scope and limitations of marketing research

Marketing Research – Meaning, Scope, Objectives & Process

Meaning of marketing research.

Marketing research is a process of analyzing and conducting research about the market to understand market trends. It involves proper collection, analysis and interpretation of information regarding market conditions. Marketing research is mainly conducted to identify changes in preferences and behaviour of customers arising from the change in market mix elements viz. promotion, place, price and product. It may be defined as the mechanism which helps in linking the customers, producers and several other end users to the marketer and help in finding and communicating of all required information.

Scope of Marketing Research

Determines Customer Behaviour

Market research helps the organisation in understanding the behaviour of customers. It performs research and acquires data like age, gender, income, likes, dislikes etc. related to customers. All this data provided to an organisation helps them in developing the right product as to satisfy their wants. Marketing research helps organisations in understanding the needs and wants of customers and thereby accordingly formulates their production policies.

Provide Valuable Data

Effective decision making of any organisation depends entirely on the quality of information available with it. Marketing research supplies all important information about the market to the management team. It keeps organisation aware of market factors like demand, supply, competition, technological changes, consumer behaviour etc. All this information is vital for strategic decision making. Managers frame all their organisation policies in accordance with data supplied by marketing research.

Helps in Sales Forecasting

Marketing research support business activities by forecasting sales using different techniques. Producing and maintaining an optimum level of inventory in the organisation is a challenging task in front of every product manager. Producing goods in accordance with demand helps in reducing risk and raising profit. Over producing and under-producing of goods adversely affects the business. Marketing research forecasts sales using sale force estimate method, sale force method, jury method etc. and supplies data to the organisation. This helps in framing production policies accordingly.

Lower Business Risk

Marketing research plays an important role in reducing business risk and raising the revenue of the business organisation. It helps businesses in carrying on their operations in accordance with market requirements. The business acquires all current data and generalized information about market trends. All decisions are taken in order to focus on the customer’s current demands and thereby producing the right product. This results in avoiding resources of organisation and lowering risk.

Evaluate Market Performance

Market performance has an effective role in developing a good image of the business in the market. Marketing research helps the business in evaluating its performance in the market and taking action accordingly to improve it. It checks the effects of product, price, brand name, packaging etc. on sales volume. Marketing research studies the customer response towards company products in the market and provides all data. It evaluates and helps in choosing best pricing policies, distribution channel and advertising techniques which help in improving the market performance.

Facilitates Introduction of New Products

Marketing research enables the business to examine and introduce their new products in the market. It enables to conduct testing of new products in small or local markets initially and studies consumer reaction towards it. This helps the business in understanding the deficiencies and problem in their product. They can accordingly overcome these issues and develops an efficient marketing mix for their product. All these helps in minimising the risk involved in the launching of a new product. 

Choose Best Promotion Techniques

Selection of proper promotional techniques is a must for increasing the sales of a business. Marketing research helps business in deciding suitable promotional and marketing programmes for their products. It helps the business in understanding the customers’ needs and behaviour.

Accordingly, promotional techniques are designed and implemented which displays the keys wants of customers as the product features. It has an influencing and long-lasting effect on customers and helps in attracting more of them. Marketing research increases the sales of a business by choosing the best promotional measures.

Objectives of Marketing Research

Identify Customer Needs And Expectations

Marketing research helps business in understanding the needs and wants of customers. Proper knowledge of what customer want is necessary to deliver the products as per their expectations. Marketing research involves reaching out to customers and interacting with them to understand their demands. It helps in developing the right product as per customer requirements.

Minimise Marketing Costs

Marketing research process monitors and controls all marketing programmes. It performs a proper analysis and research of the market before formulating various marketing policies. It helps in choosing the efficient means of advertising and distributing the goods to reduce the marketing expenses. Marketing strategies used by competitors are also analysed through this process to design better plans for marketing.

Setting Up Proper Price Policy

Deciding a proper price is a crucial decision for every business organisation. Pricing policy should be such that it should neither adversely affects the customers nor the organisation itself. Market research conduct research about price policies adopted by several other competitors in the market. It collects a considerable amount of information regarding what competitors are charging and also what customers are willing to pay. This all helps in deciding optimum prices for different products.

Finds Target Market And New Opportunities

Identifying potential customers and new opportunities are important for grabbing the market. Marketing research explores the wide and large market and find out the opportunities for new products by recognising the unfulfilled needs of customers.

It finds and gathers collection about new areas where its products can be sold. Different information about people of that area like their taste and preferences, purchasing power, culture and tradition is collected and analysed to target that area.

Recognise Deficiencies In Product

Marketing research helps the companies in identifying the deficiencies in their products. Timely identification and removal of faults from company products is essential to retain its image in the market. Marketing research process involves interacting with customers and takes their valuable feedback and suggestion.

These suggestions and feedback from customer help the customers in improving their product quality. Marketing research also informs of any technological changes in market to business so that accordingly changes can be made timely.

Product Positioning In Market

Positioning of product among targeted customers is an important task. It is the means through which customers are attracted and the market for the product is developed. Marketing research process collects all relevant information about the targeted audience.

This information helps in designing a company offers an image that may attract customers and have a long-lasting effect on their mind. Positioning strategy is designed differently for each product that may attract large customers. These strategies should clearly denote the main features of products.

Process of Marketing Research

Problem identification.

The first and foremost step in the marketing research process. The identification of problems. For which the research is to be conducted. Unless and until the problem is recognized clearly. No clear cut plan can be formed leading to wastage of resources.

Research Plan Formulation

It consists of strategies. That is to be followed, for solving the problem and achieving the required objectives goals. It involves various  data sources . From which data is to be collected. Various research approaches, contacting ways and sampling methods.

Acquiring And Gathering Information

It is one of the important step in this process. Its focus is on a collection of all required information. Using various data sources. So that the result will come true and fair.

Interpretation Of Information

The successful collection of all required information. A systematic and proper study is to be done. To conduct a successful analysis of all collected information. To get details in accordance with the research plan.

Result Presentation

In this step, all the findings of the process are presented to  management  team. For the researcher to take efficient decision-making.

Decision Making

This is the ending of the marketing research process. Once the research results are presented to the management team. They use this research information in their decision-making.

Marketing research plays an important role in studying consumer behaviour. It is very efficient tool for the marketers to understand the trends of the market that mainly consists of information relating to new product launch in the market, trends in consumer demand, pricing strategy of the competitor and available close substitutes of the product.

Marketing research companies easily identify what their customers want which helps in developing products of their use so that competitive advantage over other competitors can be maintained in the market. It helps in finding out the target market and interacts directly with potential customers to get valuable feedback and suggestion. These all information acquired through this process enables in the smooth functioning of the marketing process.

Related posts:

• Nature and Importance of Consumer Behaviour
• Characteristics of Organisational Behaviour
• Functions of Marketing Information System
• Nature and Scope of Marketing Management
• Meaning & Process of Customer Relationship Management
• 9 Applications of Marketing Research

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Marketing Research: Natures, Characteristics, Scopes, Advantages and Limitations

Updated: Apr 27, 2023

• Marketing Research

Nature of Marketing Research

Characteristics of Marketing Research

Scopes for Marketing Research

Advantages of Marketing Research

Limitations of Marketing Research

Marketing Research is a process of determining the viability of a new service or product through research conducted directly with potential customers. Marketing Research allows the company to discover the target market and get opinion and other feedback from consumers about their interest in product and services.

The task of marketing research is to provide management with relevant, accurate, reliable, valid and current information. Competitive marketing environment and the ever-increasing costs attributed to poor decision making require that marketing research provide sound information.

It is the systematic gathering, recording, and analysis of qualitative and quantitative data about issues relating to marketing products and services. The goal of marketing research is to identify and assess how changing elements of the marketing mix impacts customer behaviour.

Definition:-

Marketing research as the function that links the consumer, customer, and public to marketer through information. Information used to identify and define marketing opportunities and problems, generate, refine, and evaluate marketing performance, and improve the understanding of marketing as a process.

Kotler defines it as, a systematic problem analysis, model building and fact finding for the purpose of improved decision making and control in the marketing of goods and services.

From the above definitions it can be inferred that:-

Marketing research helps in gathering, recording and analysis of data relating to the marketing of a product.

It acts as a guide and helps the process of decision making to be more accurate and scientific.

Its real purpose is to help the manufacturer or distributor to increase his sales.

Market Research can be conducted directly by the organisation or companies or even outsourced to agencies which have expertise in this process.

The process of marketing research through -

Deploying service

Interacting with the group or also known as sampling

Primary purpose of Marketing Researching is to examine the market associated with the particular product of services.

Three key objectives of Marketing Research-

Administrative- It helps a company or business to proper planning and organisation.

Social- It satisfied customers' specific needs through a required product or service. The product or service should comply with the consumer.

Economical- It determines the economical degree, the economical degree of the success or failure of a company. Otherwise inducing new product or services would be a great deal of loss for the companies.

Nature of Marketing Research -

1. marketing research is systematic.

Thus systematic planning is required at all the stages of the marketing research process. The procedures followed at each stage are methodologically sound, well documented, and as much as possible, planned in advance. Marketing research uses the scientific method in that data are collected and analysed to test prior notions or hypotheses.

2. Marketing Research is Objective

It attempts to provide accurate information that reflects a true state of affairs. It should be conducted impartially. While research is always influenced by the researcher’s research philosophy, it should be free from the personal or political biases of the researcher or the management.

3. Technological Changes

The technological changes comprises factors associated with knowledge applied and also the production of products and services. These changes have an impression on the business of an organisation.

4. Research and Development

The exciting rate of technology changes pacing through all kinds of industry is due in large part to increasing expenditures for research and development.

5. Product Changes

Technological advances ensured partially from research and development, partially from growing customer sophistication, have resulted in the third reason of complexity product changes. Whereas the marketing manager of time and probabilities of his or her product ideas changing into marketable, today’s manager must be upset by the staggeringly high product mortality.

6. Information Technology Changes

The changes in information technology (IT) have profound impact upon the quality of management and organisations. The marketing managers apprehend that the power to store, process, retrieve, and show the proper information for the right decision is significant.

Characteristics of Marketing Research -

1. scientific method.

Competent marketing research is characterised by an attempt to follow the scientific method. Careful observation, formulation of hypotheses, prediction and testing.

2. Research Creativity

At its best, marketing research develops innovative ways to solve a problem.

3. Multiple Methods

Competent marketing researchers keep away from over reliance on any one method, preferring to adopt the method to the problem rather than the other way round. They also recognize the desirability of the simultaneous gathering of information in different ways to give greater confidence then any one method would provide.

4. In Dependence of Models and Data

Competent marketing researchers recognize that the facts do not speak for themselves but rather drive their meaning from models of the problem. They attempt to guide their search for information on the basis of a causal decision model to help the executive.

5. Value and Cost of information

Competent marketing researchers show concern for measuring the value of information against its cost value/cost is a consideration when the marketing research department chooses which research projects to conduct, which research design to use and whether to gather more information.

Scopes for Marketing Research -

1. sales analysis.

Sales analysis considers types of consumers that constitute the potential market, size and location of the market, growth and concentration of the market over a certain period of time, purchase habits of key market segments, the consumer’s preference to buy some particular brands.

2. Sales Methods and Policies

Marketing research studies focus their attention to evaluate the effectiveness of the present distribution system likely to be used in establishing or revising sales territory boundary, compensation to sales forces, physical distribution and analysis of cost of distribution cost.

3. Product Research

Every marketer tries to formally or informally utilise information to manage the existing and new products and examines market feedback about competitive offerings. Marketing research studies have been conducted to monitor the performance of the test brand launched in the selected market.

4. Market Research

It covers the aspects regarding size and nature of market including export markets, dividing the consumer in terms of their age, sex, income (market segmentation). It may include market trends, market share, market potential.

5. Sales Research

It relates to the problem of regional variations in sales, fixing sales territories, measurement of the effectiveness of a salesman, evaluation and impact of sales methods and incentives etc.

6. Product Research

It relates to the analysis of the strengths and weaknesses of the existing product, product testing problems relating to diversification, simplification, trading up and trading down.

7. Packaging Research

In essence, it is a part of product research. But recent developments in packaging and its contribution to advertising has led it to occupy an important position in marketing. To know the impact and its responses in the market has become an independent research field.

8. Advertisement Research

It undertakes a study relating to the preparation of the advertisement copy (copy research), the media to be used (media research) and the measurement of advertising effectiveness.

9. Business Economics Research

Problems relating to input-output analysis, forecasting, price and profit analysis, and preparation of break-even charts are the main fields of this research.

10. Export Marketing Research

This research is intended to study the export potentials of the product.

Advantages of Marketing Research -

1. forecasting:-.

Marketing research facilities forecasting of demands for the products of the firm. This will help in adjusting the production schedules accordingly.

2. Assessing Product Acceptance:-

Marketing research helps in knowing the probability of acceptance of the product in its present form. Such type of research may lead to alterations in design, colour and other features of the product to make it more acceptable by the consumers.

3. Rightful Promotion:-

Marketing research reduces wasteful expenditure on production and advertisement. It tells in advance the products and services which are required by the customers.

4. Understanding New Markets:-

Marketing research helps in discovering new markets and in understanding the behaviour of various types of customers.

5. Suitability of Channels:-

Marketing research can be used to study the effectiveness of existing channels of distribution, advertising, sales promotion activities and other marketing activities.

6. Overall Business Direction:-

Marketing research provides invaluable information which not only affects the working of the marketing departments, but has an important impact on the enterprise, particularly production and purchase departments.

7. Assessment of Middlemen:-

Marketing research helps in knowing the reaction of the middlemen in regard to the company’s marketing policies. This may lead to the discovery of the new lines of production which can be taken up along with the existing products.

Limitations or Constraints of Marketing Research -

1.budgetary constraints.

Gathering and processing data can be very expensive. Many organisations may lack the expertise to conduct extensive surveys to gather primary data, whatever the potential benefits, and also lack the funds to pay specialist market research agencies to gather such data for them. In these cases, organisations may be forced to rely on data that is less than ‘perfect’ but that can be accessed more cheaply, e.g., from secondary sources.

2. Bias in Collecting Data:-

The effectiveness of marketing research depends largely on the types of data or information collected. The subjectivity of the investigator may have adverse effects on the effectiveness of the marketing research.

3. Unpredictable Human Behaviour:-

Marketing research is mainly a study of the behaviour of human beings. The individuals may not always give adequate and accurate data. Thus, the results of the marketing research are not 100% accurate.

4. Requires intelligent Handling:-

Marketing research is not an end in itself. It is a means of decision-marketing. It requires competent and experienced executives or managers to use the result of marketing research.

5. Supplementary, not Substitute:-

Marketing research is not a substitute for execution judgement. It only provides relevant information with the help of which executives can make decisions regarding product, pricing, promotion, place, packaging, etc.

6. Requires Competent Researcher:-

Marketing research may lead the executive to wrong results because of carelessness of the research staff. If the investigators are not competent to collect the right type of data and analyse it accurately, there will be no utility of marketing research.

7. Not Similar to Science:-

Although marketing research uses the techniques of science, it is not an exact science itself. The results obtained are not accurate as compared to physical and chemical sciences.

8. Uncontrollable Variables:-

Political, legal, technological and social variables are uncontrollable from the standpoint of the individual marketing decision market. The results are affected if these variables change.

9. Human tendencies:-

Consumers, dealers, wholesalers, retailers, etc. are the basic constituent on which marketing research is carried out. Human beings act artificially when they are targeted for research work. Many aspects of human behaviour affect the results of marketing research.

10. Lack of technology & Computerization:-

Computers are usually not used in research work as it is costly and there is lack of proper training. If computers are used widely, they will reduce the time taken for analysis and research results can be produced much faster.

11. Time constraints

Organisations are often forced to balance the need to build up as detailed a picture as possible regarding customer needs etc. against the desire to make decisions as quickly as possible, in order to maintain or improve their position in the market.

12. Reliability of the data

The value of any research findings depend critically on the accuracy of the data collected. Data quality can be compromised via a number of potential routes, e.g., leading questions, unrepresentative samples, biassed interviewers etc. Efforts to ensure that data is accurate, samples are representative and interviewers are objective will all add to the costs of the research but such costs are necessary if poor decisions and expensive mistakes are to be avoided.

13. Legal & ethical constraints

The Data Protection Act (1998) is a good example of a law that has a number of implications for market researchers collecting and holding personal data. For instance, researchers must ensure that the data they obtain is kept secure, is only used for lawful purposes and is only kept for as long as it is necessary. It must be made clear as to why data is being collected and the consent of participants must be obtained. In addition to this, there are a number of guidelines, laid down by such organisations as the Market Research Society, that, although not legally binding, encourage organisations to behave ethically when dealing with members of the public.

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Everything you need to know about Marketing Research

1. definition of marketing research:.

Marketing research is the systematic collection and analysis of data relating to sale and distribution of financial products and services. Market research is an early step in the marketing process, and includes an analysis of market demand for a new product, or for existing products, as well as appropriate methods of distributing those products.

Techniques in market research include telephone polling and focus group interviews to determine customer attitudes, pricing sensitivity, and willingness to use delivery alternatives. Most large banks have their own market research departments that evaluate not only products, but their Brick and Mortar branch banking networks through which most banking products are sold.

Marketing research refers to gathering and analysis of information about the moving of goods or services from producer to consumer. Marketing research covers three wide areas: market analysis, which yields information about the marketplace; product research, which yields information about the characteristics and desires for the product; and consumer research, which yields information about the needs and motivations of the consumer.

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Marketing research is nothing but gathering and analysis of information about the moving of goods or services from producer to consumer. Marketing research covers three wide areas: market analysis, which yields information about the marketplace; product research, which yields information about the characteristics and desires for the product; and consumer research, which yields information about the needs and motivations of the consumer.

The results of marketing research will supply facts needed to make marketing decisions and will determine the extent and location of the market for a product or service.

Accelerating product cycles, easy access to information on products and services, highly discerning consumers, and fierce competition among companies are all a reality in the world of business. Too many companies are chasing too few consumers. In his book Kotler on Marketing- “How to Create, Win, and Dominate Markets,” Philip Kotler, marketing guru and a professor at Northwestern University’s Kellogg Graduate School of Management, discusses what a business has to do to be successful. He wrote, “The premium will go to those companies that invent new ways to create, communicate and deliver value to their target markets”.

Knowing, understanding, and responding to your target market is more important than ever. And this requires information good information. Good information can lead to successful products and services. Good information is the result of market research.

According to the Marketing Research Association (2000), Marketing’ Research is defined as follows- “Marketing Research is the function which links the consumer, customer, and public to the marketer through information- information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as a process.”

“Marketing Research specifies the information required to address these issues; designs the method of collecting information; manages and implements the data collection process; analyzes the results; and communicates the findings, recommendations and their implications.”

Marketing research is a $1.3-billion-dollar-a-year industry. The industry is growing at over 10 percent a year, with profits running at a similar level. Marketing Research provides, analyzes, and interprets information for manufacturers on how consumers view their products and services and on how they can better meet consumer needs. The ultimate goal is to please the consumer in order to get, or keep, the consumer’s business.

Marketing Research evolved as the U.S. economy shifted from a production-driven one to a market-driven one. As the American production of goods and services, plus imports, was beginning to satiate American demand, marketers needed to learn how to tailor their products to the needs and likes of an increasingly discerning public.

This tailoring resulted in increased market demand and, for successful companies, increased market share.

Marketing research is the systematic gathering, recording, and analysis of data about issues relating to marketing products and services. The term is commonly interchanged with market research; however, expert practitioners may wish to draw a distinction, in that market research is concerned specifically with markets, while marketing research is concerned specifically about marketing processes.

Market research is different from marketing research. Market research is a systematic study if facts about market only – who, what, where, when, why and how of actual and potential buyers.

On the other hand the scope of marketing research is so wide that it includes all functional areas of marketing including market.

2. Scope of Marketing Research:

The scope of marketing research stretches from the identification of consumer wants and needs to the evaluation of consumer satisfaction. It comprises of research relating to consumers, products, sales, distribution, advertising, pricing and sales forecasting. A clear view of the scope marketing research may be obtained by the following classification of marketing research activity.

The whole approach of marketing pivots around the tenet of meeting the consumer wants. It is essential to understand what the consumer wants, how he/she perceives the product (service), what exactly (ideally) does he/she wants to derive out of the product (service), how does he/she make the brand choice decision, what are the sources of information and influence processes, etc.

In order to take decisions any marketer would constantly monitor such information and obtain a continuous feedback of the trends in the market. As such, marketing research is an effective tool for measuring the consumers’ aspirations, trade channel behaviour, competitive actions etc.

It provides a linkage between the corporate environment and the marketing organization. Marketing research, thus, may be viewed as an important tool used as an aid for tackling problems in marketing.

3. Features of Marketing Research :

(1) Intensive Study- It involves systematic and intensive study of a marketing problem.

(a) Planned Process- We have planned procedure of investigation and analysis.

(b) Orderly Investigation- The procedure of marketing research has clearly-defined steps in proper sequence or order.

(c) Intensive Investigation- All the relevant factors involved in a marketing problem are observed closely.

(2) Scientific Approach- Marketing research adopts scientific method and objectivity in the solution of a marketing problem.

(a) Rational Outlook- Researcher or analyst has an objective attitude — rational outlook based on reason and logic.

(b) Defined Purpose- The purpose of inquiry and the problem under investigation are clearly defined.

(c) Accuracy- Accuracy (exactness) in calculation, in observation and in reporting is strictly ensured.

(d) Standardised Process- Marketing research process is standardised and can be repeated exactly in solving all problems.

(e) Scientific Attitude- The researcher has an open mind, critical attitude, creativity, absolute honesty and integrity — the hallmarks of scientific attitude and approach.

(3) Decision Tool- Marketing research is a tool for decision-making and control in the marketing of goods.

Marketing managers face numerous pressing problems from time to time during the conduct of marketing activities. They need information upon which they may take proper decisions. Manager is by profession a decision-maker. Decision-making involves a perpetual choice-making activity.

From the given alternatives one alternative is selected as the most promising course of action or behaviour. In a sense, decision-making is the essence of management. Manager needs information in planning as well as evaluating the plans in action.

Marketing manager calls upon a skilled analyst to examine the problem or question, break it up into its elements, get the needed data, analyse it and work out desirable conclusions based on facts and figures.

With the emergence of the marketing concept, marketing research has recorded fast growth and development. We should remember that marketing concept emphasises customer orientation. We have integrated plans built up around customer need and desires and designed to produce customer satisfaction.

4. Objectives of Marketing Research :

Marketing research helps the marketing executive in the formulation of all marketing plans, policies, programmes and procedures, to attain the marketing goals. When the above said plans, policies and programmes are translated into action, marketing research is used for evaluation purposes.

Since the main thrust of marketing research is on selling, promotion, advertising and distribution, it is used in minimizing all wasteful and unnecessary marketing cost. Further, the function of marketing research acts as an insurance cover for the survival and growth of the firm. Marketing research finds out for the produces.

(i) Where are his consumers?

(ii) What they want?

(iii) When they want it and?

(iv) Where and how much they are willing to pay for it?

Hence, through marketing research, marketing management can sell the right product through right channels of distribution to right consumers at right places and at right price by formulating right plans, policies and programmes with the help of right personnel.

In short, marketing research helps producers, distributors and advertisers to avoid mistakes either in manufacturing or marketing or to that extent, it can minimize business failures.

5. Functions of Marketing Research:

The basic task of marketing management is that of preparing plans, executing them and controlling operations to achieve the most profitable allocation of company resources to current and future market opportunities. Market research aids the management in these efforts.

The need for such assistance in decision making stems mainly from the constant changes characteristic of markets. If they were static or changed very slowly the marketing of product lines and marketing methods to market opportunities would not pose difficult problems.

Executives could learn from past experiences and avoid repeating past errors. But markets are constantly thus have impact on the market. As a result, the marketing executive are frequently faced with marketing problems, unknown in their previous experience, that pose major uncertainties, marketers are well aware of these risks, and many of them have organized marketing research departments together and analyse information that enables them to reduce the reliance they must place on institution- based decision.

i. The emergence of buyer’s market requires continuous need of marketing research to identify consumers’ need and ensure their satisfaction.

ii. The ever expanding markets require large number of middlemen and intensive distribution. Marketing research could help identify and solve the problems of middlemen and distribution.

iii. There is always a change in the market conditions and the requirements of consumers. Marketing research enables to anticipate and meet any such changes.

iv. Marketing research can help bring about prompt adjustments in product design and packaging.

v. It can help find out effectiveness of pricing.

vi. It can help find out the effectiveness of sales promotion and advertisement.

vii. It can help identify the strength and weakness of sales force.

viii. The impact of economic and taxation policies on marketing could also know through marketing research.

In short, marketing research enables the management to identify and solve any problem in the area of marketing and help better marketing decisions.

6. Importance of Marketing Research:

Marketing research has become so important in nowadays competitive context that today almost all the companies are either having their independent research and development departments or they are outsourcing this function to professionals in the said field.

The increasing importance of marketing research is based on the below mentioned three trends:

1. Expansion of Business from National to Global Market:

Nowadays in order to sustain in the market place, it is impossible for companies to continue their operations in the same manner as they were earlier doing, they have to improve their products and services as per the expectations of global market. For expansion either in new market place or in case of launch of new products, the required information can be gathered by marketing research.

2. Transition from Consumer Needs to Consumer Wants:

Now customers are expecting value with the purchase of products. Products and services should be modified according to the change in economic environment. For customer retentions and development of high brand loyalty, it is essential to obtain information related to changing behaviour of customers with the help of marketing research.

3. Shift from Price Competition to Non-Price Competition:

Purchasing power of customers is increasing with the increase in the income level therefore they want high quality products at right price. Sales promotion tools are very much helpful to attract customers for particular brand but it need information about product attributes and buying behaviour of customers. The marketer can collect the required information relating to these tools with the help of marketing research.

7. Types of Market Research:

1. Audience Research:

Research on who is listening, watching, and reading is important to marketers of television and radio programs and print publications—as well as to advertisers who wish to reach a certain target audience with their message.

Television and radio ratings demonstrate the popularity of shows and determine how much stations can charge for advertising spots during broadcasts. Publication subscription lists, which are audited by tabulating companies to ensure their veracity, are important in determining the per page rate for advertising.

2. Product Research :

This looks at what products can be produced with available technology, and what new product innovations near-future technology can develop.

Product research includes simple, in-person research such as taste tests conducted in malls and in the aisles of grocery stores, as well as elaborate, long-term “beta testing” of high-tech products by selected, experienced users. The objective of product research can be simple; For example- a company may tweak the taste of an existing product, then measure consumers’ reactions to see if there is room in the market for a variation. It can also be more extensive, as when a company develops prototypes of proposed new products that may be intended for market introduction months down the road.

In product research, as in all market research, there is a danger to paying too much attention to the wrong things. For instance, the introduction of New Coke was based on the outcome of taste tests that showed the public wanted a sweeter product.

But later an angry public, outraged that Coca-Cola was planning to change the familiar formula, forced the company to ignore its taste tests and leave the original Coke on the market. The company had put too much stock in the results of the taste test studies, and had failed to factor in research that showed consumers were happy with the product as it was.

The purpose of this research is to find out all aspects of product which include:

i. Reviewing product line, product quality, product features, product design etc.

ii. Study on new uses of an existing product

iii. Testing of new products

iv. Study of related products

v. Study of packaging design

vi. Study of brand name/brand mark/its impact.

3. Brand Research :

Brands, the named products that advertising pushes and for which manufacturers can charge consumers the most money, are always being studied. Advertisers want to know if consumers have strong brand loyalty (“I’d never buy another brand, even if they gave me a coupon”); if the brand has any emotional appeal (“My dear mother used only that brand”); and what the consumer thinks could be improved about the brand (“If only it came in a refillable container”).

Brand research, too, has its perils. Campbell’s Soup once convened a focus group comprised of its best soup customers. One of the findings was that those customers saw no need for a low-salt alternative soup Campbell’s wanted to market.

Concerned that the general public seemed to want low-sodium products, Campbell’s retested groups other than their best customers. This research found a market interested in a low-sodium soup. The loyal Campbell’s customers loved the saltier product, while a larger group of potential customers preferred the low-salt alternative.

4. Psychological Research :

Perhaps the most controversial type of market research is psychological research. This type of research tries to determine why people buy certain products based on a profile of the way the consumers live their lives. One company has divided all Americans into more than 60 psychological profiles.

This company contends the lifestyles these people have established, based upon their past buying habits and their cultural upbringing, influences their buying decisions so strongly that individual differences can sometimes be negated.

Psychological research is controversial because it measures attitudes about buying rather than the buying itself. Critics point to conflicting information uncovered through other market research studies.

In one series of research projects, researchers asked people what they were planning to buy before they entered a store. After the people surveyed left the store, the same researcher examined what was actually in their shopping carts. Only 30 percent of the people bought what they had said they planned to buy just a half hour earlier.

Insurance market research of reviewing an agent’s sales trends, and individual sales analysis of performance is a remarkable time and data evaluation to accomplish. Only an insurance list compiler with prior marketing and sales management can perform this market research. The resulting correct list of brokers is gold to an insurance marketing sales company.

5. Scanner Research :

In contrast, there is no fooling the checkout scanner at the supermarket or the department store: it records what was actually purchased. This is valuable information an advertiser can use to help plan an ongoing marketing strategy.

Scanner technology has changed the way advertisers track the sale of consumer products. Before scanners, advertisers received sales information only when retailers reordered stock, generally every two weeks.

This meant that the advertisers had no way to quickly measure the effect of national advertising, in-store sales promotions, or the couponing of similar products by their competitors. Now, computer technology can send scanner information to advertisers within days or even hours.

Data Sources :

The researcher can gather secondary data, primary data, or both. Secondary data are data that were collected for another purpose and already exist somewhere. Primary data are data gathered for a specific purpose or for a specific research project.

Researchers usually start their investigation by examining secondary data to see whether their problem can be partly or wholly solved without collecting costly primary data. Secondary data provide a starting point for research and offer the advantages of low cost and ready availability.

The Internet, or more particularly, the World Wide Web, is now the greatest repository of information the world has seen. In an incredibly short span of time, the Web has become a key tool for sales and marketing professionals to access competitive information or conduct demographic, industry, or customer research.

When the needed data do not exist or are dated, inaccurate, incomplete, or unreliable, the researcher will have to collect primary data. Most marketing research projects involve some primary data collection.

The normal procedure is to interview some people individually or in groups to get a sense of how people feel about the topic in question and then develop a formal instrument, debug it, and carry it into the field.

When stored and used properly, the data collected in the field can form the back bone of later marketing campaigns. Direct marketers such as record clubs, credit-card companies, and catalog houses have long understood the power of database marketing.

A customer or prospect database is an organized collection of comprehensive data about individual customers, prospects, or suspects that is current, accessible, and actionable for marketing purposes such as lead generation, lead qualification, sale of a product or service, or maintenance of customer relationships.

Some techniques that are becoming increasingly popular are data warehousing and data mining – but they are not without risks.

Approaches :

Primary data can be collected in five ways: observation, focus groups, surveys, behavioural data, and experiments.

i. Observational Research:

Fresh data can be gathered by observing the relevant actors settings. The American Airlines researchers might meander around airports, airline offices and travel agencies to hear how travelers talk about the different carriers.

The researchers can fly on American and competitors planes to observe the quality of in-flight service. This exploratory research might yield some useful hypothesis about how travelers choose air carriers.

ii. Focus Research:

A focus group is a gathering of six to ten people who are invited to spend a few hours with a skilled moderator to discuss a product, service, organization, or other marketing entity.

The moderator needs to be objective, knowledgeable on the issue, and skilled in group dynamics. Participants are normally paid a small sum for attending. The meeting is typically held in pleasant surroundings and refreshments are served.

In the American Airlines research, the moderator might start with a broad question, such as “How do you feel about air travel?” Questions then move to how people regard the different airlines, different services, and in-flight telephone service.

The moderator encourages free and easy discussion, hoping that the group dynamics will reveal deep feelings and thoughts. At the same time, the moderator “focuses” the discussion”. The discussion recorded through note taking or on audiotape or videotape, is subsequently studied to understand consumer beliefs, attitudes and behaviour.

Focus Group research is a useful exploratory step. Consumer-goods companies have been using focus groups for many years, and an increasing number of newspapers, law firms, hospitals and public-service organization are discovering their value.

However, researchers must a avoid generalization the reported feelings of the focus- group participants to the whole market, because the sample size is too small and the sample is not drawn randomly.

With the development of the World Wide Web. Many companies are not conducting on-line focus groups.

iii. Survey Research:

Surveys are best suited for descriptive research. Companies undertake surveys to learn about people’s knowledge, beliefs, preferences, and satisfaction, and to measure these magnitudes in the general population. American Airlines researches might want to survey how many people know American, have flown it, and would like telephone availability.

iv. Behavioural Data:

Customers leave traces of their purchasing behaviour in store scanning data, catalog purchase records and customer databases. Much can be learned analyzing this data. Customer’s actual purchase reflect revealed preferences and often are more reliable than statements they offer to market researchers.

People often report preferences for people popular brands and yet the data show that high-income people do not necessarily buy the more expensive brands, contrary to what they might state in interview; and many low-income people buy some expensive brands. Clearly American Airlines can learn many useful things about its passengers by analyzing ticket purchase records.

v. Experimental Research:

The most scientifically valid research is experimental research. The purpose of experimental research is to capture cause and effect relationships by eliminating competing explanations of the observed findings.

To the extent that the design ad execution of the experiment eliminate alternative hypotheses that might explain the results, the research and marketing managers can have confidence in the conclusions.

It calls for selecting matched groups of subjects, subjecting them to different treatments, controlling extraneous variables, and checking whether observed response differences are statistically significant. To the extent that extraneous factors are eliminated or controlled, the observed effects can be related to the variations in the treatments.

American Airlines might introduce in-flight phone service on one of its regular flights from New York to Los Angeles at a price of $25 a phone call. On the same flight the following day, it announces the availability of this service at $15 a phone call.

If the plane carried the same number and type of passengers on each flight, and the day of the week made no difference, any significant difference in the number of calls made could be related to the price charged.

The experimental design could be elaborated further by trying other prices, replicating the same prices on a number of flights and including other air routes in the experiment.

6 . Database Research :

Virtually every type of consumer- credit card holders, smokers, drinkers, car buyers, video buyers- shows up on thousands of lists and databases that are regularly cross- referenced to mine nuggets of marketing research.

Database research is growing in popularity among marketers because the raw data has already been contributed by the purchaser. All the marketer has to do is develop a computer program to look for common buying patterns.

Database research can be thought of as the ultimate tool in market segmentation research. For example- from zip code lists, marketers may determine where the wealthy people live in a city. That list can be merged with a list of licensed drivers.

The resulting list can be merged with another list of owners of cars of a certain make older than a certain year. The resulting list can be merged with another list of subscribers to car enthusiast magazines.

The final list will deliver a potential market for a new luxury car soon to be introduced and profiled in the car magazines. The people on the potential buyers’ list could then be mailed an invitation to come see the new car.

Database research also allows companies to build personal relationships with people who have proven from past purchases that they are potential customers. For example- a motorcycle manufacturer such as Harley Davidson may discover from database research that a family with a motorcycle has a teenage son.

That son is a potential new customer for everything from clothes to a new motorcycle of his own. Maintaining a personal relationship with customers also provides businesses with a basis for more detailed and economical market research than might be possible through random sampling.

Survey research a research method involving the use of questionnaires and/or statistical surveys to gather data about people and their thoughts and behaviours. This method was pioneered in the 1930s and 1940s by sociologist Paul Lazarsfeld.

The initial use of the method was to examine the effects of the radio on political opinion formation of the United States. One of its early successes was the development of the theory of two- step flow of communication. The method was foundational for the inception of the Quantitative research tradition in sociology.

7 . Post-Sales or Customer Satisfaction Research :

Most companies no longer believe that a sale ends their relationship with a customer. Nearly one-third of the research revenues generated by the leading American market research firms concern customer satisfaction.

Many companies now wait a few days or weeks, then contact customers with survey questionnaires or telephone calls. Companies want reassurance that the customer enjoyed the buying experience and that the product or service has met the buyer’s expectations.

The reason behind post-sales research is to ensure that current customers are happy, will consider themselves future customers, and will spread positive word-of-mouth messages about the product and company.

One study found that 70 percent of customers believed it was important for companies to stay in contact with them, but less than one- third of those same customers reported that they had heard from companies whose products they purchased.

Nearly 90 percent of those surveyed said they would be more likely to choose a company’s products if it stayed in touch with them and sought their satisfaction.

The aim of this research is to develop an understanding about present and potential consumers and the level of satisfaction expected and derived by them from company’s products.

The broad areas of consumer research are:

i. Study of consumer profile.

ii. Study of consumer brand preferences, tastes and reactions

iii. Study of consumer satisfaction/dissatisfaction, reasons, etc.

iv. Study of shifts in consumption patterns.

8 . Advertising Research :

Is a specialized form of marketing research conducted to improve the efficacy of advertising. Copy testing, also known as “pre-testing,” is a form of customized research that predicts in-market performance of an ad before it airs, by analyzing audience levels of attention, brand linkage, motivation, entertainment, and communication, as well as breaking down the ad’s flow of attention and flow of emotion. Pre-testing is also used on ads still in rough (ripomatic or animatic) form.

9 . Business to Business (B2B) Market Research :

Business to Business (B2B) research is inevitably more complicated than consumer research. The researchers need to know what type of multi-faceted approach will answer the objectives, since seldom is it possible to find the answers using just one method.

Finding the right respondents is crucial in B2B research since they are often busy, and may not want to participate. Encouraging them to “open up” is yet another skill required of the B2B researcher.

Last, but not least, most business research leads to strategic decisions and this means that the business researcher must have expertise in developing strategies that are strongly rooted in the research findings and acceptable to the client.

There are four key factors that make B2B market research special and different to consumer markets:

i. The decision making unit is far more complex in B2B markets than in consumer markets.

ii. B2B products and their applications are more complex than consumer products.

iii. B2B marketers address a much smaller number of customers who are very much larger in their consumption of products than is the case in consumer markets.

iv. Personal relationships are of critical importance in B2B markets.

10. Distribution Research :

The purpose of this research is to identify the appropriate distribution channels for intermediaries, storage, transport problems etc.

The broad areas include:

i. Measuring relative effectiveness of different types of distribution intermediaries

ii. Measuring dealer reaction to company and its products

iii. Measuring warehouse efficiency

iv. Distribution cost analysis

v. Determining optimum inventory levels

vi. Determining the location of distribution centers.

11. Pricing Research :

The purpose of this research is to find out the price expectations of consumers and their reactions to them.

i. Assessing the general pattern of pricing followed by the industry

ii. Measuring price elasticity of demand

iii. Evaluating the price strategy of the firm.

12. Advertising and Promotion Research :

The purpose of this research is to develop most appropriate advertisement and promotion schemes and evaluate their effectiveness.

i. Advertising copy research

ii. Media research

iii. Assessing the effectiveness of advertising

iv. Assessing the efficacy of sales promotional measures.

13. Sales Research :

i. Testing new sales techniques

ii. Analyzing of salesmen’s training

iii. Measuring salesman’s effectiveness

iv. Study of sales compensation

v. Analyzing methods of setting sales quota and sales territories.

14. Research on Competition:

The purpose of this research is to find out the intensity and effect of competition to the firm.

i. Study on competitive structure of the industry and individual competitors.

ii. Study of competitors marketing strategies.

The scope of marketing research describes above is only indicative and not exhaustive. Further, the above research areas are not watertight compartments. They are closely interrelated. The actual scope depends on the needs of a company and the marketing situations.

8. Marketing Research Process:

Marketing research helps in arriving at the decision or solutions for various marketing problems.

The research process involves different stages which are:

1. Problem Formulation:

Formulation of the problem is the first step in the marketing research process. Unless and until the problem is well defined, there is no use of the research work. Well defined and formulated problems can be solved very easily and appropriately. The problem should be defined neither too broadly nor too narrowly. Problems may be of different type i.e. operating (recurring) problem or non-operating (non­recurring) problem.

Recurring problems includes problems relating to sales expenses, sales forecasting, sales volume, product quality, product line, price policy etc. Non-recurring or non-operating problems relate to problems such as change in consumption pattern, price changes, product innovation, changes in competitive forces etc.

2. Research Design:

A research design is the framework or blue print for conducting the market research project. Once the specific research objective has been defined, it is essential to arrive at the correct hypothesis, data collection method, sampling plan and research design instrument.

Formulating a research design involves following steps:

i. Define the information which is required.

ii. Analysis of the secondary data.

iii. Qualitative research.

iv. Method of collecting data.

v. Measurement and scaling procedure.

vi. Questionnaire design.

vii. Sampling process and sample size.

viii. Plan of data analysis.

3. Data Collection:

Data can be collected from both primary and secondary sources. Primary data is the data which is collected for the first time with research purpose in mind. It is the first hand information. Secondary data is the data already collected by some other person for some other research problem. Primary data can be collected through different method – observation method or communication method. Interviews may be conducted either personal or through telephone or any other method to collect the required information.

4. Data Analysis:

Analysis of the raw data is very essential to arrive at the conclusion.

This analysis involves three phases, they are:

i. Classifying the data

ii. Data summarization

iii. Advanced data analysis tools and techniques to highlight inter­relationship and quantitative significance.

i. Classifying the Data:

Classification of data includes editing, coding, transcription and verification of data. The most commonly used techniques here are quantitative, qualitative, geographical and chronological.

Quantitative classification are for quantitative data like number of units, number of respondents. Qualitative classification is for qualitative data like occupation, types of family etc. Geographical classification is the one where geographical location is used to classify the data. Chronological classification is on the basis of the time period when event took place.

ii. Data Summarization:

For summarization of data various techniques are there like mean, median, mode, range, variance, standard deviation, mean deviation.

iii. Advanced Data Analysis Tools and Techniques:

This includes advanced method for analysing the data like factor analysis, discriminate analysis, correlation, regression, multiple regression.

5. Report Presentation and Recommendations:

A normal report includes the following:

(1) Title of the report

(2) Summary of conclusion

(3) Sample and characteristics

(4) Findings and observations

(5) Questionnaire

(6) Appendices

(7) Recommendation made may be accepted or rejected.

9. Main Areas of Marketing Research:

The main areas of marketing research can be summarized as given below:

1. Research in Product Planning and Development.

2. Market Research to get information on-

(a) Market segmentations

(b) Market demand

(c) Market competition

(d) Market share.

3. Consumer Research on:

(a) Consumer needs, wants and preferences

(b) Buying motives and buying behaviour

(c) Change in demand

(d) Customer response to sales promotion and advertising

(e) Linking need and brand name.

4. Pricing Research – Policies Regarding:

(b) Discounts

(c) Allowances.

5. Research in Brand and Package Design – Brand image surveys.

6. Research in channel choice.

7. Research in physical distribution and distribution cost-transport stages and insurance.

8. Planning and evaluation of various promotion devices.

9. Planning and evaluation of advertising-copy and media research.

10 . Sales Analysis and Research sales forecast, sales quotas and sales territories.

11. Policy Research – Planning and Evaluation of:

(a) Sales policy;

(b) Advertising policy;

(c) Sales promotional policy;

(d) Inventory policy;

(e) Distribution policy;

(f) Credit policy;

(g) Sales force policy; and

(h) After sales, service policy etc.

12. Dealer’s Research to gather information on the wants, attitudes and preferences of dealers.

In U.S.A., Marketing research departments have been steadily expanding their activities and techniques. The following list gives out the various types of marketing research undertaken by firms in U.S.A., as quoted in Philip Kotler’s book on “Marketing Management”.

10. Marketing Research Activities:

1. Advertising Research:

(a) Motivation research;

(b) Copy research;

(c) Media research; and

(d) Studies on Advertising effectiveness.

2. Business Economic and Corporate Research:

(a) Short-range forecasting (up to one year);

(b) Long-range forecasting (over one year);

(c) Studies of business trends;

(d) Pricing studies;

(e) Plant and warehouse location studies;

(f) Product mix studies;

(g) Acquisition studies;

(h) Export and international studies; and

(i) Internal company employees studies.

3. Corporate Responsibility Research:

(a) Consumers “right to know” studies;

(b) Ecological impact studies;

(c) Studies on legal constraints on advertising and promotion; and

(d) Social values and policies studies.

4. Product Research:

(a) New product acceptance and potential;

(b) Competitive product studies;

(c) Testing of existing products; and

(d) Packaging research-design or physical characteristics.

5. Sales and Market Research:

(a) Measurement of market potentials;

(b) Market-share analysis;

(c) Determination of market characteristics;

(d) Sales analysis;

(e) Establishment of sales quotas, territories;

(f) Distribution channel studies;

(g) Test markets, store audits;

(h) Consumer-Panel operations;

(i) Sales compensation studies; and

(j) Promotional studies of premiums, coupons sampling etc.

Some of the Special Problems Faced by Corporate Organisations in India:

As long as marketers in India did not face much difficulty in selling their products (services) they did not find much value in marketing research. Formal use of marketing research in the India Corporate sector began sometime in mid-1970’s.

In recent times there is further momentum in the practice as the business environment in the country is now characterized by many diversities like:

i. High degree of competition – The memories of long waiting time to get delivery of a product, limited choice and sometimes shabby products and unusually high prices have dimmed a great deal. The heat of competition is not restricted to the upper echelons of urban markets. Even the rural markets have begun to benefit from the impact of these changes.

ii. Large number of consumers with wide variations of requirements, tastes and preferences for different products and services.

iii. Change in the socio-economic conditions of the market. Specially the consumer goods manufactures today encounter a sizeable middle income population, and moreover, rise in the number of working women and educational level have significantly affected consumer behaviour.

iv. Growth in the communication facilities has led to greater awareness and more choice option to advertise through.

v. Consumers, by and large, are found to have more discretionary income. But they have at the same time much concern about their value for money.

vi. Since 1985 liberal licensing and import policy of the Indian Government has brought about many changes in the corporate environment. Changes have taken place both, in the scale and in the nature of problems which the management must tackle.

Recent development in the Indian market bear a similarity to traditional free market, where primary determinant of success is keeping the customers happy. Managing product (service) in tune with such market forces assumes a critical role.

Historically, in the shortage prone economy, marketing was found to be a luxury that did not seem relevant to the needs of the Indian consumer. This view is now rapidly changing.

Expenditure on unsuccessful product launches, wrong product positioning, improper distribution system etc., can whittle away the vitals of an organization in the absence of a sound, professional marketing management and high quality marketing research.

Thus corporate world in India has now realized the utility of data based marketing decision making rather than only intuition and hunch. So to derive an edge over the competition in today’s dynamic business environment, any marketer finds it essential to evolve marketing programmes based on proper marketing research.

11. Suppliers of Marketing Research :

A company can obtain marketing research in a number of ways.

Most large companies:

i. Procter & Gamble P & G assigns marketing researchers to each product operating division to conduct research for existing brands. There are two separate in-house research groups, one in charge of overall company advertising research and other in charge of marketing testing.

Each group’s staff consists of marketing research managers, supporting specialists (survey designers, statisticians, behavioral scientists) and in-house field representatives to conduct and supervise interviewing. Each year, Proctor & Gamble calls or visits over 1 million people in connection with about 1,000 research projects.

ii. Hewlett-Packard at HP, marketing research is handled by the Market Research and Information Center (MRIC), located at HP headquarters. The MRIC is a shared resource for all HP divisions worldwide and is divided into three groups.

The market Information Center provides background information on industries, markets and competitors using syndicated and other information services. Decision support teams provide research consulting services. Regional satellites in specific locales worldwide support regional HP initiatives.

Small companies can hire the services of a marketing research firm or conduct research in creative and affordable ways, such as:

i. Engaging Students or Professors to Design and Carry Out Projects:

One Boston University MBA project helped American Express develop a successful advertising campaign geared toward young professionals.

ii. Using the Internet:

A company can collect considerable information at very little cost by examining competitors’ Web sites, monitoring chat rooms, and accessing published data.

iii. Checking Out Rivals:

Many small companies routinely visit their competitors. Tom Coolhill, a chef who owns Atlanta restaurants, gives managers a food allowance to dine out and bring back ideas. Atlanta jeweler Frank Maier Jr. Who often visits out-of-town rivals, spotted and copied a dramatic way of lighting displays.

iv. Syndicated-Service Firms:

These firms gather consumer and trade information, which they sell for a fee. Examples- Nielsen Media Research, SAMI/ Burke.

v. Custom Marketing Research Firms:

These firms are hired to carry out specific projects. They design the study and report the findings.

vi. Specialty-Time Marketing Research Firms:

These firms provide specialized research services. The best example is the field-service firm, which sells field interviewing services to other firms.

12. Marketing Research Instruments :

Marketing researchers have a choice of two main research instruments in collecting primary data- questionnaires and mechanical devices.

1. Questionnaires:

A questionnaire consists of asset of questions presented to respondents for their answers. Because of its flexibility, the questionnaire is by far the most common instrument used to collect primary data. Questionnaires need to be carefully developed, tested and debugged before they are administrated on a large scale.

In preparing a questionnaire, the professional marketing researcher carefully chooses the questions and their form, wording, and sequence. The form of the question asked can influence the response.

Marketing researchers distinguish between closed-end and open-end questions. Closed-end questions specify all the possible answers. Open-end questions allow respondents to answer in their own words. Closed-end questions provide answers that are easier to interpret and tabulate.

Open-end questions often reveal more because they do not constrain respondents answers Open-end questions are especially useful in exploratory research, where the researcher is looking for insight into how people think rather than in measuring how many people think a certain way

Finally the questionnaire designer should exercise care in the wording and sequencing of questions. The questionnaire should use simple, direct, unbiased wording and should be pretested with a sample of respondents before it is used.

The lead question should attempt to create interest. Difficult or personal questions should be asked toward the end so that respondents do not become defensive early. Finally, the questions should flow in a logical order.

2. Mechanical Instruments:

Mechanical devices are occasionally used in marketing research. Galvanometers measure the interest or emotions aroused by exposure to a specific ad or picture.

The tachistoscope flashes an ad to a subject with an exposure interval that may range from less than one hundredth of a second to several seconds. After each exposure, the respondents eye movements to see whether their eyes land first, how long they linger on a given item, and so on. A sudiometer is attached to television sets in participating homes to record when the set is on and to which channel it is tuned.

3 . Sampling Plan :

After deciding on the research approach and instruments the marketing researcher must design a sampling plan.

This plan calls for these decisions:

I. Sampling Unit:

Unit who is to be surveyed? The marketing researcher must define the target population that will be sampled. In the American Airlines survey, should the sampling unit be business travelers, vacation travelers, or both? Should travelers under age 21 be interviewed? Should both husbands and wives be interviewed?

Once the sampling unit is determined, a sampling frame must be developed so that everyone in the target population has an equal or known chance of being sampled.

II. Sample Size:

How many people should surveyed? Large samples give more reliable results than small samples. However it is not necessary to sample the entire target population or even a substantial portion to achieve reliable results. Samples of less than 1 percent of a population can often provide good reliability, given a credible sampling procedure.

III. Sampling Procedure:

How should the respondents be chosen? To obtain a representative sample, a probability sample of the population should be drawn. Probability sampling allows the calculation of confidence limits for sampling error. Thus one could conclude after the sample id taken that “the interval 5 to 7 trips per year has 95 chances in 100 of containing the true number of trips taken annually by air trailers in the South west”.

The types of probability sampling are described. When the cost of time involved in probability sampling is too high. Marketing researchers will take non-probability samples. Some marketing researchers feel that non-probability samples are very useful in many circumstances, even though they do not allow sampling error to be measured.

4 . Contact Methods :

Once the sampling plan has been determined, the marketing researcher must decide how the subject should be contacted- mail, telephone, personal, or on-line interviews.

The mail questionnaire is the best way to reach people who would not give personal interviews or whose responses might be biased or distorted by the interviewers. Mail questionnaires require simple and clearly worded questions.

Unfortunately the response rate is usually low or slow. Telephone interviewing is the best method for gathering information quickly, the interviewer is also able to clarify questions if respondents do not understand them.

The response rate is typically higher than in the case of mailed questionnaires. The main drawback is that the interviews have to be short and not too personal. Telephone interviewing is getting more difficult because of answering machines and people becoming suspicious of telemarketing.

5 . Personal Interviewing :

It is the most versatile method. The interviewer can ask more questions and record additional observations about the respondent, such as dress and body language. Personal interviewing is the most expensive method and requires more administrative planning and supervision than the other three.

It is also subject to interviewer bias or distortion. Personal interviewing takes two forms. In arranged interviews, respondents are contacted for an appointment. Often a small payment or views, respondents are contacted for an appointment. Often a small payment or incentive is offered.

Intercept interviews involves stopping people at a shopping mall or busy street corner and requesting an interview. Intercept interviews have the drawback of being non-probability samples, and the interviews must not require too much time.

There is increased use of online interviewing. A company must not require too much time.

There is increased use of on-line interviewing. A company can include a questionnaire at its web page and offer an incentive to answer the questions.

13. Organising Marketing Research Function :

Several options are open to company for organizing its marketing research activity. For example- in some companies like Hindustan Lever, ITC there is a separate marketing research department who undertakes research on its own.

Alternatively, there are many organization who assign the responsibility of conducting marketing research to an outside specialist, individual, or an organization. Medium and small sized companies usually prefer second option, whereas the large firms set up a marketing research department consisting of full specialists.

Also many a time, companies in India subscribe to a syndicate research work, done by some marketing research on consultancy firm. The latter arrangement would involve paying some subscription fee for obtaining the findings of some research studies at a regular interval.

Such services are particularly available in the spheres or readership survey, the movement of consumer or pharmaceutical goods through retail outlet, TV viewing etc. As syndicated research services are normally designed to meet the requirements of many companies, they do not provide any tailor made information. Its major advantage lies in cost effectiveness.

Marketing Manager and Researcher Interaction :

In India, research based decision making has just made a beginning. There are still a lot of gaps in understanding between the two sets of people involved in these activities. It should be reiterated that marketing research is an aid to decision making, not a substitute for it. Unfortunately, sometimes marketing managers view marketing research reports as the final answer to their problems.

Marketing managers usually complain that:

1. Research is not problem oriented, it provides a number of facts, but not actionable results.

2. Researchers are too pre-occupied with techniques and they are often reluctant to get involved in solving the management’s problems.

3. Research is not executed with the proper sense of urgency. It is sometimes vague, and of questionable validity.

4. Researchers are generally poor communicators. They do not talk the language of the management. They lack the sense of accountability.

Likewise, researchers have complaints about marketing managers that:

1. Marketing managers do not include research in the overall problem or total decision context. They tend to ask for only specific information about partial issues.

2. Marketing managers pay lip service to research and do not really appreciate its value/problems.

3. Marketing managers do not allow adequate time and budget for research. They tend to draw conclusion based on early or incomplete results. Good research requires sufficient lead time for thorough reporting documentation.

4. Marketing managers rely more on intuition and judgment rather than on formal research. Research is used to confirm or excuse past actions or as a fire fighting device, not as an aid in decision making.

The key factor underlying the mutual distrust between marketing managers and researchers, seems to be the understanding of the mutual role and responsibility of both parties.

To be effective, researchers must understand the decision contexts and views of the marketing managers, likewise marketing managers must recognise that decisions should be evolved in the light of their own experience, and knowledge and other factors that are not explicitly considered in the research project.

Thus, it is most essential that both marketing managers and researchers must be equally involved and interact with each other as much as possible.

14. Classification of Marketing Research Tasks (Problems) Based on the Subject of Research:

Research on Product:

i. Reviewing product line, product quality, product features, product design and rationalisation of product lines.

ii. Study on the actual uses of a given product.

iii. Study on new uses of an existing product.

iv. Testing of new products.

v. Study of the competitive position of a product/brand.

vi. Study on related products and the nature of the relationship.

vii. Study of packaging/packing design, packing material, package size, etc.

viii. Study on servicing requirements.

Marketing Research in Small Businesses and Non-Profit Organizations :

Marketing research does not only occur in huge corporations with many employees and a large budget. Marketing information can be derived by observing the environment of their location and the competitions location. Small scale surveys and focus groups are low cost ways to gather information from potential and existing customers.

Most secondary data (statistics, demographics, etc.) is available to the public in libraries or on the internet and can be easily accessed by a small business owner.

Below some steps that could do by SME (Small Medium Enterprise) to analyze the market:

1. Provide secondary and or primary data (if necessary);

2. Analyze Macro and Micro Economic data (e.g., Supply and Demand, GDP, Price change, Economic growth, Sales by sector/industries, interest rate, number of investment/ divestment, I/O, CPI, Social analysis, etc.);

3. Implement the marketing mix concept, which is consist of: Place, Price, Product, Promotion, People, Process, Physical Evidence and also Political and social situation to analyze global market situation;

4. Analyze market trends, growth, market size, market share, market competition (e.g., SWOT analysis, B/C Analysis, channel mapping identities of key channels, drivers of customers loyalty and satisfaction, brand perception, satisfaction levels, current competitor-channel relationship analysis, etc.)

5. Determine market segment, market target, market forecast and market position;

6. Formulating market strategy and also investigating the possibility of partnership/ collaboration (e.g., Profiling and SWOT analysis of potential partners, evaluating business partnership);

7. Combine those analysis with the SME’s business plan/ business model analysis, e.g., Business description, Business process, Business strategy, Revenue model, Business expansion, Return of Investment, Financial analysis, Company History, Financial assumption, Cost/Benefit Analysis, Projected Profit and Loss, Cash-flow, Balance sheet and business Ratio, etc.

Note as important:

Overall analysis is should be based on 6W+1H (What, When, Where, Which, Who, Why and How) questions.

Based on Observations:

1. Ethnographic Studies:

By nature qualitative, the researcher observes social phenomena in their natural setting observations can occur cross-sectionally (observations made at one time) or longitudinally (observations occur over several time-periods) – examples include product-use analysis and computer cookie traces.

2. Experimental Techniques:

By nature quantitative, the researcher creates a quasi- artificial environment to try to control spurious factors, then manipulates at least one of the variables – examples include purchase laboratories and test markets.

Marketing research involves conducting research to support marketing activities, and the statistical interpretation of data into information. This information is then used by managers to plan marketing activities, gauge the nature of a firm’s marketing environment and attain information from suppliers.

Marketing researchers use statistical methods such as quantitative research, qualitative research, hypothesis tests, Chi-squared tests, linear regression, correlations, frequency distributions, poisson distributions, binomial distributions, etc. to interpret their findings and convert data into information.

The marketing research process spans a number of stages including the definition of a problem, development of a research plan, collecting and interpretation of data and disseminating information formally in form of a report. The task of marketing research is to provide management with relevant, accurate, reliable, valid, and current information.

A distinction should be made between marketing research and market research. Market research pertains to research in a given market. As an example, a firm may conduct research in a target market, after selecting a suitable market segment. In contrast, marketing research relates to all research conducted within marketing. Thus, market research is a subset of marketing research.

Research on Competition :

ii. Study of competitor’s products, prices, promotion programmes, channel policies and sales methods.

Marketing research serves two main functions viz. – (i) it provides information for decisions making and (ii) it develops new knowledge. It is concerned with all those factors which have a direct bearing upon the marketing of products.

It focuses on the study of:

(a) Market characteristics;

(b) Measurement of market potentials;

(c) Market share analysis;

(e) Competitive-product studies;

(f) New-product acceptance;

(g) Short-range forecasting;

(h) Low-range forecasting; and

(i) Business trends.

Marketing research is aimed in offering sound alternative solution to all marketing problems relating, to exchange of goods. In fact, marketing research is the beginning of marketing management.

But the term ‘marketing research’ is always used as a synonym to marketing research. In fact, market research is only one branch of the marketing research. Market research is primarily concerned with the investigation, analysis and measurement of market demand.

Market research answers the following question- “Who, what, where, when, why and how of actual and potential buyers?” But marketing research has wider meaning and scope.

15. Benefits of Marketing Research :

It is apparent that the scope of marketing research activity is very wide. It covers almost all aspects of marketing. The major contribution of marketing research is that it augments the effectiveness of marketing decisions.

Marketing research uncovers facts from both outside and within the company relevant to marketing decisions and provides a sustainable and logical base for making decisions.

The specific contributions of marketing research to the effectiveness of the marketing programme of a firm are as follows:

1. With the guidance of research, products should be better suited to the demand and priced reasonably.

2. Specific markets having the greatest sales potentialities could be identified.

3. Research can help to identify the best sales appeal of the products, the best way of reaching the potential buyers and the most suitable timing promotion etc.

4. Research can also help minimize marketing costs by making marketing efforts more efficient and effective.

5. Research can also help find out the effectiveness of sales force management such as right selection procedure, effective training programmes, scientific compensation schemes and effectives control mechanisms.

The contribution of marketing research are considerable. It facilitates both the decision-making and the operational tasks of marketing management effective and efficient and thereby contributes to consumer’s satisfaction and organization’s efficiency.

16. Limitations of Marketing Research :

Despite the proven value of MR, it must be borne in mind that it cannot provide a complete answer to any marketing problem. MR consists of systematic collection of data for predicting the future. It is a tool which helps the marketing executive in avoiding guess work, but they cannot predict with certainty.

Moreover to yield satisfactory results following shortcomings should be recognised and accepted:

1. MR projects may require a considerable time lag between their inception, completion and implementation. Collection of data, their checking, presentation, formulation of policy and execution involves considerable time. In that interval period customer’s tastes and preferences are subject to frequent change. Marketing is a very dynamic affair so its problems must be treated with quick solutions. Otherwise, if MR involves time delays then suggested solutions by MR may be irrelevant to the changed conditions. So it is essential that MR projects should be completed in time and executed promptly in terms of time element.

2. Some MRs deal with a wide variety of condition which are highly dynamic and since it involves numerous variables, it is extremely difficult to assemble accurate data or to interpret them with absolute exactness. The findings of MR has no universal acceptance. In fact the subject of study for marketing researcher is consumer behaviour, so MR cannot be accepted as exact science.

Study of human behaviour precludes absolute mathematical accuracy. Due to errors in sampling procedure, field study, analysis etc., MR cannot always be accurate and purely authentic. It cannot measure as chemical experiments. MR is far from perfect.

3. MR does not solve any problem. It is simply a tool in hands of management for efficient decision making. It provides necessary inputs such as data, and vital information which may be helpful for intelligent decision. MR may point out several possible solutions for any problem, but it can never be used by management as a substitute for good decisions.

Decision making is ultimately done by marketing executive, using his mind with the support of MR findings. Research is only a vital ‘arm’ in the hands of management. It can only suggest various alternatives and appropriate solutions.

4. One serious point has been raised by Stanton. According to him possibly the fundamental reason for the modest status of MR has been the failure of researchers to communicate adequately with management. Admittedly, there are poor researchers and poor research.

Moreover, sometimes the mentality of the quick acting, programmatic, decision making executive may be at odds with the conditions, complex hedging all bets mentality of a marketing researcher. However researchers, like manufacturers, are often product oriented when they should be market oriented.

They concentrate on research methods and techniques rather than on showing management how these methods can aid in making better marketing decisions. Executives are willing to invest heavily in technical research because they are convinced there is a payoff in this activity.

5. It is difficult to appraise the actual rupee value of MR results. In most instances it is impossible to translate the rupee value received from MR. Many business houses hesitate to make expenditure, when the results are so intangible. The management does not meet MR as a continuous process. It is treated as a medicine of some diseases.

Management realises the need of MR when it has a marketing problem. So management must put attention on current flow of information through Mr. Newman observed, “Reflecting Executives” lack of understanding of research and its potential contribution to decision making is the fact that research departments have tended to be technical job shops to which operating people could bring results if they chose to do so.

The weakness of this system is that it depends on the initiative of executives who are unfamiliar with research and who typically are unable to identify their problems well enough to ask for the help they need. Thus MR cannot be effective unless it is viewed as a continuous process and not as a onetime activity.

6. Another constraint that is lack of trained, well equipped and well directed research personnel who may improve the quality and utility of MR. The successful performance of MR requires that it must be carried out by qualified individuals. Many research projects have pre-occupied techniques which fail to grasp the complete picture. Many research project are carried out by operating executives. These men frequently have little time to devote in MR.

7. MR may be too expansive in some cases. MR is treated as luxury to small units. Its expense can be afford only by large business organisations. In seller’s market the manage­ment has apathetic approach towards MR. However with the growth of buyers’ market and increasing competition the value of MR are being increasing competition the value of MR are being increasingly recognised by marketing management.

Marketing research is an integral part of scientific marketing management, but the marketing research findings can only provide indications and not conclusions to any problem. These research projects are based on certain assumptions, so findings are made with reference to a certain marketing environment and the validity of MR is affected to that extent.

17. Ethical Issues in Marketing Research :

Ethics in Latin language is called Ethicus and in Greek it is called Ethicos. The word has origin from the Greek Ethos meaning character or manners. Another term that is considered synonym of ethics is morality. However, they are different. The word morality means behaviour and therefore Ethico-moral actions pertains to actions initiated by the character and expressed through behaviours.

Ethics focuses on Standards, rules and codes of conduct that govern the behaviour of individuals or groups. It is the science of morals, which is concerned with human character and conduct. It also refers to the code of conduct that guides an individual while dealing with a situation.

The way marketing research is conducted and the reasons for conducting research could raise many ethical issues.

Data collection could become an invasion of privacy. People are observed using hidden cameras, purchase behaviour studied using scanner data and credit card use data, and Internet activity is tracked using ‘cookies’. There is always strong temptation for some managers to misuse access to private information. Similarly, customer databases provide lots of personal information about customers. This information will be very valuable to other businesses and could be sold for a profit.

Collection of information could be annoying and inconvenient for the respondents. Often, interviews, both personal and over telephone, become intrusive.

Occasionally, researchers use deception to collect data. Acting as a potential customer falsely, some persons collect data from businesses. Other researchers pretend to be shoppers and ask fellow shoppers their opinions of products or brands.

False Representation:

Practices called “sugging”, i.e., selling under the guise of research and “frugging”, i.e., fund-raising under the guise of research are very common, which tarnish the image of legitimate researchers.

We can look at ethical issues in marketing research from the point of view of- (a) Respondents (b) Clients, and (c) Researchers.

(1) Ethics in the Treatment of Respondents:

Respondents include individuals, organizations or group of persons whom the agency approaches to collect information for research studies. The respondents should have the right to privacy, i.e., no telephone calls, e-mail or personal visit without the consent of the respondent. The consumer has a right to choose. That is whether he wants to participate or not in the studies.

The consumer has to be protected against physical and psychological harm. He may be uncomfortable to answer questions regarding income, health, business, relationship with members of the family, etc. The consumer has the right to be informed, i.e., the consumers must be informed regarding the objective of the research and the benefits if any to the consumers arising out the research findings.

(2) Ethics in the Treatment of Clients:

Client refers to any individual organization, private or public institution or department of such organization which has agreed to subscribe to a marketing research project.

The obligations of researchers are:

(a) The method of research and the results should be accurately presented in the report.

(b) The information obtained must be held in confidence and should not be shared with other clients and competitors.

(c) The researcher should not undertake unethical research.

(d) The limitations of the study should be informed to the client.

(e) Should not collect data in a biased manner to support the client’s views.

(f) The researcher is obliged to inform the client the unbiased results of the research irrespective of whether it is liked by the management or not.

(3) Ethics in the Treatment of Researchers:

Researchers include any individual, organization, private or public institution that is acting as consultant on marketing research project.

The obligations of clients towards researchers are:

(a) If the research project requires some information on company sales, profitability, etc., the client has to be provide same to the researchers. Otherwise the report will not be complete.

(b) After finalizing the terms and conditions for undertaking the project, the company should not ask for additional information at original project cost. The client has to pay for collecting extra information over and above the original proposal.

(c) If the firm has already decided to assign the project to a particular researcher, it should not invite proposals from other parties also. It goes against the interest of competing researchers.

(d) After finalizing a large project, the firm should not change the scope of the project to reduce the cost.

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This chapter raises several applied perspectives on marketing research methods that need to be used in marketing research to support development of competitive strategies. The scope of marketing research, process of conducting marketing research, methodologies and research models, diverse research areas, and technology and market drivers for exploring future research have been addressed in this chapter. The principal objective of the chapter is to impart knowledge on skills on marketing research for managers to use it as a tool to support development of marketing strategies.

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Marketing Research: Meaning, Definitions, Components, Scope, Features, Importance, Advantages, Limitations

• Post author: Anuj Kumar
• Post published: 23 August 2022
• Post category: Marketing Management
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Table of Contents

• 1 What is Marketing Research?
• 2 Definition of Marketing Research
• 3.1 Market Research
• 3.2 Product Research
• 3.3 Advertising Research
• 3.4 Motivation Research
• 3.5 Sales Research
• 4.1 Syndicate Service
• 4.2 Marketing Information System (MKIS)
• 4.3 Decision Support System
• 4.4 Market Research Projects
• 5.1 Systematic and Continuous Process
• 5.2 Wide in Scope Application
• 5.3 Emphasizes Accurate Data Collection and Critical Analysis
• 5.4 Offers Benefits to Sponsoring Company and Consumer
• 5.5 Commercial Equivalent of Military Intelligence
• 5.6 Device for Managerial Decisions
• 5.7 Applied Type of Research
• 5.8 Reduces the Gap between the Producers and Consumer
• 5.9 Not an Accurate Science
• 5.10 Apply Different Methods
• 5.11 Dynamic Character
• 6.1 Planning and Execution of Marketing Plan
• 6.2 Quick and Correct Decision-Making
• 6.3 Effective Solutions to Marketing Problems
• 6.4 Huge Spending on MR
• 7.1 Indicates Current Market Trends
• 7.2 Pinpoints Deficiencies in Marketing Policies
• 7.3 Explains Customer Resistance
• 7.4 Suggests Sales Promotion Techniques
• 7.5 Guidance to Marketing Executives
• 7.6 Selection and Training of Sales Force
• 7.7 Facilitates Business Expansion
• 7.8 Facilitates Appraisal of Marketing Policies
• 7.9 Suggests Marketing Opportunities
• 7.10 Facilitates Inventory Study
• 7.11 Provides Marketing Information
• 7.12 Suggests Distribution Channels
• 7.13 Creates Progressive Outlook
• 7.14 Social Significance
• 8.1 Offers Suggestions and not Decisions
• 8.2 Fails to Predict Accurately
• 8.3 Cannot Study all Marketing Problems
• 8.4 Resistance to Research by Marketing Executives
• 8.5 Time-Consuming Activity
• 8.6 Costly/Expensive Activity
• 8.7 Dearth of Qualified Staff
• 8.8 Complexity of Subject
• 8.9 Uncertainty of Conclusions
• 8.10 Limitations of Data Used
• 8.11 Limited Practical Utility
• 8.12 Miscellaneous Limitations
• 9.1 What is the meaning of marketing research?
• 9.2 What is the definition of marketing research?
• 9.3 What are the components of marketing research?
• 9.4 What are the scopes of marketing research?
• 9.5 What are the features of marketing research?
• 9.6 What is the importance of marketing research?
• 9.7 What are the advantages of marketing research?
• 9.8 What are the limitations of marketing research?

What is Marketing Research?

Marketing research can be defined as the process of gathering recording and analyzing the data related to certain products and services . This need for market research is derived from the concept that only by understanding the needs and wants of the target audience and by effectively meeting them, you will be able to achieve the organizational goals and surpass the competition in the specific market.

The process of gathering, analyzing and interpreting information about a market and about the past, present, and potential customers for the product or service.

Market Research is any organized effort to gather information about target markets or customers. It is a very important component of business strategy. The term is commonly interchanged with marketing research , however, expert practitioners may wish to draw a distinction in that marketing research is concerned especially with marketing processes while market research is concerned specifically with markets.

Marketing research does not make decisions and it does not guarantee success”. Marketing managers may seek advice from marketing research specialists, and indeed it is important that research reports should specify alternative courses of action and the probability of success, where possible, of these alternatives.

However, it is the marketing manager who makes the final marketing decision and not the researcher. The second observation, that marketing research does not guarantee success, is simply a recognition of the environment within which marketing takes place.

Definition of Marketing Research

These are the following simple and understandable definitions of marketing research given by the authors:

Marketing research is a systematic objective and exhaustive search for and study of the facts relevant to any problem in the field of marketing. Marketing research is a part of the marketing information system and a key to the implementation of the marketing concept. It is usually designed to aid planning and often involves the evaluation of previous marketing efforts.

Components of Marketing Research

The objective of marketing research is to provide management with relevant, accurate, reliable, valid, and current information. The competitive marketing environment and the ever-increasing costs attributed to poor decision-making require that marketing research provide sound information.

Sound decisions are not based on gut feeling, intuition, or even pure judgment. The following are the major components of marketing research explained below:

Market Research

Product research, advertising research, motivation research, sales research.

Market research is any organized effort to gather information about markets or customers. It is a very important component of business strategy. The term is commonly interchanged with marketing research; however, expert practitioners may wish to draw a distinction, in that marketing research is concerned specifically with marketing processes, while market research is concerned specifically with markets.

Market Research is the key factor to getting an advantage over competitors. Market research provides important information to identify and analyze the market need, market size, and competition.

This looks at what products can be produced with available technology, and what new product innovations near-future technology can develop (see new product development ). Developing and designing great products are keys to success in business.

Anything less than an excellent product strategy can be destructive to a firm. Top companies focus on a few products and concentrate on maintaining a high level of quality for those products to maximize the potential for success.

Advertising research is a specialized type of marketing research conducted to improve the efficiency of advertising. According to MarketConscious.com, “It may focus on a specific ad or campaign or may be directed at a more general understanding of how advertising works or how consumers use the information in advertising. It can entail a variety of research approaches, including psychological, sociological, economic, and other perspectives.”

It is a specialized type of marketing research conducted to improve the efficacy of advertising. Copy testing, also known as “pre-testing,” is a form of customized research that predicts the in-market performance of an ad before it airs, by analyzing audience levels of attention, brand linkage, motivation, entertainment, and communication, as well as breaking down the ad’s flow of attention and flow of emotion. Pre-testing is also used on ads still in rough type.

The research is used to investigate the psychological reasons why individuals buy specific types of merchandise, or why they respond to specific advertising appeals, to determine the base of brand choices and product preferences. Motivation research is Qualitative research designed to probe the consumer’s subconscious and discover deeply rooted motives for purchasing a product.

Motives: Something that compels or drives a consumer to take a particular action. Motivation research is also used to investigate the psychological reasons why individuals buy specific types of merchandise, or why they respond to specific advertising appeals, to determine the base of brand choices and product preferences.

Sales research is geared toward discovering certain data which is required to make additional sales to a company’s existing customers. A Sales Research Specialist is someone who has the expertise to find, evaluate, analyze, organize and package suspect, prospect, and customer data into useful intelligence a sales force can act on immediately.

Sales research enables salespeople to do what they do best, which is selling, instead of spending their time trying to find who is looking to buy. The process of sales research can also have other benefits over and above generating sales such as reducing costs.

For example, the identification of contact name and address changes reduces a company’s sales and marketing communications costs by eliminating phone calls and mailings to contacts who are no longer employed or who have changed positions.

Scope of Marketing Research

Marketing Research includes all the activities that enable organizations to obtain market information. Market researcher needs to make a decision about their environment, marketing mix , and present or potential customer. Marketing research plays an important role in the planning, implementing, and evaluation of the marketing management process. The Marketing Manager makes use of four main sources of decision making .

Following is the scope of marketing research :

Syndicate Service

Marketing information system (mkis), decision support system, market research projects.

A marketing research firms produce and sell these scheduled reports. The report contains valuable information. E.g. Survey of Indian Industry, Chambers of Commerce and Industry.

This is an internal activity where standardized reports are generated on regular basis or it is generated on demand also. E.g. Sales Reports, inventory amounts, production schedules, and also purchased information. We can track the sales performance and the changing taste of consumers also through MKIS.

DSS is the interactive system in the company. It permits the decision maker to interact directly with data through a PC to answer specific questions. The difference between MKIS and DSS is that while the former only provides information on the basis of which decision is taken, the latter provides answers or decisions appropriate to a situation.

It is done to find out specific problems in the market. It is done by the employee of the company or outsourced to external agencies.

Features of Marketing Research

These are the main features of marketing research :

Systematic and Continuous Process

Wide in scope application, emphasizes accurate data collection and critical analysis, offers benefits to sponsoring company and consumer, commercial equivalent of military intelligence, device for managerial decisions, applied type of research, reduces the gap between the producers and consumer, not an accurate science, apply different methods, dynamic character.

Marketing research is a continuous process. One type of research is not adequate to resolve all marketing problems. Similarly, new research projects will have to be undertaken to solve new marketing problems and challenges.

A marketing company faces new marketing problems from time to time and for facing them marketing research activities need to be conducted on regular basis. A marketing company has to conduct marketing research regularly for its survival and growth in the present dynamic marketing environment.

Marketing research is wide in scope as it deals with all aspects of marketing of goods and services. Introduction of new products, identification of potential markets, selection of appropriate selling techniques, study of market competition, the introduction of suitable advertising strategy, and sales promotion measures are some areas covered by Marketing research.

In marketing research , required data should be collected objectively and accurately. The data collected must be reliable. It should be analyzed in a systematic manner. This will provide a comprehensive picture of the situation and possible solutions.

Marketing research is useful to the sponsoring company. It raises the turnover and profit of the company. It also raises the competitive capacity and creates goodwill in the market. It enables a company to introduce consumer-oriented marketing policies. The consumer also gets agreeable goods and more satisfaction due to marketing research activities.

Marketing research is a commercial intelligence activity. It is similar to military intelligence where a systematic study is made before taking any military action marketing research acts as the intelligence tool of marketing management.

Marketing research acts as a tool in the hands of management for identifying and analyzing marketing problems and finding out solutions to them. It is an aid to decision-making. It suggests possible solutions for the consideration and selection by managers. Marketing research is an aid to Judgement and never a substitute for it.

Marketing research is applied knowledge. It is also called ‘decisional’ research as it provides specific alternative solutions to deal with a specific marketing problem. It studies specific marketing problems and suggests alternative solutions and possible ones.

Marketing research is an essential supplement to modern competitive marketing. It is useful for understanding the needs and expectations of consumers. It reduces the gap between producers and consumers and adjusts the marketing activities to suit the needs of consumers.

Marketing research is both science and art. It collects information and studies marketing problems in a scientific manner. The information collected is also applied to real-life problems. However, marketing research is not an exact science.

It only suggests possible solutions and not the exact solution to the marketing manager for consideration and selection. At present, Marketing research is treated as a professional activity. We have professional research agencies dealing with the marketing problem of their clients on a commission basis.

Marketing research can be conducted by using different methods. Data can be collected through surveys or by other methods like observation methods or experimentation methods. Even computers and the internet are used for data collection. The researcher has to decide the method suitable for his research project .

Marketing research is dynamic in nature. Its scope is fast expanding along with the new developments in the field of marketing.

In addition, development in other subjects such as economics, statistics, computer science, sociology, psychology, cultural anthropology , and behavioral sciences also bring corresponding changes in the field of marketing research. This suggests that marketing research is a dynamic and progressive subject.

Importance of Marketing Research

Marketing research is fast growing in its importance due to increasing competition, fast-moving technological developments, and changing consumer needs, expectations and attitudes. The importance of marketing research is universally accepted. The status of marketing research in business management is identical to the position of the brain in the human body.

The following points suggest the importance of marketing research :

Planning and Execution of Marketing Plan

Quick and correct decision-making, effective solutions to marketing problems, huge spending on mr.

A business unit can plan and execute all activities right from manufacturing to marketing with reasonable accuracy and confidence due to the guidelines available through marketing research .

Marketing research facilitates quick and correct decision-making by marketing managers. It enables management to take quick and correct marketing decisions.

Marketing research provides effective solutions to marketing problems. Marketing research is the radiology and pathology of marketing operations of the business. It diagnoses the business ailments and suggests measures to remove them. Marketing researcher acts like business doctor and prescribes treatment for business elements.

Large companies spend crores (1 Crore = 10 million) of rupees on marketing research activities. New techniques and methods are used in the conduct of research activities in an accurate manner. This suggests the growing importance of marketing research.

Advantages of Marketing Research

These are the advantages of marketing research explained below:

Indicates Current Market Trends

Pinpoints deficiencies in marketing policies, explains customer resistance, suggests sales promotion techniques, guidance to marketing executives, selection and training of sales force, facilitates business expansion, facilitates appraisal of marketing policies, suggests marketing opportunities, facilitates inventory study, provides marketing information, suggests distribution channels, creates progressive outlook, social significance.

Marketing research keeps the business unit in touch with the latest market trends and offers guidance for facing a market situation with confidence. It facilitates production as per consumer demand and preferences.

Marketing research pinpoints the deficiencies as regards products, pricing , promotion, etc. It gives proper guidance regarding different aspects of marketing. They include product development, branding , packaging, and advertising.

Marketing research is useful for finding out customer resistance to the company’s products. Suitable remedial measures are also suggested by the researcher to deal with the situation. This makes the products agreeable to the consumers.

Marketing research enables a manufacturer to introduce appropriate sales promotion techniques, select the most convenient channel of distribution, suitable pricing policy for the products, and provision of discounts and concessions to dealers. It facilitates sales promotion.

Marketing research offers information and guidance to marketing executives while framing marketing policies. Continuous research enables a company to face adverse marketing situations boldly. It acts as insurance against possible changes in the market environment.

Marketing research is useful for the selection and training of staff in the sales Organisation. It suggests the incentives which should be offered for motivation of employees concerned with marketing.

Marketing research enables a business unit to grow and expand its activities. It creates goodwill in the market and also enables a business unit to earn high profits through consumer-oriented marketing policies and programs.

Research activities enable marketing executives to appraise the present marketing policies in the fight for research findings. Suitable adjustments in the policies are also possible as per the suggestions made.

Marketing research suggests new marketing opportunities and the manner in which they can be exploited fully. It identifies existing and emerging market opportunities.

Marketing research is useful for the evaluation of a company’s inventory policies and also for the introduction of more efficient ways of managing inventories including finished goods and raw materials.

Marketing research provides information on various aspects of marketing. It suggests the relative strengths and weaknesses of the company. On the basis of such information, marketing executives find it easy to frame policies for the future period. Marketing research provides information, guidance, and alternative solutions to marketing problems.

Marketing research can be used to study the effectiveness of existing channels of distribution and the need of making suitable changes in the distribution system.

Marketing research generates a progressive and dynamic outlook throughout the business Organisation. It promotes systematic thinking and a sense of professionalization within the company. It also creates enthusiasm among executives concerned with marketing. This brings success and stability to the whole business unit.

Marketing research is of paramount importance from a social angle. It acts as a means by which the ultimate consumer literally becomes king of the marketplace.

Limitations of Marketing Research

These are some points of limitations of marketing research :

Offers Suggestions and not Decisions

Fails to predict accurately, cannot study all marketing problems, resistance to research by marketing executives, time-consuming activity, costly/expensive activity, dearth of qualified staff, complexity of subject, uncertainty of conclusions, limitations of data used, limited practical utility, miscellaneous limitations.

Marketing research is not a substitute for the decision-making process. Ready-made decisions on marketing problems are not provided by the researcher. Marketing research does not solve any marketing problems directly. It only aids management in the decision-making and problem-solving process.

In marketing research, efforts are made to predict the possible future situation. For this, certain research studies are undertaken. However, the predictions arrived at may not be perfect. The future is always uncertain and an exact prediction about the future is just not possible through marketing research.

Marketing research cannot study all marketing problems, particularly where it is difficult to collect relevant data. Similarly, the research study is not possible where value judgments are involved. Thus, all marketing problems are not researchable and all research problems are not answerable. Marketing research is not a ‘panacea’.

Researchers study marketing problems and offer guidance to marketing executives in their decision-making process. However, some executives are reluctant to use the solutions suggested by the researchers. They feel that such use will act as a threat to their personal status. Marketing executives also feel that researchers give solutions that are academic in character and lack practical utility.

Marketing research is a time-consuming activity. The research work takes a longer period for completion and the findings when available may prove to be outdated. Even data collected very soon become old due to the fast-changing market environment.

Marketing research activity is costly as research work requires the services of experts. Advanced training in economics, computer technology, sociology, etc. is also necessary on the part of the research staff. Even giving the responsibility for research work to an advertising agency or to a management consultant is costly.

For a scientific marketing research, professional marketing researchers with proper qualifications, experience, and maturity are required. Research work is likely to be incomplete /unreliable in the absence of such expert staff.

Marketing research fails to give complete and correct guidance to the management on marketing issues. This is because Marketing research is not an exact science. It is concerned with the study of human behavior which is always difficult to predict. As a result, the conclusions drawn and recommendations made are not cent percent correct.

The consumer is the focal point in marketing research. However, consumers’ buying motives are difficult to judge precisely and accurately. This brings some sort of uncertainty to the conclusions drawn from the marketing research.

The marketing research process solely depends on the data collected and used for analyzing the marketing problem, drawing conclusions, and making recommendations. However, the whole process will come in danger if the data collected are inadequate and unreliable.

Marketing research is mainly an academic exercise. Researchers take more interest in research work rather than in supplying information and guidance to marketing managers in the decision-making process. Many research reports are rather bulky and unintelligible. This brings down the practical utility of marketing research.

Problems developed due to changing marketing environment cannot be solved quickly through MR. A research report may be bulky, technically worded, and difficult. Its execution is difficult at lower levels.

The limitations of marketing research (noted above) do not suggest that it is a redundant activity. It only suggests that the marketing research activity should be conducted with proper care and caution. This will make research activity meaningful and result-oriented.

FAQ Related to Marketing Research

What is the meaning of marketing research.

Marketing research is the process or set of processes that links the producers, customers, and end users 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 marketing as a process.

What is the definition of marketing research?

MR is the systematic and objective search for and analysis of information relevant to the identification and solution of any problem in the field of marketing. By Green and Tull

What are the components of marketing research?

These are the major components of marketing research explained below: 1. Market Research 2. Product Research 3. Advertising Research 4. Motivation Research 5. Sales Research.

What are the scopes of marketing research?

Scope of marketing research are given below: 1. Syndicate Service 2. Marketing Information System (MKIS) 3. Decision Support System 4. Market Research Projects.

What are the features of marketing research?

Features of Marketing Research: 1. Systematic and Continuous Process 2. Wide in Scope Application 3. Emphasizes Accurate Data Collection and Critical Analysis 4. Offers Benefits to Sponsoring Company and Consumer 5. Commercial Equivalent of Military Intelligence 6. Device for Managerial Decisions 7. Applied Type of Research 8. Reduces the Gap between the Producers and Consumer 9. Not an Accurate Science 10. Apply Different Methods 11. Dynamic Character.

What is the importance of marketing research?

The following points of the importance of marketing research: 1. Planning and Execution of Marketing Plan 2. Quick and Correct Decision-Making 3. Effective Solutions to Marketing Problems 4. Huge Spending on MR.

What are the advantages of marketing research?

Advantages of marketing research are given below: 1. Indicates Current Market Trends 2. Pinpoints Deficiencies in Marketing Policies 3. Explains Customer Resistance 4. Suggests Sales Promotion Techniques 5. Guidance to Marketing Executives 6. Selection and Training of Sales Force 7. Facilitates Business Expansion 8. Facilitates Appraisal of Marketing Policies 9. Suggests Marketing Opportunities 10. Facilitates Inventory Study.

What are the limitations of marketing research?

Limitations of Marketing research: 1. Offers Suggestions and not Decisions 2. Fails to Predict Accurately 3. Cannot Study all Marketing Problems 4. Resistance to Research by Marketing Executives 5. Time-Consuming Activity 6. Costly/Expensive Activity 7. Dearth of Qualified Staff 8. Complexity of Subject 9. Uncertainty of Conclusions 10. Limitations of Data Used 11. Limited Practical Utility 12. Miscellaneous Limitations.

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Marketing Research - Limitations and Constraints

Last updated 22 Mar 2021

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Accurate, up-to-date information obtained by marketing research can be of enormous value to a business in gaining and/or maintaining its competitive edge. However, there are a number of reasons why, in reality, these potential benefits may not be realised.

Budgetary constraints

Gathering and processing data can be very expensive. Many organisations may lack the expertise to conduct extensive surveys to gather primary data, whatever the potential benefits, and also lack the funds to pay specialist market research agencies to gather such data for them. In these cases, organisations may be forced to rely on data that is less than ‘perfect’ but that can be accessed more cheaply, e.g., from secondary sources

Time constraints

Organisations are often forced to balance the need to build up as detailed a picture as possible regarding customer needs etc. against the desire to make decisions as quickly as possible, in order to maintain or improve their position in the market

Reliability of the data

The value of any research findings depend critically on the accuracy of the data collected. Data quality can be compromised via a number of potential routes, e.g., leading questions, unrepresentative samples, biased interviewers etc. Efforts to ensure that data is accurate, samples are representative and interviewers are objective will all add to the costs of the research but such costs are necessary if poor decisions and expensive mistakes are to be avoided.

Legal & ethical constraints

the Data Protection Act (1998) is a good example of a law that has a number of implications for market researchers collecting and holding personal data. For instance, researchers must ensure that the data they obtain is kept secure, is only used for lawful purposes and is only kept for as long as it is necessary. It must be made clear as to why data is being collected and the consent of participants must be obtained. In addition to this, there are a number of guidelines, laid down by such organisations as the Market Research Society, that, although not legally binding, encourage organisations to behave ethically when dealing with members of the public.

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• THE NATURE AND IMPORTANCE OF MARKETING RESEARCH

Informal and, by today's standards, crude attempts to analyze the market date back to the earliest days of the marketing revolution. Only in recent years, however, has the role of research as it relates to management been clearly recognized.

Reflecting this change in orientation, the following definition of marketing research is offered: marketing research is the scientific and controlled gathering of nonroutine marketing information undertaken to help management solve marketing problems. There is often hearty disagreement over the answer to the question of whether marketing research is a science. One's answer depends on the employed definition of "science". To be specific, a research activity should use the scientific method. In this method, hypotheses (tentative statements of relationships or of solutions to problems) are drawn from informal observations. These hypotheses are then tested. Ultimately, the hypothesis is accepted, rejected, or modified according to the results of the test. In a true science, verified hypotheses are turned into "laws." In marketing research, verified hypotheses become the generalizations upon which management develops its marketing programs. (To simplify our discussion, we will use "questions" as a synonym of "hypothesis".)

The mechanics of marketing research must be controlled so that the right facts are obtained in the answer to the correct problem. The control of fact-finding is the responsibility of the research director, who must correctly design the research and carefully supervise its execution to ensure it goes according to plan. Maintaining control in marketing research is often difficult because of the distance that separates the researcher and the market and because the services of outsiders are often required to complete a research project. 1

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Marketing Research: Meaning, Scope and Uses

What is marketing research.

Marketing Research is defined as a study that consists of multiple techniques used by companies in order to gain more information about their target audience and the current market. Market research helps to gain information regarding current trends, profits, losses, economic and social factors affecting the market, and market strategies used. By utilising the gained information the companies and producers improve the overall quality of their products, their advertisements, and other marketing strategies.

Marketing Research helps companies to know the requirements of their customers and develop strategies that will help them reach out to their customers easily. As the market grows for a particular product, there increases the involvement of parties other than producers and consumers. This decreases the direct gap between both. Therefore the use of marketing research becomes necessary as it helps to get the required information.

Scope of Marketing Research

1. Research on Market: Research on Market studies about current market trends and products. It does a comparison between both the current market and the potential market. It analyses areas such as:

• Size of market
• Analysis of Market Shares
• Selecting the Target Market
• Analysing the need or demand for new products
• Setting sales territories and quotes
• Assessing current market trends and projecting future market trends

2. Research on Advertising: Advertisements are considered one of the major parts of marketing. Higher budgets are used to make effective advertisements. The research on advertising studies areas such as:

• Selection of media that will be used for advertising, such as videos, images, articles, blogs, podcasts, etc.
• Selection of advertising channels
• Studying promotion elements
• Positive and negative effects of advertisement in society and market
• Advertising role at different stages of product life cycle
• Government restrictions on advertising
• Studying competitors’ advertising strategies and practices

3. Research on Pricing: The price of the product is the major aspect considered by consumers while purchasing the product. Therefore proper research is made regarding the pricing. Having relevant pricing is important to attract more customers. The research on Pricing makes an analysis on below points:

• Studying pricing policies
• Studying offers and discounts
• Comparing the quality and price
• Use of various strategies for setting prices
• Pricing strategies on different stages of the product life cycle
• New product and pricing policies

4. Research on Distribution: In today’s Marketing world, distribution plays a vital role in the success of the product. The selection of a proper distribution channel is important. Many distribution channels are being used between producers and consumers. Research on distribution includes the below analysis:

• Studying various distribution channels
• Selecting from direct and indirect distribution channels
• Studying online marketing
• Studying factors and strategies used for distribution
• Study on physical distribution and ancillary services
• Legal issues related to distributions

5. Research on Product: Research on Products involves detailing with the products and services. The research covers all the issues and details that are related to the product. Understanding the use and quality of the product is essential before it is launched in the market. Therefore, research on products is important. It covers the study of below points:

• Characteristics of product
• Uses of product
• Studying other competitors available in market
• Studying about problems of consumers.
• Studying the lifecycle of products, packaging, sale, etc.
• Determining the uses of existing products
• Finding out the need for new product development
• Product life cycle
• Consumer Adoption Study

6. Research on Sales Methods and Policies: Research on Sales Methods and Policies consists of a study that is related to sales of the product. For sales, the distribution of products is important. The strategies used for sales improve the overall business and its profit. This study covers below points:

• Studying sales methods that are currently being used
• Analysis of sales records
• Management of sales force with parameters such as size, control, etc.
• Studying the sales department
• Study of advertisements, incoming customer traffic, etc.
• Study on activity and effectiveness of salesmen

7. Research on Business Environment and Corporate Responsibility: Research on the Business Environment and Corporate Responsibility consists of a study that is related to marketing problems. This study is conducted for big businesses and analyses the data. It helps the business to work on its business strategies and work accordingly. This research involves analysis on:

• Availability of product-related resources
• Long-term and short-term goals of the business
• Social, financial, and cultural factors that affect the business
• Income, economic growth, and Policies for business
• Impacts of Acts and Legal Provisions
• Technological Aspects

Uses of Marketing Research

Marketing research is used by many businesses and applications. Below are some uses of Marketing Research:

1. Analysing the current market and its situation: Marketing research helps a company to analyse the current market scenario. This analysis consists of identifying the current market trends, economic condition, profit and loss, pricing, distribution, etc. This analysis helps to confirm the strategies and methods that are used.

2. Studying the company’s strengths and weaknesses and utilising these strengths to gain advantages in the business: Through marketing research, a business can verify its strengths and weaknesses with the help of a SWOT (Strengths, Weaknesses, Opportunities, and Threats) Analysis. This helps businesses to work more on their strengths, reduce their weakness and improve accordingly.

3. Continuously diagnosing the threats that can occur in business: Continuously identifying the threats that can occur is an important task for the growth of a business. By analysing the threats that can occur, a business can take all the preventive measures that are needed and prevent them from loss.

4. Identifying the strengths and strategies used by competitors: Marketing research enables companies to gain insights into their competitors’ strengths, weaknesses, and strategies. Understanding the competitive landscape helps businesses position themselves effectively and devise strategies that can exploit competitors’ weaknesses or differentiate from their strengths.

5. Studying market opportunities and utilising them at the right time: Marketing research helps to analyse the available opportunities in the market. It helps to analyse trends, the needs of customers, and their segments.

6. Studying the marketing patterns of customers: It is important to study the purchasing patterns of customers; their habits, choices, motivations, and preferences they use. This analysis helps the company to enhance its products according to the need of customers and change its marketing strategies and techniques.

7. Analysis of other competitors present in the market: Marketing research helps to study other competitors that are present in the market. This analysis helps to improve strategies used by the company in order to play a leading role in the market, change their approaches, use statistics, and then perform accordingly.

8. Studying the overall progress done by the company: Studying the overall progress helps to analyse the profitable strategies and their techniques. By measuring some parameters such as brand awareness, satisfaction of customers, profits, and marketing a business can improve by working according to the study. 

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The Hidden Truths: Unveiling the Limitations of Marketing Research

Marketing research is a powerful tool that guides businesses in understanding their customers and making informed decisions. However, despite its apparent accuracy, marketing research is not without its limitations and challenges.

In this article, we delve into the lesser-known aspects of marketing research to shed light on its boundaries and complexities. Join us on this journey as we uncover the hidden truths behind data collection, sample sizes, biases, and other crucial factors that influence the accuracy and reliability of marketing research. By understanding these limitations, marketers can navigate the ever-evolving landscape with confidence and ensure their strategies are built on a solid foundation of knowledge. Get ready to unravel the intricacies of marketing research and empower your decision-making process with valuable insights.

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What is Marketing Research?

Marketing research can be defined as the systematic process of collecting, analyzing, and interpreting data to gain insights into consumer behavior, market trends, and competitive landscapes. It involves the use of various research methodologies, such as surveys, focus groups, and data analysis, to gather information that aids businesses in making informed marketing decisions.

Importance of Marketing Research in Decision-Making

Marketing research plays a crucial role in decision-making for businesses of all sizes. Here are a few key reasons why it is highly valued:

• Understanding Consumer Needs : By conducting research, businesses can gain a deep understanding of their target audience’s preferences, needs, and pain points. This knowledge allows them to tailor their products, services, and marketing strategies to effectively meet customer demands.
• Identifying Market Opportunities : Through comprehensive market research, businesses can identify untapped market segments, emerging trends, and potential opportunities. This information enables them to develop innovative products and strategies to stay ahead of the competition.
• Minimizing Risk : Marketing research helps minimize risks associated with new product launches, marketing campaigns, or market expansions. By gathering data and insights, businesses can make more informed decisions, reducing the chances of costly mistakes.
• Enhancing Marketing Effectiveness : Research provides valuable insights into the effectiveness of marketing efforts. By evaluating consumer responses and measuring the impact of marketing campaigns, businesses can optimize their strategies to maximize results and return on investment.

Top 5 Limitations of Marketing Research

While marketing research is undeniably valuable, it is essential to acknowledge and address its limitations. In the following sections, we will explore the various challenges researchers encounter during the marketing research process. We will delve into methodological limitations, time and cost constraints, human biases, changing market dynamics, and ethical considerations. By understanding these limitations, businesses can approach marketing research with a more nuanced perspective, making informed decisions based on a holistic understanding of its strengths and weaknesses.

Now that we have established the foundation, let’s dive deeper into the first section: Methodological Limitations.

1: Methodological Limitations

In the realm of marketing research, methodological limitations pose significant challenges that researchers must navigate. These limitations can impact the quality and reliability of the insights gained. Let’s explore some of the key methodological limitations in marketing research.

A. Sampling Limitations

Sampling plays a crucial role in marketing research, as it involves selecting a subset of individuals or entities from a larger population. However, several limitations can arise during the sampling process:

• Non-representative samples : Obtaining a representative sample that accurately reflects the target population can be challenging. Factors such as self-selection bias or limited access to certain segments can result in skewed or unrepresentative samples.
• Sample size issues : The size of the sample affects the accuracy and generalizability of research findings. Insufficient sample sizes can lead to inadequate statistical power or unreliable results.
• Sampling bias : Even with a representative sample, sampling bias can occur when certain characteristics or groups are over- or under-represented. This bias can distort research findings and compromise their validity.

B. Data Collection Limitations

Collecting accurate and reliable data is essential for meaningful marketing research. However, several limitations can hinder the data collection process:

• Self-reporting bias : When individuals provide information about their own behavior, preferences, or opinions, they may be influenced by social desirability bias or memory limitations. This bias can lead to inaccuracies or distorted data.
• Social desirability bias : Respondents may provide socially desirable answers instead of expressing their true opinions or behaviors, leading to biased data.
• Data validity and reliability : Ensuring data validity and reliability is crucial for drawing accurate conclusions. Challenges such as measurement errors, respondent misunderstanding of questions, or inconsistent data collection techniques can compromise data quality.

C. Research Design Limitations

The design of marketing research studies can also present limitations that impact the validity and applicability of the findings:

• Lack of control : In real-world marketing research, researchers often face limitations in controlling external factors that may influence the outcomes. This lack of control can introduce confounding variables, making it challenging to establish cause-and-effect relationships.
• Inability to establish causality : Marketing research often focuses on identifying associations and correlations rather than establishing causality. While research can reveal relationships between variables, it is essential to interpret findings cautiously to avoid making unwarranted causal claims.
• External validity challenges : The extent to which research findings can be generalized to real-world situations is known as external validity. Limitations in sample representativeness, research context, or research settings may restrict the generalizability of the findings.

By understanding and addressing these methodological limitations, marketing researchers can enhance the rigor and reliability of their studies. In the next section, we will explore another facet of limitations in marketing research: Time and Cost Constraints.

2: Time and Cost Constraints

In the realm of marketing research, time and cost constraints present significant challenges that researchers must navigate. These constraints can impact the quality, comprehensiveness, and timeliness of research efforts. Let’s explore the specific limitations posed by time and cost factors.

A. Time Constraints

Time limitations can exert pressure on the marketing research process, potentially affecting the depth and accuracy of the insights gained. Some key limitations related to time constraints include:

• Impact of time limitations on research quality : When researchers face tight deadlines, there may be limited time available to gather data, conduct a thorough analysis, and ensure comprehensive insights. The rushed nature of the research process can compromise the overall quality of the research outcomes.
• Rushed decision-making based on incomplete data : Time constraints may force organizations to make decisions based on partial or preliminary data. Incomplete data may lead to suboptimal decision-making, as critical insights might be missed or overlooked.

B. Cost Constraints

Budget limitations can significantly influence the scope and execution of marketing research efforts. The availability of financial resources can impact the extent to which organizations can invest in research. Here are two key limitations related to cost constraints:

• Budget limitations and their effect on research scope : Conducting extensive marketing research can be expensive. Organizations with limited budgets may not have the resources to conduct large-scale surveys, collect primary data, or engage specialist market research agencies. Consequently, they may be compelled to rely on cheaper alternatives, such as secondary data sources, which may not provide the same level of accuracy or specificity.
• Trade-offs between quality and affordability : Cost constraints often require organizations to make trade-offs between research quality and affordability. Investing in higher-quality data collection methods, ensuring representative samples, and employing skilled interviewers come with additional costs. However, such investments are essential to avoid poor decision-making and costly mistakes.

By recognizing the limitations imposed by time and cost constraints, marketing researchers can strive to strike a balance between resource limitations and the need for accurate and reliable insights. In the next section, we will explore another facet of limitations in marketing research : Human Factors and Biases.

3: Human Factors and Biases

Human factors and biases can significantly impact the accuracy and reliability of marketing research. Researchers must be aware of these influences to ensure the validity of their findings. Let’s explore the key human factors and biases that can affect marketing research.

A. Researcher Bias

Researchers bring their own beliefs, opinions, and perspectives into the research process. These biases can influence research outcomes and compromise objectivity. Here are two common researcher biases:

• Personal beliefs and opinions influencing research outcomes : Researchers may unintentionally project their own beliefs, preferences, or expectations onto the research process. This bias can influence study design, data interpretation, and the conclusions drawn from the findings.
• Confirmation bias and selective perception : Researchers may have a tendency to seek, interpret, or prioritize information that confirms their preconceived notions or hypotheses. This bias can lead to the exclusion or downplaying of contradictory evidence, resulting in skewed findings.

B. Consumer Bias

Consumer biases refer to the tendencies and limitations of individuals participating in marketing research studies. These biases can affect the accuracy and reliability of the data collected. Here are two common consumer biases:

• Misinterpretation of survey questions : Respondents may misinterpret survey questions, leading to inaccurate or unreliable responses. Poorly worded questions, complex language, or ambiguity can contribute to this bias.
• Inaccurate recall and memory biases : Respondents’ ability to recall past experiences, preferences, or behaviors may be imperfect. Memory biases, such as selective memory or recall errors, can introduce inaccuracies in the data collected.

C. Response Bias

Response bias refers to systematic errors in respondents’ answers, often influenced by social desirability or other external factors. These biases can impact the validity of research findings. Here are two common response biases:

• Social desirability bias : Respondents may provide answers that they believe align with social norms or expectations, rather than their true beliefs or behaviors. This bias can lead to over-reporting socially desirable behaviors or under-reporting socially undesirable ones.
• Respondent fatigue and satisficing : Lengthy surveys or repeated questioning can lead to respondent fatigue, where participants become less engaged or provide less thoughtful responses. Satisficing occurs when respondents opt for quick and easy answers rather than investing effort in providing accurate or detailed responses.

By acknowledging and accounting for these human factors and biases, marketing researchers can employ strategies to mitigate their impact and improve the quality and reliability of their research. In the next section, we will explore another facet of limitations in marketing research: Changing Market Dynamics.

4: Changing Market Dynamics

Marketing research operates in a dynamic landscape where market conditions, consumer behavior, and technology continuously evolve. These changing market dynamics present unique challenges for researchers. Let’s explore two key aspects of changing market dynamics: evolving consumer behavior and technological advancements.

A. Evolving Consumer Behavior

Consumer behavior is influenced by various factors, and understanding and predicting consumer preferences can be a complex task. Here are two limitations arising from evolving consumer behavior:

• Difficulty in predicting consumer preferences : Consumer preferences can be elusive and constantly evolving. Market researchers may face challenges in accurately predicting and understanding the ever-changing tastes, preferences, and needs of consumers.
• Rapidly changing trends and fickle consumer attitudes : Market trends and consumer attitudes can shift quickly, influenced by various factors such as social media, cultural changes, and emerging technologies. This dynamic nature of consumer behavior poses challenges in keeping up with the latest trends and adapting research strategies accordingly.

B. Technological Advancements

Technological advancements continually shape the marketing landscape and introduce new possibilities for research. However, they also present unique challenges. Here are two limitations related to technological advancements:

• Challenges of adapting research methodologies to new technologies : Emerging technologies, such as artificial intelligence, big data analytics, and virtual reality, offer exciting opportunities for marketing research. However, incorporating these technologies into research methodologies requires additional expertise, resources, and careful adaptation to ensure their effectiveness and relevance.
• Privacy concerns and data collection limitations : As technology advances, privacy concerns become more prominent. Stricter data protection regulations and growing consumer privacy concerns may limit the types and amount of data that can be collected, impacting the scope and depth of marketing research. Researchers must navigate these limitations while ensuring ethical and legal compliance.

By recognizing the impact of changing market dynamics on marketing research, researchers can adapt their strategies and methodologies to effectively capture consumer insights in a rapidly evolving landscape. In the next section, we will explore another facet of limitations in marketing research: Ethical Considerations.

5: Ethical Considerations

Ethical considerations play a crucial role in marketing research, ensuring that the rights and well-being of individuals are respected. Let’s delve into two key ethical considerations that researchers must address: privacy and data protection, as well as manipulation and exploitation.

A. Privacy and Data Protection

Maintaining privacy and protecting personal data are essential ethical obligations in marketing research. Here are two important aspects related to privacy and data protection:

• Data security risks and breaches : The collection, storage, and handling of personal data pose security risks. Researchers must implement robust security measures to safeguard data from unauthorized access, breaches, or misuse. Protecting data confidentiality and integrity is essential to maintain trust with participants and comply with data protection regulations.
• Consent and transparency in data collection : Researchers must ensure that individuals participating in research studies provide informed consent. Participants should be fully aware of the purpose, methods, and potential uses of their data. Transparency in data collection helps build trust and allows individuals to make informed decisions about their participation.

B. Manipulation and Exploitation

Marketing research must adhere to ethical standards to avoid manipulation and exploitation. Here are two important considerations related to this aspect:

• Ethical implications of targeted marketing and persuasive techniques : Targeted marketing relies on leveraging consumer data to personalize advertisements and messages. However, ethical concerns arise when individuals are subjected to manipulative or deceptive techniques that exploit their vulnerabilities. Researchers should ensure that targeted marketing practices uphold ethical principles and respect consumer autonomy.
• Balancing business interests with consumer well-being : Ethical marketing research strives to strike a balance between business objectives and consumer well-being. Researchers should avoid practices that prioritize profits at the expense of consumer welfare. Responsible decision-making and ethical frameworks help guide researchers in ensuring that marketing efforts are fair, transparent, and beneficial to both businesses and consumers.

By addressing privacy and data protection concerns, as well as recognizing the ethical implications of marketing practices, researchers can uphold the integrity of their work and promote ethical conduct within the field of marketing research. In the final section, we will summarize the key limitations discussed throughout this article and emphasize the importance of navigating these constraints to maximize the benefits of marketing research.

Marketing research is a valuable tool for businesses, but it is not without limitations. Budgetary and time constraints, data reliability, and legal and ethical considerations can impact the effectiveness of research. However, businesses can overcome these limitations by strategic resource allocation, investing in expertise, ensuring data quality and validity, and maintaining ethical standards. By addressing these challenges head-on, businesses can leverage the power of marketing research to make informed decisions and gain a competitive edge in the market.

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Home » Scope of the Research – Writing Guide and Examples

Scope of the Research – Writing Guide and Examples

Table of Contents

Scope of the Research

Scope of research refers to the range of topics, areas, and subjects that a research project intends to cover. It is the extent and limitations of the study, defining what is included and excluded in the research.

The scope of a research project depends on various factors, such as the research questions , objectives , methodology, and available resources. It is essential to define the scope of the research project clearly to avoid confusion and ensure that the study addresses the intended research questions.

How to Write Scope of the Research

Writing the scope of the research involves identifying the specific boundaries and limitations of the study. Here are some steps you can follow to write a clear and concise scope of the research:

• Identify the research question: Start by identifying the specific question that you want to answer through your research . This will help you focus your research and define the scope more clearly.
• Define the objectives: Once you have identified the research question, define the objectives of your study. What specific goals do you want to achieve through your research?
• Determine the population and sample: Identify the population or group of people that you will be studying, as well as the sample size and selection criteria. This will help you narrow down the scope of your research and ensure that your findings are applicable to the intended audience.
• Identify the variables: Determine the variables that will be measured or analyzed in your research. This could include demographic variables, independent variables , dependent variables , or any other relevant factors.
• Define the timeframe: Determine the timeframe for your study, including the start and end date, as well as any specific time intervals that will be measured.
• Determine the geographical scope: If your research is location-specific, define the geographical scope of your study. This could include specific regions, cities, or neighborhoods that you will be focusing on.
• Outline the limitations: Finally, outline any limitations or constraints of your research, such as time, resources, or access to data. This will help readers understand the scope and applicability of your research findings.

Examples of the Scope of the Research

Some Examples of the Scope of the Research are as follows:

Title : “Investigating the impact of artificial intelligence on job automation in the IT industry”

Scope of Research:

This study aims to explore the impact of artificial intelligence on job automation in the IT industry. The research will involve a qualitative analysis of job postings, identifying tasks that can be automated using AI. The study will also assess the potential implications of job automation on the workforce, including job displacement, job creation, and changes in job requirements.

Title : “Developing a machine learning model for predicting cyberattacks on corporate networks”

This study will develop a machine learning model for predicting cyberattacks on corporate networks. The research will involve collecting and analyzing network traffic data, identifying patterns and trends that are indicative of cyberattacks. The study aims to build an accurate and reliable predictive model that can help organizations identify and prevent cyberattacks before they occur.

Title: “Assessing the usability of a mobile app for managing personal finances”

This study will assess the usability of a mobile app for managing personal finances. The research will involve conducting a usability test with a group of participants, evaluating the app’s ease of use, efficiency, and user satisfaction. The study aims to identify areas of the app that need improvement, and to provide recommendations for enhancing its usability and user experience.

Title : “Exploring the effects of mindfulness meditation on stress reduction among college students”

This study aims to investigate the impact of mindfulness meditation on reducing stress levels among college students. The research will involve a randomized controlled trial with two groups: a treatment group that receives mindfulness meditation training and a control group that receives no intervention. The study will examine changes in stress levels, as measured by self-report questionnaires, before and after the intervention.

Title: “Investigating the impact of social media on body image dissatisfaction among young adults”

This study will explore the relationship between social media use and body image dissatisfaction among young adults. The research will involve a cross-sectional survey of participants aged 18-25, assessing their social media use, body image perceptions, and self-esteem. The study aims to identify any correlations between social media use and body image dissatisfaction, and to determine if certain social media platforms or types of content are particularly harmful.

When to Write Scope of the Research

Here is a guide on When to Write the Scope of the Research:

• Before starting your research project, it’s important to clearly define the scope of your study. This will help you stay focused on your research question and avoid getting sidetracked by irrelevant information.
• The scope of the research should be determined by the research question or problem statement. It should outline what you intend to investigate and what you will not be investigating.
• The scope should also take into consideration any limitations of the study, such as time, resources, or access to data. This will help you realistically plan and execute your research.
• Writing the scope of the research early in the research process can also help you refine your research question and identify any gaps in the existing literature that your study can address.
• It’s important to revisit the scope of the research throughout the research process to ensure that you stay on track and make any necessary adjustments.
• The scope of the research should be clearly communicated in the research proposal or study protocol to ensure that all stakeholders are aware of the research objectives and limitations.
• The scope of the research should also be reflected in the research design, methods, and analysis plan. This will ensure that the research is conducted in a systematic and rigorous manner that is aligned with the research objectives.
• The scope of the research should be written in a clear and concise manner, using language that is accessible to all stakeholders, including those who may not be familiar with the research topic or methodology.
• When writing the scope of the research, it’s important to be transparent about any assumptions or biases that may influence the research findings. This will help ensure that the research is conducted in an ethical and responsible manner.
• The scope of the research should be reviewed and approved by the research supervisor, committee members, or other relevant stakeholders. This will ensure that the research is feasible, relevant, and contributes to the field of study.
• Finally, the scope of the research should be clearly stated in the research report or dissertation to provide context for the research findings and conclusions. This will help readers understand the significance of the research and its contribution to the field of study.

Purpose of Scope of the Research

Purposes of Scope of the Research are as follows:

• Defines the boundaries and extent of the study.
• Determines the specific objectives and research questions to be addressed.
• Provides direction and focus for the research.
• Helps to identify the relevant theories, concepts, and variables to be studied.
• Enables the researcher to select the appropriate research methodology and techniques.
• Allows for the allocation of resources (time, money, personnel) to the research.
• Establishes the criteria for the selection of the sample and data collection methods.
• Facilitates the interpretation and generalization of the results.
• Ensures the ethical considerations and constraints are addressed.
• Provides a framework for the presentation and dissemination of the research findings.

Advantages of Scope of the Research

Here are some advantages of having a well-defined scope of research:

• Provides clarity and focus: Defining the scope of research helps to provide clarity and focus to the study. This ensures that the research stays on track and does not deviate from its intended purpose.
• Helps to manage resources: Knowing the scope of research allows researchers to allocate resources effectively. This includes managing time, budget, and personnel required to conduct the study.
• Improves the quality of research: A well-defined scope of research helps to ensure that the study is designed to achieve specific objectives. This helps to improve the quality of the research by reducing the likelihood of errors or bias.
• Facilitates communication: A clear scope of research enables researchers to communicate the goals and objectives of the study to stakeholders, such as funding agencies or participants. This facilitates understanding and enhances cooperation.
• Enables replication : A well-defined scope of research makes it easier to replicate the study in the future. This allows other researchers to validate the findings and build upon them, leading to the advancement of knowledge in the field.
• Increases the relevance of research: Defining the scope of research helps to ensure that the study is relevant to the problem or issue being investigated. This increases the likelihood that the findings will be useful and applicable to real-world situations.
• Reduces the risk of scope creep : Scope creep occurs when the research expands beyond the original scope, leading to an increase in the time, cost, and resources required to complete the study. A clear definition of the scope of research helps to reduce the risk of scope creep by establishing boundaries and limitations.
• Enhances the credibility of research: A well-defined scope of research helps to enhance the credibility of the study by ensuring that it is designed to achieve specific objectives and answer specific research questions. This makes it easier for others to assess the validity and reliability of the study.
• Provides a framework for decision-making : A clear scope of research provides a framework for decision-making throughout the research process. This includes decisions related to data collection, analysis, and interpretation.

Scope of the Research Vs Scope of the Project

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• Marketing Research
• Limitations of Marketing Research

Following are the main limitations of Marketing Research:

Humans have a tendency to behave artificially when they know that they are being observed. Thus, the consumers and respondents upon whom the research is carried behave artificially when they are aware that their attitudes, beliefs, views, etc are being observed.

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Authorship/Referencing - About the Author(s)

The article is Written By “Prachi Juneja” and Reviewed By Management Study Guide Content Team . MSG Content Team comprises experienced Faculty Member, Professionals and Subject Matter Experts. We are a ISO 2001:2015 Certified Education Provider . To Know more, click on About Us . The use of this material is free for learning and education purpose. Please reference authorship of content used, including link(s) to ManagementStudyGuide.com and the content page url.

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Setting Limits and Focusing Your Study: Exploring scope and delimitation

As a researcher, it can be easy to get lost in the vast expanse of information and data available. Thus, when starting a research project, one of the most important things to consider is the scope and delimitation of the study. Setting limits and focusing your study is essential to ensure that the research project is manageable, relevant, and able to produce useful results. In this article, we will explore the importance of setting limits and focusing your study through an in-depth analysis of scope and delimitation.

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Table of Contents

Scope and Delimitation – Definition and difference

Scope refers to the range of the research project and the study limitations set in place to define the boundaries of the project and delimitation refers to the specific aspects of the research project that the study will focus on.

In simpler words, scope is the breadth of your study, while delimitation is the depth of your study.

Scope and delimitation are both essential components of a research project, and they are often confused with one another. The scope defines the parameters of the study, while delimitation sets the boundaries within those parameters. The scope and delimitation of a study are usually established early on in the research process and guide the rest of the project.

Types of Scope and Delimitation

Significance of Scope and Delimitation

Setting limits and focusing your study through scope and delimitation is crucial for the following reasons:

• It allows researchers to define the research project’s boundaries, enabling them to focus on specific aspects of the project. This focus makes it easier to gather relevant data and avoid unnecessary information that might complicate the study’s results.
• Setting limits and focusing your study through scope and delimitation enables the researcher to stay within the parameters of the project’s resources.
• A well-defined scope and delimitation ensure that the research project can be completed within the available resources, such as time and budget, while still achieving the project’s objectives.

5 Steps to Setting Limits and Defining the Scope and Delimitation of Your Study

There are a few steps that you can take to set limits and focus your study.

1. Identify your research question or topic

The first step is to identify what you are interested in learning about. The research question should be specific, measurable, achievable, relevant, and time-bound (SMART). Once you have a research question or topic, you can start to narrow your focus.

2. Consider the key terms or concepts related to your topic

What are the important terms or concepts that you need to understand in order to answer your research question? Consider all available resources, such as time, budget, and data availability, when setting scope and delimitation.

The scope and delimitation should be established within the parameters of the available resources. Once you have identified the key terms or concepts, you can start to develop a glossary or list of definitions.

3. Consider the different perspectives on your topic

There are often different perspectives on any given topic. Get feedback on the proposed scope and delimitation. Advisors can provide guidance on the feasibility of the study and offer suggestions for improvement.

It is important to consider all of the different perspectives in order to get a well-rounded understanding of your topic.

4. Narrow your focus

Be specific and concise when setting scope and delimitation. The parameters of the study should be clearly defined to avoid ambiguity and ensure that the study is focused on relevant aspects of the research question.

This means deciding which aspects of your topic you will focus on and which aspects you will eliminate.

5. Develop the final research plan

Revisit and revise the scope and delimitation as needed. As the research project progresses, the scope and delimitation may need to be adjusted to ensure that the study remains focused on the research question and can produce useful results. This plan should include your research goals, methods, and timeline.

Examples of Scope and Delimitation

To better understand scope and delimitation, let us consider two examples of research questions and how scope and delimitation would apply to them.

Research question: What are the effects of social media on mental health?

Scope: The scope of the study will focus on the impact of social media on the mental health of young adults aged 18-24 in the United States.

Delimitation: The study will specifically examine the following aspects of social media: frequency of use, types of social media platforms used, and the impact of social media on self-esteem and body image.

Research question: What are the factors that influence employee job satisfaction in the healthcare industry?

Scope: The scope of the study will focus on employee job satisfaction in the healthcare industry in the United States.

Delimitation: The study will specifically examine the following factors that influence employee job satisfaction: salary, work-life balance, job security, and opportunities for career growth.

Setting limits and defining the scope and delimitation of a research study is essential to conducting effective research. By doing so, researchers can ensure that their study is focused, manageable, and feasible within the given time frame and resources. It can also help to identify areas that require further study, providing a foundation for future research.

So, the next time you embark on a research project, don’t forget to set clear limits and define the scope and delimitation of your study. It may seem like a tedious task, but it can ultimately lead to more meaningful and impactful research. And if you still can’t find a solution, reach out to Enago Academy using #AskEnago and tag @EnagoAcademy on Twitter , Facebook , and Quora .

Frequently Asked Questions

The scope in research refers to the boundaries and extent of a study, defining its specific objectives, target population, variables, methods, and limitations, which helps researchers focus and provide a clear understanding of what will be investigated.

Delimitation in research defines the specific boundaries and limitations of a study, such as geographical, temporal, or conceptual constraints, outlining what will be excluded or not within the scope of investigation, providing clarity and ensuring the study remains focused and manageable.

To write a scope; 1. Clearly define research objectives. 2. Identify specific research questions. 3. Determine the target population for the study. 4. Outline the variables to be investigated. 5. Establish limitations and constraints. 6. Set boundaries and extent of the investigation. 7. Ensure focus, clarity, and manageability. 8. Provide context for the research project.

To write delimitations; 1. Identify geographical boundaries or constraints. 2. Define the specific time period or timeframe of the study. 3. Specify the sample size or selection criteria. 4. Clarify any demographic limitations (e.g., age, gender, occupation). 5. Address any limitations related to data collection methods. 6. Consider limitations regarding the availability of resources or data. 7. Exclude specific variables or factors from the scope of the study. 8. Clearly state any conceptual boundaries or theoretical frameworks. 9. Acknowledge any potential biases or constraints in the research design. 10. Ensure that the delimitations provide a clear focus and scope for the study.

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Top 10 limitation of marketing research.

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Marketing research plays a crucial role in excelling marketing performance. In fact, it is inevitable to understand and treat customers more effectively than competitors. Marketer can satisfy customers by maintaining close contact with the target market by marketing research. It is one of the basic tasks of modern marketing. However, it is not free from limitations. Marketing manager must be aware of these limitations.

Main limitations or practical problems have been discussed as under:

1. Effect of Extraneous Factors :

Extraneous means external and uncontrollable factors. In most of the cases, the extraneous factors affect marketing research results adversely. Due to impact of such factors, the net impact cannot be estimated. For example, if marketer wants to study the impact of 10% price rise on demand and he raises price by 10%.

As a result, demand falls by 20%. Here, decrease in demand cannot be fully attributed to price hike only. Demand might have been affected by other factors like introduction of new superior product, attractive offer of competitors, availability of powerful substitutes, etc., over and above price rise. Whatever degree of precaution is taken, one cannot eliminate effect of such factors completely, and as a result, marketing research cannot serve the purpose.

2. Time Gap Makes Research Irrelevant :

Systematic marketing research project needs more time. It takes weeks, months, even years. When marketing research is carried on to investigate or solve the problem, final outcomes are available after considerable time. When outcomes are made available, situations might have been changed thoroughly or problem for which research was made might have been solved automatically. Decision-maker needs information in time. But, practically, it is not possible. Sometimes, time, money, and efforts contribute nothing.

3. Cost Consideration :

To conduct marketing research systematically is a luxury. A firm needs money for research design, data collection, data analysis, interpretation, and report preparation. Statisticians and computer experts charge heavy fees. When research is conducted regularly, a company has to maintain a separate well-equipped marketing research department. Marketing research has become costlier. So, it is difficult for medium and small companies to afford.

4. Problem of Rapid Change :

Today’s market is characterized by tremendous changes. Whatever is applicable or relevant today is out-dated tomorrow. Due to rapid changes, marketing research cannot serve the purpose. Research results or outcomes available after the specific time period seem irrelevant or meaningless.

5. Problem of Trust and Accuracy :

Marketing research is based on trust and accuracy. Right from the identification of problem to the final outcomes, all depends on trust. Company has to trust on marketing research officer; research officer has to trust on field officer; and field officer has to rely on response of respondents. At any stage of marketing research, accuracy is vital issue. To the extent inaccuracy prevails, marketing research results suffer.

6. It is not Problem Solving Technique but an Aid to Solve the Problem :

It is interesting and shocking to state that marketing research does not solve any problem directly. It is not a problem-solving technique but can assist to solve it. It is not a magic stick to solve marketing problems; it is a source of information. To the extent source is reliable and is used properly, it is useful. Even, an excellent research project is useless if outcomes are not considered.

7. Subjective or Biased Result :

When human being is involved, a completely bias-free response or result is not possible. Effect of personal value, prejudice, attitudes, needs, and other socio-cultural factors affect the objectivity of research adversely. Subjectivity may lead to utter chaos.

8. It cannot Eliminate Risks Inherent in Decision-making :

In every economic decisions, there exists risk and uncertainly. Marketing research cannot eliminate risk and uncertainty. It is an attempt to minimize degree of risk. So, heavy costs on marketing research don’t guarantee safety and certainty.

9. Applicability or Use :

Contribution of research project depends not only on quality and reliability alone, but also the proper use of information. Many times, marketing research reports remain just a formality for top management. Recommendations are neither considered seriously nor implemented fully.

10. Difference between Filed Officers, Data Analysts, and Decision- makers :

Marketing research activity involves a number of people such as marketing manager, field officer, data analysts, and finally decision-maker. All these people have different objectives, backgrounds, and perspectives. Consistency or parity among them is a vital issue. Unless high degree of integration and intimacy among them exit, one cannot expect a success. In fact, it is difficult.

Marketing manager and those involved in marketing research activity must be aware of these limitations/practical problems. Note that these limiting factors cannot be completely eradicated. Attempts should be made to minimize adverse impact of these limiting factors. Careful plan, adequate budget, teamwork, accuracy, timeliness, proper use and implementation, etc., have a strong prospect to contribute in successful marketing research.

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• Marketing Research: Scope, Advantage and Limitations |Marketing Management
• Limitations of Marketing Research

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