project of marketing management

8/8/2019 Project of Marketing Management

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Submitted for the first year of

Master of management studies

By

Ms. Shinde Nayana S.

Mr. Meshram Tushar G.

Mr. Ghanekar Sameer J.

Mr. Karval Vinod P.

Ms. Ghanekar Kavita G.

Under the guidance of

DR. C. SATYANARAYANA

YADAVRAO TASGAONKAR SCHOOL

OF

BUSINESS MANAGEMENT

BHIVPURI ROAD, KARJAT 410 201.

UNIVERSITY OF MUMBAI


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Marketing research & MIS

OCT 2009-2010

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ACKNOWLEDGEMENTS

We desire to express our sense of profound gratitude to all those

personalities who have contributed their best efforts in helping us through the

proceedings in our project work.

With immense pleasure, we would like to express our deepest sense of

indebt ness to our guide professor DR.C.SATYANARAYANA for his

esteemed guidance, co-operation.

We would also like to thank our parents who have supported us

financially as well as morally.

Without the support of all these personalities, our project would not have been

successfully completed.

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INDEX

Sr. no. Particulars Pg.no

1 Introduction and Definition

2 Features of Marketing Research

3 Objective of Marketing Research

4 Need of Marketing Research

5 Functions of Marketing Research

6 Advantages of Marketing Research

7 Limitations of Marketing Research

8 Branches of Marketing Research

9 Method of Conducting Marketing Research

10 Definition of MIS

11 Function of MIS

12 Characteristics of MIS

13 Sources of MIS

14 Advantages of MIS

15 Components of MIS

16 Difference between MIS and MR

17 Sampling- Planning and Designing

18 Features of Sampling

20 Advantages of Sampling Method

21 Limitations of Sampling Method

22 Steps in Sampling Process

23 Sampling Methods

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INTRODUCTION OF MARKETING

RESEARCH:

Marketing Research comprises of two words Marketing and

Research. To understand the role of Marketing Research, it is essential on

our part to thoroughly understand the basic concepts of Marketing

Management. In the Marketing Management the entire emphasis is on

Customer. The entire function of Marketing revolves around customer. In the

Management theory Customer has been perceived as a King or the Boss

for whom everything is being done by the business.

In marketing research, specific marketing problem is studied in depth

by collecting and analyzing all relevant information and solutions are

suggested to solve the problem which may be related to consumer, product,

market competition, sales promotion and so on.

Marketing research facilitates accurate marketing decisions for

consumer satisfaction on the one hand and sales promotion on the other hand.

It is rightly treated as the SOUL of modern management.

DEFINITIONS OF MARKETING RESEARCHAccording to AMERICAN MARKETING ASSOCIATION: The

systematic gathering, recording and analyzing of data about problems relating

to the marketing of goods and services

According to PHILIP KOTLER: Marketing research is systematic

problem analysis, model building and fact finding for the purpose of improved

decision making and control in the marketing of goods and services.

According to RICHARD D. CRISP: Marketing research is the

systematic, objective and exhaustive search for and study of the facts relevant

to any problem in the field of marketing.

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FEATURES OF MARKETING RESEARCH:

1) Systematic and continuous process:

Marketing research is a continuous process. One type of research is not

adequate to resolve all marketing problems. A marketing company has to

conduct marketing research regularly for its survival & growth in the present

dynamic marketing environment.

2) Wide/comprehensive in scope/wide application:

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, introduction of suitable advertising strategy and salespromotion measures are some areas covered by marketing research.

3) Emphasizes on accurate data collection and critical analysis:

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 comprehensive picture of the situation

and possible solutions.

4) Offers benefits to sponsoring company and consumers:

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.

5) Commercial equivalent of military intelligence:

Marketing research is the commercial intelligence activity. It is similar

to military intelligence where systematic study is made before taking any

military action. MR acts as the intelligence tool of marketing management.

6) Tool for managerial decisions:

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. MR is an aid to judgment and never a

substitute for it.

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7) Applied type of research:

Marketing research is applied knowledge. It studies specific marketing

problem and suggests alternative solutions and possible outcome of each

alternative.

8) Reduces the gap between the producers and consumers:

It is useful for understanding the needs and expectations of consumers.

It reduces the gap between produces and consumers and adjusts the marketing

activities to suit the needs of consumers.

9) Not an exact science:

Marketing research is both science and an art. It collects information

and studies marketing problem in a scientific manner. The information

collected is also applied to real life problem. However, MR is not the exact

science. It only suggests possible solutions and not the exact solution to

marketing manager for consideration and selection.

10) Use of different methods:

Marketing research can be conducted by using different methods. Data

can be collected through survey or by other methods like observation method

or experimentation method. Even computers and internet are used for data

collection. The researcher has to decide the method suitable for his research

project.

11) Dynamic character:

Marketing research is dynamic in nature. Its scope is fast expanding

along with the new developments in the field of marketing.

12) Closely connected with marketing information system:

Both the concepts are interrelated. In fact, MR is one component of

MIS. Both are useful for solving marketing problems and for accurate and

quick decision making in the field of marketing.

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OBJECTIVES OF MARKETING RESEARCH:

To study the need, wants and expectation of consumers.

To find out reactions of consumers to the products of the company.

To evaluate companys sales promotion measures for suitable

adjustment and improvement.

To study current marketing problems and opportunities for suitable

follow-up actions.

To suggest the introduction of new products, modifications of existing

products and to discover new uses of existing products.

To design and test appropriate packages, brands of companys

products.

To study existing pricing, channels of distribution and market

competition for suitable changes, if necessary.

To find out methods for marketing the products of the company

popular and raising its goodwill and market reputation.

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INCREASING NEED OF MARKETING

RESEARCH:

The following factors/points suggest increasing need of MR:

1. Growth and complexity of markets:

The marketing activity is becoming increasingly complex and broader

in scope as more firms operate in domestic and global markets. Manufacturers

find it difficult to establish close contact with all markets and consumers

directly. Similarly, they have no control on the marketing system once the

goods are sold out to middlemen.

This situation creates new problems before the manufacturers which

can be faced effectively through MR as it acts as a feed-back mechanism to

ascertain first hand information, reactions, etc. of consumers and middlemen.

2. Wide gap between producers and consumers:

Marketing research is needed as there is a wide gap between producers

and consumers in the present marketing system. Due to mass scale production

and distribution, direct (personal) contact between producers and consumers is

practically lost. Producers do not get dependable information as regards needs,

expectations and reactions of consumers. They are unable to adjust their

products, packaging, prices, etc. as per the needs of consumers.

The problems creates due to information gap can be solved only

through MR as it is possible to establish contact with consumers and collect

first hand information about their needs, expectations, likes, dislikes,

preferences and special features of their behavior.

3. Changes in the composition of population and pattern of

consumption:

In India, many changes are taking place in the composition of

population. There have been considerable changes in the consumption and

expenditure patterns of consumers because of urbanization. The incomes of

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the people, in general, are rising. This brings corresponding increase in their

purchasing capacity and buying needs and habits.

MR is needed for the study of changes in the pattern of

consumption and corresponding adjustment in the marketing planning,

policies and strategies.

4. Growing importance of consumers in marketing:

Consumers occupy key position in modern marketing system. They are

now well informed about market trends, goods available, consumer rights and

protection available to them through consumer protection acts. Even growing

customers expectations create situation when manufacturers have to

understand such expectations and adjust the production policies accordingly.

MR particularly consumer research gives valuable data relating to

consumers this data use to framing marketing policies.

5. Shift of competition from price to non-price factors:

Cut-throat competition is unavoidable in the present marketing field

due to various factors such as price, quality, packaging, advertising and sales

promotion techniques.

MR is needed as it offers guidance in this regard. A manufacturer

can face market competition even by using certain non-price factors. The

shifting of competition from price to non-price factors has made marketing of

consumers goods more complicated and challenging. This challenge can be

faced with confidence by using certain measures suggested through marketing

research.

6. Need of prompt decision making:

In competitive marketing, marketing executives have to take quick and

correct decisions. Moreover, wrong decisions may bring loss to the

organization. For correct decision- making, marketing executives need reliable

data and up-to-date market information. Here, MR comes to the rescue of

marketing managers. Problems in marketing are located, defined, analyzed and

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solved through MR technique. MR is needed as a tool for reasonably accurate

decision making in the present highly competitive marketing system.

7. Recent developments in science and technology:

Science and technology are making rapid progress. In fact, the impact

of such progress touches all aspects of commercial and industrial activities.

Consumers prefer new/novel articles in place of old ones. Producers and

distributers find it difficult to take decisions due to lack of knowledge about

future market trends. Here, marketing research is useful as it provides

information about future trends in the marketing field and enables marketing

managers to take quick and correct marketing decisions.

The factors noted above clearly suggest the growing need of MR in the

present consumer-oriented marketing system. It is needed in order to reduce

the risks and uncertainties in the marketing activities.

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FUNCTIONS OF MARKETING RESEARCH:

MR performs five basic functions. These functions are related to the

research project undertaken. Usually, every research study performs the

functions as explained below:

1. Description:

MR provides data and gives information/description of customers

who buy the product. This includes information about their age/sex, education,

income and the amount of money which they are willing to spend on the

product. Description of the customers is useful in order to draw certainconclusions about the customers and their buying behavior.

2. Evaluation:

MR is useful for understanding the views/reactions of the buyers.

This includes views of consumers on packaging/ advertising/ sales promotion

measures used. A manufacturer gets these details as well as the information

about his product in comparison with the products of his competitors. This

facilitates evaluation of the marketing policies.

3. Explanation:

MR gives explanation to certain questions of a manufacturer related

to decline in sales, retailers negative reaction or resistance of consumers in a

particular marketing area.MR enables a manufacturer to understand why sales

are reducing (causes) or why the response of the retailers is negative or why

consumers in a particular region are not willing to purchase a specific project.

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4. Prediction:

MR conducts prediction function. Such predictions may be related

to consumers, market environment, market competition, possible socio-

economic changes and so on. This prediction function enables a manufacturer

to understand how much people will spend on the specific product in the next

year or the fashions which consumers may prefer in next year. In brief, MR is

useful for understanding the marketing environment likely to develop in

future. The prediction function is important even when all predictions made

through research studies may not prove to be fully correct. However, the trend

indicate can be used for appropriate policy decisions.

5. Aid in Decision-making:

MR guides the manufacturer as regards the manner in which he can

make effective advertising appeal or create incentive among his

salesmen/distributors. It also gives him guidance as regards price fixation and

sales promotion techniques which will be useful for the future period. These

functions facilitate reasonably correct decision-making by marketing

managers.

In brief, the basic function of MR is to support marketing decision-

making process. MR does not provide ready-made decisions or exact solutions

on all marketing problems. It only provides the clues or possible solutions

which should be taken into consideration in the decision-making process. It

provides support to skills and abilities of marketing managers.

The different functions of MR are supplementary in character.

These functions enable a manufacturer to keep close touch with the marketing

situation and enable him to make suitable changes in his marketing policies

and programmes.

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ADVANTAGES / BENEFITS OF MARKEING

RESEARCH:

1. Indicates current market trends:

MR keeps business unit in touch with the current market trends

and offers guidance for facing market situation with confidence.

2. Pinpoints deficiencies in marketing policies:

MR pinpoints the deficiencies as regards products, pricing,

promotion, etc. It gives guidance regarding different aspects of marketing.

They include product development, branding, packaging and advertising.

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3. Explains customer resistance:

MR is useful for finding out customer resistance to companys

products. Remedial measures are also suggested by the researcher to deal with

the situation. This makes the products and marketing policies agreeable to

consumers.

4. Suggests sales promotion techniques:

MR enables a manufacturer to introduce appropriate sales

promotion techniques, select most convenient channel of distribution, suitable

pricing policy for the products and provisions of discounts and concessions to

dealers. MR facilitates sales promotion.

5. Offers guidance to marketing executives:

MR offers information and guidance to marketing executives while

framing marketing policies. Continuous research enables a company to face

adverse marketing situation boldly. It acts as an insurance against possible

changes in market environment.

6. Facilitates selection and training of sales force:

MR is useful for the selection and training of staff in the sales

organization. It also suggests the incentives which should be offered for

motivation of employees concerned with marketing.

7. Promotes business activities:

MR enables a business unit to grow/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 programmes.

8. Facilitates appraisal of marketing policies:

Research activities enable business executives to have an appraisal

of the present marketing policies in the light of finding of research work.

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Suitable a adjustments in the policies are also possible as per the suggestions

made by the researchers.

9. Suggests new marketing opportunities:

MR suggests new marketing opportunities and the manner in which

they can be exploited fully. It identifies emerging market opportunities.

10. Facilitates inventory study:

MR is useful for the evaluation of companys inventory policies

and also for the introduction of more efficient ways of managing inventories

including finished goods and raw materials.

11. Provides marketing information:

MR provides information on various aspects of marketing. It

suggests 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. MR provides information, guidance and alternative solutions to

current marketing problems.

12. Suggests appropriate distribution channels:

MR can be used to study the effectiveness of existing channels of

distribution and the need of making suitable changes in the distribution

system.

13. Provides information on product acceptance:

MR helps in knowing the probability of acceptance of the

product in its present form. It is also useful for the introduction of

modifications in the existing product line of a firm.

14. Creates progressive outlook:

MR generates a progressive and dynamic outlook throughout the

business organization. It promotes systematic thinking and a sense of

professionalization within the company. It also creates enthusiasm among

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marketing executives. This brings success and stability to the whole business

unit.

15. Has wider social significance:

MR is of paramount importance from the social angle. It is the

means by which the ultimate consumer literally becomes king of the market

place, with his desires, prejudices and every whim transmitted to the producer

and distributor. In brief, MR has wider social significance. It is useful to all

parties involved in the process of marketing.

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LIMITATIONS OF MARKETING

RESEARCH:

MR itself is not complete/perfect in all respects. It deals with

marketing environment which itself is flexible. Even the actions/reactions of

consumers are different under different situations. This brings limitations:

1. MR offers suggestions and decisions:

MR is not a substitute for decision-making process. It only offers

possible suggestions/solutions to marketing problems. It guides marketing

managers in taking balanced, result-oriented and rational decisions. MR offers

predictions but they are not necessarily accurate or perfect. MR only provides

indicators. MR aids managerial decision-making but it cannot replace

judgment and experience of marketing executives/managers. MR is not always

the only source of information to be used for marketing decisions.

2. MR cannot predict accurately:

In MR, efforts are being made to estimate or predict the possible

future situation. However, the results/conclusions arrived at may not be

complete, perfect or accurate. They predict possible tendencies but not

certainties. This is because market environment is ever changing, consumer

behavior is difficult to estimate correctly and reliable data for research purpose

may not be available. As a result, the decisions taken and policies framed on

the basis of such research studies may not be accurate and useful for solving

current marketing problems.

3. MR conclusions are not dependable:

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There are many who are skeptics of MR. Their criticism is that

MR conclusions are not dependable. There are examples where the research

failed to deliver desired results or a product failed even when the research had

shown promising market demand and consumer support.

4. MR cannot study all marketing problems:

MR is rather very wide in scope. However, it cannot study all

marketing problems particularly where it is difficult to collect relevant data.

Even it is not useful for dealing with urgent marketing problems where quick

decisions and follow-up actions are necessary. Thus, all marketing problems

are not researchable and all research problems are not answerable.

5. Resistance by marketing executives:

Researchers study marketing problems and offer information and

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 extensive use will act as a threat to theirpersonal status. Findings of the research work may bring them in difficulties if

the policy-decisions taken accordingly prove to be wrong.

6. Lengthy and time-consuming activity:

MR is a lengthy and time consuming activity. It involves various

stages/steps which need to be completed in an orderly manner. It is not

desirable to conduct research work is a haphazard manner. MR is not useful

for dealing with urgent marketing problems. Moreover, research work cannot

be conducted overnight and marketing decisions cannot be postponed till the

research work is completed.

7. MR is a costly affair:

MR is costly as research work requires the services of experts

with knowledge, maturity and skill. Such experts include economists,

management scientists, statisticians, psychologists and computer (software)

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experts. Advanced training in economics, computer technology, psychology,

sociology, etc. is also necessary on the part of research staff.

8. Non-availability of qualified staff:

For scientific MR, professional marketing researchers with proper

qualifications, training and experience are necessary. Research work is likely

to be incomplete/unreliable in the absence of such expert staff. Companies

find it difficult to have the services of such expert staff. Research activities are

conducted in limited areas due to non-availability of property qualified staff.

Such staff includes statisticians, psychologists, sociologists, economists and

computer experts.

9. Complexity of the subject:

MR fails to give complete and full proof solutions to

management. This is because MR itself is not an exact science. It is concerned

with the study of human beings and human behavior is always difficult to

predict. Errors in drawing conclusions are possible due to this human element

in MR activities. Errors in the research studies are also possible due to

uncertainty of human behavior and also because of non-availability of reliable

data.

10. Changing behavior of consumers:

Consumer is the focal point in MR. However; his buying motives

are difficult to judge precisely and accurately. This brings some sort of

uncertainty in conclusions drawn from research activity. The findings of the

research work (in case of consumer research) may not prove to be accurate.

11. Limited practical utility:

MR is regarded as an academic exercise. It is often been delinked

from the business strategy. As a result many research reports become

academic in nature and are field. Researchers take more interest in

concluding research work rather than in supplying information and guidance

to marketing managers in the decision-making process.

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12. Passive nature:

MR is passive by its nature. Sometimes, it becomes too

superficial and faulty in business management. Many conclusions drawn from

the MR activities may be imaginary or not based on realities. Its use and

effectiveness largely depend on the ability of marketing executives to get the

most promising results out of it. MR by itself may not give any benefit. It only

shows the way to executives in the decision-making process.

13. Fragmentary approach:

On many occasions, MR tends to be fragmentary in its approach.

It suggests solution which may be difficult to put into operation. This is

because overall marketing environment is not given adequate attention while

suggesting the solution. Such fragmentary approach is not useful for solving

marketing problems in an integrated manner.

14. Absence of affective communication:

The research activity will be useful and result-oriented only

when there is meaningful dialogue between the marketing management andMR team. However, such dialogue is ineffective in many organizations. This

makes research activity ineffective.

The limitations of MR do not suggest that it is a redundant

activity or an activity without any practical utility. It only suggests that the

MR activity should be conducted with proper care and caution.

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IMPORTANT BRANCHES OF MARKETING

RESEARCH

1) Product Research:Product research relates to products which are to be marketed to

consumers. It is useful for introducing new product which will be agreeable to

consumers. Product research relates to various aspects such as design,

development and introduction of new products, testing of existing products,

product modification studies and so on.

2) Packaging Research:

Packaging research is a part of product research. It is important for

making the product attractive and agreeable to consumers. Packaging is now

treated as a tool for sales promotion. Constant changes in package design are

required for sales promotion. For innovation in the package design, packaging

research is necessary. Branding and packaging normally go together and hence

brand research is treated as a part and parcel of packaging research.

3) Pricing Research:

It relates to analysis of pricing policies and strategies, studies of

market price trends, fixation of market prices, studies relating to price charged

by competitors, price incentives for sales promotion and provision of price

discount and other price concessions to dealers and consumers.

4) Market Research:

It relates to analysis of consumer markets, assessment of market

trends, forecasting of business conditions, studies of wholesale marketing,

market competition studies, sales forecasting, estimating demand for new

products and monitoring competitive marketing activities.

5) Sales Research:

It relates to studies of sales outlets, sales territories and their

revision, trends in sales, sales forecasting, sales policies, sales performance

and so on.

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6) Promotion and Distribution Research:

Promotion research relates to assessing effectiveness of the sales

force and selling efforts, effectiveness of advertising campaigns. It also

includes the study of channels of distribution for modification for

modification, distribution cost analysis of the physical distribution, inventory

control and handling of goods

7) Consumer Research:

It relates to finding out consumers needs and preference,

consumers purchasing intentions, consumers choice of brands, trends in

consumer preference and purchasing patterns.

8) Policy Research:

It is related with the evaluation of effectiveness of marketing

policies, sale policies, distribution policies, pricing policies, inventory policies

and so on.

9) Advertising Research:

It relates to evaluation of advertising effectiveness, analyzing

competitive advertising and selection of appropriate advertising media. Media

research, copy research, corporate research are included within the scope of

advertising research.

10) Media Research:

Different media are used for communicating message about the

products to prospective buyers. Media are used for advertising and publicity

purpose. Newspaper, TV, magazines are used for advertising. Media research

relates to detailed study of different media for selection and use.

11) Motivational Research:

It is one aspect of consumer research as it deals with consumer

behavior. Consumer research is useful for finding out the sentiments, buying

motives, priorities and inner feelings of consumers.

12) International Marketing Research:

It deals with foreign markets which are attractive and profitable

provided products and marketing activities are adjusted as per the need of

foreign markets and buyers. Data collections about foreign markets, market

surveys, etc. are undertaken under international marketing research. Such

research is costly and time consuming as compared to internal research.

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METHODS OF CONDUCTING MARKETING

RESEARCH

It is classified into following four categories:

1) Desk Research:

In desk research, the required information for research work is

collected from published and other written sources of the collection secondary

data. Desk research is a type of in-house research.

2) Field Research/investigation:

In this method, the required information is collected from the

consumers, dealers and others connected with marketing through personal

interviews, etc. In addition, consumers surveys are also conducted for this

purpose. The data collected from such field investigation are called primary

data.

3) Observation Method:

In observation method, the required information is collected

through actual physical observation of one or more phenomena under study.

This method is also useful for the collection of primary data.

4) Experimentation Method:

Here the required information is collected through a small scale

experiment under controlled conditions. It is also used for primary data

collection.

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MARKETING INFORMATION SYSTEM

(MIS)

WHAT IS MIS?

Marketing information system supports marketing decision making

and marketing planning. It facilitates quick marketing decision making and

thereby raises marketing excellence. Even after collecting all required

information, the decisions are to be made by marketing executives.

MIS is an essential support system for developing marketing

decisions, plans and strategies.

Information is critical for a firms survival and competitive edge in the

marketing field. Information network serves as key resource in all aspects of

life including business and marketing. Required information needs to be

collected, arranged and stored systematically for reference purpose. This is

what is achieved through MIS.

In order to achieve marketing objective, correct decision must be taken

and correct decision making is possible when reliable, up to date and adequateinformation is made available regularly.

DEFINITIONS OF MARKETING INFORMATION

SYSTEM:

According to MR.COX AND GOOD A set of procedures and methods

for the regular and planned collection, analysis and presentation of

information in making marketing decisions.

According to MR.WILLIAN STANTON Marketing information system

(MIS) is an ongoing, organized set of procedures and methods designed to

generate, analyze, store, and retrieve information for use in making marketing

decisions.

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FUNCTIONS OF MARKETING INFORMATION SYSTEM:

1) Assembling of information or relevant marketing data through

internal and external sources. Such data act as a raw material of MIS.2) Processing of information i.e. editing, tabulating and summarizing

the data collected for the purpose of ready reference and critical

analysis.

3) Analyzing the data collected which is essential for drawing

conclusions for decision making.

4) Storing of data collected i.e. filing and indexing of information

collected so that it can be made available for use when required.

5) Evaluating the data i.e. finding out accuracy and reliability of the

data collected.

6) Disseminating relevant information to decision makers, i.e.

Marketing Managers.

7) Updating the information collected periodically by discarding

outdated data and incorporating new data available.

8) Introducing updated information technology in the collection

processing and storing of informationcollected.

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CHARACTERISTICS OF MARKETING

INFORMATION SYSTEM:

1) Continuously operated process:

MIS is a consciously developed technique for the flow of

information to the company. It operates continuously. Regular flow of

information acts as a feedback in decision making. It is an ongoing process as

new information is added to the old one in a continuous manner.

2) Facilitates prompt and correct decision making:

MIS provides updated information on various aspects of marketing

to managers or executives. As a result, managers are aware of new marketing

developments taking place. They are also in apposition to take prompt

decisions from time to time due to the feedback provided by MIS. It acts as a

data bank for the benefit of marketing managers.

3) Future oriented:

MIS provides information about possible future problems and their

solutions through appropriate marketing decisions. It acts as a preventive

mechanism in marketing management and offers guidance to marketing

executives.

4) Provides continuous information on marketing developments:

MIS collects and provides information on marketing to concerned

executives. It goes to right people at the right time. In other words, it provides

right information at the right time to right people for decision making. As a

result, decision-making process becomes accurate and quick.

5) Acts as a link between external environment and internal

resources:

It provides updated information about external marketing situation

and facilitates suitable adjustment in the internal resources to face the overall

situation effectively.

6) Operates in a systematic manner:

MIS operates in a rational and systematic manner. This is

necessary for quick reference to required information. Proper system in the

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collection and storing of information is necessary as varied type of

information is now easily available. Such information has to be stored after

due classification. In brief, MIS needs well prepared operational system for

raising its utility and efficiency.

7) Uses modern technologies:

New techniques and machines are available for collection,

processing and storage of information. MIS is now becoming costly and also

needs the service of technically qualified staff (software experts).MIS is now

based on advanced technology. It is a computer based method of data

collection, processing and storage. Due to the use of computers updated

information is provided to executives easily and quickly.

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SOURCES OF MARKETING INFORMATION

SYSTEM:

Information is the base of MIS. Such information is collected from

different sources which includes internal and external.

Internal Sources of Information:

1) Old statistical records of the company.

2) Sales invoices and sales statistics.

3) Sales force records.

4) Production statistics.

5) Accounting data.

6) Financial records.

7) Departmental budgets and reports.

8) Old research and surveys.

9) Periodical progress reports.

10) Directors report and committee reports.

External Sources of Information:

1) Trade journals and periodicals.

2) Business press i.e. Economics Times, Financial Express, etc.

3) Census reports and other government publications on business, finance,

marketing, exports, etc.

4) Publication of trade associations and other agencies concerned with

finance, trade, commerce and industry.

5) Publication of RBI, financial institutions, term lending institutions and

government departments.

6) Publications and survey report of World Bank, WTO, FAO, etc.

7) Published survey reports and statistical data.

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8) Special reports, surveys conducted by marketing research agencies,

magazines, advertising agencies etc.

9) Publications of stock exchanges, commodity exchanges and export

promotion councils.

10) Daily press, reports and information.

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ADVANTAGES OF MARKETING INFORMATION

SYSTEM:

1) Provides updated and timely information for decision-making:

MIS provides information about various aspects of marketing.

Information acts as a feedback and facilitates correct decision making by

marketing managers. Problems are solved at the initials stages through suitable

preventive measures.

2) Facilitates monitoring of marketing operations:

Data on different aspects of marketing can be collected and stored

through MIS. This helps easy and effective monitoring of the performance of

products, markets etc.

3) Raises efficiency of decision making:

Integrated and updated marketing information may not be available

easily and quickly in large companies with many departments. However

separate arrangement can be made for collection, evaluation and storage of

such information through efficient MIS.

4) Facilitates quick reference:

Easy and quick reference to old information is possible due to MIS.

Quick reference to old information is due to modern computer techniques.

5) Promotes marketing excellence:

It is rightly said that to manage a business well is to manage its future

and to manage the future is to manage information. Marketing decisions will

be accurate when they are based on dependable information. Thus, MIS gives

the benefit in the form of marketing excellence.6) Facilitates tapping of marketing opportunities:

MIS facilitates tapping of promising marketing opportunities and

effective defense against marketing problems and threats likely to develop in

the future. Both benefit stability and prosperity.

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COMPONENTS OF MARKETING INFORMATION

SYSTEM:

1) Internal Marketing Information:

This component of MIS provides information from within the

organization itself i.e. through the accounting system on sales, inventories,

cost, cash flows and old records. All such data provides information for

marketing decision making. All such data are available within the firm and

hence these sources are called internal sources of marketing information.

Marketing managers use this internal source as the information is available

easily and quickly. For easily availability of internal information, filing andrecord keeping system must be efficient.

2) Marketing Intelligence:

This component provides information on external marketing

environment. Information is collected from external sources. It provide

information regarding current marketing environment and changing conditions

in the market. This information is available through census data, weekly and

monthly reports on markets and market news published in magazines and

trade journals etc. Market intelligence acts as a mirror of marketing

environment and provides appropriate decision making on marketing.

3) Marketing Research (MR):

In this component, specific marketing problem of the firm is selected

for investigation. Data regarding the problem is collected, tabulated analyzed

and conclusion is drawn. Suitable policy measures are recommended in order

to solve the problem.

4) Market Information Analysis:

Information gathered by the companys marketing intelligence and

marketing research systems often requires more detailed analysis. With

support from market information analysis managers can make better

marketing mix decisions, design sales territories, select site for retail outlets

and forecast new product sales.

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DIFFERENCE BETWEEN MIS AND MR:

Marketing Research(MR)

Marketing InformationSystem(MIS)

1) Meaning MR is the systematic

gathering, recording and

analyzing of data relating to

the marketing of goods and

services.

MIS is a set of procedures

and methods used for the

regular and planned

analysis and presentation of

information for marketing

decision-making.

2)Nature of

concept

MRis a narrow concept as

MR is one of the

components of MIS.

MIS is a broad concept. Its

purpose is to collect

information on all aspects

of business.3)Information

provided

MR provides precise and

properly analyzed

information regarding a

specific marketing problem

with a view to solving that

problem.

MIS provides information

on various aspects of

marketing in order to frame

marketing policies and

marketing decisions.

4)Purpose The purpose of MR is to

study a specific marketing

problem in depth and to

solve it quickly and also in

satisfactory manner.

The purpose of MIS is to

provide relevant and

reliable information to all

departments and facilitates

quick and correct decision-

making.

5) Coverage MR collects information

relating to specific

marketing problem under

investigation.

MIS collects information

on various aspects of

marketing such as

products, consumer needs,

market competition and

sales.

6) Operational

method

MR is conducted on

problem by problem or

project by project basiswith each project having a

starting and ending point.

MIS is a continuous

system and information is

collected, analyzed usedand stored in a regular and

continuous manner.

7) Use of

computer

Its a non computer based

system. However,

computers may be used

tabulating data or while

analyzing the information

collected.

MIS is a computer based

process as a computer

technology is extensively

used while collecting,

analyzing and storing the

information collected.

8) Type of

orientation

MRis past-oriented. MIS is future-oriented.

9) Every company may or Companies make

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Organizational

structure.

may not maintain MR

department.

arrangements for the

collection and storage of

information through MIS.

10) Frequency of

data collection.

In MR data collection is not

continuous but only as per

the research projectsundertaken.

In MIS data are collected

regularly on different

marketing aspects in whichthe firm is interested.

11) Sources of

data used:

In MR, external sources

such as surveys and census

reports are used for data

collection.

In MIS, external as well as

internal sources are used

for data collection.

SAMPLING

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PLANNING AND DESIGNING THE SAMPLE:

In MR, primary data cannot be collected from each and every

dealer/consumer as this is costly and time-consuming. The better alternative is

to select a representative sample and to collect information from such selected

individuals called sample. The information collected from the sample will be

applicable to the entire group but the collection will be quick and economical.

Sampling is based on the law of statistical regularity and the law of

inertia of large numbers. It is a process of selecting a small representative

group from the whole for intensive study purpose. A sample is a part of the

whole and is representative in character. It refers to a selected number of

individuals chosen from the whole group/population with a view to obtaining

information and drawing conclusions.

Naturally, the conclusions applicable to the sample are also

applicable to the whole universe. This is how reliable data can be collected

quickly and economically through sampling. Moreover, sampling facilitates

collection of information this is sufficiently adequate for survey purpose.

Sampling methodology is the foundation of the research design. It has a key

role to play in a systematic and objective marketing survey.

According to Crisp R. D., the fundamental idea of sampling is that

if a small number of items or parts (called a sample) are chosen at random

from a large number of items or a whole (called a universe or population) the

sample will tend to have the same characteristics and to have them in

approximately the same proportion as the universe.

FEATURES OF SAMPLING:

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1. Sampling is a small representative of the whole. It is an effective

alternative to the census survey.

2. Sampling reduces the time, efforts and money of the researcher on data

collection without any adverse effect on its quality.

3. The sampling technique is based on the assumption that random

selection of sample from the universe do possesses the same features and

characteristics as that of the universe.

4. The findings of sample survey are accurate and reliable. The large

sample is better as the results available are more accurate.

5. Sampling is used in data collection as well as for different purposes in

our daily life.

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ADVANTAGES OF SAMPLING METHOD:

1. Saves time and money:

Sampling facilitates primary data collection easily, quickly and

with less cost. It is time saving and economical method of survey for data

collection.

2. Provides reliable data:

The conclusions drawn from the sample survey are reliable,accurate and also applicable to the whole population/universe. Sampling

has no adverse effect on the quality of data collected. It gives quality

results with lesser volume of work.

3. Scientific base:

The concept of sampling has scientific backing as it is based on

the law of statistical regularity and the law of inertia of large numbers.

4. Popular and extensively used technique in MR:

The concept of sampling is quite common and popular in MR

as it helps researchers to finalize their findings and recommendations

within a short period.

5. Facilitates better supervision on data collection:

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Sampling method is restricted to limited number of

respondents. Naturally effective monitoring and supervision on the data

collection work is possible. This improves the quality of data collected.

LIMITATIONS OF SAMPLING METHOD:

1. Findings may not be accurate:

The findings and collection drawn from sample survey may

not be as available from the census technique in which the entire

population is covered. The accuracy is comparatively less.

2. Findings may not be reliable:

The findings may not be reliable if the sample selected is too

small or is not adequately representative in the character. In such case, the

conclusions drawn may be misleading and this may affect the quality of

research work.

3. Difficulties in the selection of representative sample:

There are many practical difficulties in the selection of

representative sample. This may defeat the very purpose of sampling.

4. Findings are not completely accurate:

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The findings of sampling method are reasonably accurate but

not completely accurate.

5. Data collection difficult in the case of large sample:

Data collection become difficult when large size sample is

decided. This also leads to more time and money for data collection.

SAMPLING PROCESS/STEPS IN SAMPLING PROCESS:

The sampling process consists of various steps involved in selecting

an appropriate sample. The work of sampling process starts with

defining/deciding the data needs of the research projects and ends with final

selection of sample for actual use. A detailed plan for the selection of

appropriate sample is the sampling process which is lengthy and time

consuming.

The following steps are involved in the sampling process:

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1. Deciding the data needs of research project:

Here, it is necessary to define the data requirements of

proposed research project. For this, the research problem needs to be

studied properly. Deciding the data needs of the project is the first and

basic step in the sampling process.

2. Deciding the area to be covered by survey work:

In this step, the area to be covered by the survey work needs

to be decided clearly. Population and sample size relate to the area

decided for the survey work. However, the decision in this regards

should be firm and final.

3. Defining the population:

Here, the total population from which the sample is to be

selected will be decided. The total population may be different for

different survey work. The researcher has to decide the population in

terms of elements, sampling unit, time available and so on. For

example, for the specific survey, the population may be all girls in thegroup of 18 to 22 within the sampling area which may be decided as

Mumbai city. The time period for the sample/survey may be from 15th

October 2006 to 15th January 2007.

4. Deciding the sample frame:

The sample frame for the survey should be proper. Every

element of the population should be represented only once. Attention

should be given to adequacy, accuracy, completeness and convenience

before deciding the sample frame.

5. Determining the desirable sample size:

The sample size should be decided in a fair manner. It

should not be too large or too small. It should be as per therequirements of the research work. Here, adequate attention should be

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given to various factors such as data needs of the project, the statistical

method to be used for analysis of data, the method of sampling to be

used and the availability of time, money and other resources.

6. Selecting the sampling method:

Methods of sampling are varied and broadly divided into

two categories-probability sampling and non-probability sampling.

Any suitable and convenient method should be selected for sampling

purpose.

7. Drawing samples and obtaining data from the selected

respondents:

Here, the final selection of the sample is to be made from

a well defined population. The sample selected should be of suitable

size. It should be selected through suitable method.

After making all such preparations, the researcher should select

the field staff for the collection of data. They include interviewers,

supervisors and others. This will enable them to act efficiently andcollect the required information within the time schedule prepared .

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SAMPLING METHODS/SAMPLING DESIGNS:

Sample designs are different methods used for the conduct of

sample survey. Quota sampling, judgment sampling etc. are the non-

probability sample designs while random sampling, area sampling, etc. are the

probability sample designs. In brief, the sample designs are divided into the

following two categories:

1. Probability Sampling Methods, and

2. Non-Probability Sampling Method.

1. Probability/Random Sampling Methods:

In the probability sampling methods, the sample units

are selected at random. Every member in the universe has equal chance

of being selected as the representative. The selection of sampling items

is impartial and independent of the person making the study. There is

no scope for any biased selection of sample units. Probability samplingmethods include random sampling, stratified, cluster, sampling, etc.

Such methods are used extensively in marketing research. Greater

statistical competence and time are required to plan and probability

sampling methods.

2. Non-probability Sampling Methods:

Here, sample units are selected in a non-random

manner. The selection may be purposive. It may be based on the

convenience or the judgment of the researcher. Every item is not given

a definite chance of being included in the sample. The non-probability

sampling methods include convenience sampling, judgment sampling

and quota sampling. In these methods, the sample is selected in a

subjective manner and the decision regarding sample is taken by the

researcher himself.

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Non-probability sampling methods are also used in

marketing research along with probability methods. Such methods are

sometimes preferred because they cost less per observation, required

less time and need relatively little statistical sophistication in planning

the sample design and in the selection the respondents.

MARKETING RESEARCH PROCESS

Details of steps in MR process:

1. Identifying and defining a marketing problem:

The First step/ starting point in the MR process is to identifying the

marketing problem which needs to be studied in depth and solved. The

research process will start only when the marketing problem is identified

clearly.

2. Conducting preliminary survey:

The marketing team may suggest many marketing problem which

they face. All marketing problems are not researchable and hence such

preliminary survey is necessary.

3. Determining research objectives:

The objective decided should be specific, measurable and also

attainable. The research objectives decided act as a guide to the researcher and

help him in maintaining a focus on the whole research project.

4. Creating research design:

The research design is a plan /blueprint of the whole research work

to be undertaken. It gives all details of the research project and acts as a

reference document during the execution of research project. The research

design indicates the method of research, the instruments to be used for the

research, the method of sampling etc.

5. Determining the data needs and their source:

The researcher has to decide the nature of data required for his study.

The researcher can use primary and/ or secondary data for his project. Theresearcher has to decide the convenient method for data collection.

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6. Designing a sample of respondents:

Sample is a small representative group selected from the total

population for intensive study purpose. Sampling is necessary in marketing

research as information collection from all consumers or all dealers is not

possible due to time and cost involved.

7. Designing the questionnaire:

Questionnaire aspect relates to the selection of research instruments

employed in research for collecting required information/data. The

questionnaire is one research instrument used extensively in a survey type

research.

8. Selection of field staff:

For data collection/ survey work, field staff is required. This includes

interviewers, supervisors and staff for secondary data collection. For data

collection, qualified staff should be selected on fair terms.

9. Data collection:

Data collection moves the research process from planning stage to

implementation stage. Communication between the researcher and the sample

begins at the data collection as per the method selected for data collection.

10. Data processing:

The completed questionnaires are not useful directly for tabulation

and drawing conclusions. This raw data need proper processing. For this,

scrutiny of data, editing, coding, classification and tabulation of data are

required.

11. Data analysis and interpretation:

The final step in a research study consists of analyzing the data and

interpreting the results. The purpose is to establish a relation between the

information and marketing problem under investigation.

12. Preparation of research report:

After drawing conclusions from the data collected, the researcher can

make concrete recommendations for solving the marketing problem. A

researcher also prepare a research report giving detail of research problem,

data collected, conclusions drawn and the recommendations made.

13. SUBMISION OF RESEACH REPORT:

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In this stage, the researcher will submit his research report to the

appointing authority. The researcher may submit his findings,

recommendations, etc.

MARKETING RESEARCH ON

PREFERENCE OF CONSUMER

Celebrity endorsement is a boom marketing concept in todays world,

since, customer recall is found to be higher with celebrity endorsement

advertisement. We can see that every company is going for this marketing

strategy for advertising their brands. Companies which produce fast movingconsumer goods and companies which produce product like suiting,

automobiles, garments, etc. all are adopting this marketing strategy to

advertise their product.

So through this research we are trying to find out, that whether

consumer buying product just because that product is being endorse/

advertising by celebrity or which are those factors consumer take into the

consideration while buying any product.

For this research we use random sampling method:

Sample size:

Total 90 people were contacted and interviewed.

Due the different kind of characteristic of consumer, we used segmentation

method. We segment them into the three categories, according to their age.

Sample design:

AGE WISE

515 1630 30above

30 30 30

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QUESTIONNARE:

Name:.

Age: _________ Sex: ____________

Occupation:

1. Do you like seeing celebrities in the advertisement?

Yes: _______ No: _______

2. Do you feel celebrities should advertise?

Yes: ______ No: ________

3. Do you buy the product endorsed by the celebrities?

Yes: ______ No: ________

4. Do you feel they relay the message more effectively?

Yes: ______ No: ________

5. Does celebrity attract towards product?

Yes: ______ No: ________

6. Which things you give more preference while purchasing any product?

(a) Quality (b) Celebrity (c) Style

7. Would you like to switch your traditional product with new quality product?

Yes: ______ No: ________

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ANALYSIS OF THE SURVEY:

Three categories of people were interviewed. The three categories

being.

1. Age group of 05-15.

2. Age group of 15-30.

3. Age group above 30.

The number of people interviewed was approximately 90.

DATA FOUND IN SURVEY

1. Do you like seeing celebrities in the advertisement?

0

20

40

60

80

100

1st

group

2nd

group

3rd

group

YES

NO

2. Do you feel celebrities should advertise?

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0

20

40

60

80

100

1st

group

2nd

group

3rd

group

YES

NO

3. Do you buy the product endorsed by the celebrities?

0

20

40

60

80

100

1st

group

2nd

group

3rd

group

YES

NO

4. Do you feel they relay the message more effectively?

0

20

40

60

80

100

1st

group

2nd

group

3rd

group

YES

NO

5. Does celebrity attract towards product?

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0

20

40

60

80

100

1st

group

2nd

group

3rd

group

YES

NO

6. Which things you give more preference while purchasing any product?

(a) Quality (b) Celebrity (c) Style

0

20

40

60

80

100

1st

group

2nd

group

3rd

group

Quality

celebrit

style

7. Would you like to switch your traditional product with new quality product?

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0

20

40

60

80

100

1st

group

2nd

group

3rd

group

YES

NO

Findings from the survey:

1. All the three age groups like to see celebrities in the advertisements. The

reason being, for the 1st age group - they just like to see their favorite stars in

the ads. For the 2nd and 3rd group are they come to know about a new talent

in their favorite stars or celebrities and quality of the product.

2. For the question "do you feel that the celebrities should do the ads" the 1st

group said 'Yes' because they like the celebrities very much. The 2nd group

said that they should come in the ads because it attracts the customers towards

the product for which they are advertising. The 3rd group feel that as they are

bored to see the same faces in the ads, its good that celebrities come in ads, itscreates an interest to see the ad.

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3. The 1st age group and the 2nd age group like to see the ads repeatedly but

the 3rd group doesn't have that much inclination for it except a few selected

ads.

4. When it comes to liking of celebrities, group 1 is very fond of celebrities.

5. For the question " do you think they relay the message more effectively",

the 1st group had no answer as such but the 2nd group agreed to the question

and the 3rd group gave the example of cad bury and coke sales rising up still,

after the pesticides problem.. They feel its because of Amitabh Bachchan for

Cadbury and Aamir Khan for coke.

6. When it comes to buying the product endorsed by the celebrities the 1 st

group says yes. They insist upon buying the product endorsed by them. The

2nd group is very choosy, they don't buy everything the celebrities endorse

except FMCG goods like cold drinks and chocolates etc. the 3rd group is

basic1ally more of logical thinkers. They say that "its good to see the ads and

enjoy more than going and buying only those products endorsed by them.

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CONCLUSION

Marketing research is one of the essential supplements of modern

highly competitive, consumer oriented and global marketing system. It

facilitates large scale marketing with satisfaction and pleasure to consumers.

It is essentially a systematic and objective study of different problems

of marketing. It helps to study various marketing problems in depth and offers

various benefits to manufacturing and marketing firms or organizations.

Marketing Research enables the firm or organization to make their

business operations as per the needs and expectations of the consumers. It

provides information regarding consumers and their needs/ expectations,

intensity of market competition, sales promotion techniques used by the

competitors. It also helps the firm to find out the method or strategies for

making their products popular in the market, raising its goodwill and also its

market reputation.

The purpose of MIS is to provide relevant and reliable information to

all departments and facilitates quick and correct decision-making.

MIS is the life blood of marketing decision-making.

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RFERENCES

THE INFORMATION COLLECTED IS MAINLY FROM THE

FOLLOWING SOURCES:

BOOK REFERENCE:

MARKETING MANAGEMENT BYPHILIP KOTLAR.

MARKETING RESEARCH BY N.G.KALE & M.AHMED

WEBSITES :

www.hindustantimes.com

www.bbc.com

www.yahoo.com

www.google.com

ECONOMIC TIMES

DAILY NEWS AND ANALYSIS [DNA]

TIMES OF INDIA
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