Marketing Research 9789350433034, 9788184889000

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RXIIIIIl\JG RBSIABCD

Hal GJfimalaya GJ\JblishingGJfouse MUMBAI • NEW DELHI. NAGPUR • BENGALURU • HYDERABAD • CHENNAI • PUNE LUCKNOW. AHMEDABAD. ERNAKULAM • BHUBANESWAR • INDORE • KOLKATA

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ISBN

.

: 978-81-84889-00-0

Revised Edition : 2010

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CONTENTS Chapter

Pages

1. INTRODUCING MARKETING RESEARCH Backdrop-Marketing Information-What is Marketing Information?-The Need for Marketing Information-The Marketing Information System-Elements of Good Marketing Information System-The Components of Marketing Information SystemMarketing Research-What is Marketing Research ?-Standard Definitions-Features of Marketing Research-Distinction Between Marketing Research and Marketing Information System-Objectives of Marketing Reseach-Scope of Markctting Research-Nature of Marketing Research-Evolution of Marketing Research-Role of Marketing Research-Limitations of Marketing Research-How to Make Marketing Research Mor-e Effective?-Status of Marketing Research in India-Reasons for Not Fully Accepting the Marketing Research in India-Marketing Research and Other Disciplines-Internal Marketing Research Organisation-Types-External Research Organisation-Merits and Demerits-Criteria for Selecting the Outside AgencyChapter Based Questions.

001-033

2. ASSESSING INFORMATION NEEDS Backdrop-Types of Research-Determinants of Organisation's Information NeedsNeed for Assessment of Information-Chapter Based Questions.

034-042

3. SCIENTIFIC METHOD Backdrop-Methods ofKnowing-Tenacity as a Method-Authority as a MethodIntuition as a Method-Service as a Method-Scientific Method-Basic Features of Scientific Method-Scientific Method in Physical Sciences and Social Sciences Scientific and Non-scientific Methods Compared-Steps in Scientific Method/ Research-bservation-Formulating the Hypothesis-Errors and Types of ErrorsPrediction of the Future-Testing the Hypothesis-Difficulties in Applying the Scientific Method to Marketing Research-chapter Based Questions.

043-054

4. MARKETING RESEARCH PROCESS Backdrop-What is Marketing Research Process or Procedure?-StepsCharacteristics of Sound Marketing Research-Marketing Research Plan-Chapter Based Questions.

055-064

Chapter

Pages

5. RESEARCH DESIGN Backdrop-What is Research Design?-Standard Definitions-Benefits of Research Design-Types of Research Desi.gn:-.Relati,ve Signifiec;mce Methods-Merits and Demerits-Special Techniques of Marketing Research-Merits and Demerits-Criteria for Selection of Experimental Reseach Design-Chapter Based Questions.

065-091

6. ATTITUDE MEASUREMENT AND SCALING Backdrop-What is an Attitude?-Standard Definitions-Basic Features of an Attitude-Why Study Attitudes?-Measurement-What is Measurement?-Standard Definitions-Characteristics of Scientific Measurement-Standard Procedure for Scaling-Levels of Measurement and Scales-Selected Attitude Scales-Overall Limitations of Attitude Measurement-Chapter Based Questions. 7. SAMPLING TECHNIQUES, DESIGNS AND DECISIONS Backdrop-What is Sample/Sampling-Standard Definitions-Why Sample/ Sampling-Managerial Objectives of Sampling-Characteristics of an Ideal SampleFactors to be Considered in Sample Size-Sampling Process-Steps in Sampling Process-Merits and Limitations of Sampling-Methods of Sampling-Essentials of Good Sample Design-Methods Classified-Probability and Non-probability Methods-Relative Merits and Demerits-Problems in Sampling-Sampling ErrorMeasurement Errors-Prediction Errors-Bias in Sampling-Chapter Based Questions.

092-104

105-136

8. PROCESS OF DATA COLLECTION Backdrop-Secondary Data-What it Means?-Merits and Demerits of Secondary Data-Sources of Secondary Data-Primary Data-What is Means?-Basic Means of Getting the Primary Data-Relative Merits and Demerits of Structured Non-disguised Questionnaires-Relative Merits of Structured Questionnaire-Observation MethodComparative Merits and Demerits-Methods of Observation-Designing a Questionnaire-Steps-Chapter Based Questions.

137-157

9. SURVEY METHODS AND ADMINISTRATION Backdrop-Survey Method-What it Means?-Types-Personal-PostalTelephone-Relative Merits and Demerits-Selecting a Survey Technique-Survey Administration-Problem-Some Do's and Dont's to Interviewers-Respondents Problems-Treating with Problems-Chapter Based Questions.

158-173

10. DATA PROCESSING Backdrop-What is Data Processing?-Components of Data Processing-Editing Stages-Possible Precautions in Editing-Problems associated with EditingCoding-Classification-Types-Tabulation-Classification of Tables-Structure of Table-What Makes Good Table?-Computer Processing of Data-Chapter Based Questions.

174-186

11. DATA ANALYSIS Backdrop-What is Data Analysis?-Requisites of Data Analysis-Procedure tor Analysis of Data-Techniques of Data Analysis-Univarative Analysis-Bivarative Analysis-Multivarative Analysis-Alternative Tools-Merits and ProblemsChapter Based Questions.

187-213

12. TESTING OF HYPOTHESES Backdrop-What is Hypothesis?-Basic Features-Steps Involved in Hypothsis

214-239

Chapter

Pages

Testing-Types of Errors in Hypothesis Testing-Hypothesis Test in Respect of Interval Data-Test of Difference Between Two Proportions and Independent Samples Test Consuming the Difference of Two Means-Chi-square one Sample Test~er Tests-Test of Difference Among Two or More Means, Independent SamplesAssumptions of ANOVA-Limitations of the Tests of Hypothesis-Chapter Based Questions. 13. INTERPRETATION, REPORT WRITING AND PRESENTATION Backdrop-What is Data Interpretation?-Why Interpretation?-Precaution in Interpretation-The Technique of Interpretation-Research Report-What is Report?The Purposes-Types of Research Reports-Report Writing-Steps in Report Writing-Research Report Layout-Chapter Based Questions. 14. APPLICATION OF MARKETING RESEARCH-PART ONE Backdrop-Traditional Application of Marketing Research-Product Research-Price Research-Distribution Research-Advertising Research-Chapter Based Questions. 15. APPLICATION OF MARKETING RESEARCH-PART TWO Backdrop-I. Data Base Marketing-2. Relationship Marketing-3. Measurement of Brand Equity-4. Consumer Satisfaction and Its Measurement-5. Internet Marketing and Marketing Research-Chapter Based Questions. 16. SKILL DEVELOPMENT Backdrop-Skill Development Case One-Skill Development Case Two-Skill Development Case Three-Skill Development Case Four-Skill Development Case Five.

* * * * * *

240-252

253-280

281-305

306-326

"This page is Intentionally Left Blank"

INTRODUCING MARKETING RESEARCH BACKDROP As marketing research is to be introduced, one should know what marketing research means? How it came into existence? What is its nature? What is its Scope? Difference between market research and marketing research. What is the relation with other departments of the organization? Organization of research department, position of marketing research is India. Its role and limitations. Marketing Agencies in marketing research. The chapter ends units Chapter Based Questions.

This is the age of speed where decisions are to be made not only in time but they are to be sound. There is vast difference between "making a decision" and making "a sound and timely decision." Management is the process of decision making where the organisational problems are waiting in queue for best possible alternative solutions. Decisions are not made in Bolation-nor it is a guess work or taking a blind chance. Good decisions are based on information which is the starting point of marketing research. Modern Management 'Guru' Dr. P.F. Druc4er observed rightly. "What ever a manager does he does through decisions ... Management is always a decision making process ... the important and difficult job is neve to find the right answer, it is find right questions. For there are a few things as useless-if not dangerous-as the right to answer to management question ... not is it enough to find the right answer, more important and more difficult is it to make effective the course of action decided upon" . Management is not concerned with knowledge for its own sake; it is concerned with the performance. This is an era of information explosion. Information is of central importance to good management. Virtually, every one agrees over the point that quality of the available information determines the quality of decisions he makes. The manager is particularly concerned with having complete and high quality information available since his job of planning an, no body is questioning. It is really a headache of the researchers. It is really upheal task to deternum·he accuracy. Even well known research agencies do not hesitate to fabricate and collect inaccurate if ,formation. If researcher uses this kind of information, his findings are sure to fail. 3. It Needs Modification: The secondary data suffers from three kinds of variations which make him to modify the information. These variations are: (1) the units of measurements may be different than needed; (2) The definitions of data classes may differ from what are his needs; (3) The data may be obsolete in sense practically useless for the current project though it was very apt in different situation. It calls for careful scanning of information before he accepts. His position is like washing a dirty linen. It pays to construct a new house rather than repairing the old one. 4. It Warrants Process of Evaluation: Though secondary data is easily available in ready fonn, the researcher faces special problems that distort his data needs unless he evaluates the data. The data evaluation is with respect to a (a) data relevance, (b) data credibility, (c) data objectivity, and (d) ValidHy - i.e, proof. The researcher is to be very careful while collecting secondary data, it should be from original source and not from second or third source. For instance, census figures are to be taken form Census Report published by Government of India whic...~ becomes a primary source whereas the figures quoted in articles or newspapers-a second source.

SOURCES OF SECONDARY DATA There are wide varier] of sources of information which can be classified on a scientific bases. The following chart given classifies the sources in a nutshell. A. Internal Data Internal data is one which is campiled by the researcher's firm from the normal operation:; within its premises. These include credit records, shipments, orders got and placed, sales results, various expenses as administrative, financial and selling and distribution, detailed operating statements, general and functional budgets-revenue and capital, inventory records, input costs as materials, labour, incidentat previous research reports and so on. These can be multiplied in more details. Internal secondary data are collected in mcmy firm in such an unorganised manner that even the researchers known for having the proper knowledge of such data available within the firm, seek these from extemal's0urces. This is mainly due to the fact that the researchers become crazy to search for data from outside sources, whicp should have been otherwise collected with much ease and lesser costs by using less formal methods: Here, researchers are expected to know how the firm is recording and compiling the data which the res.::arche!· :reeds. For both research and administrative purpose, the internal data is recorded and compiled in a scientific manner. It is because the internal data is so closely interwoven because performance of one department depends on another and over all performance of one department depends on another and over all performance all the departments. The importance is now realised so much that they have independent MIS department which records, analysis, evaluates, stores, retrieves and disseminates

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MARKETING RESEARCH

I

SECONDARY DATA

!

I

I

Internal

I

Government Sources

I Reports of Census Department

I

!

! Central government Records

~

~ Industry Sources

State government Records

Trade Publications

I

Indexes, Guides Directories, Abstracts and own

Commercial Sources

~

I

+

Different internal reports prepared by the firm

I

External

I

~

Commercial Agencies AdvertingMarketingAgencies

!

Publications of Trade Association Professional Bodies

! Miscellaneous Sources

!

Reports from Institutes, Accademic Quarters

!

Individual firrns' Publications

Fig. 8.01. Sources of Secondary Data.

such data effectively. Data banks are created in the firm's having a good marketing information system to avoid unwanted redundant paper explosion and wastage of human talents in undesired duplication of data files. In central data bank all the data are put in a central pool and managers needing any data for decision-making can make use of such data pool. This has becomes much easy with computerisation. B. External Data External data are generated, gathered from countless of events and sources outside the firm's premises. Fortunately, we have pretty large number of sources from which data can be extracted. Thousands and thousands of books and periodicals are published each year in each country providing the researcher a wealth of information so much so that he is at sea as to what pick and what not to pick. To start with, researcher should have perfect knowledge and use of indexes, abstracts and directories so that he can know the sources, depth and breadth of knowledge contained and can pick whichever information he needs. A good researcher trains himself in this skill development so that valuable time can be better utilised instead of wasting it. He has the 'aids' that really help him in locating the right source-with full details. These are indexes or indices abstracts directors and other types of guides.

PROCESS OF DATA COLLECTION

141

An 'index' presents only the minimum data about a publication that is restricting itself to data covering the author or authors, publishers, date of publication and editions. An 'abstract' presents the basic contents of a publication in capsule form. Again, we have directors and guides specialising in a particular area where all information is given indicating the sources. Again, in case of libraries, we have indices and catalogs either subject wise or authorise-which are presented separately and one cross verifies another giving the right source, locations and the like.

SOURCES OF EXTERNAL SECONDARY DATA Broadly, these sources are classified in to four broad categories as government commercial sources, industry sources and miscellaneous sources. Each has further ramification. 1. Government Sources: Government sources are subdivided into the major categories such as Reports of Census Department, Central Government Records, State and Local Government Records.

The Department of Census collects, classifies the data over a period of time which definite Census of population, housing, agriculture, business, manufactures, industries, minerals, transportations, communications and governments and the like. Though universal in nature the data is rendered of less use because, there wide gap between the dates of collection and publication. Except this greatest drawback, it provides exhaustive information duly classified on all the subjects cited above. Central Government Records stem from departments of health, education, social-welfare, industries, agriculture, housing, banking, marketing, communication, and the like where data is maintained regularly and updated in case of each department. A researcher can tap any information from departments of Central Government from Central Government Secretariat, New Delhi. State and Local Government Records are maintained by each State and Union Territory and the local government at the rock bottom. State Government records are collected Division wise, districtwise, tehsilwise or talukawise and even village wise where the D. S. O-District Statistical Officer provides the details collected and updated. The lowest level source can be Panchayat Officers. 2. Commercial Sources include all Marketing Research and Advertising Agencies that provide good deal of information. The best examples of this kind can be Indian Marketing Research Bureau (I M. R. B). It is of Hindustan Thomson Associates Ltd., National Advertising Services Private Limited (NAS) ORG-Operations Research Group, INS-Indian Newspaper Society, ABCI-Audit Bureau of Circulation of India, N.A.S.-National Advertising Services Private Limited. There and other organisations collect and analyses the marketing data cover nearly all aspects of marketing. The researchers seeking information will have to spare for reasonable charges in one form or the other. 3. Industry Sources stand for all researches conducted by Institutes at national and state levels which are published. These include Management Institutes, Associations. Take the example of Indian Institute of Foreign Trade (11FT) Which conducts researches and publishes in periodicals ranging between a month and year. Indian Institutes of Managements and Universities have both published and unpublished information. Professional Institutes and Associations publish quarterlies, annual reports. In case of A.I.M.A.-All India Management Association-published monthly magazionIndian Management. It has State level chapter and regional chapter which publish journals quarterly. We do have all India Accounting Association (A.I.A.A) publishing quarterlies. Again, Institutes of Company Secretaries, Chartered Accounts Cost and Management Accounts of India-namely "Chartered Secretary"-"Chartered Accountant" and "Management Accountant" which are monthlies. Again, Trade Association of various trades namely, trading and manufacturing activities publish good deal of information useful to their members say, Hotel Owners Association, Poultry Farmers

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MARKETING RESEARCH

Association, where practically on all lines of and commodities full details are given. These publications give A-Z information covering all dimensions. Large and famous business firms are also busy in publishing data concerning their internal operations and progress achieved. These are mostly annual reports where rich and updated information is available or vital parameters. Again, there are certain other general publications that are very much use for researcher's angle published by large number of individual firms. 4. Miscellaneous Source include all those researches which are completed by individual researchers namely dissertations, monographs and theses. There are certain good projects completed by individual research institutes and university departments. Certain research abstracts are also published by some association and institutes namely, All India Management Association publishes Social Science Research Abstracts where is abstracts of different research article published in various journals are included. The best example is that of Indian Institute of Management Ahmedabad publishes abstracts of individual research conducted in management in its quarterly journal titled 'Vikalpa'. The researchers of interest can have an overall view of research articles from these abstl acts and locate other journals from abstracts given as reference. The renowned group of newspapers say, Times of India Group, Indian Express, The Hindu, they have their monthlies, quarterlies, annuals-like India, Manorama, The hind";J-alIDual numbers which are very valuable. Last but not the least, not all the libraries, besides books and periodicals, maintain records of data contained in the forms of various charts, reports, pamphlets, dissertations and monographs. These data are potentially useful from the angles that the researcher wants to see some libraries keep these materials containing, data in specially designed vertical file. There vertical files service Catalog is also available in some libraries that give the indication that where a particular data source can be located in the library. In the library at reception table-side by indexing box cabinets are arranged and that is the guide to proceed to a particular source and location.

PRIMARY DATA WHAT IT MEANS? In case secondary data are available which are relevant adequate, timely and matching in all "espects to solve the research problem defined by the researcher, there is no need for going in for Jrimary data. Unfortunately, in majority of the cases, researches will have to go in for primary data in lddition to secondary data. Primary data is one which is collected in full details regarding his research Jroblem. Primary data is the first hand data collected by means of observation and communication.

BASIC MEANS OF GETTING THE PRIMARY DATA The experts have accepted two basic methods or means of getting the primary data namely, 'Communication' and 'Observation'.

COMMUNICATION METHODS Communication involves the questioning the selected respondents to get the detailed desired information using a questionnaire. These questions to the respondents may be asked either orally or in writing or both and responses are recorded in the response sheet or questionnaire. In other words, communication method is the method of designing questionnaire with a view to collect the requisite information. The questionnaires may be classified in main four types namely, Structured non-disguised, Stmctured distinguish, non-Structured, non-disguised and non-Structured, disguised. Some research experts prefer to call the 'non-disguised' as 'direct' and 'disguised' as 'indirect' questionnaires.

PROCESS OF DATA COLLECTION

143

A 'structured' questionnaire is a formal list of questions framed to get the facts. Here, the investigator or the interviews asks the questions strictly according to pre-arranged order. Thus, a market researcher is interested is knowing the amount of say expenditure incurred on different types of clothing say-cotton, woollen or synthetic, by different households classified according to their income, he may design a set of questions seeking this factual informations. Even if investigation or interviewers are appointed by the research on his behalf, those persons are to follow the expected order contained in the questionnaire. They are not having freedom to change the logical sequence. A 'structured' questionnaire can be of two types namely 'disguised' and "non-disguised" or 'indirect' and 'direct' instead. This classification is founded on whether the purpose of the survey is revealed or undisclosed to the respondent. A "Structured non-disguised" questionnaire is one where the listing of questions is in a prearranged order and where the purpose is to reveal the respondent the enquiry so made. Majority of marketing research studies use this type of questionnaire. A "Structured disguised" questionnaire is one where the research does not disclose the object of the survey. He is of the opinion that if the respondent comes to know the purpose of the survey he not be open or objective in giving the needed information and as such, its purpose may be defeated. Therefore, he is very particular as to not to divalge the purpose of the investigation or enquiry. The question arises as to what is the correct "pproach. Experts feel strongly that the respondent should be taken into confidence and clearly told that survey is being conducted for a particular purpose so that the respondent releases the relevance and gives the desired answer accurately because, he is not kept in dark. The questionnaires of this type are known as "Structured and non-disguil::ed" questionnaires. In marketing research these types of questionnaire are widely used. Coming to the other end, a "non-structured" questionnaire is one in which the questions are not structured as per pre plan. That is, the order in which the questions are to be asked to the respondents is left entirely to the researcher. He, therefore, asks the questions in the manner in which he deems fit in a given situation; he has the full freedom to handle the questionnaire. He may, infact, only have certain main points on which he may develop the questions at the time of actual interview. Therefore, a "non-struc'ured" questionnaire is devoid of rigidity and the researcher or the investigator has much lee-way in choosing the order as well as the specific content of questions. Generally, such un-structured questionnaires are used in exploratory research where some respondents are contacted. On the basis of answers received, consequently, that is well-structured questionnaire understanding of the problem on hand only after the exploratory research. Questionnaires of this kind can be divided into two subgroups namely, "non-structured and non-disguished" and "non-structured and disguished" questionnaires. "Non-structured and non-disguised" questionnaires are one where the purpose of enquiry is disclosed to the respondents. On the other hand, "non-structured and disguised" questionnaires the purpose of the enquiry is kept-closely guarded.

RELATIVE MERITS AND DEMERITS OF STRUCTURED NON-DISGUISHED QUESTIONNAIRES MERITS 1. It facilitates the collection of information in a systematic and orderly manner as tlle questions have been formulated as per the pre plan of the researcher.

2. As the questions are by each interviewer happen to be identical and are asked in the logical

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MARKETING RESEARCH

sequence, the informatiun i.. and recaptulates the main points of the study. That means this drunk deals with the summary of ti e report as well as the main conclusions. The latter part is based on the findings alread} fh·en. In order of facilitate the reader, the conclusions so reported in this part should give reference pdges, paragraphs or tables in the finding section.

7. Recommendations: Not all research reports contain the recommendations. However, whenever the study has been commissioned by the management which expects the research will not only trace the problems but will recommended certain measures to do away with the problem so faced. Such recommendations should be given clearly and logically.

INTERPRETATION, REPORT WRITING AND PRESENTATION

251

8. Concluding Summary : It is not possible for every reader to got enough the entire matter of research study in detail. Those who do not have time and patiences, and are basically interested in snap judgements, t.'lere is need for the summarised matter. Hence, it is customary to find that the main text ends with the summary of part I and part II before we got of part III the end matter.

III. THE END MATTER The end matter comprises of appendices, bibliography and the index: 1. Appendices: Appendices section is earmarked for giving supplementary information which is technical in nature but which supports the body of the report and which can not be given in the body itself. If at all it is given as a part of the main body, it is likely to distort the tocus of the reader on the main theme and is likely to be the victim of derailment. Generally, large and complex substantial tables, technical terms, copies of the questionnaire, instructions to the field staff, the definitions of terms used with specific meaning and connotation for the purpose of research study and any other material supposing the research work are given as the part of appendices. There can be mere than one appendices. There should be separate appendix for each type of material. Sometimes, the maps, graphs, diagrams, which are in excess can be given as supporting material. 2. Bibliography: Research study needs consultation of the available literature. Hence, the researcher is to make open clarification of the sources referred. This bibliography is basically divided into books, reports, periodicals, news papers and also websites. Here, the researcher is to give these separately in alphabetical order the name of the author, authors name and place and publisher, year and month publication is case of books and magazines along with pages referred. In case of websites, clear details of websites are to given. 3. Index: An index shows different topics and the relevant page numbers in the report, should also be given. Index is prepared on an alphabetical order. Index is not necessary in case the research report is short. Giving inde...: helps easy location of the matter an the part of reader.

A. WRITE SHORT NOTES ON : (1) Data interpretations, (2) Reasons for interpretations, (3) Precautions is interpretation, (4) The technique

of interpretation, (5) Research report, (6) Purposes of research report, (7) Types of research report, (8) Technical report, (9) Popular report, (10) Steps in report-writing, (11) Layout of research report, (12) Bibliography. B. SHORT ANSWER QUESTIONS: 1. What is data interpretation?

2. Why interpretation is a must? 3. What precautions are to be taken in interpretation? 4 What IS the technique of interpretation? 5. What is a research report?

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MARKETING RESEARCH

6. What purposes a research report serves? 7. What is popular report? 8. What is technical report? 9. What steps are involved in report truly? 10. What is the layout of a research report? C. ESSAY TYPE QUESTIONS: 1. What is interpretation? What its importance in research study?

2. What is interpretation? What precautions are taken for good interpretation? 3. What is interpretation? What is the technique of interpretation? 4. What is a research report? What purposes it serves? 5. What is a research report? How do you classify these research reports? 6. What is report writing? What are steps in report writing? 7. What is the format of research report? Explain the components. 8. Explain the "End part of the report" art sub-sections each with practical example or examples. 9. Design a typical research report an any research topic in marketing research subject. 10. Explain with examples the preliminary pages section of report.

* * * * * *

APPLICATION OF ·MARK,ETING·, RESEAR.CH - ,PART.ONE .

.

. .

BACKDROP ' The practical utility of any subject lies in its application of tools, methods, techniques, procedures based on the principles in solving the day-tQ:-day pI'Qblems faced l>y the l>usiness cOlllil\unity. All·the previous chapters from One through Thirteen were devoted to the theoretical or text matter of Malketing Research. However, this chapter is totally devoted to the possible applications of Marketing Research .in solving the problems faced by maketers and marketing world which is highly volatile and dynamic calling for sound and quick decisions. Traditionally, all marketing research was confined to the Ps of the marketing namely, Product, Price, Place and Promotion. The world has now changed its colour, scope, as changes in technologies and governmental policies and the outlook of consumers. Today, the marketer is to shoot at not stationary g~e but one which is flying. Hence, the recent dev~lopm~ts that have taken place have widened the scope of application of marketing research iii. the backgroimd of globalisation; liberalisation and no more the firms can survive as local players. One who is a global .player is local player too but opposite is not true. Hence, marketing research applications have gone . b'eyond the four Ps ofnuirketing. In fact, the Ps are ever increasing making mar-ketingresearch capable of solving the emerging problems of modern or ultra-modem business world of twenty first century. Hence, this chapter is devoted to cover up only traditional applications of marketing research. The chapter ends with the Chapter Based Ques·tions. '. '.

TRADITIONAL APPLICATIONS OF MARKETING RESEARCH I. PRODUCT RESEARCH Satisfactory product is the core of any business enterprise and·is the most trangible expression offered by the firm in response to consumer needs and wants. Product research answers the questions associated with the products of the company and its competitions. Product research aims at finding out the product image which will be compatible with the self-image of consumers and to acertain

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MARKETING RESEARCH

whether the product image really matches with the self-image of consumer. The major areas of product research are: •

Evaluating performance of company's products in terms of sales, profits and market segments.

• • •

Determining modification in the existing product or products. Determining consumer acceptance of new products. Undertaking comparative studies of the competitive products.

• •

Evaluating new competitive products. Determining current or new uses of the existing product or products.

• • •

Market testing of new products. Testing packaginge and label designs. Appraising diversification and simplification of product plane;.

NEW PRODUCT DEVELOPMENT AND MARKETING RESEARCH No phase of marketing has received greater attention in industry during recent years than has . new product planning and development. In most industries, competition pressures require a constant flow of technologically new products or improvements in the existing ones if the corporate sales and profits are to be sustained and enhanced. That is why, companies do not hesitate to invest a sizeable investment in research and developmental actiy,ities. Then question is what is a new product? A new product is a product that is new to the company introducing it even through it might have been made in some form by others. New products are those that create unique problems for management especially is terms of technical development, testing and commercialisation.

STEPS IN NEW PRODUCT DEVELOPMENT A new product is the culmination of a process a series of steps beginning with generation of ideas and procedure to the commercialisation of full-scale marketing of the product. It is the general process that conceives, develops and brings to the market the new product. There are six logical steps in this creative process of new product development namely, Idea Generation, Screening, Business Analysis, Product Development, Test Marketing and Commercialisation.

MARKETING RESEARCH AND IDEA GENERATING The first vital step is the generate ideas, for new products are from new ideas. Product ideas generation means fusion of perceived need with recognition of a technical opportunity. That is, t!te perceived need may be new or old-apparent or latent--