Name: Muhammad Naveed

Registration No. : MB3.502161001

Submitted to: Sir Atif

Submitted on: 20-05-2019

Title: Marketing Research

 MARKETING RESEARCH
LIMITATIONS AND DATA COLLECTION IN MARKETNG RESEARCH

INTRODUCTION:

According to American Marketing Association, “Marketing Research is the

function that 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 marketing as a process.”

Marketing Research is systematic problem analysis, model building and fact

finding for the purpose of important decision making and control in the marketing
of goods and services.

Marketing Research is a well-planned, systematic process which implies that it

needs planning at all the stages. It uses scientific method. It is an objective process
as it attempts to provide accurate authentic information. Marketing Research is
sometimes defined as the application of scientific method in the solution of
marketing problems.

Marketing Research plays a very significant role in identifying the needs of

customers and meeting them in best possible way. The main task of Marketing
Research is systematic gathering and analysis of information.

Before we proceed further, it is essential to clarify the relationship and difference

between Marketing Research and Marketing Information System (MIS). Whatever
information are generated by Marketing Research from internal sources, external
sources, marketing intelligence agencies-consist the part of MIS.

MIS is a set of formalized procedures for generating, analyzing, storing and

distributing information to marketing decision makers on an ongoing basis.
While Marketing Research is done with a specific purpose in mind with
information being generated when it is conducted, MIS information is generated
continuously.

MIS is continuous entity while Marketing Research is a ad-hoc system.

While in Marketing Research information is for specific purpose, so it is not rigid;

in MIS information is more rigid and structured.

Marketing Research is essential for strategic market planning and decision making.
It helps a firm in identifying what are the market opportunities and constraints, in
developing and implementing market strategies, and in evaluating the effectiveness
of marketing plans.

Marketing Research is a growing and widely used business activity as the sellers
need to know more about their final consumers but are generally widely separated
from those consumers. Marketing Research is a necessary link between marketing
decision makers and the markets in which they operate.

Marketing Research includes various important principles for generating

information which is useful to managers. These principles relate to the timeliness
and importance of data, the significance of defining objectives cautiously and
clearly, and the need to avoid conducting research to support decisions already
made.

Marketing Research is of use to the following:-

Producers

To know about his product potential in the market vis-à-vis the total product;

New Products;

Various brands;

Pricing;

Market Structures and selection of product strategy, etc.

Business and Government

Marketing Research helps businesses and government in focusing attention on the
complex nature of problems faced by them. For example:

Determination of Gross National Product; Price indices, and per capita income;

Expenditure levels and budgeting;

Agricultural Pricing;

The economic policies of Government; and

Operational and planning problems of business and industry.

Market Research Agencies

Marketing Research is being used extensively by professionals to help conducting

various studies in Marketing Research. Most prominent agencies being:-

Linta India Ltd;

British Market Research Bureau (BMRB);

Hindustan Thompson Associate Ltd;

eSurveysPro.com;

MARG

LIMITATIONS OF MARKETING:

Following are the main limitations of Marketing Research:

Marketing Research (MR) is not an exact science though it uses the techniques of
science. Thus, the results and conclusions drawn upon by using MR are not very
accurate.

The results of MR are very vague as MR is carried out on consumers, suppliers,

intermediaries, etc. who are humans. Humans have a tendency to behave
artificially when they know that they are being observed. Thus, the consumers and
respondents upon whom the research is carried behave artificially when they are
aware that their attitudes, beliefs, views, etc are being observed.
MR is not a complete solution to any marketing issue as there are many dominant
variables between research conclusions and market response.

MR is not free from bias. The research conclusions cannot be verified. The
reproduction of the same project on the same class of respondents give different
research results.

Inappropriate training to researchers can lead to misapprehension of questions to

be asked for data collection.

Many business executives and researchers have ambiguity about the research
problem and it’s objectives. They have limited experience of the notion of the
decision-making process. This leads to carelessness in research and researchers are
not able to do anything real.

There is less interaction between the MR department and the main research
executives. The research department is in segregation. This all makes research
ineffective.

MR faces time constraint. The firms are required to maintain a balance between the
requirement for having a broader perspective of customer needs and the need for
quick decision making so as to have competitive advantage.

Huge cost is involved in MR as collection and processing of data can be costly.

Many firms do not have the proficiency to carry wide surveys for collecting
primary data, and might not also able to hire specialized market experts and
research agencies to collect primary data. Thus, in that case, they go for obtaining
secondary data that is cheaper to obtain.

MR is conducted in open marketplace where numerous variables act on research

settings.

Data Collection in Marketing Research is a detailed process in which a planned

search for all relevant data is made by researcher.

Types of Data

1. Primary Data- Primary data is the data which is collected first hand
specially for the purpose of study. It is collected for addressing the problem
 at hand. Thus, primary data is original data collected by researcher first
hand.
2. Secondary data- Secondary data is the data that have been already collected
by and readily available from other sources. Such data are cheaper and more
quickly obtainable than the primary data and also may be available when
primary data can not be obtained at all.

Data Collection Methods

1. Qualitative Research- Qualitative Research is generally undertaken to

develop an initial understanding of the problem. It is non statistical in nature.
It uses an inductive method, that is, data relevant to some topics are
collected and grouped into appropriate meaningful categories. The
explanations are emerged from the data itself. It is used in exploratory
research design and descriptive research also. Qualitative data comes into a
variety of forms like interview transcripts; documents, diaries and notes
made while observing. There are two main methods for collecting
Qualitative data
a. Direct Collection Method-When the data is collected directly, it
makes use of disguised method. Purpose of data collection is not
known. This method makes use of-
i. Focus Groups
ii. Depth Interview
iii. Case Study
b. Indirect Collection-Method
i. Projective Techniques
2. Quantitative Research- Quantitative Research quantifies the data and
generalizes the results from the sample to the population. In Quantitative
Research, data can be colleted by two methods
1. Survey Method
2. Observation Method

As the names suggest quantitative research produces numerical data whereas

qualitative research generates non numerical data. However, this is only a
superficial understanding of the terms. In the first chapter, while exploring the
types of research, we had hinted that when there is uncertainty or when the
problem is not clearly defined, we deploy exploratory research and use qualitative
studies for it. When there is little or no ambiguity and the business problem is
structured, we implement descriptive or casual research and use quantitative
techniques for it. Let us take the discussion further from here.

Qualitative Research

Focus

In a nutshell, qualitative research gives us vital insights in comprehending why do

consumers feel or behave in a manner they do. It helps in identifying and
perceiving the underlying opinions, behaviour patterns and motivations.
Qualitative research aids the formulation of hypothesis to be used for deeper
exploration or quantification. In a way, it adds richness to the information gathered
by quantitative research by understanding instead of measuring. To sum up, the
qualitative approach helps decipher the less rational and more emotional
perspective of the consumer’s decision making nature, i.e. how would I feel if I
were in the consumers’ shoes?

Usage

Qualitative studies assist in the following business situations:

 Market Study: Analyzing consumer interest in the company’s new idea in a

particular demographic.
 New Product Development: Understanding the actual need of the end user.
 Creative Development Research: Pertaining to branding; what should be said
and how should it be said.
 Diagnostic Studies: Understanding how is the company’s category or brand
doing as compared to the competitor’s offerings and image respectively.

Techniques

Qualitative research can be carried out by:

1. Focus Group Discussions: This is the most effective and preferred

technique for qualitative studies. Respondents, in a group of 5-8 people, are
made comfortable and asked general questions first. Gradually, the
conversation is shifted to the topic of research. It helps obtain initial
reactions to marketing programs or understand the consumers’ impressions
about a new product concept.
2. In Depth Interviews: Personal interviews are conducted instead of focus
groups in the following cases:
  Discussing sensitive, confidential or embarrassing topics (Example:
Women’s hygiene issues)
 Requirement of detailed probing (Example: Purchase psychology for
an automobile is best done with the respondent one on one)
 Situations where the respondent may get influenced by the group
response (Example: Opinion on TV censorship where social norms
prevail)
 Interviews with highly professional people with busy schedules
(Example: Understanding required from doctors on a new medical
topic )

Another term associated with qualitative research and worth mentioning here are
projective techniques. These are ways of extracting information from respondents
that capture the emotions in consumer behaviour. Often direct questions do not
bring out the hidden motivations as consumers are themselves not fully aware of
their reasons and naturally are not able to express themselves fully. Direct
questions may give sensible answers, but they may not necessarily be ‘real’
answers. For this reason, projective techniques such as the below ones are used:

 Brand Personalities: The strength of advertising can be tested by imagining

brands as persons or objects. For example, asking that if Sunsilk was a
person, what would he be like?
 Collages: Asking respondents to draw collages of a brand to help understand
what consumers think about symbols used for advertising the brand.
 Word Association: First word that comes to mind upon mentioning a
particular word. For example if the word Coke brings out the first mentioned
word as happiness, Coke is maintaining its strong brand image.

Quantitative Research

Focus

The aim of this method is to consume numerical data and present facts or uncover
patterns in the study. The aftermath of quantitative research is results that are
projectable because they are drawn statistically. Basically, while qualitative
research is subjective, the quantitative method is more objective. Another
characteristic of quantitative research is that it is drawn from a reasonably sized
and carefully selected sample which is representative of the target population. The
methods of choosing a proper sample are discussed in the previous chapter.
Typically, a terminology of 95% confidence interval is considered good while
deciding the sample sizes. This actually means that if the survey is reoccurred 100
times, 95 times the same response would be obtained.

Usage

Quantitative research is most widely used for determining cause effect relations.
For example, if the marketing budget is increased by 15%, how much is the
revenue expected to increase. If the strength between the dependent (revenue) and
independent (marketing budget) variable is strong, the test hypothesis holds true
and the company should invest more in its marketing. Thus a decisive stance can
be taken from the facts presented in this research.

Techniques

Data collection for quantitative studies is done by various kinds of surveys using
questionnaires. The survey can be done through various mediums such as face-to-
face, email, telephonic, online, etc. Designing questionnaires for a survey is a
detailed topic which will be covered in the next chapter. For now, we will explore
the methods for conducting a survey.

 Mail survey: Mail surveys are convenient and maintain anonymity of the
respondent. They are also relatively inexpensive. However the major
drawback is that feedback cannot be obtained from the respondent.
 Telephonic & Face-to-face survey: There is little scope of error in these
types of survey as the interviewer is available for assistance. However, while
guiding, the interviewer may sometimes influence the respondent leading to
biased answers.
 Online: Surveys carried out over the internet are gaining popularity these
days as they can reach a wide audience. The downside is that without
incentive, the respondent at the end may not be interested in taking up the
survey or answering all questions seriously.
 Hybrid: A fusion of techniques can be used to record better responses. A
commonly used hybrid method is Telephone-Mail-Telephone (TMT)
wherein respondents are instructed over the phone and then sent the survey
over mail to be filled at their convenience.

The choice of the above mediums depends on the budget, time and complexity. If
budget is a constraint, mail surveys can be used. Online surveys are instant and
hence should be deployed when there is a time crunch. When interaction is
required, personal or telephonic surveys must be utilized.
Concluding Remarks

We have seen in the sections above that in which situations the usage of
quantitative research is preferable over qualitative research and vice versa. Ideally,
if there are less budget constraints, we can use both types as they give variant
perspectives and complement one another. Sometimes both have to be used in
tandem as in case of Usage and Attitude Studies that we will see in the later
chapters. Finally, a qualitative research will generate a more narrative report with a
contingent account and direct quotations from the respondents. On the contrary, a
quantitative research will produce a statistical report with correlations,
significance, means, etc and hard facts.