prof. hemant kombrabail

TYBMS Prof. Hemant Kombrabail

MEANING OF MARKETING RESEARCH

The term "Marketing Research" is composed of two words -"Marketing" and "Research".

MarketingMarketing basically consists of spotting the needs of customers and meeting them in the best possible manner through appropriate production and distribution activities.

The term marketing refers to buying and selling activities. Exchange/transfer of ownership is the essence of marketing.

ResearchResearch means detailed/systematic/comprehensive study of a problem. .

Research is a process involving a series of steps to collect and analyze the information needed for decision-making in the desired / specific field of inquiry. The term research can be applied to any field of human activity.

Research means “studious enquiry" or "thorough, honest and impartial study conducted by trained men using scientific methods". It means detailed study relating to a particular subject.

The term MR is used extensively in modern marketing management. It acts as a tool for accurate decision making in marketing of goods and services. It is also useful for studying and solving different marketing problems faced by business units. . Here, the details (information and data) of the marketing problem are collected and studied, conclusions are drawn and suggestions/recommendations are made to solve the problem quickly, correctly and systematically. In MR/ marketing problem is studied in depth by collecting and analyzing all relevant information and solutions are suggested to solve the problem relating to consumers, product, market competition, sales promotion and so on.

MR is a special branch of marketing management. It is comparatively of recent in origin. MR acts as an investigative arm of a marketing manager. It suggests possible solutions on marketing problems for the consideration and selection by a marketing manager. It also acts as an important tool to study buyer behavior, changes in consumer life-styles and consumption patterns, brand loyalty and forecast market changes.

MR techniques are used by manufacturers/exporters/distributors and service organizations to collect information on various aspects of marketing. The information collected is analyzed and used for decision-making in the marketing management. MR 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 marketing management. MR suggests possible solutions on marketing problems to marketing manager for his consideration and final selection/decision. It is rightly said that the beginning and end of marketing management is marketing research. Decisions on each element of the marketing mix-product, price, distribution and promotion-need marketing research support. Marketing research is primarily used to provide information needed

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to guide marketing decision viz., market mix. It acts as a support system to marketing management.

DEFINITIONS OF MARKETING RESEARCH:

Let us now, consider some definitions of MR:

(1) The most widely accepted definition of marketing research is given by American Marketing Association (AMA). The AMA has defined marketing research as "the systematic gathering, recording and analyzing of data about problems relating to the marketing of goods and services”

(2) 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."

(3) 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."

(4) Luck, Wales and Taylor have defined marketing research as "the application of scientific method to the solution of marketing problems"

(5) Green and Tull have defined marketing research as "the systematic and objective search for and analysis of information relevant to the identification and solution of any problem in the field of marketing."

(6) British Institute of Management: In 1962, the British Institute of Management defined marketing research as/ "The objective gathering, recording and analyzing of all facts about problems relating to the transfer and sales of goods and services from producer to consumer."

FEATURES OF MARKETING RESEARCH:

(a) Marketing research is concerned with systematic gathering, recording and analyzing of information: In MR, information that is relevant to the marketing problem is collected in a systematic manner from all available sources. Thereafter, the same is tabulated and recorded for systematic scrutiny. Such scrutiny will offer certain specific conclusions useful for solving the marketing problem.

(b) In MR, information is to be collected objectively and accurately: This feature of MR suggests that the required information needs to be collected objectively. In brief, the information collected should be accurate, precise, relevant and properly verified. The conclusions drawn and the remedial measures introduced will be ineffective if the information collected is not reliable.

(c) Marketing research is a tool for solving marketing problems: MR is a means and not the end in itself. It is a tool in the hands of management for identifying and analyzing marketing problems. The purpose is to solve them correctly.

CHARACTERISTICS OF MARKETING RESEARCH:

(1) Systematic and continuous process: MR is a continuous process. This is natural as new marketing problems are bound to come from time to time in the course of marketing of

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goods and services. One type of research is not adequate to resolve all marketing problems. Similarly, new research projects will have to be undertaken to solve new marketing problems and challenges. A marketing company faces new marketing problems from time to time. For facing these problems marketing research activities need to be conducted on a regular basis. A marketing company has to conduct MR regularly for its survival & growth in the present dynamic marketing environment.

(2) Wide/comprehensive in scope and application: MR is wide in scope as it deals with all aspects of marketing of goods and services. It is more than just collecting data on marketing. Introduction of new products, identification of potential markets, selection of appropriate selling techniques, study of market competition and consumer preferences, introduction of suitable advertising strategy and sales promotion measures, are some areas covered by MR. It plays a role in all the three phases of the management process in marketing: planning, implementation and evaluation.

(3) Emphasizes on accurate data collection and critical analysis: In MR, 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: MR is useful to the sponsoring company. 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. Consumers also get agreeable goods and more satisfaction due to MR activities.

(5) Commercial equivalent of military intelligence: MR 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: MR 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. It suggests possible solutions for the consideration and selection by managers. MR is an aid to judgment and never a substitute for it.

(7) Applied type of research: MR is applied knowledge. It is also called 'decisional research as it provides specific alternative solutions to deal with a specific marketing problem. It studies specific marketing problem and suggests alternative solutions and possible outcome of each alternative. In addition, it is both science and an art. MR is also becoming highly professional activity.

(8) Reduces the gap between the producers and consumers: MR is an essential supplement of modern competitive marketing. It is useful for understanding the needs and expectations of consumers. It reduces the gap between producers and consumers and adjusts the marketing activities to suit the needs of consumers.

(9) Not an exact science: MR 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 lire problem. However, MR is not an exact science. It only suggests possible solutions and not the exact solution to marketing manager for consideration and selection. At present, MR is treated as a professional activity. We have professional agencies (MR agencies or advertising agencies) dealing with the marketing problems of their clients on commission basis.

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(10) Use of different methods: MR 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 that is suitable for the conduct of research project. This selection is important as the use of unsuitable methods affect the quality of research work.

(11) Dynamic character: MR is dynamic in nature. Its scope is fast expanding along with the new developments in the field of marketing. This is natural as MR is essentially for dealing with new problems and challenges in the field of marketing. In addition, developments in other subjects such as economics, statistics, computer science, sociology, psychology, cultural anthropology and behavioral sciences also bring corresponding changes in the field of MR. New methods, new techniques, etc., are used while conducting the research activities. This suggests that MR is a dynamic and progressive subject with new developments taking place regularly.

(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.

(13) Phenomenal growth: MR has made a phenomenal growth since its inception. It has become an important tool in the hands of management (to solve marketing problems) along with the advent of consumer-oriented philosophy in modern business. The increasing research budgets of companies are the indicators of its tremendous growth in recent years.

AIMS AND OBJECTIVES OF MARKETING RESEARCH:

The aims of the marketing research and analysis may be stated as follows:

(1) To study the needs, wants and expectations of consumers.

(2) To find out reactions of consumers to the products of the company.

(3) To evaluate company's sales promotion measures for suitable adjustment and improvement.

(4) To study current marketing problems and opportunities for suitable follow-up actions.

(5) To suggest the introduction of new products, modifications of existing products and to discover new uses of existing products.

(6) To design and test appropriate packages of company's products and make packaging as attractive as possible

(7) To study existing pricing, channels of distribution and market competition for suitable changes, if necessary.

(8) To find out methods for making the products of the company popular and raising its goodwill and market reputation.

(9) To assess competitive strength and policies.

(10) To estimate potential buying-power in various areas

(11) To know the company's expected share of the market.

(12) To determine the dimensions of the marketing problems, facilitate evaluation of the alternative solutions of different problems and help in the selection of a right course of action.

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(13) To define the probable market for a specialized product and to report on general market conditions and tendencies, buying habits, etc.

MARKET RESEARCH V/S MARKETING RESEARCH:The two terms “market research" and "marketing research" are used interchangeably though

there is difference in the meaning and scope of the two terms. "Market research" is used as a popular synonym for "marketing research". Market is a part of marketing and market research is only a part of marketing research. It covers only a few aspects of marketing. According to Philip Kotler, the term "market research" is accurate for describing research into the market, its size, geographical distribution, income and so on. However, it fails to cover the idea of research into the effects of marketing efforts on the market for which the term "marketing research" is more accurate. MR is increasingly coming into favor as the term that describes both ideas. Marketing research need not be treated as pure academic research. It is a type of applied research with scientific orientation.

Distinction between market research and marketing research

Dimension Market Research Marketing ResearchMeaning Market research directly relates to

market situation i.e. size, location, market competition and features of customers. It provides details about the market for decision-making and policy framing.

Marketing research is a systematic and comprehensive search/study of different aspects of marketing - including the current marketing problems and challenges for decision-making & policy framing.

Nature Market research is a branch of marketing research.

Marketing research is one branch of Marketing Information System.

Scope The scope of market research is limited/restricted to the study of market or market situation

The scope of marketing research is comprehensive & wide as it covers all aspects of marketing.

Type of term Market research is a narrow term as it relates to one aspect of marketing

Marketing research is a wide/broad term as it covers all aspects of marketing

Objective Market research is undertaken in order to deal with the problems and challenges relating to different aspects of market such as competition, market demand and consumer needs

Marketing research is undertaken in order to study varied types of marketing problems such as product line, marketing mix, advertising, packaging, branding and so on.

GROWING IMPORTANCE OF MARKETING RESEARCH:

Marketing research has received attention and importance along with the growth of highly competitive consumer-oriented marketing philosophy. Research activities in different aspects of

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marketing are necessary and useful in such competitive and flexible marketing environment. Large companies marketing consumer items noted the growing need of MR activities in the marketing decision-making process. They naturally took initiative in conducting research activities within the organization itself. This was followed by the formation of specialized marketing research agencies and advertising agencies for this purpose. This is how professional orientation was given to MR. Many marketing research departments and agencies were established after World War II.

MR activity (as we understand today) is comparatively new in the field of marketing. This activity probably began around 1950s (Modern era of marketing research) and attracted the attention of companies interested in marketing their products in the national and global markets. However, the concept of MR got firm roots in the marketing activity after 1910. First time the marketing research techniques were used by newspapers to predict the election results. However, during the second decade of 20th century, marketing research emerged as a valuable management tool to solve marketing problems. In the developed countries, marketing research activity is conducted on scientific lines. Even in India, large manufacturing companies treat marketing research as an essential supplement of planning and decision-making in the marketing field. It is treated as an indispensable tool for profitable and consumer-oriented marketing. The popularity of MR increased after 1960 due to the introduction of computers in data collection and analysis. In the early period, marketing research activities were confined to market studies only but in 1950s research relating to marketing activities was broadened to include all managerial aspects-price, produce place and promotion. In late 1950's motivational and psychological techniques were introduced to generate more information on consumers.

Several factors have contributed to the growing importance of marketing research. For example, due to large-scale production, producers could not have direct contact with the consumers. This created many problems before producers. For solving all such problems developed due to the gap between producers and consumer and marketing research activities prove to be useful.

Secondly, the shifting from sellers’ market to buyers' market made it necessary to have better understanding about consumer net-expectations. For this, marketing research proved to be useful.

Thirdly, the introduction of computers has contributed to the growth of marketing research activity.

Fourthly, rapid changes in the business environment, shift to consumer-oriented philosophy in business are also responsible for growing importance of marketing research.

Finally, the scope of marketing has widened due to population growth and development of rural markets. MR proved to be useful for dealing with the problems created by national and global markets. In brief, growing importance of marketing research in the present marketing system is the net result of various factors and forces available in the present marketing system. At present, MR activities are undertaken by marketing companies on their own. In addition, marketing research consultants and agencies provide expert advice to companies on general and specific marketing problems of their clients.

Relevance of MR under Globalization:

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The business world is fast moving towards globalization in which all countries participate. Every country has to face competition in the domestic as well as in export marketing. Survival in the global business is possible through quality improvement, cost reduction and by attracting consumers through various sales promotion techniques. Here, MR offers helping hand to companies. It offers suggestions for survival under global competitive environment. In brief, the importance/relevance of MR is fast growing along with the globalization of business. It is a must for survival and growth under globalization. Current marketing scenario is different as compared to traditional one. There is a new trend towards liberalization and globalization. Markets (domestic as well as foreign) are becoming highly competition. New companies and new products are entering in the markets. Survival is difficult under the present marketing environment. Here, MR offers various services. It is, now, a professional activity with new developments in regard to scope/coverage and techniques. In brief, MR has great relevance in the current marketing scenario in India as well as in all countries- developed and developing of the world. MR has enormous capacity to help and guide marketing companies in regard to their marketing problems and challenges.

FUNCTIONS OF MARKETING RESEARCH:MR performs five basic functions. These are: Description, evaluation, explanation, prediction and finally aid in decision-making. These functions are related to the research project undertaken. Usually, every research study performs all the five functions 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 that 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. Even marketing strategies can be decided as per the information available.

(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. For example, how far the packaging of the product is attractive to consumers or superior as compared to packaging by competitors and so on.

(3) Explanation: MR gives explanation to certain questions of a manufacturer. It may be 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 product. Such explanation is important as it enables a manufacturer to adjust his marketing policies in order to rectify the prevailing unfavorable situation.

(4) Prediction: MR conducts prediction function. Such predictions may be related to consumers, market environment/market competition, possible socio-economic 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 that consumers may prefer in the next year. In addition, prediction about the possible turnover in the years to come is also possible through suitable marketing research studies. In brief, marketing research is useful for understanding the marketing environment likely to develop in future. This facilitates proper adjustment in the marketing policies for the future period. In this sense, the prediction function is important even when all predictions made through research studies may not prove to be fully correct. However, the trend indicated can be used for appropriate policy decisions.

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(5) Aid in Decision-making: One more function of MR is to facilitate the process of decision-making in the marketing field. 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 that will be useful for the future period. This function of marketing research is closely related to other functions that it performs. These functions facilitate reasonably correct decision-making by marketing managers.

They also suggest the practical utility of MR activities.

MR functions provide feedback (information and guidance) to marketing managers and improve the quality of their decision-making. This practice is certainly safer as compared to decision-making on the basis of past experience or intuition. When reality is complex and many facts are not detectable, intuition is not adequate for decision-making. Similarly, experience is useful but decisions on experience alone may not be accurate.

Large companies and professional executives prefer to resort to marketing research than depending on experience. This is because information available is based on real data and is more reliable/ dependable. This facilitates correct decision-making. Thus, marketing executives should prefer decisions on the basis of information supplied through marketing research. Such decisions are likely to be more accurate as they are based on actual market situation.

In brief, the basic function of MR is to support marketing decision-making process. Marketing research does not provide ready-made decisions or exact solutions on all marketing problems. It only provides the clues or possible solutions that should be taken into consideration in the decision-making process. It provides support to skills and abilities of marketing managers.

The different functions of marketing research 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 programmers. They also suggest the role marketing research activity in modern competitive and consumer oriented marketing. Marketing research functions certainly improve the quality of decision-making by marketing managers.

ADVANTAGES/IMPORTANCE OF MARKETING RESEARCH:

1. Indicates current market trends: Marketing research 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.

3. Explains customer resistance: MR is useful for finding out customer resistance to company's products. The researcher also suggests remedial measures 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 provision of discounts and concessions to dealers. Marketing research facilitates sales promotion.

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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: Marketing research is useful for the selection and training of staff in the sales organization. It also suggests the incentives that should be offered for motivation of employees concerned with marketing.

7. Promotes business activities: Marketing research 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 programmers.

8. Facilitates appraisal of marketing policies: Research activities enable business executives to have an appraisal of the present marketing policies in the light of findings of research work. Suitable 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: Marketing research 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: Marketing research 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 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.

Marketing research need not be treated as a fad. It is one of those fundamental tools that today’s marketing manager needs to keep sharpened all the time so that he might be-m a position to minimize the business or marketing risk.

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Limitations of marketing research are as explained below:

(1) Marketing research offers suggestions and not decisions: Marketing research is not a substitute for decision-making process. It only offers possible suggestions/solutions to marketing problems. It actually acts as a tool that facilitates decision-making process. It guides marketing managers in taking balanced, result-oriented and rational decisions. The suggestions offered by marketing researchers are usually possible/probable solutions but not the exact solutions.

MR offers predictions but they are not necessarily accurate or perfect. Such predictions should be taken in the right spirit by the management. It offers information and guidance to marketing managers but not the final decisions, which are to be taken by managers themselves.

MR does not provide readymade solutions to marketing problems. It only provides indicators. It may not provide conclusive information on marketing problems. The marketing managers have to use available information properly and take appropriate marketing decisions.

The effectiveness of MR depends on the skill of the decision-maker. For this/ various marketing forces need careful consideration. However all such forces are not covered by research project undertaken. MR aids managerial decision-making but it cannot replace judgment and experience of marketing executives/managers.

(2) Marketing research cannot predict accurately: In MR, efforts are being made to estimate or predict the possible future situation. For this/ certain research studies are undertaken. However, the results/ conclusions arrived at may not be complete, perfect or accurate. They predict possible tendencies but not certainties. Future is always uncertain and exact prediction about the future is just not possible through marketing research. 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.

Marketing research gives guidance to marketing managers through information and conclusions drawn but such guidance may not be accurate as it is based on the predictions about future situation. The guidance offered through research activities may prove to be out-dated at the time of taking current marketing decisions.

(3) MR conclusions are not always dependable: 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 support. The classical example is that of Coke. Its MR showed that 68% customers in US liked the taste of the new formula developed by the Coca-Cola Corporation. However, the New Coke failed and in less than six months of its launch, the Coke management had to re-launch old Coke under the brand name Coke Classic. However, this failure of MR was mainly due to conventional approach of researchers.

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(4) Not an exact science: Since marketing research plates to consumers, it cannot be accepted as an exact science. Both quantifiable and non-quantifiable factors have to be assessed with the help of various techniques available to formulate marketing policies that will help to achieve maximum sales. The technical part of marketing research comes into operation particularly while collecting, analyzing, interpreting facts and figures. No amount of sophistication makes the subject an exact science. Because, as stated earlier, it concerns primarily the consumer as a human being Study of human behavior precludes absolute mathematical accuracy Probable trends, at the most can be indicated within predetermined limits. This sets a basic limitation to marketing research. At the same time, it necessitates a creative and skilled approach to the conduct of research. In this way, marketing research can contribute immensely to decision-making in a dynamic market. For accurate judgment, the marketer must be fully aware of the nature of limitations of marketing research.

(5) Time lag in presentation and implementation: There are other constraints as well that make for qualified utility of marketing research in decision-making. For example, there is the limitation of time. Collection of data, their checking as to accuracy and analysis and presentation often involve considerable time. The formulation of policies and their implementation as also their subsequent evaluation, which are a necessary follow-up, also take time. People's tastes and preferences are subject to frequent changes. It is, therefore necessary, keeping in mind the scope and nature of marketing research, that the projects should be completed in time to ensure their utility. In this process, at times, as a compromise some accuracy may have to be sacrificed, but the degree of it can be decided in relation to the specific circumstances.

(6) Limitations of personnel: Another constraint that is experienced pertains to personnel and its quality. Trained, well-equipped and well-directed research personnel can improve the quality and utility of marketing research. In the absence of this, research is likely to be costly and unreliable. Correct and complete information has to be collected from the respondents tactfully. The interviewer has to be reasonably aware of the psychological make-up of the persons that are being interviewed and should be able to analyze their thoughts and reactions. Apart from this, interviewers may have their own failings and weaknesses. Hence the training interviewers and investigators is a must. These limitations and constraints can be overcome or at least their impact can be minimized. To the extent a market researcher is successful in his task, the value of the findings can be improved. What is most important is that reliable data should be available on the basis of which production and marketing plans and programmers can be formulated with a fair degree of accuracy. It is better to be certain about 50 percent reliable information than do a guesswork, which has more chances of going wrong.

(7) Difficult to ascribe results: It is also difficult to ascribe results as a direct consequence of market research. The rupee value received by a firm from marketing research, therefore, cannot be measured accurately and completely. This has contributed to an element of hesitation on the part of organizations to undertake marketing research in many cases, especially in the developing countries.

(8) A cost-generating operation: Marketing research is expensive. The existence of sellers’ market or a sheltered market in many developing countries in particular has also been responsible for an apathetic approach to marketing research. However, with the growth and

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development of their economies, the marketing conditions are changing in favor of buyers and the need for and the value of marketing research are being increasingly recognized by the enterprises in these countries also. With the communication between the purchaser and the manufacturer becoming indirect, meagre and unsatisfactory and as a result of competition, the manufacturer is increasingly becoming anxious to know the magnitude of his sales to consumers, where they are being effected, the kinds of people buying his goods and their reactions and responses. All this information is essential to the manufacturer, as this decides ultimately whether he will survive in the market or not. He can improve his product and marketing strategy to secure consumer satisfaction and logically profit from these changes.

(9) Marketing research cannot study all marketing problems: Marketing research is rather very wide in scope. However, it cannot study all marketing problems particularly where it is difficult to collect relevant data. Similarly, research study is not possible where value judgments are involved. 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.

MR cannot provide answer to each and every marketing problem. A problem like Profitability Vs. Consumer satisfaction is difficult to answer with complete accuracy. The present marketing research techniques have certain limitations. MR fails to offer guidance to managers while dealing with specific problems. Thus, marketing research cannot study all marketing problems and do not offer ready-made solutions to all marketing problems faced by a business unit. It is also argued that very many times, marketing research tends to be fragmentary in its approach. As a result, it becomes difficult to have an overall perspective in which a marketing problem is to be viewed and studied.

(10) 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.

Marketing executives may also feel that researchers suggest solutions that are academic in character and lack practical utility. They use guidance and suggestions given by the researched only when they are compelled to do so. There is absence of meaningful dialogue between the marketing managers and the marketing research team. As a result/ marketing researchers get divorced from the main stream of marketing. Such attitude of indifference on the part of researchers and marketing executives makes marketing research meaningless.

It is necessary to have effective communication between researchers and marketing executives. Secondly, researchers should try to act as friend and guide of marketing executives. Marketing executives should also consider the findings of researchers in an impartial manner. Such attitude of mutual confidence and understanding is useful for co-operation between researchers and marketing executives. Conflict between researchers and executives is always undesirable but do exist in many companies. It is treated as one limitation of MR activity.

(11) 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

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desirable to conduct research work in a haphazard manner. Naturally, the research work takes longer period for completion and the findings when available may prove to be old and outdated. Even data collected very soon become old or historical due to fast changing market environment. As a result, research findings based on them become irrelevant in the changed situation.

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. Thus, urgent/pressing marketing decisions arc usually taken without the support of research work. In brief, lengthy and time consuming aspect of marketing research reduces its practical utility and is rightly treated as one limitation of marketing research technique.

(12) 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. They find it difficult to pay high salary to professional consultants. Research activities are conducted in limited areas due to non-availability of properly qualified staff. Such staff includes statisticians, psychologists, sociologists, economists and computer experts.

(13) Complexity of the subject: Marketing research fails to give complete and full proof solutions to management. This is because marketing research 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 marketing research activities. Errors in the research studies are also possible due to uncertainty of human behavior and also because of non-availability of reliable data.

(14) Changing behavior of consumers: Consumer is the focal point in marketing research. However, his buying motives are difficult to judge precisely and accurately. This brings some sort of uncertainty in the conclusions drawn from the research activity. The findings of the research work (particularly in the case of consumer research) may not prove to be accurate.

(15) 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 'filed'. Researchers take more interest in conducting research work rather than in supplying information and guidance to marketing managers in the decision-making process. Many research reports are rather bulky and unintelligible due to the use of technical language and unnecessary details. Such reports are rejected or are not used meaningfully b) marketing managers. This brings down the practical utility of MR.

(16) Passive nature: MR is passive by its nature. Sometimes, it becomes too superficial and faulty in business management. Man) conclusions drawn from the marketing research 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. Marketing research by itself may not give any benefit. It only shows the way to executives in the decision-making process.

(17) Fragmentary approach: On many occasions, marketing research tends to be fragmentary in its approach. It suggests solutions that may be difficult to put into operation. This is because

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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.

(18) Absence of effective communication: The research activity will be useful and result-oriented only when there is meaningful dialogue between the marketing management and marketing research team. However, such dialogue is ineffective in many organizations. This make' research activity ineffective.

Inspite of the limitations noted above, MR is necessary and useful in marketing management.

SCOPE OF MARKETING RESEARCH / BRANCHES OF MR:

Marketing research is a subject with wide scope. Broadly speaking, it is concerned with the marketing activities of an enterprise. All activities of a seller-to market his products to consumers are covered by such research. Marketing research is primarily concerned with "4 Ps" of marketing mix. These are: Product, Price, Place and Promotion. The scope of marketing research is comprehensive and is actually widening in recent years. Products research, sales research, pricing research, brand and package research, promotion research and customer research arc the usual areas covered by MR. In addition, specialized research activities such as motivation research, consumer satisfaction research, etc. are also undertaken to meet the specific needs of a business unit. Additional areas and new methods of conducting research activities are regularly added within the scope of MR.

In 1973, the American Marketing Association noted that marketing research activities were undertaken on 36 different topics of 1322 companies interviewed. Even in India, large companies conduct research activities on many marketing problems. Finally, it may be pointed out that marketing research is essentially for solving the marketing problems of a business unit. Naturally, research activities will be adjusted accordingly. This suggests that there is no limit to the areas covered by marketing research. Everything connected with marketing comes within the scope of MR.. The branches of MR are as explained below:

1. Product Research: Product research relates to products that are to be marketed to consumers. It is useful for introducing new product that 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 and is important for making the products attractive and agreeable to consumers. Packaging is now treated as a tool for sales promotion. It attracts the attention of consumers and induces them to purchase products. Constant changes in the package design are-required for sales promotion. For innovation in the package design/ packaging research is necessary. Packaging research is now treated as an independent branch of marketing research. Such research is conducted in order to know the impact of packaging. Branding and packaging normally go together and hence brand research is treated as a part and parcel of packaging research.

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3. Pricing Research: Pricing research relates to pricing of the product It relates to analysis of pricing policies and strategies, studies market price trends, fixation of market prices, studies relating to prices charged by competitors, studies relating to future price trends, price incentives for sales promotion and provision of price discount and other price concessions to dealers and consumers.

4. Market Research: Market research proper relates to analysis of consumer markets, assessment of market trends, forecasting of business conditions, setting of sales territories and sales quota, sale potentials studies, studies of wholesale marketing, demography descriptions of customers, market competition studies, sale-forecasting, estimating demand for new products, analyzing relative profitability of sales territories and monitoring competitive-marketing activities.

5. Sales Research: Sales research relates to studies of sales outlets, sales territories and their revision, trends in sales, sales forecasting, effectiveness of sales force, sales policies and sales performance and so on.

6. Promotion and Distribution Research: Promotion research related to assessing effectiveness of the sales force and selling efforts, testing of media selected, advertising copy and assessing effectiveness of advertising campaigns. The scope of this area of marketing research also includes the study of channels of distribution for modification, distribution cost analysis of the physical distribution, problems relating to warehousing, 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 preferences and purchasing patterns

8. Policy Research: Policy research activity is connected with the evaluation of effectiveness of marketing policies, sales policies, distribution policies, pricing policies, inventory policies and so on. Necessary changes in such policies are possible through intensive policy research studies.

9. Advertising Research: It relates to evaluation of advertising effectiveness, analyzing competitive advertising and selection of appropriate advertising media.

10. Media Research: Different media are used for communicating message about the products to prospective buyers. Media are used for advertising and publicity purpose. Newspapers, radio, TV magazines, transport vehicles, etc. are the media used for advertising. Media research relates to detailed study of different media for selection and use.

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11. Motivational Research: Motivational research is one aspect of consumer research as it deals with consumer behavior. It studies "Why" aspect of consumer behavior. Consumer research is useful for finding out the sentiments, buying motives, priorities and inner feelings of consumers. It is a type qualitative research.

12. International Marketing Research: International marketing research deals with foreign markets that are attractive and profitable provided products and marketing activities are adjusted as per the need of foreign markets and buyers. Such research is useful for exploring profitable foreign markets, for export promotion and for making suitable modifications in the exportable items. Data collection about foreign markets, market surveys, etc. are undertaken under international MR. Such research is costly and time consuming as compared to internal research. However, it is a must in the case of exporting companies. International MR is also undertaken by export promotion organizations such as Export Promotion Councils and Commodity Boards.

APPLICATION OF MARKETING RESEARCH

A. TRADITIOMAL APPLICATION OF MARKETIMG RESEARCH

Traditionally, marketing decisions have been divided into 4P's - product, price, promotion and place decisions.

I. NEW-PRODUCT RESEARCHNew product development is critical to the life of most organizations as they adapt to their changing environment. Since, by definition, new products contain unfamiliar aspects for the organization, there will be uncertainty associated with new products. New product can be divided into four stages

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a. Concept generationThere are two types of concept generation research. They are:

1. Need identification. The emphasis In need research is on identifying unfilled needs in the market. Marketing research can identify needs in various ways. Some are qualitative and others, such as segmentation studies can be quantitative. Following are some examples:i. Perceptual maps, in which products are positioned along the dimensions by which users

perceive and evaluate, can suggest gaps into which new products might fit. Multidimensional scaling is used to generate these perception gaps.

ii. Social and environment trends can be analyzed.iii. An approach termed benefit structure analysis has product users identify the benefits desired

and the extent to which the product delivers those benefits, for specific applications. The result is an identification of benefits sought that current product do not deliver.

iv. Lead user analysis the approach in which instead of just asking users what they have done, their solutions are collected more formally. Lead users are positioned to benefit significantly by solving problems associated with these needs. Once a lead user is identified, the concepts that company or person generates are tested.

2. Concept identification. During the new product development process there is usually a point where a concept is formed but there is no tangible usable product that can be tested. The concept should be defined well enough so that it is communicable. There may be simply a verbal description, or there may be rough ideas for a name, a package, or an advertisement approach. The role of marketing research at this stage is to determine if the concept warrants further development and to provide guidance on how it might be improved and refined

b. Product Evaluation and DevelopmentProduct evaluation and development, or product testing, is very similar to concept testing, in terms of both the objectives and the techniques. The aim is still to predict market response to determine whether or not the product should be carried forward. 1 Use testing - The simplest form of use testing gives users the product and after a reasonable amount of time asks their reactions their intentions to buy it. 2. Predicting trial -Trial levels (the percentage of a sample of consumers who had purchased the product at least once within 12 months after launch) were predicted on the basis of three variables: Product class penetration (PCP) Promotional expenditure Distribution of the product3. Pretest marketing - Two approaches are used to predict the new brand's market share. The first one is based on preference judgments. The preference data are used to predict the

proportion of purchases of the new brand that respondents will make given that the new brand is in their response set.

The second approach involves estimating trial and repeat purchase levels based on the respondent's purchase decisions and intentions-to-buy judgments.

c. Test marketingTest marketing allows the researcher to test the impact of the total marketing program, with all its Interdependencies, in a market context as opposed to the artificial, context associated with the concept and product tests that have been discussed. Test marketing has two primary functions. The first is to gain information and experience with the marketing program before making a

total commitment to it.

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The second is to predict the program's outcome when it is applied to the totalmarket There are really two types of test markets:

1. Sell-in test markets are cities in which the product is sold just as it would be in a national launch. In particular the product has to gain distribution space.

2. Controlled distribution scanner markets are cities for which distribution is prearranged and the purchase of a panel of customers are monitored using scanner data.

eariy stages of the product life cycle are sacrificed in the expectation that higher volumes in later periods will generate sufficiently greater promts to result in overall profit for the product over its life

III. DISTRIBUTION RESEARCHTraditionally, the distribution decisions in marketing strategy involve the number and location of sales persons, retail outlets, warehouses and the size of discount to be offered The discount to be offered to the members in the channel of distribution usually is determined by what is being offered by existing or similar products and also whether the firm wants to follow; a "push1 or a "pull” strategy Marketing research, however, plays an important role in the number and location in decisions about numbers and locations

a. Warehouse and Retail Location ResearchThe essential questions to be answered before a location decision is made are "What costs and delivery times would result if we choose one location over another?"Simulation of scenarios is used to answer these questions. The simulation can be relatively simple paper-and-pencil exercise for the location of 3 single warehouse in a limited geographic area. or it can be a complex, computerized simulation of a warehousing system for a regional or national marketi. Center of gravity simulation - The center for gravity method of simulation is used to locate a

single warehouse or retail site In this method, the approximate location that will minimize the distance to customers, weighted by the quantities purchased is determined The more symmetry there is in customer locations and weights the more nearly the initial calculation approximates the optimal location The location indicated by the first calculation can be checked to be determine if it is optimal (or near optimal) by using a "confirming” procedure. If it is not optimal, successive calculations can be made as necessary to “home in" on the best location

ii. Computerized simulation models - The concept involved m simulations for this purpose is quite simple Data that describes the customer characteristics (location of plants, potential warehouse and retail sites) and distribution costs (costs per mile by volume shipped, fixed and variable costs of operating each warehouse the effect of shipping delays on and variable costs of operating each warehouse, the effect of shipping delays on customer demand) are generated and input into the computer The computer is programmed to simulate various combinations of numbers and locations of warehouses and to indicate which one(s) gives the lowest total operating cost Effective results have been achieved by using computer simulations to design distribution systems

iii. Trade area analysis - Formal models have been developed that can be used to predict the trading area of a given shopping center or retail outlet based on relative size travel time and image A variety of other techniques can be used to establish trading areas. An analysis of the addresses of the credit card customers or license plates of the cars (by plotting the addresses of the car owners) can provide a useful estimate of the trading area. Check-clearance data can be used to supplement this information. The best, but also the most expensive way of establishing trading area bound Aries is to conduct surveys to determine them

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iv. Outlet location research. - Individual companies and, more commonly, chains, financial institutions with multiple outlets, and franchise operations must decide on the physical location of their outlets). Three general methods involves plotting the area surrounding the potential site in terms of residential neighborhood, income levels, and competitive stores. Regression models have been used for location studies for a variety of retail outlets, including banks, grocery stores, liquor stores, chain stores and hotels. Data for building the model and for evaluating new potential locations are obtained through secondary data analysis and surveys.

b. Number and location of Sales RepresentativesHow many sales representatives should be in a given territory? There are three general research methods for answering this question. The first, the sales effort approach, is applicable when the product line is first introduced and

there is no operating history to provide sales data. The second involves the statistical analysis ofsales data and can be used after the sales program

is under way. The third involves a field experiment and is also applicable only afterthe sales program has

begun.

IV. PROMOTION RESEARCH

It focuses on the decision that are commonly made when designing a promotion strategy. The decision for the promotion part of a marketing strategy can be divided in to (1) Advertising and (2) Sales promotion. Sales promotion affects the company in the short term, whereas advertising decisions have long-term effects. Companies spend more time and resources on advertising research than on sales promotion research because of the greater risk and uncertainty In advertising research.

1. Advertising research

Most companies concentrate on advertising because advertising decisions arc more costly and risky than sales promotion decisions. Advertising research typically, involves generating information for making decisions In the awareness, recognition, preference and purchasing stages.What separates an effective advertisement from a dud? The criteria will depend, on the brand involved and its advertising objective. However, following basic categories of responses are used in advertising research in general and copy testing in particular

a) Advertisement recognition b) Recall of the commercial and its contents c) The measure of commercial persuasion and the impact on purchase behavior.

• Purchase behavior- Coupon stimulating purchasing- Split-cables tests. Information Resources Inc's (IRI) Behavior Scan is one of several split-cable testing operations. Behavior Scan monitors the purchases of panel members as well as in-store information such s special prices, features and displays.• Tracking studiesWhen a campaign is running, its impact often is monitored via a tracking study Periodic sampling of the target audience provide a time trend of measures of interest. The purpose is to evaluate and

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reassess the advertising campaign, and perhaps also to understand why it is or is networking. Among the measures that often are traced are advertisement awareness, awareness of elements of the advertisement, brand awareness, beliefs about brand attributes, brand image, occasions of use, and brand preference. Of particular interest is, knowing how the campaign is affecting the brand, as opposed to how the advertisement is communicating the message.• Diagnostics testingA whole category of advertising research methods is designed primarily not to test the impact of a total ad but rather to help creative people understand how the parts of the ad contribute to its impact. Which are weak and how do they interact? Most of these approaches can be applied to mock-ups of proposed ads as well as finished ads.• Copy test validity This test refers to the ability to predict advertising response. * Budget decisionArriving at analytical research-based judgments as to the optima! advertising budget Is surprisingly difficult. However, there are research inputs that can be helpful. Tracking studies that show advertising is either surpassing or failing to reach communication objectives can suggest that the budget should be either reduced or increased.• Media researchIn evaluating a particular media alternative, it is necessary to know how many advertising exposures it will deliver and what will be the characteristics of the audience. A first cut of the vehicle's value is the cost per thousand (circulation), the advertisement insertion cost divided by the size of the audience.

2. Sales Promotion ResearchThere are three major types of sales promotion: consumer promotion, retailer promotion and trade promotions.In consumer promotion, manufacturers offer promotions directly to consumers, whereas retail promotions involve promotions by retailers to consumers. Trade promotions involve manufacturers offering promotions to retailers or other trade entities. Trade entities can also promote to each other. For ex ample, a distributor can offer a steep temporary price cut to retailers in order to sell excess inventory. It is called trade promotions, since the recipient of the promotion is a marketing intermediary.Sometimes several manufacturers or several retailers combine in one promotion. These are called cooperative promotions or promotion partnerships.

B. CONTEMPORARY APPLICATIONS OF MARKETING RESEARCH

1. Competitive Advantage.The notion that achieving superior performance requires a business to gain and hold an advantage over competitors is central to contemporary strategic thinking. Businesses seeking advantage are exhorted to develop distinctive competencies at the lowest delivered cost or to achieve differentiation through superior value. The assessing competitive advantage can be done in number of ways. The methods can be broadly classified as market-based and process-based assessment Market-based assessment is direct comparison with a few target competitors, whereas process-based assessment is a comparison of the methods employed.

2. Brand Equity.Brand equity is defined as a set of assets and liabilities linked to a brand that add to or subtract from the value of a product or service to a company and/ or its customers. The assets or liabilities

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that underlie brand equity must be linked to the name and/or symbol of the brand. The assets and liabilities on which brand equity is based will differ from context to context. However, they can be usefully grouped into five categories: a) Brand loyalty b) Name awareness c) Perceived qualityd) Brand association e) Other proprietary brand assets: patents, trademarks, channel relationships etc.

3. Customer satisfaction.The measurement of customer satisfaction and its link to product/service attributes is the vehicle for developing a market-driven quality approach This approach requires a sequential research design that uses the results from each research phase to build and enhance the value of subsequent efforts. During this process, it is imperative to study customers who were lost, to determine why they left This issue must be addressed early in the system design The steps involved in customer satisfaction isa) Define goals and how information will be used b) Discover what is really important to customers and employees c) Measure critical needs d) Act on the information e) Measure performance overtime f) Issues in questionnaire design and scaling in satisfaction research

4. Total quality managementTQM Is a process of managing complex changes In the organization with the aim of improving quality.The power of measurements is clearly visible in applications of quality function deployment (QFD), a Japanese import used to make product design better reflect customer requirements. In QFD. a multifunctional team measures and analyzes in great detail boih customers attitudes and product attributes. Marketing research plays a crucial role atthis stage of the process. Then the team creates a visual mtrix in order to find ways to modify product attributes (engineering characteristics) so as to improve the product on the customer-based measures of product performance. Along the way, the team must develop a series of measures of several different types.

C. EMERGING APPLICATION OF MARKETING RESEARCH

1. Database marketingA database is a customer list to which has been added information about the characteristics and the transactions of these customers. Businesses use it to cultivate customers - as they seek new customers.

NeedA database provides the means for research to support decisions. It enables profiling of customers by searching for prospects who are similar to existing customers. It provides the means for implementation of profitable programs of repeat business and cross-selling. It assists in marketing planning and forecasting. Further a database can:• Match products or services to customers' wants and needs • Help select new lists or use new media that ft the profile of existing customers. • Maximize personalization of all offers to each customer.

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• Provide for on going interaction with customers and prospects.• Pinpoint ideal timing and frequently for promotions• Measure response and be accountable for results• Help create the offers most likely to elicit responses from customers• Help achieve a unique selling proposition (USP), targeted to appeal to your customers• Integrate direct-response communication with other forms of advertising• Demonstrate that customers are valuable assets.

Types of database1. Active customers2. Inactive customers3. Inquiries

Benefits of database marketinga) Customers are easier to retain than acquire. The first reason is that it takes five times the

energy and budget to get new customer a sit does to keep an existing one. Also, a disproportionately small number of your customers generate a very large proportion of your income.

b) Determine their "Lifetime Value”. Building a lasting relationship becomes the obvious way to a prosperous and profitable future.

c) Developing relationships with customers. Understanding your customers' tastes and preferences on an individual basis is the foundation for relationship marketing. Relationship marketing combines elements of general advertising. sales promotion, public relations and direct marketing to create more effective and more effective ways of reaching consumers. It centers on developing a continuous relation ship with consumers across a family of related products and services.

2. Relationship marketingThe relationship marketing process incorporates three key elements.1. Identifying and building a database of current and potential consumers, which records and

cross-references a wide range of demographic, lifestyle and purchase information,2. Delivering differential messages to these people through established and new media channels

based on the consumers' characteristics and preferences3. Tracking each relationship to monitor the cost of acquiring the consumer and the lifetime value

of his other purchases.

Reasons for Inaccuracy in Marketing Research

(1) Human behavior is always unpredictable: MR deals with humans who are far more complex and unpredictable than the subjects of physical sciences. A human being has ability to think and react. The responses of human beings are different unda1 different situations. These features of human behavior bring limitations on the findings of MR.. The conclusions drawn may not be always identical, accurate and reliable. This makes the conclusions less scientific.

(2) Human behavior is difficult to measure precisely: MR is not fully scientific as human behavior is difficult to measure accurately Human beings are liable to change in their outlook and behavior during the process of experimentation. Moreover, devices for measuring human behavior are not available. This affects the conclusions drawn in the research work. General conclusions about human behavior can be given. However, such rough estimates are not

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completely scientific. In short, complexity of human behavior puts limitations on MR and makes it less scientific.

(3) Human beings react differently under test conditions: MR is les^ scientific because human beings react differently under different conditions or while testing. The human tendency is to keep the real causes/reactions secret when interviewed for a research purpose. This affects the quality of results of research project. Such results are not scientific to the fullest extent. It is always difficult to collect reliable information from the persons selected for interview. It equally difficult to verify the correctness of the information collected from them. This makes MR less scientific.

(4) MR cannot be completely objective: MR cannot be completely objective as human beings cannot be studied in complete isolation This is possible in laboratory work by physical scientists, as they can shut off all outside influences during the period of experimentation However an investigator in MR cannot be separated from the society. His attitudes and interests are bound to affect research findings. This affects the conclusions drawn out of the MR project.

(5) Human beings cannot be studied in isolation: In MR, it is not possible to study the behavior of a consumer independently. It needs to be studied along with his personal interests, values, attitudes and so on. This situation affects the behavior of the consumer and the findings of the research work. The researcher has to conduct his study openly and has no control over the external factors. As a result, the findings of marketing researcher are bound to be less scientific.

(6) Dearth of reliable information: Information serves as the base of MR. The quality of research work depends on the reliability of information collected. The information collected in MR may not be accurate or complete. It is possible to draw only rough estimates/ conclusions from such information/data. This makes research conclusions less accurate and reliable. Sometimes, even the attitude and approach of researchers, investigators, etc. may make the research work less scientific.

CONSUMER ORIENTATION TO MARKETING RESEARCH:MR is concerned with all types of marketing problems. They may related to product, price, distribution, packaging and branding, publicity and sales promotion. All these problems are required to be studied in the context of consumer and his expectations. In other words, MR in the present marketing environment is essentially consumer-oriented and| not profit or product oriented. In MR the consumer and his need, expectations and satisfaction/welfare are given priority. All marketing aspects are studied in order to give convenience and satisfaction to consumers. Consumer research is one important branch of MR as all research activities move around the consumer and his satisfaction.

Consumer orientation to marketing research means making research activities pro-consumer rather than pro-manufacturer. It also means giving more importance to consumers and their satisfaction, expectations, needs, etc. and not merely to sales promotion and profit to the manufacturer. Such orientation is essential as consumer is the center of all marketing activities and his satisfaction is the base or basic consideration in modern business.

This consumer orientation to MR is the result of modern concept of marketing, which is basically different from the traditional concept of marketing. It is consumer-oriented and service-oriented.

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It is societal in character. As a result, in the marketing research activities, special attention is now given to consumers. All research activities are for making marketing useful, agreeable and acceptable to consumers. This is what is described as consumer orientation of MR. Research activities are now made pro-consumer rather than pro manufacturer or trader. Even research techniques and methodologies are adjusted according.

The importance of consumer is now accepted not only in MR but also in all aspects of business management. In fact, consumer is the most important person in business. He is the king and should be treated accordingly. All production and marketing activities are for meeting his needs and also for raising his satisfaction and welfare. He is the cause and purpose of all business activities. Finally, modern business is not profit-oriented but consumer oriented or service oriented. All these arguments are equally applicable to MR. In other words, MR activities move around the consumer and his satisfaction. He is the focus point in all research projects as MR is essentially for adjusting the marketing activities as per the expectations of consumers. This clearly suggests the importance of consumers in all MR activities.

Marketing research helps the management to be consumer-oriented in its policies and decisions. The benefits of MR will not be available if consumer and his needs, conveniences, expectations, etc. are not given due attention. This suggests that neglect of consumers in any type of research activity is undesirable and even dangerous. The benefits of marketing research will be available only when research activities are conducted after due regard to consumer who acts as the center of all marketing activities. Information available from consumer research can be used as a foundation for many important marketing decisions.

Finally, it may be noted that there is nothing wrong in making MR activities pro-consumer. In fact, this trend exists since the early growth of marketing research activities. Consumer is important in all marketing activities and the same rule is applicable to MR activities. Research activities without due consideration to consumers may not give expected results. In fact, the purpose of MR is to find out precisely what the consumer wants and how to make marketing activities agreeable to consumers in all respects such as product, price, packaging, promotion j and so on. In brief, MR as a subject has consumer-orientation in all its| aspects. Consumer/Customer is the cause and purpose of all marketing research activities. How to make consumers happy and satisfied is the| basic issue before the researchers. At present, all manufacturing/, marketing companies spend huge money on marketing research. The purpose is to make marketing activities consumer oriented.

NEED OF MARKETING RESEARCH

The following factors suggest increasing need of MR: 1. Growth and complexity of markets: Markets are no more local in character. They are now

national and even global in character. 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 contact with all mark and consumers directly. Similarly, they have no control on the marketing system once the goods are sold out to middlemen. The marketing procedures are now, complicated. The market competition is also severe

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This situation creates new problems before the manufacturers, which can be faced effectively through MR as it acts as a feedback mechanism to ascertain first hand information, reactions, etc. of consumers and middlemen. Marketing activities can be adjusted accordingly.

2. Wide gap between producers and consumers: Market research is needed as there is a wide gap between producers and consumers in the present marketing system. Due to mass sc production and distribution, direct (personal) contact between product and consumers is practically lost. This creates information gap between producers and consumers. The middlemen dominate the market] scene. Producers do not get dependable information as regards nee expectations and reactions of consumers. They are unable to adjust the products, packaging, prices, etc. as per the needs and requirements consumers.

The problems created due to information gap can be solved Q] through MR as it is possible to establish contact with consumers a collect first hand information about their needs, expectations, likes & dislikes, preferences and special features of their behavior. Thus marketing research enables a manufacturer to make his marketing policies pro-consumers. Effective communication with consumers is a possible through MR activities. Thus, MR is needed for removing wide communication gap between producers and consumers.

3. Changes in the composition of population and consumption pattern: In India, many changes are taking place in composition of population. There is a shift of population from rural urban areas. There have been considerable changes in the consumption and expenditure patterns of consumers in India. The incomes of people, in general, are rising. This brings corresponding increase in the purchasing capacity and buying needs and habits. The rising prices affecting the lower and middle class consumers and their purchasing power and purchasing priorities. Similarly, there are considerable changes in the purchasing pattern of clothing and other consumer items. The demand for consumer durables is fast increasing. The markets now flooded with consumer durables like TV sets and so on.

Manufacturers are expected to know such qualitative & quantitative changes in the consumer preferences and their consumption pattern. For achieving this objective, MR activities are necessary and useful. It is possible to adjust production and marketing operations as per the information supplied from consumer surveys and market surveys conducted under various MR projects. In brief, MR is needed for the study of changes in the pattern of consumption and corresponding adjustment in the marketing planning, policies and strategies.

4. Growing importance of consumers in marketing: 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. The growth of consumerism has created new challenges before manufacturers and traders. Even growing customer expectations create situation when manufacturers have to understand such expectations and adjust the production and marketing policies accordingly. Indifference towards consumer expectations may lead to loss of business. In the present marketing system, consumers cannot be taken for granted. Their expectations need special consideration in all marketing activities. Production needs to be adjusted as per the expectations of consumers.

Marketing research particularly consumer research gives valuable data relating to consumers. It is possible to use such data fruitfully while framing marketing policies. Thus, marketing decisions can be made pro-consumer through marketing research activities

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.5. Shift of competition from price to non-price factors: Cutthroat competition is unavoidable in

the present marketing field. Such competition may be due to various factors such as price, quality, packaging, advertising and sales promotion techniques. Entry of new competitors creates new problems in the marketing of goods and services. In addition, market competition is no more restricted to price factor alone. There are other non-price factors such as packaging, branding, after-sale service and advertising which create severe market competition. Every producer has to find out the extent of such non-price competition and the manner in which he can face it with confidence.

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 consumer 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. Companies have to develop and market new products more quickly than ever before. However, such decisions are always difficult. 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 solved through MR technique. This suggests its need as tool for decision-making. MR is needed as a tool for reasonably accurate decision-making in the present highly competitive marketing system.

7. Problems in the distribution system: Modern distribution system is complex and costly. How to market goods efficiently and economically is a basic issue in the present marketing system. Modern production is now possible because of the use of advanced technology. However efficient distribution is rather difficult. For this, it is necessary to identify new markets, new consumers, new channels of distribute and new sales promotion techniques. For such identification, MR needed.

The cost of marketing is fast increasing in modern marketing. The burden of rising marketing cost is normally passed on to consumers. This creates adverse effects on marketing activities. In brief, obstacles large scale distribution and rising distribution costs are two problems in the present marketing system. These problems can be studied & solved through MR activities relating to products, distribution channel consumers and so on. This suggests the growing need of MR.

8. 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. Me products are manufactured and brought in the market. Articles with good demand become old and out-dated within a short period Consumers prefer new/novel articles in place of old ones. Produce and distributors find it difficult to take decisions due to lack knowledge about future market trends. Here, marketing research useful as it provides information about future trends in the markets field and enables marketing managers to take quick and corn marketing decisions. This suggests the need of marketing research.

9. Existence of large size enterprises: Modern manufacturing enterprises are large in size. Such enterprises can work as viable units and make progress only when their products are made

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popular with the consumers. Large-scale enterprises need distribution of their products on a massive scale. Here, MR is useful. It helps the enterprises explore, identify and locate new consumer markets. It suggests the ways and means for large-scale distribution of goods at the national/global level. In brief, MR is needed as an essential element of large scale manufacturing and marketing.

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 activity. It supports 1 marketing managers while dealing with the marketing problems. Marketing research is needed as it acts as a key factor in successful marketing of goods and services.

ROLE OF MARKETING RESEARCH IN MARKETING MANAGEMENT: (i) Close relationship between MR and Marketing Management: Marketing management covers different areas of marketing such as production, packaging, branding, pricing, distribution, advertising and sales promotion. Marketing research activity is closely integrated with all these key areas of marketing. It is an integral part of scientific marketing management. This is natural as marketing research deals with the different marketing problems of a company and offers guidelines to marketing managers in solving such problems. In brief, marketing research acts as one useful and reliable tool for framing marketing policies and decision-making in regard to different aspects of marketing. It plays an important role in marketing management.MR collects and provides information to marketing managers for decision-making. It studies certain marketing problems and offers suggestions for solving them. It also acts as the intelligence wing of marketing management.

Marketing management and marketing research are inter-related activities. In fact, marketing research cannot exist as a watertight compartment nor has it any existence independent of marketing management. It must be a part and parcel of the problem-solving process of marketing management. MR activities in any organization must be directly related to the marketing problems faced by that organization. This is natural as MR cannot be effective, if it is assigned some portions of a marketing problem for exploration in a piecemeal manner. It must be supplied with the full background required to study the whole problem in depth. This will enable the researcher to provide reasonably accurate solution to the problems faced by the marketing managers. Similarly, MR will be effective/purposeful, if the research activities are conducted in a regular and continuous manner and also as per the specific needs of the marketing management.

(ii) Need of effective integration between MR and Marketing Management: Marketing research needs to be treated as a part and parcel of total marketing management. It has to operate as a problem-solving tool of marketing management or as an intelligence wing/tool of marketing management. Similarly, MR should not be conducted merel1 as an academic activity but as a tool for decision making by the marketing managers. It should facilitate quick and reasonably correct decision-making by the top-level marketing managers. MR should act as an aid to decision-making in the marketing management.

This suggests that there should be effective integration in between marketing management and marketing research. Both these activities should be effectively co-ordinated. This will ensure efficient management of marketing activities of a company. There is no scope for any conflict in between the two as such conflict is undesirable to the company itself. However, on many

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occasions, differences of opinion and discord between research department and management are visible Keane, John G has spelt out the conflicting points of view of the to management and marketing researchers in the areas of research responsibility, research personnel, budget, assignments, problem definition, research reporting and use of research.

MR will be effective/purposeful only when there is close c ordination between research and actual management. Research activities must be necessarily relevant to the marketing problems. Both (researchers and top-level management) should have a clear understanding and appreciation of each other's position and role. However, in practice, conflicts are noticed between the top-level management and the researchers. Such conflicts should be avoided.

(iii) Responsibility of top management for effective integration: The top management should accept honestly that the researchers have a capacity to study marketing problems and offer valuable suggestions for solving the marketing problems. In addition, adequate budget provision and all necessary facilities should be provided to the researcher to investigate marketing problems minutely and make suitable recommendations. The top management should keep meaningful communication with the marketing researchers in a continuous manner. The bias attitude towards them is certainly undesirable. Finally management should avoid too many layers of communication between top management and researchers. It is also desirable to discuss the recommendations of researchers with open mind. Such liberal outlook will make MR activities useful to the marketing management.

The researchers should also adopt open and constructive approach towards the top-level management. In the research project, attention should be given to the plans and priorities decided by the top-level management. The researchers should continuously improve the research methodology and see that their reports and recommendations are easily acceptable to the management. Delay in the research work should be avoided as top-level management can consider the recommendations if received in time as the nature of marketing problem changes in the course of time.

0n some occasions, the management is not convinced about the utility of marketing research. This may be due to past experience in regard to research activity undertaken. The other reasons for unfavorable opinions about marketing research include delay in the completion of research work, heavy expenditure involved, bulky and confusing report and finally recommendations made are not convincing and practical. The result is that the management forms negative impression about the very concept of marketing research. The company management fails to understand the practical utility of research work. It feels that MR is an unnecessary activity and funds should not be spent on the same. It is as good as waste of money as positive benefits may not available. Such negative opinion formation is the result of previous experience of the firm. It is a type of criticism of the researchers who failed to submit promising, result-oriented and practical research report. It need not be treated as the criticism of marketing research activity itself. The adverse opinions of companies on marketing research are undesirable and even dangerous to the future growth of MR activity. Here the responsibility lies on the researchers. They have to conduct research work honestly and also by taking keen interest in the proposed research project. As a result, the research report and recommendations 11 be promising and easily acceptable by the management. The marcher should prepare the outline of research project properly and place it before the management in a convincing manner. As a result, the management will be convinced about the utility of marketing research project and will be willing to spend money on the same. "Many a times, management is not convinced about the utility of marketing research and discards it as an

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unnecessary activity over which no funds should be spent." is possible when the research project is not prepared and placed properly before the management for consideration and approval.

(iv) Responsibility of researchers for effective integration: The researchers should use their skills, experience and knowledge while conducting the research activities. Finally, they should maintain persuasive communication as inadequate/poor communication creates bias attitude on the part of top-level management. As a result, the recommendations are rejected or not used in actual practice. In addition, the superiority of the top-level management in the decision-making process should also be honored. The approach should be to help the management in all possible ways. Such positive/constructive approach on the part of researchers will enable them to make purposeful contribution in the field of marketing management.

(v) Present Position: MR is now given more creative role as compared to the conventional role where it was used just for studying buyer behavior or for the feasibility studies for new products to be introduced in the market. MR until the mid-1980s, was considered a luxury, which only multinationals could afford. However, all companies now feel the need of MR due to growing competition and liberalization. Realizing the contribution that MR makes, more and more companies in India are now turning to MR.

INTERACTION BETWEEN MANAGEMENT AND MARKETING RESEARCH

Marketing research is a useful tool available at the disposal of management. At all stages of marketing cycle it can be used. On the other hand in certain quarters misunderstandings have cropped in about each other. Many organizations feel that marketing research is not at all needed. On the other hand, marketing researchers point out the lack of appreciation for their work by the organization.

Some of the organization’s complaints about marketing researchers are:1. Research is not problem-oriented. It tends to provide a plethora of facts, not actionable results.2. Researchers are too involved with techniques, and they appear to be reluctant to get involved in

management problems.3. Research is slow, vague and of questionable validity.4. Researchers cannot communicate, they do not understand and they do not talk the language of

management.

Marketing researchers have the following complaints:1. Management organizations do not include researchers in discussions of basic problems.

Management tends to ask only for specific information about parts of problems.2. Management pays no more than lip service to research and does not really understand or

appreciate its value.3. Management does not allow enough time for research. They draw preliminary conclusions

based on early or incomplete results.

BENEFITS OF MARKETING RESEARCH

General benefits of marketing research are 1. Marketing research has made the job of forecasting and decision making easier by applying

scientific norms.

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2. Through this, the changing tastes of the consumers could be identified and the firm can suitably alter its production pattern or bring a new variety to meet in needs of the consumers.

3. By means of marketing research the type of competition that exists and the ability of the other manufacturers could be identified.

4. It helps the sales manager to push activities further thereby to enrich the sales as well as to find new markets and new customers.

5. It tells the management where the company stands in its industry6. It tells management what the industry trends are & likely to be.7. It is an essential tool in appraising and improving sales management effectiveness. Specific

activities in this area include measuring variations in territorial sales yield, market share, sales effectiveness, measuring the effectiveness of individual salesmen and analysis of salesmen's activities.

8. It is an essential tool in the development and introduction of new products.9. Supplies data to be used in salesman's and territorial quotas planning.

10. Supplies the facts for fixing the budget.11. Helps determine the advertising methods that should be used and the angle that should be

employed in the advertising copy.12. Furnishes facts to convince dealers of the selling possibilities of given articles and to help them

to increase their sales.13. Predicts the trend of business conditions in given industries and furnishes a basis for promotion

programs.14. Ascertains the consumer's likes and dislikes.15. Reports the methods used by the dealers, display, advertising and selling16. Measures the stock in the dealer's hands. 17. Finds the dealer's reactions to given policies. 18. Furnishes data for fixing dealer's territories and quota.19. Finds out and tabulates statistics in which the concern is particularly interested.20. Keeps one informed about the developments in other industries, which may affect the business

of the firm.21. Measures the purchasing capacity of a given territory. 22. Discovers new uses for the product. 23. Analyzes the cost data that are available in published form.24. Studies the organization of the concern with a view to suggesting changes or improvements

(A) BENEFITS OF MARKETING RESEARCH TO TOP-LEVEL MANAGEMENT:Top management is concerned with the decision-making and policy framing at the highest level as regards production, marketing and so or it is the highest level planning, policymaking and controlling authority in the organization. The top-level management of a business unit includes Directors, Managing Director and other top-level marketing executives and other executives. Top-level management has to take marketing decisions such as fixing short-term and long-term marketing objective and sales targets, finalizing marketing policies and strategies, evaluating marketing performance, forecasting sales, allocating resources t marketing activities and selecting suitable marketing channels. For taking decisions on these matters, reliable and updated data are requires and the same are provided by the MR department. This is one service that MR department provides to top-level management. It facilitates decision-making on marketing issues by providing necessary information on the marketing and other aspects of business.

The top-level management needs feedback on current marketing environment and the MR department can provide this quickly. The feedback required in this regard can be provided in a

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continuous manner by the research department which studies marketing problems of the company in a regular and continuous manner. The research department is supposed to supply information to the top-level management on the following aspects of marketing:(1) Current business environment (more particularly marketing environment) faced by the company and the changes likely to take place in the near future.(2) Trends in consumer behavior, demographic information and consumer needs/expectations.(3) Changes in consumer purchasing power and data on demand and supply position in the market.(4) Trends about market competition and marketing policies of major competitors of the company and their marketing strategies.(5) Availability of better/cheaper raw materials and technology for manufacturing superior quality goods at lower costs.(6) Feedback on the marketing performance of the company and the challenges that it is facing.(7) Sales force requirement, recruitment and development.(8) Marketing opportunities available (domestic and foreign) and the marketing challenges likely to develop in the near future.(9) Any other information that the top management is expected to know for correct marketing decision-making and policy framing.

The top-level management can take reasonably correct decisions in the following marketing areas with the help of updated feedback available from the marketing research department:1. Deciding the long term marketing objectives and setting marketing plans, policies and

strategies to achieve marketing objectives.2. Designing of product or modifications in the existing products.3. Determining the product line and adjusting the products as per the needs and expectations of

consumers and allocation of resources among various products and marketing activities.4. Improving the brand or package design, color, etc.5. Fixing fair pricing of the product.6. Fixing marketing strategies in order to face the competitors’ ever-changing market

environment.7. Selecting suitable channels of distribution for large scale an economical marketing of

company's products.8. Estimating sales i.e. sales forecasting for adjusting production and marketing activities of the

company.9. Designing internal mechanism to monitor and evaluate performance of marketing department

and introduction of remedial measures, if required.

In brief, MR is the crucial analytical tool and provides management with vital strategic and tactical information for decision-making. It guides management in the decision-making process. However, the final decision is to be taken by the top management. The feedback of Marketing department certainly plays a positive role in the correct decision making This suggests the importance and benefits of marketing research to top level management of the company.

(B) BENEFITS OF MARKETING RESEARCH TO GOVERNMENT:Marketing research at the government level is conducted by various government departments concerned with agriculture, industry, commerce, industrial production, exports and imports, finance, foreign exchange and so on. These departments collect information on various aspects of national economy. In addition, government companies, public corporations, public sector banks, RBI/ etc. also collect information about various aspects of national economy.

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In India population census, (census survey) crop surveys, surveys of industrial production, wholesale and retail prices, cost of living index, estimates of imports and exports etc. for the future period are conducted regularly. In addition, needs of various sectors of the economy are estimated. Information collected through these sources is used while deciding government policies, budgets, funds allocation, etc. This suggests how research activities are given adequate importance attention at the government level. The data collected through census and other surveys are used while framing economic policies, long term development plans, allocation of resources and so on.

MR at the government level is useful in the following areas: (1) Planning and controlling national economy: For planned economic development,

available resources must be allocated in different sectors of the economy in a rational manner. Nation priorities must be decided clearly. The future needs of the economy must be estimated properly and arrangements need to be made meet them properly. Misdirection of resources must be controlled effectively. For such planned economic development, data on important aspects of the economy need to be collected. For this, research activities should be undertaken at different levels.

(2) Control on production, distribution and other marketing activities: Government conducts various marketing activities on a large scale. It conducts production, looks after distribution and even restricts consumption of certain commodities through its marketing operations. The government has to bring equitable distribution of goods particularly essential commodities. Reasonable prices need to be maintained for social good. Production needs to be adjusted as per the needs of the entire economy. All such objectives can be achieved through appropriate policies. For the introduction of such policies, marketing research activities in the form of surveys, estimates and collection of data are useful. Research studies are also useful for the calculation of needs of the people, production required, consumption patterns of people and so on.

(3) Control on exports and imports: Exports and imports are usually regulated by the government through suitable Exim policy. Exports must be adjusted as per the needs of the economy and also as per the surplus production available. Imports must be allowed to supplement the internal production. Large-scale imports are also necessary for export promotion. Proper policy decisions in this regard are necessary and are also visible in the Exim policy of the government. For framing such policy, adequate data must be available. This is possible through research activities. Surveys conducted are useful for estimating surplus production for exports, domestic consumption and imports required to be made. In brief, appropriate decisions as regards exports and imports can be taken with the help of data available through MR activities conducted at the government level.

(4) Use of MR in Miscellaneous areas: Marketing research is useful to the government in many other areas of national economy. Such areas are: production plans (targets) in regard to consumer goods and industrial goods, foreign exchange requirement for the future period, regulation of production and prices, equitable distribution of goods and services, resource allocation and allocation of funds to social service at reasonable prices and so on. Census reports arc useful to the government for policy framing and decision-making on various social services such as facilities of primary education, and allotment of funds for primary education, provision for sports and recreation facilities, provision for medical facilities and provision for family planning and welfare facilities.

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In brief, marketing research is useful to the government in bringing economic stability and economic growth. The government can take correct decisions about various aspects of national economy with the help of the feedback provided by marketing research activities. Finally, it can solve economic problems and difficulties with the help research activities undertaken at the government level. This suggests the importance of marketing research at the government level.

(C) BENEFITS OF MR TO ADVERTISING AGENCIES:Advertising agencies are specialized professional service agencies that offer different services to their clients as regards advertising and publicity through different media including press, TV and radio. Such agency performs various functions and offers varied services to its clients by charging necessary fees. Such services include booking space and time for advertising, preparation of advertising copy, organizing advertising campaigns of clients, offering guidance to the clients as regards packaging, branding, product modification and so on. Selection of suitable media for advertising, copy writing, testing effectiveness of advertising, advertising planning of the clients are some more functions/services offered by advertising agencies. Some agencies even conduct marketing research activities on behalf of their clients.

In order to conduct its activities efficiently, an advertising agency needs adequate information and latest trends as regards advertising and marketing. Such information includes product details, readership details, details of different advertising media, media rates and so on. Such information is available from different sources such as data published by newspapers, TV, radio, advertising magazines and so on.

An advertising agency also needs information as regards new trends and techniques used in advertising, legal and other restrictions on advertising and publicity in India, details of different advertising media (i.e./ rates, coverage, audience, popularity of the media, etc.). Information about market competition, new products available in the markets, advertising campaigns of competitors of its clients, etc. is also required by an advertising agency. For this, the agency has to conduct research activities in the field of advertising and marketing.

An advertising agency has to collect and maintain all such information in an orderly manner for quick reference. It has to collect all useful data from different sources. Data already published on advertising and allied subjects need to be stored by the agency for ready reference. In addition, the agency has to conduct research activities in order to collect necessary information useful for the conduct of its functions. A well-maintained reference library is also necessary in the case of an advertising agency. Such activities will provide suitable feedback to the agency and the agency will be able to offer efficient services to its clients. This suggests the importance of MR and MIS in the case of advertising agencies.

MR supports advertising agencies in regard to advertising activities. It provides reliable and updated information for correct decision-making on advertising budgeting, media planning, selection of advertising media for the clients and checking advertising effectiveness. An advertising agency can arrange advertising campaigns of its clients with the support of data available through MR. Finally, an advertising agency can give proper guidance to its clients on advertising matters with the help of information available through research activities on press, media, and so on.

(D) BENEFITS OF MARKETING RESEARCH TO WHOLESALERS:

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MR is beneficial to wholesalers in the following areas of their business:(1) Location of business establishment: Every wholesaler has to locate his business establishment at a convenient place. Location includes location of main office, branches, warehouses and so on. The cost of marketing will be low if the location is optimum. Here, researchers undertake a survey of available convenient places and suggest the convenient places for locating business establishments. Thus, for selection of convenient location, locational survey is useful.(2) Selection of sales territory: Every wholesaler has to select promising area for his business. This selection is important as turnover and profit are related to the sales territory selected. For such selection, the features of product to be distributed, market demand of different areas, purchasing capacity of customers, possible increase in demand in future, possible benefits of sales promotion measures, etc. need to be taken into consideration. Researchers undertake surveys of different trading areas and suggest the best trading area to the wholesaler.(3) Reduction of distribution/marketing cost: Every wholesaler will like to reduce the cost of distribution as his net profit is closely linked with the cost of distribution. This cost includes expenditure on advertising, services to retailers, discount and credit facilities offered, arrangement for delivery of goods to retailers and so on. Such distribution cost needs periodical review in order to check wastage and liberal expenditure on distribution. Reducing distribution cost is difficult due to market competition but efforts should be made in this regard with the help of experts i.e. researchers. They suggest ways and means to bring down the cost of distribution without any adverse effect on total sales.(4) Decision on number of commodities for distribution: Every wholesaler has to decide the number of product lines he can handle efficiently. He has to decide the number of items that he can distribute effectively. Sometimes, marketing of limited items with good demand may be profitable. Similarly, stocking of different items may prove to be costly. In addition, every wholesaler has to consider his financial position, manpower available and storage facilities available while deciding the number of items for the business. Marketing researcher can study all relevant facts and offer suitable guidance to the wholesaler in this regard.(5) Storage and handling of goods: Every wholesaler has to maintain adequate stocks for smooth and regular supply of goods to retailers. Naturally, he has to give attention to storage, handling and transportation of goods. He has to conduct these activities economically. The wholesaler can undertake studies in these areas in order to find out ways and means for handling these activities speedily and economically. For this, research studies are useful.(6) Miscellaneous benefits to wholesalers: Marketing research is also useful to wholesalers while dealing with other aspects of marketing. They include cost-profit analysis, stock handling and delivery procedure, credit recoveries, incentives to retailers for their loyalty, sales promotion measures and so on. In short, MR offers guidance to wholesalers while dealing with their problems and difficulties. It is useful for the expansion of business and also for raising the margin of profit in the business. Wholesalers can undertake such research directly by making suitable internal arrangements. They can even study the published material and use it for the benefit of their business operations. Many wholesalers do not conduct their own research studies but take advantage of research studies conducted by others.

(E) BENEFITS OF MARKETING RESEARCH TO CONSUMERS:Consumers do not conduct MR activities on their own. However, the benefits to all research activities are available to consumers. In fact, the purpose of MR is to study/understand the needs, expectations, problems, etc. of consumers and to give maximum possible convenience and satisfaction to them. This suggests that consumers secure the maximum benefits of research

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activities indirectly as all research activities are basically for the benefit and convenience of consumers.

The benefits of MR to consumers are as noted below:1. Supply of goods and services as per the needs and expectations of consumers. MR provides

wide choice to consumers. Consumers get wide variety of goods at fair prices due to MR activities.

2. Suitable adjustments in the products (as per the requirements of consumers) through product planning, product innovation and product modification.

3. Supply of goods at right place, time and also at the right price.4. Better return (in terms of convenience, satisfaction and welfare) of the price paid for goods

and services.5. Protection of the rights of consumers and prompt redressal of complaints relating to price/

quality, use, etc.6. Availability of new / innovative products as per current socio-economic-cultural needs.7. Provision of wide variety of goods for the convenience of consumers.8. Better quality after-sales services.9. Fair treatment and prevention of exploitation of consumers.10. Production as per the expectations of consumers.11. Provision of wide choice to consumers.

(F) BENEFITS OF MR TO SMALL BUSINESSMEN:In general, MR is useful to all categories of businessmen - small or big. Small businessmen include small-scale manufacturers, small-scale dealers, retailers and so on. They can adjust their business policies and \ activities as per the information available from the research activities. They can take decisions regarding location of business/ sales territory, commodities for manufacturing or marketing, sales promotion policies, storage of goods, credit policies, pricing policies and so on with the help of information available through research activities.

A small businessman may not be able to maintain separate research department for the conduct of research activities. However, he can collect necessary information from census reports, other financial and marketing reports, etc. published by different agencies. He can even refer to market reports and other reports on current economic issues and adjust his business policies accordingly. This is how marketing research is useful to small businessmen in the conduct of all their business activities properly and with foresight, imagination and vision.

Small businessmen have to adjust their business policies and activities as per the need of the situation. Here, they use the research techniques (knowingly or unknowingly). This suggests that marketing research is useful to large business houses as well as small businessmen. In the case of small businessmen, the use of MR may not be extensive as in the case of large business houses. However, small businessmen study market situation as per their business needs, use available information on market competition, consumer needs, etc. and adjust their business plans, policies and operations according. This is precisely the manner in which they use marketing research for their benefit.

Reasons for the Failure of Marketing Research:1. There is resistance on the part of the business executives to use research, because they think

that research is a threat to their personal status. They also think that marketing research may expose them adversely.

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2. Sometimes, the executives develop their own objectives, which are in conflict with the organization, and they want research to support their views rather than the views of the organization.

3. The executives are unable to use specialists effectively. Marketing research presently draws on a variety of specialists from such disciplines as mathematics, statistics, economics, psychology, sociology, general semantics, anthropology, etc.

4. Marketing research department is often isolated from key departments.

CHARACTERISTICS OF GOOD MARKETING RESEARCHThe duty of marketing research is to solve the problems of the organization relating to its sales and related marketing issues. As such it is considered to be a primary tool by several managements and as a secondary tool by many managements. In spite of its drawback of arriving at exact results with complete accuracy, corporate world has accepted its relevance. One such drawback posed against marketing research is its cost-effectiveness. If the tools used are crisp and less costlier its service could be welcomed by all. For such recognition marketing research must possess certain characteristics, which are mentioned by Philip Kotler as follows:

1. Scientific method: Competent marketing research is characterized by an attempt to follow the scientific method, careful observation, formulation of hypotheses, prediction and testing.

2. Research creativity: At its best, marketing research develops innovative ways to solve a problem.

3. Multiple methods: Competent marketing researchers keep away from over reliance on any one method, preferring to adopt the method to the problem rather than the other way round. They also recognize the desirability of the simultaneous gathering of information in different ways to give greater confidence than any one method would provide.

4. Interdependence of models and data: Competent marketing researchers recognize that the facts do not speak for themselves but rather derive their meaning from models of the problem. They attempt to guide their search for information on the basis of causal decision model to help the executive.

5. Value and cost of information: Competent marketing researchers show concern for measuring the value of information against its cost. Value/cost is a consideration when the Marketing Research Department chooses which research projects to conduct, which research designs to use and whether to gather more information.

BASIC VS. APPLIED MARKETING RESEARCH:Research can be divided into two classes viz., basic research and applied research.(1) Basic ResearchOften basic research is called 'theoretical’ 'pure' or 'fundamental' research. It is not directly concerned with solving marketing problems. Primarily it aims at improving academic knowledge about the subject matter. Basic research does not deal with commercial problems but it relates to fundamental questions concerning the business and allied subjects. Basic research may address itself to issues like economic and political changes in a country or reasons for changes in lifestyles in youth. (2) Applied Research Applied research directly deals with commercial problems. It tackles the business problems and attempts to find alternative solutions to the problems. Applied research may relate to locating reasons for fall in sales or to introduce a new brand of product.

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Applied research can be of two types (a) problem-solving research and (b) problem-oriented research. As the name indicates problem-solving research relates to a specific problem. This research can be conducted either by the marketing research department of the firm or by an outside research agency. By contrast problem-oriented research deals with problems that may be of interest to many firms. This type of research puts into practice the knowledge obtained through basic research.

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prof. hemant kombrabail

Documents

marketing marketing

marketing manager

marketing of goods

words marketing

essence of marketing

marketing research support

mr marketing problem

end of marketing management