct the research. The researcher gathers the data, makes these verifiable,
objective, and factual. He also develops hypotheses and tests validity scientifically through
statistical tools. So in a good marketing research, there is no scope for the use of intuition or
hunches.
(ii) Creative Research: Creativity is an essential feature of marketing research. When the
respondents do not give true answers or are unwilling to co-operate with the interviewer, in that
case indirect methods like projective techniques for interviewing must be used. These techniques
make the respondents to reveal the details which they are unwilling to tell in direct interviews. It
needs a lot of thinking and planning to organise that type of interviewers.
Fig.2.5: Elements of good marketing research

(iii) Multiple Methods: A scientific and creative researcher does not rely on this single method
for collecting data as well as for analysing them. A number of methods are available for
collection and analysing the data. The creative researcher always uses more than one method for
collection of data (viz., personal interviews, telephone surveys, mail surveys, observations, and
experimentation). Similarly, for the purpose of analysis also he may use different available
statistical techniques depending upon the type of data gathered. This makes results of the
research projects more reliable and scientific.
(iv) Value and Cost of the Information: An experienced, creative and scientific researcher
always evaluates the research results like, expenditure incurred on carrying out the research. The
decision regarding the method of data collection, research design to be used, and analysis
techniques to be employed must be made on the basis of cost-benefit analysis of the probable
research results. This cost and value comparison will make research most scientific and leave a
little scope for malpractices like creation of bias, manipulation of research results, etc.
2.4 Marketing Research Plan: Once the marketing problem is identified and defined it is the
responsibility of the researcher to chalk out a comprehensive plan explaining each step required
to conduct the research in a successful manner. Following are the major steps required to be
taken while preparing a MR plan:
a) Establish Research Objectives: What are the objectives which the researcher wants to
prove through the research? These objectives must be clearly highlighted before
proceeding ahead with a research problem. Suppose, Hoechst India Ltd., intends to study
in India the market potential for a new brand of pesticide it is introducing. This company
has to determine the objectives of this study. Whether the company intends to find out the
market potentials through a direct or indirect method? What does it want to conclude
through the market potential analysis?
b) Determine Type and Nature of Data required: Keeping in view the set objectives for
research investigation, the next step required to be taken is determining the information
requirements. Also the researcher must ascertain that which aspects of the problem at
hand should be emphasised more while collecting and analysing the research information.
Generally, it has been observed that researchers have the tendency to collect all
information or most of the information available on the problem in question. It is not a
healthy practice because all the data collected may not be used in the research report.
Thus, collecting a certain unneeded data may be a wasteful exercise. Suppose the
researcher wants to explore the problem of “decline in sales” of a specific company’s
product.
c) Determine Possible Sources for Required Information: Once the researcher has
decided about the type of information, he should know the sources where each data could
be collected. If primary data is to be collected, he might have to select a sample from the
study population. He must also decide whether personal interview, mail survey, or
telephone survey be used for collecting survey data. Other methods besides surveys like
observation and experimentation can also be resorted to depending upon the nature and
type of information needed. Secondary data may be sufficient to conduct research and
complete it. Therefore, a clear decision on sources of data is to be taken before starting
research exploration.
d) Evaluate Alternative Sources and Select the Most Desirable: If the decision on
sources of data is taken, it is duty of the researcher to evaluate these available sources of
data. For example, secondary data sources may be many, viz., Governmental,
commercial, MR agencies, marketing associations and others. It is to be decided whether
internal company records are sufficient or the above mentioned sources should also be
considered for data collection. For primary data customers, competitors, suppliers, and
dealers may be the sources. Which one of these is the best source depends upon nature
and situation of marketing problem at hand. Such sources must be reliable, accurate, and
complete. Also cost and time required should be lesser as compared to other available
sources.
e) Formulate a Research Plan in Complete Detail: Once the data sources have been
evaluated, it is study of the researcher to prepare a comprehensive plan combining
objectives, sources of data, their evaluation, etc. All constraints must also be highlighted
in the research plan.
f) Final Review of Research Plan: Once the complete and comprehensive plan is ready,
the researcher should carry out a review of the resources and constraints – whether the
plan so formulated could be implemented and what could be cost, time and effort needed
to implement such a plan. If everything is O.K. it is advisable to proceed ahead with the
implementation of the plan.
Fig.2.6: Process/Elements of research plan
2.5 Marketing Research Agencies: Definition, MR agency is an organisation which undertakes

marketing research assignments from business organisations which are not able to establish their
separate MR departments or cannot devote time, money and efforts on research activities.
Development of MR Agencies: In India, several MR agencies have been working particularly in
industrialised cities like Mumbai, Delhi, Calcutta, Chennai, Hyderabad, Banglore, etc. Many of
these agencies have established themselves as general consultancy, technical consultancy,
management consultancy and advertising consultancy organisations. When these were
established marketing problems were not that complex and pertinent as they are now.
MR agencies in India are taking up marketing research assignments in particular and other
agencies, in general. Though in recent years, several MR agencies have emerged but they still are
not well established and reputed as yet. There is a need that some independent MR agencies are
established so that marketing problems can be objectively and systematically solved. Other
general purpose agencies are not able to do justice with MR assignments.
Functions of MR Agencies: The scope and functions of MR agencies are same as those of any
MR department established by any business organisation. An MR agency is supposed to take up
any assignment concerning marketing problems of any business organisation. MR agencies are
conducting research on a variety of marketing problems, viz., business economics and corporate
research, and corporate responsibility research.
Organisation Structure of MR Agencies: Organisation structure followed by independent MR
agencies is of the same type as mentioned in independent MR department of a business
organisation. Generally, a MR agency has a MR Director under whose supervision several
managers or consultants work. These managers may be given duties and responsibilities on either
of the following basis:
a) Function,
b) Divided function,
c) Product/industry,
d) Market/regions.
In functional organisation, problems of MR may be assigned to managers and each of them may
be in-charge of an independent job.
Fig.2.7: Organisation structure of marketing research agencies

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UNIT 2 Marketing Research Process

Fig.2.5: Elements of good marketing research

Fig.2.6: Process/Elements of research plan

2.5 Marketing Research Agencies: Definition, MR agency is an organisation which undertakes

Fig.2.7: Organisation structure of marketing research agencies

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