Transcript
Marketing Management Unit 4
Sikkim Manipal University Page No. 59
Unit 4 Understanding the Marketing
Information Systems (MIS)
Structure:
4.1 Introduction
Learning Objectives
4.2 Characteristics of MIS
4.3 Benefits of MIS
4.4 Types of Marketing Information
4.5 Components of MIS
4.6 Marketing Research
4.7 Features of Marketing Research
4.8 Objectives of Marketing Research
4.9 Marketing Research Process
4.10 Importance of Marketing Research
4.11 Advantages and Limitations of Marketing Research
4.12 Summary
4.13 Terminal Questions
4.14 Answers
4.1 Introduction
In the earlier chapter, we saw how marketing environment is changing and
presenting new opportunities and threats to an organization. The main
responsibility for identifying significant changes in the market place falls on
the marketing department. They are better placed and have advantages in
undertaking this task because they are regularly interacting with customers
and observing competition.
The Marketing Departments need to develop Marketing Information
Systems that provide them information about buyer wants, preferences,
behavior and also about competition. They are able to do this by setting up
systems and marketing related research methods to collect this valuable
information which is ultimately used to make marketing decisions.
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A Marketing Information System is a set of procedures to collect, analyze
and distribute accurate, prompt and appropriate information to different
levels of marketing decision makers.
Learning Objectives
After studying this unit, you will be able to:
Understand the concept of Marketing Information System, as well as its
characteristics & benefits.
Outline different components of a Marketing Information system and
classify different types of Marketing Information that are being used.
Understand the role and scope of Marketing Research in making
Marketing decisions.
Frame the objectives of a typical marketing research study,
Work out the steps involved in Marketing Research process and arrive
at the findings and observations
4.2 Characteristics of MIS
Philip Kotler defines MIS as “a system that consists of people, equipment
and procedures to gather, sort, analyze, evaluate and distribute needed,
timely and accurate information to marketing decision makers.
Its characteristics are as follows:
1. It is a planned system developed to facilitate smooth and continuous
flow of information.
2. It provides pertinent information, collected from sources both internal
and external to the company, for use as the basis of marketing decision
making.
3. It provides right information at the right time to the right person.
A well designed MIS serves as a company‟s nerve centre, continuously
monitoring the market environment both inside and outside the organization.
In the process, it collects lot of data and stores in the form of a database
which is maintained in an organized manner. Marketers classify and analyze
this data from the database as needed.
With the advent of Computer Technology, MIS has taken a step further to
provide managers direct access to the databases. This system called
Marketing Decision Support System (MDSS) links a decision maker to
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relevant databases and analysis tools, thereby allowing him to gain deep
insights into needs and trends of customers with the help of sophisticated
statistical analysis.
Today companies organize the information in databases such as customer
database, product database, and field sales database and combine them to
be stored in a huge database called Data Warehouse. The process of
searching through information in data warehouse to identify meaningful
patterns that guide decision making is called Data Mining.
4.3 Benefits of MIS
Various benefits of having a MIS and resultant flow of marketing information
are given below:
1. It allows marketing managers to carry out their analysis, planning
implementation and control responsibilities more effectively.
2. It ensures effective tapping of marketing opportunities and enables the
company to develop effective safeguard against emerging marketing
threats.
3. It provides marketing intelligence to the firm and helps in early spotting
of changing trends.
4. It helps the firm adapt its products and services to the needs and tastes
of the customers.
5. By providing quality marketing information to the decision maker, MIS
helps in improving the quality of decision making.
4.4 Types of Marketing Information
A Marketing Information System supplies three types of information.
1. Recurrent Information is the data that MIS supplies periodically at a
weekly, monthly, quarterly, or annual interval. This includes data such as
sales, Market Share, sales call reports, inventory levels, payables, and
receivables etc. which are made available regularly. Information on
customer awareness of company‟s brands, advertising campaigns and
similar data on close competitors can also be provided.
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2. Monitoring Information is the data obtained from regular scanning of
certain sources such as trade journals and other publications. Here
relevant data from external environment is captured to monitor changes
and trends related to marketing situation. Data about competitors can
also be part of this category. Some of these data can be purchased at a
price from commercial sources such as Market Research agencies or
from Government sources.
3. Problem related or customized information is developed in response
to some specific requirement related to a marketing problem or any
particular data requested by a manager. Primary Data or Secondary
Data (or both) are collected through survey Research in response to
specific need. For example, if the company has developed a new
product, the marketing manager may want to find out the opinion of the
target customers before launching the product in the market. Such data
is generated by conducting a market research study with adequate
sample size, and the findings obtained are used to help decide whether
the product is accepted and can be launched.
4.5 Components of MIS
The following diagram shows a typical Marketing Information System with its
components. Which are?
1. Internal Records System
2. Marketing Intelligence System
3. Marketing Research System
4. Analytical Marketing System
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The Marketing Information System
Marketing decisions and Communications
Figure 4.1
Source: Philip Kotler, Marketing Management: Analysis, Planning and Control, 5th
ed. (Englewood Cliffs, N.J.: Prentice-Hall, 1984), p. 189
Internal Records System
This includes information on (i) Order to payment cycle and (ii) sales
information systems.
Order to payment cycle has a system which records, the timing and size of
orders placed by consumers, the payment cycle followed by consumers and
the time taken to fulfill the orders, in the shortest possible time. Customers
place order through sales people and companies dispatch the goods and
receive payments directly or through bank. A proper record system
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pertaining to order – to – payment cycle management helps mangers to
decide on production and dispatch schedule, inventory and accounts
receivable schedule and also logistics and distribution management
schedules,
Sales Information Systems records everything in the sales department,
starting from Sales Call Reports to prospects history to Sales territory and
quota information for better sales planning and forecasting purpose.
Marketing Intelligence System
This is a set of procedures and sources used by managers to obtain
everyday information about developments in the marketing environment.
This system supplies „happenings‟ data unlike Internal Records System
which supplies „results‟data. Marketing managers collect data from
publishedsources like books, magazines and journals; by talking to
customers, intermediaries and sales personnel. Some companies appoint
specialists to gather consumer and competitor information, who does
mystery shopping to monitor the performance of their own or competitor‟s
dealers. Competitor information can also be obtained by buying their
product, attending their press conferences, trade shows and reading their
annual reports. Companies purchase commercial information from outside
suppliers and market research agencies like IMRB, ORG – MARG to obtain
competitive data on their sales, advertising expenditures etc., besides their
own.
Marketing Research System
This is the third component of MIS. Marketing Research provides
information to marketing manager when he/she encounters marketing
problems. This may involve conducting Marketing Research survey by
collecting primary data. These surveys may be conducted by the marketing
department itself or it can hire services of an external marketing research
agency.
Analytical Marketing Systems
Also known as Marketing Decision Support systems (MDSS), this is a co-
ordinate collection of data, systems, tools and techniques with supporting
software and hardware by which an organization gathers and interprets
relevant information from business and environment and turns it into a basis
for marketing action. All the data which is generated through the other three
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systems described above are stored in a data base. The storage and
retrieval capability of decision support system allows the collection and use
of a wide variety of data throughout the company. Senior managers can
access the data base and continually and monitor sales, markets,
performance of the sales people and other marketing systems as well.
Self Assessment Questions
1. A Marketing Information System (MIS) caters to the needs of
______________
2. MIS enables a company to develop effective ______________ against
emerging marketing threats.
3. _____________ Information is the data that MIS supplies periodically.
4. ____________ Information is developed and provided in response to
any specific data requested by a marketing manager.
5. In Marketing Decision support systems, the manger is provided direct
access to _______________
4.6 Marketing Research
Earlier we saw that Marketing Research is an important component of the
Marketing Information System. Marketers need to acquire good
understanding of their own markets to monitor the changing environment.
They need information to assess their own past performance as well as to
prepare future marketing plans. Hence they require timely and accurate
information on their consumers and competitors as well as on the
performance of their products. In today‟s highly competitive and complex
environment consumer needs are changing at a fast pace. Hence decision
making is very challenging.
Marketing Research performs the task of collecting, recording and analyzing
relevant data. Thus, it has emerged as one of the important activities of the
marketing function.
American Marketing Association (AMA) defines Marketing Research as –
Definition: Marketing Research is the function which links the consumer,
customers and public to the marketer through information – information
used to identify and define marketing opportunities and problems; generate,
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refine and evaluate marketing actions; monitor marketing performance; and
improve understanding of marketing as a process.
Philip Kotler defines Marketing Research as – the systematic design,
collection, analysis and reporting of data findings relevant to a specific
marketing situation facing the company.
4.7 Features of Marketing Research
1. It is a systematic process – It has to be carried out in a stepwise and
systematic manner and the whole process needs to be planned with a
clear objective.
2. It should be objective – It is important that the methods employed and
interpretations are objective. The research should not be carried out to
establish an opinion nor should it be intentionally suited towards
predetermined results.
3. It is multi-disciplinary – Marketing Research draws concepts from
other disciplines such as Statistics for obtaining reliable data and from
Economics, Psychology and sociology for better understanding of
buyers.
4.8 Objectives of Marketing Research
Marketing Research may be conducted for different purposes. Based on
how organizations use Marketing Research, objectives of Marketing
Research can be summarized as follows:
1. To understand why customers buy a product
2. To forecast the probable volume of future sales or expected market
share
3. To assess competitive strengths and strategies
4. To evaluate the effectiveness of marketing action already taken
5. To assess customer satisfaction of company‟s products/services
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Exhibit 1
Following is the example of TATA Nano:
Management decision problem
Will the conversion of „Nano‟ to a taxi affect brand image
and consequently sales? Will initial demand may lead to stock out.
Whether the prices of „Nano‟ will be sustained over a
period of time with the economic changes in raw material
price rise? With the hike in sales of „Nano‟, whether the infrastructure
of the country will be able to sustain the volume of traffic?
Will the Protest of farmers against Nano plant in Singur will
affect the sale? Will General Perception of brand “TATA” in small car
segment affect the sale?
Marketing research problem
As price of Nano is around One Lakh rupees, possibility of car being
used as taxi cannot be avoided. Time to convert raw material into Nano
Determining the trends in steel, rubber and other raw material prices
The focus of India in building infrastructure and spending trends
They thought that they are cheated by the government.
Tata is known for heavy commercial vehicle. This common perception
can affect the sale of Nano.
4.9 Marketing Research Process
Every marketing research problem is different requiring a special approach
or emphasis. Still there is a sequence of steps, called the research process
which can be followed in all the marketing research studies and projects.
Each step in this research process in independent but it is closely related to
other steps, because the result of the preceding step is the basis for the
succeeding step.
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Fig. 4.2: Marketing Research Process
Step I – Define the problem and research objectives
It is said that „a problem well – defined is a problem half – solved‟. A careful
and precise definition of the marketing problem will lead to useful and
relevant results which can solve the marketing problem.
Each research project should have one or more objectives which form the
broad frame within which research has to be conducted.
It is very important to formulate the problem properly as being the first step
in the process; any error in this can mislead the entire study towards
incorrect and erroneous results.
Step II - Develop the Research Plan and Design
A Research plan is simply the framework within which collection and
analysis of data is undertaken. This step involves decisions on the data
sources, research approaches, research instruments, sampling plan and
contact methods.
1. Data sources – The researcher has to decide which data sources to
use – Secondary Data or Primary Data or both.
Secondary Data are data which collected for some other purpose or for
commercial purpose of selling.
Define the problem & research objectives
Develop the Research Plan & Design
Collect the information
Analyze the information
Present the findings
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Primary Data are freshly gathered for a specific purpose or a specific
research project. Researchers usually look for Secondary Data to see
whether the research problem can be partly or fully solved without
collecting primary data. Secondary Data, when available, should be
checked for reliability, accuracy and relevance to specific situation. If so,
it is a much better option as it is cheaper and is immediately available. If
such needed data is not available, primary data will have to be collected.
2. Research Approaches – Primary Data can be collected using any of
the five approaches. They are:
1. Observational Research – Fresh data can be collected by
observing the situation and the people in the situation.
2. Focus Group Research is a method of discussion in which a team
of eight to twelve persons invited for a group discussion in presence
of a skilled moderator to discuss a product, service, a firm or any
marketing related activity. The proceedings are observed and
recorded on videotape and subsequently analyzed to understand
consumer attitudes, beliefs and behavior.
3. Survey Research – This is the most common of the approaches
wherein surveys are undertaken with the help of a questionnaire to
learn about people‟s knowledge, beliefs and preferences.
4. Behavioral Research – Customer‟s actual behavior in terms of
actual purchases reflect their preferences and are more reliable than
responses provided in surveys which are memory based.
5. Experimental Research – The most scientific method of research is
experimental research which tries to capture cause and affect
relationships.
Experiments are conducted by selecting matched groups of subjects,
which are subjected to different treatments. Extraneous variables (The
external variable that affect the research process) are controlled and
then responses of the two groups are observed and checked for
statistically significant differences, if any. Since the extraneous factors
are eliminated or controlled, the observed effects are related to the
variations in the treatments.
3. Research Instruments – There are mainly two types of research
instruments: questionnaires and mechanical devices
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i Questionnaire – This consists of a set of questions logically
arranged and presented to the respondents to answer.
Questionnaire is the most commonly used instrument for collection
of primary data due to its flexibility. It needs to be carefully prepared
and pre – tested before being used for actual data collection.
ii Mechanical Devices – Mechanical Devices such as galvanometers
are used to measure the interest or emotions aroused by exposure
to an ad. Eye Cameras study respondent‟s eye movement to see
which part of an ad attracted attention first and how long they pay
attention to a single item. These days Television audience ratings
are measured using Audiometers which can be attached to TV‟s in a
set of sample households. These devices record when the set is on
and to which channel it is tuned. The data collected by mechanical
devices are generally found to be more accurate than by human
observation.
4. Sampling Plan – Now the researcher must prepare a sampling plan
which outlines who should be surveyed (Sampling Unit), How many
should be surveyed (Sample Size) and how should they be selected for
the survey (Sampling Procedure).
i Sampling Unit – Researcher must define the element of the target
population by whom information shall be collected. For example,
housewife or a youth between 16 – 25 years or an office located
on M. G. Road.
ii Sample Size – Large samples provide more reliable results than
smaller samples. But normally sample size is decided based on
nature of the study and variance in the population, level of
accuracy desired and above all money available for research.
iii Sampling procedure – Two types of methods are available for
selecting the samples – Probability Sampling and Non– Probability
Sampling.
Probability sampling method requires that each element of the
population has an equal or known chance of getting selected. It also
allows the calculation of confidence limits for Sampling Error. Three
commonly used Probability sampling methods are Simple Random
Sampling, Stratified Random Sampling and Cluster Sampling.
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In Non Probability Sampling method, respondents are chosen on the
basis of researcher‟s judgment or convenience and this method does not
allow sampling error to be measured. In spite of these limitations, many
researchers take Non – probability samples due to time and cost
constraints. Three commonly used Non – Probability sampling methods
are Convenience Sampling, Judgment Sampling and Quota Sampling.
5. Contact Methods – Now the researcher has to decide how the
respondent should be contacted. The choices of methods available are
mail, telephone, personal interview or online interview.
Mail Questionnaire – This is the best way to reach people who may not
give personal interview or if the subject of the study is of a personal nature.
This questionnaire should be simple and clearly worded so that respondent
can fill up the answers without any assistance. The response rate in this
method is usually low and responses come slowly.
Telephone Interview – This method is very quick way for gathering
information. The method is interactive, in case any clarification is required,
but such an interview typically should be short. Only few questions can be
asked through this method. In India, Telephone interviewing is difficult as
people do not like to answer questions coming from strangers.
Personal Interview – This is the most versatile method which can be
adapted to any kind of research subject. By face to face interaction
researcher will be able to make personal observations. It is the most
expensive and also time consuming method. Personal Interviews can be
undertaken after arranging interviews at the respondent‟s premises or at
Shopping Malls by stopping people and requesting interview. The latter
method is called Mall Intercept Method. This method is necessarily a non –
probability method but is less expensive and does not take too much time.
Online Interviews – There are many ways to collect information through the
internet. A Company can put a questionnaire on its web site and offer
incentive to people to answer; a banner can be kept on a popular site like
Yahoo!, inviting people to answer some questions and win a prize. Every
day new methods are being evolved to start a new way to collect data.
Advantages of online Interview are that it is very inexpensive and can be
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very fast, whereas disadvantage is that it has limited reach and results can
be skewed.
Step III - Collect the Information – After designing the research
instrument, the researcher should now actually contact the respondent and
collect the information. At this stage, it is very important to keep the quality
of the data under control by ensuring accurate unbiased answers and by
seeking the entire respondent‟s co – operation. In case the researcher has
to appoint data collectors to collect the information from respondents, they
must be well trained and motivated.
Step IV- Analyze the information –In this stage researcher collects the
data and codify it. Nowadays, many questionnaires are pre coded which
makes the task of data entry very easy. The coded data is then tabulated to
provide frequency distributions. Tabulated data is now analyzed. Averages
and measures of dispersion are computed for the major variables.
Advanced Statistical Techniques are used to discover findings. Here the
data is converted to information which may be used in decision – making.
Step V - Present the findings – At this last step, the researcher should
present findings to the decision makers or users of the information.
Normally, the findings are presented in the form of a report which should
present the following aspects of the research undertaken.
General Format of a Report
1. Introduction – An introduction to background of the marketing problem
and the firm.
2. Statement of Purpose – Statement of purpose and objectives of the
study including hypothesis/hypotheses is/ are proposed.
3. Research Methodology – Methodology of data collection used and tools
used, Sampling Procedure used and Sample Size, Limitations of the
study if any.
4. Analysis of Data – Includes tables /graphs and statistical analysis used
along with data interpretation.
5. Findings and Conclusions – Major findings and conclusions.
6. Recommendations – Recommendations for action.
7. Appendix and Bibliography.
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Exhibit 2
Continuing the example of TATA Nano, the analysis is as follows:
Hypothesis (or assumptions)
Conversion of „NANO‟ to a taxi do not affect the brand image and
consequently sales.
NANO is safe for driving.
Hike in price of NANO will not affect the sale.
People prefer to purchase the NANO instead of two wheeler.
People can wait for NANO for few months.
Focus group
Group Size-10
Time Duration-1 hour
Characteristics of Respondents:- All have driving experience
Between age group 18-25
All have a Good Knowledge of Nano
Results of Focus Group
Survey
Sample Size-330
Sample groups Location
Data collection involves a field force and electronically
Age Groups-20-25
26-35
36-45
45+
Both Males and Females
Result withdrawn from survey
The first thing about NANO, which comes in the mind of all age group
(male and female) is- “compact”, “affordable”, “choti si” (small) and
“economic”.
Most of the respondents both male and female of all age groups want to
purchase NANO instead of a two wheeler. But the females (70%)
between age group 36-45 are highest among all the age
groups.
From the finding it came out that most of the respondents both male and
female of all age group consider price as the major purchasing factor
while on the other hand there are many who consider all the factors-
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price, mileage, design, and interior space. But there is a degree of
variation in these preferences.
In the colour preference there is a wide difference in their choices.
This is as follows-
Females love to see their NANO mostly in white and silver colour.
Males in the age group 20-25yrs give weightages to silver and red, and
the remaining age groups prefer white and silver only .Yellow is found to
be the least preferred colour, while there is a significant likeliness for the
black colour also.
Females in the age group 20-25 explores a shocking preference for
NANO to offer it to their children, also age group 26-35 want to offer
NANO to their children, and the age group 36-45 want to use it as a
“Family Car” for shopping and travel and 46+ want to offer NANO as a
“gift”.
Males in the age group 20-25 and 26-35 want to use it as a family car for
shopping and travelling. And the age group of 36-45 gives their
preference for NANO to offer it to their children. And 45+ want to offer
NANO as a gift.
Promotion of Tata NANO in the “Delhi‟s Auto Expo” proved to be a great
success for NANO. And with the time before its launch on the roads it
(NANO) emerged as the people‟s car. All the age groups would like to
recommend NANO to their relatives once they have a good driving
experience of NANO after its launch.
Most of the Females can‟t wait for NANO after placing the order but
females in the age group 26-35 are ready to wait for NANO from 4-6
months.
Most of the Males in the age group 20-25 and 36-45 are ready to wait for
2-6 months while others in the age group 26- 35 can wait for 4-6 months
but 45+ are not ready to wait for NANO.
Females of all age groups and males of 20-25 and 36-45 age groups do
not favour the increase in price. While the people below 35yrs do not
believe that “Tata will be able to maintain the price”
Most of the people of all age group do not care about NANO being used
as a taxi, as they feel that this will not hurt their feelings regarding NANO.
But females of age group 20-25 do not favour NANO being used as a taxi
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as this will embarrass them. All the people believe that there will be a
huge traffic problem withthe increasing number of NANO running on the
roads.
Females of age group 20-25 and 36-45 can‟t trust NANO for safety while
the age group 26-35 and 45+ do believe in NANO for safety. In case of
the males, the age group between 20-25 and 26-35 can‟t
trust NANO for safety, while the others do believe NANO for safety.
Suggestion
Tata should increase the production of NANO so that customers don‟t
have to wait much for their car, as they feel urgency for NANO. As people
believes that NANO is people‟s car, and will be affordable by common
men which was a dream earlier for them. So the price should be kept
stable in future with the increase in price of raw material. Otherwise it will
be out of their reach and people believe in Mr. Ratan Tata‟s statement of-
“Promise is a promise”.
Tata should give exchange offer against a two/four wheeler so that those
consumers can be easily converted to NANO users. Safety measures
can be enhanced, because people consider it as their prime concern
while purchasing. An option for customization should be available.
Analysis
Project on marketing research was a learning experience and brought us
close to NANO and provided us depth knowledge through focus group
and survey. Focus group ended up with innovative findings, which helped
us in going further on the research. But some time in between the focus
group was leading to group discussion Which was handled carefully
without hurting the feelings of the respondents.
Survey highlighted some futuristic facts about NANO, i.e. Females in the
age group 20-25yrs want to offer NANO to their children. Respondents
understood this question with their own interpretations. Which tells us
that questions asked to the respondents should be more simplified?
Because the respondents are diversified.
(Source: www.managementarticles.info)
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4.10 Importance of Marketing Research
With the increase in customer orientation, it has become necessary to
acquire information on consumers‟ needs, preferences and opinions. This
will help the marketers to make changes in the marketing mix. Thus
marketing research is a very important and useful tool in enhancing the
decision – making ability of the marketer in today‟s dynamic environment.
Activity 1:
You are appointed as a marketing executive in a company manufacturing
multi-purpose ayurvedic cream. The company wants to know their market
position in the state of Rajasthan. You are expected to carry out a market
survey. The objective is to get the results as early as possible and which
involves less expenditure. So, list out the steps you will take to achieve the
above objective. As a marketing executive, mention the types of
information that you seek in order to get the accurate market position of
the company.
Self Assessment Questions
6. ___________ involves collection of information from a group of 8 – 12
persons who are invited to discuss matters related to a product or
service.
7. ____________ Data are data collected for some other purpose.
8. _______________ Research tries to capture cause and effect
relationships.
9. In _____________ sampling method, respondents are chosen based
on researcher‟s judgment or
10. ______________ Method involves stopping people while they are
shopping and requesting an interview.
4.11 Advantages and Limitations of Marketing Research
Advantages:
1. It uses a scientific approach in designing the problem and finding out
alternative solutions through use of statistical and mathematical
techniques.
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2. It helps to make better marketing decisions as they are based on
authentic information, rather than pure judgment or guess work.
3. It helps in evaluating the effectiveness of various marketing actions and
draws attention to likely problem areas.
4. It is helpful in ascertaining the reputation of the firm and its products.
5. It helps the firm in knowing the marketing and pricing strategies of its
competitors.
6. It is helpful to a firm in making sales forecasts for its products and
thereby, establishes a harmonious match between demand and supply
of its products.
Limitations:
Like any other managerial tool, marketing research is not free from flaws. It
is seen that in many cases, wrongly executed marketing research project or
improperly interpreted findings, has had to disasters in business. Following
are some of the limitations of marketing research.
1) Not an exact Science: Though marketing research uses scientific
methods but it is not an exact science. It deals with human behavior and
many controllable and uncontrollable factors, which influence marketing
forces, play their role.
2) It is not a panacea: Marketing Research can only provide accurate
information, based on which marketers have to take their decision using
their experience and judgment as well. Marketing Research is only an
aid, it does not provide solutions.
3) Human Tendencies – Consumers, dealers, wholesalers etc are the
basic constituents on whom marketing research is carried out. Human
beings behave artificially when targeted for research information. These
aspects of human behavior affect the quality of marketing research data.
4) Inexperienced research staff: It needs well trained and experienced
researcher, interviewer and investigator, otherwise quality of data will be
adversely affected.
5) Involves high cost: It is considered a luxury or a wasteful activity in
India, as it involves high cost.
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6) Limitations of tools and techniques: The validity of marketing
research is also limited by the limitation of tools and techniques involved.
4.12 Summary
Marketing Research is the systematic gathering recording and analyzing
of data about problems relating to marketing of goods and services.
Marketing managers need a Marketing Information System (MIS) to
carry out their tasks of analysis, planning, implementation and control
related to the marketing function, effectively.
By providing timely and accurate information, MIS helps in improving the
quality of decision – making.
An MIS has four Components (I) Internal Records System (II) Marketing
Intelligence System (III) Marketing Research System (IV) Analytical
Marketing System.
Marketing Research Process refers to a set of sequential steps to be
followed to conduct a marketing research study.
The main features of Marketing Research are that it is a systematic
process; it should be objective and it is multidisciplinary in nature.
With the changing character of markets, increase in Customer needs
and wants and increasing competition, it is important that marketers
acquire information about consumer, the markets and the competition.
So, Marketing Research becomes an important tool for marketers as an
aid in decision making.
List of Key Terms
Information system
Data warehousing
Data Mining
Marketing Intelligence system
Marketing research
Report
4.13 Terminal Questions
1. Explain the benefits of MIS?
2. Discuss briefly the process of Marketing Research?
3. What are the features of Marketing Research?
Marketing Management Unit 4
Sikkim Manipal University Page No. 79
4. What is the usefulness of Marketing Decision support system?
5. Write a short note on limitations of Marketing Research?
4.14 Answers
Answers to Self Assessment Questions:
1. Marketing Decision – Makers
2. Safeguard / Defuse
3. Recurrent
4. Customized
5. Databases
6. Focus Group Research
7. Secondary
8. Experimental
9. Non – Probability
10. Mall Intercept
Answers to Terminal Questions:
1. Refer to 4.3
2. Refer to 4.9
3. Refer to 4.7
4. Refer to 4.5
5. Refer to 4.11
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