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Fundamentals of Marketing TU BBS

2nd year

The subject notes to Fundamentals of Marketing TU BBS 2nd year. It also


covers the possible and important question for the exam. I think this
really gonna help you. Some content may be similar to the book. After
reading this I think you need not to read the book and other solution
because I make this with the help of book and solution to find the answer
effective and own.

CHAPTER-1

Introduction.

In general sense, marketing means to sell product. But selling is only the
part of marketing. This is the age of marketing. Marketing activities are
the part of our daily life. All types of organization needs marketing.
Organizational success depends upon the marketing. Marketing is the
business activity which is directed at satisfying human needs. Marketing
tries to identify human needs and produce product to satisfy them.
Marketing matches products with consumer needs. Marketing means not
only to buy and sell but it is moreover attracting costumer satisfying
their needs for retaining them. Marketing always aims to develop long
term relationship with the costumer.
According to William Staton: Marketing is a total system of business
activities designed to plan, price, promote and distribute want satisfying
product to target market to achieve organizational objectives.
According to Kotler and Armstrong : Marketing is the process by which
individual and group obtain what they need and want by creating and
exchanging products and values with others.
Marketing thus is the system which follows a systematic process. It
consists of set of activities like product development, modifying existing
products, branding , packaging, labeling , quality control, setting pricing,
objectives, distribution and channel management, promotional
activities. Consumer's needs identification and satisfaction is the main
theme of marketing and they are aimed to achieve organization
objectives in a dynamic environment. Thus marketing process
encompasses all activities aimed at identifying and satisfying costumer
needs through exchange relationship to achieve organizational objectives
in dynamic environment.
Importance of Marketing
Marketing has become the part of our everyday life. Marketing plays
significant role for the organization,consumer and society. Its
importance is increasing day by day. The following charts show the
importance ......
Of marketing to consumer, society and organization

To Consumer To
Organization To Society
Standrad of living Demand
Management Social well being
Value Addition Product distribution
Employment generate
Information Coordinated usage of resources
Meet community need
Product Assortment Objectives achievement
Economic mgmt
Satisfaction

Importance to Consumer: Marketing is importance to consumer in


following ways

I) Standard of living: Marketing delivers standard of living to consumer.


It offers product that satisfy their needs. Safe and hygiene product of
high quality improve the quality of live as well as living standard.

Ii) Value Addition: By delivery of products at right quantity at right time


at right price , marketing adds value of products to consumer.

Iii) Information: Marketing provides information to consumer about


product, price, place and promotion. This promotes efficient buying for
consumer.

Iv) Product Assortment: Marketing provides all product at the


convenient place. So they can exercise freedom of choice.
V) Satisfaction: Better product performance provides satisfaction.
Marketing provides satisfaction to consumer. By matching the product to
consumer need, consumer get satisfaction.
Importance to Organization
Marketing plays vital role in an organization. The importance of
marketing to the organization can be classified in following ways.
I) Demand Management: Through the various promotional tools of
marketing stimulate demand. Such tool s inform, remind and encourage
costumer to purchase product.
Ii) Product Distribution: Marketing distribute products manufactured by
the organization. It distribute the product of right quality in right time to
right place in right quantity.
Iii) Coordinated usage of resources: Marketing identifies market
opportunity in target markets. Organization can choose the most
profitable segment. Integrated approach to marketing facilitate the
coordinated use of resources.
Iv) Objectives achievement: The main target of marketing is to achieve
organizational objectives. Marketing mix can be changed to meet
competition and consumer need.
V) Environmental Adaptation: Marketing monitors and identifies
environmental changes to identify important trends. Changes in
consumer preference resulting from technological, economic, poltical
and socio-cultural forces can be monitored. This helps organization to
adopt in dynamic environment.
Importance to Society:
I) Bears social responsibilities: Marketing bears social responsibility
objectives along with its other objectives. Marketing concern for safe
guarding about social needs. The societal interest to are protected
through environmental quality < Natural resources are properly used.
Pollution is controlled. Eco friendly products are made to promote social
interest. Planting trees, reflecting used materials, and saving on energy
use also enhances social well being.
Ii) Employment Generation: Marketing is an important source of
generating employment opportunities. About 33% of people of world are
engaged in marketing activities.
Iii) Economic development; Marketing activities accelerate business
activities. It helps industrialization. It is the important tool for economic
management. Most economic decision are affected by marketing.
Approach to the study of Marketing
A) Commodity approach to Marketing: This approach focuses on flow of
commodity. According to this approach marketing is the function of flow
of commodity from source of production to the place of consumption. It
is concerned with demand, supply, channels and transportation. This
approach is prevalent in agro- oriented economics.
Advantage:
I) this approach is concerned with flow of specific commodity from
supplier to consumer.
Ii) This approach establishes marketing system for each commodity.
Disadvantage:
I) this approach results in duplication of marketing efforts.
Ii) It is time consuming and costly.
B) Functional Approach to Marketing: This approach focuses on
different functions of marketing. It is concerned with the following
functions of marketing.
I)Exchange Function: This is the primary function of marketing. It is
related with the buying and selling function. Buying function involves
demand forecast, identification of supply sources, purchase of raw
material, machinery and IT. Where as selling function involves
identification of costumer, demand stimulation, price fixation and
promotion. It is the key function of marketing.
Ii) Distribution Function: This is the supporting function of marketing. It
covers the area of transportation and storage. Finished products are
transported to the consumer through the means of transportation and
storage is related with inventory management.
Iii) Facilitating Function: This is the auxiliary function of marketing it
involves standardization, finished goods are standardized and graded.
Financing needed financial resources can be fulfilled by loan. All types of
marketing risk are managed and insurance. All the information are
flowed and gathered and research and development are done about new
trade, competitors and environmental dynamics.
Advantages; This approach is concerned both with flow of commodity
and institutions in the movement of goods. It gives emphasis on the
function of marketing.
Disadvantages: This approach gives more emphasis to the marketing
function where as it ignores costumer needs.
C) Institutional Approach: This approach focuses on various institutional
involved in marketing. They can be related to product, price and
promotion. There are several institution related to marketing.
Producer and manufacturers: Produce raw material, manufacturer
convert raw material into finished goods.
Middleman: Wholesaler, Resellers, Agents etc.
Facilitating institution: transportation agencies, public warehouses(
provides facilities for storage of goods.) , Advertising agencies, financial
institution, Research and consultancy firms( solves marketing problems)
Advantage: the understanding of institutions helps marketing and its
cost can be reduced through proper selection of institution.
Disadvantage: This approach does not provide a total view of marketing
and its also ignores costumer needs.
D) System Approach to Marketing: This approach is system oriented. A
marketing system is collection of interrelated and interaction parts to
achieve objectives. Marketing system consists of input, processing,
output, and feedback components that operates in a dynamic
environment.
A) Input: It includes the marketing mix element: product, price, place
and promotion.
B) Processing: It consists of environmental influences and buyer
decision for purchase
C) Output: It consists of objectives achievement in terms of profit,
service, growth, survival, leadership.
D) Feedback: It provides information to redesign inputs and processing.
E) Environment: These components as well as the whole system are
affected by dynamic environment. This may be the internal environment
and external environment.
Advantages:
I) Synergy: In this approach marketing does not give undue importance
to any one element of marketing mix. It looks at the total pictures.
Ii) Marketing effectiveness: Marketing objectives are effectively
achieved. Marketing resources are efficiently utilized.
Iii) Changing forces in the environment are carefully considered in
designing the marketing mix.
Disadvantages: It ignores costumer needs. It is difficult to implement.
E) Environmental Approach to Marketing: This approach is
concentrated to the environment within which it operates. Marketing
operates in a dynamic environment. It should continiousualy monitor
and adopt to the changing environment to achieve objectives. There are
mainly two forces of environment which affects the marketing , they are
internal forces and external forces.
F) Managerial Approach to Marketing: This approach is management
oriented. It focuses on managerial decisions related to marketing. It
emphasizes achievement of goals by getting marketing jobs done
through people. This concept basically gives emphasis on following
managerial means:
I) Marketing Planning:
It is the process of setting marketing goals and choosing future
marketing action to achieve these goals. It includes the SWOT analysis,
establishment of marketing goals., selecting marketing action to achieve
goals, designing marketing mix, co-ordination of marketing activities etc.
Ii) Marketing Implementation: Implementation means assignment and
direction of human resource to carry out the marketing plan in a co-
ordinated manner. In this phase human resources are hired, channel for
distribution are selected, physical and financial resources are provided.
Organization climate is created by improving the quality of work
environment.
Iii) Marketing Control: It ensures that the right things are done in the
right manner and at the right time. Marketing control is the
measurement and correction of marketing performance to achieve
planned goals. This process includes the establishing standards,
measuring actual performance, finding deviation( difference between
actual performance and standard performance.) And taking the
corrective action.
Advantages: This approach uses both qualitative and quantitative
techniques for marketing decision making. Timely decision making helps
marketing to achieve objectives.
Disadvantages: This approach ignores costumer and the environmental
dynamics.
G) Economic Approach to Marketing:
According to this approach marketing is the process of buying and
selling of goods and services. Wants are unlimited but resources to fulfill
those needs are scarce. Marketing helps to make effective use of scarce
resources.
The assumption of this approach are:
- There are many individual firms in the market.
- The objectives of these firms is to maximize profit.
- The buyer wants to get maximum satisfaction.
- both the buyer and seller have complete information about market.
- Price is determined by the interaction between demand and supply.
Advantages: this approach is well developed and popular among
economists.
Disadvantages: This approach is based on various assumption and has
no relevance in the world of mar
Arketing BBS 2nd year ( chapter-2) Marketing environment.
Chapter-2
Marketing Environment

Marketing environment refers to those


factors, forces, which influence the
exchange relationship of marketing with
target costumers. Marketing environment
can be classified into two category. One is
'Micro' and another is 'Macro'.
Define Micro environment of marketing
and describes its factors.

Micro environment refers to all those


internal forces of the organization which
influence the marketing activities. The
area of micro environment is within the
territory of the organization itself, which
consist of organizational activities, scope
and stakeholder. It provides strength and
weakness to marketing. Micro
environment of marketing consist the
following factors:
1) Organizational Activities:

A) Production: production is directly


related with marketing which directly
influence the marketing activities. Product
need to be produced before they can be
marketed. The expansion or reduction in
the production directly affect the
marketing activities.
B) Finance: The proper financial
competitiveness is needed to accomplish
all marketing activities. New product
development, additional production
facilities and promotional activities need
finance. Thus this directly influence the
marketing activities.

C) HRM : Qualified and capable HR is


needed to carry out marketing activities
effectively.

D) Research and Development: research


and development play .........
A significant role in marketing. It facilitates
organization to match marketing mix to
costumer needs.

2) Organizational Scope: It include the


organization's objectives, organization
structure, Organizational Resources,
Organizational culture(value, norms etc.)

3) Stakeholder: the stakeholder are the


foundation to the organization from which
the organization taken place and
organization's objectives are targeted.
Micro environment is made up of
stakeholder. They may be the outside
organization or group who affect the
activities of marketing and are affected by
marketing. They have a stake in the
performance of marketing. The
stakeholder include Costumer, Suppliers,
Competition etc.

4) Marketing Intermediaries:
I) Middleman ( wholesaler, retailer)
Ii) facilitators: ( facilitate physical
movement of product, Transporters,
warehouse, clearing and forwarding
agents)
Iii) Market service Agencies: ( advertising
agencies, credit information agencies,
marketing research and consulting firms.)
Which helps in promoting products.
Iv) financial institution
V) Labour Union
Vi) Pressure group.
Macro Environment of Marketing
Define Macro environment with its forces .
Micro environment can be defined as the
set of external condition and forces that
influence the performance and outcomes
of marketing. It provides opportunities and
threat for marketing. It is out of the control
of the organization. The following are the
component/ forces of macro environment.
I) Political Forces:
The political environment consist all those
factors of public affairs such as political
system, political institution etc.
Ii) Legal forces:
It refers to rules of conduct enforced by
the state. Legal environment of marketing
refers to all the legal surrounding that
affect marketing activities. It protects the
right and interest of marketers, consumer,
employees and the society. It consist of
business law related with marketing
activities , courts of law and law
administration.
2) Economic forces:
Economic forces refers to economic
surrounding that influence marketing
.activities. They consist of economic
parameters that provide the climate for
survival and growth of marketing. They
ultimately influence resource allocation,
cost, profit, and consumer spending. It
consist of:
I) Economic System: ( free market
economy, Centrally planned economy,
Mixed economy)
Ii) Economic policies: ( Monetary policies,
fiscal policies and industrial policies.)
Iii) Economic condition: ( Business cycle,
Income, Inflation, Natural resources,
Globalization)
3) Socio- Cultural Forces:
Social forces refers to social surrounding
that influence marketing. It consist of
factor related to human relationship.
There are many social factors that affect
the marketing activities they are given
below:
I) Demographics: (Concerned with human
population and its distribution)
Population size, population growth, Age
mix, Urbanization, Distribution and
Migration.
Ii) Social Institution: ( Family, reference
group, Social class)
Iii) Social changes and life style.
4) Cultural forces:
(Knowledge, customs, traditions, values,
religion, language, symbols , works, art
and architecture which is created by
society.)
It include Attitudes, values and beliefs and
types of product.
5) Technological Forces:
Technology refers to the means or method
of converting resources into product. It
consist of skill, methods , system and
equipment. Technology influence
marketing by bringing changes in jobs,
skill, life style, product, production
methods and processes. Hence
technology directly influence the
marketing activities.
Chapter-3

Marketing Segmention and Targeting

Define marketing segmention and


describes the requirements for effective
market segmention.
A market is regarded as a group of
customers. Market aims at satisfying the
demand of customers. Market consist of
customers needs and wants, purchasing
power and willingness to spend. Product
and exchange relationship. Generally a
segment consist of group of customer who
have similar need and characteristcs.
Marketing segmention is the process of
dividing the total hetrogenious market into
different homogenious market which
consist similar needs and characteristcs.
According to Philip kotler: Marketing
segmentation is the act of identifying and
profiling distinct groups of buyer who differ
in their needs and preferences.
Generally marketing segmention implies
the following factors:

I) Division of total market into groups.


Ii) The group should be large enough for
marketing purpose.
Iii) The group should be homogenious in
preferences.
Iv) The customer in a group should have
similar needs and characterstics.

The following factors are the requirements


for effective marketing segmentation

A) Measurable: The size, needs,


purchasing power, and characteristcs of
the customers in the segment should be
measurable. If the needs or size can be
measured in terms of number, the sales
and profit can be easily calculated.

B) divisible: There must be clear-cut basis


for dividing customers into homogenious
group. Each segment.......
Should be homogenious in customers
need but should be distinct with other
segments. This means the segmenation
will be effective if each segment can be
easily differentiable.

C) Acessible: The segment should be


accessible through market institutions
such as distribution channels, advertising
media and sales force. There should be
middleman to distribute the product and
should be reachable and serviceable.

D) substaintial: the segment should be


substantial, it should be large enough in
terms of customer and profit potential.

E) Actionable: Segmentation should be


actionable, organization should be able to
formulate and implement the differrent
marketing mixes.

Beinifit of marketing Segmentation

I) Identification of Market oppertunities


Ii) effective use of market resources.
Iii) Competitive response
Iv) Market specialization
V) Environmental Adaption.
Vi) Objective Achievement.

Descibes the process of market


segmentation.

The market segmentation process consist


of several step they are given below:

1) Market Survey: Market is the total sum


of current and future demand of any
product. Thus segmentation requires
investigation of the total market
characterstics. Market survey should be
conducted in order to collect information
regarding:

- customers needs and characterstics


- Product attributes desired by
customers.
- Brand awareness by customers.
- Product usage patterns and usage
rate by customers.
- Customer attitudes toward the
product
- Preference patterns of customers.

2) Identification of Market segments: the


various information collected from market
survey is analyzed detally focusing on
customers needs, and their
characteristics. Then needs are gathered
in a homogenious group. Each
homogenious group is called market
segment. Factor affecting product demand
are classified into major and minor factor.
Cluster analysis is used for the purpose of
segment identification.

3) Segment profiling: In this process the


variables for segmentation are identified.
They can be geographic, demographic,
psychographic and behavioral, According
to the types of market. Each segment is
profiled in terms of similarities in demand
and characterstics of customer groups.
The process ultimetly help in the selection
process.

4) Segment evaluation/ Selection:


Organization cannot fulfill all the demnad
of customers, so organization select one
or more segment after their careful
evaluatiohn. The chossen segment
becomes the target market. Market
segmentaion should be done periodically
to cope with environmental changes.The
following factors are taken into account
while selecting and evaluating the
segment.

I) segment attractiveness in terms of size,


growth, profit, competiton,
technology,customer loyalty, risk.

Ii) Organizational objectives and


resources.
Iii) segment relation and co-operation

Iv) Ethical consideration in terms of


enviromental and social well being.
V) government policies and laws.
Vi) Market coverage desired.

5) Product positioning: product


positioning is the new thinking in
marketing. It is concerned with making
organizations brand differs in relation to
its competitors brand in the mind of target
customers. It is an attempt to create a
brand image in the min d of customers,
which provides competitive advantage to
the producers and target customer.
Product positioning makes the product
differentiation meaningful. It begins with
the product brand name. Product
positioning is based on the following
variables:

Attributes: size, colour, taste.


Price: High, medium, low or superior
quality.
Technology: Manual, automatic,
computerized, robotized.
Service: per sale, during sale, after sale
service.
Competition: Better than competitor,
cheaper maintenance.
Use: many uses of the product.
Benefit: End benefit from purchase like
health, beauty, prestige etc.
Category: leader in the product class.

Evaluation of market segment (


IQ)

The factor that should be considered for


segment evaluation are given below:

1) Segment Attractiveness: The following


characterstics determines the segment
attractiveness:

I) Size and growth: The size of total


demand should be large as much as
possible for the segment and it should
have potential for market growth.

Ii) Profitability: The segment should be


attractive in terms of long term profitability.
Iii) Competition: The level of competition is
another factor that should be considered
before selecting segment. The strength
and weakness of existing competitiors and
potential competitiors should be evaluated
carefully.

Iv) technology: the segment should be


evaluated in terms of technological
requirement. If the segment requires new
and advance technology there will be
more expenses for those technology.

V) Customer loyalty: If the customers are


loyal to other products of competitor and
there is very little chance of shifting the
brand then the segment can be very
difficulet to choose. This means such
segment can be evaluated as lower
attractive.

Vi) Risks: the risk of investment in the


segment should be evaluated. Lower risk
make the segment attractive.
2) Organizational Objectives and
resources: The segment must be
evaluated in terms of organizational
objectives and its resources. The segment
should be consistent with the
organizations long term objectives. The
segments attractiveness should be
matched with the availability of human as
well as non- human resources. The
organization should possess requisite skill
and resource to succeed in the segment.

3) Segment relation: Segment


interrelationship and segment co
operation are other important varables to
evaluate the segment. Organization
should pay attention to segment
interrelationship in terms of cost,
performance and technology not only that
the possibilities for inter segment co-
operation should also be evaluated to
improve overall organizational
performance.
4) Ethical Consideration: Business
activities should be ethical. It should be
carefully considered for well being of the
customers and entire society. Before
selecting segment, it should be carefully
considered about environmental concern
to be paid by business.
Chapter-4

Marketing Information System

Define MKIS .

Information is the proocessed data derived through data analysis.


Organization need information to respond to environmental changes as
well as to make decision. So in order to collect updated, reliable
information regularly, organization need to design and use an effective
marketing information system (MKIS). Thus a MKIS is a unified system
of interrelated parts to provide information support to achieve
marketing objectives. It consist of input- processing- output and
feedback components.

According to Philip Kotler MKIS consist of people, equipment and


procedures to gather, sort,analyze, evaluate, and distribute needed,
timely and accurate information to marketing decision makers.

The MKIS components are given below:

I) Input: It consist of data generated from internal and external sources.


Ii) Processing: It consist of activities related to data sorting, analysis,
evaluation, storage, retrieval and dissemination.

Iii) Output: It consist of regular and special report needed for marketing
decision making.
Iv) Feedback: It provides information to redesign input and processing
to meet changing need of marketing.

Features of MKIS

I) Inter-related components: MKIS is a set of inter-related components


which consist of people, equipment and procedures. Information and
communication technology is used to deliver it.

Ii) Processing: MKIS collects, processes, analyses, stores, retrieves, and


disseminates information for decision making and control.

Iii) Timeline: MKIS provides right information to right people at right


time.

Iv) Accuracy: It provides accurate and reliable information.

V) Consistency: It provides consistent information based on same


definition, assumption and time period.

Vi) Accessibility: The information is easily available to authorized


person through communication technology.

Importance of Marketing Information System (IQ)

A) Marketing Planning: MKIS provides updated, reliable, and accurate


information which helps marketing to predetermine future courses of
action. It also helps to set objectives and standrads of performance for
marketing planning. Marketing oppertunities can be identified and
strategies can be formulated in order to achieve them.

B) Marketing performance Implementation: MKIS helps to analyze


various information such as sales trends, stage of product life cycle,
pricing and non- pricing strategies of compititors, changing preference
of consumer. Marketer design and impliment marketing mix on the basis
of such information.

C) Marketing control: MKIS facilitates continuous monitoring of


marketing performance for timely corrective action. Deviation between
standard and actual performance can be analysed and corrected with the
environmental dynamics.
D) Marketing Coverage: MKIS provides information to increase market
coverage. It can be single or multiple segment coverage. Marketing
information also helps to create demand.

E) Environmental Adaptation: The major function of MKIS is to provide


information about changing needs and preference, innovation and
external changes. This helps organization to identify oppertunities and
face threats. New startegies can be made to adapt in changing
environment.

F) Marketing Decision making: Marketing decision making is based on


marketing information provided by MKIS. Its help them to understand
the problem, identify and evaluate alternatives and to make a choice,
through which the decision can be easily made.

Components of Marketing Information System

1) Internal Record System: Every organization keep records of all


transectional and non- transectional data such as: order, shipping,
annual report, sales trends, financial statement etc. The system which
keep such internal record is called internal record system. They consit of:

I) Customer related records: It includes order, invoices, shipping


documents, inventory records, payment records, customer demands and
their profile.

Ii) Sales Report: Sales reports submitted by sales force provide


information about performance of brands, sales trends and customers
expectation.

Iii) Other Report: It includes annual reports, finanicial statement, audit


report, and other special report as per requirement which provede useful
information.

2) Marketing Intelligence System: Marketing intelligence system is a set


of procedures and sources used by managers to obtain everyday
information about pertinent developments in....
The marketing environment. It provides information about everyday
happening in the marketing environment. The information derived from
MIS are collected from the following sources:
I) Marketing Managers: They read books, newspaper, trade publication
and even talk with customers, suppliers, distributors to gather
information.

Ii) Sales force: They find and report new development in the market
place and motivate the organization for marketing intilligence purpose.

Iii) Middlemen: They handle several product and usually know in


advance about competitors move.

Iv) Specialists: They are appointed to gather marketing intillegence.

V) Outsourcing: Commercial detectives are hired to gather specific


information. Data can be purchased from research firm.

Vi) Marketing Information section: It is a special section which scan the


environment and surf internet to gather information.

3) Decision Support System: A DSS is a procedure that allows a manager


to interact with data and methods of analysis to gather, analyze, and
interpret information. It helps marketing manager s to make better
decision. It does not collect information rather it stores, analyses and
synthesizes the collected information. It has the following components:

I) Data Bank: It stores different types of data collected from varous


sources such as internal reports, market intelligence and market
research which are about cfustomers, competitors, environmental trends
and organizations performance.

Ii) Method Bank: DSS consist of set of different statistical tools ranging
from simple procedure to sophiscated methods. They help mangers to
analyze the information and make decision. It consist of following
staistical tool:

- Multiple Regression
- Discriminate Analysis
- Factor Analysis
- Cluster Analysis
- Conjoint Analysis
- Multidimensioanal Scaling.
Iii) Model Bank: It consist of interrelationship between different
variables that help decision makers to understand, predict and control
marketing problems. Model bank consist of :

Model

- Markov model
- Queuing Model
- New product pretest Models
- Sales Response Models

Optimization Routinee

- Differential Calculus
- Mathematical programming
- Game theory
- Heuristics

4) Marketing Research: Marketing research is the systamatic design,


collection, analysis, and reporting of data and finding relevant to a
specific marketing situation facing the company. It helps organization to
resolve the marketing proble through different alternatives. It is a tool
for identifying market oppertunities and to minimize threats.

The features of marketing research are given below:

I) Systamatic: Marketing research is a systamatic process which is


properly planned and implimanted

Ii) Objective: It is objecticve in collecting, analyzing, interpreting and


reporting data.

Iii) Problem oriented: It deals with specific marketing problems.

Iv) Decision Making: Marketing research ultimetely aimed at helping the


marketing managers for decision making.

(note: features may not be included for the answer)

Very important question


Define marketing research , describes the various process include in
marketing research.

Marketing research is the systamatic design, collection, analysis, and


reporting of data and finding relevant to a specific marketing situation
facing the company. It helps organization to resolve the marketing
proble through different alternatives. It is a tool for identifying market
oppertunities and to minimize threats.

Process of Marketing research:

1) Define the problem: Problem provides the foundation to marketing


research, it determines the scope of research. Thus it should be defined
carefully neither too broadly nor too narrowly. It should be defined in
such a way, in which the researcher can find out the core of the problem
easily and the problem should not be mixed with symtoms. For example:
If the sales of Nepali garments decline due to high price, sales decline is a
symtoms and high price is the problem. Problem identification can be
based on:

A) Literature review
B) Experience survey: Conversation with qualified persons inside and
outside the organization who possess knowledge and experience.

C) Case Study: Exploratory study of the organization to identify the


problem.

D) brainstroming: Ideas are generated spontaneously through group


creativity. Free wheeling is encouraged but criticism is disallowed.

2) Stating Research Objectives: Objectives of research is the important


phenomenon which specify the information required for research. Thus
it should be stated clearly. They also determine the research design.
Objecitve should follow from the problem defined for research
hypothesis can be posed.

3) Developing Research plan: It is the research methodology for


gathering the needed information. It deals with the decision on:

A) Data Sources: It may be the primary and secondary data. Secondary


data are collected earlier for other purpose. It includes internal report of
organization, book, government publication etc. While primary data
refers to data collected for the first time for a specific purpose.

B) Research Method; They are used for collecting primary data: they
are:

- Survey: It involves direct questioning of people to gather facts,


opinion and other information.
- Observation: It is the process of collecting information by watching
the action of people on setting.
- Focus group research: It is the method of collecting information by
gathering of small group of 6 to 10 people who are invited to spend a few
hours with a skilled moderator to discuss the research problem.
- Experiment: It is the method of collecting data by lab or field
experiment.
- Consumer panel: In such method a panel of group of people serves as
subject of survey.

C) Research Instrutment: It may be the questionnaire or Mechanical


instruments.

D) Sampling plan: Sampling is the process of selecting small units from


the total population for collecting data. It includes sampling unit, sample
size and sampling procedure.

E) Contact Method: This is the method of contact to respondent. This


can be mail method, interview or computer.

F) Analytical tool: It include the statical tools such as mean, regression,


correlation, variance for analyzing information.

4) Collection of Needed data: Collection of primary data involves field


study. Skilled personnel are used to collect data. Information are
collected with recording the response of interview questionnaires. The
information should be usable and relevant.
5) Analysis of Data: It involves coding, tabulating and
statical analysis to analyze and interpret the
collected data objectively. Now a days computer
technology is used to interpret the data effectively.

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