Market research – introduction

To undertake marketing effectively, businesses need information. Information about

customer wants, market demand, competitors, distribution channels etc. Marketers often
complain that they lack enough marketing information or the right kind, or have too much of
the wrong kind. The solution is an effective marketing information system.

Information needed by marketing managers comes from three main sources:

(1) Internal company information

E.g. Sales, orders, customer profiles, stocks, customer service reports etc)

(2) Marketing intelligence

Information gathered from many sources, including suppliers, customers, distributors.

Marketing intelligence is a catch-all term to include all the everyday information about
developments in the market that helps a business prepare and adjust its marketing plans.

(3) Market research

Management cannot always wait for information to arrive in bits and pieces from internal
sources. Also, sources of market intelligence cannot always be relied upon to provide
relevant or up-to-date information (particularly for smaller or niche market segments). In
such circumstances, businesses often need to undertake specific studies to support their
marketing strategy - this is market research.

Need and purpose of market research

To undertake marketing effectively, businesses need information – information about
customer wants, market demand, competition, distribution channels etc.  This information
needs to be updated regularly because businesses operate in a dynamic environment

What is the purpose of marketing research?

Marketing research can help a business do one or more of the following:

1. Gain a more detailed understanding of consumers’ needs – marketing research can

help firms to discover consumers’ opinions on a huge range of issues, e.g., views on
products’ prices, packaging, recent advertising campaigns

2. Reduce the risk of product/business failure – there is no guarantee that any new
idea will be a commercial success, but accurate and up-to-date information on the
 market can help a business make informed decisions, hopefully leading to products
that consumers want in sufficient numbers to achieve commercial success.

3. Forecast future trends – marketing research can not only provide information
regarding the current state of the market but it can also be used to anticipate future
customer needs.  Firms can then make the necessary adjustments to their product
portfolios and levels of output in order to remain successful.

How do businesses obtain the information they need?

• Internal company information

• Marketing intelligence

• Market research

Types of market research

Every organization has to conduct market research for its long term growth and
sustenance in the market. With competition on the increase, the strength of the firm lies in
its market research. The article throws light on the types of market research that can be
implemented. Market research is a process of the systematic collection of data, about a
particular target market, competitors, customers, market trends, etc. The aim of market
research is to obtain an in-depth understanding of the particular subject. Rising
competition has compelled many organizations to conduct market research.
Organizations may conduct market research themselves, by appointing a market research
team to work on the same. Or else, they may get it done via a market research
consultancy or an agency.
Market research is vital for business organizations looking out for opportunities to tap the
market, for firms which have come up with an improvised product and want to evaluate
its demand and for companies planning to introduce their products into the market.
However, before conducting market research, it's vital to have the research objectives
defined. Once the objectives have been outlined, market research can be carried out in
different ways.

There are two methods of conducting market research:

1) Primary research
2) Secondary research.

The choice of the method depends on the research objectives.

Primary research
In primary research, data is collected directly from the source. For example, if the
objective of the research is to understand the demand of a particular product, then
collecting feedback directly from the customer by talking to them, is called primary
research. Primary research involves the collection of crucial data via interviews, surveys
or focus group sessions. It's time consuming and expensive. However, it is suited for
gathering specific data. Primary research can be further categorized into the
Qualitative and the quantitative type.

Quantitative primary research: this type of primary research involves the collection of
numerical data via surveys. The most frequently used quantitative technique is the 'market
research survey'. The numerical or quantitative information obtained is then statistically
analyzed. Such surveys comprise of questionnaires with closed ended questions. In a
close ended question, a respondent is needed to answer by ticking one of the options
given. People generally agree to cooperate, when surveys are less time-consuming.
For example, a bank may generate a questionnaire, wherein its aim is to find out what
people think of their services. Numerous questions may be asked in the questionnaire and
the answer options are excellent, good, poor or very poor. This data obtained is analyzed
statistically and a conclusion is ascertained. The main rule followed, while conducting
quantitative research is that all the respondents should be given the same questionnaire
with the same set of questions. These quantitative surveys can be carried out, either face
to face (asking people on the street to fill them), email, telephone or by post (self
completion and posting it back).

Qualitative primary research: this type of research involves gathering data via
interviews or focus group sessions. In this type, open ended questions are included. This
means the questions cannot be answered with a yes or a no. They include in-depth
interviews, wherein a trained executive interviews one or more respondents. The
interviewer may carry out the interview on a one to one basis, with two, triad or even 4-5
respondents. Such open ended interviews enable the researcher to receive data about the
likes-dislikes, requirements, positive-negative feedback, trends and emotional motivators
of the primary market. Unlike the quantitative type, this type does not comprise of a fixed
set of questions. The respondent has the freedom to express himself. This helps the
interviewer understand the situation better. Focus groups are another method of carrying
out qualitative research. These groups generally comprise of 6-8 respondents, led by
experienced professionals (research moderators). The role of the professional is to ask
general, as well as specific questions, to the group of respondents. By encouraging a
discussion, they are to draw out the required information. However, since focus groups
require experienced professionals, it's an expensive technique.

Secondary research
In secondary research, the analysis of information that has been collected for some other
purpose, is carried out. This means, that secondary research is carried out by gathering
data from sources such as government publications, libraries, internet, magazines,
chambers of commerce, etc. The data required may be in the form of demographic or
statistical data, set of articles or some studies. Firms can analyze their target markets,
evaluate competitors, and assess social, political and economic factors.

Data for secondary research can be obtained from a variety of sources such as:

Chambers of commerce: each local area comprises a chamber of commerce, which

possesses information about the local businesses and local community.

Business information centers: small business firms can use such centers, as they provide
a large collection of books, videos, publications and other important resource materials.
 Trade associations: trade associations provide information on industry leaders, the
standards they observe, latest trends, competitors, etc.

Marketing departments of local colleges: firms can access special research projects
prepared by students.

Wholesalers and manufacturers: firms can obtain information from wholesalers and
manufacturers,regarding customer's likes and dislikes, complaints, costs, industry
standards, etc.

Magazines and newspapers: industry journals and newspapers are a great source of
crucial information. News events, latest news on politics, economic indicators, etc. Are
helpful for firms in understanding the market and its trends.

Competitors: conducting research on the products or services, prices, brochures,

marketing techniques, etc helps firms understand how to augment their business.

As compared to primary research, secondary research is easier. It is less time consuming

and not as expensive. However, the drawback of secondary research is that the data may
not be updated and may not be customized to suit the need of the research. Since it
involves the analysis of data collected by somebody else for a different purpose, the
analysis may not be accurate.
For example, a firm manufacturing leather bags can find out how many people buy their
bags, using secondary research. However, they can't determine the amount people are
willing to pay for their particular leather bag design. For firms planning to introduce a
new product or service, conducting market research helps understand the customers
attitude and preferences. It also minimizes the risk of incurring losses in the business.
Market research conducted by either primary or secondary method is vital to any business
and its objectives.

Uses of market research

Information about the market

1. Analysis of the market potential for existing products (e.g. Market size, growth,
changing sales trends)

2. Forecasting future demand for existing products

3. Assessing the potential for new products

4. Study of market trends

5. Analysis of competitor behaviour and performance

6. Analysis of market shares

Information about products

1. Likely customer acceptance (or rejection) of new product

 2. Comparison of existing products in the market (e.g. Price, features, costs, distribution)

3. Forecasting new uses for existing products

4. Technologies that may threaten existing products

5. New product development

Information about pricing in the market

1. Estimates and testing of price elasticity

2. Analysis of revenues, margins and profits

3. Customer perceptions of “just or fair” pricing

4. Competitor pricing strategies

Information about promotion in the market

1. Effectiveness of advertising

2. Effectiveness of sales force (personal selling)

3. Extent and effectiveness of sales promotional activities

4. Competitor promotional strategies

Information about distribution in the market

1. Use and effectiveness of distribution channels

2. Opportunities to sell direct

3. Cost of transporting and warehousing products

4. Level and quality of after-sales service

Questions to be considered while conducting market research

1. What kind of information might a business need?
2. Who are our customers? Are they young/old; male/female;
local/national/international; how much do they earn?
3. How do customers make buying decisions in our market?
4. What information do they need? 
5. How long do they take to make their minds up?
6. Do they compare products with alternative competitor products first?
7. How well are our products selling?
 8. Are sales improving/declining/stable?  
9. Is the market growing/shrinking/stable; are we increasing our market share
10. Have new products been introduced recently by competitors?
11. Are they cheaper/more expensive, what new features do they have, how are they
being promoted, are they selling?
12. How can we respond successfully to changes in the marketplace?
13. Do we introduce new products or modify old ones?
14. Should we launch existing products in new markets?
15. Are these changes in line with our corporate objectives?
How much information does a business need?

How research is carried out?

1. Define the problem and the research objectives

2. Develop the research plan

3. Collect the information

4. Analyze the information

5. Present the findings

 How research is used?
Marketing decisions are made under conditions of uncertainty and risk.
For example:

• Will a new product sell as well as hoped?

• What will happen to customer demand if product prices are increased or reduced?

• How much (if anything) should be invested in a marketing campaign?

• What are the chances that an advertising campaign will reach the intended audience –
and how will they respond if it does?

• Marketing research aims to reduce uncertainty and risk by providing information

about the variables involved in the decision and the possible outcomes of marketing
decisions and actions.

A wide variety of information used to support marketing decisions can be obtained from
market research:

• Information about the market:

• Analysis of the market potential for existing products e.g. Market size, growth,
changing sales trends

• Forecasting future demand for existing products

• Assessing the potential for new products

• Study of market trends

• Analysis of competitor behaviour and performance

• Analysis of market shares

• Information about products:

• Likely customer acceptance/rejection of new products

• Comparison of existing products in the market, e.g., price, features, costs, distribution

• Forecasting new uses for existing products

• Technologies that may threaten existing products

• New product development

Introduction :-

Communication is as old as man himself. Human beings start communication right from the
birth. It is an exchange of facts, ideas, opinions or emotion s by two or more persons.
Communication transmits information not only about tangible acts but also about emotions.
When a communicator transmits some information, he may intentionally or unconsciously be
communicating his attitude or frame of his mind.

A message becomes communication only when it is understood, acknowledged, reacted or

replied to by the receiving party. The essential basis of all public relations work is the
communication process. This process takes place between four or five factors i.e. the
organisation or initiator the communicator, the message, the medium and lastly the addressee.

Definition of Communication

Peter Little: “communication is the process by which information is transmitted between

individuals and/or organisations so that an understanding response results.

William Scoh: Administrative communication is a process which involves the transmission

and accurate replication of ideas ensured by feedback for the purpose of eliciting actions
which will accomplish organizational goals.

Importance Of Communication In Public Relations:-

There can be no mutual understanding without communication, and mutual understanding

is the core of public relations.

Real communication is experience of being totally understood by another person. Real

communication produces results. In terms of relationships real communication resolves
problems, dissolves the feelings of separateness and produces harmony.

In an organisation effective communication transforms group into a team. It reduces fatigue

and struggle and the task is accomplished efficiently and more accurately as conflicts are
resolved leading to co-operation. True communication transforms the speaker as well as the
listener. The following are the benefits of such communication:

a) New skills are developed for resolving interpersonal conflicts.

b) Higher standards of performance can be established through mutual understanding of
management and employees.
c) There is a better understanding of co-worker and customer behavior.
d) The powers of interpersonal motivation are enhanced.
e) Creation of active and accurate listening habits.
f) The interviewing and consulting techniques are improved.
g) Productivity increases even under adverse conditions.
h) Willingness to participate in group activities.
i) Effective communication promotes a spirit of understanding and
j) Important factor for promotion.