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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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Sikkim Manipal University Page No. 78

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?

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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