Market Research Process

INTRODUCTION The American Marketing Association formally defines marketing research as: Marketing research is the function that links the consumer, customer, and public to the marketer through information- information used to identify and define marketing opportunities and problems; generate, refine and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process Marketing research is the systematic and objective identification, collection, analysis, dissemination and use of information for the purpose of improving decision making related to identification and solution of problems and opportunities in marketing.

Types of market research The definition states that the organisation engages in marketing research for two reasons: To identify the problem. To solve the problem This distinction serves as the basis for classifying marketing research into: Marketing research Problem identification research Problem solving research

PROBLEM IDENTIFICATION RESEARCH(PIR) Problem identification research is undertaken to help identify problems that are, perhaps, not apparent on surface and yet exist or are likely to arise in the future. Examples of PIR include market potential, market share, brand or company image, sales analysis, short range forecasting, long range forecasting, and business trend research. Research of this type provides information about marketing environment and helps diagnose a problem. The recognition of economic, social, or cultural trends, such as changes in consumer behaviour, may point to underlying problems or opportunities. Once a problem has been identified, problem solving research is undertaken to arrive at a solution.

PROBLEM IDENTIFICATION RESEARCH(PIR) Market potential research Forecasting research Market share research Market characteristics research Image research Sales analysis research

PROBLEM SOLVING RESEARCH(PSR) Segmentation Research Product Research Pricing Research Promotion Research Distribution Research

The Marketing Research components Market Research is a Six Step Process: Step 1 : Problem Definition Step 2: Development of an Approach to the Problem Step 3 : Research Design Formulation Step 4 : Fieldwork or Data Collection Step 5 : Data Preparation and Analysis Step 6 : Report preparation and Presentation

STEP 1: PROBLEM DEFINITION This is the first step in any marketing research process. It is necessary to take into account the purpose of the study, the relevant background information, the information needed and how it will be used in decision making. Once the problem has been defined precisely the research can be designed and conducted properly.

STEP 2: DEVELOPMENT OF AN APPROACH TO THE PROBLEM Development of an approach to the problem includes formulating an objective or theoretical framework, analytical models, research question and hypothesis and identifying the information needed. The process is guided by discussions with the management and industry experts, analysis of secondary primary data, qualitative research, and quantitative data.

STEP 3: Research Design Formulation A research design is a framework or blue print for conducting the marketing research project. It details the procedures necessary for obtaining the required information, and its purpose is to design a study that will test the hypothesis of interest. Conducting exploratory research, precisely defining the variables, and designing appropriate scales to measure them are also a part of research design. The issue of how to obtain the data from respondents must be addressed. It is also necessary to design a questionnaire and a sampling plan to select respondents for the study.

STEP 3: Research Design Formulation Definition of information needed Secondary data analysis Qualitative analysis Methods for collecting quantitative data Measurement and scaling procedures Questionnaire design Sampling process and sample size Plan of data analysis

STEP 4: Fieldwork or Data collection Data collection involves a field force or staff that operates either in a field, as in case of a personal interview, from an office telephone, or electronically

STEP 5: Data preparation and analysis Data preparation and analysis includes editing, coding, transcription and verification of data. Number or letter codes are assigned to represent each response to each question in the questionnaire .

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THANK YOU -PHARMA STREET