Marketing Research Literature Review

Marketing research specifies the information required to address these issues, designs the methods for collecting information, engages and implements the data collection process, analyzes, and communicates the findings and their implications.. ” Briefly it is a systematic design, collection, analysis, and reporting of data and findings relevant to a specific marketing situation facing the company, allows management to make the changes necessary for better results through adopting a proactive approach. Therefore, if a company wants to know what type of products or services would be profitable it should make a market research.

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Furthermore, a comprehensive research will enable the company to know about the product imperfections (if there are) and to know if it has been able to satisfy customers’ needs. It attempts to provide accurate information that reflects a true state of affairs. Due to market research the company can formulate a viable marketing plan and estimate the success of its existing plan. There are two main sources of marketing research information: Primary marketing research is collected for the first time if the company has enough money to finance it, but in most case it is the second more accurate one.

It is original and collected for a specific purpose, or to solve a specific problem. Primary research delivers more specific results than secondary search, more expensive and time consuming, which are an especially important consideration when the company IS launching a new product or service. There are many ways to conduct primary research. By customizing tried-and-true approaches, focus groups, surveys, field tests, interviews or observation, you can gain information about your target market.

Primary research is generally based on sampling techniques and requires statistical methodologies. The sample size could be as small as 1 percent of the market and thus the information and results gathered are highly accurate. Secondary racketing research or desk research is generally used when a company considering, extending a business into new markets or adding new services or product lines, because it already exist in one form or another. This information is based on studies previously performed by government agencies, chambers of commerce, trade associations, and other organizations.

There are number of sources available to the marketers, which are the following: Business libraries, Public records, Trade associations, Websites, National/international governments, Informal contacts and Professional institutes and organizations. That is why secondary research is relatively cheap, and can be conducted quite quickly. However, its main disadvantage is that the information gathered may be old and obsolete, therefore results of analysis may be inaccurate. Further, it is not necessary that the earlier studies were conducted with the same objectives as required in the current situation.

According to Tom Owens (2008) Stages of research are the following: 1)Define the problem, define the research objective 2) Developing the plan for collecting information 3) Implementing the plan- Collecting and analyzing Data 4) Interpreting Data Reporting the Findings Firstly, the decision problem faced by management must be defined clearly in form of questions that obtain the required information to make the decision. Secondly, the company will determine the research method – Surveys are typical, but could also include focus groups or 1 -on-I in-depth interviews. If using a survey, will it be by phone, mail, in-person, web, etc.

Thirdly, the company should determine the sample size, to know how many surveys are needed to provide reliable information, track productivity and costs and resolve any obstacles that come up. Fourthly, analyzing data should be done y preparing summary statistics for each question, broken out by relevant us Bosporus if necessary. May include coding of open end questions and advanced statistical techniques. Finally, Report the results for example create graphs, charts and text that communicate the findings. Conclusions/ recommendations should be actionable regarding the defined problem.

Hopefully it leads to a solution for the problem. Methodologically, marketing research uses four types of research designs, namely. ; Quantitative marketing research is about measuring a market and quantifying that measurement with data. Furthermore, it can be also used to measure customer awareness, attitudes and behavior in a market by taking a statistical sample of customers. Such techniques are extremely powerful when combined with techniques such segmentation analysis and mean that key audiences can be targeted and monitored over time to ensure the optimal use of the marketing budget.

Most often the data required relates to market size, market share, penetration, installed base and market growth rates. This type of research is generally used to draw conclusions, uses random sampling techniques so as to infer from the sample to the population. It is convergent reasoning rather than divergent reasoning. The traditional empirical quantitative technique in market research is the survey questionnaire, administered to a stratified or random sample of a population.

Finally, in market research, extensive use is made of sampling from which, through careful design and analysis, Marketers can draw information about the market. ; Qualitative marketing research means “quality” and deals with processing data as words, emotions, feelings, emotions. Conversely, and importantly, it does not mean “quantity. ” Qualitative research methods are seed to define a problem and generate hypotheses. These methods are designed to talk to a relatively few people in the target audience of interest that is why it is not generalize to the whole population.

They are however, very valuable for exploring an issue and are used by almost all researchers. They can be better than quantitative research at investigation level in order to understand what drives and motivates behavior. Qualitative marketing research is generally used for exploratory purposes to plumb the depths and range of buyer attitudes and beliefs, project, or forecast quantity. Such as PPTP interviews, observational techniques: ; Depth interviews are the main form of qualitative research.

Here an interviewer spends time in a one-on-one interview finding out about the customer’s particular circumstances and their individual opinions. ; Group Discussions is a consumer research method. Here several costumer are arranged to have a discussion with the researcher. Group discussions are rare in business markets, unless the customers are small businesses. ; Observational techniques: The researcher observes social phenomena in their natural setting. In detail, researchers go to customers’ environments to watch and interview people in context.

Directly observing people and asking questions that refer to objects and actions at the site gives researchers a rich understanding of the issues customers face. Although, observations can occur cross-sectional (observations made at one time) or longitudinally (observations occur over several time-periods). The main advantage of observational research is flexibility. The researchers can change their approach as needed. Also it measures behavior directly, not reports of behavior or intentions. ; Experimental techniques are used for the controlled testing of causal processes.