PROCEDURE IN CONDUCTING MARKETING RESEARCH

In marketing research, the following procedure is generally adopted.

1. Defining the problem and its objectives

2. Determine the information needed and the sources of information

3. Deciding on research methods

4. Analysis and Interpretation of data

5. Preparing research report

6. Follow-up

1. Determine the Problem

The first basic step is to define the marketing problem in specific terms. Only if the marketing researcher knows what problem management is trying to solve, he cannot do an effective job in planning and designing a research project that will provide the needed information.

After the problem has been defined, the researcher’s task is to learn as much about it as the time permits. This involves getting acquainted with the company, its business, its products and market environment, advertising by means of library consultation and extensive interviewing of company’s officials. The researcher tries to get a “feel” of the situation surrounding the problem. He analyses the company, its markets, its competitions and the industry in general. This phase of preliminary exploration is known as situation analysis. This analysis enables the researcher to arrive at a hypothesis or a tentative presumption on the basis of which further investigations may be done.

When a problem has been identified, objectives of the research have to be determined. The objectives of the project may be to determine exactly what the problem is and how it can be solved.

2. Determine the Specific Information Needed and Sources of Information

The researcher should then determine the specific information needed to solve the research problems. For successful operations of production and sales departments, what information is required depends to a large extent on the nature of goods and the method used for placing it in the hands of the consumers.

The investigator must identify the sources from which the different items of information are obtainable and select those that he will use. He may collect information through primary data, secondary data or both.

Primary data are those which are gathered specifically for the project at hand, directly e.g. through questionnaires and interviews. Primary data sources include: Company salesmen, middlemen, consumers, buyers, trade associations executives, and other businessmen and even competitors.

Secondary data are generally published sources, which have been collected originally for some other purpose. They are not gathered specifically to achieve the objectives of the particular research project at hand, but are already assembled. Such sources are internal company records; government publiscations; reports and journals, trade, professional and business associations’ publications and reports, private business firms’ records, advertising media, University research organizations, and libraries.

3. Deciding on Research Methods

If it is found that the secondary data cannot be of much use, collection of primary data become necessary. These widely used methods of gathering primary data are: (i) Survey, (ii) Observation, and (iii) Experimentation. Which method is to be used will depend upon the objectives, cost, time, personnel and facilities available.

(i) Survey Method: In this method, information is gathered directly from individual respondents, either through personal interviews or through mail, questionnaires or telephone interviews. The questions are used either to obtain specific responses to direct questions or to secure more general response to “open end” questions.

(ii) Observational Method: The research data are not gathered through direct questioning of respondents but rather by observing and recording their actions in a marketing situation. The customer is unaware that he/she is being observed, so presumably he/she acts in his/her usual fashion. Information may be gathered by personal or mechanical observation. This technique is useful in getting information about the caliber of the salesman or in determining what brands he pushes. In another situation, a customer may be watched at a distance and noticed, what motivates him to purchase

(iii) Experimental Method: This method involves carrying out a small-scale trial solution to a problem, while, at the same time, attempting to control all factors relevant to the problems. The main assumption here is that the test conditions are essentially the same as those that will be encountered later when conclusion derived from the experiment are applied to a broader marketing area. The technique consist of establishing a control market in which all factors remain constant and one or more test markets in which one factor is varied.

4. Analysis and Interpretation of Data

After the necessary data have been collected, they are tabulated and analyzed with appropriate statistical techniques to draw conclusions and findings. This stage is regarded as the end product.

5. Preparation of Report

The conclusions and recommendations, supported by a detailed analysis of the findings should be submitted in a written report. The report should be written in clear language, properly paragraphed, and should present the facts and findings with necessary evidence.

The choice of the words, adequate emphasis, correct statistical presentation, avoidance of flowery language and ability to express ideas directly and simply in an organized framework are essential for a good report