Introduction to Business Research

A ‘Scientific research study’ is a systematic, controlled empirical & critical investigation of hypothetical propositions about presumed relations.

It provides information that may assist business managers to recognize & react to business opportunities & problems.

Redefining Business Research

A systematic and scientific procedure of data collection, compilation, analysis, interpretation and implication pertaining to any business problem

The function that links the consumer, the customer, and public to the marketer through

INFORMATION

Business Research

It is an important tool to collect information of business for decision making in any business activities.

The information must have certain characteristics: Accurate Current Sufficient Availability Relevant

Business Research

Used to identify and define business opportunities and problems

Generate, refine, and evaluate business performance

Monitor business performance

Improve understanding of business as a process

Business Research

But now the scenario has changed & business research is needed due to - Physical separation Intermediaries Job specialization Size of the market Complexity of the market Need for more information

Business Research It aims at collecting the data from

customer & market, analyzes it & provides relevant & required information.

So its functions can be divided as Description Explanation Prediction & Evaluation of data and Provide accurate information

It supplies the necessary inputs for Planning for future activity Control of business operations in

the present Evaluation of business results

Business Research

It is highly practiced in American companies or abroad

In India it is still not applied in all companies

In India the companies uses the marketing research mainly for - Estimating the market potential, analyzing the market share, characteristics or sale

It is also used for forecasting the sale & understanding the business trends

Basic and Applied Research

BasicTo verify the acceptability of a given theory

Performance behaviourPavlov’ classic conditioning

AppliedTo answer the questions about some specific

business problemsProduct failure causes Higher attrition rate causes

Classification of Marketing Research

Problem-Identification Research Research undertaken to help identify problems which are

not necessarily apparent on the surface and yet exist or are likely to arise in the future. Examples: market potential, market share, image, market characteristics, sales analysis, forecasting, and trends research.

Problem-Solving Research Research undertaken to help solve specific marketing

problems. Examples: segmentation, product, pricing, promotion, and distribution research.

A Classification of Marketing Research

Marketing Research

Problem Identification Research

Market Potential ResearchMarket Share ResearchMarket Characteristics ResearchSales Analysis ResearchForecasting ResearchBusiness Trends Research

Segmentation Research

Product Research

Pricing Research

Promotion Research

Distribution Research

Problem Solving Research

Problem-Solving Research

Determine the basis of segmentation

Establish market potential and responsiveness for varioussegments

Select target markets

Create lifestyle profiles:demography, media, and product image characteristics

SEGMENTATION RESEARCH

Test concept

Determine optimal product design

Package tests

Product modification

Brand positioning and repositioning

Test marketing

Control score tests

PRODUCT RESEARCH

Problem-Solving Research

PRICING RESEARCH

Pricing policies

Importance of price in brand selection

Product line pricing

Price elasticity of demand

Initiating and responding to price changes $ALE

PROMOTIONAL RESEARCH

Optimal promotional budget

Sales promotion relationship

Optimal promotional mix

Copy decisions

Media decisions

Creative advertising testing

Evaluation of advertising effectiveness

Claim substantiation

Problem-Solving Research

DISTRIBUTION RESEARCH

Determine…

Types of distribution

Attitudes of channel members

Intensity of wholesale & resale coverage

Channel margins

Location of retail and wholesale outlets

Business Research Process

Step 1: Defining the Problem

Step 2: Developing an Approach to the Problem

Step 3: Formulating a Research Design

Step 4: Doing Field Work or Collecting Data

Step 5: Preparing and Analyzing Data

Step 6: Preparing and Presenting the Report

Business Research Process

The Role of Marketing Research

ControllableMarketing

• Product

• Pricing

• Promotion

• Distribution

VariablesMarketing Research

MarketingDecisionMaking

ProvidingInformation

AssessingInformationNeeds

Marketing Managers

• Market Segmentation

• Performance & Control

•Target Market Selection• Marketing Programs

UncontrollableEnvironmentalFactors

• Economy

• Technology

• Laws & Regulations

• Social & Cultural Factors

• Political Factors

• Consumers• Employees• Shareholders• Suppliers

Customer Groups

ClientNeeds Find Seek Plan Act

Solve Problem

Achieve Goal

How WeHelp

ClarifyDecisions

Research

Analysis

EvaluateInterpretFacilitate

Recommend

MarketPlanResearch

AdviseAssistExecution

Opportunity scan

Option generation

Refine options

Decision

Power Decisions’ Methodology

Strategy

A plan of action or policy designed to achieve a major or overall aim.

A long-term planning to achieve or to shape the future in right direction

Components of Strategy

‘Vision’Where you want to be?

Where you are right now?

Strategic Gap!!!

‘Mission’How you will reach there?

Objectives

Goal

Vision

A statement which describes ‘Where do you want to be in future?’

An aspirational description of what an organization would like to achieve or accomplish in the mid-term or long-term future. It is intended to serves as a clear guide for choosing current and future courses of action.

It provide you a direction to move ahead.

Mission

Mission statement describes ‘ How will you achieve your vision?’

A sentence describing a company's function, markets and competitive advantages; a short written statement of your business goals and philosophies

Objectives

To accomplish your mission statement, when you divide your path into some smaller steps, those steps are known as objectives.

A specific result that  person or system aims to achieve within a time frame and with available resources. In general, objectives are more specific and easier to measure than goals.

Objectives are basic tools that underlie all planning and strategic activities. They serve as the basis for creating policy and evaluating performance.

Goal

The end result of an objective

An observable and measurable end result having one or more objectives to be achieved within a more or less fixed timeframe.

Tactics

The way to plan out a strategy

Means by which a strategy is carried out; planned and ad hoc activities meant to deal with the demands of the moment, and to move from one milestone to other in pursuit of the overall goal(s).

In an organization, strategy is decided by the board of directors, and tactics by the department heads for implementation by the junior officers and employees.

U.S Organization Headquarters Website U.S. Global Non-U.S. 2007

Top 15 U.S. Marketing Research Firms

1 The Nielsen Co. New York nielsen.com $2,173.0 $4,220.0 48.5%

2 IMS Health Inc. Norwalk, Conn. imshealth.com 801.0 2,192.6 63.5

3 Kantar Group* Fairfield, Conn. kantargroup.com 526.8 1,551.4 66.0

4 Westat Inc. Rockville, MD westat.com 467.8 467.8 —

5 IRI Chicago infores.com 441.0 702.0 37.2

6 TNS U.S. New York tnsglobal.com 379.8 2,137.2 82.2

7 Arbitron Inc. New York arbitron.com 338.5 352.1 3.9

8 GfK AG USANuremberg,

Germany gfk.com 319.7 1,603.00 80.1

9 Ipsos New York ipsos-na.com 281.2 1,270.30 77.9

10 Synovate London synovate.com 250.4 867.0 71.1

11 Maritz Research Fenton, Mo.maritzresearch.co

m 187.4 223.3 16.1

12 J.D. Power and Associates*Westlake Village,

Calif. jdpower.com 184.5 260.5 29.2

13 Harris Interactive Inc. Rochester, N.Y.harrisinteractive.c

om 161.0 227.0 29.1

14 The NPD Group Inc.Port Washington,

N.Y. npd.com 160.4 211.1 24.0

15

Opinion Research/ Guideline Group Omaha, Neb. infousa.com 124.7 206.7 39.7

16 Opinion Research Corp. Princeton, N.J.opinionresearch.c

om 97.5 179.5 45.7

Major Indian Marketing Research Firms

1 The Nielsen Co.

2 Ad Point

3 Advantage Strategies Pvt. Ltd.

4 B D B India

5 Cherry International

6 Data Search P Ltd.

7 Ameya Dyechem, India P LTd.

8 Genpact

9 Delphi Research Services

10 Research Services Bureau

11 Ugam Soultions

12 Melt Data Business Solution

13 Norma

14 IMRB International

15 GMRB

16 TNS

A C Nielsen in.nielsen.com A C Nielsen is one of the global leader in market research, information and analysis

Ad Point adpointindia.com Ad Point is a Rajkot-Gujarat based Ad Agency that provide all kinds of services

related to media and promotion

Advanced Strategist Pvt. Ltd.

astrategies.com Established in India in 2001 as India’s premier knowledge based emerging market

development company

NOrma normagroup.com NORMA, the most trusted research house in Kerala

Center for Research and Consultancy

crckochi.com Centre for Research & Consultancy (CR&C ) is the pioneer in Marketing Research and

Consultancy

Delphi delphiindia.com Delphi is a "specialist" research organization.

Market Pulsemarketpulseindia.com Market Pulse is a reputed marketing research

firm, with headquarters in New Delhi, India. They are providing incisive market and

consumer insight to businesses in India, other countries in Asia and USA.

Marketing Research Suppliers & Services

Internal suppliers External suppliers

Full-service suppliers Syndicated servicesStandardized servicesCustomized servicesInternet services

Limited-service suppliers Field servicesFocus groups and qualitative services Technical and analytical services Other services

Selected Marketing Research Career Descriptions Vice President of Marketing Research

The senior position in marketing research. The vice president (VP) is responsible for the entire marketing research operation of the company and serves on the top management team. This person sets the objectives and goals of the marketing research department.

Research Director Also a senior position. The research director has the general responsibility for the

development and execution of all the marketing research projects. Assistant Director of Research

Serves as an administrative assistant to the director and supervises some of the other marketing research staff members.

(Senior) Project Manager Has overall responsibility for design, implementation, and management of research

projects. Statistician/Data Processing Specialist

Serves as an expert on theory and application of statistical techniques. Responsibilities include experimental design, data processing, and analysis.

Selected Marketing Research Career Descriptions

Vice President of Marketing Research

• Part of company’s top management team

• Directs company’s entire market research

operation

• Sets the goals & objectives of the

marketing research department

Research Director

• Also part of senior management

• Heads the development and execution of all research projects

Assistant Director of Research

• Administrative assistant to director

• Supervises research staff members

Senior Project Manager• Responsible for design, implementation, & research

projects

Careers in Marketing Research

Career opportunities are available with marketing research firms (e.g., AC Nielsen, Burke)

Careers in business and non-business firms and agencies with in-house marketing research departments (e.g., Procter & Gamble, Coca-Cola, the Federal Trade Commission, United States Census Bureau)

Advertising agencies (e.g., BBDO International, Ogilvy & Mather, J. Walter Thompson)

Positions: VP of marketing research, research director/assistant director, project manager, field work director, statistician/data processing specialist, senior/junior analyst, and supervisor

A Sample of Marketing Research Jobs

Preparation for a Career in Marketing ResearchTake all the marketing courses you can.

Take courses in statistics and quantitative methods.

Acquire Internet and computer skills. Knowledge of programming languages is an added asset.

Take courses in psychology and consumer behavior.

Acquire effective written and verbal communication skills.

Think creatively. Creativity and common sense command a premium in marketing research.

InternationalAAPOR : American Association for Public Opinion Research (www.aapor.org)

AMA : American Marketing Association (www.ama.org)

ARF : The Advertising Research Foundation (www.amic.com/arf)

CASRO : The Council of American Survey Research Organizations

(www.casro.org)

MRA : Marketing Research Association (www.mra-net.org)

QRCA : Qualitative Research Consultants Association (www.qrca.org)

RIC : Research Industry Coalition (www.researchindustry.org)

Marketing Research Associations Online

International

ESOMAR: European Society for Opinion and Marketing Research (www.esomar.nl)

MRS: The Market Research Society (UK) (www.marketresearch.org.uk)

MRSA: The Market Research Society of Australia (www.mrsa.com.au)

PMRS: The Professional Marketing Research Society (Canada) (www.pmrs-aprm.com)

Marketing Research Associations Online