Project of Marketing Management

Submitted for the first year of
Master of management studies
By
Ms. Shinde Nayana S.
Mr. Meshram Tushar G.
Mr. Ghanekar Sameer J.
Mr. Karval Vinod P.
Ms. Ghanekar Kavita G.
Under the guidance of
DR. C. SATYANARAYANA
YADAVRAO TASGAONKAR SCHOOL

OF
BUSINESS MANAGEMENT
BHIVPURI ROAD, KARJAT 410 201.
UNIVERSITY OF MUMBAI
Marketing research & MIS
OCT 2009-2010
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ACKNOWLEDGEMENTS
We desire to express our sense of profound gratitude to all those

personalities who have contributed their best efforts in helping us through the
proceedings in our project work.
With immense pleasure, we would like to express our deepest sense of

indebt ness to our guide professor “DR.C.SATYANARAYANA” for his
esteemed guidance, co-operation.
We would also like to thank our parents who have supported us

financially as well as morally.
Without the support of all these personalities, our project would not have been
successfully completed.
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INDEX
Sr. no. Particulars Pg.no
1 Introduction and Definition
2 Features of Marketing Research
3 Objective of Marketing Research
4 Need of Marketing Research
5 Functions of Marketing Research
6 Advantages of Marketing Research
7 Limitations of Marketing Research
8 Branches of Marketing Research
9 Method of Conducting Marketing Research
10 Definition of MIS
11 Function of MIS
12 Characteristics of MIS
13 Sources of MIS
14 Advantages of MIS
15 Components of MIS
16 Difference between MIS and MR
17 Sampling- Planning and Designing
18 Features of Sampling
20 Advantages of Sampling Method
21 Limitations of Sampling Method
22 Steps in Sampling Process
23 Sampling Methods
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24 Marketing Research Process
25 Marketing Research on Preference of

Consumers
26 Questionnaire
27 Analysis
28 Conclusion
29 References
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 INTRODUCTION OF MARKETING
RESEARCH:
Marketing Research comprises of two words ‘Marketing’ and
‘Research’. To understand the role of Marketing Research, it is essential on
our part to thoroughly understand the basic concepts of Marketing
Management. In the Marketing Management the entire emphasis is on
Customer. The entire function of Marketing revolves around customer. In the
Management theory Customer has been perceived as a ‘King” or the ‘Boss’
for whom everything is being done by the business.
In marketing research, specific marketing problem is studied in depth
by collecting and analyzing all relevant information and solutions are
suggested to solve the problem which may be related to consumer, product,
market competition, sales promotion and so on.
Marketing research facilitates accurate marketing decisions for
consumer satisfaction on the one hand and sales promotion on the other hand.
It is rightly treated as the SOUL of modern management.
DEFINITIONS OF MARKETING RESEARCH

According to AMERICAN MARKETING ASSOCIATION: “ The
systematic gathering, recording and analyzing of data about problems relating
to the marketing of goods and services”
According to PHILIP KOTLER: “Marketing research is systematic
problem analysis, model building and fact finding for the purpose of improved
decision making and control in the marketing of goods and services.”
According to RICHARD D. CRISP: “Marketing research is the
systematic, objective and exhaustive search for and study of the facts relevant
to any problem in the field of marketing.”
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FEATURES OF MARKETING RESEARCH:

1) Systematic and continuous process:
Marketing research is a continuous process. One type of research is not
adequate to resolve all marketing problems. A marketing company has to
conduct marketing research regularly for its survival & growth in the present
dynamic marketing environment.
2) Wide/comprehensive in scope/wide application:
Marketing research is wide in scope as it deals with all aspects of
marketing of goods and services. Introduction of new products, identification
of potential markets, selection of appropriate selling techniques, study of
market competition, introduction of suitable advertising strategy and sales
promotion measures are some areas covered by marketing research.
3) Emphasizes on accurate data collection and critical analysis:
In marketing research, required data should be collected objectively
and accurately. The data collected must be reliable. It should be analyzed in a
systematic manner. This will provide comprehensive picture of the situation
and possible solutions.
4) Offers benefits to sponsoring company and consumers:
It raises the turnover and profit of the company. It also raises the
competitive capacity and creates goodwill in the market. It enables a company
to introduce consumer oriented marketing policies.
5) Commercial equivalent of military intelligence:
Marketing research is the commercial intelligence activity. It is similar
to military intelligence where systematic study is made before taking any
military action. MR acts as the intelligence tool of marketing management.
6) Tool for managerial decisions:
Marketing research acts as a tool in the hands of management for
identifying and analyzing marketing problems and finding out solutions to
them. It is an aid to decision making. MR is an aid to judgment and never a
substitute for it.
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7) Applied type of research:

Marketing research is applied knowledge. It studies specific marketing
problem and suggests alternative solutions and possible outcome of each
alternative.
8) Reduces the gap between the producers and consumers:
It is useful for understanding the needs and expectations of consumers.
It reduces the gap between produces and consumers and adjusts the marketing
activities to suit the needs of consumers.
9) Not an exact science:
Marketing research is both science and an art. It collects information
and studies marketing problem in a scientific manner. The information
collected is also applied to real life problem. However, MR is not the exact
science. It only suggests possible solutions and not the exact solution to
marketing manager for consideration and selection.
10) Use of different methods:
Marketing research can be conducted by using different methods. Data
can be collected through survey or by other methods like observation method
or experimentation method. Even computers and internet are used for data
collection. The researcher has to decide the method suitable for his research
project.
11) Dynamic character:
Marketing research is dynamic in nature. Its scope is fast expanding
along with the new developments in the field of marketing.
12) Closely connected with marketing information system:
Both the concepts are interrelated. In fact, MR is one component of
MIS. Both are useful for solving marketing problems and for accurate and
quick decision making in the field of marketing.
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OBJECTIVES OF MARKETING RESEARCH:
• To study the need, wants and expectation of consumers.

• To find out reactions of consumers to the products of the company.
• To evaluate company’s sales promotion measures for suitable
adjustment and improvement.
• To study current marketing problems and opportunities for suitable
follow-up actions.
• To suggest the introduction of new products, modifications of existing
products and to discover new uses of existing products.
• To design and test appropriate packages, brands of company’s
products.
• To study existing pricing, channels of distribution and market
competition for suitable changes, if necessary.
• To find out methods for marketing the products of the company
popular and raising its goodwill and market reputation.
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INCREASING NEED OF MARKETING

RESEARCH:
The following factors/points suggest increasing need of MR:

1. Growth and complexity of markets:
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 markets and consumers
directly. Similarly, they have no control on the marketing system once the
goods are sold out to middlemen.
This situation creates new problems before the manufacturers which

can be faced effectively through MR as it acts as a feed-back mechanism to
ascertain first hand information, reactions, etc. of consumers and middlemen.
2. Wide gap between producers and consumers:
Marketing research is needed as there is a wide gap between producers

and consumers in the present marketing system. Due to mass scale production
and distribution, direct (personal) contact between producers and consumers is
practically lost. Producers do not get dependable information as regards needs,
expectations and reactions of consumers. They are unable to adjust their
products, packaging, prices, etc. as per the needs of consumers.
The problems creates due to information gap can be solved only

through MR as it is possible to establish contact with consumers and collect
first hand information about their needs, expectations, likes, dislikes,
preferences and special features of their behavior.
3. Changes in the composition of population and pattern of

consumption:
In India, many changes are taking place in the composition of

population. There have been considerable changes in the consumption and
expenditure patterns of consumers because of urbanization. The incomes of
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the people, in general, are rising. This brings corresponding increase in their
purchasing capacity and buying needs and habits.
MR is needed for the study of changes in the pattern of

consumption and corresponding adjustment in the marketing planning,
policies and strategies.
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. Even growing
customers expectations create situation when manufacturers have to
understand such expectations and adjust the production policies accordingly.
MR particularly consumer research gives valuable data relating to

consumers this data use to framing marketing policies.
5. Shift of competition from price to non-price factors:
Cut-throat competition is unavoidable in the present marketing field

due to various factors such as price, quality, packaging, advertising and sales
promotion techniques.
MR is needed as it offers guidance in this regard. A manufacturer

can face market competition even by using certain non-price factors. The
shifting of competition from price to non-price factors has made marketing of
consumers goods more complicated and challenging. This challenge can be
faced with confidence by using certain measures suggested through marketing
research.
6. Need of prompt decision making:
In competitive marketing, marketing executives have to take quick and

correct decisions. Moreover, wrong decisions may bring loss to the
organization. For correct decision- making, marketing executives need reliable
data and up-to-date market information. Here, MR comes to the rescue of
marketing managers. Problems in marketing are located, defined, analyzed and
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solved through MR technique. MR is needed as a tool for reasonably accurate

decision making in the present highly competitive marketing system.
7. Recent developments in science and technology:
Science and technology are making rapid progress. In fact, the impact
of such progress touches all aspects of commercial and industrial activities.
Consumers prefer new/novel articles in place of old ones. Producers and
distributers find it difficult to take decisions due to lack of knowledge about
future market trends. Here, marketing research is useful as it provides
information about future trends in the marketing field and enables marketing
managers to take quick and correct marketing decisions.
The factors noted above clearly suggest the growing need of MR in the
present consumer-oriented marketing system. It is needed in order to reduce
the risks and uncertainties in the marketing activities.
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• FUNCTIONS OF MARKETING RESEARCH:
MR performs five basic functions. These functions are related to the

research project undertaken. Usually, every research study performs the
functions as explained below:
1. Description:
MR provides data and gives information/description of customers

who buy the product. This includes information about their age/sex, education,
income and the amount of money which they are willing to spend on the
product. Description of the customers is useful in order to draw certain
conclusions about the customers and their buying behavior.
2. Evaluation:
MR is useful for understanding the views/reactions of the buyers.

This includes views of consumers on packaging/ advertising/ sales promotion
measures used. A manufacturer gets these details as well as the information
about his product in comparison with the products of his competitors. This
facilitates evaluation of the marketing policies.
3. Explanation:
MR gives explanation to certain questions of a manufacturer related

to decline in sales, retailers negative reaction or resistance of consumers in a
particular marketing area.MR enables a manufacturer to understand why sales
are reducing (causes) or why the response of the retailers is negative or why
consumers in a particular region are not willing to purchase a specific project.
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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 which consumers may prefer in next year. In brief, MR is
useful for understanding the marketing environment likely to develop in
future. The prediction function is important even when all predictions made
through research studies may not prove to be fully correct. However, the trend
indicate can be used for appropriate policy decisions.
5. Aid in Decision-making:
MR guides the manufacturer as regards the manner in which he can

make effective advertising appeal or create incentive among his
salesmen/distributors. It also gives him guidance as regards price fixation and
sales promotion techniques which will be useful for the future period. These
functions facilitate reasonably correct decision-making by marketing
managers.
In brief, the basic function of MR is to support marketing decision-

making process. MR does not provide ready-made decisions or exact solutions
on all marketing problems. It only provides the clues or possible solutions
which should be taken into consideration in the decision-making process. It
provides support to skills and abilities of marketing managers.
The different functions of MR are supplementary in character.

These functions enable a manufacturer to keep close touch with the marketing
situation and enable him to make suitable changes in his marketing policies
and programmes.
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 ADVANTAGES / BENEFITS OF MARKEING

RESEARCH:
1. Indicates current market trends:
MR keeps business unit in touch with the current market trends

and offers guidance for facing market situation with confidence.
2. Pinpoints deficiencies in marketing policies:
MR pinpoints the deficiencies as regards products, pricing,

promotion, etc. It gives guidance regarding different aspects of marketing.
They include product development, branding, packaging and advertising.
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3. Explains customer resistance:
MR is useful for finding out customer resistance to company’s

products. Remedial measures are also suggested by the researcher to deal with
the situation. This makes the products and marketing policies agreeable to
consumers.
4. Suggests sales promotion techniques:
MR enables a manufacturer to introduce appropriate sales

promotion techniques, select most convenient channel of distribution, suitable
pricing policy for the products and provisions of discounts and concessions to
dealers. MR facilitates sales promotion.
5. Offers guidance to marketing executives:
MR offers information and guidance to marketing executives while

framing marketing policies. Continuous research enables a company to face
adverse marketing situation boldly. It acts as an insurance against possible
changes in market environment.
6. Facilitates selection and training of sales force:
MR is useful for the selection and training of staff in the sales

organization. It also suggests the incentives which should be offered for
motivation of employees concerned with marketing.
7. Promotes business activities:
MR enables a business unit to grow/expand its activities. It creates

goodwill in the market and also enables a business unit to earn high profits
through consumer- oriented marketing policies and programmes.
8. Facilitates appraisal of marketing policies:
Research activities enable business executives to have an appraisal

of the present marketing policies in the light of finding of research work.
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Suitable a adjustments in the policies are also possible as per the suggestions
made by the researchers.
9. Suggests new marketing opportunities:
MR suggests new marketing opportunities and the manner in which

they can be exploited fully. It identifies emerging market opportunities.
10. Facilitates inventory study:
MR is useful for the evaluation of company’s inventory policies

and also for the introduction of more efficient ways of managing inventories
including finished goods and raw materials.
11. Provides marketing information:
MR provides information on various aspects of marketing. It

suggests relative strengths and weaknesses of the company. On the basis of
such information, marketing executives find it easy to frame policies for the
future period. MR provides information, guidance and alternative solutions to
current marketing problems.
12. Suggests appropriate distribution channels:
MR can be used to study the effectiveness of existing channels of

distribution and the need of making suitable changes in the distribution
system.
13. Provides information on product acceptance:
MR helps in knowing the probability of acceptance of the

product in its present form. It is also useful for the introduction of
modifications in the existing product line of a firm.
14. Creates progressive outlook:
MR generates a progressive and dynamic outlook throughout the

business organization. It promotes systematic thinking and a sense of
professionalization within the company. It also creates enthusiasm among
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marketing executives. This brings success and stability to the whole business
unit.
15. Has wider social significance:
MR is of paramount importance from the social angle. It is the

means by which the ultimate consumer literally becomes king of the market
place, with his desires, prejudices and every whim transmitted to the producer
and distributor. In brief, MR has wider social significance. It is useful to all
parties involved in the process of marketing.
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 LIMITATIONS OF MARKETING
RESEARCH:
MR itself is not complete/perfect in all respects. It deals with
marketing environment which itself is flexible. Even the actions/reactions of
consumers are different under different situations. This brings limitations:
1. MR offers suggestions and decisions:
MR is not a substitute for decision-making process. It only offers

possible suggestions/solutions to marketing problems. It guides marketing
managers in taking balanced, result-oriented and rational decisions. MR offers
predictions but they are not necessarily accurate or perfect. MR only provides
indicators. MR aids managerial decision-making but it cannot replace
judgment and experience of marketing executives/managers. MR is not always
the only source of information to be used for marketing decisions.
2. MR cannot predict accurately:
In MR, efforts are being made to estimate or predict the possible

future situation. However, the results/conclusions arrived at may not be
complete, perfect or accurate. They predict possible tendencies but not
certainties. This is because market environment is ever changing, consumer
behavior is difficult to estimate correctly and reliable data for research purpose
may not be available. As a result, the decisions taken and policies framed on
the basis of such research studies may not be accurate and useful for solving
current marketing problems.
3. MR conclusions are not dependable:
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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.
4. MR cannot study all marketing problems:
MR is rather very wide in scope. However, it cannot study all

marketing problems particularly where it is difficult to collect relevant data.
Even it is not useful for dealing with urgent marketing problems where quick
decisions and follow-up actions are necessary. Thus, all marketing problems
are not researchable and all research problems are not answerable.
5. Resistance by marketing executives:
Researchers study marketing problems and offer information and

guidance to marketing executives in their decision-making process. However,
some executives are reluctant to use the solutions suggested by the
researchers. They feel that such extensive use will act as a threat to their
personal status. Findings of the research work may bring them in difficulties if
the policy-decisions taken accordingly prove to be wrong.
6. Lengthy and time-consuming activity:
MR is a lengthy and time consuming activity. It involves various

stages/steps which need to be completed in an orderly manner. It is not
desirable to conduct research work is a haphazard manner. MR is not useful
for dealing with urgent marketing problems. Moreover, research work cannot
be conducted overnight and marketing decisions cannot be postponed till the
research work is completed.
7. MR is a costly affair:
MR is costly as research work requires the services of experts

with knowledge, maturity and skill. Such experts include economists,
management scientists, statisticians, psychologists and computer (software)
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experts. Advanced training in economics, computer technology, psychology,

sociology, etc. is also necessary on the part of research staff.
8. Non-availability of qualified staff:
For scientific MR, professional marketing researchers with proper

qualifications, training and experience are necessary. Research work is likely
to be incomplete/unreliable in the absence of such expert staff. Companies
find it difficult to have the services of such expert staff. Research activities are
conducted in limited areas due to non-availability of property qualified staff.
Such staff includes statisticians, psychologists, sociologists, economists and
computer experts.
9. Complexity of the subject:
MR fails to give complete and full proof solutions to

management. This is because MR itself is not an exact science. It is concerned
with the study of human beings and human behavior is always difficult to
predict. Errors in drawing conclusions are possible due to this human element
in MR activities. Errors in the research studies are also possible due to
uncertainty of human behavior and also because of non-availability of reliable
data.
10. Changing behavior of consumers:
Consumer is the focal point in MR. However; his buying motives

are difficult to judge precisely and accurately. This brings some sort of
uncertainty in conclusions drawn from research activity. The findings of the
research work (in case of consumer research) may not prove to be accurate.
11. Limited practical utility:
MR is regarded as an academic exercise. It is often been delinked

from the business strategy. As a result many research reports become
‘academic’ in nature and are ‘field’. Researchers take more interest in
concluding research work rather than in supplying information and guidance
to marketing managers in the decision-making process.
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12. Passive nature:
MR is passive by its nature. Sometimes, it becomes too

superficial and faulty in business management. Many conclusions drawn from
the MR activities may be imaginary or not based on realities. Its use and
effectiveness largely depend on the ability of marketing executives to get the
most promising results out of it. MR by itself may not give any benefit. It only
shows the way to executives in the decision-making process.
13. Fragmentary approach:
On many occasions, MR tends to be fragmentary in its approach.

It suggests solution which may be difficult to put into operation. This is
because overall marketing environment is not given adequate attention while
suggesting the solution. Such fragmentary approach is not useful for solving
marketing problems in an integrated manner.
14. Absence of affective communication:
The research activity will be useful and result-oriented only

when there is meaningful dialogue between the marketing management and
MR team. However, such dialogue is ineffective in many organizations. This
makes research activity ineffective.
The limitations of MR do not suggest that it is a redundant

activity or an activity without any practical utility. It only suggests that the
MR activity should be conducted with proper care and caution.
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IMPORTANT BRANCHES OF MARKETING

RESEARCH
1) Product Research:
Product research relates to products which are to be marketed to
consumers. It is useful for introducing new product which will be agreeable to
consumers. Product research relates to various aspects such as design,
development and introduction of new products, testing of existing products,
product modification studies and so on.
2) Packaging Research:
Packaging research is a part of product research. It is important for
making the product attractive and agreeable to consumers. Packaging is now
treated as a tool for sales promotion. Constant changes in package design are
required for sales promotion. For innovation in the package design, packaging
research is necessary. Branding and packaging normally go together and hence
brand research is treated as a part and parcel of packaging research.
3) Pricing Research:
It relates to analysis of pricing policies and strategies, studies of
market price trends, fixation of market prices, studies relating to price charged
by competitors, price incentives for sales promotion and provision of price
discount and other price concessions to dealers and consumers.
4) Market Research:
It relates to analysis of consumer markets, assessment of market
trends, forecasting of business conditions, studies of wholesale marketing,
market competition studies, sales forecasting, estimating demand for new
products and monitoring competitive marketing activities.
5) Sales Research:
It relates to studies of sales outlets, sales territories and their
revision, trends in sales, sales forecasting, sales policies, sales performance
and so on.
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6) Promotion and Distribution Research:

Promotion research relates to assessing effectiveness of the sales
force and selling efforts, effectiveness of advertising campaigns. It also
includes the study of channels of distribution for modification for
modification, distribution cost analysis of the physical distribution, inventory
control and handling of goods
7) Consumer Research:
It relates to finding out consumers needs and preference,
consumers purchasing intentions, consumers choice of brands, trends in
consumer preference and purchasing patterns.
8) Policy Research:
It is related with the evaluation of effectiveness of marketing
policies, sale policies, distribution policies, pricing policies, inventory policies
and so on.
9) Advertising Research:
It relates to evaluation of advertising effectiveness, analyzing
competitive advertising and selection of appropriate advertising media. Media
research, copy research, corporate research are included within the scope of
advertising research.
10) Media Research:
Different media are used for communicating message about the
products to prospective buyers. Media are used for advertising and publicity
purpose. Newspaper, TV, magazines are used for advertising. Media research
relates to detailed study of different media for selection and use.
11) Motivational Research:
It is one aspect of consumer research as it deals with consumer
behavior. Consumer research is useful for finding out the sentiments, buying
motives, priorities and inner feelings of consumers.
12) International Marketing Research:
It deals with foreign markets which are attractive and profitable
provided products and marketing activities are adjusted as per the need of
foreign markets and buyers. Data collections about foreign markets, market
surveys, etc. are undertaken under international marketing research. Such
research is costly and time consuming as compared to internal research.
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 METHODS OF CONDUCTING MARKETING

RESEARCH
It is classified into following four categories:
1) Desk Research:
In desk research, the required information for research work is
collected from published and other written sources of the collection secondary
data. Desk research is a type of in-house research.
2) Field Research/investigation:
In this method, the required information is collected from the
consumers, dealers and others connected with marketing through personal
interviews, etc. In addition, consumer’s surveys are also conducted for this
purpose. The data collected from such field investigation are called primary
data.
3) Observation Method:
In observation method, the required information is collected
through actual physical observation of one or more phenomena under study.
This method is also useful for the collection of primary data.
4) Experimentation Method:
Here the required information is collected through a small scale
experiment under controlled conditions. It is also used for primary data
collection.
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 MARKETING INFORMATION SYSTEM

(MIS)
 WHAT IS MIS?
Marketing information system supports marketing decision making

and marketing planning. It facilitates quick marketing decision making and
thereby raises marketing excellence. Even after collecting all required
information, the decisions are to be made by marketing executives.
MIS is an essential support system for developing marketing
decisions, plans and strategies.
Information is critical for a firm’s survival and competitive edge in the
marketing field. Information network serves as key resource in all aspects of
life including business and marketing. Required information needs to be
collected, arranged and stored systematically for reference purpose. This is
what is achieved through MIS.
In order to achieve marketing objective, correct decision must be taken
and correct decision making is possible when reliable, up to date and adequate
information is made available regularly.
 DEFINITIONS OF MARKETING INFORMATION

SYSTEM:
According to MR.COX AND GOOD “A set of procedures and methods

for the regular and planned collection, analysis and presentation of
information in making marketing decisions.”
According to MR.WILLIAN STANTON “Marketing information system

(MIS) is an ongoing, organized set of procedures and methods designed to
generate, analyze, store, and retrieve information for use in making marketing
decisions.”
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 FUNCTIONS OF MARKETING INFORMATION SYSTEM:
1) Assembling of information or relevant marketing data through

internal and external sources. Such data act as a raw material of MIS.
2) Processing of information i.e. editing, tabulating and summarizing
the data collected for the purpose of ready reference and critical
analysis.
3) Analyzing the data collected which is essential for drawing
conclusions for decision making.
4) Storing of data collected i.e. filing and indexing of information
collected so that it can be made available for use when required.
5) Evaluating the data i.e. finding out accuracy and reliability of the
data collected.
6) Disseminating relevant information to decision makers, i.e.
Marketing Managers.
7) Updating the information collected periodically by discarding
outdated data and incorporating new data available.
8) Introducing updated information technology in the collection
processing and storing of information collected.
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 CHARACTERISTICS OF MARKETING
INFORMATION SYSTEM:
1) Continuously operated process:

MIS is a consciously developed technique for the flow of
information to the company. It operates continuously. Regular flow of
information acts as a feedback in decision making. It is an ongoing process as
new information is added to the old one in a continuous manner.
2) Facilitates prompt and correct decision making:
MIS provides updated information on various aspects of marketing
to managers or executives. As a result, managers are aware of new marketing
developments taking place. They are also in apposition to take prompt
decisions from time to time due to the feedback provided by MIS. It acts as a
data bank for the benefit of marketing managers.
3) Future oriented:
MIS provides information about possible future problems and their
solutions through appropriate marketing decisions. It acts as a preventive
mechanism in marketing management and offers guidance to marketing
executives.
4) Provides continuous information on marketing developments:
MIS collects and provides information on marketing to concerned
executives. It goes to right people at the right time. In other words, it provides
right information at the right time to right people for decision making. As a
result, decision-making process becomes accurate and quick.
5) Acts as a link between external environment and internal
resources:
It provides updated information about external marketing situation
and facilitates suitable adjustment in the internal resources to face the overall
situation effectively.
6) Operates in a systematic manner:
MIS operates in a rational and systematic manner. This is
necessary for quick reference to required information. Proper system in the
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collection and storing of information is necessary as varied type of

information is now easily available. Such information has to be stored after
due classification. In brief, MIS needs well prepared operational system for
raising its utility and efficiency.
7) Uses modern technologies:
New techniques and machines are available for collection,
processing and storage of information. MIS is now becoming costly and also
needs the service of technically qualified staff (software experts).MIS is now
based on advanced technology. It is a computer based method of data
collection, processing and storage. Due to the use of computers updated
information is provided to executives easily and quickly.
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• SOURCES OF MARKETING INFORMATION

SYSTEM:
Information is the base of MIS. Such information is collected from

different sources which includes internal and external.
Internal Sources of Information:
1) Old statistical records of the company.

2) Sales invoices and sales statistics.
3) Sales force records.
4) Production statistics.
5) Accounting data.
6) Financial records.
7) Departmental budgets and reports.
8) Old research and surveys.
9) Periodical progress reports.
10) Director’s report and committee reports.
External Sources of Information:
1) Trade journals and periodicals.

2) Business press i.e. Economics Times, Financial Express, etc.
3) Census reports and other government publications on business, finance,
marketing, exports, etc.
4) Publication of trade associations and other agencies concerned with
finance, trade, commerce and industry.
5) Publication of RBI, financial institutions, term lending institutions and
government departments.
6) Publications and survey report of World Bank, WTO, FAO, etc.
7) Published survey reports and statistical data.
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8) Special reports, surveys conducted by marketing research agencies,

magazines, advertising agencies etc.
9) Publications of stock exchanges, commodity exchanges and export
promotion councils.
10) Daily press, reports and information.
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• ADVANTAGES OF MARKETING INFORMATION

SYSTEM:
1) Provides updated and timely information for decision-making:

MIS provides information about various aspects of marketing.
Information acts as a feedback and facilitates correct decision making by
marketing managers. Problems are solved at the initials stages through suitable
preventive measures.
2) Facilitates monitoring of marketing operations:
Data on different aspects of marketing can be collected and stored
through MIS. This helps easy and effective monitoring of the performance of
products, markets etc.
3) Raises efficiency of decision making:
Integrated and updated marketing information may not be available
easily and quickly in large companies with many departments. However
separate arrangement can be made for collection, evaluation and storage of
such information through efficient MIS.
4) Facilitates quick reference:
Easy and quick reference to old information is possible due to MIS.
Quick reference to old information is due to modern computer techniques.
5) Promotes marketing excellence:
It is rightly said that to manage a business well is to manage its future
and to manage the future is to manage information. Marketing decisions will
be accurate when they are based on dependable information. Thus, MIS gives
the benefit in the form of marketing excellence.
6) Facilitates tapping of marketing opportunities:
MIS facilitates tapping of promising marketing opportunities and
effective defense against marketing problems and threats likely to develop in
the future. Both benefit stability and prosperity.
33
 COMPONENTS OF MARKETING INFORMATION

SYSTEM:
1) Internal Marketing Information:

This component of MIS provides information from within the
organization itself i.e. through the accounting system on sales, inventories,
cost, cash flows and old records. All such data provides information for
marketing decision making. All such data are available within the firm and
hence these sources are called internal sources of marketing information.
Marketing managers use this internal source as the information is available
easily and quickly. For easily availability of internal information, filing and
record keeping system must be efficient.
2) Marketing Intelligence:
This component provides information on external marketing
environment. Information is collected from external sources. It provide
information regarding current marketing environment and changing conditions
in the market. This information is available through census data, weekly and
monthly reports on markets and market news published in magazines and
trade journals etc. Market intelligence acts as a mirror of marketing
environment and provides appropriate decision making on marketing.
3) Marketing Research (MR):
In this component, specific marketing problem of the firm is selected
for investigation. Data regarding the problem is collected, tabulated analyzed
and conclusion is drawn. Suitable policy measures are recommended in order
to solve the problem.
4) Market Information Analysis:
Information gathered by the company’s marketing intelligence and
marketing research systems often requires more detailed analysis. With
support from market information analysis managers can make better
marketing mix decisions, design sales territories, select site for retail outlets
and forecast new product sales.
34
 DIFFERENCE BETWEEN MIS AND MR:
Marketing Research Marketing Information

(MR) System(MIS)
1) Meaning MR is the systematic MIS is a set of procedures
gathering, recording and and methods used for the
analyzing of data relating to regular and planned
the marketing of goods and analysis and presentation of
services. information for marketing
decision-making.
2)Nature of MR is a narrow concept as MIS is a broad concept. Its
concept MR is one of the purpose is to collect
components of MIS. information on all aspects
of business.
3)Information MR provides precise and MIS provides information
provided properly analyzed on various aspects of
information regarding a marketing in order to frame
specific marketing problem marketing policies and
with a view to solving that marketing decisions.
problem.
4)Purpose The purpose of MR is to The purpose of MIS is to
study a specific marketing provide relevant and
problem in depth and to reliable information to all
solve it quickly and also in departments and facilitates
satisfactory manner. quick and correct decision-
making.
5) Coverage MR collects information MIS collects information
relating to specific on various aspects of
marketing problem under marketing such as
investigation. products, consumer needs,
market competition and
sales.
6) Operational MR is conducted on MIS is a continuous
method problem by problem or system and information is
project by project basis collected, analyzed used
with each project having a and stored in a regular and
starting and ending point. continuous manner.
7) Use of It’s a non computer based MIS is a computer based

computer system. However, process as a computer
computers may be used technology is extensively
tabulating data or while used while collecting,
analyzing the information analyzing and storing the
collected. information collected.
8) Type of MR is past-oriented. MIS is future-oriented.
orientation
9) Every company may or Companies make
35
Organizational may not maintain MR arrangements for the

structure. department. collection and storage of
information through MIS.
10) Frequency of In MR data collection is not In MIS data are collected
data collection. continuous but only as per regularly on different
the research projects marketing aspects in which
undertaken. the firm is interested.
11) Sources of In MR, external sources In MIS, external as well as
data used: such as surveys and census internal sources are used
reports are used for data for data collection.
collection.
SAMPLING
36
PLANNING AND DESIGNING THE SAMPLE:

In MR, primary data cannot be collected from each and every
dealer/consumer as this is costly and time-consuming. The better alternative is
to select a representative sample and to collect information from such selected
individuals called sample. The information collected from the sample will be
applicable to the entire group but the collection will be quick and economical.
Sampling is based on the law of statistical regularity and the law of
inertia of large numbers. It is a process of selecting a small representative
group from the whole for intensive study purpose. A sample is a part of the
whole and is representative in character. It refers to a selected number of
individuals chosen from the whole group/population with a view to obtaining
information and drawing conclusions.
Naturally, the conclusions applicable to the sample are also
applicable to the whole universe. This is how reliable data can be collected
quickly and economically through sampling. Moreover, sampling facilitates
collection of information this is sufficiently adequate for survey purpose.
Sampling methodology is the foundation of the research design. It has a key
role to play in a systematic and objective marketing survey.
According to Crisp R. D., the fundamental idea of sampling is that
“if a small number of items or parts (called a sample) are chosen at random
from a large number of items or a whole (called a universe or population) the
sample will tend to have the same characteristics and to have them in
approximately the same proportion as the universe.”
FEATURES OF SAMPLING:
37
1. Sampling is a small representative of the whole. It is an effective

alternative to the census survey.
2. Sampling reduces the time, efforts and money of the researcher on data
collection without any adverse effect on its quality.
3. The sampling technique is based on the assumption that random

selection of sample from the universe do possesses the same features and
characteristics as that of the universe.
4. The findings of sample survey are accurate and reliable. The large
sample is better as the results available are more accurate.
5. Sampling is used in data collection as well as for different purposes in

our daily life.
38
ADVANTAGES OF SAMPLING METHOD:

1. Saves time and money:
Sampling facilitates primary data collection easily, quickly and

with less cost. It is time saving and economical method of survey for data
collection.
2. Provides reliable data:
The conclusions drawn from the sample survey are reliable,

accurate and also applicable to the whole population/universe. Sampling
has no adverse effect on the quality of data collected. It gives quality
results with lesser volume of work.
3. Scientific base:
The concept of sampling has scientific backing as it is based on

the law of statistical regularity and the law of inertia of large numbers.
4. Popular and extensively used technique in MR:
The concept of sampling is quite common and popular in MR

as it helps researchers to finalize their findings and recommendations
within a short period.
5. Facilitates better supervision on data collection:
39
Sampling method is restricted to limited number of

respondents. Naturally effective monitoring and supervision on the data
collection work is possible. This improves the quality of data collected.
LIMITATIONS OF SAMPLING METHOD:
1. Findings may not be accurate:
The findings and collection drawn from sample survey may

not be as available from the census technique in which the entire
population is covered. The accuracy is comparatively less.
2. Findings may not be reliable:
The findings may not be reliable if the sample selected is too

small or is not adequately representative in the character. In such case, the
conclusions drawn may be misleading and this may affect the quality of
research work.
3. Difficulties in the selection of representative sample:
There are many practical difficulties in the selection of

representative sample. This may defeat the very purpose of sampling.
4. Findings are not completely accurate:
40
The findings of sampling method are reasonably accurate but

not completely accurate.
5. Data collection difficult in the case of large sample:
Data collection become difficult when large size sample is

decided. This also leads to more time and money for data collection.
SAMPLING PROCESS/STEPS IN SAMPLING PROCESS:
The sampling process consists of various steps involved in selecting

an appropriate sample. The work of sampling process starts with
defining/deciding the data needs of the research projects and ends with final
selection of sample for actual use. A detailed plan for the selection of
appropriate sample is the sampling process which is lengthy and time
consuming.
The following steps are involved in the sampling process:
41
1. Deciding the data needs of research project:
Here, it is necessary to define the data requirements of

proposed research project. For this, the research problem needs to be
studied properly. Deciding the data needs of the project is the first and
basic step in the sampling process.
2. Deciding the area to be covered by survey work:
In this step, the area to be covered by the survey work needs

to be decided clearly. Population and sample size relate to the area
decided for the survey work. However, the decision in this regards
should be firm and final.
3. Defining the population:
Here, the total population from which the sample is to be

selected will be decided. The total population may be different for
different survey work. The researcher has to decide the population in
terms of elements, sampling unit, time available and so on. For
example, for the specific survey, the population may be all girls in the
group of 18 to 22 within the sampling area which may be decided as
Mumbai city. The time period for the sample/survey may be from 15th
October 2006 to 15th January 2007.
4. Deciding the sample frame:
The sample frame for the survey should be proper. Every

element of the population should be represented only once. Attention
should be given to adequacy, accuracy, completeness and convenience
before deciding the sample frame.
5. Determining the desirable sample size:
The sample size should be decided in a fair manner. It

should not be too large or too small. It should be as per the
requirements of the research work. Here, adequate attention should be
42
given to various factors such as data needs of the project, the statistical
method to be used for analysis of data, the method of sampling to be
used and the availability of time, money and other resources.
6. Selecting the sampling method:
Methods of sampling are varied and broadly divided into

two categories-probability sampling and non-probability sampling.
Any suitable and convenient method should be selected for sampling
purpose.
7. Drawing samples and obtaining data from the selected

respondents:
Here, the final selection of the sample is to be made from

a well defined population. The sample selected should be of suitable
size. It should be selected through suitable method.
After making all such preparations, the researcher should select

the field staff for the collection of data. They include interviewers,
supervisors and others. This will enable them to act efficiently and
collect the required information within the time schedule prepared.
43
SAMPLING METHODS/SAMPLING DESIGNS:

Sample designs are different methods used for the conduct of
sample survey. Quota sampling, judgment sampling etc. are the non-
probability sample designs while random sampling, area sampling, etc. are the
probability sample designs. In brief, the sample designs are divided into the
following two categories:
1. Probability Sampling Methods, and
2. Non-Probability Sampling Method.
1. Probability/Random Sampling Methods:
In the probability sampling methods, the sample units

are selected at random. Every member in the universe has equal chance
of being selected as the representative. The selection of sampling items
is impartial and independent of the person making the study. There is
no scope for any biased selection of sample units. Probability sampling
methods include random sampling, stratified, cluster, sampling, etc.
Such methods are used extensively in marketing research. Greater
statistical competence and time are required to plan and probability
sampling methods.
2. Non-probability Sampling Methods:
Here, sample units are selected in a non-random

manner. The selection may be purposive. It may be based on the
convenience or the judgment of the researcher. Every item is not given
a definite chance of being included in the sample. The non-probability
sampling methods include convenience sampling, judgment sampling
and quota sampling. In these methods, the sample is selected in a
subjective manner and the decision regarding sample is taken by the
researcher himself.
44
Non-probability sampling methods are also used in

marketing research along with probability methods. Such methods are
sometimes preferred because they cost less per observation, required
less time and need relatively little statistical sophistication in planning
the sample design and in the selection the respondents.
 MARKETING RESEARCH PROCESS
• Details of steps in MR process:
1. Identifying and defining a marketing problem:

The First step/ starting point in the MR process is to identifying the
marketing problem which needs to be studied in depth and solved. The
research process will start only when the marketing problem is identified
clearly.
2. Conducting preliminary survey:
The marketing team may suggest many marketing problem which
they face. All marketing problems are not researchable and hence such
preliminary survey is necessary.
3. Determining research objectives:
The objective decided should be specific, measurable and also
attainable. The research objectives decided act as a guide to the researcher and
help him in maintaining a focus on the whole research project.
4. Creating research design:
The research design is a plan /blueprint of the whole research work
to be undertaken. It gives all details of the research project and acts as a
reference document during the execution of research project. The research
design indicates the method of research, the instruments to be used for the
research, the method of sampling etc.
5. Determining the data needs and their source:
The researcher has to decide the nature of data required for his study.
The researcher can use primary and/ or secondary data for his project. The
researcher has to decide the convenient method for data collection.
45
6. Designing a sample of respondents:

Sample is a small representative group selected from the total
population for intensive study purpose. Sampling is necessary in marketing
research as information collection from all consumers or all dealers is not
possible due to time and cost involved.
7. Designing the questionnaire:

Questionnaire aspect relates to the selection of research instruments
employed in research for collecting required information/data. The
questionnaire is one research instrument used extensively in a survey type
research.
8. Selection of field staff:
For data collection/ survey work, field staff is required. This includes
interviewers, supervisors and staff for secondary data collection. For data
collection, qualified staff should be selected on fair terms.
9. Data collection:
Data collection moves the research process from planning stage to
implementation stage. Communication between the researcher and the sample
begins at the data collection as per the method selected for data collection.
10. Data processing:
The completed questionnaires are not useful directly for tabulation
and drawing conclusions. This raw data need proper processing. For this,
scrutiny of data, editing, coding, classification and tabulation of data are
required.
11. Data analysis and interpretation:
The final step in a research study consists of analyzing the data and
interpreting the results. The purpose is to establish a relation between the
information and marketing problem under investigation.
12. Preparation of research report:
After drawing conclusions from the data collected, the researcher can
make concrete recommendations for solving the marketing problem. A
researcher also prepare a research report giving detail of research problem,
data collected, conclusions drawn and the recommendations made.
13. SUBMISION OF RESEACH REPORT:
46
In this stage, the researcher will submit his research report to the
appointing authority. The researcher may submit his findings,
recommendations, etc.
 MARKETING RESEARCH ON
PREFERENCE OF CONSUMER
Celebrity endorsement is a boom marketing concept in today’s world,

since, customer recall is found to be higher with celebrity endorsement
advertisement. We can see that every company is going for this marketing
strategy for advertising their brands. Companies which produce fast moving
consumer goods and companies which produce product like suiting,
automobiles, garments, etc. all are adopting this marketing strategy to
advertise their product.
So through this research we are trying to find out, that whether

consumer buying product just because that product is being endorse/
advertising by celebrity or which are those factors consumer take into the
consideration while buying any product.
For this research we use random sampling method:
Sample size:
Total 90 people were contacted and interviewed.

Due the different kind of characteristic of consumer, we used segmentation
method. We segment them into the three categories, according to their age.
Sample design:
AGE WISE
5—15 16—30 30—above

30 30 30
47
QUESTIONNARE:
Name:.
Age: _________ Sex: ____________
Occupation:
1. Do you like seeing celebrities in the advertisement?
Yes: _______ No: _______
2. Do you feel celebrities should advertise?
Yes: ______ No: ________
3. Do you buy the product endorsed by the celebrities?
Yes: ______ No: ________
4. Do you feel they relay the message more effectively?
Yes: ______ No: ________
5. Does celebrity attract towards product?
Yes: ______ No: ________
6. Which things you give more preference while purchasing any product?
(a) Quality (b) Celebrity (c) Style
7. Would you like to switch your traditional product with new quality product?
Yes: ______ No: ________
48
ANALYSIS OF THE SURVEY:
• Three categories of people were interviewed. The three categories

being.
1. Age group of 05-15.
2. Age group of 15-30.
3. Age group above 30.
• The number of people interviewed was approximately 90.
 DATA FOUND IN SURVEY
1. Do you like seeing celebrities in the advertisement?
100
80
60
40 YES
NO
20
0
1st 2nd 3rd
group group group
2. Do you feel celebrities should advertise?
49
100
80
60
40 YES
NO
20
0
1st 2nd 3rd
group group group
3. Do you buy the product endorsed by the celebrities?
100
80
60
40 YES
NO
20
0
1st 2nd 3rd
group group group
4. Do you feel they relay the message more effectively?
100
80
60
40 YES
NO
20
0
1st 2nd 3rd
group group group
5. Does celebrity attract towards product?
50
100
80
60
40 YES
NO
20
0
1st 2nd 3rd
group group group
6. Which things you give more preference while purchasing any product?
(a) Quality (b) Celebrity (c) Style
100
80
60
Quality
40 celebrity
20 style
0
1st 2nd 3rd
group group group
7. Would you like to switch your traditional product with new quality product?
51
100
80
60
40 YES
NO
20
0
1st 2nd 3rd
group group group
• Findings from the survey:
1. All the three age groups like to see celebrities in the advertisements. The
reason being, for the 1st age group - they just like to see their favorite stars in
the ads. For the 2nd and 3rd group are they come to know about a new talent
in their favorite stars or celebrities and quality of the product.
2. For the question "do you feel that the celebrities should do the ads" the 1st
group said 'Yes' because they like the celebrities very much. The 2nd group
said that they should come in the ads because it attracts the customers towards
the product for which they are advertising. The 3rd group feel that as they are
bored to see the same faces in the ads, it’s good that celebrities come in ads, its
creates an interest to see the ad.
52
3. The 1st age group and the 2nd age group like to see the ads repeatedly but
the 3rd group doesn't have that much inclination for it except a few selected
ads.
4. When it comes to liking of celebrities, group 1 is very fond of celebrities.
5. For the question " do you think they relay the message more effectively",
the 1st group had no answer as such but the 2nd group agreed to the question
and the 3rd group gave the example of cad bury and coke sales rising up still,
after the pesticides problem.. They feel it’s because of Amitabh Bachchan for
Cadbury and Aamir Khan for coke.
6. When it comes to buying the product endorsed by the celebrities the 1 st

group says yes. They insist upon buying the product endorsed by them. The
2nd group is very choosy, they don't buy everything the celebrities endorse
except FMCG goods like cold drinks and chocolates etc. the 3rd group is
basic1ally more of logical thinkers. They say that "it’s good to see the ads and
enjoy more than going and buying only those products endorsed by them.”
53
CONCLUSION
Marketing research is one of the essential supplements of modern
highly competitive, consumer oriented and global marketing system. It
facilitates large scale marketing with satisfaction and pleasure to consumers.
It is essentially a systematic and objective study of different problems

of marketing. It helps to study various marketing problems in depth and offers
various benefits to manufacturing and marketing firms or organizations.
Marketing Research enables the firm or organization to make their

business operations as per the needs and expectations of the consumers. It
provides information regarding consumers and their needs/ expectations,
intensity of market competition, sales promotion techniques used by the
competitors. It also helps the firm to find out the method or strategies for
making their products popular in the market, raising its goodwill and also its
market reputation.
The purpose of MIS is to provide relevant and reliable information to

all departments and facilitates quick and correct decision-making.
MIS is the life blood of marketing decision-making.
54
RFERENCES
THE INFORMATION COLLECTED IS MAINLY FROM THE

FOLLOWING SOURCES:
• BOOK REFERENCE:
“MARKETING MANAGEMENT” BY PHILIP KOTLAR.
“MARKETING RESEARCH” BY N.G.KALE & M.AHMED
• WEBSITES:
www.hindustantimes.com
www.bbc.com
www.yahoo.com
www.google.com
• ECONOMIC TIMES
• DAILY NEWS AND ANALYSIS [DNA]
• TIMES OF INDIA
55

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Submitted for the first year of

Master of management studies

Ms. Shinde Nayana S.

Mr. Meshram Tushar G.

Mr. Ghanekar Sameer J.

Mr. Karval Vinod P.

Ms. Ghanekar Kavita G.

Under the guidance of

YADAVRAO TASGAONKAR SCHOOL

We desire to express our sense of profound gratitude to all those

With immense pleasure, we would like to express our deepest sense of

We would also like to thank our parents who have supported us

Sr. no. Particulars Pg.no

1 Introduction and Definition

2 Features of Marketing Research

3 Objective of Marketing Research

4 Need of Marketing Research

5 Functions of Marketing Research

6 Advantages of Marketing Research

7 Limitations of Marketing Research

8 Branches of Marketing Research

9 Method of Conducting Marketing Research

16 Difference between MIS and MR

17 Sampling- Planning and Designing

20 Advantages of Sampling Method

21 Limitations of Sampling Method

22 Steps in Sampling Process

24 Marketing Research Process

25 Marketing Research on Preference of

DEFINITIONS OF MARKETING RESEARCH

FEATURES OF MARKETING RESEARCH:

7) Applied type of research:

OBJECTIVES OF MARKETING RESEARCH:

• To study the need, wants and expectation of consumers.

INCREASING NEED OF MARKETING

The following factors/points suggest increasing need of MR:

The marketing activity is becoming increasingly complex and broader

This situation creates new problems before the manufacturers which

2. Wide gap between producers and consumers:

Marketing research is needed as there is a wide gap between producers

The problems creates due to information gap can be solved only

3. Changes in the composition of population and pattern of

In India, many changes are taking place in the composition of

MR is needed for the study of changes in the pattern of

4. Growing importance of consumers in marketing:

Consumers occupy key position in modern marketing system. They are

MR particularly consumer research gives valuable data relating to

5. Shift of competition from price to non-price factors:

Cut-throat competition is unavoidable in the present marketing field

MR is needed as it offers guidance in this regard. A manufacturer

6. Need of prompt decision making:

In competitive marketing, marketing executives have to take quick and

solved through MR technique. MR is needed as a tool for reasonably accurate

7. Recent developments in science and technology:

• FUNCTIONS OF MARKETING RESEARCH:

MR performs five basic functions. These functions are related to the

MR provides data and gives information/description of customers

MR is useful for understanding the views/reactions of the buyers.

MR gives explanation to certain questions of a manufacturer related

MR conducts prediction function. Such predictions may be related