Description
With some good examples
Table of Contents:
Sr. No. 1. 2. 3. 4. 5. 6. 7.
Topics Introduction, Definition, Meaning and Scope Role of Marketing Research Steps in Marketing Research Project Types of Marketing Research Techniques Reasons behind Poor or Inadequate Marketing Research Case Analysis – After Shave Lotion Bibliography and Websites visited
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Introduction to Marketing Research:
Overview:
Marketing Research is a process of investigating and answering the questions about consumer behavior. The key role of the marketing research function in an organization is to provide reliable evidence which will help managers take better decisions. Marketing Research is analogous with listening. Conventional theory of selling is about the salesman talking. But, real marketing begins when one listens to one’s customers. Before providing the answers one must listen to the questions. The marketer is often faced with a degree of uncertainty and can never be quite certain that even the best laid plans will achieve their objectives in exactly the manner expected. Uncertainty is normally greater in those markets which change rapidly. Unfortunately, many markets are experiencing change frequently in the recent years. This is where the Marketer finds it imperative to take a moment to study the market and do the research well before planning to capture the market by introducing a change in the market by way of launching new goods and services or by making certain modifications in the existing products and services.
Definition:
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 specifies the information required to address these issues, designs the method for collecting information, manages and implements the data collection process, analyzes the results, and communicates the findings and their implications." Marketing research is the systematic gathering, recording, and analysis of data about issues relating to marketing products and services. The goal of marketing research is to identify and assess how changing elements of the marketing mix impacts customer behavior. The term is commonly interchanged with market research; however, expert practitioners may wish to draw a distinction, in that market research is concerned specifically with markets, while marketing research is concerned specifically about marketing processes.
Meaning and Scope:
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 involves a variety of tasks specification of the information required to address issues design of the method for collecting information management and implementation of the data collection process analysis of the results communication of the findings and their implication
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Role of Marketing Research:
? The task of Marketing Research is to provide management with relevant, accurate, reliable, valid, and current information. Competitive marketing environment and the ever-increasing costs attributed to poor decision making require that marketing research provide sound information. Sound decisions are not based on gut feeling, intuition, or even pure judgment. Marketing managers make numerous strategic and tactical decisions in the process of identifying and satisfying customer needs. They make decisions about potential opportunities, target market selection, market segmentation, planning and implementing marketing programs, marketing performance, and control. These decisions are complicated by interactions between the controllable marketing variables of product, pricing, promotion, and distribution. Further complications are added by uncontrollable environmental factors such as general economic conditions, technology, public policies and laws, political environment, competition, and social and cultural changes. Another factor in this mix is the complexity of consumers. Marketing research helps the marketing manager link the marketing variables with the environment and the consumers. It helps remove some of the uncertainty by providing relevant information about the marketing variables, environment, and consumers. In the absence of relevant information, consumers' response to marketing programs cannot be predicted reliably or accurately. Ongoing marketing research programs provide information on controllable and non-controllable factors and consumers; this information enhances the effectiveness of decisions made by marketing managers. Traditionally, marketing researchers were responsible for providing the relevant information and marketing decisions were made by the managers. However, the roles are changing and marketing researchers are becoming more involved in decision making, whereas marketing managers are becoming more involved with research. The role of marketing research in managerial decision making is explained further using the framework of the "DECIDE" model: The DECIDE model conceptualizes managerial decision making as a series of six steps. The decision process begins by precisely defining the problem or opportunity, along with the objectives and constraints. Next, the possible decision factors that make up the alternative courses of action (controllable factors) and uncertainties (uncontrollable factors) are enumerated. Then, relevant information on the alternatives and possible outcomes is collected. The next step is to identify and select the best alternative based on chosen criteria or measures of success. Then a detailed plan to develop and implement the alternative selected is developed and put into effect. Last, the outcome of the decision and the decision process itself are evaluated. 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 Page | 3
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objectives cautiously and clearly, and the need to avoid conducting research to support decisions already made.
Steps in a Marketing Research Project:
Marketing research process is a set of eight steps which defines the tasks to be accomplished in conducting a marketing research study. The Marketing research process includes the systematic identification, collection, analysis and distribution of information for the purpose of knowledge development and decision making. The reasons and times at which your company or organization might consider performing marketing research varies, but the general purpose of gaining intelligence for decision making remains constant throughout. Whether you are conducting ad-hoc marketing research projects, creating a new marketing research program or revising an existing one, what are the key steps in the process? While there are dozens of little steps along the way, each of those steps fits into one of the eight major steps of the Marketing Research process. They are:
1. Problem Definition/Opportunity Identification and Formulation:
The first step in any marketing research project is to define the problem. In defining the problem, the researcher should take into account the purpose of the study, the relevant background information, what information is needed, and how it will be used in decision making. Problem definition involves discussion with the decision makers, interviews with industry experts, analysis of secondary data, and, perhaps, some qualitative research, such as focus groups. Once the problem has been precisely defined, the research can be designed and conducted properly. Also, the decision problem faced by management can be translated into a market research problem in the form of questions that define the information that is required to make the decision and how this information can be obtained. Thus, the decision problem is translated into a research problem. For example, a decision problem may be whether to launch a new product. The corresponding research problem might be to assess whether the market would accept the new product. The objective of the research should be defined clearly. To ensure that the true decision problem is addressed, it is useful for the researcher to outline possible scenarios of the research results and then for the decision maker to formulate plans of action under each scenario. The use of such scenarios can ensure that the purpose of the research is agreed upon before it commences.
2. Analyzing the Situation:
Before developing any given marketing strategy it is important to conduct some form of analysis. This should form an essential part of any business or marketing plan and should be reviewed over time to ensure that it is kept current. Many of my clients often ask me what factors are important when doing this. In order to analyze a situation, the following elements are worth considering and they include:
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Product Situation:
What is my current product? You may want to break this definition up into parts such as the core product and any secondary or supporting services or products that also make up what you sell. It is important to observe this in terms of its different parts in order to be able to relate this back to core client needs. Feel free to also discuss here which of your client’s needs your product is meeting.
Competitive situation:
Analyze your main competitors – who are they what are they up to – how do they compare – feature/ benefit analysis. What are their competitive advantages?
Distribution Situation:
Review your distribution Situation – how are you getting your product to market? Do you need to go through distributors or other intermediaries?
Environmental factor:
What external and internal environmental factors are there that needs to be taken into account. This can include economic or sociological factors that impact on your performance.
Opportunity and Issue analysis:
Which requires conduction of SWOT analysis (Strengths, Weaknesses, Opportunity and Threats) Things to write down here are what current opportunities that are available in the market, the main threats that business is facing and may face in the future, the strengths that the business can rely on and any weaknesses that may effect the business performance.
3. Gathering Problem-Specific Data:
It is important to gather the data or information related to the problem beforehand so that it helps the manager to plan research design in line with the current state of the problem. Data can be of two types:
Secondary Data:
Before going through the time and expense of collecting primary data, one should check for secondary data that previously may have been collected for other purposes but that can be used in the immediate study. Secondary data may be internal to the firm, such as sales invoices and warranty cards, or may be external to the firm such as published data or commercially available data. The government census is a valuable source of secondary data. Secondary data has the advantage of saving time and reducing data gathering costs. The disadvantages are that the data may not fit the problem perfectly and that the accuracy may be more difficult to verify for secondary data than for primary data. Some secondary data is republished by organizations other than the original source. Because errors can occur and important explanations may be missing in republished data, one should obtain secondary data directly from its source. One also should consider who the source is and whether the results may be biased. There are several criteria that one should use to evaluate secondary data. ? Whether the data is useful in the research study. ? How current the data is and whether it applies to time period of interest. ? Errors and accuracy - whether the data is dependable and can be verified. Page | 5
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Presence of bias in the data. Specifications and methodologies used, including data collection method, response rate, quality and analysis of the data, sample size and sampling technique, and questionnaire design. Objective of the original data collection. Nature of the data, including definition of variables, units of measure, categories used, and relationships examined.
Primary Data:
Often, secondary data must be supplemented by primary data originated specifically for the study at hand. Some common types of primary data are: ? Demographic and socioeconomic characteristics ? Psychological and lifestyle characteristics ? Attitudes and opinions ? Awareness and knowledge - for example, brand awareness ? Intentions - for example, purchase intentions. While useful, intentions are not a reliable indication of actual future behavior. ? Motivation - a person's motives are more stable than his/her behavior, so motive is a better predictor of future behavior than is past behavior. Primary data can be obtained by communication or by observation. Communication involves questioning respondents either verbally or in writing. This method is versatile, since one needs only to ask for the information; however, the response may not be accurate. Communication usually is quicker and cheaper than observation. Observation involves the recording of actions and is performed by either a person or some mechanical or electronic device. Observation is less versatile than communication since some attributes of a person may not be readily observable, such as attitudes, awareness, knowledge, intentions, and motivation. Observation also might take longer since observers may have to wait for appropriate events to occur, though observation using scanner data might be quicker and more cost effective. Observation typically is more accurate than communication Personal interviews have an interviewer bias that mail-in questionnaires do not have. For example, in a personal interview the respondent's perception of the interviewer may affect the responses.
4. Planning the research design:
To get answers to the issues raised in Stage 2 the researcher lays out a design for obtaining the information. Of course many marketers do not produce a formal design plan when conducting research. For example, a small retailer who asks a returning customer how she liked the product she purchased the previous week is engaged in research and doing so without the need to produce a formal plan. But for marketers looking to undertake formal research, a written research design plan is important. The first part of the research design is to decide on the type of research that will work best for the purpose (i.e., explain, predict, monitor, discover, hypothesis test) and information that is sought. Marketing research methods can be of following types:
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Based on Questioning:
Qualitative marketing research - generally used for exploratory purposes - small number of respondents - not generalizable to the whole population - statistical significance and confidence not calculated - examples include focus groups, in-depth interviews, and projective techniques Quantitative marketing research - generally used to draw conclusions - tests a specific hypothesis - uses random sampling techniques so as to infer from the sample to the population - involves a large number of respondents - examples include surveys and questionnaires. Techniques include choice modeling, maximum difference preference scaling, and covariance analysis.
Based on Observations:
Ethnographic studies - by nature qualitative, the researcher observes social phenomena in their natural setting observations can occur cross-sectionally (observations made at one time) or as per longitudes (observations occur over several time-periods) - examples include product-use analysis and computer cookie traces. See also Ethnography and Observational techniques. Experimental techniques - by nature quantitative, the researcher creates a quasi-artificial environment to try to control spurious factors, and then manipulates at least one of the variables - examples include purchase laboratories and test markets Researchers often use more than one research design. They may start with secondary research to get background information, and then conduct a focus group (qualitative research design) to explore the issues. Finally they might do a full nation-wide survey (quantitative research design) in order to devise specific recommendations for the client.
5. Sampling:
When specifying the sample procedures, the sample or subset of the larger population to be drawn for interviewing must be determined. ? The population from which sample is drawn or interest must be defined. ? The researcher must determine if the sample for this study should be represent the whole population ? If yes then probability sample is called 1. Probability sample: Every element in the population has a known nonzero probability of being selected. Scientific rules are used to represent the population. a. A Random sample: Every population has an equal chance of being selected as part of the sample. b. It is often selected by using random numbers form a table found in statistics books.
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2. Non probability sample: It is sample in which little or no attempt is made to get a representative cross section of the population. a. A Convenience sample: Here researcher uses sample that are readily accessible. b. Non probability samples are frequently used in market research, as they are less costly then probability samples. ? Types of Errors in sampling: i. Measurement Error - It occurs when the information desired by the researcher differ from the information provided by the measurement process. ii. Sampling Error - It occurs when sample is not representative of the target population in certain respects. iii. Non-Response Error - It occurs when certain members of sample refuse to respond as a result it will affect the whole sample. E.g. - Refuse to fill mail surveys, unattended the phones. iv. Frame Error - It arises if the sample drawn from a population differs from the target population. v. Random Error - It occurs when selected sample does not represent the overall population
Data Collection
Marketing research filed services does most data collection. A. Field Service firms specialize in interviewing respondents on a sub contract basis. B. Field service firms also conduct focus groups, mall intercepts, retail audits, and other data – collection services.
6. Data Analysis And Interpretation
Sample
Population
Key Issues
Confidence Intervals
Validity
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Sample: A sample is a smaller group selected to represent the population. ? The key here is to ensure that sample represent the larger population. Page | 8
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? In random sampling each member of population must have equal chance of being in sample. ? Research results are not exact and it vary from true population Confidence Interval: It is range on either side of an estimate that is likely to contain the true population value. ? Here the researcher asses the accuracy of their sample estimates by using confidence intervals. Validity: It is concerns the extents to which data measures what it is intended to measure. ? It is very important to construct questions carefully to ensure validity in subjects responses Population: It is the total group of people that are interested.
Research results are not exact. Some time due to poor interpretation result can destroy the whole research process. Problem can also arise if the researcher does not understand the management problem. So researcher and manager must closely work together before any problem arises. ? Three types of Analysis: 1) One-way Frequency-It i very simple. Here the respondent answered question a certain ways. This method provides a general picture of study’s results. 2) Cross Tabulations: It relates the responses to one question to responses to one or more other questions. 3) Statistical Analysis: This is most sophisticated type, here variety of techniques are used to examine the data
7. Prepare and Present the Report
? Here the researcher must communicate the conclusions and recommendations to management. ? Usually both oral and written reports are required.
8. Follow Up
? Finally results of the research provide some results that are actionable, some showing failures of the strategy to impact the market. ? Whatever the results, these need to be communicated to the managers. ? In some situations it may be best not to conduct market research. ? When decision –making information already exists. ? When the cost of conducting research are greater than the benefits. ? When you learn from the success or failure of the others.
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Types of Marketing Research Techniques:
Marketing research techniques come in many forms, including: 1. Ad Tracking - Periodic or continuous in-market research to monitor a brand’s performance using measures such as brand awareness, brand preference, and product usage. 2. Advertising Research - Used to predict copy testing or track the efficacy of advertisements for any medium, measured by the ad’s ability to get attention (measured with Attention Tracking), communicate the message, build the brand’s image, and motivate the consumer to purchase the product or service. 3. Brand equity research - How favorably do consumers view the brand? 4. Brand association research - What do consumers associate with the brand? 5. Brand Attribute research - What are the key traits that describe the brand promise? 6. Brand name testing - What do consumers feel about the names of the products? 7. Commercial eye tracking research - Examine advertisements, package designs, websites, etc. by analyzing visual behavior of the consumer. 8. Concept testing - To test the acceptance of a concept by target consumers. 9. Cool hunting - To make observations and predictions in changes of new or existing cultural trends in areas such as fashion, music, films, television, youth culture and lifestyle. 10. Buyer decision processes research - To determine what motivates people to buy and what decisionmaking process they use. 11. Copy Testing – Predicts in-market performance of an ad before it airs by analyzing audience levels of attention, brand linkage, motivation, entertainment, and communication, as well as breaking down the ad’s flow of attention and flow of emotion. 12. Customer satisfaction research - Quantitative or qualitative studies that yields an understanding of a customer's of satisfaction with a transaction. 13. Demand estimation - To determine the approximate level of demand for the product. 14. Distribution channel audits - To assess distributors’ and retailers’ attitudes toward a product, brand, or company. 15. Internet strategic intelligence - Searching for customer opinions in the Internet: chats, forums, web pages, blogs... where people express freely about their experiences with products, becoming strong opinion formers. 16. Marketing effectiveness and analytics - Building models and measuring results to determine the effectiveness of individual marketing activities. 17. Mystery consumer or mystery shopping - An employee or representative of the market research firm anonymously contacts a salesperson and indicates he or she is shopping for a product. The shopper then records the entire experience. This method is often used for quality control or for researching competitors' products. 18. Positioning research - How does the target market see the brand relative to competitors? What does the brand stand for? 19. Price elasticity testing - To determine how sensitive customers are to price changes.
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20. Sales forecasting - To determine the expected level of sales given the level of demand. With respect to other factors like Advertising expenditure, sales promotion etc. 21. Segmentation research - To determine the demographic, psychographic, and behavioral characteristics of potential buyers. 22. Online panel - A group of individual who accepted to respond to marketing research online. 23. Store audit - To measure the sales of a product or product line at a statistically selected store sample in order to determine market share, or to determine whether a retail store provides adequate service. 24. Test marketing - A small-scale product launch used to determine the likely acceptance of the product when it is introduced into a wider market. 25. Viral Marketing Research - Refers to marketing research designed to estimate the probability that specific communications will be transmitted throughout an individual's Social Network. Estimates of Social Networking Potential (SNP) are combined with estimates of selling effectiveness to estimate ROI on specific combinations of messages and media.
The 2 most common Marketing Research methods employed are: 1. Overseas Marketing Research (OMR):
? ? ? OMR basically helps to identify Market Potential for the given product in a region which is outside domestic area. With OMR, One can understand about prevailing Economic and Political Environment in the subject region, which influences the Marketing Strategy and Plans to be adapted suitably. OMR may also help to understand Consumers behavior, their Tastes / preferences / likes / dislikes / beliefs / customs etc., which inurn will help the manufacturer OR trader to develop or trade suitable product. Apart from pt no.3, it is extremely important to understand present Competition Scenario in the subject region. We all understand how important it is to Understand Government Rules and Regulation in the subject region / country, as this will decide the Business prospects at the very first stage. OMR may also give some guidelines as regards selection of effective and efficient Distribution channel.
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For example:
Despite the fact that many research companies claim to "be in" Asia, few truly are. Some agencies thus try to subcontract locally; market by market. However regional co-ordination aspects can suffer; given language barriers, time-zone differences, cultural differences, insufficient market knowledge and the myriad of communications problems that go with managing multiple suppliers in foreign markets. Alternatively, reputable research agencies look for a consistent supplier who can deliver for them on a regional basis. The "BIG GUYS" are here, but savvy managers of marketing research companies know that their competitive position can be hurt by trying to subcontract business to them. With increasing frequency, research agencies looking for a proactive supplier who can deliver timely, quality data, in a cost effective manner are turning to The Research Pacific Group! Page | 11
2. Test Marketing:
Test marketing is a technique used during product development to determine how people respond to a product. It can be used at many different phases of development to see whether or not the public will buy the product, how the product may need to be adjusted to make it appealing to the public, and how members of the public interact with the product. Using information from test marketing, product developers can refine products to make them more commercially viable before embarking on a widespread project launch. One of the simplest forms of test marketing is online test marketing, in which a manufacturer produces a survey to determine whether or not members of the public even want a product. The survey can also provide useful data about how much people would be willing to pay for a product, whether or not people would travel to obtain it, what kind of features they would look for, and so forth. This form of test marketing can also be done through mail and phone surveys sent to a targeted area of the population. Once a product is in development, companies can embark on test marketing which involves bringing actual examples of the public. They expose the product to a selected area of the public to see how they respond. For example, a car manufacturer might bring prototypes to a few major cities viewed as trendsetters to see how people respond and to give people a chance to interact with the car. Or, a manufacturer of potato chips might send out a new flavor to a select group of supermarkets, asking the supermarkets to put it out on the shelf like a regular product and to monitor consumer response. Companies use test marketing to gather information about public response to their products. This information may be used to totally rework or a product, or to add features. The result of test marketing also informs the ad campaign, ensuring that ads are presented in a way which represents the product, hits the target audience, and makes people interested in purchasing the product. Marketing tests are critical, and companies which fail to perform them can run into trouble when they start a major advertising campaign and product introduction. Entrepreneurs who are interested in selling something entirely new are often encouraged to engage in test marketing before they give up their day jobs or savings. Test marketing allows them to explore the idea of introducing the product to the market. It may turn out that members of the public don't respond, making investment in actual product development unwise.
Reasons behind Poor or Inadequate Marketing Research:
Research and planning are vital to ensure that your business idea is viable and your pricing is both competitive in your market place and provides an adequate return. A common misconception is that entrepreneurs who have failed simply lacked sufficient funding or did not put the right team in place. However, many fail because they have not spent enough time researching their business idea and its viability in the market.
? Lack of in-depth market research:
Lack of proper market research is one of the key problems for new businesses. It's easy to get carried away with a business idea and set up a business without testing its viability.
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Accurate market data will help prevent over-optimistic forecasts. It is also important to consider what your audience or customer needs are and to use market research to test them, and to then factor feedback into any products or services you are designing.
? Keeping your business ideas to yourself:
Failing to share your business ideas with people you trust means that you will miss out on objective feedback. Brainstorm with colleagues to give you valuable perspective. Note down any good ideas you get from brainstorming and use them when developing your business. Asking potential customers what they think of your plans or allowing them to examine a prototype can be invaluable. It can help you discover whether your product offers a solution to customers' problems or something new and unique that they would purchase. Positive feedback will give you the confidence to proceed and could help you attract investment funding. On the other hand, negative feedback will alert you to the need to rethink your plans and could help you avoid wasting time and money on a product that will not sell.
? Not knowing your clients or marketplace:
If you do not complete adequate research, you are in danger of selling to the wrong people or of not understanding your marketplace. To avoid this: ? Use information, such as free government data or your own network of contacts ? Carry out field research to explore customers' profiles and discover buying trends ? Swap ideas with people in the same sector
? Weak financial planning:
Financial planning is extremely important for most new businesses. A lack of capital, lack of a contingency plan and reluctance to seek professional advice can all bring major problems.
? Setting sights too high:
It is important to make realistic forecasts about your businesses potential. During the start-up phase, it can be easy to make over-optimistic forecasts, however there can be serious consequences for your business if your projections are not realistic.
? Hiring the wrong people:
A large part of new business' success will be determined by the quality of the people you recruit. Taking on people will always mean some form of investment for your business and requires careful consideration. Taking this investment seriously can make it more valuable and improve your chances of success.
? Poor supplier and customer controls:
Common mistakes for new businesses include setting up unsatisfactory credit arrangements and not taking due care when choosing suppliers. Choose carefully as your business' profitability and reputation could be at stake.
? Poor stock and asset management:
Poor stock control and over-investment in fixed assets can mean your capital is tied up unnecessarily. Page | 13
Case Analysis – After Shave Lotion (ASL):
Marketing Brief:
? Traditionally men have used alum as an after shave remedy. However with development in the standard of living and influence of western culture, more people started using after shave lotions. Initially imported and expensive brands like English Leather, Williams, Givenchy and Yardley were used by upper segment. Later, a need for cheaper and indigenous brands was felt. Old Spice and Monarch were launched during 70s Old Spice captured a major market share. In 80s some new brands like Savage, Park Avenue and Old Spice Musk were launched. ASL market, thus, started getting more competitive.
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Marketing Issues to be studied by a New Entrant in the Market (Say, ABC Ltd.):
Following issues have to be studied and analysed re Indian ASL Market: ? Market Share of various brands. ? Perception of consumers about Indian vis-a-vis foreign brands. ? Characteristics sought after in an ASL ? Purchasing Behavior of Consumers ? Effect of Advertisements
The objectives of the research conducted by ABC Ltd. are:
? ? ? To find out Consumer awareness about various ASL brands in market. To study the buying behavior of consumers, reasons for preferring a particular brand. To study the perception of consumers about Indian vis-a-vis foreign brands.
Source of Data Collection & Research Method used:
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Primary Data: The data collected is first hand in nature. Questionnaire method is used to obtain necessary information from the respondents.
Questions were prepared as per the views of the Industry Experts Survey was conducted by the way of taking interviews
Sampling Plan:
? Target Audience: Men from upper and middle income groups residing in Mumbai of age between 20-50 years. ? Sampling Size: 150 people
Questionnaire:
The following questions were asked by the respondents to collect their feedback and analyze the primary data as a result of their feedback. 1. Do you use an after shave lotion? Page | 14
( ) Yes ( ) No 2. Please name a few after shave lotions you have heard of. (a)........ (b)........ (c)........ 3. Which of the following brands have you heard of? Tick (a) Park Avenue (b) Old Spice (c) Savage (d) Brut (e) Williams (f) Yardley 4. Can you give reasons for consistency/ change in your shave lotion? Consistency: (a) Habitual (b) Value for money (c) Don't like others (d) Any other please specify Change: (a) Like to try other brands (b) For a change (c) All brands are same (d) Any other please specify 5. Why do you use an after shave lotion? Tick (a) For its antiseptic properties (b) As a perfume (c) Girlfriend loves it (d) To get the sting (e) Any other reason, please specify Personal Information: 6. Age: ( ) Less than 18 years ( ) 18-25 Years ( ) 25-35 Years ( ) Above 35 Years 7. Family Income: ( ) Less than Rs. 36,000 p.a. ( ) Rs. 36,000 p.a. to Rs. 72,000 p.a. Page | 15
( ) Above Rs. 72,000 p.a. 8. Profession: ( ) Govt. Service ( ) Private Service ( ) Student ( ) Business ( ) Other
Analysis of Data Gathered:
Brand Preference:
Usage of the products available in the Market:
Reasons for change:
Reasons for Consistency:
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Reasons for Usage:
Conclusions Drawn:
? ? ? ? Indian brands (62%) preferred over imported brands (38%) Old Spice is the most popular brand with the highest market share (28%) Most people (55%) use the lotion after shave More no. of men (34%) are ready to switch over to other brands for a change and less no. of people (13%) switch over to other brands due to non-availability of their preferred brand. ? Brand loyalty is higher (55%) due to being habituated to using the product, lesser (21%) due to the value it creates and least (11%) due to no interest in other brands. ? Most (55%) men use the lotion after shave, some (44%) after bath and few (31%) before a party. ? The results of the survey indicate a good scope for a new entrant (like ABC Ltd.) if introduces products of superior quality, uses advertisement to create brand awareness, launch the brand with attractive packaging and offer discounts to customers and concessions to wholesale dealers.
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This report has been compiled after the collection and careful scrutiny of the following media vehicles: Bibliography:
? Marketing Management
Prof. S. Rajagopalan Websites visited: o www.polarismr.com/resources/marketing-research-overview/ o www.en.wikipedia.org/wiki/Marketing_research_process o www.quickmba.com/marketing/research/ o www.marketing.about.com/od/marketingplanandstrategy/a/situationanalys.htm
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doc_512178460.docx
With some good examples
Table of Contents:
Sr. No. 1. 2. 3. 4. 5. 6. 7.
Topics Introduction, Definition, Meaning and Scope Role of Marketing Research Steps in Marketing Research Project Types of Marketing Research Techniques Reasons behind Poor or Inadequate Marketing Research Case Analysis – After Shave Lotion Bibliography and Websites visited
Page No. 02 03 04 10 12 14 18
Page | 1
Introduction to Marketing Research:
Overview:
Marketing Research is a process of investigating and answering the questions about consumer behavior. The key role of the marketing research function in an organization is to provide reliable evidence which will help managers take better decisions. Marketing Research is analogous with listening. Conventional theory of selling is about the salesman talking. But, real marketing begins when one listens to one’s customers. Before providing the answers one must listen to the questions. The marketer is often faced with a degree of uncertainty and can never be quite certain that even the best laid plans will achieve their objectives in exactly the manner expected. Uncertainty is normally greater in those markets which change rapidly. Unfortunately, many markets are experiencing change frequently in the recent years. This is where the Marketer finds it imperative to take a moment to study the market and do the research well before planning to capture the market by introducing a change in the market by way of launching new goods and services or by making certain modifications in the existing products and services.
Definition:
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 specifies the information required to address these issues, designs the method for collecting information, manages and implements the data collection process, analyzes the results, and communicates the findings and their implications." Marketing research is the systematic gathering, recording, and analysis of data about issues relating to marketing products and services. The goal of marketing research is to identify and assess how changing elements of the marketing mix impacts customer behavior. The term is commonly interchanged with market research; however, expert practitioners may wish to draw a distinction, in that market research is concerned specifically with markets, while marketing research is concerned specifically about marketing processes.
Meaning and Scope:
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 involves a variety of tasks specification of the information required to address issues design of the method for collecting information management and implementation of the data collection process analysis of the results communication of the findings and their implication
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Role of Marketing Research:
? The task of Marketing Research is to provide management with relevant, accurate, reliable, valid, and current information. Competitive marketing environment and the ever-increasing costs attributed to poor decision making require that marketing research provide sound information. Sound decisions are not based on gut feeling, intuition, or even pure judgment. Marketing managers make numerous strategic and tactical decisions in the process of identifying and satisfying customer needs. They make decisions about potential opportunities, target market selection, market segmentation, planning and implementing marketing programs, marketing performance, and control. These decisions are complicated by interactions between the controllable marketing variables of product, pricing, promotion, and distribution. Further complications are added by uncontrollable environmental factors such as general economic conditions, technology, public policies and laws, political environment, competition, and social and cultural changes. Another factor in this mix is the complexity of consumers. Marketing research helps the marketing manager link the marketing variables with the environment and the consumers. It helps remove some of the uncertainty by providing relevant information about the marketing variables, environment, and consumers. In the absence of relevant information, consumers' response to marketing programs cannot be predicted reliably or accurately. Ongoing marketing research programs provide information on controllable and non-controllable factors and consumers; this information enhances the effectiveness of decisions made by marketing managers. Traditionally, marketing researchers were responsible for providing the relevant information and marketing decisions were made by the managers. However, the roles are changing and marketing researchers are becoming more involved in decision making, whereas marketing managers are becoming more involved with research. The role of marketing research in managerial decision making is explained further using the framework of the "DECIDE" model: The DECIDE model conceptualizes managerial decision making as a series of six steps. The decision process begins by precisely defining the problem or opportunity, along with the objectives and constraints. Next, the possible decision factors that make up the alternative courses of action (controllable factors) and uncertainties (uncontrollable factors) are enumerated. Then, relevant information on the alternatives and possible outcomes is collected. The next step is to identify and select the best alternative based on chosen criteria or measures of success. Then a detailed plan to develop and implement the alternative selected is developed and put into effect. Last, the outcome of the decision and the decision process itself are evaluated. 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 Page | 3
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objectives cautiously and clearly, and the need to avoid conducting research to support decisions already made.
Steps in a Marketing Research Project:
Marketing research process is a set of eight steps which defines the tasks to be accomplished in conducting a marketing research study. The Marketing research process includes the systematic identification, collection, analysis and distribution of information for the purpose of knowledge development and decision making. The reasons and times at which your company or organization might consider performing marketing research varies, but the general purpose of gaining intelligence for decision making remains constant throughout. Whether you are conducting ad-hoc marketing research projects, creating a new marketing research program or revising an existing one, what are the key steps in the process? While there are dozens of little steps along the way, each of those steps fits into one of the eight major steps of the Marketing Research process. They are:
1. Problem Definition/Opportunity Identification and Formulation:
The first step in any marketing research project is to define the problem. In defining the problem, the researcher should take into account the purpose of the study, the relevant background information, what information is needed, and how it will be used in decision making. Problem definition involves discussion with the decision makers, interviews with industry experts, analysis of secondary data, and, perhaps, some qualitative research, such as focus groups. Once the problem has been precisely defined, the research can be designed and conducted properly. Also, the decision problem faced by management can be translated into a market research problem in the form of questions that define the information that is required to make the decision and how this information can be obtained. Thus, the decision problem is translated into a research problem. For example, a decision problem may be whether to launch a new product. The corresponding research problem might be to assess whether the market would accept the new product. The objective of the research should be defined clearly. To ensure that the true decision problem is addressed, it is useful for the researcher to outline possible scenarios of the research results and then for the decision maker to formulate plans of action under each scenario. The use of such scenarios can ensure that the purpose of the research is agreed upon before it commences.
2. Analyzing the Situation:
Before developing any given marketing strategy it is important to conduct some form of analysis. This should form an essential part of any business or marketing plan and should be reviewed over time to ensure that it is kept current. Many of my clients often ask me what factors are important when doing this. In order to analyze a situation, the following elements are worth considering and they include:
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Product Situation:
What is my current product? You may want to break this definition up into parts such as the core product and any secondary or supporting services or products that also make up what you sell. It is important to observe this in terms of its different parts in order to be able to relate this back to core client needs. Feel free to also discuss here which of your client’s needs your product is meeting.
Competitive situation:
Analyze your main competitors – who are they what are they up to – how do they compare – feature/ benefit analysis. What are their competitive advantages?
Distribution Situation:
Review your distribution Situation – how are you getting your product to market? Do you need to go through distributors or other intermediaries?
Environmental factor:
What external and internal environmental factors are there that needs to be taken into account. This can include economic or sociological factors that impact on your performance.
Opportunity and Issue analysis:
Which requires conduction of SWOT analysis (Strengths, Weaknesses, Opportunity and Threats) Things to write down here are what current opportunities that are available in the market, the main threats that business is facing and may face in the future, the strengths that the business can rely on and any weaknesses that may effect the business performance.
3. Gathering Problem-Specific Data:
It is important to gather the data or information related to the problem beforehand so that it helps the manager to plan research design in line with the current state of the problem. Data can be of two types:
Secondary Data:
Before going through the time and expense of collecting primary data, one should check for secondary data that previously may have been collected for other purposes but that can be used in the immediate study. Secondary data may be internal to the firm, such as sales invoices and warranty cards, or may be external to the firm such as published data or commercially available data. The government census is a valuable source of secondary data. Secondary data has the advantage of saving time and reducing data gathering costs. The disadvantages are that the data may not fit the problem perfectly and that the accuracy may be more difficult to verify for secondary data than for primary data. Some secondary data is republished by organizations other than the original source. Because errors can occur and important explanations may be missing in republished data, one should obtain secondary data directly from its source. One also should consider who the source is and whether the results may be biased. There are several criteria that one should use to evaluate secondary data. ? Whether the data is useful in the research study. ? How current the data is and whether it applies to time period of interest. ? Errors and accuracy - whether the data is dependable and can be verified. Page | 5
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Presence of bias in the data. Specifications and methodologies used, including data collection method, response rate, quality and analysis of the data, sample size and sampling technique, and questionnaire design. Objective of the original data collection. Nature of the data, including definition of variables, units of measure, categories used, and relationships examined.
Primary Data:
Often, secondary data must be supplemented by primary data originated specifically for the study at hand. Some common types of primary data are: ? Demographic and socioeconomic characteristics ? Psychological and lifestyle characteristics ? Attitudes and opinions ? Awareness and knowledge - for example, brand awareness ? Intentions - for example, purchase intentions. While useful, intentions are not a reliable indication of actual future behavior. ? Motivation - a person's motives are more stable than his/her behavior, so motive is a better predictor of future behavior than is past behavior. Primary data can be obtained by communication or by observation. Communication involves questioning respondents either verbally or in writing. This method is versatile, since one needs only to ask for the information; however, the response may not be accurate. Communication usually is quicker and cheaper than observation. Observation involves the recording of actions and is performed by either a person or some mechanical or electronic device. Observation is less versatile than communication since some attributes of a person may not be readily observable, such as attitudes, awareness, knowledge, intentions, and motivation. Observation also might take longer since observers may have to wait for appropriate events to occur, though observation using scanner data might be quicker and more cost effective. Observation typically is more accurate than communication Personal interviews have an interviewer bias that mail-in questionnaires do not have. For example, in a personal interview the respondent's perception of the interviewer may affect the responses.
4. Planning the research design:
To get answers to the issues raised in Stage 2 the researcher lays out a design for obtaining the information. Of course many marketers do not produce a formal design plan when conducting research. For example, a small retailer who asks a returning customer how she liked the product she purchased the previous week is engaged in research and doing so without the need to produce a formal plan. But for marketers looking to undertake formal research, a written research design plan is important. The first part of the research design is to decide on the type of research that will work best for the purpose (i.e., explain, predict, monitor, discover, hypothesis test) and information that is sought. Marketing research methods can be of following types:
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Based on Questioning:
Qualitative marketing research - generally used for exploratory purposes - small number of respondents - not generalizable to the whole population - statistical significance and confidence not calculated - examples include focus groups, in-depth interviews, and projective techniques Quantitative marketing research - generally used to draw conclusions - tests a specific hypothesis - uses random sampling techniques so as to infer from the sample to the population - involves a large number of respondents - examples include surveys and questionnaires. Techniques include choice modeling, maximum difference preference scaling, and covariance analysis.
Based on Observations:
Ethnographic studies - by nature qualitative, the researcher observes social phenomena in their natural setting observations can occur cross-sectionally (observations made at one time) or as per longitudes (observations occur over several time-periods) - examples include product-use analysis and computer cookie traces. See also Ethnography and Observational techniques. Experimental techniques - by nature quantitative, the researcher creates a quasi-artificial environment to try to control spurious factors, and then manipulates at least one of the variables - examples include purchase laboratories and test markets Researchers often use more than one research design. They may start with secondary research to get background information, and then conduct a focus group (qualitative research design) to explore the issues. Finally they might do a full nation-wide survey (quantitative research design) in order to devise specific recommendations for the client.
5. Sampling:
When specifying the sample procedures, the sample or subset of the larger population to be drawn for interviewing must be determined. ? The population from which sample is drawn or interest must be defined. ? The researcher must determine if the sample for this study should be represent the whole population ? If yes then probability sample is called 1. Probability sample: Every element in the population has a known nonzero probability of being selected. Scientific rules are used to represent the population. a. A Random sample: Every population has an equal chance of being selected as part of the sample. b. It is often selected by using random numbers form a table found in statistics books.
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2. Non probability sample: It is sample in which little or no attempt is made to get a representative cross section of the population. a. A Convenience sample: Here researcher uses sample that are readily accessible. b. Non probability samples are frequently used in market research, as they are less costly then probability samples. ? Types of Errors in sampling: i. Measurement Error - It occurs when the information desired by the researcher differ from the information provided by the measurement process. ii. Sampling Error - It occurs when sample is not representative of the target population in certain respects. iii. Non-Response Error - It occurs when certain members of sample refuse to respond as a result it will affect the whole sample. E.g. - Refuse to fill mail surveys, unattended the phones. iv. Frame Error - It arises if the sample drawn from a population differs from the target population. v. Random Error - It occurs when selected sample does not represent the overall population
Data Collection
Marketing research filed services does most data collection. A. Field Service firms specialize in interviewing respondents on a sub contract basis. B. Field service firms also conduct focus groups, mall intercepts, retail audits, and other data – collection services.
6. Data Analysis And Interpretation
Sample
Population
Key Issues
Confidence Intervals
Validity
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Sample: A sample is a smaller group selected to represent the population. ? The key here is to ensure that sample represent the larger population. Page | 8
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? In random sampling each member of population must have equal chance of being in sample. ? Research results are not exact and it vary from true population Confidence Interval: It is range on either side of an estimate that is likely to contain the true population value. ? Here the researcher asses the accuracy of their sample estimates by using confidence intervals. Validity: It is concerns the extents to which data measures what it is intended to measure. ? It is very important to construct questions carefully to ensure validity in subjects responses Population: It is the total group of people that are interested.
Research results are not exact. Some time due to poor interpretation result can destroy the whole research process. Problem can also arise if the researcher does not understand the management problem. So researcher and manager must closely work together before any problem arises. ? Three types of Analysis: 1) One-way Frequency-It i very simple. Here the respondent answered question a certain ways. This method provides a general picture of study’s results. 2) Cross Tabulations: It relates the responses to one question to responses to one or more other questions. 3) Statistical Analysis: This is most sophisticated type, here variety of techniques are used to examine the data
7. Prepare and Present the Report
? Here the researcher must communicate the conclusions and recommendations to management. ? Usually both oral and written reports are required.
8. Follow Up
? Finally results of the research provide some results that are actionable, some showing failures of the strategy to impact the market. ? Whatever the results, these need to be communicated to the managers. ? In some situations it may be best not to conduct market research. ? When decision –making information already exists. ? When the cost of conducting research are greater than the benefits. ? When you learn from the success or failure of the others.
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Types of Marketing Research Techniques:
Marketing research techniques come in many forms, including: 1. Ad Tracking - Periodic or continuous in-market research to monitor a brand’s performance using measures such as brand awareness, brand preference, and product usage. 2. Advertising Research - Used to predict copy testing or track the efficacy of advertisements for any medium, measured by the ad’s ability to get attention (measured with Attention Tracking), communicate the message, build the brand’s image, and motivate the consumer to purchase the product or service. 3. Brand equity research - How favorably do consumers view the brand? 4. Brand association research - What do consumers associate with the brand? 5. Brand Attribute research - What are the key traits that describe the brand promise? 6. Brand name testing - What do consumers feel about the names of the products? 7. Commercial eye tracking research - Examine advertisements, package designs, websites, etc. by analyzing visual behavior of the consumer. 8. Concept testing - To test the acceptance of a concept by target consumers. 9. Cool hunting - To make observations and predictions in changes of new or existing cultural trends in areas such as fashion, music, films, television, youth culture and lifestyle. 10. Buyer decision processes research - To determine what motivates people to buy and what decisionmaking process they use. 11. Copy Testing – Predicts in-market performance of an ad before it airs by analyzing audience levels of attention, brand linkage, motivation, entertainment, and communication, as well as breaking down the ad’s flow of attention and flow of emotion. 12. Customer satisfaction research - Quantitative or qualitative studies that yields an understanding of a customer's of satisfaction with a transaction. 13. Demand estimation - To determine the approximate level of demand for the product. 14. Distribution channel audits - To assess distributors’ and retailers’ attitudes toward a product, brand, or company. 15. Internet strategic intelligence - Searching for customer opinions in the Internet: chats, forums, web pages, blogs... where people express freely about their experiences with products, becoming strong opinion formers. 16. Marketing effectiveness and analytics - Building models and measuring results to determine the effectiveness of individual marketing activities. 17. Mystery consumer or mystery shopping - An employee or representative of the market research firm anonymously contacts a salesperson and indicates he or she is shopping for a product. The shopper then records the entire experience. This method is often used for quality control or for researching competitors' products. 18. Positioning research - How does the target market see the brand relative to competitors? What does the brand stand for? 19. Price elasticity testing - To determine how sensitive customers are to price changes.
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20. Sales forecasting - To determine the expected level of sales given the level of demand. With respect to other factors like Advertising expenditure, sales promotion etc. 21. Segmentation research - To determine the demographic, psychographic, and behavioral characteristics of potential buyers. 22. Online panel - A group of individual who accepted to respond to marketing research online. 23. Store audit - To measure the sales of a product or product line at a statistically selected store sample in order to determine market share, or to determine whether a retail store provides adequate service. 24. Test marketing - A small-scale product launch used to determine the likely acceptance of the product when it is introduced into a wider market. 25. Viral Marketing Research - Refers to marketing research designed to estimate the probability that specific communications will be transmitted throughout an individual's Social Network. Estimates of Social Networking Potential (SNP) are combined with estimates of selling effectiveness to estimate ROI on specific combinations of messages and media.
The 2 most common Marketing Research methods employed are: 1. Overseas Marketing Research (OMR):
? ? ? OMR basically helps to identify Market Potential for the given product in a region which is outside domestic area. With OMR, One can understand about prevailing Economic and Political Environment in the subject region, which influences the Marketing Strategy and Plans to be adapted suitably. OMR may also help to understand Consumers behavior, their Tastes / preferences / likes / dislikes / beliefs / customs etc., which inurn will help the manufacturer OR trader to develop or trade suitable product. Apart from pt no.3, it is extremely important to understand present Competition Scenario in the subject region. We all understand how important it is to Understand Government Rules and Regulation in the subject region / country, as this will decide the Business prospects at the very first stage. OMR may also give some guidelines as regards selection of effective and efficient Distribution channel.
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For example:
Despite the fact that many research companies claim to "be in" Asia, few truly are. Some agencies thus try to subcontract locally; market by market. However regional co-ordination aspects can suffer; given language barriers, time-zone differences, cultural differences, insufficient market knowledge and the myriad of communications problems that go with managing multiple suppliers in foreign markets. Alternatively, reputable research agencies look for a consistent supplier who can deliver for them on a regional basis. The "BIG GUYS" are here, but savvy managers of marketing research companies know that their competitive position can be hurt by trying to subcontract business to them. With increasing frequency, research agencies looking for a proactive supplier who can deliver timely, quality data, in a cost effective manner are turning to The Research Pacific Group! Page | 11
2. Test Marketing:
Test marketing is a technique used during product development to determine how people respond to a product. It can be used at many different phases of development to see whether or not the public will buy the product, how the product may need to be adjusted to make it appealing to the public, and how members of the public interact with the product. Using information from test marketing, product developers can refine products to make them more commercially viable before embarking on a widespread project launch. One of the simplest forms of test marketing is online test marketing, in which a manufacturer produces a survey to determine whether or not members of the public even want a product. The survey can also provide useful data about how much people would be willing to pay for a product, whether or not people would travel to obtain it, what kind of features they would look for, and so forth. This form of test marketing can also be done through mail and phone surveys sent to a targeted area of the population. Once a product is in development, companies can embark on test marketing which involves bringing actual examples of the public. They expose the product to a selected area of the public to see how they respond. For example, a car manufacturer might bring prototypes to a few major cities viewed as trendsetters to see how people respond and to give people a chance to interact with the car. Or, a manufacturer of potato chips might send out a new flavor to a select group of supermarkets, asking the supermarkets to put it out on the shelf like a regular product and to monitor consumer response. Companies use test marketing to gather information about public response to their products. This information may be used to totally rework or a product, or to add features. The result of test marketing also informs the ad campaign, ensuring that ads are presented in a way which represents the product, hits the target audience, and makes people interested in purchasing the product. Marketing tests are critical, and companies which fail to perform them can run into trouble when they start a major advertising campaign and product introduction. Entrepreneurs who are interested in selling something entirely new are often encouraged to engage in test marketing before they give up their day jobs or savings. Test marketing allows them to explore the idea of introducing the product to the market. It may turn out that members of the public don't respond, making investment in actual product development unwise.
Reasons behind Poor or Inadequate Marketing Research:
Research and planning are vital to ensure that your business idea is viable and your pricing is both competitive in your market place and provides an adequate return. A common misconception is that entrepreneurs who have failed simply lacked sufficient funding or did not put the right team in place. However, many fail because they have not spent enough time researching their business idea and its viability in the market.
? Lack of in-depth market research:
Lack of proper market research is one of the key problems for new businesses. It's easy to get carried away with a business idea and set up a business without testing its viability.
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Accurate market data will help prevent over-optimistic forecasts. It is also important to consider what your audience or customer needs are and to use market research to test them, and to then factor feedback into any products or services you are designing.
? Keeping your business ideas to yourself:
Failing to share your business ideas with people you trust means that you will miss out on objective feedback. Brainstorm with colleagues to give you valuable perspective. Note down any good ideas you get from brainstorming and use them when developing your business. Asking potential customers what they think of your plans or allowing them to examine a prototype can be invaluable. It can help you discover whether your product offers a solution to customers' problems or something new and unique that they would purchase. Positive feedback will give you the confidence to proceed and could help you attract investment funding. On the other hand, negative feedback will alert you to the need to rethink your plans and could help you avoid wasting time and money on a product that will not sell.
? Not knowing your clients or marketplace:
If you do not complete adequate research, you are in danger of selling to the wrong people or of not understanding your marketplace. To avoid this: ? Use information, such as free government data or your own network of contacts ? Carry out field research to explore customers' profiles and discover buying trends ? Swap ideas with people in the same sector
? Weak financial planning:
Financial planning is extremely important for most new businesses. A lack of capital, lack of a contingency plan and reluctance to seek professional advice can all bring major problems.
? Setting sights too high:
It is important to make realistic forecasts about your businesses potential. During the start-up phase, it can be easy to make over-optimistic forecasts, however there can be serious consequences for your business if your projections are not realistic.
? Hiring the wrong people:
A large part of new business' success will be determined by the quality of the people you recruit. Taking on people will always mean some form of investment for your business and requires careful consideration. Taking this investment seriously can make it more valuable and improve your chances of success.
? Poor supplier and customer controls:
Common mistakes for new businesses include setting up unsatisfactory credit arrangements and not taking due care when choosing suppliers. Choose carefully as your business' profitability and reputation could be at stake.
? Poor stock and asset management:
Poor stock control and over-investment in fixed assets can mean your capital is tied up unnecessarily. Page | 13
Case Analysis – After Shave Lotion (ASL):
Marketing Brief:
? Traditionally men have used alum as an after shave remedy. However with development in the standard of living and influence of western culture, more people started using after shave lotions. Initially imported and expensive brands like English Leather, Williams, Givenchy and Yardley were used by upper segment. Later, a need for cheaper and indigenous brands was felt. Old Spice and Monarch were launched during 70s Old Spice captured a major market share. In 80s some new brands like Savage, Park Avenue and Old Spice Musk were launched. ASL market, thus, started getting more competitive.
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Marketing Issues to be studied by a New Entrant in the Market (Say, ABC Ltd.):
Following issues have to be studied and analysed re Indian ASL Market: ? Market Share of various brands. ? Perception of consumers about Indian vis-a-vis foreign brands. ? Characteristics sought after in an ASL ? Purchasing Behavior of Consumers ? Effect of Advertisements
The objectives of the research conducted by ABC Ltd. are:
? ? ? To find out Consumer awareness about various ASL brands in market. To study the buying behavior of consumers, reasons for preferring a particular brand. To study the perception of consumers about Indian vis-a-vis foreign brands.
Source of Data Collection & Research Method used:
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Primary Data: The data collected is first hand in nature. Questionnaire method is used to obtain necessary information from the respondents.
Questions were prepared as per the views of the Industry Experts Survey was conducted by the way of taking interviews
Sampling Plan:
? Target Audience: Men from upper and middle income groups residing in Mumbai of age between 20-50 years. ? Sampling Size: 150 people
Questionnaire:
The following questions were asked by the respondents to collect their feedback and analyze the primary data as a result of their feedback. 1. Do you use an after shave lotion? Page | 14
( ) Yes ( ) No 2. Please name a few after shave lotions you have heard of. (a)........ (b)........ (c)........ 3. Which of the following brands have you heard of? Tick (a) Park Avenue (b) Old Spice (c) Savage (d) Brut (e) Williams (f) Yardley 4. Can you give reasons for consistency/ change in your shave lotion? Consistency: (a) Habitual (b) Value for money (c) Don't like others (d) Any other please specify Change: (a) Like to try other brands (b) For a change (c) All brands are same (d) Any other please specify 5. Why do you use an after shave lotion? Tick (a) For its antiseptic properties (b) As a perfume (c) Girlfriend loves it (d) To get the sting (e) Any other reason, please specify Personal Information: 6. Age: ( ) Less than 18 years ( ) 18-25 Years ( ) 25-35 Years ( ) Above 35 Years 7. Family Income: ( ) Less than Rs. 36,000 p.a. ( ) Rs. 36,000 p.a. to Rs. 72,000 p.a. Page | 15
( ) Above Rs. 72,000 p.a. 8. Profession: ( ) Govt. Service ( ) Private Service ( ) Student ( ) Business ( ) Other
Analysis of Data Gathered:
Brand Preference:
Usage of the products available in the Market:
Reasons for change:
Reasons for Consistency:
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Reasons for Usage:
Conclusions Drawn:
? ? ? ? Indian brands (62%) preferred over imported brands (38%) Old Spice is the most popular brand with the highest market share (28%) Most people (55%) use the lotion after shave More no. of men (34%) are ready to switch over to other brands for a change and less no. of people (13%) switch over to other brands due to non-availability of their preferred brand. ? Brand loyalty is higher (55%) due to being habituated to using the product, lesser (21%) due to the value it creates and least (11%) due to no interest in other brands. ? Most (55%) men use the lotion after shave, some (44%) after bath and few (31%) before a party. ? The results of the survey indicate a good scope for a new entrant (like ABC Ltd.) if introduces products of superior quality, uses advertisement to create brand awareness, launch the brand with attractive packaging and offer discounts to customers and concessions to wholesale dealers.
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This report has been compiled after the collection and careful scrutiny of the following media vehicles: Bibliography:
? Marketing Management
Prof. S. Rajagopalan Websites visited: o www.polarismr.com/resources/marketing-research-overview/ o www.en.wikipedia.org/wiki/Marketing_research_process o www.quickmba.com/marketing/research/ o www.marketing.about.com/od/marketingplanandstrategy/a/situationanalys.htm
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