Marketing Research
Marketing Research
1. Internal Records:
The Company can collect information through its internal records
consisting of sales data, customer database, product database, financial
data, operations data, etc.
3. Marketing Research:
The Marketing Research is the systematic collection, organization,
analysis and interpretation of the primary or the secondary data to find
out the solutions to the marketing problems.Several Companies conduct
marketing research to analyze the marketing environment comprising of
changes in the customer’s tastes and preferences, competitor’s
strategies, the scope of new product launch, etc. by applying several
statistical tools. In order to conduct the market research, the data is to be
collected that can be either primary data (the first-hand data) or the
secondary data (second-hand data, available in books, magazines,
research reports, journals, etc.)
The secondary data are publicly available, but the primary data is to be
collected by the researcher through certain methods such as
questionnaires, personal interviews, surveys, seminars, etc.
Meaning : MIS means to collect, analyze and supply Marketing Research (MR) is a
relevant marketing information to the systematic process of collecting and
marketing managers. The marketing analyzing information to solve a
managers use this information for taking specific marketing problem.
effective marketing decisions. It is a
permanent and continuous process.
Purpose : The main purpose of MIS is to provide However, the main purpose of
relevant information to marketing managers Marketing Research (MR) is to solve
and enable them to make effective a specific marketing problem.
marketing decisions.
Scope : The scope of MIS is wide. Marketing The scope of Marketing Research
Research (MR) is one of its components. It (MR) is narrow. It is one small part of
is not only used to solve problems but also MIS. It solves a specific present
helps to prevent problems in the future. marketing problem.
Nature : MIS is more nonspecific or general in Marketing Research (MR) is more
nature. It can solve many types of specific or particular in nature. At one
marketing problems. time, it can only solve a single type of
marketing problem.
Reports : MIS gives four types of reports namely, Marketing Research (MR) provides
plan-reports, periodic-reports, triggered- only one report called ‘MR Report.’
reports and demand reports.
Orientation Orientation of MIS is more future-oriented However, the orientation of
: when compared to MR. Marketing Research (MR) is more
past and present one when compared
to MIS. It concentrates more on
earlier and latest information. It uses
this information to solve a current
marketing problem.
Problems : MIS deals with and attempts to solve many Marketing Research (MR) only deals
different marketing problems at one time. with a single marketing problem at
For this, it collects, stores, analyzes and one time. It doesn't solve multiple
supplies relevant market information to the marketing problems simultaneously.
marketing managers.
Data : In MIS, the data is collected more In Marketing Research (MR), the data
frequently, usually almost daily. This is a is not collected as frequently as MIS.
must for every company. It is collected on a required basis.
Operation : MIS is a permanent and continuous system. Marketing Research (MR) is not a
Here, the inflow of market information continuous system. Here, data is
never stops. Data is constantly collected collected only when a company faces
and stored for further analysis. It is a specific marketing problem. It has a
properly analyzed, studied and well- starting and ending point.
organized before supplying to the
marketing managers. MIS has a starting but
no ending point.
Computers MIS is heavily based on the use of Unlike MIS, Marketing Research
: computers. Here, computing technologies (MR) hardly makes use of computers.
are widely used to ease and facilitate data It uses computers only for analyzing
collection, its storage, analysis, retrieval some information and is not entirely
and supply of relevant information to based on computing technologies.
marketing managers of the company.
What is Research Design?
Research design is the framework of research methods and techniques
chosen by a researcher to conduct a study. The design allows researchers to
sharpen the research methods suitable for the subject matter and set up
their studies for success.
Data collection
Measurement
Data Analysis
The research problem an organization faces will determine the design, not
vice-versa. The design phase of a study determines which tools to use and
how they are used.
Neutrality: When you set up your study, you may have to make
assumptions about the data you expect to collect. The results
projected in the research should be free from research bias and
neutral. Understand opinions about the final evaluated scores and
conclusions from multiple individuals and consider those who agree
with the results.
Reliability: With regularly conducted research, the researcher expects
similar results every time. You’ll only be able to reach the desired
results if your design is reliable. Your plan should indicate how to
form research questions to ensure the standard of results.
Validity: There are multiple measuring tools available. However, the
only correct measuring tools are those which help a researcher in
gauging results according to the objective of the research.
The questionnaire developed from this design will then be valid.
Generalization: The outcome of your design should apply to a
population and not just a restricted sample. A generalized method
implies that your survey can be conducted on any part of a
population with similar accuracy.
Qualitative research
Qualitative research determines relationships between collected data and
observations based on mathematical calculations. Statistical methods can
prove or disprove theories related to a naturally existing phenomenon.
Researchers rely on qualitative observation research methods that conclude
“why” a particular theory exists and “what” respondents have to say about it.
Quantitative research
Quantitative research is for cases where statistical conclusions to collect
actionable insights are essential. Numbers provide a better perspective for
making critical business decisions. Quantitative research methods are
necessary for the growth of any organization. Insights drawn from complex
numerical data and analysis prove to be highly effective when making
decisions about the business’s future.
Usually uses small sample sizes. Usually uses larger sample sizes.
Qualitative Research Quantitative Research
You can further break down the types of research design into five
categories:
This practical guide can help. While it is important to use the right
method in research, it is equally important to avoid making serious
mistakes that can result in negative results.
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Frame Errors
Sample Frame Error – Frame error occurs when incorrect
demographics are used to select a sample. The flaw in the old
structure occurred in the 1936 presidential election between
Roosevelt and Landon. The sample framework was based on vehicle
registration and telephone references. In 1936, most Americans did
not own a car or a telephone, and those who did have a large
Republican population. The results mistakenly predicted the
Republic’s victory.
Survey Non-response Errors
Non-response errors pertain to errors that occur due to differences
between people that participate in surveys versus people who do
not participate in surveys. Non-response errors happen when the
respondents who complete the interview are somehow
systematically different compared to those who were unable to be
contacted and those who chose not to participate.
Non-response Errors
Non-response errors happen owing to failure to garner thorough
information on all units in the selected survey. Non-response error
affect survey results in two ways. First, there is shrinkage in sample
size or in the amount of information collected in response to a
particular question results in larger standard errors.
Secondly, a prejudice is introduced to the degree that the
distribution of some characteristics of non-respondents varies from
the distribution of the respondents within a selected survey. Your
respondents should accurately represent the number of people you
want to emulate. If non-respondents are not evenly distributed to
everyone, you will not have the right sample.
There are two ways in which an unanswered survey can take place:
Measurement errors are often underlying in the data and are only
unravelled when the measurement process is repeated or responses
are compared to error-free measurements. If repeated
measurements are collated by the same measurement process,
systematic errors may remain concealed. Several analytical
techniques can be utilised to account for measurement errors in
data analysis and inference, such as structural equation modelling
instrumental variables and errors-in-variables modelling.
Ethical Implications
Non-Specific
Research Limitations
What kind of tools are you using for research? Is the data relevant
and updated? Does your research leverage the most trusted and
reliable surveys? As a researcher, you must define relevant
techniques and instruments in detail. Consider explaining how
you are using them to address the research problem or question.
Poor Sampling
levels of Measurements
There are four different scales of measurement. The data can be defined as being one of the
four scales. The four types of scales are:
Nominal Scale
Ordinal Scale
Interval Scale
Ratio Scale
Nominal Scale
A nominal scale is the 1st level of measurement scale in which the numbers serve as “tags” or
“labels” to classify or identify the objects. A nominal scale usually deals with the non-
numeric variables or the numbers that do not have any value.
M- Male
F- Female
Here, the variables are used as tags, and the answer to this question should be either M or F.
Ordinal Scale
The ordinal scale is the 2nd level of measurement that reports the ordering and ranking of data
without establishing the degree of variation between them. Ordinal represents the “order.”
Ordinal data is known as qualitative data or categorical data. It can be grouped, named and
also ranked.
Very often
Often
Not often
Not at all
Totally agree
Agree
Neutral
Disagree
Totally disagree
Interval Scale
The interval scale is the 3rd level of measurement scale. It is defined as a quantitative
measurement scale in which the difference between the two variables is meaningful. In other
words, the variables are measured in an exact manner, not as in a relative way in which the
presence of zero is arbitrary.
The interval scale is quantitative as it can quantify the difference between the values
It allows calculating the mean and median of the variables
To understand the difference between the variables, you can subtract the values between
the variables
The interval scale is the preferred scale in Statistics as it helps to assign any numerical values
to arbitrary assessment such as feelings, calendar types, etc.
Example:
Likert Scale
Net Promoter Score (NPS)
Bipolar Matrix Table
Ratio Scale
The ratio scale is the 4th level of measurement scale, which is quantitative. It is a type of
variable measurement scale. It allows researchers to compare the differences or intervals. The
ratio scale has a unique feature. It possesses the character of the origin or zero points.