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MARKETING MANAGEMENT
UNIT – V
MARKETING RESEARCH & TRENDS IN MARKETING
Marketing Information System – Research Process – Concepts and applications : Product – Advertising –
Promotion – Consumer Behaviour – Retail research – Customer driven organizations - Cause related
marketing - Ethics in marketing –Online marketing trends.
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Table of Contents
5.1 Marketing Information System .................................................................................................................. 2
5.1.1 Meaning .............................................................................................................................................. 2
5.1.2 Definition ............................................................................................................................................. 3
5.1.3 Characteristics of MIS.......................................................................................................................... 3
5.1.4 Importance of MIS............................................................................................................................... 4
5.1.5 Scope of MIS........................................................................................................................................ 4
5.1.6 Components of a marketing information system ............................................................................... 5
5.1.7 Difference between Marketing Research and Marketing Information System .................................. 8
5.2 MARKETING RESEARCH
. ........................................................................................................................ 9
5.2.1 Meaning.............................................................................................................................................. 9
5.2.2 Definition ............................................................................................................................................. 9
5.2.3 Characteristics of Marketing Research ............................................................................................... 9
5.2.4 Importance of Marketing Research .................................................................................................. 10
5.2.5 Marketing Research Process ............................................................................................................. 11
5.2.6 Data Sources and Collection in Marketing Research ........................................................................ 13
5.3 Product Research ..................................................................................................................................... 18
5.3.1 Importance of product Research ..................................................................................................... 19
5.3.2 Product Research in New Product Development.............................................................................. 19
5.4 Advertising and Promotion Research....................................................................................................... 20
5.4.1 Purpose of Advertising and sales promotion .................................................................................... 21
5.4.2 Importance of Advertising Research ................................................................................................. 22
5.4.3 Process of Advertising Research ....................................................................................................... 23
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5.5 Consumer Behaviour Research: Consumer Research .............................................................................. 24
5.5.1 Consumer Research Process ............................................................................................................. 25
5.6 Retail Research ......................................................................................................................................... 26
5.6.1 Components of Retail Research ........................................................................................................ 27
5.6.2 Developing a Methodology for Retail Research................................................................................ 27
5.6.3 Research Process in Retail ................................................................................................................. 28
5.7 Customer Driven Organization ................................................................................................................. 29
5.7.1 Introduction ...................................................................................................................................... 29
5.7.2 Characteristics of Customer-Driven Organisations ........................................................................... 29
5.7.3 Elements of Customer-Driven Organisations .................................................................................... 30
5.7.4 Strategies of Customer Driven Organisation..................................................................................... 31
5.7.5 Stages in Customer Driven Organisation .......................................................................................... 31
5.8 CAUSE-RELATED MARKETING .................................................................................................................. 32
5.8.1 Objectives of Cause Related Marketing ............................................................................................ 33
5.8.2 Types of cause related Marketing ..................................................................................................... 33
5.8.3 Cause Related Marketing in India ..................................................................................................... 34
5.9 ETHICS IN MARKETING ............................................................................................................................. 35
5.9.1 Introduction...................................................................................................................................... 35
5.9.2 Ethical Norms and values for Marketers ........................................................................................... 36
5.10 Online Marketing ................................................................................................................................... 37
5.10.1 Introduction .................................................................................................................................... 37
5.10.2 Objectives of Online Marketing ...................................................................................................... 37
5.10.3 Online Marketing Trends and Techniques ...................................................................................... 38
5.1 Marketing Information System(2)
5.1.1 Meaning
A system that analyzes and assesses marketing information, gathered continuously from sources inside and
outside an organization. Timely marketing information provides a basis for decisions such as product
development or improvement, pricing, packaging, distribution, media selection, and promotion. See also
market information system.
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Marketing information systems is an integrated combination of information, information processing and
analysis, equipment and tools (i.e., software and hardware) and information specialists who analyze and
interpret the collected information and provide it to decision-makers to serve their analysis, planning and
control needs.
Gathered continuously from sources inside and outside an organization, with analysis and assessment of
marketing information by this type of computerized system. Product development or improvement, pricing,
packaging, distribution, media selection, and promotion succeed or fail based on the timely delivery and the
worth of this information.
5.1.2 Definition
According to Cundiff, Still and Govoni, "Marketing information system is an organized set of procedures,
information handling routines and reporting techniques designed to provide the information required for
making marketing decision".
According to K. Cox and K. Gonod, "MIS is a set of procedures and methods for the regular and planned
collection, analysis and presentation of information in making marketing decisions".
5.1.3 Characteristics of MIS (8)
Inter Related Components: Marketing information system is a set of inter-related components. They consist
of people, equipment, and procedures. Computer hardware, software, and information communication
technology are used to design and deliver it. '
Processing: Marketing information system collects, processes, analysis, stores, retrieves, and disseminates
information for decision marketing and control. Its output consists of various reports.
Timeliness: Marketing information system provides the right information to the right people at the right
time. Information if received late has no use.
Accuracy: Marketing information system provides accurate and reliable information. Past and present
information are more accurate than future forecasts. It also provides complete information.
Consistency: Market information system provides consistent information. All data are based on same
definition, assumptions, and time period.
Accessibility: Market information system is easily accessible. The information is properly secured. But it is
easily available to authorized persons. Information communication technology has facilitated accessibility.
It also avoids information overload.
Future Oriented: MIS is future oriented. It anticipates the problems and provides a solution to solve these
problems.
Use of Computers and Statistical Tools: MIS is operated with the help of computers and analyst uses
various statistical and quantitative decision-making tools to provide the solution for a defined problem.
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5.1.4 Importance of MIS
In order to make good marketing decisions, marketing managers require high quality information about the
market. Poor information never led to a successful marketing decision except by sheer chance. There are
numerous methods of marketing research ranging from educated guesswork to hard facts. One needs to be
aware of the assumptions and limitations in order to know when to use a particular one and how to interpret
and apply the generated information. Some of the importance of MIS is as follows:
Help Understand Customer's Needs and Wants: The marketing research process is only one of the sources
of information for the MIS. It is worth remembering that it is all the sources of information which
contribute to the MIS which help us understand our customer's needs and
Help Assessing Needs of Customers: An MIS has to meet the needs of its customers (users) and, to do that;
those needs must be assessed first. Identifying what information managers would like to have? Identifying
the information they actually need? Identifying what information is feasible to offer them?
Capture Interaction Between Firm and Customers: It has employed the database to capture the interactions
between a firm and its customers at each point of time and utilizes the data analysis to search for patterns in
these interactions.
Attracts Potential Customers: It provides the most attractive potential customers besides providing clues in
customizing the products, pricing and promotions of a product.
Helps Assessing Customer's Buying Behavior: When utilized in the proper manner, the database marketing
could provide insights into the customer's buying behavior across the product categories, so that the
companies could devise their program and plans to the "whole customer", then the customer can be seen
only through the narrow view of their own products and brands.
5.1.5 Scope of MIS (8)
Market Monitoring: During the use of market research and marketing intelligence activities, MIS can enable
the identification of emerging market segments, and the monitoring of the market environment for changes
in consumer behavior, competitor activities, new technologies, economic conditions and governmental
policies.
Strategy Development: MIS provides the information necessary to develop a marketing strategy. It supports
strategy development for new products, product positioning, marketing communications (advertising, public
relations, and sales promotion), pricing, personal selling, distribution, customer service and partrierships
and alliances. MIS provides the foundation for the development of information system-dependent ecommerce strategies.
Strategy Implementation: MIS provides support for product launches, enables the coordination of marketing
strategies, and is an integral part of sales force automation (SFA), customer relationship management
(CRM), and customer service systems implementations. MIS enables decision makers to more effectively
manage the sales force as well as customer relationships. Some customer management software companies
are extending their CRM applications to include partner relationship management (PRM) capabilities. This
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has become increasingly important as many marketers are choosing to outsource important marketing
functions and form strategic alliances to address new markets.
Functional Integration: MIS enables the coordination of activities within the marketing department and
between marketing and other organizational functions such as engineering, production, product
management, finance, manufacturing, logistics, and customer service.
Support management and decision making: MIS are intended to support management decision making.
Wider application: MIS are not simply system limited to management. It also includes operational, sales
and marketing process – oriented systems. Which serves in daily operational activities
5.1.6 Components of a marketing information system(16)
A marketing information system (MIS) is intended to bring together disparate items of data into a coherent
body of information. An MIS is, as will shortly be seen, more than raw data or information suitable for the
purposes of decision making. An MIS also provides methods for interpreting the information the MIS
provides. Moreover, as Kotler's1 definition says, an MIS is more than a system of data collection or a set of
information technologies:
"A marketing information system is a continuing and interacting structure of people, equipment and
procedures to gather, sort, analyze, evaluate, and distribute pertinent, timely and accurate information for
use by marketing decision makers to improve their marketing planning, implementation, and control".
Figure 9.1 illustrates the major components of an MIS, the environmental factors monitored by the system
and the types of marketing decision which the MIS seeks to underpin.
The marketing information systems and its subsystems
The explanation of this model of an MIS begins with a description of each of its four main constituent parts:
the internal reporting systems, marketing research system, marketing intelligence system and marketing
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models. It is suggested that whilst the MIS varies in its degree of sophistication - with many in the
industrialised countries being computerised and few in the developing countries being so - a fully fledged
MIS should have these components, the methods (and technologies) of collection, storing, retrieving and
processing data notwithstanding.
Internal reporting systems: All enterprises which have been in operation for any period of time nave a
wealth of information. However, this information often remains under-utilised because it is
compartmentalised, either in the form of an individual entrepreneur or in the functional departments of
larger businesses. That is, information is usually categorised according to its nature so that there are, for
example, financial, production, manpower, marketing, stockholding and logistical data. Often the
entrepreneur, or various personnel working in the functional departments holding these pieces of data, do
not see how it could help decision makers in other functional areas. Similarly, decision makers can fail to
appreciate how information from other functional areas might help them and therefore do not request it.
The internal records that are of immediate value to marketing decisions are: orders received, stockholdings
and sales invoices. These are but a few of the internal records that can be used by marketing managers, but
even this small set of records is capable of generating a great deal of information. Below, is a list of some of
the information that can be derived from sales invoices.
Product type, size and pack type by territory
ct type, size and pack type by type of account
ge value and/or volume of sale by industry
By comparing orders received with invoices an enterprise can establish the extent to which it is providing
an acceptable level of customer service. In the same way, comparing stockholding records with orders
received helps an enterprise ascertain whether its stocks are in line with current demand patterns.
Marketing research systems: The general topic of marketing research has been the prime ' subject of the
textbook and only a little more needs to be added here. Marketing research is a proactive search for
information. That is, the enterprise which commissions these studies does so to solve a perceived marketing
problem. In many cases, data is collected in a purposeful way to address a well-defined problem (or a
problem which can be defined and solved within the course of the study). The other form of marketing
research centres not around a specific marketing problem but is an attempt to continuously monitor the
marketing environment. These monitoring or tracking exercises are continuous marketing research studies,
often involving panels of farmers, consumers or distributors from which the same data is collected at
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regular intervals. Whilst the ad hoc study and continuous marketing research differs in the orientation, yet
they are both proactive.
Marketing intelligence systems: Whereas marketing research is focused, market intelligence is not. A
marketing intelligence system is a set of procedures and data sources used by marketing managers to sift
information from the environment that they can use in their decision making. This scanning of the economic
and business environment can be undertaken in a variety of ways, including2
Unfocused
scanning
The manager, by virtue of what he/she reads, hears and watches exposes him/herself to
information that may prove useful. Whilst the behaviour is unfocused and the manager has no
specific purpose in mind, it is not unintentional
Semifocused
scanning
Again, the manager is not in search of particular pieces of information that he/she is actively
searching but does narrow the range of media that is scanned. For instance, the manager may
focus more on economic and business publications, broadcasts etc. and pay less attention to
political, scientific or technological media.
Informal
search
This describes the situation where a fairly limited and unstructured attempt is made to obtain
information for a specific purpose. For example, the marketing manager of a firm considering
entering the business of importing frozen fish from a neighbouring country may make
informal inquiries as to prices and demand levels of frozen and fresh fish. There would be
little structure to this search with the manager making inquiries with traders he/she happens to
encounter as well as with other ad hoc contacts in ministries, international aid agencies, with
trade associations, importers/exporters etc.
Formal
search
This is a purposeful search after information in some systematic way. The information will be
required to address a specific issue. Whilst this sort of activity may seem to share the
characteristics of marketing research it is carried out by the manager him/herself rather than a
professional researcher. Moreover, the scope of the search is likely to be narrow in scope and
far less intensive than marketing research
Marketing intelligence is the province of entrepreneurs and senior managers within an agribusiness. It
involves them in scanning newspaper trade magazines, business journals and reports, economic forecasts
and other media. In addition it involves management in talking to producers, suppliers and customers, as
well as to competitors. Nonetheless, it is a largely informal process of observing and conversing.
Some enterprises will approach marketing intelligence gathering in a more deliberate fashion and will train
its sales force, after-sales personnel and district/area managers to take cognisance of competitors' actions,
customer complaints and requests and distributor problems. Enterprises with vision will also encourage
intermediaries, such as collectors, retailers, traders and other middlemen to be proactive in conveying
market intelligence back to them.
Marketing models: Within the MIS there has to be the means of interpreting information in order to give
direction to decision. These models may be computerized or may not. Typical tools are:
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gramming
These and similar mathematical, statistical, econometric and financial models are the analytical subsystem
of the MIS. A relatively modest investment in a desktop computer is enough to allow an enterprise to
automate the analysis of its data. Some of the models used are stochastic, i.e. those containing a
probabilistic element whereas others are deterministic models where chance plays no part. Brand switching
models are stochastic since these express brand choices in probabilities whereas linear programming is
deterministic in that the relationships between variables are expressed in exact mathematical terms.
5.1.7 Difference between Marketing Research and Marketing Information System(8)
Basis of Distinction
I)
Nature
2) Aim
3) Use
4) Focus
5) Use of
Computer
6) Dependence
Marketing Research
It lays stress on external
information.
M.R. is concerned with solving of
problems.
M.R. operates in fragmented intermittent fashion - on a
project to project basis.
M.R. lays focus on past
information.
M.R. is not computerised
base.
One source of information input into a marketing
information system.
tttttt
5.1.8 Limitations of MIS
Management Information System
MIS uses both types of data internal
external data.
and
MIS is concerned with preventing
and their
problems
MIS
always work on a continuous
solutions.
basis.
MIS is more concerned for
future.
MIS is totally computerised
based.
Mincludes other submarket
I
systems,
research.
S
Installing the Software is Expensive: The cost incurred in setting-up the software and hardware
requirements have made the database marketing expensive in Its establishment.
Requires New Set of Skills: The database often demands new skills and organisations from new analytical
and decision-making skills in sales and marketing to a revamped information system organisation that could
support the entirely new class of users.
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besides
Depends on Database: The database marketing depends on the data quality. While the observational data is
powerful, the corrupted observational data could be 'powerful misleading'. The quality also depends on the
quality of analysis and the extent to which the databases are linked.
Not Preferred: Till now, the database marketing has been primarily used as a tactical tool. MIS may lead to
less reliable and less secure data. MIS system may become slow, large, and hard to manage.
5.2 MARKETING RESEARCH (2)
5.2.1 Meaning
Marketing research is defined as the objective and formal process of systematically obtaining, analysing and
interpreting data for actionable decision making in marketing. Marketing research is a systematic and
objective study of problems pertaining to the marketing of goods and services. It may be emphasised that it
is not restricted to any particular area of marketing, but is applicable to all its phases and aspects.
5.2.2 Definition
The American Marketing Association (AMA) has defined marketing research as, "Marketing
research is the function which links the consumer, customer, and public to the marketer through information
used to identify and define marketing opportunities and problems, generate, refine, and evaluate marketing
actions; monitor marketing performance, and improve understanding of market as a process".
According to Philip Kotler, "Marketing research is the systematic design, collection, analysis, and
reporting of data relevant to a specific marketing situation facing an organisation".
According to Palmer, "Marketing research is about researching the whole of a company's marketing
process".
5.2.3 Characteristics of Marketing Research
Function of Marketing Management: Marketing research operations help the marketing executives to keep
abreast with the environmental changes by providing right information on dynamic environments to
facilitate decision-making. The information generated through marketing research can be used to determine
most appropriate marketing mix. Thus, marketing research is a well recognised and very important function
of marketing management.
Integrated Effort: A teamwork or group effort is needed for carrying out marketing research activities in any
organisation. Research objectives are set by planning executives and data requirement for the
accomplishment of these objectives are determined by the data analyst. The data processor should know the
nature and location of available data to retrieve and process it at the desired time. Thus, marketing research
is an integrated effort.
Systems Approach: Marketing research involves a number of activities, viz., collection, recording,
tabulating, analyzing and interpretation of information. Each of these activities is performed by some
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experts who are supervised by marketing management executives. Thus, marketing research constitutes a
systems approach froni start to finish.
Inter-Disciplinary Process: Marketing researcher collects vast amount of information from various
disciplines, viz; economics, sociology, psychology, etc., and uses various statistical and mathematical
techniques to process this information. Psychological and sociological information is used to study
consumer behaviour. Thus, marketing research is based on inter-disciplinary approach.
Imperfect Science: Studies in marketing research are never exact as it deals with unpredictable and dynamic
human behaviour. The results are always uncertain with certain amount of risk. Thus, marketing research is
based on scientific method and can be termed as science but it cannot be designated as perfect like other
social science, i.e., it is an imperfect science.
Indispensable for the New Product Introduction: Before introducing a new product, the market research is
used to find out suitable avenues and place of the new products. It reveals the various opportunities of new
markets and reveals the methods to reach the markets.
Market-Orientation: The objective of marketing research is to enable the firms to produce the goods and
services acceptable to the customers. It sees that the goods and services must reach the market easily,
quickly, cheaply and profitably. The right course. of action to approach and sustain the market is possible
with suitable marketing research .
5.2.4 Importance of Marketing Research (8)
Marketing research, being as the profound tool for marketing planning, has key importance as given below:
Decision-making Tool: Marketing research is useful for taking marketing management decision. It provides
necessary information and data in analysed and processed forms for making marketing decisions. With
advanced technology, higher production functions and an increasing marketing complex, market research
has become an indispensable tool for taking appropriate decisions.
Management Planning: Marketing research is used for management planning. It deals with marketing
opportunities,i.e., those opportunities which are viable to be exploited by management. Thus, marketing
management can assess the resources that will be useful for the business.
Problem-Solving: Starting from problem identification to formulation of alternative solutions, and
evaluating the alternatives in every area of marketing management, is the problem-solving action of
marketing research.
Control Technique: Marketing research is used as a control technique of marketing management to find out
the weaknesses and shortcoming of the management decisions to re-orient the planning and performance
techniques.
Large-Scale Production: Marketing research helps large-scale production by providing suitable decisions to
be undertaken by the producers to exploit the existing production resources to meet the growing markets.
The resources of production and market potentials are properly assessed by marketing research.
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Complex Market: The advancement of science and technology and the standard of living of consumers
necessitate closer touch with the growing markets. The size and specialisation within the busine.ss unit and
the intervention of numerous middlemen between the manufacturer and customers created a wide
communication gap.
Pattern of Consumption: The pattern of consumption is to be assessed by the marketing management. The
study of buyers' behaviour, attitudes and capacity to purchase is very important in marketing research. The
purchasing power of a consumer depends upon his disposable personal income. Thus, the total purchasing
power of a country or geographical area can be assessed by the disposable income of the place.
Market Complex: The marketing activities are influenced by several internal and external environments.
Internal environment includes price, promotion, and production and place (distribution), whereas the
external environment includes economic, sociological, political, legal and government motives.
Suitable Marketing Operations: Marketing operations decide production functions, and marketing
operations can be better decided by the findings of marketing research.
Pricing: In marketing management, pricing is not arbitrary for follow up action of competitors. It has to be
judiciously fixed which is done effectively with the study of various marketing variables.
Marketing Strategy: Marketing management has to lay down appropriate marketing strategies to meet
competition to pursue growth in market and to attain organisational objectives.
Distribution: Marketing research helps the members of the channel of distribution to fon'nulate suitable
policies an programmes to solve their problems.
Sales Promotion: Marketing research can decide suitable media of sales promotion after a study of the
various channel of promotion. The costs and benefits of advertising, personal selling and wide publicity
should be studied to decide the most appropriate media of sales promotion.
5.2.5 Marketing Research Process (16)
Identifying and Defining Research Problem: The 'initial step in the research process is the identification of
the problem or opportunity. A research problem refers to some difficulty which a researcher experiences in
the context of either a theoretical or conceptual situation and wants a solution for it. A research problem
exists when the individual or the group having one or more desired outcomes are confronted with two or
more courses of action that have some but not equal efficiency for the desired objectives and are in doubt
about which course of action is best.
Extensive Literature Survey: Once the problem is formulated, the next step is to write down a brief
summary. For this the researcher should undertake extensive literature survey connected with the problem.
For this purpose, the abstracting and indexing journals and published or unpublished bibliographies are the
first place to go to. Academic journals, conference proceedings, government reports, books etc., must be
taped depending on the nature of the problem.
Formulation of Hypoiheses: Now the researcher should state in clear terms the working hypothesis or
hypothesis. Working hypothesis is tentative assumption made in order to draw out and test its logical or
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empirical consequences. As such the manner in which research hypothesis are developed is particularly
important since they provide the focal point for research. Hypothesis should be very specific and limited to
the piece of research in hand because it has to be tested. The role of the hypothesis is to guide the researcher
by delimiting the area of research and to keep him on the right track.
Preparing the Research Design: Research design is the conceptual structure within which research should be
conducted. A research design specifies the methods and procedures for conducting a particular study. The
researcher should specify the approach he intends to use with respect to the proposed study. The function of
research design is to provide for the collection of relevant evidence with minimal expenditure of effort, time
and money. Research designs can be grouped into three categories - exploratory research, descriptive
research and causal research.
Exploratory Research: An exploratory research focuses on the discovery of ideas and is generally based on
secondary data. It is preliminary investigation, which does not have a rigid design.
Descriptive Research: A descriptive study is undertaken when the researcher wants to know the
characteristics a certain groups such as age, sex, educational level, income, occupation, etc.
Causal Research: A causal research is undertaken when the researcher is interested in knowing the cause
and effec relationship between two or more variables.
Determining Sample Design: All the items under consideration in any field of inquiry constitute a 'universe'
a 'population'. A complete enumeration of all the items in the 'population' is known as a census inquiry. In
such a inquiry when all the items are covered no element of chance is left and highest accuracy is obtained.
But in practice this may not be true. This type of inquiry involves a great deal of time, money and energy,
not only this; census inquiry is not possible in practice under many circumstances.
Collecting the Data: The next step is to determine the sources of data to be used. The researcher has to
decide whether he has to collect primary data or depend exclusively on secondary data. Sometimes, the
research study is based on both secondary and primary data. The primary data are those, which are collected
afresh and for the first time, and thus happen to be original in character. The secondary data, on the other
hand, are those which have already been collected by someone else and which have already been passed
through the statistical process.
Execution of the Project: The researcher should see that the project is executed in a systematic manner and
in time. If the survey is to be conducted by means of stnictured questionnaires, data can be readily machineprocessed. In such a situation, questions as well as the possible answers may be coded. If the data are to be
collected through interviews, arrangements should be made for proper selection and training of the
interviewers. The training may be given with the help of instruction manuals, which explain clearly the job
of the interviewers at each step. Occasional field checks should be made to ensure that the interviewer~ are
doing their assigned job sincerely and efficiently.
Analysis of Data: After the data have been collected, the researcher turns to the task of analysing them. The
analysis of data requires a number of closely related operations such as establishment of categories, the
application of these categories to raw data through coding, tabulation and then drawing statistical
inferences. Researcher should classify the raw data into some purposeful and usable categories.
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Coding operation is usually done at this stage through which the categories of data are transformed into
symbols that may be tabulated and counted.
Editing is the procedure that improves the quality of the data for coding. With coding the stage is ready for
tabulation.
Tabulation is a part of the Technical procedure where in the classified data are put in the form of tables.
Analysis work after tabulation is generally based on the computation of various percentages, coefficients,
etc., by applying various well-defined statistical formulae.
Testing of Hypothesis: After analysing the data the researcher has to test the hypothesis, various tests, such
as Chi- square test, t-test, F-test, have been developed by statisticians for the purpose. The hypothesis may
be tested through the use of one or more of such tests, depending upon the nature and object of research
inquiry. Hypothesis testing will result in either accepting the hypothesis or in rejecting it. If the researcher
had no hypothesis to start with, generalisations established on the basis of data may be stated as hypothesis
to be tested by subsequent researches in times to come.
Generalisation and Interpretation: If a hypothesis is tested and upheld several times, it may be possible for
the researcher to arrive at generalisation, i.e., to build a theory. If the researcher had no hypothesis to start
with, he might seek to explain his findings on the basis of some theory. It is known as interpretation. The
process of interpretation may quite often trigger off new questions, which in turn may lead to further
researches.
Preparation of the Report or the Thesis: Report writing needs some skill, which can be developed with
practice. There should be objectivity, coherence, clarity in the presentation of report. Report should be
written in a concise and objective style in simple language avoiding vague expressions such as 'it seems,'
'there may be', and the like.
5.2.6 Data Sources and Collection in Marketing Research (16)
Data collection is the process to gather information about the relevant topic of research, which is being done
by researcher. Data collection is a term used to describe a process of preparing and collecting data, for
example, as part of a process improvement or similar project. The purpose of data collection is to obtain
information to keep on record, to make decisions about important issues, to pass information on to others.
While deciding about the method of data collection to be used for the study the- researcher should keep in
mind two types of data viz, primary data and secondary data. The researcher would have to decide which
sort of data he would be using for his study. The method of collecting primary and secondary data differ
since primary data are to be originally collected while in case of secondary data the nature of data collection
work is merely that of compilation. Any statistical data can be classified under two categories depending
upon the sources utilised:
1)
Primary sources of data, and
2)
Secondary sources of data.
Primary Sources of Data
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.
A primary source is a publication in which the data are published by the same authority which gather and
analyse them. The primary data are those, which are collected afresh and for first time and thus happen to
be original in character. Primary sources are original sources from which the researcher directly collects
data that have not been previously collected. Primary sources enable the researcher to get as close as
possible to what actually happened and is hands on. A primary source reflects the individual viewpoint of a
participant or observer.
Methods of Collecting Primary Data
There are several methods of collecting primary data, the important ones are as follows:
Survey Method/Research; Surveys represent. one of the most common types of quantitative, social science
research. In survey research, the researcher selects a sample of respondents from a population and
administers a standardised questionnaire to them. The questionnaire, or survey, can be a written document
that is completed by the person being surveyed, an online questionnaire, a face to face interview, or a
telephone interview. Using surveys, it is possible to collect data from large or small populations. Various
survey methods are as follows:
i)Interview method: Interview is a conversation between two or more people where question
are asked by the interviewer to obtain information from the interviewee. The interview method of collecting
data involves presentation of oral-verbal stimuli and reply in terms of oral-verbal responses. This method
can be used through personal interviews and, if possible, through telephone interviews.
ii) Questionnaire method: The questionnaire is a data collection instrument. It is a list of questions
to be asked from the respondents. A questionnaire is a method of obtaining specific information about a
defined problem so that the data, after analysis and interpretation, results in a better appreciation of the
problem. A questionnaire form, which has to be completed by an interviewer, is often referred as schedule.
.
iii) Schedules: Schedule is an instrument in research, which is most frequently used in collecting
field data especially where the survey method is employed. It is used in indirect interview. It contains
questions and blank tables, which are to be filled in by the investigators themselves after getting
information from the respondents. Outwardly schedule and questionnaire appear to be the same but there is
some difference between the two. Schedule is used in direct interview and direct observation and is filled in
by the research work himself.
Observation Method: Observation is an activity of a person which senses and assimilates the knowledge of
the phenomenon or the recording of data using instrument. It can also be referred as datum collected during
this activity. The observation method is the most commonly used method especially in studies relating to
behavioural sciences. In a way we all observe things around us, but this sort of observation is not scientific
observation. Observation becomes a scientific tool and the method of data collection for the researcher,
when it serves a formulated research purpose, is systematically planned and recorded and is subjected to
checks and controls on validity and reliability. Under the observation method, the information is sought by
way of investigator's own direct observation without asking from the respondent.
3. Other methods: There are a number of other methods for collection of data which are described as below:
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i) Warranty Cards: Warranty cards are usually postal sized cards, which are used by dealers
of consumer durables to collect information regarding their products. The information sought is printed in
the form of questions on the 'warranty cards' which is placed inside the package along with the product with
a request to the consumer to fill in the card and post it back to the dealer.
ii) Distributor or Store Audits: Distributor or store audits are performed by distributors as well
as manufacturers through their sales men at regular intervals. Distributors get the retail stores audited
through salesmen and use such information to estimate market size, market share, and seasonal purchasing
pattern. The data in such audits are obtained not by questioning but by observation.
iii) Pantry Audits: Pantry audit technique is used to estimate consumption of the basket of goods
at the consumer level. In this type of audit, the investigator collects an inventory of types, quantities and
prices of commodities consumed. Thus, in pantry audit data are recorded from the examination of
consumer's pantry.
iv) Mechanical Devices: The use of mechanical devices has been widely made to collect
information by way of indirect means. Eye camera, Pupilo-rnetric camera, Psycho-galvanometer, Motion
picture camera and Audiometer are the principal devices so far developed and commonly used by modem
big business houses, mostly in the developed world for the purpose of collecting the required information.
v)Content Analysis: Content analysis consists of analysing the content of documentary materials
such as books, magazines, newspapers and the contents of all other verbal materials, which can be either
spoken or printed. The analysis of content is a central activity whenever one is concerned with the study of
the nature of the verbal materials. The analysis may be at a relatively simple level or may be a subtle one. It
is at a subtle level when researcher makes a study of that attitude, say of press towards education by future
writers.
vi) Simulation: Another source from where data is generated is through the use of simulation. A
sophisticated set of mathematical formula are used to simulate or imitate a real life situation. By changing
one variable in the equation, it is possible to determine the effect on the other variables in the equation. The
simulation design is conclusive research, i.e., secondary research in nature. Simulation is a quantitative
research technique.
vii) Panel: This form of data collection method is nowadays increasingly used for syndicated
research. A panel is a group of study units (households, retail stores, organisations) that exist over time and
from which data is collected on a regular interval of time. For example, members of a consumer panel
might maintain purchase diaries in which consumers record every purchase in a particular product class.
Measurement of this nature provides longitudinal data and permits analysis of changes in behaviour and/or
attitudes.
viii)Focus Groups: Focus groups originate from sociology studies. They have been extensively used in
marketing research. Focus group studies are generally conducted to evaluate the potential of a new product
idea or concept. A focus group comprises several persons, who are led by a trained moderator. The
moderator's task is to lead the team in generating and exchanging ideas on a particular issue. The process
starts by issuing a topic for discussion among participants by the moderator. In such discussions, the
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moderator's role will be to silently watch the proceedings and ensure that the discussion is going on as
expected.
Secondary Sources of Data
A secondary source is a publication, reporting the data which have been gathered by other authorities and
for which others are responsible. The secondary data are those which have been collected by someone else
and which have already been passed through statistical process. These are sources containing data which
have been collected and compiled for another purpose. The secondary sources consists of readily
compendia and already compiled statistical statements and reports whose data may be used by researchers
for their studies e.g., census reports, annual reports and financial statements of companies.
Methods of Collecting Secondary Data
In most of the studies the investigator finds it impracticable to collect first-hand information on all related
issues and as such he makes use of the data collected by others. There is a vast amount of published
information from which statistical studies may be made and fresh statistics are constantly in a state of
production. The sources of secondary data can broadly be classified under two heads:
1) Internal Secondary Data: Data that originate within the firm for which the rpsearch is being
conducted are internal data. They may be adapted for the marketing research purposes. They may be formal
data and informal data. Formal data are available on a regularly scheduled basis, such as monthly, quarterly
or annually in a form that allows comparisons through time. Informal data report basic marketing
knowledge and are available on a non-recurring basis. Sale's analysis and invoicing are considered
important sources of internal secondary data.
Sales Analysis: Sales analysis is an important tool of marketing research. It is the first step in the marketing
research program and acts as a basis for the development of further marketing research. It reveals the
current operating problems in the marketing area where the scope for marketing research can be adequately
explored in smaller organisations, sales analysis is an important source of marketing information. It
provides a major share of the factors for marketing research.
Invoice Analysis: Company invoices have been a very useful source of information. A copy of an invoice is
preserved and information from it may be punched, tabulated, processed and summarised to provide
suitable information to the researcher. The invoice data may be classified according to customer, nature of
product, region and area. The invoice record may be of immense use provided it has been used with
precaution and scientifically.
Accounting Records: The basis for accounting records concerned with sales is the sales invoice. The usual
sales invoice has a sizable amount of information on it, which generally includes name of customer,
location of customer, items ordered, quantities ordered, quantities shipped, dollar extensions, back orders,
discounts allowed and date. In addition, the invoice often contains information on sales territory, sales
representative and warehouse of shipment. ' This information, when supplemented by data on costs and
industry and product classification, as well as from sales calls, provides the basis for a comprehensive
analysis of sales by product, customer, industry, geographic area, sales territory, and sales representative, as
well as the profitability of each sales category.
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2) External Secondary Data: The second form of secondary data is external sources which are
generally published and are available in different forms and from different sources. Although external
secondary data may be obtained from different sources, some of the sources are given here.
Libraries: Researchers first attend libraries to fmd out relevant data pertaining to research. They provide
many sources where suitable data may be obtained. Public libraries, colleges and University libraries
contain a large amount of business information, which provides sources to other data. Management books,
theses, management journals and other publications can be consulted in these libraries. Management
institutes, research institutes, banks, insurance companies, public utility companies and manufacturing units
have maintained adequate libraries.
Literature: A great amount of secondary data is available from literature, particularly on marketing
subjects. With the development of marketing researches in different countries, new and interesting facts are
coming into the picture, which are available in various publications. Consultations of this literature may
provide proper guidance pertaining to publication, which can be used from time to time.,
Periodicals: Business periodicals published fortnightly, monthly, quarterly, semi annually and annually are
often consulted by the marketing executives and researchers to plan and design their marketing research.
Periodicals on economics, finance, trade, transport, industry, labour and management are being prepared by
the Government as well as by the non-government agencies. Journals of the marketing association,
management association, research agencies, advertising agencies and other related periodicals are becoming
very common in India and abroad.
Census and Registration Data: Census and registration data have become very comprehensive sources of
marketing research. Previously, these were concentrated only to one population census, but it now extends
to many areas. Census and registration data includes Census of Population, Census of Agriculture, Census
of Cattle, Census of Trade, Census of Transport, Census ofIndustry, Census of Banking and Finance etc.
Trade Associations: Trade associations may be an excellent source of data pertaining to an industry. The
trade association of one industry may exchange data with the trade association of another industry, and
within one industry a firm may exchange data with another firm with the help of trade association of the
industry.
Government Departments: Different government departments have different data, which are not available in
libraries. But these are very useful for understanding various aspects of the economy. The researchers can
utilise them for the purposes of their research. Information and data pertaining to agriculture, industry,
trade, transport, banking and finance can be obtained from the respective ministries of the Government of
India.
Private Sources: Private sources include varied sources available in the form of books, monographs,
bulletins, journals, commercial reports and so on. They are priced and publicly circulated. Some of the
sources include extensive original research and some summarise the research findings of other person.
Many of them are statements of facts and opinions. The All India Management Association, the Indian
Marketing Association, Commerce Pvt. Ltd., Capital, the Economic Times and Financial Express etc. are
important private institutions which supply suitable information and data to the public in the form of
journals, books and newspapers.
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Commercial Data: There are several institutions and companies, which purchase and sell marketing
information and data. Some of these companies are solely engaged in marketing research. They collect
information and data directly from field surveys. Some such companies collect and process the secondary
data and supply them to their subscribers.
Financial Data: The financial data of reputed concerns are available in several magazines, newspapers,
journals and in summary of statistics. The Directorate of Income Tax publishes information pertaining to
taxes and income ranges. Such information and data are useful to forecast the market potential of a
particular product. Private institutions such as the Economic Times of India, Commerce Private Ltd. etc. are
publishing assets and investment- wise data of several large companies. The market researchers are
indirectly benefited by such data and information.
International Organisations: International organisations such as the International Monetary Fund, the World
Bank, the United Nations Organisation, the Asian Bank, the African Bank, Foreign embassies etc. publish
several useful statistics, which can be used by researchers. The statistics may relate to the population
problem, trade, institutions, culture, agriculture, regional festivals, superstitions, education, consumption,
transportation, forestry, manufacturing and so on. There are several other publications such as the World
Almanac, Thomas Register etc., which publish much useful information for marketing researchers.
Volumes of Statistics: There are several private and public organisations, which prepare a summary of
statistics. In India, the Indian Statistical Institute publishes the Statistical Abstract. Commerce Pvt. Ltd., the
Times of India Ltd. and the Financial Express compile directories of different subjects. The Government of
India publishes the economic survey of India wherein statistics relating to every field of economic activities
are compiled in a suitable form.
Advertising Agencies: Advertising agencies have proved to be very useful sources of marketing research.
Recently, a large number of agencies have come into the findings of the advertising researches for their
clients. Advertising agencies sometimes, publish reviews, resumes and tests of marketing researches. The
consumers' behaviour,consumption pattern and demographic features are generally revealed by these
agencies.
Other Sources: There are several other sources of marketing researches. Individuals conduct their own
researches, which may be purchased by other institutions. Marketing associations, management associations
and individual business houses have been conducting marketing researches for other researches. There are"
a large number of researches organisations in foreign countries, which are selling their research findings to
organisations requiring knowing the outcome of their researches.
5.3 Product Research (2)
Product research is concerned with the design, development, and testing of new products as well as
improvement of the existing once. It also examines whether the quality of a new product conforms to the
desires attributes. In addition it analyses the product mix in comparison with the competitive products.
Further, in case of durable consumer products and technical products, product research is concerned with
the analysis of the after-sales servicing. It may be emphasised that the product research is concerned with
every stage of product life cycle as introduction, growth) maturity and decline. In a changing market,
staying competitive often requires the development of new products. As consumers' tastes and needs change
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products must also change. Developing new products, however, is a risky and costly venture. Experts
estimate that eight-out bf ten new products fail. With such formidable odds, it pays to be informed and
prepared to meet the challenges of introducing a new product.
5.3.1 Importance of product Research
Product research is important as it offers the following advantages:
1) Product research helps to explain the features of the product.
2) It helps to simplify the product line.
3) It enables a manufacturer to develop new products with good market demand in the existing product line.
4)Product research brings best sales returns.
5) It widens market for the product and also creates goodwill for the product and its manufacturer.
6) It facilitates appropriate price fixation of the product.
7)Product research brings to the limelight the different uses of the product-fer effective publicity for sales
promotion.
8)It facilitates modification and renovation of existing products so as to make them highly competitive and
agreeable to consumers.
9)It enables a manufacturer to introduce attractive package and brand name to the product for sales
promotion.
5.3.2 Product Research in New Product Development(8)
The new product development process has at least six stages. In each stage, information about the market
and consumers is needed to support critical decisions about the product. The list below outlines the stages
of product development, information needed at each stage, and research techniques that may be helpful:
1) Opportunity Identification: To start, the individual should seek holes in the market that might be
opportunities. At this, stage, the following information gathering techniques are useful - focus groups,
consumer surveys, analysis of customer suggestions and complaints, brainstorming, industry research (size
of market, consumption patterns), and analysis of competitors' products. From the beginning, remember that
the customers are an important source of information. Make them a part of the product development team
by listening to their suggestions and complaints.
2) Concept Screening: Next, the individual will move from generating ideas to test ideas. In concept
screening, one car describe the 'product idea to potential customers and ask, "Would any individual buy this
product?" If consumers do not like the idea of the product, the physical product will probably not do well
either. Concept screening allows for the(evaluation of winners and losers early in product development
before substantial resources are committed to a product's development. At this stage, focus groups and
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consumer surveys are useful research methods. Be sure to conduct research in the product's target market so
that the results accurately reflect the potential consumers,
3) Marketing Strategy Development: Next, individual will set a plan for the marketing mix (the four Ps):
i)Product: Define the product in terms of varieties, quality, design, features, brand, packaging, sizes,
service, and warranties.
ii) Price: Develop a pricing strategy. Consider how any individual will use list price, discounts, allowances,
payment periods, and credit terms.
iii) Place: How will the products get to the customers? Which channels will any individual use (retail,
wholesale food service)? Consider the best locations to reach the target market. Also consider
transportation, inventory, and storage.
iv) Promotion: How will individual use the following - sales promotion (coupons, allowances, discounts),
advertising salespeople, public relations?
4) Product Development: At this stage, using the information individual has collected and the decisions
made about the 4 Ps, an individual will design and create the physical product, as well as its packaging,
name, logo, and advertising. Research at this stage usually involves repeated cycles of product improvement
and testing. Product testing includes: both physical performance (e.g., shelf stability) and consumer
reactions. Some research techniques useful at this stage are surveys, tasting panels, and in-home placement
testing.
5) Market Testing: This stage is a last check on the product before it enters the market. At this point,
product performance tests are complete. Market testing aims to evaluate Advertising, Awareness, and
Usage (AAU) of the product in test markets. The techniques used include simulated store testing and
controlled test marketing. Some marketing research firms offer AAU studies.
6)
Product Introduction: As individual introduce, the product to the market, individuals should test the
distribution of the product. Is the product getting on the shelves? Is it getting a favorable presentation on the
shelves? Again, evaluating advertising, awareness, and usage is important.
.
5.4 Advertising and Promotion Research (2)
Every year companies spend huge sums of money for creating ads and buying media time and space. They
hope that these marketing communication efforts and expenditures would benefit their businesses by
influencing consumer choices. Too much of money is at risk and advertisers need to have very good
information about who their customers are, what they want and like, and where they spend their media time.
Research is needed to furnish the information that drives marketing and advertising decision-making.
Without reliable information, in today's highly competitive market conditions, use of guesswork or intuition
alone may prove to be an invitation to failure.
Advertising and promotion research is a subset of marketing research. It systematically gathers and analyses
information to help develop or evaluate advertising strategies, individual ads, or whole advertising
campaigns. The advertiser needs to know how consumers perceive its products or services, what are their
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views about the competition, and what image of the brand or the company would be more appropriate to
build.
5.4.1 Purpose of Advertising and sales promotion(16)
1)Advertising Strategy Research: It is used to determine the product positioning, to assist in the selection of
the target markets, advertising messages, or media vehicles. Advertising strategy is developed by carefully
blending the elements of the creative mix. The mix elements are:'
i)Target Audience: The major purpose of conducting 'target audience research' is to develop a precise
profile of a brand's target market and consumers. It is critically important to know which customers can be
classified as the primary users of the product category and then carefully study their geographic,
demographic, psychographic, and behavioral characteristics. The research may reveal which are the most
potential market segments and target them to achieve advertising objectives. This is particularly true while
introducing a new product. Companies may have budget constraints and may prefer to launch the product in
a phased manner instead of attacking all geographic areas at the same time.
ii) Product and its Positioning: To develop an effective 'positioning strategy' for the brand, the advertiser
needs to know "how consumers perceive their brands and those of the competitors'. They also need
information on what qualities, features, or benefits associated with the product or service lead to initial
purchases and, ultimately, to brand loyalty. '
iii) Communications Media: 'Communications media research' help develop media strategies and select
media vehicles from among the different media class and type (T.V., newspapers, magazines, radio,
outdoor, etc.) Ad agencies subscribe to syndicated research services such as NRS and IRS that monitor and
publish information on the reach, audience profiles and effectiveness of different media vehicles.
iv) Advertising Message-Element: Advertisers undertake research to study and identify what consumers'
likes and dislikes are with respect to brands or products and hope to find the big idea and develop promising
advertising messages. Researchers use concept testing to determine which 'message-element' option is most
likely to prove successful.
2) Creative Concept Research: It is used to assess the extent of the target audience's
acceptance of different creative ideas at the concept development stage. Creative specialists prepare several
tentative ad concepts in the form of rough copy platform, or the storyboard. Researchers conduct focus
groups in. The agency's developmental lab, which combine intensive qualitative interviews with
quantitative techniques. A discussion leader moderates the conversation and each group views the roughs
(copy platform, storyboard or animatic. The reactions of these groups are measured, videotaped, and
observed by researchers behind a one-way mirror. This helps in identifying the most promising creative
concept among the ones that have been seen and discussed by the focus groups.
3)Pre-Testing and Post-Testing: Pre-testing of ads is done to diagnose any possible communication
problems before beginning an ad campaign. Post-testing of ads helps advertisers to evaluate the campaign
results. Advertisers use pre tests and post-tests to ensure that advertising money is used wisely to achieve
the predetermined objectives. Testing can help in judging the effectiveness of the advertising strategy or
medium.
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Pre-testing is used to increase the likelihood of creating the most effective advertising messages.
Advertisers are often interested in concurrent testing to assess the audience response while the ad campaign
is under way. Post-testing (also called ad tracking) is important to evaluate the success, or otherwise, of an
individual ad or the whole campaign after it has run.
By using pre-testing, advertisers can sharpen their decisions about a number of advertising variables. Many
of these can be post-tested as well. These variables can be put in terms of the five Ms:
i)Merchandise: Advertisers may pre-test a number of factors related to the product or service, such as
how effectively the advertising communicates the features and benefits, which benefits are most important
and persuasive to consumers, or how good is the package design. This information also helps in
determining how effectively the advertising positions the brand.
ii) Markets: The information gained from pre-testing advertising strategy or particular ads with various
audience groups in a target market may furnish information which may necessitate altering the strategy or
modify the ad or commercial. In post-testing, the campaign's success in influencing the target audience can
be assessed by measuring the levels of product or service awareness, liking and sales results.
iii) Motives: Advertisers are most certainly interested in creating the most compelling advertising
messages to address the consumers' motives. Pre-testing helps identify and appeal to the powerful needs and
wants of the audience members and post-testing reveals how successful they were.
iv) Messages: Pre-testing can help in identifying the most effective and ineffective commercials and ads.
It can help determine the consumer's point of view about what a message says and how persuasive it is. Pretesting can be done for headline, body copy, illustration, or the total message concept and guide the
improvement in ads or commercials. By using research, the advertiser can determine to what extent the ad
or commercial was seen, remembered, Comprehended and believed.
v)
Media: The media is becoming increasingly expensive and the largest share of advertising budget is
spent on media buying. Advertisers today demand more accountability. Pre-testing can influence decisions
concerning classes of media, media sub-classes, specific media vehicles, media units of space or time,
media budgets and media scheduling, etc. After the completion of an ad campaign, post-testing can
determine how effectively the chosen media mix could communicate the desired message with the target
audience.
5.4.2 Importance of Advertising Research
1)
Indicates Chances: Advertising research indicates chances for items and market development, an
organisation can then make a decision around the creation, revenue and creation plans immediately after
identifying the market potential.
2)
Provides a Basis for Sound Decision: It provides a basis for sound, current market led decision by
providing details to cut back uncertainty.
3)
Facilitate Customers or Industry: Advertising and market research enables an organization to match
their items or providers to the necessities in the customers or industry.
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4)
Ensure Effectiveness: Advertising research helps advertising to be tested throughout a campaigns
growth or prior to start to ensure its effectiveness, and right after kick-off to measure the results in the
media used.
5)
Piloting the Plan before Launching: Advertising research also allows product or service ideas to
become tested without expenditures of lunching in your marketplace; this has generally been a change in
service, solution, or style.
6)
Delivers Goal Explanation: Advertising research also delivers goal explanation for results and
failure in the market.
7)
Asses Advertisement Ability: Asses an ad's ability to create awareness, generate leads, and increase
conversion.
8)
Pinpoint Weak Elements: Pinpoint weak elements within an ad and tells how to improve its
performance. It also indicates which creative elements and content appeal to different target segments.
9)
Identify Elements of an Integrated Ad Campaign: Advertising research identifies elements that can
be part of an integrated ad campaign using different media ..
10)
Provide a Framework: Advertising research provides' a framework for the creative/design team,
allowing them to create effective ads.
5.4.3 Process of Advertising Research (16)
Advertising research is an ongoing process. The advertising research process is similar to the market
research process in that they both follow a sequence of steps. Designing, planning, conducting, and
analyzing of a successful advertising research is consisted of three main stages:
1) Identify Advertising Problems: This step consists of following sub steps:
i)The first research process is to discuss and identify advertising problems. Advertising problems may come
from ad campaigns or ad strategies.
ii) In this step, the problem statement should be written in order to identify what types of information are
really needed, why information is needed, and how it will be used.
2)Justify Research Needs: This step consist of following sub steps:
i)Not all situations that research is worth conducting. The question is in which situation research should be
conducted to solve advertising problems?
ii) The appropriateness of conducting research can be evaluated through "a cost value analysis," which
means that the value of information acquisition to help in the decision-making process exceeds the cost of
information acquisition.
3) Specify Informational Needs: This step consist of following sub steps:
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i)The last process is to identify informational needs that best help a decision maker evaluates the strengths
and weaknesses of the ad campaigns or ad strategies.
ii) The advertising campaigns will be evaluated in two aspects such as communication of the main idea
(believability and relevance) and audiences' reactions to the ad campaigns (attitude and purchase intention).
4)Identify the Appropriate Type of Research: This process is to select the appropriate type of research that
meets informational needs and provides desired information. Two types of research is used: quantitative and
qualitative.
i) Quantitative Research: Quantitative research is used when generalization to a larger population is crucial,
when statistical information is needed, when statistical analysis of the data is required. Three types of
quantitative research are: survey, observation, and physiological research.
ii) Qualitative Research: Qualitative research is used when in-depth information (e.g., consumers' feelings
and/or beliefs) is needed and when information cannot be obtained through closed-ended questions. The
most frequently used is focus group research.
5)Determine Sampling Method: This process is to specify how sample will be selected. The determination
of sampling methods depends upon the objective of research, the need for generalisbility, and the research
budget. Two types of sampling methods can be used: random and nonrandom samplings.
i) Random Sample: A random sample is a sample in which each individual has an equal chance to be
selected for inclusion in the study.
ii) Nonrandom Sample: A nonrandom sample is a sample -in which individuals are not selected by chance.
They are selected by purpose and convenience.
6) Determine Data Collection Method: Four major methods for collecting data in quantitative research are:
interviews, mail, telephone, and electronic survey. Two major methods for collecting data in qualitative
research are face-to-face interviews and focus group discussions.
7) Data Investigation: Data investigation required to analyze the quantitative and qualitative data:
i) Quantitative data requires data coding, interpreting, and analyzing.
ii) Qualitative data require "synthesis," which is similar to the process of putting little pieces of information
together and come up with the main conclusion.
8)Decision Making: This last step is to use the research findings to help in the decision-making process,
help evaluate the advertising campaigns problem, and evaluate the strengths and weaknesses of each
campaign
5.5 Consumer Behaviour Research: Consumer Research(2)
The marketing concept states that, to be successful, a company must understand the needs of specific
groups of consumer (target markets) and then satisfy these needs more effectively lhan the competitors.
Marketers who have a thorough understanding of the consumer decision-making process are likely to
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design products, establish prices, select distribution outlets, and design promotional messages that will
favourably influence consumer purchase decisions.
The field of consumer research developed as an extension of the field of marketing research. Just as the
findings of marketing research are used to improve managerial decision-making, so too are the findings of•
consumer research. Studying consumer behaviour, in all its ramifications, enables marketers to predict how
consumers will react to promotional messages and to understand why they make the purchase decisions
they do. Marketers realise that the more they know about their target consumers' decision-making process,
the more likely they are to design marketing strategies and promotional messages that will favorably
influence these consumers. Savvy marketers recognise that consumer research is a unique subset of
marketing research, which merits the use of specialized research methods to collect customer data.
Consumer research enables marketers to study and understand consumers' needs and wants, and how they
make consumption decisions.
Consumer research is a form of applied sociology that concentrates on understanding the preferences,
attitudes, and behavior of consumers in a market-based economy, and it aims to understand the effects and
comparative success of marketing campaigns. The consumer research focuses more on the data collection
and relationship building and strengthening between the contacted consumer and the company.
Consumer research includes following points as well:
1)
Determining demographics of existing and potential users,
2)
Identifying customer needs and product expectation levels,
3)
Identifying factors influencing purchase decisions, and
4)
Ascertaining the level of customer satisfaction.
Consumer research can also prove helpful if one wants to explore business opportunities in new markets.
Consumer research can be conducted by two methods, primary research or secondary research.
1) Primary Research: It is the actual conduct of studies and production of data. Primary research is costly
and time consuming but the data is specific to the product of service being evaluated. Primary research
refers to information that is directly collected from the source. Another simple method of primary research
would be to directly talk to customers and get their feedback. Primary research can be both qualitative and
quantitative.
2) Secondary Research: Secondary research is any information marketer may use but which has not been
specifically collected for the current marketing research. This includes published sources of data,
periodicals, newspaper reports, and nowadays, the internet. It is sometimes possible to do a lot of good
secondary research and get useful information. But making research typically requires a lot of current data
which is not available from secondary sources.
5.5.1 Consumer Research Process (16)
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The consumer research process involves the following steps as illustrated in figure 5.3:
1) Defining the Research Problem and Developing Objectives: The consumer research process starts with
identification of management problem or an opportunity, on the basis of which the research problem and
objectives are formulated. A management problem/opportunity relates to decisions management has to take
and research problem looks at the information needed to facilitate that decision. A proper understanding of
the management problem and what information is needed from the research is extremely important. Without
properly laid-out research objectives, the purpose of the research cannot be achieved. Only after agreeing on
objectives, should the next step be taken.
2) Exploratory Research and Analysis/Secondary Data Collection: After defining the research problem and
clearly stating the objectives of the research, the next step is to collect the relevant information from the
available sources of information. This form of secondary data collection is called exploratory research.
Explorer or secondary research involves the collection and analysis of any published data for a purpose
other than the current one. Secondary sources of information can either be external or internal to the
organisation. Internet, books, magazines, journals, published research and studies, commercial surveys,
national statistics issued by government, industry publications and research published by market research
agencies, and audits are some examples of external sources of information while accounting and sales
reports; and internal audits are some example of internal sources of information.
3)Designing the Conclusive Primary Research: Conclusive research involves collecting data from the
primary source of information, i.e., consumers, retailers, etc., or from some other company. Here the data is
unreported and unpublished, and is directly collected by the researcher from the primary source. Before
starting with this kind of data collection, a research plan has to be chalked-out. A quantitative research
study consists of a research design, the data collection methods and instruments to be used, and the sample
design. Three basic designs are used in quantitative research: observation, experimentation (in a laboratory
or in the field, such as in a retail store), or survey (i.e., by questioning people). In selecting the appropriate
research format for a qualitative study, the researcher has to take into consideration the purpose of the study
and the types of data needed. The key data collection techniques for qualitative studies are depth interviews,
focus groups, discussion guides, projective techniques, and metaphor analysis.
4)Data Collection, Analysis, and Findings: The fmal step in consumer research process is to collect data,
analyse, and prepare a final report based on the fmdings. A good report should not only be highly focused
but also easy to understand by the intended reader. This can be done through simple pictorial
representations (flowcharts, figures, graphs) to facilitate understanding. In qualitative research, the
moderator or test administrator usually analyses the responses received. In quantitative research, the
researcher supervises the analysis: Open-ended responses are first coded and quantified (i.e., converted into
numerical scores); then all of the responses are tabulated and analysed using sophisticated analytical
programs that correlate the data by selected variables and cluster the data by 'selected demographic
characteristics.
5.6 Retail Research (2)
Retail research measures industry and market trends, helping to provide insight and information for the
development of new retail formats and offering. Research is carried-out at the retail level for concept
testing, business feasibility analysis, identification of the right product mix, studying the target group
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profile, analysing consumer behaviour, etc. Commissioning a new retail project, the process starts with the
identification.of the basic theme, arriving at the right retail format, identifying the right customer profile
and getting the right product mix if a proposition has to be created in an area of choice that has not been
firmed-up. There are also times when the organisation has firmed-up the basic proposition, but the details of
the elements are researched and tested.
A crucial area of any Retail research campaign is the element of understanding the customers. In its
simplest form, this service can be used as an effective method of capturing and cross-analysing complete
ranges within each relevant retailer, highlighting gaps for development opportunities.
5.6.1 Components of Retail Research
The components of retail research are:
1)Quantitative Survey: This studies target demographic groups by mapping target segments. By mapping
the current market according to behavioural and need based segments, the survey helps to ascertain the right
profile to target. This means understanding:
i)Current shopping patterns. That is, which demographic group shows higher frequency of shopping as well
as spend, which feels the need for a retail experience, etc.,
ii) The size of the segment,
iii) The means used currently to satisfy this need, and
iv) The core/peripheral targets and their respective sizes.
A quantitative survey is also done to assess the viability of a retail business by determining the concept's
appeal and measuring how that translates into potential. This involves understanding the motivators and
barriers and profiling the core target group where its appeal is the maximum, which gives an indicator of
likely frequency of visits/spends, etc.
2)Qualitative Research: Qualitative research is .also done while re-defining an existing proposition by
involving focus groups among the target audience. While developing a product mix, the focus groups
among the target segments identified are. treated as lead segments for studying product preferences. This is
done by:
i) Identifying the most promising positioning/product proposition in the core target.
ii) Getting cues on ambience, shopping needs, styling, must-haves, Don'ts, and so on.
iii) Conducting a negative check (a check for possible deterrents) on the preferred initiative among the
secondary target/areas to strengthen, in order' to attract the peripheral target.
3)Research Design: This comprises the clear objectives of the study: the nature and sources of data, sample
quota size, questionnaire design, analysis methodology, etc.
5.6.2 Developing a Methodology for Retail Research
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Research techniques are based on 'customer decision paths', the processes through which, the customer goes
-leaving home, shopping and returning home. The shopping experience begins as soon as the shopper plans
the trip. While some prepare a shopping list, others work from memory. Many thoughts go through the
consumer's mind before he even reaches his destination, influencing where he chooses to shop.
These include:
1)
Proximity to the store, whether it is easy to get there or not,
2)
Availability of goods at the store,
3)
Cost/pricing of goods,
4)
How to carry the goods when at the store, and
5)
Parking space.
5.6.3 Research Process in Retail (8)
Marketing research in retailing entails the collection and analysis of information relating to specific issues
or problems facing a retailer. At farsighted firms, marketing research is just one element in a thorough retail
information system. At other firms, marketing research may be the only type of information gathering and
processing that is done. The marketing research process embodies a series of activities. The use of this
process lets a retailer do research systematically - not haphazardly - and make better decisions. Each
activity is done sequentially. Thus, secondary data are not examined until after an issue or problem is
defined. Primary data are generated only if secondary data do not yield enough information for a decision.
The stages in the research process are given below:
1)Define Issue or Problem to be Researched: Issue (problem) definition involves a clear statement of the
topic to be studied. What information does the retailer want to obtain in order to make a decision? Without
clearly understanding the topic to be researched, potentially irrelevant and confusing data could be
collected. As retailers today operate in a highly volatile environment governed by various macroenvironmental factors they need to constantly assess their relative position and identify the various problem
areas or opportunities they need to work upon in order to sustain themselves competitively in the market.
The managers need to analyse the changing dynamics of business, and to evolve a strategy to adapt to the
changes taking place in the external environment.
2)Examine the Secondary Data: After the research issue (problem) has been defined, secondary data sources
are examined. Secondary data are those that have been gathered for purposes other than addressing the issue
or problem currently under study. Secondary data may be internal (such as company records) or external
(suchas government reports and trade publications). Secondary data are published data that have already
been collected for some other purpose. Secondary data may be internal to the organisation, such as sales
reports and receipts, or external, such as government reports or privately circulated reports. Trillions of
pieces of data are available; thus, the acquisition cost in terms of dollars and time can be very high if the
process is not well planned. To cut down on acquisition time, a manager should retrieve only secondary
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data that are relevant to the specific retail problem. Fortunately, the finding and storage of secondary data
are fairly inexpensive when compared to the primary data collection process. .
3)Generating Primary Data: Primary data are those collected to address the specific issue or problem under
study. This type of data may be generated via surveys, observations, experiments and simulation. Primary
data are collected during the course of doing experiments in an experimental research but in case we do
research of the descriptive type. and perform surveys, whether sample surveys or census surveys, we can
obtain primary data either through observation or through direct communication with respondents in one
form or another or through personal interviews.
4) Data Analysis: Once the data have been collected, they must be analyzed. Generally speaking, data are
subject to a number of statistical tests. The statistics yield an estimate of how the overall population will
respond to a given situation. Remember that the more current the research is, the better its predictability will
be for the general population under study. After the data have been collected, the researcher turns to the task
of analysing them. The analysis of data requires a number of closely related operations such as
establishment of categories, the application of these categories to raw data through coding, tabulation and
then drawing statistical inferences.
5)Recommend and Implement Findings: The last phase in the research process is to make recommendations
based on the interpretation of the data. The easiest way to understand the process, the statistics, and
ultimately the data is to take course work or workshops in statistics and research methodologies and then
practice, practice, practice. Sometimes secondary data are relied on; other times, primary data are crucial.
Still other times, both are important.
5.7 Customer Driven Organization (2)
5.7.1 Introduction
Customer-driven marketing involves seeing the products or services from the customer's perspective and
communicating the messages in the customer's language. This approach goes beyond traditional concepts of
branding and positioning, which are driven by the marketer, to getting an outside-in perspective and
designing a marketing strategy that is driven by the customer's needs. The key to obtaining an outside-in
perspective lies in conducting beneath-the-surface customer and employee research.
Organisations that understand the key role of customers in their success are known as customer-driven
organisations. In a customer-driven organisation, decisions are made based on the knowledge of customer
needs and expectations, and on the impact of those decisions on the organisation-customer relationship.
5.7.2 Characteristics of Customer-Driven Organisations (8)
Certain characteristics of customer-driven organizations are as follows:
1) Value-added Service Organization: Customer-driven organizations realize that a quality market offering
(tangible or intangible) delivered at a fair price or at a reasonable cost is the starting point for building
service success that will lead to value-added service satisfaction and future partnerships.
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2) Quality Striving Process: Customer-driven organizations know that it is the process of striving for
quality, not the attainment of a specific quality goal that produces services satisfaction. (As the saying goes,
it is the journey, not the destination).
3)Interaction Oriented: Customer-driven organisations know all their customers and treat every interaction
as' a customer service opportunity, a chance for both parties to benefit. The leaders know that information is
gold and that they never have enough information about their customers, internal or external. They also
realise that improvement must be a continuous process, since customer needs and expectations constantly
change.
4) Expectation Focused: Customer-driven organizations focus on managing expectations through managing
moments of truth. They think in terms of the effects of their actions on the customer, rather than on their
jobs, tasks, procedures, and costs. They aim to create value-added partnerships that benefit all parties.
5) Internal Marketing: Customer-driven organizations understand that service must happen on the inside
before it can happen with external customers.
6) Self Directed: Customer-driven organizations develop self-directed leadership skills rather than job
descriptions. They believe that the role of leaders is to help the support staff shine, so they can help the
service staff shine, so they can help the customer shine.
7)Information Based: Customer-driven individuals and organisations know how to manage change through
continually acquiring information that helps them to uncover trends and changes in customer expectations.
They realise that they must use the information to anticipate and proactively manage change, rather than
reacting to the surprise of change.
5.7.3 Elements of Customer-Driven Organisations
A totally customer focused organisation must meet the following imperatives:
1)Create a customer-keeping vision in everyone in the organisation.
2)Establish the voice of the customer in every organisation decision. Become close and communicative with
the customers.
3)Study, adopt, or adapt methods of the leaders from every kind of organisation in products or services.
4)Employees must believe that the customer is their number-one job. Managers must demonstrate this in all
their activities and lead by example.
5)Break-down barriers between and within organisations that inhibit serving the customer. This should
happen through the adoption of the policies and proper application of the continuous process improvement
methodologies.
6)Develop and use performance and effectiveness measures. They must be tied to customer satisfaction
measurements. Other organisations can be benchmarked to identify useful measures.
7)Customer-driven organisations are also recognised by:
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i) Reliability: The ability to provide what was promised, dependably, and accurately.
ii) Assurance: The knowledge and courtesy of employees, and their ability to convey trust and confidence.
iii) Tangibles: Facilities and equipment, and the appearance of personnel.
iv) Empathy: The degree of caring and individual attention provided to customers.
v) Responsiveness: The willingness to help customers and provide prompt service.
5.7.4 Strategies of Customer Driven Organisation
A customer driven organisation always relies on its business strategy to give the best customer experience
by employing the right tactics. The strategies of a customer driven organization are as follows: .
1)Customer and Business Intelligence Strategy: A customer driven organisation might have Customer and
business intelligence as its strategy for which it needs to use data mining, database marketing and decision
support. These tactics help understand the customer and provides value to the organisation.
'
2)Branding and Marketing Strategy: A customer driven organization also has its branding and marketing
strategy in place for which it needs regular brand assessment and development. Because of these tactics the
organisation builds the right expectations for the customers from the brand.
3)Online Interactivity Strategy: Through its online interactivity, these organisations provide websites that
prove very compelling to use and are very practical. The website of Dell is such an example. For such a
strategy, the organisation needs to design a really effective website and develop the supporting web
solutions.
4)Marketing Approach: The customer driven organisation also needs to have a marketing approach through
email, web or phone. For this to happen it needs completely co-ordinated channels and operations such that
it can reach the customer through these channels.
5)Real Time Knowledge Transfer Approach: Finally the organisation needs real time knowledge transfer
between employees and customers such that it promotes the organisations products by themselves. In such
real time knowledge transfer customers get to research and interact about upcoming products and services
thereby increasing the sales ratio for the organisation. This is especially true for fmancial organisations.
5.7.5 Stages in Customer Driven Organisation
Being customer driven is much like motherhood and apple pie; it is hard to argue against, However, many
firms - indeed, most firms - are not really customer driven, if their actions offer any indication. Too many
firms take their customers for granted and make only superficial efforts to satisfy them. For a firm to
become truly customer driven, a major shift in corporate philosophy must exist. Such a change in
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orientation usually results from a gradual, evolutionary process, It appears there are atleast three stages
through which a firm must pass to become truly customer driven as:
1)Bliss: There is an old adage that "ignOl•.e'is bliss". Many firms are blissful, indeed. The management of
the "blissful" firm feels it produces a good product because it often has a good finished-product qualitycontrol program. It has reasonable warranties and tries to treat its customers fairly. Very often the firm will
have a lenient return or exchange policy for its products. After all, the blissful firm wants to" keep its
customers satisfied: The blissful firm often has a customer service department that handles customer
complaints. So what is wrong with the blissful firm? The problem is that this firm is in a reactive, status quo
mode. It uses its customer service department to react to customer complaints, most likely without realising
that typically fewer than 5 per cent of dissatisfied customers actually complain to the company itself. The
blissful firm does not understand that the cost of acquiring a new customer can be as much as five times the
cost of keeping an existing one. The blissful firm is comfortable with its current operation and has not
established an environment for continual innovation and improvements.
2) Awareness: The second level in the transition toward customer orientation is aware that customer
satisfaction is important. An aware firm has all of the characteristics of a blissful firm, but is more
proactive. Whereas both blissful and aware firms say that customers are important, aware firms actually
implement practices that indicate
they mean it. Aware firms have customer service departments, as do blissful firms, but aware firms will
open customer service departments for extended hours to make it easier for customers to use the service.
They provide toll-free calling; they may have a bilingual customer service staff.
3)Commitment: Committed firms realise that achieving customer satisfaction cannot result from just doing
the traditional things better. Good product quality, warranties, and customer surveys can help, but they are
inadequate without something more. That "something" is changing the customer from a target to a partner.
As a partner, the customer is actually involved in a firm's decision-making processes at many levels in the
organisation. Committed firms recognise that customers are a valuable asset and a source of innovation.
Therefore, committed firms actively develop mechanisms for customer involvement comprehensively
throughout the firm. Committed firms operate under a philosophy of Total Customer Integration (TCI). The
TCI orientation is a natural subset of Total Quality Management (TQM), which among other things
emphasises the development of systems to determine customer requirements. In fact, one of the seven
criteria for the Malcolm Baldrige National Quality Award emphasises customer satisfaction. The
fundamental philosophy that drives a TCI approach is that customers are not a target for the firm's
marketing efforts, but instead are partners with whom a firm must work to enhance the delivered value of
products or services. This philosophy, which takes a long-term view, considers customers valuable assets.
Thus, customer retention is atleast as important as acquiring new customers, if not more so. TCI clearly
implies that the primary segmentation criterion used in marketing strategies should be to distinguish current
customers from new customers.
5.8 CAUSE-RELATED MARKETING (2)
Cause marketing or cause-related marketing refers to a type of marketing involving the cooperative efforts
of a "for profit" business and a non-profit organisation for mutual benefit. The term is sometimes used more
broadly and generally to refer to any type of marketing effort for social and other charitable causes,
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including in-house marketing efforts by nonprofit organizations. Cause marketing differs from corporate
giving (philanthropy) as the latter generally involves a specific donation that is tax deductible, while cause
marketing is a marketing relationship generally not based on a donation.
According to Thompson, "Cause-Related Marketing can be defined as a strategic positioning and marketing
tool which links a company or brand to a relevant social cause or issue for mutual benefit".
According to the Foundation Center, "Cause-Related Marketing (CRM) is the public association of a forprofit company with a non-profit organization, intended to promote the company's product or service and to
raise money for the non-profit".
5.8.1 Objectives of Cause Related Marketing
Objectives of cause-related marketing are as follows:
I) Increase Sales: It is one of the most fundamental reasons for participating in cause marketing activities.
2)Enhancing Corporate Stature: Due to association with a respected cause/organisation a company may get
a better corporate image, improved national visibility and communications toward social responsibility with
the public.
3)Thwarting Negative publicity: The use of CRM as a response to negative publicity can be an effective
weapon.
4)Customer Pacification: When companies are threatened by a boycott on their products CRMlcan act as
one part of a more extensive program to calm down the group who are accountable for the boycott.
5)Facilitating Market Entry: Companies entering a market and at the same time use CRM to/smooth the
progress of penetration is one objective that is quite common.
6)Increase the Level of Trade Merchandising Activity for the Brand(s) Prototed: Improvements/in the
number of reorders, sell-through and similar measures are important objectives for a large quantity of
companies involved in CRM.
5.8.2 Types of cause related Marketing (16)
1)
Broad-based Programme: It is the simplest program. Both existing and new consumers are targeted
and firms donate a certain amount of each sold product. The only action required from the consumer is the
purchasing of the product and there are no limits of how big amount that is donated. When using broadbased CRM programs leveraging activities are needed. These could include advertising, packaging
information and sales information.
2) Limited CRM Program: It is a limited version of the broad-based which also targets all kinds of
consumers. The main difference between broad-based and the limited CRM program is that firms donate a
certain amount of each sold product but only to a maximum sum. In some cases they also offer to donate a
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minimum sum to increase the credibility. As in the broad-based program the only required action from the
consumer is purchasing the product. Leveraging activities are also the same as in the broad-based program.
3)Market-Focused Programme: It targets new types of consumers. There might be an additional
requirement from the consumer besides purchasing the product, i.e., submitting coupons. The financial
commitment can be either unlimited or capped and an amount is donated for alt sales of a specific product.
Since this program targets a specific market the promotion needs to be adapted to that market and also in
some cases informative sales promotion is needed.
4)Replacement Program: It replaces the ordinary sponsoring with sales based giving. All types, of
consumers are targeted. The requirements from the consumers are similar to the market-focused program
where also a second action may be needed. As in the limited CRM program the financial commitment is
also capped which means there will be a limit of how much money that will be donated. Both advertising
and information on the package are required leverage activities, i.e., 'By purchasing this product you have
donated a certain amount to a specific cause'. Additional sales promotions are also commonly used in this
program.
5)Multi-Phase Programme: It targets all kinds of consumers, both new and existing. Here the consumers
have to purchase a product and an additional action is required. It could be submitting coupons or mail in a
barcode but the big advantage with this program is that not 'all customers will make this extra effort and
still the company's gain in consumers' trust will be the same as if there were no extra requirement. The
financial commitment can be either unlimited or capped and an amount is donated for all sales of a specific
product. Advertising and information of packages are essential and should inform the consumer of the extra
activity that is needed. This can also be complemented with different types of sales promotions.
5.8.3 Cause Related Marketing in India
Some of the major examples of cause related marketing in India are as follows:
1)Tata Group: The company's philanthropic activities can be dated to as early as 1892. They have run
Endowment Schemes to provide higher education for deserving Indians. Over 3,500 Tata scholarships have
been awarded. JRD Tata institutionalised CSR in the 1970s and decided that the group shall be mindful of
its social and moral responsibilities to the consumers, employees, shareholders, society, and the local
community for all its major companies.
In July 2002, Tata Steel presented the first corporate sustainability report, which would serve as a
benchmark and a confidence-builder for other Tata companies. It also has formed group resource under the
TCCI (Tata Council for Community Initiatives) on corporate sustainability and a strategy to assist other
Tata companies on corporate social responsibility. The group resource on corporate sustainability would
work on developing a Tata model using technical inputs from the UNDP.
The Tatas have spent n.5 billion on social services - the highest by any corporate house in the country
during 2001 and 2002. The thrust area was rural development, which included community health, basic
education and vocational training. It also spends on basic infrastructure and disburses money through
various charitable trusts and relief and reconstruction societies.
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2)Infosys: Formed in 1981 by N.R. Narayana Murthy, Infosys follows a socially responsible and sustainable
path in conducting business. Even during the boom time of the 1990s when the stock prices of IT
companies were skyrocketing, the company believed in sharing the wealth with the community and its
employees. This practice of the company stems from the personal belief of Narayana Murthy to give back
to the society more than what it gave him. It also substantiates the role and motivation of the CEO and the
top management in making the company a responsible corporate citizen. Infosys has won many awards
such as Best Employers to Work for in India, Golden Peacock Award for Excellence in Corporate
Governance in the Global Category by the World Council for Corporate Governance, London and
Corporate Citizenship Award by The Economic Times. According to a recent report, Infosys spends about
Rs. 50 million on social activities.
3)AV Birla Group: The AV Birla group's initiatives are channeled through The Aditya Birla Center for
Community Initiatives and Rural Development spearheaded by Rajashree Birla (wife of Aditya Birla). All
the Group companies are dedicated to social development. Hinda1co a group company has won the FICCISEDF Social Responsiveness Awards 2001 instituted by FICCI Socio Economic Development Foundation
(a constructive partnership between Businessworld, ICICI Communities, Partners in Change and KPMG).
The activities of the group include innovative projects involving the development of rural youth and
employment generation; education and training and health care projects; helping the disable people; social
causes like widow remarriages; dowry-less marriages; and women empowerment programs. Also the group
undertakes sponsorship of the arts and Indian culture, which are need based. The Birla Academy of Art and
Culture set-up in 1962 in Kolkata treasures art works and exquisite exhibits and has evolved into one of
India's premier institutions for art and culture. The A V Birla group also offers scholarships to students from
IITs, IIMs, and BITS (Pilani) to nurture tomorrow's leader as late Aditya Vikram Birla, believed in people
power and their potential to become leaders. Only the best are selected for the coveted award and are called
"The Aditya Birla scholars".
5.9 ETHICS IN MARKETING (2)
5.9.1 Introduction
Ethics is a set of standards, or a code, or value system, worked out from human reason and experience, by
which free human actions are determined as ultimately right or wrong, good or evil. Business ethics are
generally coming to know what is right
or wrong in the workplace and doing what is right - this is in regard to the effects of products/services and
relationships with stakeholders.
According to Webster, "Ethics is the discipline dealing with that which is good and bad and with moral duty
and obligations".
Ethics refers to right and wrong conduct of individuals and institutions of which they are a part. Personal
ethics and formal codes of conduct provide a basis for deciding what is right or wrong in a given situation.
Ethical standards for a profession are based on society'S standards, and most industries have developed a
code of behaviours that are compatible with society's standards. Professions in the country owe much of
their public regard to standards of conduct established by professional organisations.
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Marketing is the process of planning and executing the conception,. Pricing, promotion, and distribution of
ideas, goods, and services to create exchanges that satisfy individual and organisationsl goods. Now the
question arises why should marketers worry about ethics? What role do the moral-values play in an
economic system? Is it the need of the hour to be ethical while marketing? Is it the competitive
pressure/legal laws which force them to consider ethics in marketing or they have realised that in the
changing climate of consumerism, they have to adopt ethical view to understand and meet the need of 21st
Century customers.
5.9.2 Ethical Norms and values for Marketers(16)
Responsibility of the Marketer: Marketers must accept responsibility for the consequences of their activities
and make every effort to ensure that their decisions, recommendations and actions function to identify,
serve and satisfy all relevant publics: customers, organisations and society.
2)Honesty, Integrity and Quality: These are far more important than quick profits.
3)Rights and Duties in the Marketing Exchange Process: Participants should be able to expect that products
and services are safe and fit for intended uses; that communications about offered products and services are
not deceptive; that all parties intend to discharge their obligations, financial and otherwise, in good faith;
and that appropriate internal methods exist for equitable adjustment and/or redress of grievances concerning
purchases.
4)Organisational Relationships: Marketers should be aware of how their behaviour influences the behaviour
of others in organisational relationships. They should not demand, encourage or apply coercion to
encourage unethical behaviour in their relationships with others.
5)Conduct Business so as to Build Long-term Loyalty: When one gets a customer, he wants to keep that
customer and
builds a sales relationship that can not only last for years, but also create a stream of referral business.
6)Avoiding Harmful Marketing: This means doing work for which they are appropriately trained
"experienced so that they can actively add value to their organisations and customers. It also means
adhering to all applicable laws and regulations and embodying high ethical standards in the choices they
make.
7)Marketers Must Foster Trust in the Marketing System: This means that products are appropriate for their
intended and promoted uses. It requires that marketing communications about goods and services are not
intentionally deceptive or misleading. It suggests building relationships that provide for the equitable
adjustment and/or redress of customer grievances. It implies striving for good faith and fair dealing so as to
contribute toward the efficacy of the exchange process.
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8)Marketers Must Embrace, Communicate and Practice the Fundamental Ethical Values: It will improve
consumer confidence in the integrity of the marketing exchange system. These basic values are intentionally
aspiration and include honesty, responsibility, fairness, respect, openness and citizenship.
5.10 Online Marketing (2)
5.10.1 Introduction
Online marketing is also known as virtual/ interactive/internet marketing or e-marketing. It is the fastestgrowing form of direct marketing. Recent technological advances have created a digital age. Widespread
use of the Internet is having a dramatic impact on both buyers and the marketers who serve them. The
Internet, a vast public web of computer networks, connects users of all types all around the world to each
other and to an amazingly large information repository. The Web has fundamentally changed customers'
notions of convenience, speed, price, product information, and service. As a result, it has given marketers a
whole new way to create value for customers and build relationships with them. Marketing over internet is
direct, low in cost, interactive and two-directional, personalised, up-to-date, targeted, less intrusive, and less
commercial. The Internet has brought many unique benefits to marketing, one of which being lower costs
for the distribution of information and media to a global audience. The interactive nature of Internet
marketing, both in terms of providing instant response and eliciting response, is a unique quality of the
medium. E-marketing is sometimes considered to have a broader scope since it refers to digital media such
as web, e-mail and wireless media, but also includes management of digital customer data and electronic
customer relationship management systems (E-CRM systems). Online marketing ties together creative and
technical aspects of the Internet, including design, development, advertising, and sales. Virtual marketing
does not simply entail building or promoting a website, nor does it mean placing a banner ad
5.10.2 Objectives of Online Marketing (8)
Online marketing can serve several purposes:
1)Actual Sales of Products: Products are ordered, sale and purchase online through internet. Many sites like
amazon.com eBay involve in actual/sales of products.
2)Promotion/Advertising: Customers can be quite effectively targeted in many situations because -of the
context that they, themselves, have sought out. For example, when a consumer searches for a specific term
in a search engine, "banner" or link to a firm selling products in that area can be displayed. Print and
television advertisements can also feature the firm's web address, thus inexpensively drawing in those who
would like additional information.
3)Customer Service: The sites may contain information for those who no longer have their manuals handy
and, for electronic products, provide updated drivers and software patches.
4)Market Research: Data can be collected relatively inexpensively on.the Net. However, the response rates
are likely to be very unrepresentative and recent research shows that it is very difficult to get consumers to
read instructions. This one of the reasons why the quality of data collected online is often suspected.
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5.10.3 Online Marketing Trends and Techniques (16)
There are various techniques and method to online marketing and advertising in its current trends. It is
important know about each method so that one can compare the results:
1)E-Mail Marketing: The primary reason many people use the internet is to send and receive e-mail
messages. With millions of people online and the numbers substantially increasing each year, it is little
wonder that marketing communicators have turned to e-mail as a viable advertising medium. E-mail
advertising is simply the use of the internet for sending commercial messages. However, as with any other
advertising medium, there is no such thing as a single type of email message; rather, e-mail messages
appear in many forms, ranging from pure-text documents to more sophisticated versions that use all the
audio-video powers of the internet.
2)Blogs Marketing: Blogs refers to the fact that certain people, who have gained enough experience or
researchers choose to make their study, ideas, thoughts, reactions and dilemmas public, by writing either a
weblog accessible to everybody or one with restricted access, .set for confidential issues. Blogs are seen as
an authentic, uncensored way of expressing our ego and get to their final version, ready to be published, a
frequent and chronological one, of personal reflections and favourite web links. It is in this context that
products and brands are sometimes discussed. It is here where companies can endeavour to further enhance
the equity of their brands and perhaps even to generate additional business. Much of the appeal of blogs is
that a company can communicate directly with prospective customers, who in. turn can become active
communicators through their own posted comments.
3)Article Marketing: Article marketing has been used by professionals for nearly as long as mass print has
been available. In paper-print form (as opposed to online forms), article marketing is utilised commonly by
business owners as a means of obtaining free press space. Article marketing is a type of advertising in
which businesses write short articles related to their respective industry. These articles are made available
for distribution and publication in the marketplace. Well- written content articles released for free
distribution have the potential of increasing the authoring business' credibility within its market as well as
attracting new clients.
4)Buzz Marketing: Marketing buzz or simply buzz - a term used in word-of-mouth marketing - is the
interaction of consumers and users of a product or service which serves to amplify the original marketing
message, a vague but positive association, excitement, or anticipation about a product or service. Examples
of products with strong marketing buzz upon introduction were Harry Potter, the Volkswagen New Beetle,
Pokemon, Beanie Babies, and the Blair Witch Project. Buzz marketing is a marketing technique consisting,
as its name suggests, of making a noise around a new product or offer. Similar to Viral Marketing, it differs
from it in the control of the content of the advertising message. Buzz marketing activities are designed to
get consumers talking about a product or service. Buzz fosters mystery,stimulates questions, surprises
audiences and exploits consumption contexts to generate the desired behaviour.
5)Viral Marketing: Viral marketing, viral advertising, or marketing buzz are buzzwords referring to
marketing techniques that use pre-existing social networks and other technologies to produce increases in
brand awareness or to achieve other marketing objectives (such as product sales) through self-replicating
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viral processes. Viral marketing and buzz marketing are similar concepts, the latter focusing particularly on
the creation of an atmosphere of excitement or "buzz" about a new product, often within a specific social
group. Viral marketing is another form of word-of-mouth, or "word-of- mouse", that encourages consumers
to pass along company-developed products and services or audio, video, or written information to others
online. It can be word-of-mouth delivered or enhanced by the network effects of the Internet. Viral
promotions may take the form of video clips, interactive flash games, advergames, ebooks, brandable
software, images, or even text messages.
6)Rich Media Advertising: This opens the door for these kinds of ads that require more processing
capability - and provide the first glimpse of what filmed commercials on the web would be like. This newer
form of virtual advertising includes pop-up ads, interstitials, superstitials, and now even video
advertisements. There has been a natural progression, in other words, from the relatively dull and inanimate
form of banner advertising to the attention-gaining, albeit annoying, animated form of virtual advertising.
These rich media formats might even be. compared to the low-budget ads on cable T.V. that use fast-talking
salespeople, elevated noise levels, and dynamic movements to gain viewers' attention.
7)Display or Banner Ads: The most popular advertising format in the internet's short advertising history has
been the static advertisement known as a display, or banner, ad. This format can be considered analogous to
a static print ad in a magazine or newspaper. Banner ads are a staple of internet advertising. These are
typically small, static ads placed in frequently visited Websites. Banner ads on the internet are ubiquitous.
Click-Through Rates (CTRs) to banner ads are very low, averaging less than 0.3 per cent. Banner ads for
B2B companies receive somewhat higher CTRs than do those for B2C companies.
8)RSS Marketing: RSS stands for Really Simple Syndication and it may be difficult to conceptualize in the
beginning. RSS works by RSS feeds which needs to be generated by website. People can subscribe to these
RSS feeds and can view the content of the website via their RSS reader. By this people are enabled to
receive the content directly on their desktop. This method is quite new as compared to others and has
become really popular following spam issues in email marketing. RSS technology represents a format
especially created to broadcast the latest news or reports. RSS technology brings forth a radical change in
the way people can access information. Some believe that RSS is the future trend in accessing information,
since ,it has already raised a lot of questions concerning the future of traditional mass media.
9)Forum Marketing: Forum is a place where people gather and discuss their problems, strategies etc. There
are many forums on the web that you can join and participate in discussions. Most of the forums allow a
link back to the website in the signature text which would appear below the post you make. Again a good
traffic builder.
10)Search Engine Optlmlsation Marketing: There is a much loved saying among the interactive advertising
community that "If you are not on Google, the business does not exist". Although this statement is true to an
extent, there is much more to SEO than simply submitting the website to Google Search Engine. The
ultimate goal of SEO is to increase the quality or volume of traffic to websites via search engines. SEO is
founded on the theory that the higher a site appears in a search results list, the more likely that website will
be selected by searchers.
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11)Social Media Marketing: It is the new kid on the block as far as interactive advertising is concerned, but
it is increasing exponentially in popularity. Popular networking sites including Myspace, Facebook, and
Twitter are social media most
commonly used for socialisation and connecting friends, relatives, and employees. Social media marketing
is Particularly attractive to marketers simply because it encourages a high degree of interaction with
consumers and is relatively inexpensive. Social media offers a venue for word-of-mouth communication for
the new decade that allows consumers to share their experiences with the product with thousands of people
in an instant.
12)Smart Advertisements on Web: In order to back a marketing system based on Internet, the pay-per-click
network (PPC) was brought into play, and the one developed by Google is a good case in point. The text
models on the right side of the main slide of the application entail two changes in the traditional relationship
between editors and advertisers: the latter pay only when advertisements are on and the viewers click on
them; the paid research networks draw a distinction between advertisers and editors (advertisers no longer
get space on the editor's site in exchange of payment for key words).
13)Mobile Marketing: Mobile services with their unique capabilities and opportunities were exclusively
"bundled" within the mobile operators' technology network, a "walled garden" controlled by the mobile
operators with limited access provided to others. Mobile marketing offers an important means for building
up cooperation relationships, since specialists in mobile marketing use SMS text messages and MMS
multimedia messages to get to their users by means of one of the most personal devices, namely the mobile
phone. For almost a century, phones and voice transmissions were connected to networks. Nowadays,
service providers can convert voice calls in small collections of data, which are later sent on the Internet,
offering the same phone experience as traditional phone operators did, with no further investment in
infrastructure. Given the circumstances, the Internet will be our new phone, setting up a vast field for
further business.
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