Module 1

Chapter 2
Marketing Research, MKIS and Marketing Plan
Big Data
Big data relates to the huge amounts of structured and unstructured data
generated daily. It has the potential to change how marketers do business.
Big data enables marketers to gain a fuller comprehension of their customer
behaviour, preferences and demographics by gathering data from various
sources such as social media, customer feedback and website analytics.

Sources of big data:

1. Black box data: This is the data created through planes, helicopters etc.
The data includes group voices, microphone recording, plane
performance information etc.
2. Search engine data: We can get huge database from the search engines.
3. Social media data: This is information created by web based social
media websites like twitter, FB,Insta, google etc
4. Transactional data: This includes information gathered through online and
offline transactions during different point of sale. The data includes transaction
time, location, products purchased, product prices, payment methods,
discount/coupons used etc
5. Stock exchange data: Information from stock exchange like purchase and sale
of shares, debentures etc
Characteristics of big data:
1. Variety: Big data can be structured, unstructured, semi-structured etc. Data
will be collected from the databases and sheets in the past. But in these days
data will comes in array forms such as PDFs, emails,audios,photos,videos.
2. Veracity: This means how much the data is reliable. It has many ways to filter
and translate the data.This is the process of being able to handle and
manage data efficiently.
3. Value: This is the essential characteristics of big data. It is not the data that we
process or store. It is the valuable and reliable data that we store, process and
also analyze.
4. Velocity: This plays an important role compared to others. Velocity
creates the speed by which the data is created in real-time. It contains
the linking of incoming data sets speeds, rate of change. Big data
velocity deals with the speed at the data flows from sources like
application logs, business processes, networks and social media sites,
mobile devices etc.
5. Volume: The name bigdata is related to an enormous size. Bigdata is
a vast volume of data generated from many sources daily, such as
business processes, machines, social media platforms, networks,
human interactions. Facebook can generate approximately a billion
messages .
Marketing Plan
A marketing plan is a strategic roadmap that businesses use to
organize, execute and track their marketing strategy over a given
period. Marketing plans can include different marketing strategies for
various marketing teams across the company, all working toward the
same business goals.
Nature of marketing plan:
1. Formal and organised approach
2. Purposeful activity
3. Dynamic process
4. Marketing department act as a planner
5. Decision making process
6. Progressive system
Importance of Marketing Plan
• Overall direction
• Marketing goals
• Business envt
• Target and tactics
Contents of Marketing Plan:
1. Executive summary: This briefs the major facts, figures, assumptions and purpose
of the plan. The summary also includes the budgetary, requirements and
methods adopted to measure the company’s success. If the summary of the
business plan is effective, it motivates the readers to read the entire document.
2. SWOT analysis: It analyses the strength, weakness, opportunities and threats of a
company. It is also known as “market assessment”. Strength and weakness are
internal factors and opportunities and threats are considered as external factors.
The company does not have any control over these factors. They take place either
due to the competitive dynamics of the market or due to demographic, economic,
political, technical, social, legal or cultural factors.
3. Situation analysis: This examines all the aspects that may impact sales of a specific
company. It looks at both the macro-envt factors that affect many firms within the
envt and the micro-envt factors that specifically affect the firm. The purpose of
situation analysis is to indicate the org and product position of the company, as well
as overall survival of the business within the envt.
4. Marketing strategy: The company should always know what needs to be done and
the tools you need to accomplish them. The strategy that is set forth in the plan must
be strong enough to compel investors to put money into the company or project. In
order for the businesses to win market share and stay relevant they need to consider
many types of marketing strategies. Each marketing strategy can communicate to a a
target market the benefits and features of a product.
5. Financials/financial projections: Next focus is on the investment you would like to
make in your marketing. You must consider the following factors:
• What industry are you in?
• How much are your typical competitors spending?
• What do you want to achieve?
• What is your total yearly revenue?
6. Marketing control: The last component of the marketing plan explains the
technique of analyzing and controlling the outcomes of the marketing program.
It involves establishing performance standards, assessing actual performance
by comparing it with the standards and taking corrective actions if any.
Market Strategic Planning:
According to AMA” Market planning is the work of setting up objectives for
marketing activities and of determining and scheduling the steps necessary to
achieve such objectives”.
Elements of strategic marketing planning:
1. Objectives: The end results that the org intends to accomplish.
2. Mission: Is an org’s guiding force which takes into account the long term
vision that the org strives to achieve.
3. Strategies: These are steps that are planned to achieve success. These are
related to external envt since a change in envt results in change in strategy.
4. Policy: Guidelines that are set for the accomplishment of
organizational objectives is called policy.
5. Procedure: It is a sequential set of steps that need to be followed to
put a policy into action and to uphold an objective.
6. Programme: It is a plan of action that is deliberated to perform a
given task. It explains the resources to be used, steps to be taken, tasks
that to be assigned and the time needed for performing the task.
7. Schedule: The time for the completion of different activities is stated
by a schedule.
8. Budget: The statement of projected results in numerical form for a
fixed period of time in the near future is called budget.
Importance of strategic marketing planning
• Acts as a guide
• Integrates the org
• Forecasts
• Company product/services
• Pricing
A marketing planning process usually follows the following 8 steps:
1. To plan and organize the marketing planning effort
2. To define the premises of marketing planning
3. To formulate the objectives of the company
4. To create marketing policies and guidelines for action
5. To create implementation strategies for marketing
6. To control and coordinate the marketing planning
7. To plan marketing org.
8. To review marketing plan.
Marketing Research
According to Philip Kotler “Marketing Research is the systematic design, collection, analysis
and reporting of data relevant to a specific marketing situation facing an organization”
Objectives:
1. To analyse existing marketing problems and implement solutions
2. To analyse the competitors actions
3. To analyse the market share that could be captured by the firm
4. To analyse the purchasing power of the buyers of a particular region.
5. To analyse the customer’s needs, wants and demand.
6. To analyse the responses of consumers towards the usage of a particular product
7. To analyse various marketing issues
8. To assess firm’s sales and other promotional activities
9. To analyse the current distribution channels, pricing etc
10. To assist in designing and packaging of the products in a way it could be attractive to the
customers
Marketing Research Process
1. Identifying and defining research problem: Research problem should not be too broad or
too narrow. It should be clear and precise.
2. Literature survey: Next step is to analyse various literatures in the same issue. The main
purpose of this survey is to provide the researchers an idea about the area of knowledge
and highlights the issues that needs be researched.
3. Formulation of hypothesis: After conducting survey on the problem, next step is to
formulate hypothesis. To formulate hypothesis the prime task is to identify the potential
variables of the study after which relationship statement is formulated.
4. Preparing the research design: Conceptual framework within which research is conducted
is known as research design. It is the research design which explains the procedures and
methods in which a specific research should be conducted. It can be classified into:
a) Descriptive research design: Describes the characteristics of a phenomenon.
b) Exploratory research design: Is a methodology that investigates research questions that
have not previously been studied in depth.
c) Causal research design: It explains the cause and effect relationship of a research
problem.
5. Determining sample design: When the design of research is selected,
next step is to select sample design. Here it involves selection of
research samples. Deciding of samples involves many things such as
deciding sample frame, selecting suitable sample technique,
determining sample size etc.
6. Collecting the data: After finalizing the sample, next step is to collect
the data. Sources of data:
a) Primary data: This data is first hand information. The data collected
by the researcher himself for finding the solution of a particular
problem is known as primary data.eg. Survey, interview, observation
etc
b) Secondary data: When a researcher uses data which has already
used by other persons. Eg.Articles, journals,newspaper, books etc.
7. Execution of the project: Here the execution of marketing research takes place. Here the
research is systematically executed. The reliability of the collected data depends upon the
efficient and feasible execution of the research process.
8. Analysis of data: After collecting data and successfully executing fieldwork, the collected
data are analysed. It involves:
a) Editing: The data is corrected and makes ready for coding
b) Coding: The researcher converts data falling under different categories into symbols that
can be counted and tabulated.
c) Tabulation: Placing classified data in the form of tables.
9. Testing of hypothesis: A hypothesis is formulated, which is a tentative statement logically
drawn for acceptance/rejection. Hypothesis is tested using different techniques such as T
test, Z test,chi-square test, F test etc. and from that conclusion is drawn
10. Generalization and interpretation: On the basis of testing of hypothesis, interpretation is
formulated.
11. Preparation of report or thesis: Final step is preparing report based on alla the collected
data and conclusion arrived.It includes detailed description about research design, sample
design, objectives, scope, findings, suggestions and conclusion. Since research report is useful
for current as well as for long term, utmost care should be taken while preparing the report.
Importance of marketing research
• Decision making
• Control technique
• Large scale production
• Problem solving
• Helps to deal with complex market
• Marketing strategy
• Management planning
Techniques of marketing research
• Survey research: It is a descriptive technique that is conducted to collect
the information from a sample of individuals drawn from a large
population.
• Observation method: It involves systematic recording and assessment of
behavioual forms of a particular individual, object or event so as to
collect the desired information. The observation can be direct, indirect,
structured and unstructured.
• Experimentation: Primary data is collected through experimentation.
This is carried out to study the effect on dependent variable by causing
the change in independent variable.
• Consumer panels: Here a panel of study units such as households, retail
stores, organisations etc are formed from which data is collected
periodically. This helps to know the changes in behaviour, attitudes,
perception etc over time.
• Content Analysis: The process of inspecting, studying the content of different
documentary materials such as magazines, books, newspapers etc which can
be printed or spoken is known as content analysis. The analysis of the
research can be simple or can also be sensitive which need to be conducted
carefully.
• Focus groups: Is a method in which group of respondents are selected so as to
collect desired information through a formal interactive session. In this the
respondent response to the questions of a moderator to discuss about the
given topic or research problem.
• Warranty cards: They are used by dealers to get the feedback of the products
from the consumers. These cards contains various questions regarding the
performance of the product. Customers are requested to fill and mail it back.
It helps in new product development.
• Pantry audit: This method is used to evaluate the total quantity of product
that has been consumed at the consumer level. Here the investigator collects
data related to any product of different prices, types and quantities of
products consumed by the consumer.
• Distributor or Store audits: Both manufacturers and distributors
performs this audit. The retail stores are audited by distributors
through their salesmen. Data collected is beneficial in knowing the
market share, market size, seasonal purchasing pattern of the
consumers etc. Here data is collected via observation and not by
interview method.
• Field trials: Here researcher exercises practical approach in which the
product is placed in some of the selected stores for selling. This is
done to check the customers response.
Marketing Information System(MKIS)
MKIS is an integration of information, processing and analysis of information, tools
and techniques used and specialists who evaluate the information which is further
used by marketers to carry out their planning, analysis and controlling process.
Characteristics of MKIS:
1. Inter-related components: It consists of number of components inter-related
such as manpower, machinery and processes. It is designed and delivered by
using hardware, software and IT.
2. Processing : MKIS involves collection, processing, analysis, storage, retrieval
and dissemination of data for controlling and taking marketing decisions. It
helps in preparation of different types of reports.
3. Timeliness: MKIS helps in providing accurate and timely information as and
when required.
4. Consistency: MKIS offers information that is consistent since common
description, hypothesis and time framework form the basis of the data.
5. Accessibility: MKIS offers ease of accessibility. Not only the
information is safe but it can also be readily accessed by authorized
individuals.
6. Future-oriented: MKIS is focused towards the future as it helps in
foreseeing as well as resolving the problem areas.
7. Use of computers and statistical tools: Computers are used for the
operations of marketing information system. Solutions to problems are
offered by analysts who use several quantitative and statistical tools for
decision making.
8. Accuracy: MKIS offers information that is complete, correct and
reliable. However, future predictions are less precise than the present
and past information.
Requirements of a good MKIS
1. MKIS should be unified and centralized
2. MKIS should be a decision support system
3. MKIS should be prompt and accurate
4. MKIS should be cost-effective
5. MKIS should be selective
6. MKIS should be future oriented
7. MKIS should use new techniques
8. MKIS should be flexible
9. MKIS should provide latest information
Importance of MKIS:
10. Recognises customer’s needs and wants
11. Evaluates buyer’s behaviour
12. Attracts potential customers
13. Evaluates customers needs
14. Records communication between firms and customers
Components of MKIS
1. Internal marketing information: The internal records is the fundamental
information system used by the marketing managers. These records
include detailed reports on sales, orders, inventory, receivables etc.
2. Marketing research: It is the process of designing, collecting, analysing
and reporting of data. It is a continuous process.
3. Analysis and processing of information: In the MKIS there must be a
method of interpreting the information so as to direct right decision
making. Some of the methods of analysing the information:
• Linear programming methods
• ANOVA models
• Discounted cash flow
• Regression and correlation models
• Sensitivity analysis
4. Marketing Intelligence System: It involves systematic collection of
information about the company’s competitors and also the major
developments in the marketing envt. It provides information to the
managers about the changes in the envt. Information is received from
census data, news, reports, newspapers, trade publications etc.