Chapter1.pptx Management principles in Action

Management

1. Introduction to Marketing Research

2. LEARNING OBJECTIVES After reading this chapter, you should be able to understand: • The meaning and definition of marketing research • The growth of marketing research • When is marketing research unnecessary? • Examples where marketing research would be necessary • Characteristics of good research • Research management • Importance of research management • Qualities of a marketing research manager • Organising marketing research function Continued… 2

3. LEARNING OBJECTIVES • Evaluation and control of marketing research • Marketing research and marketing management • Scope of marketing research • Limitations of marketing research • Threats to marketing research 3

4. MARKETING RESEARCH Marketing research is a systematic and objective study of problems pertaining to the marketing of goods and services. Herein, it may be emphasised that the marketing research is not restricted to any particular area of marketing, but is applicable to all its phases and aspects. 4

5. MARKETING RESEARCH The American Marketing Association (AMA) has defined marketing research as follows: “Marketing research is the function which links the consumer, customer, and public to the marketer through information–information used to identify and define marketing opportunities and problems; generate, refine and evaluate marketing actions; monitor marketing performance; and improve understanding of market as a process.” 5

6. Classification of Research Research can be classified into two broad categories: ( i ) basic research and (ii) applied research. Applied research can further be divided into two categories: ( i ) problem-solving research and (ii) problem-oriented research (Figure 1.1). 6 Basic Research Research Problem-solving Research Applied Research Problem-oriented research FIGURE 1.1: CLASSIFICATION OF RESEARCH

7. Growth of Marketing Research Several factors have contributed to this growth such as: as a result of large scale production; a shift from a seller’s to a buyer’s market; the emergence of specialists such as statisticians, psychologists and behavioural scientists in a fairly large number; the increasing use of computers; changes in the composition of population, particularly, the shift from the rural to the urban areas; and finally the changing marketing environment. 7

8. WHEN MARKETING RESEARCH IS UNNECESSARY? If cost of undertaking research is going to be more than the benefit. When the research project attempts to collect information relating to distant past. When information is very personal. If respondents may find it difficult to communicate their emotions and sensations to the researcher. The nature of some products is such that there is hardly any time to conduct research . When a firm may have an apprehension that its new product is likely to be copied by its competitors. 8

9. EXAMPLES WHERE MARKETING RESEARCH WOULD BE NECESSARY Consumer behavioural research towards adopting new offerings like JioGigaFiber from Reliance Jio could be on top priority for behavioural researchers . ITC recently launched the world’s most expensive chocolate priced at `4.3 lakh/kg under its Fabelle brand. It would be interesting to see the consumer’s response towards such a premium product . Zara’s drop in numbers come at a time when its rival Swedish Brand H&M started opening stores at a much faster much faster rate in India. The brand, which entered India in 2015, much after Zara, already had over 40 stores in the country – a number it plans to take to 50 by 2020. Its high time for Zara to know the reasons by conducting a marketing research. 9

10. EXAMPLES WHERE MARKETING RESEARCH WOULD BE NECESSARY A study of consumer behaviour towards new launches by Auto industry, after a massive slowdown in 2019, might be needed. A marketing research to support Nokia’s repositioning decision in highly competitive market. A recent market penetration for VU Television requires a market research in order to build stronger brand image to conquer the TV segment market. 10

11. CHARACTERISTICS OF GOOD RESEARCH Clarity of Purpose Systematic Process of Research Selection of Proper Research Design Data Collection Proper Analysis and Interpretation of Data Reporting the Results Compliance with Ethical Standards 11

12. RESEARCH MANAGEMENT Research management concentrates on direction and administration of the processes, projects, personnel, finances and agencies engaged in research . Research management in fact, includes a host of interrelated activities; for instance, the types of research projects to be undertaken, the selection of research personnel, financing of research manager, etc. 12

13. IMPORTANCE OF RESEARCH MANAGEMENT From improved marketing research management, a firm can enjoy two major advantages. These are: marketing research will be more helpful to marketing management in decision making , and marketing research can be conducted more economically and more effectively 13

14. QUALITIES OF A MARKETING RESEARCH MANAGER Research managers must have some distinctive qualities. For instance, they must be: i nnovative confident well-informed and up-to-date familiar with recent trends and developments persuasive 14

15. ORGANISING MARKETING RESEARCH FUNCTION The first question that arises in here is how the market research function is to be organised within a firm. The organisational structure for this function would differ according to the type of agency handling it . Another point of difference between the two organisations is the degree of emphasis on the practical utility of marketing research 15

16. ORGANISING MARKETING RESEARCH FUNCTION A firm, which has decided to introduce a market research function, needs to also decide which of the three options are normally available. For instance, i s it to set up a formalised market research department, whereby it would have full-time specialists, whose main responsibility would be to carry out market research studies, and report the findings to the management? Would it be to assign the market research responsibility to one or more line or staff executives on a part-time basis, who would have to undertake this activity in addition to their major responsibilities in some other spheres ? Would it be to assign the responsibility of undertaking marketing research to an outside individual or an organisation . 16

17. ORGANISING MARKETING RESEARCH FUNCTION Buying Marketing Research Choice of Research Agency Considerations for Hiring Outside Agencies Technical expertise Objectivity Confidentiality Economic factors Timely submission of reports Experience of the supplier Reputation of the agency 17

18. EVALUATION AND CONTROL OF MARKETING RESEARCH Check List Flow Chart Gantt Chart PERT Technique Advisory Committee Marketing Research Audit Budget Control 18

19. MARKETING RESEARCH AND MARKETING MANAGEMENT Probable Areas of TM–MR Conflict 19 T op management position A r ea Marketing r esea r ch position MR lacks sense of accountability Research Responsibility should be explicitly defined and consistently followed Sole MR function is an information provider Responsibility Desire decision-making involvement with TM Generally poor communicators Research TM is anti-intellectual Lacks enthusiasm, salesmanship and imagination Personnel Researchers should be hired, judged and compensated on research capabilities Research costs too much Budget “ Y ou get what you pay for” defense Since MR ’ s contribution is difficult to measure, budget cuts are relatively defensible Needs to be continuing, long-range TM commitment T end to be ove r -engineered Assignments   Too many non-researchable requests Not executed with the proper sense of u r gency T oo many “fire-fighting” requests Exhibit ritualized, staid approach Insufficient time and money allocated MR best equipped to do this Problem TM generally unsympathetic to this widespread problem

20. MARKETING RESEARCH AND MARKETING MANAGEMENT Probable Areas of TM–MR Conflict 20 General direction sufficient… MR must appreciate and respond Definition Not given all the relevant facts Can ’ t help changing circumstances Changed after research is under way Characterized as dull with too much researchers and qualifiers Research TM treats superficially Not decision-oriented Reporting Good research demands through reporting and documentation Too often reported after the fact Insufficient lead-time given Free to use as it pleases… MR shouldn’t question Use of Research TM use to support a pre-determined position Changes in need and timing of research are sometimes unavoidable Isn’t used after requested and conducted… wasteful MR deceived by not knowing all the facts Uses to confirm or excuse past actions T op management position A r ea Marketing r esea r ch position

21. SCOPE OF MARKETING RESEARCH Product Research Sales Research Customer Research Pricing Research Advertising Research 21

22. LIMITATIONS OF MARKETING RESEARCH First, many times, marketing research tends to be fragmentary in its approach. Second, marketing research is criticized on the ground that it becomes too superficial and faulty in industry. Third, there is an absence of a meaningful dialogue between the marketing management and the marketing research team. Fourth, marketing research is not an exact science. Apart from these limitations of marketing research, one finds that it is sometimes misused. 22

23. THREAT TO MARKETING RESEARCH Three major threats to marketing and survey research are: excessive interviewing, lack of consideration and abuse of respondents, and the use of marketing research as a sales ploy. 23

24. Cases: Case Study 1.1: JBL Case Study 1.2: Make My Trip (MMT ) Case Study 3: An American Consulting Firm Case Study 1.4: AMUL Case Study 5: Netmeds E-Pharma 24

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