MARKET RESEARCH and Invetigation 9

7/31/2019 MARKET RESEARCH and Invetigation 9

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MARKET RESEARCH

Market research is a continuous process for gatheringdata on product .It is a systematic, objective collectionand analysis of data about a particular target market,competition, and the business practices that surroundthem-plus the analysis of that data to make acquisitiondecisions.

This requires one to collect and analyze informationabout the market that subsequently can be used todetermine whether the need can be met by productsor services available in the commercial market;whether commercial practices regarding customizing,modifying products or tailoring services are availableto meet customer needs


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MARKET RESEARCH

Market research is essential to optimize the potential use ofcommercial items, commercial services, to meet agency needs

Market research helps to find

What does the customer need? Who is the target audience and how much can you find out about

them? What is the competition? Are there any gaps in the market? Would the product be acceptable in the market?


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Marketing research characteristics

First, marketing research is systematic. Thus systematicplanning is required at all the stages of the marketingresearch process. The procedures followed at eachstage are methodologically sound, well documented,and, as much as possible, planned in advance.

Marketing research uses the scientific method in thatdata are collected and analyzed to test prior notions orhypotheses. Experts in marketing research have shownthat studies featuring multiple and often competinghypotheses yield more meaningful results than those

featuring only one dominant hypothesis.


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Marketing research is objective. Itattempts to provide accurate informationthat reflects a true state of affairs. It should

be conducted impartially. While researchis always influenced by the researcher'sresearch philosophy, it should be free from

the personal or political biases of theresearcher or the management.


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Organizations engage in marketing research for tworeasons: (1) to identify and (2) solve marketingproblems. This distinction serves as a basis forclassifying marketing research into problem identification

research and problem solving research. Problem identification research is undertaken to help

identify problems which are, perhaps, not apparent onthe surface and yet exist or are likely to arise in thefuture like company image, market characteristics, sales

analysis, short-range forecasting, long range forecasting,and business trends research. Research of this typeprovides information about the marketing environmentand helps diagnose a problem


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Marketing Research is of use to the

following:-

Producers To know about his product potential in the market vis-

-vis the total product; New Products; Various brands; Pricing; Market Structures and selection of product strategy,

etc.


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Business and Government Marketing Research helps

businesses and government in focusing attention on thecomplex nature of problems faced by them. For example:Determination of Gross National Product; Price indices, andper capita income;Expenditure levels and budgeting;

Agricultural Pricing;The economic policies of Government; andOperational and planning problems of business andindustry.

Market Research Agencies Marketing Research is being usedextensively by professionals to help conducting various studiesin Marketing Research. Most prominent agencies being:-


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Defining the problem and research

objective

The first step is marketing manager andmarketing researcher to define the problemvery carefully and agree on the research

objective. Managers must work at defining the problem

neither too broadly not too narrowly


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Developing the research plan The second stage of marketing research is to develop

the most efficient plan for gathering the neededinformation. It should be known the cost of theresearch plan before approving it.

Designing a research plan includes the decision takenfrom following:

1. Data sourcePrimary data, secondary data.

2. Research approachPrimary data can be collected from four ways

Observational researchFocus group researchSurvey researchExperimental research


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3 Research instruments

(questionnaires, mechanical instruments)

4 Sampling plan

sampling unitsampling size

sampling procedure

5. Contact method

Telephone interviewing

personal interviewing


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Collect the information

The data collection phase of marketing researchis generally the most expensive and the mostprone to error. In the case of surveys major

problem arises some respondents will not be athome an must be reconnected or replaced.Other respondents will refuse to co-operate. stillothers will be dishonest answers. Finally some

interviews will be biased or dishonest. Data collection method is rapidly improving due

to computers and telecommunication.


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Analyze the information

The next to last step in the marketingresearch process is to extract the pertinentfinding from the collected data. The research

tabulates the data and develops thefrequency distribution. Averages are alsocomputed for variables.


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Present the findings

As the last step of marketing research theresearcher presents his/her findings torelevant parties.


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SIX PARTS OF A MARKET

INVESTIGATION

We have divided the market investigation into six parts:summary of market surveillance, identification ofsources, survey of suppliers, checking of references(other users and buyers), evaluation, and

documentation.


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Summary of Surveillance

Part of the value of market surveillance is thatyou are better prepared to do an efficientmarket investigation in the limited time you

have when faced with an acquisition. The firstpart of a market investigation is to review andsummarize what you already know from yourmarket surveillance. The market investigationcan then be targeted to answer specificquestions and to fill in gaps in information.


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Identification of Sources

The market analyst must identify potential suppliersof acceptable commercial items or services. Thepotential sources will be asked to participate in amarket survey and furnish information on theirproducts or services. In some industries or for someitems, everyone may know the suppliers and theirproducts or services. In that case, little effort isrequired to generate a list of potential suppliers.

Other, more diverse industries require considerableeffort to identify sources of acceptable products.


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Survey of Suppliers

The survey of suppliers may consist of a fewtelephone calls, or it may be a comprehensivequestionnaire sent to a group of potential suppliers,or it may involve the evaluation of product samples.If you decide to use a mail survey, a cover letter orintroduction explaining the survey goals and theexpected size of the acquisition and a follow-upcontact may increase the response rate. Personalcontact is best because it provides an opportunity toanswer any questions about the survey. The follow-up step is particularly important for encouragingsuppliers who have not participated in defense workto respond.


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Checking of References (Current

Users)

The goal of this part of the market investigation is todetermine the actual performance of an item or service.In its response to the supplier's survey, the suppliershould provide names of current customers. Because

market investigation is not a source-selection process, itis not necessary to examine every product thatpotentially meets the requirement. A sample ofrepresentative products or suppliers may be adequate.The goal is to verify whether a product or service

performs as described in information gathered during theearlier part of the investigation. Also consider reviewinginform-ation on past performance and product qualityfrom reliable sources like government data bases,consumer protection organizations, or user groups.


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Evaluation

The fifth part of a market investigation is to evaluateall the information acquired during the investigationand determine whether a commercial acquisition isfeasible. The result may be a determination that it isnot feasible; that commercial products or servicesmeet the need as stated; that commercial productsor services can meet the need if certainrequirements in the original statement are relaxed;

or that commercial products or services could bemodified to meet the requirement.


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Documentation

The documentation of the results of the marketinvestigation is a critical aspect of the process. FARPart 10 states that agencies "should document theresults of market research in a manner appropriateto the size and complexity of the acquisition." Theresults should also be documented in a mannerappropriate to how they might be used in the future.That is, the type and amount of information you

keep should in part be based on how you expect itwill be used in the future

MARKET RESEARCH and Invetigation 9

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