Marketing Research Process CH 2

MARKETING RESEARCH
CH-2
MARKETING RESEARCH
PROCESS
Structure -
>Backdrop
>What is a Marketing Research Process or
Procedure?
> Characteristics of Sound Marketing Research
> Marketing Research Plan
BACKDROP
• Marketing research is not a pell-mell. It is logical in
its approach. It cannot be abruptly conducted. It has
a definite sequence which involves a series of
sequential steps witch together can be called as a
marketing research process or procedure. This
chapter plans discuss the meaning of process steps
involved in case of different types of research
projects. It also accounts for the essentials of good
research plan and chapter ends with Chapter Based
Questions.
WHAT IS A MARKETING RESEARCH
PROCESS OR PROCEDURE?
• Any process is a sequence of series of
congruous activities in completing a task
designed to achieve certain predetermined
objectives. Marketing research is also a
process. The research procedure or process
consists of distinct activities-a sequence of
several steps. These steps are closely
interlinked and interdependent.
Cont….
• They are so logical that success of one
depends on the prior stage. Any missing of
this logical link is a costly mistake telling very
badly on the final outcome. That is why, each
step should have careful and meticulous
placing. Most of the experts are happy with
the seven step sequence, though some go up
to twelve to fourteen steps.
Cont…
• These seven steps involved are: 1. Defining
the problem. 2. Considering the possible
solutions. 3. Developing a research design. 4.
Collection of marketing data. 5. Analysis and
interpretation of data. 6. Preparation and
presentation of research report and 7. Follow-
up of recommendations.
1. DEFINING THE RESEARCH
PROBLEM
• Problem formulation or defining is the starting
point. Defining a research problem involves
three sub-steps namely, (i) discovering the
managerial problem, (ii) refining and
redefining, and (iii) translating the managerial
problem in to research problem.
Cont…..
• The dynamic world of business creates
many problems for the firm where all
cannot be attended to priorities are to be
worked out as to which of these
problems are more pressing and urgent
requiring attention. This warrants
sensing of problems well in advance.
Cont….
• Refining and Redefining the Problem:
Discovering a managerial problem is one
thing; refining, clarifying, crystallizing
and defining is another. Successful
tacking of problems warrants clear-cut
definition. It is really hard to define
managerial problem as it is more
systematic than cause-oriented.
Cont…..
• The researcher is to go to the very roots of the
problem to establish cause and effect
relations. Like physician, he is to diagnose the
patient. He moves from general ambiguous,
amorphous nature of problem to more
specific phases and dimension of it. For
instance, the problem may be “falling sales”
indicating only the symptoms of fall.
Cont….
• However, causes of fall in the sales may be
discouraging market conditions-unsatisfactory
sales efforts-unsatisfactory packaging-wrong
pricing-cut throat competition and so on. The
researcher is to go by cause and not by the
symptom.
Cont….
• Translating Managerial Problem into Research
Problem: All managerial problems are not
research problems. Management problems are
symptomatic while research problems are cause
oriented. A research problem is one in respect of
which the data is collected or observed to find a
solution. Thus, a problem of management may
be “falling sales” and the “Ways to arrest such
• fall”.
Cont….
• Thus, a problem of management may be “falling
sales” and the “Ways to arrest such
• fall”. It can be research problem if presented to
establish cause and effect relations. It can it can
such fall?” This be “why sales are falling?” “What
remedies arrest such fall?” This indicates that
unless researcher converts the managerial problem
into research problem, he would be off the track.
• and the research studies a futile exercise.
Cont…..
• Translation of managerial problem into a
research problem involves the in-depth study
of company’s strength and weaknesses
namely managerial, financial, production,
marketing and the business environment
under which he is working and the future
trends calling for envisioning the future as the
solutions are for the future and not for the
dead past.
.
2. CONSIDERING THE POSSIBLE
SOLUTIONS
• Once the problem is defined, the next step is to
feel it or to have minimum aquaintance. It
is the tentative probing done in around the
problem so defined so as to size it up. Such a
probing involves informal investigation to
explain the phenomenon. This exploratory or
preliminary investigation offers the possible
solutions to the problem or provides
hypothesis.
Cont…
• Research hypothesis is a statement of
tentative supposition or a possible solution to
a problem based on marketing experience or
judgment and or a documentary evidence.
Thus, the hypothesis may be “falling sales are
on account of discouraging business
conditions and acute competition”. This
hypothesis so developed can be tested and
the findings may be proved or disproved.
Cont……..
• Formulating the hypothesis is indispensible in
most research studies because, it ‘serves as a
frame-work for the future data collection,
analysis and interpretation. Hypothesis
indicates as to what factors are more
important, thereby restricting the extent of
investigation and analysis. It gives a definite
route, vision and direction to research work.
Cont……
• Formulating the hypothesis is indispensible in
most research studies because, it ‘serves as a
frame-work for the future data collection,
analysis and interpretation. Hypothesis
indicates as to what factors are more
important, thereby restricting the extent of
investigation and analysis.It gives a definite
route, vision and direction to research work.
3. DEVELOPING A RESEARCH DESIGN
• A research design is the master-plan or a

model for the conduct of formal investigation.
It is preconceived scheme or blue-print
followed in completing the research studies so
undertaken. It is one that provides for a
frame-work within which the researcher is to
work.
Cont……
• The research design or plan keeps the study right on
the track making it to keep pace with the problem
requirements and makes possible best result with
minimum of resources and possible procedures. It
goes without saying that such a research design is
structured only after defining the problem. The
formation of research design is dependent on the
nature of problem so identified. Development of a
sound research design is comprising of seven sub-
steps namely.
Cont…..
• (a) Defining the objectives of the investigation.
• (b) Planning and determining the scope of
investigation.
• (c) Developing alternative methods for
collection, analysis and interpretation of data.
• (d) Estimating the time required.
• (e) Preparing the personnel and administrative
set-up.
Cont….
• (/) Preparing the budget.

• (g) Formulating the research proposal and
getting it okayed.
4. COLLECTION OF MARKETING DATA
• Once the research design is ready, finalized
and approved, the researcher is to embark
upon the vital task of data collection. A
comprehensive research study requires both
primary and secondary data. ‘Primary’ data is
one which is originally collected by the
researchers based on sampling.
Cont….
• Collection of primary data is time and money
consuming affair. It may be collected by
survey, observation or experimentation or any
possible combination suitable to the firm and
the researcher. It is an unpublished, but latest
and relevant to the problem and most
accurate. The sources may be consumers,
salesmen, sales-records and so on.
Cont…
• On the other hand, ‘Secondary’
• data is both published and unpublished
information which is readily available with the
external parties. Such information may not be
latest but unbiased and, therefore, accurate
and reliable. It costs less in terms of time and
money.
Cont…..
• The sources of secondary data are: published
surveys of markets-government publications-
Government reports-publications of research
organization publications of trade associations
and chambers of commerce-general and
special libraries-internal sources such as
purchase and sales records reports and other
records of the firm.
.
5. DATA ANALYSIS AND INTERPRETATION
• Data analysis and interpretation are
possible only when data is processed. Data
processing implies data reduction namely,
editing, tabulating, analysis and
interpretation. Editing is a kind of
verification as to whether the data
collected as per the instructions given so
that the answers are consistent and
logical. Editing facilitates tabulation.
Cont……
• Tabulation implies data arrangement as
to classes and weightages. Coding is a
must when data is fed to electronic data
processing units. In analysis of data, the
researcher examines the tables so
designed, compares them, computes,
averages and percentages.
Cont…..
• He applies refined technical and statistical
techniques of correlation and regression to
understand and explain the data behavior.
Based on the understanding reached by the
researcher, it becomes easier to arrive at
definite conclusions that either prove or
disprove the hypothesis built earlier.
Cont….
• Thus, interpretation is a minute and
meticulous work involving the use of
mental faculties of sound judgment and
clear vision to reach a cut-off point.
6. PREPARING AND PRESENTING THE
RESEARCH REPORT
• The researcher is to present his findings to the
user in the form of a report. The research
findings remain futile in case they are not
communicated effectively, clearly and
accurately to the decision makers. There are
cases where marketing research findings are
rendered a total flop because of bad
reporting.
Cont…..
• That is, every researcher should be extra
careful to present his findings in the form,
manner and the language tailored to the tastes
of the users. The style of presenting the stuff
must be simple and lucid with a sting of
stimulation and touch of interest. Latest
visuals and color combinations such as charts,
diagrams, graphs, photographs and the like are
to be used. The findings and the
recommendations must be clear, precise, and
feasible.
Cont…..
• A typical research report starts with a title
page, followed by the table contents, outline
of research, statement of marketing problem,
conversion of it into research problem,
objectives of the study plan of the study, data
collection, analysis, assumptions, limitations,
findings are recommendations. It ends with
the appendices, a copy of questionnaire,
glossary of terms, tables, maps, charts,
photographs and bibliography.
7. FOLLOW-UP OF RECOMMENDATIONS
• Even an excellent research report loses its
value when it is kept in cold storage and
nothing is done about it as to its
implementation. Research report is the basis
for executive action to solve the problems
encountered. The researcher gets satisfaction
and the user rich returns for the investments
made in research only when the research
findings are acted upon.
Cont….
• It is true that thefirm has approved the
research plan, invested its funds, yet the
findings or research may not be implemented.
The possible reasons for such negative action
are:
(a) the user of the research is not convinced of
the research findings,
(b) insufficient resources at user’s command to
implement,
Cont….
(e) the problem has lost its significance and

therefore, the recommendations are irrelevant
and useless,
(d) there are other problems which are more
pressing than the one researched.
STEP ONE: DEFINING THE RESEARCH PROBLEM
1. Discovering the Managerial Problem

2. Refining and Redefining the Problem
3. Translating Managerial Problem into
Research Problem
STEP TWO: CONSIDERING THE POSSIBLE
SOLUTIONS
1. Preliminary Investigation
2. Formulating the Hypothesis/Hypotheses
STEP THREE: DEVELOPING RESEARCH DESIGN
1. Define the Research objectives

2. Plan and determine the scope of
investigation
3. Develop alternative methods for collection
of primary data
4. Define sampling unit, sample size procedure
and sampling method
STEP THREE: DEVELOPING RESEARCH DESIGN
5. Develop alternative methods of analysis

and interpretation.
6. Estimate the time and personnel needed.
7. Prepare the budget.
8. Formulate research proposal and get it
okayed.
STEP FOUR: COLLECTION OF MARKETING DATA
• 1. Collect by suitable method primary data

• 2. Collect secondary data by taping all the
sources
STEP FIVE: DATA ANALYSIS AND
INTERPRETATION
1. Edit the data collected

2. Code the data collected
3. Tabulate the data
4. Analyse the data drawing inferences
5. Interpret the data by drawing inference
6. Draw summary and conclusions
7. Recommend and suggest improvement in
the existing situation
STEP SIX: PREPARE AND PRESENT THE REPORT
1. Arrange the research results as per format

match.
2. Get report typed and bound.
3. Present the copies to the concerned
authorities.
STEP SEVEN: FOLLOW UP OF
RECOMMENDATIONS
1. Do not sleep over the matter after
presentation.
2. Keep in touch with the authorities about
action taken.
3. Convince the Higher Authorities of its use and
benefits.
4. Translate the findings into marketing
programmes.
5. Evaluate the programme results.
•Thank You

Marketing Research Process CH 2

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MARKETING RESEARCH

• A research design is the master-plan or a

• (/) Preparing the budget.

(e) the problem has lost its significance and

1. Discovering the Managerial Problem

1. Define the Research objectives

5. Develop alternative methods of analysis

• 1. Collect by suitable method primary data

1. Edit the data collected

1. Arrange the research results as per format

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