Market Research Methodology
Marketing research is the systematic gathering, recording and anlyzing of data about problems relating to the marketing of goods and services. To be effective, marketing research must be systematic and not haphazard or disjointed. The research involves data collection, recording and analysis, it is not a one-step process. The data may be availalble from many sources – the organization itelf, an impartial agency or a specialist in research working for the organization. The above market research methodology may be applied to any aspect of marketing that requires information to aid decision making.
The scope of marketing research covers Product research ( new product acceptance and potential, competitive products, testing of existing products, packaging research), Sales and market research (measurement of market potential, market share analysis, determination of market characteristics, sales analysis, establihsment of sales quotas and territories, distribution channels, test markets and store audits, consumer panel operations), Advertising research (motivation, copy, media, effectiveness), Price research (cost and contribution analysis, elasticity of demand, credit policies, determination of customer perception of price and quality), Business economics (short-range and long-range forecasting, plant and warehouse location, export and international, operations research, pricing), Corporare responsibility (ecological impact, legal constrainst on advertising and promotions, social value and policies, consumer studies)
The market research methodology is comprised of a series of activities.
1. Defination of the problem or issue to be resolved
2. Examination of secondary data (previously collected)
3. Generation of primary data (new), if necessary
4. Analysis of information
5. Recommendations.
The main object of attention, as far as marketing is concerened, is the customer (or market place). This is the area that gives rise to most of the problems which marketing research is applied to. A typical problem could be that of a falling market share for one or more of it’ss organization’s products or services.
A properly executed market research methodology is able to answer many marketing questions by analyzing secondary data (desk research) and others by analyzing primary data (field research)