MMS-semester-3-Marketing-Research-Analysis-munotes

Page 1

1 1
INTRODUCTION TO MARKETING
RESEARCH
Unit Structures
1.0 Objectives
1.1 Introduction
1.2 Need & Scope of Marketing Research
1.3 Structure of Marketing Research Studies
1.4 Marketing Research Process
1.5 Summary
1.6 Questions
1.7 References
1.0 OBJECTIVES
 To study the importance and scope of Marketing Research.
 To understand the Marketing Information System.
 To understand the Structure of Marketing Research Studies.
 To get a detailed p erspective on Marketing Research Process.
1.1 INTRODUCTION
The methodical collection, logging, and analysis of pertinent market data
for corporate activity planning and growth is marketing research in
contemporary marketing operations. It serves as a tool for making
informed choices about the marketing of goods and services. It is a
method based on science for addressing issues in marketing such as
buying, selling, promoting sales, advertising, and distribution networks,
among others.
Definition:
Philip Kotler - “Marketing Research is the systematic problem analysis,
model building and fact finding for the purpose of improved decision
making and control in the marketing of goods and services.”
Clarifying the connection and distinction between marketing research and
marketing information systems is crucial before moving on (MIS). MIS
includes any information that is produced by marketing research from
internal, external, and Marketing Intelligence Agencies (Marketing
Information System). munotes.in

Page 2

Marketing Research & Analysis
2 A collection of structure d processes known as Marketing Information
Systems (MIS) are used to continuously produce, analyze, store, and
distribute information to marketing decision makers.
1. MIS information is continuously produced, whereas marketing
research is conducted with a spe cific goal in mind and information is
generated at the time it is conducted.
2. While marketing research is an ad -hoc system, MIS is a continuous
entity.
3. MIS information is more structured and stricter than marketing
research information because it is not use d for general purposes.
For making strategic market decisions, marketing research is crucial. It
aids a business in determining the market's prospects and limitations,
designing, and putting into practise market strategies, and assessing the
success of mar keting tactics. As the sellers need to know more about their
ultimate consumers yet are typically far away from those consumers, it is a
rising and commonly used business activity. The link between marketing
decision -makers and the markets in which they op erate is marketing
research. Several key ideas for conducting marketing research are included
to produce knowledge that is helpful to managers. These guidelines
concern the relevance and significance of data, the value of cautiously and
clearly stating obj ectives, and the need to avoid undertaking research to
justify decisions.
1.2 NEED AND SCOPE OF MARKETING RESEARCH
Need for Marketing Research:

Figure 1.1
munotes.in

Page 3

Introduction to Marketing
Research
3 1. Finding market issues and opportunities:
It aids in finding new market potential for both new and existing items. It
offers data on market share, the competitive landscape, customer
satisfaction scores, sales results, and distribution channels. This aids
businesses in problem -solving.
2. Creating market strategies:
Markets are no longer regional in today's world. They now exist
everywhere. Manufacturers have trouble managing distribution channels
and getting in touch with customers. The level of competition is similar.
It's challenging to foresee consumer needs. The task of market
segmentation is ch allenging in such expansive marketplaces. In addition to
aiding in the formulation and execution of market strategies, marketing
research provides marketing information.
3. Determining the requirements and desires of the consumer:
Marketing has turned cust omer centric. However, mass distribution
requires middlemen for large -scale production. There is a gap in the
information since several methods of distribution are so common.
Marketing research aids in the collection of consumer data from organised
distrib ution research and aids in the customer -oriented development of
marketing.
4. For an efficient communication mix:
Communication is essential in a time when mass marketing is being
replaced by micromarketing. Promotional research is used in marketing
resear ch to examine the media mix, the efficacy of advertising, and
integrated communication methods. A company's product can be
efficiently promoted in the market by conducting research on such topics.
5. Increasing sales efforts:
Marketing research is used to assess and analyse a company's performance
within a market. The effectiveness of a sales force is also studied. It
facilitates locating sales territory. Such data aids businesses in detecting
sales -related weak spots. It also looks at different strategies for product
distribution.
6. For sales forecasting:
maintaining optimal inventory levels is the most difficult duty for any
production manager. Production is started, nonetheless, in anticipation of
demand. So, a sales prediction based on science is necess ary. Utilizing the
market share approach, sales force estimate method, and jury method,
marketing research aids in sales forecasting. Fixing sales targets and
marketing strategies may also benefit from this.

munotes.in

Page 4

Marketing Research & Analysis
4 7. Rejuvenating existing brands:
Marketing res earch is done to analyse and determine the current brand
position. It determines a brand's recall value. It investigates the possibility
for expanding brands or renaming already existing ones. Building brand
loyalty is marketing's primary goal. Research in marketing aids in the
creation of strategies for promoting and sustaining brand loyalty.
8. To ensure a smooth launch of new products:
Marketing research aids in evaluating new products on a modest scale in
one or two markets. This aids in determining con sumer reaction to new
products and the creation of an effective marketing mix. It exposes the
issues that customers have with brand -new products. As a result, it
manages the risk associated with launching a new product.
9. Assess export prospects:
The gro wth of communication and transportation has aided in the
globalisation and digitalization of trade. This has aided in accelerating the
expansion of global marketplaces. Conducting a market analysis for export
benefits from marketing research. It gathers da ta about the country's
current marketing environment. It identifies export potentials by gathering
consumer data from many nations.
10. Managerial decision -making:
By providing decision -makers with pertinent, current, and accurate data,
marketing research plays a crucial part in the decision -making processes.
To understand client demands and wants, the state of the market, technical
advancements, and the level of competition, managers need up -to-date
information.
Scope of Marketing Research:
The areas or c omponents that are covered or researched under marketing
research are referred to as its scope. In other words, it suggests possible
applications for marketing research. Practically every aspect of marketing
management is addressed through marketing resear ch. Its breadth is
extensive and all -encompassing. munotes.in

Page 5

Introduction to Marketing
Research
5

Figure 1.2
1. Product Research:
Products include both goods and services. All topics pertaining to a
company's products are covered by this section of marketing research.
It investigates and resolves issues with products like:
 Determining uses for the current items.
 Researching the features and performance of products.
 Researching the physical and psychological characteristics of products.
 Analysis of competitive products in comparison.
 Identifying iss ues that customers have with the products.
 Determining the need to create new items.
 Study of the product life cycle and consumer adoption.
 Analysis of branding, packaging, labelling, after -sales services, and
commenting.
 Evaluation of a new product's mark etability, including market testing.
2. Research on Market:
Consumers and the market are the focus of this field of marketing
research. It investigates the traits and make -up of the target markets. Both
current and future markets are covered.
This includes ,
 Identifying and choosing the target market.
 Researching the wants and needs of the target market.
 Analysing territorial sales opportunities and potential.
 Establishing sales territories and quotas. munotes.in

Page 6

Marketing Research & Analysis
6  Conducting market share analyses.
 Researching the relati ve profitability of various markets.
 Estimating the demand for a new product.
3. Research on Sales Methods and Policies:
Particularly, this branch of marketing research is concerned with the
investigation and evaluation of sales -related activities.
The following are just examples of the many topics within this heading:
 Reviewing and analysing sales data.
 Examining sales territory in terms of products, order sizes, timing,
terms, and techniques.
 Research on salespeople's productivity and activities.
 Assessing current selling strategies.
 Management of the sales force, including its size, salary, training, and
control.
 Research on the effects of different promotional methods, including
advertising, personal selling, sales promotion, and publicity tools on
sales.
 Research on sales department organisation structure.
4. Research on Advertising:
One of the effective strategies for market promotion is advertising. Most
of the promotional expenditure goes towards advertising efforts.
Therefore, it is essential to carry out research on many advertising -related
topics.
This includes:
 Comparative analysis of various promotion -related elements.
 Research on the purpose of advertising, the use of media, the choice of
media, the advertising message, theme, and copy.
 Government limits on advertising.
 Social aspects of advertising.
 The role of advertising in various stages of the life cycle of a product.
 Studies on the expenses and contribution of advertising or assessing
advertising effectiveness.
5. Research on Pricing :
A key component of the marketing mix is price. Price is very important in
developing and impoverished nations. Achieving marketing objectives can
be positively impacted by using appropriate pricing policies and
techniques. It is evident that cost has con tinued to be a significant factor in
purchasing decisions.

munotes.in

Page 7

Introduction to Marketing
Research
7 This includes:
• Research on pricing goals.
• Research on the efficacy of pricing policies and strategies.
• Research on various price -setting techniques.
• Quality vs. value analyses.
• New product and pricing policies
• Research on the effects of seasonal, allowance, and discount variables.
• Pricing methods for various product life cycle stages.
6. Research on Distribution:
Distribution has a special function in modern marketing to determi ne a
product's success. By creating a suitable distribution network, a marketer
can help to increase overall consumer happiness. The physical distribution
and the channel of dissemination are two crucial elements of this research.
This includes:
 Evaluating the contribution of distribution choices to the
accomplishment of marketing objectives.
 Comparative analysis of direct and indirect distribution.
 Distribution in physical form and supporting services.
 Research into various distribution channels.
 Study of pertinent variables influencing channel decision or selection.
 Comparison of corporate distribution tactics with those of rivals.
 Relevance of online marketing.
 Distribution -related legal difficulties.
7. Research on Business Environment and Corporate Resp onsibility:
This topic does not directly address any marketing issues. Such research is
carried out to gather and analyse facts pertaining to the general business
environment. The area study aids managers in developing strategies for
both the existing and future markets. In respect to the corporate
environment, it also aids in evaluating the marketing department's
strengths and weaknesses. The analysis of numerous economic, social, and
cultural elements is crucial in the fast -paced corporate climate of toda y.
Like this, corporate accountability needs to be examined.
Main aspects covered under this include:
 A business study that considers factors such as demand, gross domestic
product, per capita income, trade and industry, economic growth rate,
fiscal and mo netary policies, and export -import regulations.
 Business forecasting for the short - and long -term.
 Technical considerations. munotes.in

Page 8

Marketing Research & Analysis
8  The availability and calibre of useful resources.
 The effects of laws and other regulations.
 Research on consumer rights and consumerism.
 Values from society and culture that influence company strategy.
 Environmental imbalance, business social responsibility, and pollution.
The major users of Marketing Research are:

Figure 1.3
1. Consumer:
It should go without saying that the consumer is king in any setting where
there is competition. In the end, consumers are the source of all sales
revenue. Therefore, understanding the customer behaviour of a target
market is essential for every company. Marketing research identifies the
needs of consumers for goods and services as well as the variables that
influence those needs.
2. Market Intermediaries:
The producers and the purchasers at the end of the supply chain are
connected through market intermediaries. A channel must be used to
introduce a product to consumers and get it in front of them. A company
can choose the best kind of channel with the use of marketing research.
3. Company Concerns:
Every business concern wants to increase both its market share and
profitability to strength en its position in the market. When making munotes.in

Page 9

Introduction to Marketing
Research
9 decisions in these situations, marketing research is a crucial and highly
effective instrument.
4. Marketing research companies:
There are many specialist companies that undertake marketing research on
various mar ket segments, both existing and potential. For performing
specialised research, they have experts. The parties involved may delegate
the pertinent projects to these research agencies. They create research
papers for their clients based on their findings.
5. Government:
The government also conducts research in a variety of fields. Consider
price indices. income per capita, etc.
6. Producers:
A market that is competitive is always being inundated with new goods,
brands, and alternatives. Cutthroat competitio n is a constant threat. He
discovers that the methods that were successful in the past are no longer
effective. Here, Market Research aids in the situational analysis.
1.3 STRUCTURE OF MARKETING STUDIES
The field of science known as marketing studies is focused on developing
a deeper understanding of customer requirements in the context of
business markets and identifying solutions to marketing issues from a
micro -research perspective. Scientific methodologies are used in
marketing studies to take into ac count the real -world business -related
marketing difficulties. This entails taking into account the methods of
marketing studies at the university level. A marketing scientist with a
strong instrumental -technical background is, however, also trained to
cond uct critical research into all types of marketing phenomena under
intellectual directions like interdisciplinarity, praxis, theoretical openness,
historical depth, systemic, and dialectic for advancing macro -critical
perspective of marketing and consumer r esearch through the adoption of
macro and critical approaches.
munotes.in

Page 10

Marketing Research & Analysis
10

Source: rubygarage.org
When performing primary research, one must either gather the necessary
data individually or engage a business or professional.
Primary research techniques are separat ed into two groups:
• Quantitative: Gathering numbers for statistical analysis (in the case of a
driving app, this could be preferred wait times, subscription prices, trip
costs, etc.)
The most widely used quantitative techniques for product market researc h
include:
I. Questionnaires: Using a survey platform like SurveyMonkey or
Google Forms, you may ask clients pertinent questions to better
understand your target demographic.
II. Surveys: Utilizing forms and other data collection techniques to learn
more about a target clientele. Based on gathered data, a researcher
creates a statistical overview to investigate trends. munotes.in

Page 11

Introduction to Marketing
Research
11 III. One-on-one interviews: In these conversations, which are typically
held over the phone or through messaging services, the interviewer
asks each par ticipant a specific question to compile their responses and
produce a statistical report.
Qualitative: Gathering data on what influences certain customer
choices, actions, attitudes, requirements, and preferences (like
preferred car models, notification types, etc. for the driving app.)
Qualitative research methods can include:
I. Focus groups: These are interviews conducted in one session with
many participants. You may see the distinctions between people in
other groups, such as your different consumer kinds, by facilitating a
debate between participants.

II. In-depth interviews:Extensive interviews conducted in person, over the
phone, through video chat services, or both, typically videotaped for
further study. To identify important personas and comprehend how
they interact with a product or service you are going to develop, a
researcher typically conducts interviews with up to twelve people.

III. Observations: Observing participants' conduct in hypothetical
scenarios to provide trustworthy insights about real -world customer
behaviour.

IV. Mystery Shopping: Investigating the customer experience by
employing customers who aren't known to the personnel of the store.
To uncover details of the purchasing experience, mystery shoppers
adhere to the plan established by th e researcher.

V. Video research: Customers are interviewed on camera while they are
in the specified place or remotely using specialist platforms like
Voxpopme.

VI. Diary Studies: Information gathering through participant logging of
daily activities, encounters , or other parts of the study
Secondary research relies on information that has previously been
gathered by others, such as studies, reports, and historical data. This is
sometimes referred to as desk research.
 Review publicly available information about y our research topic.

For Example: Published market studies, official statistics, white papers,
analyst reports, surveys that include findings from competitors, interviews,
reports from specialised marketing agencies.

 Examine commercial information like newsletters, pamphlets,
magazines, trade publications, newspapers, and other paid sources. munotes.in

Page 12

Marketing Research & Analysis
12
 Conduct research through educational sources like libraries, studies
conducted in colleges and universities, coursework, etc.
One of the most well -liked and affordab le methods of gathering secondary
data is through data that is readily available online. However, in order to
obtain precise, significant results, firms must only take into account
genuine, reliable sources.
1.4 MARKETING RESEARCH PROCESS
The successive steps of the marketing research process enable the efforts
to be concentrated on comprehending and resolving client concerns.
Marketing research is just as valuable as the data it gathers. Because of
this, it's essential to follow a step -by-step procedure that ultimately results
in the collection of reliable data that can be used to make decisions. The
road map to success can be found in the steps below.
This process comprises a few related, interconnected tasks that influence
one another. The many steps i nvolved in the marketing research process
are as follows:

Figure: 1.4
1. Formulating the Research Problem
The initial step in the research process is to formulate a problem. In many
cases, a management issue serves as the starting point for study. It is
necessary to comprehend this issue, identify its root, and design solutions.
Most management issues, meanwhile, are not necessarily simple to study.
A research challenge must first be converted from a management problem.
munotes.in

Page 13

Introduction to Marketing
Research
13 Research question must be prepared after the research problem is
established. A research question provides the study's focus. A hypothesis
or set of hypotheses can be developed from the research topic to direct the
investigation. The link between two or more variables should be described
in a hypothesis, and the hypothesis should have obvious consequences for
testing the relationship.
 Clearly outline your study objectives. This will enable you to do
efficient research. It will aid decision -makers in assessing your
proposal. It's essential t o have attainable goals.

 Review the problem's environment or context to find the
environmental factors that will influence the study activity.

 Examine the Problem's Nature - The complexity of a research problem
depends on the number of variables involved and how they are related.
As a researcher, it will be easier to create a remedy if you are able to
comprehend the nature of the issue.

 Identify the Relationships Between the Variables - Find out which
variable influences the problem's solution, how much each variable is
under your control, and how they work together.

 The Consequences of an Alternative Course of Action - Every course
of action has repercussions. An important task in the research process
is anticipating and describing the repercussions of different actions.
2. Method of Inquiry:
The accepted research paradigm is the scientific method. It gives you the
chance to start with what you already know and move forward objectively.
The following steps are part of the scientific method: -
 Create a pr oblem.
 Develop a hypothesis.
 Make predictions considering the hypothesis.
 Test the hypothesis.
 Carry out the test.
 Analyse the result.
The nomenclature is the same as what is used for the various stages of
research. However, there are minute variation s in how the stages are
carried out. In contrast to the research process, which might be subjective,
the scientific approach is objective. Quantitative research that has an
objective focus is dependent on unbiased analysis.
3.Research Method:
Research usin g experimental methods and research using non -
experimental methods are the two main methodologies that can be utilised
to address any research subject. The benefit of experimental research is munotes.in

Page 14

Marketing Research & Analysis
14 that it allows for the manipulation of one or more variables tha t affect the
process being used, as well as the control of unimportant variables. While
observation is permitted in non -experimental research, action is not. Just
keep an eye out and report anything you find.
4. Research Design:
A blueprint or framework fo r carrying out the study and gathering data is
called a research design. It is described as the precise techniques and steps
taken to gather the required data.
5. Data Collection Techniques:
There are several methods for gathering data. Interviews and observation
are two crucial techniques to take into account.
Interviews are necessary to pose questions and get answers. Face -to-face,
postal, telephone, email, and online interviews are frequently used for
research communication. Survey research refers to this broad range of
research methods. Both experimental and non -experimental research uses
these strategies.
Observation is another method of data collection. Future purchasing
decisions can be predicted by observing past or present behaviour of a
person or corporation. Analysing corporate records and reading studies
from outside sources are two methods for gathering data on prior
behaviour.
6. Sample Design:
Rarely will the marketing research project look at the complete
population. Utilizing a sample, a more manageable yet accurate
representation of the larger population, is more practicable. To design the
sample, the following questions must be addressed:
 Which base population would the sample be drawn from?
 How is the sample selection process carried ou t?
 How large was the sample?
We have a base for the sample once it is evident which population is
relevant. We will be able to draw conclusions about a larger population as
a result. Probability sampling and non -probability sampling are the two
ways to cho ose a sample from a population. The probability technique
depends on selecting a representative sample of the entire bigger
population at random. Non -probability is based in part on the
investigator's judgement and frequently uses convenience samples or ot her
non-probability -based sampling techniques.
Choosing the right sample size is the last step in the sample design
process. Making decisions about cost and accuracy is a crucial step.
Larger samples typically have lower sampling error and higher accuracy,
but they are more expensive. munotes.in

Page 15

Introduction to Marketing
Research
15 7. Data Collection:
This step of the process may need a sizable workforce and a sizeable piece
of the money, depending on the method of data collecting. Using a data
collection agency may be necessary for personal (face -to-face) and
telephone interviews (field service). Internet surveys can be finished in
days rather than weeks or months, need less staff, and are less expensive.
8. Analysis and Interpretation
Data analysis must be done correctly if it is to be of any benefit. T he types
of information one collects, and the kinds of measures employed
determine the efficiency of different analysis procedures. The choice of
analytic techniques should be made prior to this stage because they are
dependent on the data gathering.
9. Re search Report:
The research report serves as the process's conclusion. This report will
contain all the details, including a precise account of the research
methodology, findings, conclusions, and suggested next steps. The report
ought to give the decision -maker all the data they require to comprehend
the project. Additionally, it must be written in clear, simple terms. Finding
the right balance between thoroughness and conciseness is crucial.
1.5 SUMMARY
 Marketing research concerns itself with almost each activity of
marketing management. Research on Business Environment and
Corporate Responsibility is an important component of marketing
research.

 The study of the business environment helps manager formulate
strategies for the current and the future market as well as assess strengths
and weaknesses of marketing department in relation to Business
Environment.

 Main aspects covered include analysis of demand, demand, per
capita income, trade and industry, economic growth rate, fiscal monetary
policies, and export -import policy. Marketing research locates the
consumer requirements of goods and services and the factors upon which
they depend.

 Scientific methodologies are used in marketing studies to take into
account the real -world business -related marketing difficulties. A
marketing scientist with a strong instrumental -technical background is,
however, also trained to conduct critical research into all types of
marketing phenomena under intellectual directions like interdisciplinarity,
praxis, historical dept h, and dialectic. munotes.in

Page 16

Marketing Research & Analysis
16  Observation is an attempt to observe participants' conduct in
hypothetical scenarios to provide trustworthy insights about real -world
behaviour.

 Data collection requires a sizable workforce and a sizeable piece of
money. Analysis and int erpretation must be done correctly, and the choice
of analytic techniques should be made prior to this stage. Research report
should contain all the details, including a precise account of the research
methodology, findings, conclusions, and suggested next steps.

 A research question must be prepared after the research problem is
established, and a hypothesis or set of hypotheses should be developed
from the research topic to direct the investigation.

 To ensure efficient research, it is important to clearl y outline
objectives, review the problem's environment or context, examine the
problem's nature, identify the relationships between the variables, and
anticipate and describe the repercussions of different actions. The accepted
research paradigm is the sci entific method, which involves creating a
problem, developing a hypothesis, making predictions, testing the
hypothesis, carrying out the test, analysing the result, and designing a
research design.















munotes.in

Page 17

Introduction to Marketing
Research

17
Source: managementstudyguide.com CASE STUDY Zomato’s new deep discounting strategy Abstract One of the top food service aggregators in India, Zomato, got into a fight with some of its restaurant partners over the practise of giving customers large discounts. On August 15, 2019, hundreds of restaurants affiliated For Reference: For Reference: munotes.in

Page 18

Marketing Research & Analysis
18 with the National Restaurant Association of India (NRAI) started a logout
campaign and removed their listings from FSA platforms like Zomato,
EazyDiner, Nearbuy, Magicpin, and Dineout. They claimed that the
aggregators had distorted the food service industry through predatory
pricing and aggressive discounting, which hurt the restaurants' core value
proposition and bottom line. Particularly Zomato faced harsh criticism
because, as of August 2019, it has 6,500 restaurant partners and 1.1
million customers in India for its premium subscription -based dining
service Zomato Gold (ZG).Around 2,500 eateries unlogged from the ZG
service as part of the campaign. Deepinder Goyal, co -founder and CEO of
Zomato, encouraged restaurants to halt the logo ut campaign for the benefit
of customers. He modified the ZG programme and acknowledged that
Zomato had made several errors. NRAI, however, declined to accept the
revised plan, claiming that the corrective actions would not address the
primary problem of d eep discounts. Goyal then declared that he will
uphold the modifications. Even food delivery was added to the ZG service
by him. Time was quickly running out for Goyal, though, as Zomato was
in danger of being surpassed by competitors. In order to serve th e interests
of all parties involved, he would have to find a rapid solution.

Introduction

In response to what they deemed to be unsustainable deep discounting
practises, over 300 restaurants affiliated with the National Restaurant
Association of India (NRAI) launched a Logout campaign and removed
themselves from the platforms of some major food service aggregators
(FSAs) on August 15, 2019, including Zomato, EazyDiner, Nearbuy,
Magicpin, and Dineout. The campaign intended to free the restaurant
business from aggregators who, it was said, had affected restaurants'
primary value proposition and bo ttom lines by distorting the food service
industry through aggressive discounting and predatory pricing.One of the
largest food delivery startups in India, Zomato, was one of the FSAs. As
of August 2019, ZG had 1.1 million customers in India and 6,500
restaurant partners, making it one of the top subscription -based eating out
services. The ZG service was logged out by almost 2500 eateries.

Background Note

Two Bain & Co. workers from Gurgaon, Deepinder Goyal and Pankaj
Chaddah (Chaddah), co -founded Zomato in 2008 under the name
Foodiebay.com. Goyal got the idea for an online restaurant information
service after observing their coworkers waiting in line at the workplace
cafeteria each day to browse through a file of restaurant menu cards to buy
food. The men u cards were scanned and entered an intranet website. Soon,
many workers began utilising the service. After seeing the high volume of
visitors, Goyal and Chaddah made their website public in 2008.By the end
of 2008, the Delhi NCR restaurant directory on th e website foodiebay.com
had grown to be the largest in the area. Foodiebay changed its name to
Zomato in 2010.
munotes.in

Page 19

Introduction to Marketing
Research
19 Excerpts

ZOMATO GOLD
Zomato's losses soared by more than three times to Rs 4.41 billion in the
2016 fiscal year. Concerns about the company's significant investments in
online meal delivery services were raised by the company's extremely
high cash burn, which was estimated to be US$4.2 million on average
each month. In November 2017, Zomato introduced Zomato Gold (ZG), a
premium, subscription -based dining out programme, in an effort to reduce
losses and gain market share in India's dine -out sector. Customers may
receive free meals (1+1) and drinks (2+2) for every order they placed at
specific partner restaurants thanks to the special membership p rogramme.

ZOMATO IN THE SOUP
According to a report by NRAI, the food service industry in India was
valued at about Rs 4,238 billion as of March 2019. (See Exhibit II). And a
large portion of this expansion was credited to the development of food
delivery services. The number of orders placed on these ordering apps
climbed from approximately 1.7 million per day in 2018 to roughly 2.2
million per day in 2019, according to consultancy firm Redseer. To draw
customers and increase the volume of orders placed on their platforms,
major aggregators provided steep discounts.

OLD WINE IN A NEW BOTTLE?
As the Logout campaign continued unabated, Goyal declared that Zomato
was willing to make changes to the ZG programme to fix any issues. In
the sake of patrons, he urg ed restaurant owners to put an end to the
campaign. He claimed that ZG had attracted bargain hunters who were
harming various sectors of the restaurant business.

THE DEADLOCK CONTINUES
Analysts believed that the logout could weaken Zomato's company,
particularly since 12% of its revenues came from ZG, even as restaurants
continued to remain locked out. By the end of 2019, the programme was
allegedly projected to generate around $25 million in revenue,
underscoring the value of the service to the business.

EXHIBITS
Exhibit I: Zomato Revenues and Expenses (FY18 and FY19)
Exhibit II: Growth Projection of Organised and Unorganised Segments in
Food Service
Exhibit III: Some Major Food Aggregators in India
Exhibit IV: Funding and Investor details of Some Major Food Aggregators
in India




munotes.in

Page 20

Marketing Research & Analysis
20 1.6 QUESTIONS
1. What do you mean by Marketing Research? Explain its importance.
2. Explain the Structure of Marketing Research Studies.
3. Explain Marketing Information System.
4. Difference Between MIS (Marketing Information System) and
Marketing Research.
5. Elaborate the Marketing Research Process.
6. Short Notes:
I. MIS (Marketing Information System)
II. Marketing Research Process
7. Multiple Choice Questions:
a. A blueprint or framework for carrying out the study and gathering
data is called a ________.
(Research Design, Experimental Research, Sample Design)

b. _______ are interviews conducted in one session with many
participants.
(Focus Groups, Surveys, Observations)

c. ________are Information gathering through participant logging of
daily activities, encounters, or other parts of the study.
(Mystery Shopping, Diary Studies, Video Research)

d. ________relies on information that has previously been gathered by
others, such as studies, reports, and historical data.
(First Hand, One -on-one interviews, Secondary Research)

e. The benefit of _________is that it allows for the manipulation of
one or more variables that affect the process being used, as well as the
control of unimportant variables.
(Experimental Research, Quantitative Research, Historical Research)

f. __________is based in part on the investigator's judgement and
frequently uses convenience samples or other non -probability -based
sampling techniques.
(Cluster, Non -Probability, Snowball)

g. __________is used in marketing research to e xamine the media mix,
the efficacy of advertising, and integrated communication methods.
(Promotional Research, Marketing Research, Qualitative Research)

munotes.in

Page 21

Introduction to Marketing
Research
21 1.7 REFERENCES
 https://www.managementstudyguide.com
 https://www.yourarticlelibrary.com
 https://www.investopedia.com
 https://rubygarage.org
 https://www.socialmediatoday.com
 Marketing Research for managers -3rd Edition by Sunny Crounch &
Mathew Housden.
A Butterworth -Heinemann Title.
 Marketing Research (Macmillan) - Rajendra Nargundkar.



munotes.in

Page 22

22 2
QUALITATIVE ANALYSIS
Unit Structure
2.0 Objectives
2.1 Introduction
2.2 Brainstorming
2.3 Focus Groups
2.4 In depth Interviews
2.5 Projective Techniques
2.6 Attitude and Motivation
2.7 Concept Under Tests
2.8 Summary
2.9 Questions
2.10 References
2.0 OBJECTIVE:
 To understand the fundamentals of Qualitative Research.
 To study the concept of Brainstorming and its importance.
 To understand Projective Technique and its importance.
 To understand the concept of In -depth Interviews.
 To understand the concept under tests.
2.1 INTRODUCTION
Meaning
Focus groups, in -depth interviews, and other cutting -edge research
techniques are all significantly incorporated into the open -ended question
(conversational) research process known as qualitative analysis. It is based
on a small but highly valid sample of responders, often between 6 and 10.
It is the investigation of the elements influencing consumer behaviour in a
particular market. The goal of q ualitative research, for instance, might be
to understand consumers' purchasing motivations in the commercial
market, such as what they think of a product and why they believe that
way. A common focus of qualitative research is on very small sample
sizes, which enables in -depth examinations of the subjects. munotes.in

Page 23

Qualitative Analysis
23
This approach contrasts from quantitative research in that the latter
generally employs statistics to respond to binary queries, such as how
many or how much, whereas the former concentrates on data coll ection.
Are most customers satisfied with this product, for instance, are questions
that quantitative research can answer. and "How many sales have we made
of this product?" But with qualitative research, questions like "why do
buyers like the product" or "what circumstances drove the sales" might be
asked. The samples' "importance" and the lack of a clearly defined
questionnaire permit free and in -depth discussion and examination of
subjects, while the tiny size allows for cost savings. Usually, the
interv iewer or market researcher chooses where to take the conversation.
Understanding people's viewpoints, feelings towards the issue, and the
driving forces behind those feelings is essential to understanding how they
behave.
Types of Qualitative Research Meth ods
Source: questionpro.com
Qualitative research techniques are made to help you understand how a
target audience behaves and thinks about a particular subject. Numerous
qualitative research techniques, including in -depth interviews, focus
groups, ethnog raphic studies, content analyses, and case study studies, are
frequently employed.
Results from qualitative methods are more descriptive, and inferences may
be made from the collected data relatively simply.
It was the social and behavioural sciences that first developed qualitative
research techniques. Our environment is more complex now, making it
challenging to comprehend how people think and view the world. That is munotes.in

Page 24

Marketing Research & Analysis
24 easier to grasp because online qualitative research methodologies are more
conversational and descriptive.
1. One -On-One Interview: One of the most popular qualitative research
techniques is conducting in -depth interviews. One respondent is
interviewed one -on-one in a personal setting. This approach is entirely
conversational and provides chan ces to probe the respondent for specific
information.
One benefit of this
approach is that it
gives you a fantastic
chance to collect
detailed information
about people's
beliefs and
motivations. If the
researcher is skilled
and knowledgeable,
asking the pr oper
questions can aid in the collection of relevant data. The researchers should
ask such follow -up questions that would assist them in gathering more
information if they should need more.
These interviews can be conducted in -person or over the phone and often
last anywhere from 30 minutes to two hours or longer. Face -to-face in -
depth interviews provide a better opportunity to interpret respondents'
body language and match their responses.
2. Focus groups: One more frequently employed qualitative research
technique for data collection is the focus group. A focus group typically
has six to ten participants who are members of your target market.Finding
the answers to the "why," "what," and "how" questions is the focus group's
major goal. Focus groups have the advantage that you do not always have
to contact with the group in person. Today, focus groups can be surveyed
online using a variety of devices, and responses can be gathered
instantly.Compared to other online qualitative research methodologies,
focus groups are an expensive method. They are typically employed to
clarify intricate procedures. When it comes to testing innovative ideas and
conducting market research on new products, this strategy is incredi bly
helpful.
3. Ethnographic Research: The most in -depth observational technique
for seeing individuals in their natural surroundings is ethnographic
study.With this approach, the researchers must adjust to the contexts of
their target audiences, which may be found everywhere from an
organisation to a metropolis or in a remote area. Here, geographic
restrictions may be a problem for gathering data.Understanding the
cultures, difficulties, motivations, and environments that exist is the goal
of this research design. Rather than depending solely on interviews and
discussions, you experience the natural settings. Due to the extensive
munotes.in

Page 25

Qualitative Analysis
25
observation and data collection that goes into this type of research method,
it might take anything from a few days to many years to complete. It is a
difficult and time -consuming strategy that exclusively relies on the
researcher's skill to be able to observe, interpret, and draw conclusions
from the data.
4. Case Study Research :
This has developed over the past few years into a n effective qualitative
research technique. It serves the purpose of defining an organisation or
other thing, as its
name implies.This
kind of research
methodology is
employed in a
variety of fields,
including education,
the social sciences,
and others. Ev en
though this approach
requires a full
understanding of the
data gathering techniques and inferring the data, it is one of the easiest
ways to conduct research.
Source: paperflite.com
5. Record Keeping: The data source for this strategy is already -existing,
trustworthy documents and other sources of information. New studies can
make advantage of these data. This is comparable to visiting a library. To
gather pertinent information that will probably be em ployed in the
research, one might peruse books and other reference materials there.
6. Method of Observation: Qualitative observation is a research method
that employs subjective methodologies to collect data or information on a
regular basis. Since the pr imary objective of qualitative observation is to
obtain information or data using subjective approaches, The main purpose
of qualitative observation is to compare quality differences.
The five main senses —sight, smell, touch, taste, and hearing —and how
they function are the topics of qualitative observation. This involves
attributes rather than measures or numbers.
Methods of Observations:

 Controlled Observations
 Naturalistic Observations
 Participant Observations

munotes.in

Page 26

Marketing Research & Analysis
26 Data Collection and Analysis
A. Gathering Q ualitative Data
Using qualitative data collection, we can examine decision -making
processes and get in -depth understanding by gathering information that is
not numerical. Such judgements should only be drawn after rigorous
analysis of the evidence, which s hould be comprehensive, rich, and
nuanced.
1. Whatever approach a researcher uses to gather qualitative data, one
thing is certain: the procedure will produce a lot of data. There are several
ways of gathering and storing the data in addition to the range of methods
available.

For instance , there will be handwritten notes or video tapes if the
qualitative data is gathered through focus groups or one -on-one
interviews. Before the data analysis process may start, any recordings need
be transcribed.

2. An experien ced researcher can often complete the transcription of an
interview's audio files in 8 to 10 hours, yielding 20 to 30 pages of
discussion. Many researchers also choose to keep distinct folders for the
recordings they acquire from various focus groups. This aids in separating
the data they have gathered.

3. Running notes, usually referred to as field notes, are useful for
keeping track of remarks, environmental contexts, environmental analyses,
nonverbal cues, etc. When transcribing audio recorded material, th ese filed
notes are beneficial and can be compared. Even though these notes are
typically casual, they should be protected in the same way as audio or
video tapes.
B. Qualitative Data Analysis
Analysing qualitative data from notes, movies, audio files, pho tographs,
and written materials. Text analysis is one of the most used techniques for
analysing qualitative data. In contrast to all other qualitative research
methodologies, text analysis involves decoding the words, actions, and
other behaviours of resear ch participants to examine their social lives.
The researchers assess the context in which the photographs are used and
make assumptions from them. Images are also used in this research study.
Text analysis using content provided on social media sites has been
extremely popular during the past ten years.



munotes.in

Page 27

Qualitative Analysis
27 Characteristics Of Qualitative Research Methods

Source: questionpro.com
 Data are typically gathered using qualitative research methodologies in
the location where participants are having issues or challenges. Real -
time data rarely require participants to leave their immediate
surroundings to gather information.

 Rather than relying just on one data source, qualitative researchers
generally collect data in several formats, such as interviews,
observa tions, and documents.

 By breaking down complex problems into clear, easily legible, and
understandable deductions, this form of research method aims to
resolve them.

 People might develop trust in the researcher because it's a more
conversational strategy , and the data gathered in this way is accurate
and unfiltered.
Case Study
Let's use the owner of a bookshop as an example. They are looking for
strategies to increase sales and consumer outreach. Interviews were
conducted with members of an online communi ty who were devoted
customers of the bookstore, and they provided responses to pertinent
questions. After the interview, it became clear that there weren't enough munotes.in

Page 28

Marketing Research & Analysis
28 books in the stores for kids or teenagers and that most of them were
appropriate for adults. The proprietor of the bookstore discovered the
flaws and the readers' sentiments by doing this qualitative investigation.
The proprietor of the bookstore may now stock books for all age groups
and increase both his sales and consumer outreach thanks to thi s research.
These illustrations of qualitative research methodology can be used as a
springboard for more quantitative research that offers solutions.
2.2 BRAINSTORMING
Meaning: Brainstorming is a qualitative research technique used to get as
many original and imaginative ideas from the participants as possible. It
may be part of a workshop, focus group, or unfocused group and may be
scheduled or unstructured.
Typically, brainst orming is a qualitative research technique used to get as
many original and creative ideas from the participants as feasible.
Additionally, brainstorming can be part of a workshop, a focus group, or
an unfocused group. It can either be structured or unstru ctured.
A facilitator or moderator may be present, depending on the format
selected, to draw out information from this activity. A researcher or
spectator can record all the ideas being generated in the absence of a
facilitator to analyse, shortlist, and draught the session's results.







munotes.in

Page 29

Qualitative Analysis
29 Advantages of Brainstorming:

Figure: 2.1
1. Contribution from Outside:
When brainstorming, everyone is free to provide ideas. It is difficult to
produce original ideas when you have the closest access to the issue.
When you involve others in the conversation to find novel approaches,
those who are less knowledgeable about the subject can speak freely about
thoughts about which they are thinking. The next element is vital because
not all ideas will be excellent.
2. Crea tion of Ideas:
Any suggestion does not need to stand alone. It is important to articulate
ideas even if they are not the ideal solutions because doing so might make
them more understandable to someone else. Idea building is based on the
idea that through e xchanging ideas, new ones are inspired, which triggers
a cascade of original concepts. During a brainstorming session, all ideas
must be given the chance to develop if idea building is to succeed. Sharing
will thus decline, decreasing the effectiveness of the session.
3. Destabilizes the Ordinary:
Another benefit of brainstorming meetings is breaking routine. There
might not be any overt issues with the way things are going right now.
Even so, a brainstorming session might be beneficial since it may bring t o
light adjustments you did not even realise you required for the project.

munotes.in

Page 30

Marketing Research & Analysis
30 4. Development of Lists:
One of the best parts of completing a brainstorming session is having a list
of ideas you may use and build upon in the future. Even if not all the ideas
are right away helpful, having a list may stimulate your creativity for
several weeks or even months following the session. At least one person
should be taking notes during every session to guarantee that every idea is
retained.
5. Cooperation:
When co -workers’ join in brainstorming sessions, their sense of
collaboration is strengthened and they have the opportunity to ask for help
from others. Team brainstorming sessions can create a sense of cohesion.
Individuals are necessary for brainstorming to occur.
6. Variety of Points of View:
Despite our best efforts, there are situations when assistance is necessary.
This does not indicate inability. It is more of an admission that not all
problems can be solved by one person, and that only some groups can be
accommodated. Choose people with a range of backgrounds, ages, and life
experiences from diverse departments. This will add original, intriguing,
and random ideas.
7. Helps prevent prejudices:
Only problem -solving might be more successful. However, when you
produce ideas on your own, you are unable to evaluate them against the
preconceived notions, biases, and attitudes that guide your thinking. By
incorporating people who have various perspectives on the world (and the
business challenges your company is fac ing), you increase your chances of
finding a solution. When the right people are involved, partiality is also
restrained. The presence of conflicting viewpoints inspires people to
examine novel concepts.
8.More ideas in less time:
Even if that volume can be reached sooner, you will uncover better (and
spectacular) ideas if you can develop them properly. During a productive
brainstorming session, a group may quickly produce hundreds of ideas,
and each one can spark dozens more. Using the group dynamic, each
member may pledge to finish a certain number of ideas within the allotted
amount of time. In any case, a group's output is far greater than anything a
single person could reasonably hope to accomplish.
9. Takes consideration of another's perspectives.
Take into account the fact that sharing ideas with others is at the heart of
brainstorming. As one might expect, switching between (and thinking
about) multiple responses at once can lead to a surge of fresh idea
connections. Another name for it is a popcorn share. As part of this group
problem -solving technique, one person offers an idea or solution. munotes.in

Page 31

Qualitative Analysis
31 Everyone then has a chance to elaborate on what has been said after that.
In the end, everyone feels as though they have equally filled in a gap in the
solution.
10. Promotes Compatibility and Buy -In
The fact that stronger relationships are created when teams work together
to solve problems is one of the best arguments for encouraging group
brainstorming in your organisation. Group ideation sessions provide
people the chance to work together on a project who might not otherwise
get the chance. By developing camaraderie, such interactions reduce
barriers and inspire everyone to view themselves as stakeholders. Because
they are stakeholders, participants have an inte rest in the outcome of the
brainstorming.
Disadvantages of Brainstorming

Figure: 2.2
Anyone who has attempted to assemble a team or coordinate the efforts of
numerous individuals to solve a problem should be aware of the
disadvantages of brainstorming. M aking decisions becomes increasingly
challenging. There will surely be disagreements. The opportunity to
engage excites some people more or less than others. Additionally, it can
result in more meetings being added to their usual work requirements but
hold onto optimism. There are methods for avoiding issues that develop
during brainstorming.
1. Leads to chaos:
Putting together a fresh team to take on a challenge is thrilling. But if you
are not careful, brainstorming with a group might result in rambling
conversations and open -ended debates that don't produce useful ideas. To munotes.in

Page 32

Marketing Research & Analysis
32 avoid this, it's crucial to draught a brief and an agenda before your first
group brainstorm. A brief description of the brainstorming's goal and
background information are given. When the goal is clear, participants are
more likely to stay on target. The strategy is simple. Answer questions
about the past for a short while. Give yourself a window of time (for
instance, 30 minutes) to produce the initial ideas, then put pressure on
yourself to develop. Review what follows.
2. Excessive Groupthink and Little Original Thought:
This is referred to as groupthink. Building off one another's ideas is
enjoyable until it isn't. Teams occasionally risk being excessively fixated
on a single idea a nd losing their unique sense of creativity. To counter
this, add a dash of honesty to the mixture. Make a place where people can
speak their minds without being interrupted. With this flexibility, people
won't become fixated on the first option and are mor e likely to voice their
true, unfiltered opinions. After the brainstorming session, the team spends
the remaining time concentrating on the most promising of these varied,
freeform ideas.
3. Less control of discourse:
This is referred to as groupthink. Bui lding off one another's ideas is
enjoyable until it is not. Teams occasionally risk being excessively fixated
on a single idea and losing their unique sense of creativity. To counter
this, add a dash of honesty to the mixture. Make a place where people can
speak their minds without being interrupted. With this flexibility, people
won't become fixated on the first option and are more likely to voice their
true, unfiltered opinions. After the brainstorming session, the team spends
the remaining time concentra ting on the most promising of these varied,
freeform ideas.
4.Remote Working Problems:
In the Covid -19 era, it is no longer practical to gather around a whiteboard
armed with stacks of post -It notes. While some managers fear that
brainstorming is becoming obsolete, innovative approaches are now
possible that are just as successful, if not more so.
5. Peer Pressure:
Peer pressure is when other individuals influence your behavior or thought
processes. It regrettably occurs regularly even if it might not be pe rtinent
during a brainstorming session. People may feel peer pressure to agree
with the viewpoints promoted by those who have authority over them out
of concern for retaliation. Additionally, they can lack the confidence to
communicate their opposing viewp oints.
6. Personality Variations:
If your team has a mix of introverts and extroverts, you will be able to tell
the difference between the two during brainstorming. The same cannot be
said for quiet introverts, who are hesitant to speak their most outrageo us munotes.in

Page 33

Qualitative Analysis
33 ideas in front of a crowd. Therefore, if you want your brainstorming
session to be inclusive and ensure that every voice is heard, you will need
to set up certain standards.
7. Disengagement Between Participant:
Attending a meaningless conference is the fastest way to lose energy. As a
result, the meeting will only be successful if you see that attendees'
interest or vigor is waning.
Types of Brainstorming Techniques:


Figure: 2.3
1. Star Bursting:
The star bursting approach of brainstorming demands you to consider the
who, what, where, when, why, and how of any new idea, much like a
reporter searching for the crucial details to a story.
Use a star diagram to represent your core idea, identifying each point with
one of the 5WH questions.
Create a series o f questions about each of your points by doing so next.
The exploratory aspect of star bursting makes it a favourite among
brainstorming techniques: One question prompts another, and before you
realise it, the answers to those questions have the makings of a sound
strategy.

munotes.in

Page 34

Marketing Research & Analysis
34 2. Mind Mapping:
Trying to capture every thought that is floating in the air when
brainstorming might be difficult. A creative, non -linear diagram known as
a mind map can be used to capture this onslaught of thoughts so that
nothing is mi ssed. The mind map should begin with a central topic or
question and then extend out to include the ideas of each participant.
3. Role Storming/Figure Storming:
Sometimes it is best to take into account another person's perspective.
Role storming’s main idea is to think about how someone else may
approach a problem. Figure storming, a related activity, invites you to
imagine yourself in the position of a well -known historical figure.
4. Gap Filling:
You must first identify your present state and your end goal to perform
gap analysis, also known as gap filling, which involves looking for gaps
between the two states. "How do we travel from here to there?" is the
query posed. Due to the requirement that you come up with practical
answers, gap analysis is particularly beneficial when it comes to problem
resolution.
5. Brain -Netting:
In the contemporary workplace, when remote teams and virtual
communication are considerably more widespread, brain -netting has
grown in popularity as a brainstorming approach. Email communicat ion
can be efficient, but it can also be time -consuming and formal than is
necessary.
6. Round Robin Brainstorming:
Have everyone sit in a circle to begin using this brainstorming method.
Then a team leader or facilitator will ask a question or make an appeal for
suggestions, and each person in the circle will then make a contribution
one at a time.
7. Rapid Ideation:
Working under time pressure frequently results in higher -quality output.
The truth is that "task grows so as to occupy the time available for its
completion," according to Parkinson's Law. Rapid ideation takes use of
this phenomenon: Team leaders can increase output and outcomes by
giving team members a time restriction to offer as many ideas or solutions
as they can.
8. Reverse Brainstorming:
Most brai nstorming exercises require participants to address a problem.
Participants in a reverse brainstorming session create the problem. In
reverse brainstorming, a facilitator poses a question such as, "How can we
cause this problem?" in instead of formulating answers to a problem. munotes.in

Page 35

Qualitative Analysis
35 Then, after recording the responses, a solution is thought out by working
backwards through the responses.
9. Stepladder Brainstorming:
Teammates share their ideas individually before being affected by the
group in this intriguing method of brainstorming, which was established in
1992. A facilitator will first pose a question or problem to the full group
before having practically all the participants leave the room, leaving only
two people inside. While the other team members wait outside , the
remaining two team members discuss their ideas together until the
facilitator instructs a teammate to join the two inside.
2.3 FOCUS GROUPS
Meaning
The easiest way to describe a focus group is as a small, carefully chosen
group of people who particip ate in open conversations for research. To
accurately represent the larger community, they are trying to reach, the
hosting organization carefully chooses study participants.
Togeneralize the response of the entire populace, the group may examine
new produ cts, feature updates, or other interesting issues. An administrator
engages in this study. Their responsibility is to ensure impartial talks and
assure valid results.
Types of Focus Groups

Source: proprofssurvey.com
 Dual Moderator:
There will be two moderators for this event. The first guarantees efficient
operation, while the second guarantees that each question will be
discussed.
munotes.in

Page 36

Marketing Research & Analysis
36  Two -way:
In a two -way group, the subject is discussed at various times by two
distinct groups. The second group observes the debate while one group
performs their studies. The group who watched the first session eventually
acts out their conversation. The second group can delve more into the
subject and provide more viewpoints using the knowledge they obtained
from witnessi ng the previous conversation.

 Mini:
Participants are limited to 4 -5 persons instead of the typical 6 –10 in this
type of group.

 Customer Involvement:
Use this group if a client requests that you hold a focus group and invite
those who do.

 Participant -Moderated:
One or more participants function as moderators for the discussion.

 Internet:
These organisations use online platforms to collect input and thoughts. An
online panel consists of three types of participants: observers, moderators,
and respondents.
Following steps to be taken create a market research focus group:


munotes.in

Page 37

Qualitative Analysis
37 1. Recruit the right participants:
A researcher must use caution when choosing subjects. Members must
have a sufficient understanding of the subject to contribute to the
discussion.
2. Choose a moderator:
Our moderator should be knowledgeable about the subject under
discussion and have the respect of all group participants. Your moderator
should be knowledgeable about the subject being discussed and have the
following traits.
o Assures that all group members participate.
o Controls group leaders so that others may talk.
o Encourages absentminded team members with encouraging remarks
and upbeat body language.
o If a conversation gets too hot, decides whether to end it or keep going.
o Confirm that none of the participants know the moderator. Existing
connections between a moderator and a member can skew your data
and introduce bias.
3. Record the meeting for future purposes:
It is crucial to record focus group sessions or meetings when conduc ting
them. The conversation can be captured on audio or video by a researcher.
Participants must be informed that the event will be recorded, and their
consent must be obtained.
4. Write clear discussion guidelines:
Writing down specific session rules before the meeting begins is essential.
Include the main inquiries, the participants' expected behaviors, whether
the conversation will be recorded, and the means of disseminating the
findings. Give the participants the rules in advance and ask them to follow
them.
5. Conduct the session and generate a report:
The moderator conducts the survey after everyone has a clear
understanding of their part. For quantifiable statistics from the event, you
might invite attendees to complete a survey. Utilize your data to produc e
reports on the main outcomes of your research.
6. Use the data to plan of action:
Inform the decision -makers and stakeholders in your organization about
your report. The focus group response indicated that a strong report aids in
the creation of practical s trategies for enhancing goods and services. munotes.in

Page 38

Marketing Research & Analysis
38 Inform the group members of the modifications you made and their
effects.
2.4 IN -DEPTH INTERVIEW
Meaning:
In-depth interviews are a qualitative data gathering technique that makes it
possible to gather a lot of data on the conduct, attitudes, and perspectives
of the respondents.
Researchers and subjects are free to explore additional topics and alter the
course of the interview when necessary, during in -depth interviews. It is
an independent research methodology that can use a variety of approaches
depending on the objectives of the study.
Characteristics of In -Depth Interviews:

Figure: 2.4
There are many types of interviews , each with its particularities, in this
case the most important characteristics of in -depth interviews are:
1. Flexible Structure: Although it is not overly organised, it covers a
limited number of subjects using a guide, allowing the interviewer to
address issues pertin ent to the interviewee.
2. Interactive: As the interview progresses, the interviewer processes the
information that was generated. The interviewer starts off by asking open -
ended questions in a way that encourages the responder to react. The
entire procedu re is very human, making it less routine and monotonous.
3. Deep: In-depth interviews make use of a variety of probing tactics so
that findings can be explored and explained. To comprehend the
participant's perspective and obtain a deeper insight, the inte rviewer
follows up with more questions.
munotes.in

Page 39

Qualitative Analysis
39 4. Generative: Engaging with your target audience often leads to the
creation of new information. For instance, you can learn more about your
consumers' purchasing patterns by speaking with them. Researchers and
participants give concepts for a certain subject and answers to the issues
raised.
Importance of conducting in -depth interviews:
Since an in -depth interview is a one -on-one chat, you have plenty of
chances to uncover the underlying factors influencing someone ’s likes and
dislikes, views, or opinions. In general, inquiries are open -ended and can
be tailored to the specific circumstance. The interviewer has the chance to
get to know the person and build a relationship, which helps the
participant feel at ease. A s a result, people may provide candid comments
while also observing their facial expressions and body language. These
hints could be considered valuable qualitative data. With surveys, there are
chances that the respondents may select answers in a rush, bu t in case of
in-depth interviews it’s hardly the worry of researchers.
Conversations can be shown to be a very effective way to get information.
People may be reluctant to provide written responses, but given the nature
of an interview, participants may ag ree to providing information vocally.
Additionally, you might ask the interviewers if they want to keep their
identities a secret.In -depth interviews are intended to elucidate the
problems in order to produce thorough results. You can learn more about
the interviewees' experiences, sentiments, and viewpoints through this
technique.In -depth interviews help to focus on and narrow down key study
aspects throughout the earliest stages of a huge research endeavor.
How to conduct detailed interviews:
1. Gather the r elevant data regarding the respondents and the
environment they operate in.
2. Create an outline or a list of the subjects you want to address. It will be
simple to include additional questions as a result.
3. Arrange an interview for the respondent's preferred time and day.
4. Ask questions with confidence and make interviewees feel at ease so
that they, too, will be assured and be able to answer challenging
questions with ease.
5. Choose a time limit that does not seem excessive.
6. Pay attention to the interviewee's bo dy language and gestures and take
notes.
7. It is critical to uphold ethics throughout the procedure.
8. Transcribing the recordings will allow you to cross -check them with
the interviewee. Advantages of in -depth interviews
Conducting an in -depth interview has t he following Advantages:
1. They enable the researcher and participants to interact in a relaxed way
to get more detailed replies about touchy subjects. munotes.in

Page 40

Marketing Research & Analysis
40 2. To better understand the perspectives of the participants, researchers
can conduct follow -up questions, gather more data, and go back to
crucial questions.
3. When compared to other data collection techniques, sampling is more
accurate.
4. To better comprehend participant viewpoints, researchers can keep an
eye on changes in participants' word choices and tone.
5. Fewer volunteers are required to gather insightful data.
6. When a thorough report about a person's opinions and conduct is
required, in -depth interviews can be quite helpful. Additionally, it
investigates fresh concepts and settings that allow the researcher a
thorough understanding of the occurrences that took place.
Disadvantages of in -depth interviews
1. They take a lot of time to conduct since they need to be recorded,
arranged, and thoroughly examined.
2. An untrained interviewer has an impact on the entire inte rviewing
process.
3. Contrary to other approaches, it is more expensive.
4. Requires careful participant selection to prevent bias.
5. Lengthens the process.
6. Only attractive to participants if they stand to gain something in return.
2.5 PROJECTIVE TECHNIQUES
Meanin g:
Projective techniques are a variety of methods for evaluating a person's
personality that depend on a planned order of random inputs to elicit the
subject's often strange responses.
Projective procedures, which are indirect and unstructured methods of
learning about people, were created by psychologists. To uncover hidden
desires, drives, or intents that the respondent either doesn't want to reveal
or is unable to identify for themselves, researchers employ respondents'
projections.
Despite their apparen t simplicity, projective procedures sometimes call for
a qualified psychologist's expertise in order to properly design the tests
and evaluate them.
Methods of Projective Techniques:
Projective methods are extremely important in attitude polls or
motivational studies. It is helpful to use projective approaches because
they let respondents express their thoughts without embarrassment. These
methods help the respondents inadvertently put their attitudes and feelings
onto the study's subject.

munotes.in

Page 41

Qualitative Analysis
41 Some of the essential Projective Techniques are:


Figure: 2.5
1. Word Association Test :
Word association tests can be used in several situations, including:
 You can ask respondents to state or write the first word or phrase that
comes to mind after giving them a series of words or phrases in a
random order.

 Respondents are asked what word or phrase at once comes to mind
when hearing brand names.

 Respondents are asked to supply a "human trait" or pair a descriptive
adjective with an inanimate object or product t o characterise it. •
Respondents are asked about slogans and what they imply.
For Example , as part of creating a strategic marketing plan for their
community, a group of tourism specialists was asked to define personality
traits or "human characteristics" for both the villages and the towns in
their area.
Most of the tourism sector officials were from cities, and they adamantly
argued that metropolitan areas had previously been disregarded in
marketing activities.
Through these and other experiments, they c ame to the conclusion that the
rural areas were an important factor in the overall appeal of the location
and that any marketing strategy must emphasise them .
2. Completion Test:
Respondents are asked to complete incomplete sentences using the
sentence completion method. These sentences tend to be ambiguous and
are usually written in the third person. munotes.in

Page 42

Marketing Research & Analysis
42 The following lines, for example, would be finished in a variety of striking
ways depending on the respondent's personality:
 “A beach getaway is…”
 “Visitin g the mountains for vacation is…”
 “The purpose of golf is…”
 “The typical individual thinks of skiing…”
 “Museum visitors tend to be…”
In general, because the provided answers are more detailed, sentence
completion tests are easier to understand than word as sociation tests.
Although the respondent can more clearly understand what they aretrying,
this can result in less authentic answers.
This method has a version called the narrative completion test. A tale in
words or pictures is presented to the respondent, who is then invited to
continue it in their own words.
3. Thematic Apperception
In the Thematic Apperception Test (TAT), after viewing one or more
pictures, participants are asked to describe a scene, prospective character
dialogue, and/or how the "story" might go. TAT is also known as the
picture interpretation technique for this reason.
TAT can be used in a variety of scenarios, from eliciting product attributes
to establishing thoughts about the kinds of people who could use specific
items or services.
Respondents were asked, for instance, to describe the type of the location
that would employ the sample logo and what a visitor might find there
after viewing it.
 The Empire State Building right there gives it a New York vibe.
 That reminds me of the garden.
 It is indisputably the largest metropolis in the country.
 Calming, relaxing Because a tree hides your view of the countryside
and you can see the city and buildings in the background, it has a regional
focus.

4. Expression Techniques :
More often than any other projective technique, the expression technique
is used to elicit respondents' strongly held opinions and ideas that can be
construed as reflecting negatively on the respondent. People often claim to
possess "virtues" that they consider to be "vi ces" in others.
For instance, when asked why they would choose to go on an Alaskan
cruise, someone would respond that it was because of the excellent munotes.in

Page 43

Qualitative Analysis
43 scenery, the opportunity to meet interesting people, or the opportunity to
experience a different culture.
However, if the same question concerning the reason for a neighbour’s
cruise is asked, the response may very well be "brag appeal" or the desire
to boast.
Respondents can discuss opinions they might not necessarily admit to
holding for themselves when giv en a chance to talk about someone else,
such as a neighbour, a relative, or a friend.
The third -person approach can be more dynamic by including role -playing
or practice. In this scenario, the respondent is instructed to mimic the
actions or voice the feel ings of a third party.
This strategy can be quite beneficial, especially when working with kids
who “know” how others would behave but may not always be able to
articulate it verbally.
2.6 ATTITUDE AND MOTIVATION RESEARCH
Meaning:
A person's thoughts, sent iments, and behavioural intentions towards your
organisation are combined to form their customer attitudes. These
opinions are frequently formed based on a variety of elements. The past
experiences of a person have a significant impact on the formation and
maintenance of specific attitudes.
What are Customers Attitude and Motivation
Consumer behaviours are, in part, the activities and decisions brought
about by consumer attitudes, which place the focus on consumer beliefs,
ideas, and feelings.
Consumer beha viour, or how individuals act and behave during the full
lifecycle of your product —from first being aware of the product, to
assessing its qualities, to buy, use, and disposal of that thing —is how
people pick and utilise your products and services.
More s pecifically, trends of customer behaviour during this journey
include:
 Purchase habits, including when someone shops and how they pay for
their purchases.

 Product usage information, including how frequently customers use
your product and whether they are happy with their purchase.

 Goods disposal, including how long a customer keeps your product
and whether they resale it when they are done using it.
To understand why and how individuals buy and use your product, a
consumerbehaviour research dives into the ideas, behaviours, and habits munotes.in

Page 44

Marketing Research & Analysis
44 that underlie each stage of the customer journey. This helps you keep your
current customers happy and draw in new ones that have similar patterns.
Examples of Consumer Attitudes
When attempting to gain a more comprehensive u nderstanding of clients,
market analysts endeavour to measure a variety of distinct attitudes. Here
are some of the most popular indicators to investigate when measuring
client sentiments through your market research and customer experience
efforts:

Figu re: 2.6
1. Overall Satisfaction:
Customer happiness and contentment with a company's goods and services
are gauged by the term "overall satisfaction." After a product or service is
bought or rendered, surveys are frequently used to gauge overall
satisfaction. Having solid insight into overall satisfaction provides
consistent feedback on how you are doing in the eyes of your clients. It
can also have a cascading impact because happy consumers are more
likely to recommend your business online and through word -of-mouth and
to become devoted and repeat customers. Of course, the ripple effect
works both ways; if your consumers are dissatisfied, they'll probably let
you know by leaving negative internet reviews and comments and looking
to buy from other companies.

2. Product and factor Level Satisfaction:
While overall satisfaction concentrates on the overall picture, product and
factor level satisfaction examines customer satisfaction specifically in
relation to a given product and the factors that affect a customer's choice
to buy.

After a consumer makes a purchase, businesses frequently follow up with
a brief survey asking them to score their first levels of happiness with the
product to measure product satisfaction. In order to gather pertinent high -
level informatio n about how the product is being accepted by your pool of
customers who made the transaction, responses to these surveys can be
compiled. More specifically, surveys provide the chance to swiftly fix any munotes.in

Page 45

Qualitative Analysis
45 serious flaws or faults with a specific product to as sist guarantee a great
customer experience.

A variety of elements, such as product quality, price, service, and features,
as well as less obvious elements like emotion or perception of fairness,
can affect a consumer's attitude about a product purchase. Your efforts to
improve customer experience can gain significant perspective by
maintaining a constant awareness of these characteristics and the part they
play in attitudes and customer satisfaction.
2.7 CONCEPT UNDER TESTS
Meaning:
Before introducing a product or service, you should consult clients about
your concepts and ideas for it. This process is known as concept testing.
As a result, you may decide your clients' acceptability and willingness to
purchase and make important decisions prior to the lau nch.
Concept Testing Methods:
Researchers have developed and used a wide range of concept testing
techniques over the years. Based on how the concepts are presented, these
ways are grouped. These approaches are all appropriate for various kinds
of study. It is simple to do concept testing with the aid of a research
platform. The four main techniques for concept testing are listed below.
1. Comparison Testing
Over the years, researchers have created and employed a wide variety of
concept testing approaches. T hese approaches are categorised based on
how the concepts are conveyed. All these methods are suitable for
different types of research. With the aid of a research platform, concept
testing is straightforward to perform. The following is a list of the four
primary concept testing methods.

2. Monadic Testing
In a monadic test, the target audience is divided into many categories.
Each group only sees one concept at a time. These exams emphasise in -
depth analysis of a specific idea. A monadic test survey is often brief and
narrowly focused.
Since every respondent group sees the same idea, it is possible to go into
detail without making the survey too long. Follow -up inquiries regarding a
concept's many characteristics, such as what they liked about it, how it
looked and felt, how much it cost, etc., might be asked by researchers. The
follow -up questions for each concept will be the same even though each
group of responders only views one notion at a time.

Short monadic test surveys enable researchers to follow up with a variety
of inquiries. As a result, the findings give greater explanation for why a
particular thought is superior to another. The sample size needed to run a
monadic test is large, though, because the intended population is divided munotes.in

Page 46

Marketing Research & Analysis
46 into several grou ps. The sample size is more important because different
ideas need to be tested. The cost of research significantly rises as sample
size is increased.

3. Sequential Monadic Testing
Like the monadic test, different groups of the target audience are divided
in sequential monadic tests. However, all the concepts are taught to each
group rather than just one in isolation. To prevent research bias, the
concepts are presented in a random order. For each notion, the identical set
of follow -up questions are posed to the respondents to elicit additional
information.

A sequential monadic test only needs a small target audience because
every group of respondents sees every notion. A single round may test
several concepts. Therefore, sequential monadic tests are simpler to
implement and more cost -effective. It is perfect for research with limited
funding or when there is a tiny target population available because of this
concept testing methodology. However, the questionnaire is very lengthy
because all the topics are exp lained to each set of respondents. This may
cause non -response bias and has an impact on the completion rate. By
putting a cap on the number of questions, researchers can shorten the
questionnaire. However, this has an impact on how in -depth the insights
were gathered.

4. Proto monadic Testing
A Proto monadic Test consists of a comparison test after a sequential
monadic test. Here, respondents are asked to rank many concepts before
selecting the one they find most appealing.
The sequential monadic test findin gs can be confirmed using this design.
Researchers might check to see if the concept chosen for the comparison
test is consistent with the data they have gathered on each proposal.
2.8 SUMMARY
 Qualitative analysis is an open -ended question (conversational)
research process that uses focus groups, in -depth interviews, and other
cutting -edge research techniques to investigate consumer behaviour in a
particular market.
 It is based on a small but valid sample of responders, often between 6 -
10, and focuses on ve ry small sample sizes, allowing for in -depth
examinations of subjects.
 It contrasts from quantitative research, which uses statistics to respond
to binary queries, such as how many or how much customers are
satisfied with a product. With qualitative resear ch, questions like "why
do buyers like the product" or "what circumstances drove the sales" are
asked, allowing for free and in -depth discussion and examination of
subjects. munotes.in

Page 47

Qualitative Analysis
47  Qualitative research techniques are used to understand how people
think and view t he world, and online methods are more conversational
and descriptive.
 Ethnographic Research is the most in -depth observational technique for
seeing individuals in their natural surroundings.
 It is a difficult and time -consuming strategy that relies on the
researcher's skill to observe, interpret, and draw conclusions from the
data.
 There are several ways to gather and store qualitative data, such as
handwritten notes or video tapes, transcribed audio files, running notes,
and text analysis. Text analysis in volves decoding the words, actions,
and other behaviours of research participants to examine their social
lives. Images are also used in this research study.
 Qualitative research methodologies are used to gather real -time data in
the location where partici pants are having issues or challenges. They
collect data in several formats, such as interviews, observations, and
documents, to break down complex problems into clear, easily legible,
and understandable deductions.
 Brainstorming is a qualitative research technique used to get as many
original and imaginative ideas from the participants as possible. It can
be part of a workshop, focus group, or unfocused group and may be
scheduled or unstructured.
 Brainstorming has several advantages, such as contribution f rom
outside, creation of ideas, and disruption of the ordinary. It is important
to articulate ideas even if they aren't the ideal solutions to make them
more understandable to someone else. The most important details in
this text are the development of lis ts, cooperation, variety of points of
view, and the ability to ask for help from others during brainstorming
sessions.
 A focus group is a small, carefully chosen group of people who
participate in open conversations for research. An administrator is
involv ed in this study to ensure impartial talks and assure valid results.
There are three types of focus groups: two -way, mini, and participant -
moderated. Two -way groups involve two distinct groups discussing the
subject, while mini groups involve four -to-five persons. Mini groups
are limited to 4 -5 people instead of 6 -10.
 In-depth interviews are a qualitative data gathering technique that
allows researchers and subjects to explore additional topics and alter
the course of the interview when necessary.
 Projective techniques are indirect and unstructured methods of learning
about people that rely on a planned order of random inputs to elicit
strange responses. They can be used in attitude polls or motivational munotes.in

Page 48

Marketing Research & Analysis
48 studies to uncover hidden desires, drives, or intents that the respondent
either does not want to reveal or is unable to identify for themselves.
 Surveys provide the chance to quickly fix any serious flaws or faults
with a specific product to ensure a great customer experience. A variety
of elements, such as product quality, price, service, and features, can
affect a consumer's attitude about a product purchase.
 Concept testing is a process used to determine clients' acceptability and
willingness to purchase and make important decisions prior to the
launch of a product or service.
 Sequential monadic tests are simpler to implement and more cost -
effective, making them ideal for research with limited funding or when
there is a tiny target population.
For Reference:

Source: wallstreetmojo.com
2.9 QUESTIONS
1. Explain the fundamentals of Qualitative Research.
2. Elaborate the concepts of Brainstorming and Focus Groups.
3. Explain the concept of Projective Techniques.
4. Explain the concept of Concept Testing.
5. Short Notes:
1. Types of Brainstorming Techniques.
2. Projective Techniques.
3. Distinguish Between Focus Groups and In -depth Interviews. munotes.in

Page 49

Qualitative Analysis
49 6. Multiple Choice Questions:

I. Data source for _______is already -existing, trustworthy documents and
other sources of information.
(Record Keeping, Case Stu dy, Qualitative Observation)

II. ________ Interview is themost popular qualitative research techniques
is conducting in -depth interviews.
(Focus Groups, One -On-One Interview, Structured)

III. The most in -depth observational technique for seeing individuals in
their natural surroundings is_______.
(Case Study, Ethnographic Study, Natural Study)

IV. _________of brainstorming demands you to consider the who, what,
where, when, why, and how of any new idea, much like a reporter
searching for the crucial details to a stor y.
(Star bursting Method,Mind Mapping, Gap Filling)

V. In ________ method of Brainstorming a facilitator will first pose a
question or problem to the full group before having practically all the
participants leave the room, leaving only two people inside.
(Reverse Brainstorming, Rapid Ideation, Stepladder Brainstorming)

VI. __________are a variety of methods for evaluating a person's
personality that depend on a planned order of random inputs to elicit
the subject's frequently strange responses.
(Concept Testing. Projective Techniques, In -Depth Interviews)

VII. __________is used to elicit respondents' strongly held opinions and
ideas that can be construed as reflecting negatively on the respondent.
(Expression Technique, Thematic Apperception, Brain -Netting)
VIII. ________are simpler to implement and more cost -effective, making
them ideal for research with limited funding or when there is a tiny
target population.
(Concept Testing, Sequential Monadic Tests, Projective Techniques)

2.10 REFERENCES
 https://www.questionpro.com
 https://www.lucidchart.com
 https://www.javatpoint.com
 https://www.intotheminds.com
 Marketing Research – Aaker, Kumar, Day ( 9th edition John Wiley &
Sons)
 MarketingResearchEssentials –McDaniels&Gates(3rdeditionSWCollege
 munotes.in

Page 50

50
3
PRIMARY AND SECONDARY RESEARCH
Unit Structure
3.1 Primary Research
3.1.1 Scaling Techniques
3.1.2 Questionnaire design
3.1.3 Sampling frame & technique
3.1.4 Primary sources of Data Analysis
3.2 Secondary Research
3.2.1 Secondary and Standardized sources of Mar keting Data
3.3. Case
3.4. Summary
3.5. Questions
3.6. References
3.1 PRIMARY RESEARCH
Primary data refers to the first hand data which is collected by the
researcher himself. This type of data is collected with a specific purpose in
mind or for a particular study. It is sometimes a very long process that
may involve a lengthy procedure of data collection. In order to get
effective and accurate data, the researcher has to spend a lot of time and
energy collecting this type of data. While the accurac y and reliability of
this type of data is higher, the data collected by this method is raw, and
unfiltered, meaning it has to be filtered and categorized before analyzing
and making inferences.
Primary data is also very specific to the researcher's needs a s per his
research and methodology and area of interest, and hence may or may not
be helpful for other research projects or areas. A lot of elaborate pre -
planning and designing is involved before a researcher begins to collect
data by this method. The rese archer also has the flexibility to change or
alter his data collection method during the process as he obtains this
information at the fundamental level.
In terms of cost -effectiveness, the primary method of data collection can,
at most times, be an expens ive and time -consuming process compared to
the collection of secondary data. There are different methods by which this
type of data can be collected.
munotes.in

Page 51

Primary and Secondary
Research
51 3.1.1 Scaling Techniques
The scaling technique is employed to measure various psychological
variables, i ncluding attitude, customer satisfaction, purchasing behavior,
and perception. Scaling methods, like questionnaires, are used by
organizations to find out how customers feel about their products. The
organization may get insight into customer preferences b y analyzing such
data, and these findings can be used to make business decisions about
product improvement. Scaling techniques like nominal, ordinal, ratio, and
interval scales are most frequently used by organizations.
Type of
Scale Type of Data Example Examples of
Statistical test s
used
Nominal Category with no
order Gender:
Male/Female Percentage,
Mode, etc.
Ordinal Rank order or
Specific order Rating of the
product:
5 Star – Excellent
4 Star – Good
3 Star – Average
2 Star – Poor
1 Star – Worst Median,
Percentile , etc.
Interval It has an arbitrary
zero point and an
equal -interval
order. Body
Temperature T-test, F -test,
Mean, etc.
Ratio It has an absolute
zero point and an
equal -interval
order. Age or Height Chi-Square

Nominal Scale:
Nominal scales are us ed to measure qualitative data. For instance, a
nominal scale can be used to measure non -numerical labels such as
customer gender. Male or female are the only two options presented to the
respondent in this instance; there is no ranking or or der between the two.
As a result, a value of 1 can be given to Male and a value of 2 to Female,
or the other way around.

munotes.in

Page 52

Marketing Research & Analysis
52 Ordinal Scale:
As the name implies, the data in this category is arranged or ranked
according to the attributes being stud ied. For exa mple , let’s consider, for
instance, the test scores of four students.
Student Marks Obtained Rank in Class
Raj 90/100 I
Sham 70/100 II
Ravi 65/100 III
Sushil 60/100 IV

The four students are ranked as follows: Raj > Sham > Ravi > Sushil,
implying R aj is ahead of Sham, Sham is ahead of Ravi and Ravi is ahead
of Sushil. It should be noted that the direction in which the difference in
marks between the students arises is determined by rank or order.
However, it does not indicate how much the ranks diff er, i.e., the
difference in marks between ranks I and II is bigger than the difference
between ranks III and IV.
Interval Scale:
The interval scale consists of all the characteristics of the Ordinal and
Nominal scales, in addition to this, it provides inf ormation regarding the
degree of differences between the values of variables. While an interval
scale lacks an absolute zero point, its interval is constant. An example of
an interval scale is a temperature which is easily ranked. The difference
between th e numbers has significance. For example, the difference of 5
between 50 and 55 degrees Celsius is the same as the difference of 5
between 70 and 75 degrees Celsius. On an interval scale, 0 does not,
however, signify the absence of a condition.
Ratio Scale:
The ratio scale is similar to the interval scale because it has all the same
features as the interval scale and an absolute zero point. The ratio scale
starts at absolute zero and enables measurements at equal intervals; as a
result, it is used to measure physical characteristics like height and weight.
Using ratio scales, the researcher can look at both the differences in scores
and how big the scores are in comparison to each other. Different
marketing attributes, such as sales, market size, and market s hare, can be
measured using ratio scales.

3.1.2 Questionnaire design
In research studies, questionnaires are among the most popular data
collection methods. This method is used for conducting academic
research, business research as well as research by the government. The
questionnaire aims to gather valuable information about the study by munotes.in

Page 53

Primary and Secondary
Research
53 asking questions based on the hypothesis. This method is advantageous
when conducting interviews with a large group of people is not possible.
Benefits of Questionnaire Method
1. The main benefit of the questionnaire method is that it is cost -
effective.
2. Different varieties of questions can be asked in the questionnaire
method.
3. Questions can also be written in the local language.
4. Data can be gathered by sharing the questionna ire with local as well as
global audiences.
5. When the questionnaire is made through an online platform, it reduces
the time for data coding.
6. Questionnaires can be used to collect numeric (quantitative) or non -
numeric (qualitative) data.
7. Since the researcher is not required to be present while the surveys are
completed, data can be gathered swiftly.
The following are the various types of questionnaires:
1. Online Questionnaire

In an online questionnaire, questions can be made and sent over the
internet using a n online portal. The advantage of an online questionnaire is
that it is not restricted by location. It may be delivered to responders from
all over the world. Another benefit of an online questionnaire is that the
respondent can respond to the questions at their convenience. When a
questionnaire is delivered over an online channel, such as email, the return
rate is low. This might occur if the respondent chooses to ignore the mail.
In such cases, the researcher may decide to send respondents follow -up
email s. To complete the online questionnaire, the respondent must have an
internet connection and be educated and skilled in using the internet
platform. It is a cost -effective method of getting responses to the
questions. Through an online questionnaire, data can be gathered in real -
time.

2. Telephone Questionnaire

In a telephonic questionnaire, the researcher connects with a potential
respondent via telephone to get responses to the questions. When the
study's sample size is small, a telephone questionnaire is an ideal option.
The respondent might not feel comfortable responding to a large number
of questions via telephone. Hence, this method is suitable when the
number of questions is small. When compared to online questionnaires,
telephone questionnaires have a higher response rate. The disadvantage of munotes.in

Page 54

Marketing Research & Analysis
54 telephone questionnaires is that they are more expensive and time -
consuming than other approaches.

3. Paper based Questionnaire
The most traditional method is a paper -based questionnaire, in which
respondents are g iven the questions on paper before answering them.
Instead of having a connection to the internet, this method requires the
respondent to have access to a pen or pencil. Paper -based questionnaires
are more expensive than other forms of questionnaires. The biggest
downside of using paper questionnaires is the danger of data loss, which
might have a significant influence on the study. This data collection
method is more suitable where the sample size is small.
4. Mail Questionnaire
This approach was widely used in the early years since it was the simplest
form of data collection. The researcher puts the questionnaire in an
envelope and mails it to the potential respondent. Since the survey is on
paper, the person who fills it out must be able to read and ans wer the
questions. After completing the questionnaire, the respondent must mail it
to the researcher. The respondent does not require access to technology for
this method. This approach has the benefit of covering a vast geographic
region, allowing respond ents to reply at their convenience, and putting less
pressure on respondents than a telephone questionnaire. The downside to
this approach is that the responder is unable to clarify his queries, and the
response rate is low.
Type of Questions
a) Open ended q uestions
An open -ended question allows the respondent to reply to the question in
detail rather than with just one word. The questions may begin with who,
what, why, when, and so on to provoke a long conversation. This type of
question allows the responden t to respond in whatever way they like.
Open -ended questions provide more information, new insights, and the
opportunity to probe. Example:

a) What is the purpose of education?
b) Why are you purchasing this product?
c) What are your thoughts on your workplace's c ulture?

b) Close ended questions
Closed -ended questions require the respondent to choose between two or
more alternatives. In this type of question, the respondent can make a
quick decision since his options are limited. The main advantage of Close -
ended qu estions over open -ended questions is that the responses can be
easily coded. If the options provided for the question are insufficient, the
researcher may include an open -ended question at the bottom of the
questionnaire so that the respondent can provide extra information not
covered by the alternatives. Example: munotes.in

Page 55

Primary and Secondary
Research
55
 Do you enjoy drinking coffee?
o Yes
o No

c) Dichotomous Questions.
A dichotomous question is a question that has just two possible responses,
for example, male or female. When compared to other types of questions,
dichotomous questions take less time to respond to. Another benefit of this
type of question is that it is simple to code, analyse, and interpret.
A dichotomous question allows respondents to make a quick, simple, and
direct response. Exampl e:

 Do you own a vehicle?
I. Yes
II. No

d) Likert Questions
In Likert scale questions, the respondent's attitude or opinion is usually
measured using a five -to-seven point scale. A question using a Likert scale
determines if the respondent agrees or disagree s with the statement. While
designing the Likert scale questions, symmetry is maintained by having an
equal number of positive and negative questions. The middle option on the
Likert scale is "neutral" or "neither agree nor disagree", and the responder
picks this option when he is indecisive. Example:
5-point Likert Scale
 I would recommend this product to others.
(1) Strongly disagree
(2) Disagree
(3) Neutral
(4) Agree
(5) Strongly agree
7-point Likert Scale
 I believe that putting in more effort at work wil l help me advance in my
profession.
(1) Strongly disagree
(2) Disagree
(3) Somewhat disagree
(4) Neutral munotes.in

Page 56

Marketing Research & Analysis
56 (5) Somewhat agree
(6) Agree
(7) Strongly agree
Guidelines for developing an effective questionnaire
1. Length of the questions
The length of the questi on is desired to be short and precise rather than
long. If the question is excessively lengthy, the respondent may skip part
of the question and provide an incorrect answer. In order to prevent this
scenario, Oppenhein (1986) recommended that researchers s tick to a rule
of thumb of keeping questions under 20 words or one line long.
2. Sequence of the questions
While sequencing the questions, in the beginning, the questions should be
asked to establish a good rapport with the respondent. The initial questions
should be general so that the respondent does not have to think too hard to
answer them. The general questions are followed by specific questions
designed to extract detailed information from the respondent and demand
the respondent's thoughts, opinions, a nd judgements on a certain subject.
The questionnaire should start with easy -to-answer questions and then go
on to more challenging questions about sensitive topics. It is advised to
avoid asking positive and negative questions about the same theme one
after the other.
3. Layout of the Questionnaire
The following information should be provided in the questionnaire's
introduction:
 The Title of the research.
 Introduction of the individual who is collecting the information.
 A concise summary and the purpose of the study.
 Guidelines for responding to the questions.

The questionnaire should be designed in such a way that answering the
questions is made as simple as possible. It is vital to establish a rapport
with the respondent in order to encourage them to answ er the questions.
The respondent must be assured that their response and identity will be
treated confidentially. Each section of the questionnaire should have
instructions so that the respondent can easily answer the questions.
4. Wordings of the questions
The wording selected when designing the questions will have an impact
on the response. As a result, it is critical to carefully design each question
because a minor modification in phrasing may result in a different
response from the respondent. The questi on's wording should be chosen in
such a manner that it expresses the same meaning to all respondents and is munotes.in

Page 57

Primary and Secondary
Research
57
interpreted in the same way by all respondents. The question should not
include more than one concept since the respondent may find it difficult to
comprehend. It is recommended that the language be kept simple so that
questions may be easily understood and accurate responses can be
acquired.

3.1.3 Sampling frame & technique
Sampling frame
In statistics, a sampling frame is defined as a specified p opulation from
which a sample is drawn using a predefined technique. A sample frame
could leave out a small portion of the target population. For instance, a
telephone directory may be used as a sample frame if the study involves a
survey of all the reside nts in a specific area. Now, it's likely that a small
portion of the population doesn't use landlines, and their number might not
be included in the telephone directory . Such members of the locality will
not be included in the sampling frame. A flawless sa mpling frame is one
that lists each individual in the population just once and is error -free.
The following are four major issues that might arise while constructing the
sample frame: The first issue that might arise is that the sampling frame
does not cov er every member of the population, making the sample
sampling frame incomplete. In the sampling frame, each member should
be mentioned independently; consequently, if two or more members are
merged together and reported as one, an error may occur. When a f oreign
member is included in the sample frame or when the sampling frame is
made up entirely of blank listings, the third type of error may occur. Each
member of the population should be included only once in the sampling
frame, and if a member is duplicat ed in the sample frame, the fourth type
of mistake occurs.










munotes.in

Page 58

Marketing Research & Analysis
58 Sampling techniques

There are two types of sampling techniques: probability sampling and
non-probability sampling. In probability sampling, each member of the
population has an equal chance of being selected. In the non -probability
sampling method, it is uncertain who will be selected.
 Probability sampling
Simple random sampling
In a simple random sampling, each person has an equal chance of being
selected. For instance, if one of the 300 chits with the names of the
participants in the bowl is drawn during the lucky draw, we can see that
each of the 300 participants had an equal probability of being picked.
Stratified Sampling method
The population is partitioned into distinct g roups, or strata, in stratified
sampling. The selection of a subgroup, however, is based on population
characteristics like age, income, and educational level. After subdividing
the population, a sample is randomly chosen from each subgroup.
Cluster sampli ng method
The total population is split into small groups for cluster sampling. These
groups, which are referred to as clusters, are heterogeneous within
themselves. In terms of population features, the clusters are mutually
homogeneous. Once the clusters have been identified, the researcher will
pick certain clusters and leave out others for sampling purposes.
 Non-probability sampling
Purposeful/Judgment sampling
The researcher chooses the sample based on his or her judgement in the
non-probability sampl ing technique known as purposeful sampling. In
comparison to probability sampling, this method saves more time and
money. According to this approach, the researcher's sound judgement will
enable selection of accurate representatives of the total population . munotes.in

Page 59

Primary and Secondary
Research
59 Quota Sampling
A non -probability sampling technique called quota sampling divides the
total population into subgroups with the aim of comparing various groups.
The research uses a non -probability approach to choose the participants
for each group. The s ubgroup is defined by the researcher depending on
the objectives of the study in order to have better control over the selection
process.
Convenience Sampling
The research participants are selected for the study based on the
researcher's convenience in th e convenience sampling methods. Here, the
chances of being chosen are not equal for every member of the population.
Instead, the researchers select participants based on their willingness and
proximity to the research location. Comparing this approach to p robability
sampling, it saves time and efforts.
3.1.4 Primary sources of Data Analysis
Primary Data Sources
The primary data can be collected by using
 Quantitative Methods or
 Qualitative Methods

 Quantitative Methods
Survey is one of the most popu lar techniques of primary data collection by
using quantitative methods. A survey is a method for collecting
quantitative information about items in a sample population. The
information is collected by using different kinds of interview questions
addressed to a large amount of population. Surveys may have different
approaches like personally administered surveys or a telephonic survey, a
mail survey or an electronic survey. All surveys are basically conducted
using a prefixed format of questions, termed as a questionnaire.
 Qualitative Methods
This type of data collection does not necessarily use questionnaires. The
emphasis of such methods is to have a flexible approach while collecting
data. This method is usually used when the research is in the explorato ry
stage and due to the lack of enough research conducted on the topic, the
researcher does not have enough knowledge about the research topic. In
such situations, it is extremely difficult for a researcher to design and draft
a questionnaire and follow a systematic approach. In all such situations
that require exploring new insights and perspectives from the respondents,
the qualitative methods of data collection are considered the most
appropriate method.
Qualitative methods of data collection include obs ervations, focus groups
unstructured and semi structured interviews etc. munotes.in

Page 60

Marketing Research & Analysis
60  Observation Method

This is a qualitative method of data collection. In this technique, the
information is captured by ob serving variety of factors like objects, human
behavior , syst ems, processes, structures etc. For example, in a study about
purchase of a product, instead of asking consumers a fixed set of questions
about their attitude towards the product, it would be more beneficial to
appoint a person as an observer in a store to observe and analyze the
behavior of the consumers while they make their purchase decision.

Although this method could turn out to be time consuming and an
expensive matter, the results obtained through this method would be
reliable. The observer generall y does not interfere in the process of data
collection and because of that the observer ’s bias is also eliminated to an
extent. This technique may reveal some important information that
otherwise may not be disclosed in the other form of data collection.

 Focus Group Discussion
This is a t ype of interviewing technique in which a small selected group of
participants are chosen who are interviewed by a researcher. The
participants are generally from a target research audience whose opinion is
of interest to t he said researcher. The discussion is generally a
collaboration of experiences, attitudes, perception, ideas and how they feel
about a certain topic. The researcher generally moderates the discussion in
a direction that will lead to some quality opinions b y the participants.
In general, the discussion during this activity is free and open, allowing
the researcher to occasionally form new lines of thought. The researcher
may also receive various ideas and insights, enabling him to increase his
quality of res earch work.
It is however important that the selection of the participants be given due
importance. Smaller groups are generally preferred for a natural and well -
coordinated discussion. The participants are to be selected, as far as
possible, from a simila r economic, social and cultural background. This
would minimize any conflict that could arise within the group and
contribute towards achieving the set objectives. The researcher ’s skills are
extremely important in keeping the discussion relevant without g etting
involved in any controversy or bias. The researcher should have adequate
knowledge of the topic that would be discussed and should be able to
follow and utilize effectively, the opinions provided in the focus group
discussion.
 Interview Method
This is the most commonly used method of data collection. A prefixed set
of questions are designed by the researcher in order to ask the target
participants. There are basically three types of interviews.
 Structured Interview
 Semi – Structured interview
 Unstruc tured Interview munotes.in

Page 61

Primary and Secondary
Research
61  Structured Interview
Structured interviews are the most systematized type of interview.
Opposite to semi -structured or unstructured interviews, the interviewer
uses predetermined questions in a set order. Structured interviews are
mostly cl osed-ended. Participants in a structured interview respond ‘yes’
or ‘no’ to each question, set of multiple -choice options, or open -ended
questions.
Semi – Structured Interview
In this method, the interviewer sets some simple guidelines for the
questions to be asked. The succession questions are generally on the basis
of the preceding questions. Hence we can say that in a semi structured
interview, while there is some flexibility to the questioning path, there is
also some fixed structure to the questions be ing asked to the respondents.
A ‘job interview ’ is the most common example of a semi structured
interview.
 Unstructured Interview
This type of interview allows the interviewer to get opinions and get a feel
of general attitudes of the respondents. The ques tions drafted by the
researcher are extremely flexible. There is no pre fixed set of questions.
Since the questioning takes place in a very flexible mode, a researcher is
able to get deeper insight into the subject. This can help the researcher
understand the respondents ’ views and opinions better than in structured
questions.
3.2. SECONDARY RESEARCH
Secondary research consist of data that has previously been collected by
another source and can be accessed by researchers. This is the opposite of
primar y research, where the data collected directly from its source.
Secondary data is almost always past data which is inexpensive and less
time consuming to identify. Although secondary data is economical to get,
it may or may not be specific to the researcher s needs. A lot of filtering
and scanning may be required in order to arrive at the correct data as per
researcher ’s topic of interest. However the ultimate source of any
secondary data has to be primary data. The most common example of
secondary data are t he data collected from published sources like
newspapers, ma gazines, journals, books, reports, publications, economic
survey and census published by Government of India.
Secondary research can be of 2 types, depending on the type of
research:
 Quantitative data – data that can be expressed as a number or can be
quantified. Examples – the weight and height of a person, the number of
working hours, the volume of sales per month, etc. Quantitative data can
be easily manipulated statistically. munotes.in

Page 62

Marketing Research & Analysis
62  Qualitative data – data that can ’t be expressed as a number.
Qualitative data consist of words, pictures, observations, and symbols, not
numbers. Examples – colour of the eyes (black, brown, blue, green),
socioeconomic status, customer satisfaction, loyalty towards a produ ct,
etc.
3.2.1 Secondary and Standardized sources of Marketing Data
Sources of Secondary Data
Compared to primary sources, secondary sources of data are easier to find.
Secondary sources of data refers to techniques for gathering second -hand
information, whereas primary data is first -hand information gathered by
the researcher using a variety of methods; as a result, the time and effort
needed in this case are comparably less. Sources of secondary data
include:
 Government departments
 Public sector organiz ations
 Industry associations
 Trade and industry bodies
 Educational institutions
 Private companies
 Market research providers
Types of Secondary Data
There are two types of secondary data, based on the data source:
 Internal sources of data : information gathe red within the company
or organization (examples – a database with customer details, sales
reports, marketing analysis, emails, social media profiles, etc) is
called as internal sources of data. Few examples are as follows -
 Sales reports
 HR filings
 Annual accounts
 Quarterly sales figures
 Customer relationship management systems
 Emails and metadata
 Website cookies
 External sources of data : the data collected outside the organization
(i.e. government statistics, mass media channels, newspapers, etc.) is munotes.in

Page 63

Primary and Secondary
Research
63 refer red to as external sources of data. Few examples of external
sources of data are -
 Tax records and social security data
 Census data
 Health records
 Books, journals, or other print media
 Social media monitoring, internet searches, and other online data
 Sales figures or other reports from third -party companies
 Libraries and electronic filing systems
 App data , e.g. location data, GPS data , etc.
3.3. CASE
Since satellite television first arrived in India, the Indian television sector
has experienced exponential development. Despite the fact that only
approximately 70% of Indians have access to cable television now, this
group is referred to as the country's "consuming class ”. Compared to a
low 31.3% in 1994, cable and satellite television accounted for 86.9% of
all television advertising in 2002. With a 46.8% share of total viewers and
a stunning 57.4% share of all advertising income, Hindi general
entertainment television is the fuel driving expansion in the television
industry.
In this market, Sony Entertainme nt Television is a significant competitor
and has consistently ranked second to Star Plus, which has been the
uncontested leader since July 2000. In India, single -TV houses are typical.
The Hindi general entertainment television market is extremely
competi tive since Hindi is the primary language for consuming
entertainment across India. There are five players in it. Since July 2000,
Star Plus has been the unchallenged leader and has considerably
strengthened its position since then. Nearly five times as ma ny people
watched Star Plus in September 2003 as Sony Entertainment Television,
which was its closest competitor. Zee TV, Sahara TV, and SAB TV are
the other competitors.
The vital factor is that women have a greater effect on viewers' channel
preferences during primetime, notably the 9 –10 pm hour. Kkusum and
Kutumb, two of Sony Entertainment Television's top series, controlled the
9–10 pm hour until mid –2002, when Star Plus' four daily shows took over.
Despite several high -profile initiatives to win back l ost viewers, Sony
Entertainment Television's market share in this group kept declining. Sony
Entertainment Television was clearly under the grip of Star Plus.
What secondary data sources would you advise Sony to use to assist them
accomplish its goal of u nderstanding what Indian women want? munotes.in

Page 64

Marketing Research & Analysis
64 3.4. SUMMARY
Primary data are information obtained directly from sources and gathered
by the researcher. Researchers can obtain data that has already been
gathered by another source called secondary research. A samplin g frame is
a defined population from which a sample is taken according to a
predefined method in statistics. In the case of a research that requires a
survey of all the local population, a telephone book may be used as the
sample frame. One of the most com mon ways to gather data for research
investigations is using questionnaires. By using questions based on the
hypothesis, the questionnaire seeks to collect important data about the
study.
3.5. QUESTIONS
1. Explain the process of Questionnaire design.
2. Define Primary data.
3. What are the benefits of Questionnaire Method?
4. What are the types of Probability sampling?
5. What are the methods of conducting primary research?
6. Explain Scaling techniques.
3.6. REFERENCES
 Prahglad Mishra, Business Research Methods, Oxfor d University
Press.
 Jagdish R. Raiyani, Research Methodology Theory and Techniques,
New Century Publications.
 Dr. U.K. Neogi, Research Methodology Tools and Techniques,
Variety Books Publisher ’s Distributors.
 P.C. Tripathi, A Textbook of Research Methodolo gy in Social
Sciences, Sultan Chand & Sons.
 Uma Shekaran and Roger Bougie, Research Methods for Business - A
skill Building Approach, Wiley.
 Business Research Methods, Master in Management Studies Semester
– II, IDOL.

 munotes.in

Page 65

65 4
MARKET SEGMENTATION
UnitStructure
4.0 Objective
4.1 Introduction
4.2 PositioningResearch
4.3 Product/Price/Promotion/Distribution Research
4.4 Sales Promotion Research
4.5 Campaign Tracking Research
4.6 Summary
4.7 Questions
4.8 References
4.0 OBJ ECTIVE
 To understand the Process of Marketing Mix Research.
 To study the concept of Positioning Research.
 To understand the elements of Sales Promotion Research.
 To understand Campaign Tracking Research.
4.1 INTRODUCTION
Organizing potential customers into groups or segments with comparable
demands and responses to marketing actions is referred to as market
segmentation in marketing. Market segmentation helps businesses to
target various customer groups who view the entire worth of goods and
services in a v ariety of ways.
Companies can generally use three criteria to identify different market
segments:
1. Homogeneity , or common needs within a segment
2. Distinction , or being unique from other groups.
3. Reaction , or a similar response to the market.
For example , a co mpany that sells athletic footwear might have market
segments for long -distance runners and basketball players. Basketball
players and marathon runners react to commercials very differently as
separate groups. The company that makes sports footwear is bett er able to munotes.in

Page 66

Marketing Research & Analysis
66 promote its branding by having a thorough understanding of these various
market niches.
MEANING OF MARKET SEGMENTATION:
Market segmentation is a process that consists of sectioning the target
market into smaller groups that share similar charact eristics, such as age,
income, personality traits, behavior, interests, needs or location.
TYPES OF MARKET SEGMENTATION
The four main categories of Market Segmentation are as follows:

Source: businessstudynotes.com
1. Geographic Segmentation: Technically sp eaking, geographic
segmentation is a subset of demographic segmentation. This strategy
organizes clients according to their actual locations on the basis that it's
likely that residents in the same region will have similar wants. For larger
businesses look ing to diversify into new branches, offices, or locations,
this technique works better.

Example: A clothing company that stocks more rain gear in its locations
in the Pacific Northwest than in the Southwest.

2. Demographic Segmentation: One of the straightf orward, widely
used techniques for market segmentation is demographic segmentation. It
entails segmenting the market based on factors such as age, income,
gender, race, education, and occupation of the target market. According to
this market segmentation t echnique, people with comparable
demographics will have comparable wants.

Example: The market segmentation strategy for a new video game
console may reveal that most users are young males with disposable
income. munotes.in

Page 67

Market Segmentation
67 3. Psychographic Segmentation : It aims to cate gorize consumers
based on their lifestyle, personality, attitudes, and interests. This technique
for market segmentation is frequently the most challenging. Since these
features (1) could change easily and (2) would not have readily available
objective dat a, doing this might be more challenging. However, because it
organizes people based on inherent motivations rather than external data
points, this strategy may produce the strongest market segment outcomes.
Example : A fitness apparel company may target in dividuals based on
their interest in playing or watching a variety of sports.

4. Behavioral Segmentation: Consumer behavior, consumer activities,
and customer decision -making patterns are all important components of
behavioral segmentation. Based on their pre vious interactions with
markets and products, this strategy divides consumers into categories. This
strategy assumes that consumers' past spending patterns predict what they
would likely buy in the future, even if purchasing patterns can vary over
time or in response to external factors.
Example: Millennial consumers traditionally buy more craft beer, while
older generations are traditionally more likely to buy national brands.
STEPS TO DETERMINE MARKET SEGMENT
1. Setting Objectives:
 What is the aim or objecti ve of market segmentation?
 What does the business intend to learn by segmenting its market?
 Does the business anticipate any potential market segments?

2. Identify Customer Segments:
 What chances exist that our statistics won't accurately reflect the
various market segments?
 Why should we favor one kind of customer over another?
 What long -term effects might select one market segment over
another have?
 Which market categories most closely resemble the "perfect client"
for the organization, and what is their id eal customer profile?

3. Create Segmentation Strategy:
 How can a business test its theories on a representative test market?
 What attributes make a marketing segmentation plan effective?
 How will the business know if the plan is effective?

4. Execute and Revie w:
 Who are the important parties who can offer comments once the
market segmentation approach has been revealed?
 What obstacles stand in the way of implementation, and how may
they be removed?
 How should internal communication for the marketing campaign's
launch be handled?
munotes.in

Page 68

Marketing Research & Analysis
68 ADVANTAGES OF MARKET SEGMENTATION

Figure 4.1
1. Improved use of Resources:
Marketing segmentation enables management to concentrate on customers
or demographic groups. Marketing segmentation enables a targeted,
precise approach that freq uently costs less than a broad reach approach, as
opposed to attempting to offer products to the entire market.

2. Greater Brand Recognition:
Management must think about how it wants to be regarded by a certain
group of people due to marketing segmentation. Management must decide
what message to produce after identifying the market niche. The fact that
this message is intended for a specific audience suggests that a company's
branding and marketing are more likely to be very deliberate. This can
also have th e unintended consequence of improving customer interactions
with the business.

3. Potential for Brand Loyalty:
Marketing segmentation gives customers more chances to establish
enduring relationships with a business. Customers may respond favorably
to more di rect, personable marketing strategies that encourage a sense of
inclusion, community, and belonging. Market segmentation also boosts
your chance of finding the ideal customer that fits your product line and
demographic.

4. Major Market Differentiation :
A cor poration may pinpoint the precise message it wants to send to the
market and to competitors thanks to market segmentation. By clearly
stating how a business differs from its rivals, this can also aid in product
differentiation. Management creates a specifi c image that is more likely to
be memorable and specific than a general approach to marketing.

5. Efficient Target Advertising:
A corporation can implement more effective customized advertising
methods thanks to marketing segmentation. This includes social m edia
marketing strategies that target people of a certain age, area, or behavior. munotes.in

Page 69

Market Segmentation
69 DISADVANTAGES OF MARKET SEGMENTATION
Without any potential drawbacks, the above -mentioned advantages cannot
be realized. Here are several drawbacks to consider before putting market
segmentation tactics into practice.

Figure 4.2
1. Increased up -front marketing expenses:
The long -term objective of marketing segmentation is efficiency. To
achieve this efficiency, though, businesses frequently have to invest
money up front in ord er to gather information about their target markets
and client base.

2. Increased complexity of the product range:
Through marketing segmentation, a huge market is divided into smaller,
more manageable chunks. The drawback of this is that it runs the danger
of resulting in an unnecessarily complex, fractionalized product line that
places an undue emphasis on serving particular market niches. A
company's marketing mix may grow overly complex and inconsistently
communicate its entire brand rather than having a consistent product line.

3. Greater chance of making errors:
The foundation of market segmentation is the idea that people with similar
demographics would have comparable requirements. This could not
always be the situation. A corporation runs the danger o f misidentifying
the needs, values, or motives of individuals within a given community by
lumping them all together under the assumption that they have anything in
common.

4. Increased reliance on trustworthy data:
Market segmentation is only as reliable as the supporting evidence for the
assertions it makes. This necessitates paying attention to the sources from
which data is gathered. This entails being aware of evolving patterns and
instances in which market segmentation may have changed from earlier
surve ys. munotes.in

Page 70

Marketing Research & Analysis
70 CASE STUDY
1. The products, marketing, and advertising that consumers utilizedaily
are all examples of market segmentation. The success of auto
manufacturers depends on their ability to accurately identify market
segments and develop products and marketin g strategies that appeal to
those segments.

2. Cereal producers market actively to three or four market segments at
a time, pushing traditional brands that appeal to older consumers and
healthy brands to health -conscious consumers, while building brand
loyal ty among the youngest consumers by tying their products to, say,
popular children's movie themes.

3. Elite athletes, regular gym attendees, fashion -conscious women, and
middle -aged men looking for quality and comfort in their shoes are just a
few examples of the market segments that a sports shoe maker might
identify. In every situation, the manufacturer's marketing knowledge of
each market group enables it to create and promote items with a high
appeal more successfully than it might by trying to appeal to a wider
audience.
4.2 POSITIONINGRESEARCH
MEANING
Establishing a brand image that stands out from the competitors is the
process of market positioning. A brand's perception in the eyes of a
particular consumer group is what market positioning aims to change .
Additionally, market positioning raises brand recognition, conveys value,
and supports price.
Like how consumer perceptions affect brand positioning strategies, rival
activity also has an impact. Here are some ways that a positioning strategy
might influ ence your marketing effort.
For Example:
 An innovative and user -friendly cell phone manufacturer develops a
futuristic advertising campaign with a focus on artificial intelligence.

 A handbag designer portrays themselves as a mark of luxury and uses
model s to promote their products as they are dressed in designer
apparel.

 A fashion designer that wants to be seen as a representative of current
trends in the industry uses influencers and celebrities to sell their
products.

 Advertising from a car company th at touts itself as the safest brand for
families displays diverse, welcoming families who are representative
of contemporary culture. munotes.in

Page 71

Market Segmentation
71 ADVANTAGESOFSTRONGPOSITIONING
Strong positioning in marketing has a number of benefits, all of which
ultimately increase y our company's profitability.

Figure 4.3
1. Competitive Positioning:
Marketing and advertising messages are constantly bombarding today's
consumers. Your business will be able to stand out from the crowd of
rivals with the help of strategic positioning and a strong, favorable brand
image.

2. Increased Sales:
With great marketing positioning, customers will see your goods and
services as more pertinent to a certain need in their target market. This
results in more clients and increased sales.

3. Defining Target Ma rkets:
Your value to a certain group of potential customers rises when you
establish yourself as an authority on your industry, specialty, product,
service, or feature. You advance to the position of industry authority.

4. Effective decisionMaking :
This inf luence communication and connections with your customers and
potential consumers is possible once you've established the central
message of your positioning strategies.

5. Link to Customer Needs:
You have the chance to communicate the essential advantages of your
good or service through positioning. This resonates and connects with the
customer who needs it.

munotes.in

Page 72

Marketing Research & Analysis
72 TYPESOFPOSITIONINGSTRATEGIES

Figure 4.4
1. Attributes and Benefits -Based:
A well -liked positioning tactic involves taking the brand and linking it
with desirable qualities and beneficial advantages. The objective is to
draw attention to features and advantages that set your company, product,
or service apart from the competitors.

Example: Colgate advertises its brand as a leader in oral hygiene. It
makes dental health improvements and teeth whitening promises.

2. Price -Based:
A brand can advertise its position as the least expensive or most
inexpensive by using price -based market positioning, which offers
customers the best value.

Example: McDonald's ma rkets itself as a low -cost, easy option for
families compared to other family eateries. They initially used a
promotion that included a "Dollar Menu," which changed to a "$1 $2 $3
Menu," over time. This tactic highlights the items on their menu that are
the least priced.

3. Quality -Based:
Many consumers live by the adage "You get what you pay for." They
think that quality and price go hand in hand. This positioning strategy is
rarely used by brands to discuss pricing. Instead, they emphasize
distinction, qual ity, and luxury.

Example: Mercedes Benz is more expensive than many other automakers,
its marketing strategy emphasizes that it is a luxury brand. It promotes the
idea that owners of these opulent vehicles are more prestigious and
impressive.


munotes.in

Page 73

Market Segmentation
73 4. Use and Application -Based:
In this positioning strategy, a product or brand is linked to a particular
application to meet a demand or address an issue.

Example: Hefty brand emphasizes the toughness and durability of its
garbage bags as part of its use - and appli cation -based positioning strategy.

5. Differentiation -Based:
This strategy focuses on highlighting a crucial aspect of your product's
differentiation by using your competitors as a point of comparison.

Example: Tesla sets itself apart by providing a stylis h, all -electric
automobile. Consumers that value innovation find this brand to be
especially appealing.

6. Convenience -Based:
As you might have imagined, a convenience -based positioning approach
emphasizes how much more convenient a brand is than its rivals .
Usability, accessibility, support, design, and other crucial aspects of
utilizing your product or service can all be used to describe convenience.
If busy people are your target market segment, then this is a wonderful
technique. Products with a focus on convenience frequently justify higher
prices.

Example: Swiffer touts the simplicity of their WestJet product above
conventional floor cleaning techniques. Instead of utilizing a mop and
bucket to quickly clean floors, they emphasize in their positioning
approach how simple it is to utilize a Swiffer mop for that purpose.
4.3 PRODUCT, PRICE, PROMOTION, DISTRIBUTION
RESEARCH
Pricing Research
MEANING:
Pricing Research is a kind of investigation used to assess a product's or
service's prices. It examines how the market's supply and demand
fluctuate. To comprehend our possibilities in relation to our competition,
pricing research is helpful. It's a great tool for figuring out what has to be
improved so we can stay ahead of them.
As we can see, the main goal of observing and evaluating behavioral
pricing is to increase profitability. This method enables us to understand
how pricing impact business development and growth, which eventually
impacts sales. Pricing Research is used to boost sales and cut expenses, by
adjusting the prices of our goods or services in the market, we can achieve
these goals. But it's important to keep in mind that price research has a
mathematical foundation. This fact indicates that we are paying attention
to a particular group of people and that we are actually getting quantitative
data from them. munotes.in

Page 74

Marketing Research & Analysis
74
❖ VanWestendorp's: Van Westendorp's Price Sensitivity Model offers a more thorough, multi-question model that indirectly assesses willingness to pay rather than asking potential customers the subject directly. The Van Westendorp model assists in evaluating a variety of costs rather than just one, as opposed to asking potential customers to specify a single price point. To acquire the data for the survey following questions are asked: • When would it be so cheap that you'd start to doubt the quality of this product? • When do you believe the pricing of this product begins to represent a bargain?
Pricing Research Models/Methods: There are four methods to undertake Pricing Research and those are:- munotes.in

Page 75

Market Segmentation

75 • What price does this product reach when it starts to feel expensive? • When does a thing become too expensive? The Van Westendorp graph plots the number of people who believe a product is too cheap or too expensive, and the number who think it is not yet expensive or not yet a bargain.Based on the value clients provide, the Van Westendorp pricing model identifies the optimum price range.PointofMarginal Cheapness acts as a lower bound of acceptable prices, while Point of Marginal Expensiveness acts as an upper bound. These two boundaries provide a range of prices that a company can test for its products. The Van Westendorp model is effective in gauging consumer sentiments and is best used with a large sample of survey respondents to create a continuum of willingness to pay customers. ❖ Conjoint Analysis: Conjoint analysis is a survey-based sophisticated market research analysis technique that aims to comprehend the process by which people make difficult decisions. Every day, we make decisions that involve trade-offs, maybe without even realizing it. Even seemingly straightforward choices, such as which laundry detergent to use or whether to schedule a flight, are mental conjoint studies that involve several factors. It is one of the best models for determining consumer preferences during the purchasing process is this one. Statistical analysis is then used to convert this data into a quantifiable measurement. It assesses goods or services in a way that no other technique can. For Example: Consider a situation where a product marketer needs to assess the effect of specific product characteristics on the projected market share or sales income. We'll assume that the product in this conjoint study example is a cell phone. Apple, Samsung, and Google are rivals. The company must comprehend how various customers value characteristics like brand, pricing, screen size, and screen resolution. With this knowledge, they may tailor their product offering to the needs of customers. Conjoint analysis assigns values to product attributes and levels by creating realistic choices and asking people to evaluate them, allowing businesses to develop better business strategies and fulfill customer wishes. There are two main types of Conjoint Analysis: • Choice-based Conjoint (CBC) • Analysis Adaptive Conjoint Analysis (ACA). ❖ Monadic Testing: It’s a set of questions that ask the respondents’ opinions about a concept and which preciseat tributes and features they like or dislike. The target audience divides into multiple groups that are presented with one of the concepts and asked questions about it. A monadic test divides the target market into many categories. One of the concepts is presented to each group, and questions are posed regarding it. munotes.in

Page 76

Marketing Research & Analysis
76 These inquiries seek the respondents' opinions on the idea as well as which qualities and aspects they find appealing or repulsive. ❖ Gabor-Granger: Apricing question used insurvey research to specify the price elasticity of products and services. Determining the price of a productor service is an essential step and one of the most critical decisions for any organization. One of the most important decisions for every firm is choosing the appropriate price for a good or service. Companies must pay expenses since they are not charities. To attract customers and make a profit, a product must be priced correctly. The primary goal of market research is often to determine your target audience's willingness to pay for services or goods. The fundamental issue that needs to be resolved is the value that your customers place on your items. The widely used Gabor-Granger technique involves showing them a price and then asking them if they would buy it or not. Case Study Effective pricing research design depends on knowing how your customers interpret price in the context of their purchases. When Esther LaVielle worked her first job in high school selling cookies at the mall, she first wondered about this. The store had roughly 25 customers and charged $1.50 for each cookie and $1.29 for beverage. If you don't have a calculator handy, that works out to about $70.00 per hour, which is not much. When overhead and labor costs are taken into account, a shop's first year of operation ends in failure. Why are so many people prepared to spend so much money on an iPhone, to use Apple as an example? They performed an excellent job of researching their advanced customers and concentrating on the key functions, which included photography, gaming, app development, and music. High-level users are prepared to spend more to get the greatest tools and experiences in these fields. Apple was encouraged by this strategy to make significant investments in these technological fields because consumers and usage result in better goods. People are currently clamoring to pay more than $1,000. Product Research Meaning: Product research is a marketing research procedure carried out to learn more about the required features and specifications of a product anticipated by potential buyers, primarily prior to the product's debut and availability. Product research enables businesses to ascertain the true munotes.in

Page 77

Market Segmentation

77 demands of the consumer so that the product can be developed to meet those needs. Importance of Product Research: Product research can be done at many stages of the new product development process, making it a crucial activity. Product research assists a company in producing goods that consumers expect. Having a competitive advantage and holding a leadership position in the market is aided by this. A product with thorough research will do considerably better in satisfying customer needs. When you are releasing a product in a market with lots of competitors, product research is even more crucial. Knowing the customer's opinions regarding the features and qualities may truly help create a product that addresses the problems with the existing items on the market. Product Research Stages: There are four stages of Product Research:-
Figure 4.5 Before Launch Research: Product research can be done in the early phases to find and screen novel concepts. Through the avoidance of product development expenditures for the rejected concepts, this testing will assist in cost reduction. Product research can assist businesses in the later stages of product development by letting them know which features should be kept and which ones should be dropped. Customers are also asked to test a freshly created product to discover any packaging or other adjustments that need to be made. When it comes to research, testing is crucial. Even with thorough study and testing, a Testing and Feedback: munotes.in

Page 78

Marketing Research & Analysis
78 product may still fail. Small groups, trials, offers, in-house testing, and other methods can all be used with real clients. 3. Soft Launch Research: Before being introduced in all the target markets, the majority of the items are soft launched. In order to improve the product, feedback from prospective customers is gathered during the soft launch. Small areas or groups are the focus of test marketing, and the results are validated. If the soft launch is unsuccessful, further research on the product is required stage one more and might examine the merchandise. 4. Post-Launch Analysis: The product gets released onto the market once everything is finished. Even though test marketing is done, things could change when it is introduced to a bigger audience. Therefore, it is crucial to observe and comprehend how customers behave and react to recently announced products or their variants. Consumer satisfaction with the product is evaluated once it is introduced. The most popular methods for conducting product research include focus groups, interviews, and surveys. The product's next steps can be planned based on this feedback. characteristics of a product or service to raise awareness, spur demand, and increase sales. Promotion is a group of outbound communication activities. Depending on the activity, PR, direct marketing, sales promotion, advertising, and personal selling can all be used to generate marketing promotion. It is a crucial commercial activity since it advertises the advantages of the product, draws clients, and boosts revenue. Importance of Marketing Promotion Marketing promotion has a significant impact on business. Without efficient advertising, there may be little market knowledge of the product, which would result in fewer than anticipated sales. On the other side, marketing promotion would likewise need a certain budget, but it aids in raising consumer awareness, allowing the company to generate more income. Marketing promotion's primary goal is: ❖ To introduce a fresh product. ❖ To inform consumers about how to use the product. ❖ Building brand value and image Raising product awareness Standing out from the competition Increasing product recall. Promotion Research Meaning: The goal of promotion is to tell customers about the benefits and munotes.in

Page 79

Market Segmentation
79  To balance the demand by persuading consumers to make large
purchases, especially during the off -season.
Types of Promotion:

Figure 4.6
Personal Selling:
It is a promotional activity wherein an individual is involved in interacting
with customers/ clients t o achieve sales. Example : Salesman
Advertising:
Advertisements are a form of marketing promotion such as commercials
on TV, ads on the internet, hoardings, print medium like newspapers,
magazines, fliers etc. which is intendedtoinfluencethepublicviewingita nd
which is paid for.
Sales Promotion:
It can be of two types -Trade or Consumer. Example is coupon or price
discounts which stimulate sales.
Directly selling to customers without any retailer in between. They have a
call to action.
Exampl e is selling through newspaper advertising, magazines, mailers,
fliers, catalogs, targeted TV commercials etc.
Public Relations (PR)
PR is managing information flow between an organization and the public.
It is aimed at maintaining a particular image in the minds of custome rs, Direct Marketing: munotes.in

Page 80

Marketing Research & Analysis
80 investors, and other stakeholders. Example : Sponsoring events, new spa
perarticles etc.
Distribution Research
Meaning:
Distribution Research refers to the collection and analysis of information
related to the sales of a product or brand and its distribution through
various retail channels so as to enable the management to make better
decisions.
In order to help management, make better decisions, distribution research
refers to the gathering and analysis of data on a product or brand's sales
and distribution through various retail channels. A brand's or product's in -
depth distribution study reveals details about its retail presence, market
size and share, sales made, how well the competition is doing business,
and the seasonal ity of demand.
 Better management of salesc hannels with enhanced knowledge
 Better segmentation of distribution with in sales channels
 Roles played by inter mediaries in the sales process.
 Understanding the centers of influence with in a sales channel
 The company’s market position with in a particular sales channel.
The main intermediaries in a distribution process are agents, wholesalers,
distributors, and retailers. Various methods of marketing and distribution
research are:


Figure 4.7
1. Qualitative Research
Qualitative research involves collecting and analyzing non-numerical
data (e.g., text, video, oraudio) to underst and concepts, opinions,
orexperiences. It can be used togather in-depth insights into a problem or
generatene wide as for research.

Importance of Distribution Research:
munotes.in

Page 81

Market Segmentation
81  In-depthinterviews:
In-depth interviews are a qualitative data collection method that allows for the
collection of a large amount of information about the behavior, attitude and
perception of theinterviewees.

 Focus Groups:
A Focus Group is best defined as a small group of carefully selec ted
participants whocontribute to open discussions for research. The hosting
organization carefully selects participants for the study to represent helarger
population they’re at tempting to targe t.

2. Quantitative Research:
Through the collection of measurable data a nd the application of
statistical, mathematical, or computer methods, quantitative research is the
systematic analysis of phenomena. With the aid of sampling techniques,
online questionnaires, polls, and surveys, quantitative research gathers
data from cur rent and potential clients.

 Surveys:
For all quantitative outcome research approaches and studies, survey
research is essential. A sample of respondents is surveyed using a variety
of methods, including online polls, online surveys, paper questionnaires,
web-intercept surveys, etc.

Every business, no matter how big or little, wants to know what its
customers think of its goods and services, how well new features are
received by consumers, and other information of the like.

 Questionnaires:
A questionnaire is a type of research tool used to gather data from
respondents and consists of a series of questions or other prompts.
Typically, a research questionnaire will have both closed -ended and open -
ended questions.
4.4 SALES PROMOTION RESEARCH
Meaning:
A trans itory campaign or offer is used by a company as part of a sales
promotion to raise interest or demand in its product or service. A company
may decide to utilize a sales promotion (or "promo") for a variety of
reasons, but the main one is to increase sales. Sales increases could be
required to meet a quota as a deadline draws near or to spread word of a
new product.
Types of Sales Promotion:
There are 12 different categories of Sales Promotions exist. Although not
all of them are appropriate for every indust ry, product, or service, each
one offers distinct opportunities to increase sales and forge stronger bonds munotes.in

Page 82

Marketing Research & Analysis
82 with clients by utilizing various sales psychology techniques. Each
presents a comparison of sales methodologies and offers an unusual
perspective on spin selling.

Figure: 4.8
1. Competitions and Challenges:
Competitions and challenges are frequently held on social media and
enhance customer engagement as participants compete to win a reduced or
free item. If the competition or challenge involves postin g the brand on a
customer's personal social media account, they typically also produce a
significant amount of free publicity.

2. Product Bundles:
Instead of purchasing the products separately, product bundles offer a
combination of goods at a per -item disco unt. Product bundles encourage
clients to purchase a wider range of goods, increasing the likelihood that
they may discover something they like and wish to purchase again.

3. Flash Sales:
These incredibly brief deals provide steep savings for a constrained
period. These sales function by generating a sense of necessity and
urgency surrounding your purchase.

4. Free Trials:
Offering free trials or demos is one of the most popular sales tactics and
one of the most effective ways to expand your clientele. Business es can munotes.in

Page 83

Market Segmentation
83 provide a first -time customer with a limited supply of the goods or a
limited period with the product for free to see if they enjoy it.

5. Free Shipping and/or Transfers:
Promotions that provide free shipping aim to reduce the 70% of customers
who le ave their carts empty when they see the delivery prices. In most
cases, pleased customers purchases more than make up for the slight loss
in delivery costs.

6. Free Products:
Free product marketing operates by giving away a small item for free
when a larger, more popular item is purchased. This increases sales among
all demographics without depleting the company's inventory or revenue
levels.

7. Early -bird or first -purchaser discounts:
To welcome new customers, these discounts are given to first -time buyers.
Discounted prices are more likely to be purchased, and because the
discount only applies once, less income is lost by the business.

8. BOGOS pecials:
The main purpose of BOGO, or "buy one, get one free," promotions is to
raise consumer awareness of the product s. Customers can spread the word
about their products by giving extras to friends or family.

9. Couponsand Vouchers:
Current customers are rewarded for their brand loyalty through coupons
and vouchers, which also stimulate future purchases. This works
partic ularly well for businesses that use punch cards to encourage clients
to buy more than once in order to qualify for a free item.

10. Upsell Specials:
Although upsell promotions are less frequent than the others, they can
nevertheless be very powerful. Upsells provide a less expensive product
for first -time customers to test, and over time, the sales team strives to
persuade them to buy the more expensive and superior product.

11. Subscriptions:
Since subscriptions are typically long -term purchases, they are not al ways
considered sales promotions, however offering varying quantities of a
product at various price points is a sales promotion strategy. With a
subscription, the buyer makes one substantial upfront payment for a lot of
stuff.

12. Donations:
Donations are a g reat method for a business to gain credibility and
goodwill among its clientele. Most donations are successful when a
business donates a share of each sale made over a specific time to a
nonprofit organization.
munotes.in

Page 84

Marketing Research & Analysis
84

4.5 CAMPAIGN TRACKING RESEARCH
Meaning:
The questionnaire used for campaign tracking that uses quantitative
market research must closely match the previously established goals of the
advertising campaign. The campaign's performance is then assessed along
with the KPIs that were previously establis hed. Additionally, the
effectiveness of the advertising media used is examined, allowing
assessments of how well the advertising budget was utilized. Any
advertising medium, including TV, print, radio, online, social media, and
(digital) out -of-home advert ising, can have its effectiveness evaluated.
Stepsin Campaign Tracking:
Step 1: Determine the main Key Performance Indicators based on the
objectives of your campaign:
Consider the business goals you're attempting to accomplish while
identifying the import ant metrics for your campaign goals.
For Example: You should monitor things like website views, mentions,
social media followers, or leads generated if your objective is to raise
brand recognition. You should consider conversion rates or average order
values if you want to increase sales.
Step 2: Select the equipment you will need:
You must select the tools you'll employ to gather this data as you pick
what metrics to prioritize and what data to track. Selecting the optimal
alternative is made possible by i nitially identifying the toolkit. But how do
you pick the ones that suit you the best? Find a web analytics platform like
Google Analytics or switch to Amplitude Analytics if you need to collect
quantitative data about website traffic, customer behavior, e tc.
Step3: Implement a monitoring tool:
Simply said, it is difficult to constantly monitor everything that occurs
online. Measuring the effectiveness of the campaign is much improved by
setting up a monitoring tool that will do it for you.
Step4: Setup notifications.
Monitoring systems not only collect events and give users access to
analytics dashboards, but they also send notifications about things that are
happening around your company.
Step 5: Create the reports:
Visualize the gathered information to make a report. munotes.in

Page 85

Market Segmentation
85

Step 6:Analyze, test, and optimize:
A marketing campaign would be like a recipe without measurements,
without testing and optimization - you might be able to get near, but the
outcome won't be as excellent as if you'd taken the time to measure
everything out.
4.6 SUMMARY
 Market segmentation is the process of dividing the target market into
smaller groups that share similar characteristics, such as age, income,
personality traits, behaviour, interests, needs or location. Companies can
use three c riteria to identify different market segments viz. Homogeneity,
Distinction, Reaction.
 Demographic segmentation involves segmenting the market based
on factors such as age, income, gender, race, education, and occupation.
Geographic segmentation organises clients according to their actual
locations. Psychological segmentation aims to categorise consumers based
on their lifestyle, personality, attitudes, and interests. Behavioural
segmentation divides consumers into categories based on their previous
interac tions with markets and products.
 Market segmentation can lead to increased up -front marketing
expenses, increased complexity of the product range, greater chance of
making errors, and increased reliance on trustworthy data.
 Market positioning is the proces s of establishing a brand image that
stands out from competitors. It has a number of benefits, such as
competitive positioning, increased sales, defining target markets, effective
decision making, and linking to customer needs.
 Positioning strategies inclu de attributes and benefits -based, price -
based, quality -based, use and application -based, differentiation -based,
convenience -based, and differentiation -based.
 Van Westendorp pricing model plots the number of people who
believe a product is too cheap or too expensive, and the number who think
it is not yet expensive or not yet a bargain. It is effective in gauging
consumer sentiments and is best used with a large sample of survey
respondents to create a continuum of willingness to pay customers.
 Product resea rch is a marketing research procedure carried out to
learn more about the required features and specifications of a product
anticipated by potential buyers, primarily prior to the product's debut and
availability. munotes.in

Page 86

Marketing Research & Analysis
86  The most popular methods for conducting pr oduct research include
focus groups, interviews, and surveys. The product's next steps can be
planned based on this feedback.
 Marketing promotion is a group of outbound communication
activities that can be used to raise awareness, spur demand, and increase
sales. It is a crucial commercial activity since it advertises the advantages
of the product, draws clients, and boosts revenue.
 Qualitative research involves collecting and analysing non -
numerical data to understand concepts, opinions, or experiences and
Quantitative research is the systematic analysis of phenomena through the
collection of measurable data and the application of statistical,
mathematical, or computer methods.
 There are 12 different categories of Sales Promotions these includes:
- product bundles, flash sales, free trials, free shipping and/or transfers,
and free products. Competitions and challenges are held on social media
and enhance customer engagement as participants compete to win a
reduced or free item.
 The questionnaire used for cam paign tracking that uses quantitative
market research must closely match the previously established goals of the
advertising campaign.
 Campaign Tracking include determining the main Key Performance
Indicators based on the objectives of the campaign, select ing the
equipment, implementing a monitoring tool, setting up notifications,
creating reports, and analysing, testing, and optimizing the campaign
4.7 QUESTIONS
1. WhatdoyoumeanbyMarketSegmentation?
2. ExplaintheimportanceofProductResearch.
3. Explain the concept of Sa les Promotion Research.
4. Elaborate the concept of Campaign Tracking Research.
5. ShortNotes:
I. Pricing Research Method.
II. Types of Positioning Strategies.
6. Multiple Choice Questions:
I. ________ organizes clients according to their actual locations on
the basis tha t it's likely that residents in the same region will have similar
wants.
(Geographic Segmentation, Psychographic Segmentation, Demographic
Segmentation). munotes.in

Page 87

Market Segmentation
87 II. In ________ types of Positioning brand can advertise its position as
the least expensive or most inexpensive by using price -based market
positioning, which offers customers the best value.
(Attributes and Benefits -Based , Price -Based, Quality -Based).
III. The _______ graph plots the number of people who believe a
product is too cheap or too expensive, and the number who think it is
not yet expensive or not yet a bargain.
(Van Westendorp, Conjoint Analysis , Monadic Testing ).
IV. __________ is a marketing research procedure carried out to learn
more about the required features and specifications of a product
anticipated by potential buyers, primarily prior to the product's debut and
availab ility.
(Pricing Research, Product Research, Post-Launch Analysis ).
V. ________ is a type of research tool used to gather data from
respondents and consists of a series of questions or other prompts.
(Questionnaire, Surveys, Focus Groups ).
VI. _________ emphasises on how much more convenient a brand is than
its rivals by its usability, accessibility, support, design, and other crucial
aspects of a product or service.
(UseandApplication -Based , Convenience -Based Positioning, Quality -
Based).
VII. ________ strategy focuses on highlighting a crucial aspect of the
product's differentiation by using your competitors as a point of
comparison.
(Convenience -Based, Differentiation -Based, Attributes and Benefits -
Based)
4.8 REFERENCES
 https:// www.investopedia.com
 https:// www.questionpro.com
 https:// www.mbaskool.com
 https:// www.zendesk.com
 https:// www.mediatoolkit.com
 Marketing Research – Zikmund &Babin – Cengage Learning
 Research – Aaker, Kumar, Day ( 9th edition John Wiley & Sons)

munotes.in

Page 88

88 5
ADVERTISING RESEARCH
Unit Structure
5.0 Objectives.
5.1 Introduction.
5.2 Advertising Research.
5.3 Concept of Copy Testing, Ad -Tracking, Ad -Recall and Ad -
Comprehension.
5.4 Stages involved in Advertising Research.
5.5 Types of Advertising Media.
 Print
 Outdoor
 TV/Cinema
 Mobile
 Outdoor Media
5.6 Summary
5.7 Questions
5.8 References
5.0 OBJECTIVES
 To study the elements of Advertising Research.
 To understand the concepts of Copy Testing and Ad -Tracking.
 To understand the concepts of Ad -Recall and Ad - Comprehension
 To understand several types of Advertising and how it works.
5.1 INTRODUCTION
To discover which advertisements will be most successful with the target
audience, advertis ing research is conducted. This is done both during the
preparation of the advertisement and while the campaign is running. With
the aid of a thorough investigation of advertising objectives, product
appeals, copy testing, and media efficiency, advertising research will be
carried out to assess the influence of advertising or the outcome of the
effort.
The objectives of the research should concentrate on: -
 The optimum utilization of advertising budget.
 The media used to carry out an advertising campaign. munotes.in

Page 89

Advertising Research
89  The impact of advertising on the intended audience.
 To make advertising more affordable.
In a nutshell, it is accomplished through a process that comprises the
methodical collection, recording, and analysis of data pertaining to an
advertisement's efficacy.
Essentials of Advertising Research
 Research Equipment:
It is a fundamental prerequisite for marketing research. It consists of a
qualified individual, a computer with internet access, and pertinent
publications and magazines. But field research is equally crucial. For
example, interviewing people in the market or their residential places.

 Media Research:
Media research is required to determine which media is the most effective
vehicle for advertising. It helps you more effectively and affordably
approach new customers.

 Marketing Trends:
Understanding marketing trends enables advertisers to identify the
products that consumers are purchasing as well as the precise qualities of
those products that force consumers to make a purchase. Manufacturers
can alte r their product in accordance with the trend in the competitive
pricing range using this information.

 Target Audience:
For any advertising research, it is very important to identify target
audience and geographic location.
5.2 ADVERTISING RESEARCH
Meaning :
Advertising research is to be conducted to measure the advertising impact
or the result of the effort with the help of detailed study on advertising
objectives, product appeals, copy testing, and media effectiveness.
The objectives of the research shoul d concentrate on –
i) The optimum utilization of advertising budget
ii) The choice of media in implementing an advertisement campaign
iii) The effect of advertising on the target audience.
iv) To bring cost -effectiveness in advertising.
Types of Advertising Research:
There are two main types of advertising research . Each type achieves a
different goal. munotes.in

Page 90

Marketing Research & Analysis
90

Source: slideplayer.com

1. Customized Research:
Customized research is more thorough and geared towards the
requirements of a specific firm or industry. Research is specific to each
industry so that business owners can learn more about their
rivals.Performing market research, benchmarking, industry interviews, and
many other types of study are all included in customized research. The
fundamental tenet of personalized research is that it is more precise,
efficient, and effective than random research.Only the client who ordered
the study has access to the data generated from customized research.

For Example:
The SGT Company asks the CTV company to evaluate the effectiv eness
of an ABC energy drink advertisement. Only the SGT Company can view
the results of the study. Results of the study cannot be sold or published
without permission from the SGT company.

2. Syndicated Research:
Syndicated Research is carried out on an imp artial basis (without being
hired). The study's findings can be sold to a variety of clients by
independent researchers.

For Example: The CTV company researches the ABC energy drink
advertisement. The CTV company can sell the results to any client.




munotes.in

Page 91

Advertising Research
91 Advantages of Advertising Research

Figure: 5.1
1. Enhanced Creativity:
Advertising research enables marketers to examine many tactics to
identify the strategy that connects with the target audience the most.

2. Improved targeting of audiences and platforms:
Marketers can choose the optimal media and time to broadcast ads by
doing advertising research. Users prefer various systems differently. While
Facebook users prefer image advertising featured in their feed, people on
YouTube are more likely to respond to v ideo ads.

3. Progress Monitoring:
Company can monitor KPIs like brand awareness, purchase intent, and
brand image over time to get an idea of how well your campaign is
performing. It will also assist you in deciding whether interventions are
required.

4. Brand Image Evaluation:
Using advertising research, you may assess how your brand stacks up
against rivals. In comparison to your rivals, it also reveals how your
audience views your brand. It is crucial to influence how target audiences
perceive your brand or improve its image.

5. Improved Prospects for Advertisement Success:
We can produce advertisements that are relevant to your audience by
using the data you get from conducting advertising research. It greatly
raises the possibility of conversion.



munotes.in

Page 92

Marketing Research & Analysis
92 Methods of Advertising Research:

Figure: 5.2
1. Pre-testing Method of Advertising Research
Meaning:
Pre-testing a message or piece of copy involves evaluating its viability
before printing or broadcasting it. It is helpful because the advertiser, the
advertiser's c ompany, or the advertising agency may believe the concepts
in advertising to be straightforward and successful. From the perspective
of the layperson, it could be challenging. Pre -testing is necessary for each
component of the advertisement material to ens ure that the message,
"prevention is better than cure," has been effectively communicated. On
this foundation, pretesting techniques are used.
Here are somepre -testing techniques: -

a. Concept Testing
Before introducing a product or service, it is helpful to test the concepts by
asking clients what they think about them. This research technique is
known as concept testing. As a result, it is easy to determine the
customers' acceptance and willingness to purchase and make important
decisions prior to the launc h.

For Example: InTesla Participants were presented with the idea and given
the chance to put down a deposit on one of their own when Tesla
introduced its Model 3 in 2017.The company was able to raise an
additional $400 million from investors thanks to th e comments.

b. Consumer Jury Test:
One or two ads out of several being examined are selected by a small
group of consumers acting as a jury. The jury members rank the
advertisements and provide answers to questions like which advertisement
was the most impre ssive, which advertisement most encouraged you to
purchase the goods, which advertisement did you notice first, etc.

The Order of Merit Rating and Paired Comparison tests are the two ways
used to administer this test. The jury members rank the advertising
according to their preferences in the Order of Merit Rating Test. At the munotes.in

Page 93

Advertising Research
93 conclusion, the best advertisement copy is determined. The best, though,
can be the best of the bad.

c. Copy Testing:
Copy testing is a specialized field of market research that assess es an
advertisement's performance based on reactions, feedback, and consumer
behavior. Pre -testing is another name for copy testing. It includes testing
across all media platforms, such as social media, print, radio, and the
internet. Pre -testing is benefi cial for a business to determine whether an
advertisement contains a message powerful enough to stick in the minds
of its prospects.

Several tests are conducted to gauge the campaign's efficacy prior to the
release of an advertisement. Even after the advertisement has been
broadcast, these evaluations are done to see how effective it was.

2. Post Testing Methods of Advertising Research

Meaning:

Post-testing, or as it is also known, "Ad tracking," can be customized or
syndicated. The performance of a br and, including brand recognition,
brand preference, product usage, and attitudes, is tracked by tracking
studies, which offer either periodic or ongoing in -market research.
Advertising tracking can be done by telephone interviews or online
interviews —with the two approaches producing fundamentally different
measures of consumer memories of advertising, recall versus recognition.

Here are some types of post -testingtechniques:

1. Recall Test:
In a recall test, the efficacy and reach of an advertisement are evaluated by
having a subject name for any memorable advertising messages. To
evaluate the success of a specific marketing and advertising campaign,
recall tests are undertaken among people. Their campaign was successful
if consumers showed positive ad awa reness on a recall test.

2. Attitude Measurement Test:
Marketers measure the shift in consumer opinion following an advertising
campaign and look for evidence of altered consumer perceptions of the
under -researched brand. Additionally, they believe that a fa vorable
perception of their brand may result in additional purchases. A scale like
the Likert scale, Thurstone scale, Differential scale, Guttman scale, etc.,
can be used to rate an individual's attitude.

3. Sales Test:
In this method, marketing efforts are carried out in the test markets.The
actual sales in these markets provide evidence of their effectiveness.The
best market for a successful sales effort is generally thought to be the one
with the biggest sales.For the campaign, appropriate alterations are made munotes.in

Page 94

Marketing Research & Analysis
94 in the other markets.When advertising is the only variable and the primary
component of a company's marketing strategy, sales tests are particularly
useful tools for assessing the effectiveness of advertising.These kinds of
tests, particularly field i nvestigations, are very costly and time -consuming.

5.3 CONCEPT OF COPY TESTING, AD -TRACKING,
AD-RECALL AND AD - COMPREHENSION

 Copy Testing

Meaning:
Copy testing is a specialized field of market research that assesses an
advertisement's performance based on reactions, feedback, and consumer
behavior. Pre -testing is another name for copy testing. It includes testing
across all media platforms, such as social media, print, radio, and the
internet. Pre -testing is beneficial for a business to determine whether an
advertisement contains a message powerful enough to stick in the minds
of its prospects.
Types of Copy Testing:
Source: studiousguy.com
There are seven main copy testing techniques -
1. Consumer Jury:
Consumers are asked to compare, rank, and assess advertising as part of a
consumer jury test, a technique for testing advertisements.Of all the copy
testing techniques, it is the oldest and most straightforward. A one -on-one
interview may take place, or a group of 50 to 100 individuals could be
gathered and asked to cast votes based on their interests, preferences, or
even how likely they were to purchase the product. The rating supplied by
a group of people who mostly ref lect the product's potential customers is
then shown. A controlled and economical method is a consumer jury. munotes.in

Page 95

Advertising Research
95 2. Rating Scale Copy Testing:
Establishing productive copy standards and assigning numerical weights
to each criterion are necessary for a rating sys tem. Later, ratings are given
to advertisements using a scale, and either a grade or a percentage is
obtained. The advertising manager can check the advertisement using the
list provided by this test. It also helps in identifying and highlighting the
posit ive and negative aspects of an ad copy. Depending on their relative
importance, the weights may be set to various aspects on which the copy is
to be checked.The majority of professional advertising agencies that rate
advertisements employ the rating scale method.

Source: studiousguy.com
3. Portfolio Tests:
Portfolio testing is a copy testing procedure in which the standard
advertisement is stored in a fo lio with several false copies. A portfolio
contains a collection of commercials, primarily test and control ads or a
mix of the two. Respondents chosen from the target market are asked to
recall in detail the advertisements they remembered after looking th rough
a portfolio of many variations of that commercial. The best advertisement
is the one with the shortest playback.

It is crucial to pay attention to whether the chosen advertisement is a fake
one or a real one. If a duplicate is discovered, the actual advertisement is
adjusted appropriately.

4. Psychological Tests:
Psychological Copy testing is a process that combines several techniques,
such as word association, phrase completion, depth, interviewing, and
narrative. There is a predetermined list of possible responses, such as self -
pity, safety, dread, nostalgia, etc. Then, depending on reader feedback,
alternative advertisements are ranked. Implementing the psychological
technique is challenging because it calls for knowledgeable interviewers.
Becaus e copy testing is psychological in nature, several psychological
tests, such as
 Readability and Comprehension
 Tests of Believability
 Attitude tests
 Triple hostility tests

5. Physiological Testing:
In physiological copy testing, experiments are carried out using
specialized laboratory apparatus that captures each subject's physiological
reactions to the advertisements. In this case, the respondents' physiological munotes.in

Page 96

Marketing Research & Analysis
96 responses are thought to be more important than what he says. These types
of testing employ the Eye Moment Camera, Galvanometer, and
Pupilometer devices as its three basic tools.

6. Sales Copy Testing:
In this method, marketing efforts are carried out in the test markets.The
actual sales in these markets provide evidence of their effectiveness.The
best market for a successful sales effort is generally thought to be the one
with the biggest sales.For the campaign, appropriate alterations are made
in the other markets.When advertising is the only variable and the primary
component of a company's marketing strategy, sales tests are particularly
useful tools for assessing the effectiveness of advertising.These kinds of
tests, particularly field investigations, are very costly and time -consuming.

7. Day-After Recall Test:
A day after recall test is a way to gau ge the proportion of individuals who
remember viewing the advertisement the day after it was broadcast on
television. The goal is to ensure that consumers receive the advertising
message. One -on-one interviews are conducted to obtain the consumer
response. Standardization of the test is used to prevent falsified results.
Increase in sample size is advocated for day -after recall tests. One of the
first types of copy testing are these tests. Because there is a lack of data
and research, few advertisers still employ.

There are certain drawbacks to this copy testing method.
 Interviews turn out to be costly.
 Few people claim to have seen an unseen advertisement.

Example: HUL launched an ad for AXE Signature, in which a subtle form
of romance is used with the main message of its lasting fragrance. If the
consumer after watching the ad can only recall the romance part then the
ad is not considered to have done well on a recall test.

The marketing campaign is an expensive affair. To ensure that the
organization obtains maximum benefits for its investment, it is critical to
conduct research and testing before the campaign and repeat its
effectiveness again. In general, copy testing is appropriate for strategic
research in which one aims to scrutinize the relative effectiveness of one
advertising theory over the other. Copy testing assists in the evaluative
research in which one attempts to take a final call.

 Ad-Tracking
Meaning:
Ad tracking is the routine assessment of the evolution of the effects of ads.
For inst ance, a research study using ad tracking can compare the effect of
an advertisement after 6 months and 2 years. It alludes to the method of
evaluating the efficacy of advertisements utilizing data. With the use of
URLs, cookies, and even invisible pictures known as "pixels," clicks, munotes.in

Page 97

Advertising Research
97 impressions, conversions, and other actions may all be measured in a
variety of ways.Despite the fact that ad tracking entails some degree of
recording user behavior, it is unquestionably lawful. However, because of
growing worr ies about user privacy, it is now more strictly regulated than
it originally was.
For the first time, cookies were classified as personal information under
the General Data Protection Regulation (GDPR). It cleared the
groundwork for similar legislation to be passed by many international
governments. Now, advertisers who collect user behavior for ad
monitoring must abide by tight guidelines or face severe financial
penalties.
Types of Ad -Tracking:
1. Tracking URLs
A tracking URL is a website page's URL that als o includes a tracking tag.
The code appended at the end is the only distinction between a tracking
URL and a regular URL.PPC, email marketing, and online advertising
efforts benefit most from this approach. They assist in identifying the
demographics of th e most lucrative audiences.
2. Tracking Pixels
Tracking pixels are tiny, frequently eleven translucent graphics that are
included to emails, websites, and advertisements. These pixels alert
analytics systems that the advertisement, email, or website has been
viewed as they load.

This approach works best for:
When evaluating the success of a particular campaign, tracking pixels can
be especially beneficial. For instance, if an advertiser installs a pixel atop
an advertisement and the pixel loads faster than th e traffic the
advertisement generates, the advertiser can count the number of times the
advertisement has been viewed or clicked.

3. Cookies:
Browser files called cookies are used to store user data like preferences,
behavior, and location. Delivering advertising via cookies can be seen as
unethical when done ineffectively. If not utilized properly, it may even be
unlawful.

But when utilized wisely, they may benefit both users and advertising.
Cookies can be used by advertisers to create customized pro files of their
customers so that they see more pertinent advertising.

This approach works best for:
Cookies, for example, are key in the delivery of personalized retargeting
ads for offers a visitor has seen but not claimed. These can appear on
social med ia platforms like Facebook or even across ad networks like
Google Display. munotes.in

Page 98

Marketing Research & Analysis
98 Advantages of Ad -Tracking
1. Recognize the audience: Ad tracking aids in identifying your
company's target market. To what do they react? From where do they
originate? What search te rms do they make use of to find the company?
The first step to generating additional income is to respond to inquiries
like these.

2. Campaign Optimization: When a corporation understands what the
audience responds to, it may redirect advertising funds to mo re lucrative
campaigns and improve current ones to more effectively target certain
client segments.

3. Personalize the Content: When advertisers are aware of which ads
resonate with their target market, they are better able to plan their budgets
and choose t he right campaign material. They will learn more about their
audience and be better able to serve them by tailoring the messaging,
offers, channels, and other factors as they gather more ad tracking data.

4. Increased Conversions: As a result of personalized content's high
level of relevancy. Campaigns are more likely to produce a favorable
response, which results in more conversions and revenue when they are
more pertinent to the audiences.
Tracking Advertising across platforms
The ad tracking techniques men tioned above are used by the majority of
networks and platforms. The two largest ad platforms, Facebook and
Google, use this type of ad tracking.
FACEBOOK
Meta pixel is used for the most popular kind of native Facebook ad
tracking. They utilize the pixel to track Facebook campaigns in the Ads
Manager by embedding code on a campaign landing page. Facebook
makes it possible to track a variety of user behaviors on websites, in
addition to simple impressions and clicks. This covers signups, purchases,
download s, and more.
GOOGLE
Google, like Facebook, permits surveillance of a variety of activities,
including app installations, purchases, and even phone calls. By setting up
conversion monitoring on the web pages, companies may track these KPIs
and more in Googl e Ads Manager. Other metrics they can monitor
include:
• Impressions: Find out how frequently any advertisement has been
viewed.

• Clicks: Determine the frequency of any ad version's clicks. munotes.in

Page 99

Advertising Research
99 • Call clicks: Count the number of times prospective clients clicked t he
"Call" button on the advertisement while using a mobile device.

• Verified calls: Monitor the frequency of calls made to the Google
forwarding number in any version of the advertisement.

• Map actions: Keep track of how many times viewers of the
advertise ment clicked the company's pin on Google Maps or requested
directions to the company.

• Analytics objectives: They may track the traffic from the advertising
by tying the Google Analytics and Google Ads accounts together.

• Amount spent: Check your spending total.

 Ad-Recall
Meaning:
Ad-Recall is the practice of speaking with a group of people after an
advertisement has been run to find out what, if anything, the respondents
remember about the advertisement.It is a type of market research that
assesses preferences, distastes, awareness, perception, propensity to buy,
and other important performance metrics that are not available on
conventional digital analytic platforms.
Steps to conduct Ad Recall Surveys
Step 1. Expose respondents to an advertisement:
The audience is first exposed to an advertisement as part of market
research. A long time ago, most of the advertising memory revolved
around television ads.Ad recall polls have expanded significantly beyond
conventional advertising channels, though, with the rise of digital and
online marketing.
Step 2. Send a follow -up survey:
A follow -up survey or interview is undertaken with the same targeted
audience after the respondent has been exposed to the advertisement to
help the market research organisation lea rn what, if anything, the
respondent remembered about the advertisement. The surveyor or
interviewer can delve deeper into specifics such brand tie -ins, sentiment,
feelings, emotions, likes, and dislikes if they can recall anything in
particular.
Step 3. A nalyse the results:
A market research company will evaluate the comments after the
fieldwork for the ad recall survey is finished. There are several alternatives
for reporting given the allocated money. munotes.in

Page 100

Marketing Research & Analysis
100  Ad-Comprehension
Meaning:
Understanding is a crucial component needed to create or modify
attitudes, memories, intentions, and behaviour. It takes into account a
variety of elements, including as the message, how the message is
processed, and the target audience's comprehension of the message.
Two orientatio ns exist for comprehension. The first is subjective, whereas
the second is objective.
Subjective comprehension refers to the interpretations that a specific
person makes after activating and processing relevant mental concepts.
Objective comprehension is t he ability to understand or extrapolate
meanings from an advertiser's message.
5.4 STAGES INVOLVED IN ADVERTISING RESEARCH
Meaning:
It is a detailed analysis of various marketing aspects to formulate a result -
oriented advertising campaign. An advertising r esearch process helps in
understand the attitudinal pattern of the target audience and
customersreaction.
Steps involved in Advertising Research:
1. SWOT Analysis: As a first stage, the business should conduct a SWOT
analysis and give a brief overview of t he new product.
2. Establish the Goal: What message should the next campaign deliver?
At this point, the answer to this query is established.
3. Market Research: This is where the actual market research starts. It is
gathered and analysed information about market behaviour, current trends,
competitors, consumer reactions to an existing or pertinent product, and so
forth.
4. Identify the Target Audience: In this step, in -depth research is
conducted to identify the target market most likely to purchase the new
product.
5. Choosing the Right Media: Select the best medium to advertise your
goods onin order to effectively and correctly reach your target audience.
6. Budget Determination: The advertising budget is planned at this stage
based on the previous proc edures. Additionally, the amount of money that
is available and the expected profit are both estimated here.
7. Creating the Ad: Here, the copywriters design an imaginative
advertisement with a poignant narrative. The art directors also really munotes.in

Page 101

Advertising Research
101 create the a dvertisement. Make it shine, the advertisement has been
reformulated and refined multiple times.
8. Launch Day & Time: The date, time, and location of the launch are
chosen based on the results of the market research.
9. The actual launch takes place when and how it is decided.
10. Performance Evaluation: The final phase after the product launch is
to evaluate the campaign's effectiveness in terms of awareness, reach, lead
generation, customer acquisition, sales, and profits made.
5.5 TYPES OF ADVERTISING M EDIA RESEARCH.
Meaning:
The study of the impacts of various mass media on social, psychological,
and physical elements is known as media research. People are divided into
groups in research according to the media they access, including
magazines, radio, an d television shows.
It covers a research on the evolution of media as well as media's
accomplishments and consequences. newspaper, magazine, radio,
television, movie, or other mass media analysis and information gathering.
Understanding how media can satia te audience demands is beneficial.
Whether it is capable of supplying information and pleasure to a wider
range of individuals. The medium is improved or enhanced by new
technical developments. Thus, supervision and regulation of the media are
necessary in order to approach social and political issues intelligently.
Media research can be used to evaluate data objectively.
 Print
A popular form of advertising is print advertising. These commercials can
also be found as booklets or fliers inside of newspapers or magazines.
Print advertising encompasses everything that is written for a specific
target audience and is published in print media.
Readers of newspapers and other periodicals have a propensity to peruse
the print advertisements they come across. Though they may not make the
decision right away, it does become ingrained in their subconscious. They
are enticed to purchase the product the next time they see it in the store.
Advantages:
1. Appeal to visual learners:
Print material is frequently kept at homes, read multiple times, and shared.
Newspapers and publications with a lengthy shelf life can be found in
libraries, public spaces, and doctor's offices. This boosts the exposure of
your advertisement. Print advertisements have a better chance of sticking
as compared to digital ads, which disappear instantaneously.
munotes.in

Page 102

Marketing Research & Analysis
102 2. Gives a higher ROI (Rate of Investment) than digital ads:
Print media tends to be kept at homes, read again, and shared. The long
shelf life of newspapers and periodicals found in libraries, public spaces,
and doctor's offices boosts the exposure of your advertisement. Compared
to digital ads, which disappear instantaneously, paper advertisements have
a higher chance of sticking.

3. Loyal customer base:
Print media has a sizable, devoted readership th at consistently purchases
the magazine on a weekly or monthly basis for weeks, months, or even
years. As a result, you can be sure that your print media advertisement will
receive a lot of exposure.

4. Flexible :
There are numerous choices for print media adv ertising. You have the
freedom to choose the style of advertisement that best suits your needs and
price range, from full -page advertising to small ad listings and features.

5. Develop trust:
Print media is among the most dependable media sources, according to
research. Print media advertising can generate more sales for you than any
other form of media because people buy from individuals they trust.

6. Speak to various generations:
Newspaper and magazine readers can range from teenagers, young adults,
and seni ors, making it simple for you to target a broad audience.

7. Ideal for regional targeting:
It is the ideal way to share your message or advertise your business if you
are a local business or organisation. Raise awareness among the local
community, you can si mply distribute pamphlets in public spaces and
arrange for your adverts to appear in local newspapers.
Disadvantages:
1. Not for a global audience:
Print media is not the best method to get the word out about your business
if you are targeting a global audience as it isexceedingly rare to find print
publications that read globally.

2. Needs extensive planning:
Publication in print media involves a lengthy process. You will need to
prepare the advertisement, compose the copy, engage a designer, send the
copy to the newspaper, and handle the payment. The procedure could take
a while and be difficult.

3. It is challenging to narrow your audience:
It's challenging to target specific audiences using print media. For
instance, print media, such as weekly newspap ers, cannot be used to target
consumers who want to buy cameras.
munotes.in

Page 103

Advertising Research
103 4. Not distinctive:
Even if you pay for a full -page ad, there's always a danger that it will be
lost amid the many other advertisements printed in print media.

5. Higher cost:
Getting published o n print media can be highly expensive.

 Outdoor

Meaning:

Using highway billboards, transit posters, and other outdoor media,
outdoor advertising conveys the message to the wider public. Because to
the generous size and universal visibility of outdoor advertisements, they
are a particularly significant kind of advertising. The delivery of the
message should be clear and concise, which is a crucial component of
advertising.

Although photos are allowed, they must not be utilised excessively.
Everything s hould be presented to the audience in a way that will
influence their decision to purchase the good or service.

Apart than billboards, there are a number of additional ways that outdoor
advertising can be done. For instance, beverage corporations use aren as
and athletic events to promote their goods. Coca -Cola, for instance,
sponsored the FIFA World Cup. The following locations also have
outdoor advertising:

 Buses
Bus shelters targets a large pool of audience by providing high visibility to
different places. It creates impact due to size, the brightness level, and
eye-catching position and tries to have a long -lasting impact on people
who walk past these places.

 Railways
Trains also play an important role in outdoor advertising as companies can
reach a large audience, like tourists, working professionals, business
people, students, children, families, etc., use these modes for commuting
from one place to another.

 Subways and Shopping Complex
All these forms of outdoor advertising are very popular and extremely cost
effective.

 TV/Cinema
Traditional marketing still places a high demand on various broadcast
marketing platforms like radio and television. Businesses may quickly
reach a wide number of people and increase brand awareness by utilising
such br oadcast marketing platforms. Because televisions make it easier to
visually present things and illustrate how they work, different marketers munotes.in

Page 104

Marketing Research & Analysis
104 and advertisers can create far better and more powerful ads using
television. As a result, since viewers can see th e actual qualities of things,
television is the best medium for demonstrating a product's authenticity.
Radio marketing is similar in that it involves promoting goods and
services via various radio stations.

 Mobile Advertising
Any type of advertising that appears on mobile devices like smartphones
and tablet computers is referred to as mobile advertising. Businesses can
use SMS text ads or banner ads that are placed on mobile websites to
advertise on these devices. In addition, downloadable apps and mobile
games may include them.
Types of Mobile Advertising
 Push notifications
These pop -up windows show up on mobile devices. Consumers can
receive these at any time. This implies that users can receive notifications
even when they are not using an app.

 Image text and banner advertisements:
When a user clicks on one of these ads, a browser is opened that directs
them to the advertiser's page

 Click -to-download advertisements:
These advertisements direct users to the Google Play or Apple App stores
when they click on them. The location is determined by the device and
operating system used by the consumer.

 Ads with a "click -to-call" button:
Marketers provide users the option to use their smartphones to call them
immediately by clicking on their advertising.

 Click-to-message advertisements: When a user clicks on one of
these ads, they are led to send the advertiser an SMS.
5.6 SUMMARY
 Advertising research is conducted to determine which advertisements
will be most successful with the target audience. It focuses on the
optimum utilisation of advertising budget, the media used to carry out
an advertising campaign, the impact of advertising on the intended
audience, and to make advertising more affordable.
 Pre-testing is the process of evaluating a message or piece of copy
before printing or broadcasting it. It is necessary to ensure that the
message, "prevention is better than cure," has been effectively
communicated.
 Two pre -testing techniques are concept testing and consumer jury
testing. Concept testing involves asking clients what they think about munotes.in

Page 105

Advertising Research
105 the concepts, while jury testing involves selecting one or two ads out of
several being examined.
 Copy testing is a specialised field of market research that assesses an
advertisement's performance based on reactions, feedback, and
consumer behaviour.
 Ad-Tracking is the routine assessment of the evolution of the effects of
ads. It involves the use of URLs, cookies, and even invisible pictures
known as "pixels" to measure clicks, impressions, conversions, and
other actio ns.
 Ad-Recall is the practise of speaking with a group of people after an
advertising has run to find out what, if anything, the respondents
remember about the advertisement.
 Surveys include exposing respondents to an advertisement, sending a
follow -up sur vey, analysing the results, and understanding the
attitudinal pattern of the target audience and customers reaction.
 The most important details are that the business should conduct a
SWOT analysis, establish the goal, identify the target audience, choose
the right media, budget the budget, create the ad, choose the launch day
and time, and evaluate the campaign's effectiveness in terms of
awareness, reach, lead generation, customer acquisition, sales, and
profits.
 Media research is the study of the impacts of various mass media on
social, psychological, and physical elements. It covers a research on the
evolution of media as well as media's accomplishments and
consequences.
 Mobile advertising is any type of advertising that appears on mobile
devices like sm artphones and tablet computers, such as push
notifications, image text and banner advertisements, click -to-download
advertisements, and clicks with a "click -to-call" button.








munotes.in

Page 106

Marketing Research & Analysis
106 For Reference

Source: Geopoll
5.7 QUESTIONS:

1. What do you mean Copy Testing? Explain the various techniques of
Copy Testing.

2. Explain the concept of Ad -Tracking and elaborate on its importance in
Advertising.

3. Explain the concept of Ad -Recall and Ad -Comprehension.

4. Elaborate various stages of Advertising Research.

5. What do you mean by Advertising Media Research? Explain several
types of Advertising Media.

6. Short Notes:
i. Print Media
ii. Outdoor Media

7. Multiple Choice Questions:
A. ___________ is the periodic measurements of the impact
advertisements over time.
(Ad-Tracking, Ad-Recall, Ad -Comprehension)

B. ____________ is a technique in which various methods including
word association, sentence completion, depth, interview, and storytelling
are used.
(Rating scale, Consumer Jury, Psychological Copy testing)
munotes.in

Page 107

Advertising Research
107 C. ______is not the bes t method to get the word out about your
business if you are targeting a global audience.
(Print media, SWOT Analysis, mobile advertising)

D. __________was the first to designate cookies as personal
information.
(General Data Protection Regulation (GDPR), Adv ertising Research, Ad -
Recall)

E. ________is the study of the effects of the different mass media on
social, psychological, and physical aspects.
(Media Research, Print advertising, Outdoor advertising)

F. In a_______ the efficacy and reach of an advertisement are
evaluated by having a subject name any memorable advertising messages.
(Recall Test, Attitude Measurement Test, Concept Test)
G. In ________ a one -on-one interview may take place, or a group of
50 to 100 individuals could be gathered and asked to cast vot es based on
their interests, preferences, or even how likely they were to purchase the
product.
(Rating Scale Test, Consumer Jury, Sales Tests)

5.8 REFERENCES
 https://studiousguy.com
 https://instapage.com
 https://tutorialspoint.com
 inkforall.com
 https://www.driveresearch.com
 https://www.managementstudyguide.com
 Marketing Research – Burns , Alvin, Bush, Ronald (5th edition
Prentice Hall)
 Marketing Research – An Applied Orientation – Naresh K Malhotra –
Pearson Publications




munotes.in

Page 108

108 6
BRAND RESEARCH
Unit Structure
6.0 Objectives
6.1 Introduction to Brand Research
6.2 Brand Equity Research
6.3 Brand Valuation Research
6.4 Corporate Image Measurement Research
6.5 Summary
6.6 Questions
6.7 References
6.0 OBJECTIVE
● To Study the concept and importance of Brand Research.
● To understand Brand Equity Research.
● To understand the applications and importance of Brand Valuation
Research
● To understand Corporate Image Measurement Research.
6.1 INTRODUCTION
Brand Research is the process of looking into many facets of a new or
established brand to gather knowledge that can be used to create brand
value. Brands are the result of many interrelated variables. A brand is
more than just t he goods and services it provides; it also has an ethos, a
personality, a distinctive visual identity, a vision, and an emotional impact
on consumers. But there will always be an idealised vision of how a
brand's overall branding is received, as well as th e reality as perceived by
its clients and the wider public.




munotes.in

Page 109

Brand Research
109

Source: sapioresearch.com
Terms to understand in Brand Research:
a. Brand Awareness:
Brand awareness is a measurement of whether consumers are aware of the
brand either voluntarily or involuntarily. That could entail naming the
brand when prompted to list businesses in a particular industry (or from a
logo, which we call brand recognition), or it could refer to brand recall,
which is the ability to recall your brand after purchasing a p roduct or
seeing an advertisement or other form of marketing.
b. Brand Associations:
What else comes to mind right away when consumers think about your
brand? Do you have a good reputation with your clients? Do customers
believe your products to be pricey? Ar e you the environmental
movement's poster child? You should evaluate each of these relationships
surrounding your brand to see how they compare to your objectives. It's
wise to be realistic and anticipate to find that customers have opinions on
both sides of the coin because associations can be favourable or bad.
c. Brand Perception:
Brand perceptions are the general impressions people have of your brand,
which differ slightly from the generally positive and negative elements of
brand associations. Customers f orm little judgments about your brand
every time they connect with it, whether it be passively by viewing an
advertisement or actively by making a purchase or contacting customer
service. munotes.in

Page 110

Marketing Research & Analysis
110 d. Brand Equity:
Equity is the value – perceived or actual – that your brand has over others
of similar standing. As an example, Coca -Cola has much higher equity
than an off -brand cola, even if the ingredients are largely similar. Think
also about something as simple as hayfever tablets. Thanks to marketing
and branding effor ts, name -brand tablets tend to have a higher standing
than the pharmacy’s version, even if the ingredients and dosage are the
same. That’ s brand equity, in a nutshell.
e. Brand loyalty:
Metrics like NPS and CSAT, which measure brand loyalty, are used to
gaug e customer repurchase and referral rates. Strong indicators of the
success of a number of smaller elements, such as the calibre of your
products, the effectiveness of your customer service, and the success of
your marketing initiatives, include high brand loyalty. Even if there is a
more competitive product elsewhere, brand loyal clients are more likely to
choose you than a competitor.
f. Brand Preference:
A measurement of brand preference shows how many customers would
choose the brand's products over those o f a competitor. Brand preference
is more inclusive than brand loyalty since it takes into account the
opinions of those who have never made a purchase from the company.
Customers that are accustomed to and passionate about the brand are the
focus of brand loyalty. This is comparable to brand equity, where a
preference for the brand indicates that marketing and branding efforts are
having an impact.
6.2 BRAND EQUITY RESEARCH
The added value a firm receives from a product with a recognisable name
as opposed to a generic version is known as brand equity. Calculating a
brand's value is the process of measuring brand equity. To put it another
way, it is the equal sum of money that a person or business is willing to
spend on the brand.
It will assist in creating a powerful brand with high value and provide
insight into other brand performance indicators, such as dependability,
satisfaction, quality, loyalty, etc.
These indications show how consumers perceive your brand and
eventually provide insight into whether t hey are truly pleased with it.
The three components of brand equity
1. Brand Perception: Brand perception is what customers believe a
product or service represents, not what the company owning the brand
says it does. In effect, the consumer owns brand percept ion, not the
company. munotes.in

Page 111

Brand Research
111 2. Positive or negative effects: While a negative consumer response
will have the opposite impact, a positive consumer response will improve
a brand's reputation, products, and bottom line.
3. Value: Positive effects boost both tangible and intangible value.
Tangible effects include an increase in income or profit; intangible effects
include goodwill and brand recognition. Negative effects can reduce
tangibles as well as intangibles. For instance , Uber was on the rise in late
2016, but a str ing of controversies involving anything from misogyny to
espionage hurt the company's reputation, earnings, and brand value.
There are three core brand equity drivers that you need to track:
financial, strength and consumer metrics:

Figure: 6.1
1. Financial Metrics :To demonstrate that the brand is successful and
viable, the C -suite will constantly demand to see a positive balance sheet.
Market share, profitability, revenue, price, growth rate, client retention and
acquisition costs, and branding inv estment should all be possible to
estimate from the data. You can use reliable financial metrics data to show
how crucial your brand is to the company and earn more money for
marketing so that you can expand.
2. Strength Metrics: You must assess a brand's stre ngth since strong
brands are more likely to endure change and produce greater brand equity.
You must keep tabs on the brand's accessibility, customer retention and
loyalty, licensing potential, and "buzz" surrounding the brand.
3. Consumer Metrics: One must monitor consumer purchasing
patterns and attitudes regarding their brand since consumers, not
businesses, are the ones who create brands. Using surveys and social
media monitoring, track and evaluate brand relevance, emotional
connection, value, and percep tion. To gather sentiment and ideas, the
proper text analytics software that can decipher open text comments is
especially helpful.

munotes.in

Page 112

Marketing Research & Analysis
112 Benefits of measuring Brand Equity:
● One will have a better knowledge of your target market's
demographics —such as their location, interests, purchasing patterns,
income level, gender, age group, etc. —if they measure brand equity.
● It will enable personalization of branding efforts and enable
communication with the appropriate group of individuals.
● Assessing brand equity will provide a precise image of brand value
that can be utilised for financial reporting, such as displaying the value
in the balance sheet, tax purposes, securitization, legal proceedings,
licensing, and even during mergers and acquisitions.
● The commercial ev aluation of brand equity is crucial for developing
marketing strategy and budgeting.
Difference Between Brand Equity and Brand Value

Source: marketingweekly.in
6.3 BRAND VALUATION RESEARCH
Meaning:
Brand valuation is the procedure used to determine a br and's value or the
price that another party is willing to pay for it.
A brand is made up of both concrete and abstract components that relate to
a company's look, feel, positioning, messages, promises, and value munotes.in

Page 113

Brand Research
113 proposition. Thus, brand valuation is an estimation of a brand's financial
worth. There isn't a formula that is always used to estimate brand value.
Nonetheless, every business has a unique model.
There are three main types of brand valuation methods –
a) the cost approaches
b) the market appro aches
c) the income approaches.
Need of Brand Valuation:
1. Identify opportunities and competitive advantages:
Changes in growth plans might be sparked by understanding brand value
in comparison to competitors. To succeed as a business, you must stand
out in ways that add value rather than merely being different from other
providers. Understanding the full scope of the industry and how it affects
your firm is the only way to accomplish this. Via product / service
adjacencies, geographic expansion, and M&A act ivity, possibilities to
advance are revealed by identifying movements and trends in your brand's
strengths. Before your rivals do, the right brand intelligence allows you to
see where the market is headed. You can forecast market movements and
make necessa ry adjustments when you keep a constant pulse on the
dynamics around you and ask the proper questions.
2. Optimize and justify investment decisions:
Questions around brand -building investment shift from whether to invest
to how much to invest after one compre hends and defines the value that
brands provide. As you take on new activities like sponsorship or social
media, whether at the corporate or product level, you will be able to
determine precisely the impact your efforts have on corporate value if you
have a strong standard of brand health. To assess predicted financial
results, compare outcomes with related expenses, and evaluate the best
levels of investment, you can model the effects of a projected rise in
brand.
For example: Among the firms with the high est brand equity are typically
Coca -Cola, American Express, and FedEx. Each of them is described as a
business that communicates aggressively and shapes the environment of
its markets. By influencing their markets in a way that plays to their
advantages, t hey have been able to benefit from it.
3. Enhance Portfolio Decisions:
Enterprise brands, sub -brands, business lines, and product/service brands
are just a few of the networks that companies frequently manage. You
may fully comprehend the entire ecology of yo ur brand portfolio by
regularly watching and evaluating the state of each entity's brand. You can
comprehend the relationships, influences, and "halo effect" that exist munotes.in

Page 114

Marketing Research & Analysis
114 between the master brand and sub -brands, as well as the other way around.
By being awar e of this, you may make investments that will actually
balance and streamline your portfolio.
4. Validate the efforts of the team:
Metrics and measurement bring science to the creative brand design
process. Leadership and marketing teams can be judged fairly for their
long-term stewardship and maintenance of the brand asset by using a
concrete measure of impact. Marketing's standing at the management table
is strengthened by developing a shared lexicon with finance. The work and
outcomes for all departments ar e apparent since the return on branding can
be determined and followed over time. This enables collaboration among
all top managers for the best overall return on investment throughout the
entire business. Everyone benefits when finance and marketing colla borate
and work towards clear objectives.
Brand Valuation Approaches:

Figure: 6.2
1. Cost -Based Brand Valuation
a) Historical Cost Method
This brand equity measurement technique is really straightforward and
easy. It is the total sum invested in creating a brand from the beginning to
the present. It is the sum of each individual expense made to develop a
brand, including advertising, marketing campaigns, promotion, licensing,
and registration fees. A brand can be sold at its whole worth. In order to
use this approach of calculating brand e quity, you will need to determine
the brand's current cost and assign a value to it.
Historical Cost Method Replacement Cost Method
Recreation Cost Method
Conversion Method
Customer Preference Method Cost-Based Brand Valuation
Comparable Method Equity Valuation Method
Residual Method Market-Based Brand Valuation
Price Premium Method Royalty Relief Method
Excess Earnings Method
Competitive Equilibria Income-Based Brand
Valuation munotes.in

Page 115

Brand Research
115 b) Replacement Cost Method
In this approach of measuring brand equity, the brand's value is calculated
after taking into account all costs and investments necessary to rep lace the
current brand with a new one of comparable value.
c) Recreation Cost Method
Using the current prices, this method determines the current cost of
reproducing a brand. The issues with the historical cost method are being
attempted to be resolved by this way.
d) Conversion Method
By calculating the amount of awareness that would have to be created to
reach the current sales level, brand equity can be calculated using the
conversion method. This approach is based on the conversion model,
which takes in to account the level of client awareness that will lead to
additional purchases. The outcome will be used to calculate the cost of
brand equity, which is what is required to bring in new clients.
e) Customer Preference Method
In order to determine brand eq uity, this strategy uses brand awareness.
When brand awareness rises, the market share changes, and this change is
used to determine brand equity.
2. Market -Based Brand Valuation
a) Comparable Method
By using analogous transactions that took place in busin esses in the same
industry, this method calculates brand equity. The measurement takes into
account the premium paid by other businesses with comparable products
and then applies it to their own brand.
b) Equity Valuation Method
The brand value is determined using two parameters when brand equity is
measured using the equity valuation approach. The first factor is the
earnings that are made from investments that increase the demand for the
product, like profitable advertising. The second factor is t he cost savings
associated with selling their branded goods. This may include the money
saved when a new product is introduced because the brand is already well -
known..
c) Residual Method
The brand equity that remains after any physical characteristics of the
brand have been removed is taken into account by the residual technique
of gauging brand equity. It is the amount that is left over after the market
capitalization has been reduced by the net asset value. This approach
measures brand equity in monetary terms, which is significant in situations
like mergers and acquisitions. munotes.in

Page 116

Marketing Research & Analysis
116 3. Income -Based Brand Valuation
a) Price Premium Method
The price difference between a branded product and a generic product is
first taken into account in this approach of measuring brand equity, and
the difference is then multiplied by the overall volume of branded sales to
get the brand value. This approach is predicated on the idea that
consumers will pay more for a branded product's greater benefit since it
offers them additional benefits.
b) Royalty Relief Method
A relatively common method employed primarily by many organisations
is the royalty relief method of calculating brand equity. According to this
method, brand equity is determined using the royalties that a company
would have to pay if it didn't already own the brand to use the trademark.
c) Excess Earnings Method
In this concept, brand equity is measured using intangible returns.
Calculated returns on all material assets combined with financial assets are
subtracted from the company's overall returns. The brand is then given a
share of the surplus returns.
d) Competitive Equilibria
The brand earnings from the market share of the branded company are
compared to those of an unbranded peer company, which is not described
by c riteria like price, distribution, investment, and marketing, in this
approach of measuring brand equity. The brand equity value is then
calculated by discounting the resulting value.
For reference

Source: sketchbubble.com munotes.in

Page 117

Brand Research
117 Steps for Brand Valuation:

Figure: 6.4
1. Market Segmentation:
Customers' choices are influenced by brands, but the degree of that effect
varies based on the market in which the brand competes. According to the
relevant criteria, divide the brand's markets into non -overlapping and
uniform groups of consumers. The brand is then valued in each segment,
and the sum of the segment valuations represents the brand's overall
worth.
2. Financial Analysis:
Determine and anticipate the brand's intangible revenue and earnings for
each of the identified market categories. Brand revenue less operational
expenses, appropriate taxes, and a charge for capital employed is referred
to as intangible earnings. The idea is comparable to that of economic gain.
3. Demand Analysis :
Analyze the role that the brand plays in generating demand for goods and
services in the markets where it operates and calculate the percentage of
intangible earnings that can be attributed to the brand using the "role of
branding index" as an indicator. The percentage of intangible profits
produced by a brand is shown by the branding index. The role of branding
index is multiplied by intangible earnings to determine brand earnings.
4. Competitive Benchmarking :
To get the precise brand discount rate that ref lects the risk profile of its
anticipated future revenues, determine the brand's competitive strengths Market Segmentation
Financial Analysis
Demand Analysis
Brand Value Calculation
Competitive Benchmarking



munotes.in

Page 118

Marketing Research & Analysis
118 and weaknesses (this is evaluated by an indicator called the "brand
strength score"). This includes a thorough analysis of the competition as
well as a s tructured assessment of the market, consistency, leadership
position, growth trend, support, geographic reach, and legal protectability
of the brand.
5. Brand value Calculation:
Brand value is the forecasted brand earnings' net present value (NPV),
subtracted by the brand discount rate. The ability of brands to continue
producing future earnings is reflected by the NPV calculation, which takes
into account both the projection period and the period after.
6.4 CORPORATE IMAGE MEASUREMENT RESEARCH
Meaning:
Similar to Brand Equity Analysis, a corporate image study measures how
a business is viewed by its particular target market. The objective is to
gain a deeper understanding of the opinions, sentiments, and expectations
that consumers or clients in that tar get market have for the brand. Because
of this, determining the target audience is essential to a company image
study's effectiveness.
Brand research and corporate image research are frequently conflated. The
reach of corporate image, on the other hand, is far broader and goes far
beyond the brand. It has to do with the business and how clients, partners,
and rivals view it.
Corporate Image Measurement Research answers the following questions:
● How do customers perceive my company?
● What distinguishes my comp any from competitors?
● How to attract customers?
● What do my customers pay attention to?
Scope of Corporate Image Research:
● Corporate image study examines how a target client perceives a
company's strengths and flaws.
● It incorporates both an emotive approac h and components of a normal
functionality assessment.
● Recommendations on how to strengthen positive components of the
company image while eradicating negative ones are included with the
summary of results.
● Clients can create a thorough Public Relations (P R) plan by
conducting concurrent internal and external corporate image research. munotes.in

Page 119

Brand Research
119 ● In the case of public relations campaigns, a first comprehensive study
typically leads in the creation of a streamlined instrument that can be
used on a regular basis to analy se changes in the company's image and
the efficacy of marketing operations.
● Corporate image study often entails a quantitative assessment of the
strength of (variable) characteristics of the intended or goal image as
well as the actual image, given that th ese are the areas that typically
contribute to a company's image. It is feasible to follow any changes,
whether positive or negative, by tracking the strength of such qualities.
This can also be used to measure how well corporate image efforts are
working.
Benefits of Corporate Image Research for the company:


Figure: 6.5
1. Enhances Customer Loyalty:
People today have a variety of options when choosing a single thing to
purchase. Companies employ a variety of techniques to win the loyalty of
their existing consumers and draw in new ones in a highly competitive
industry. A strong brand reputation can assist you in attracting clients and
winning their loyalty. For instance, businesses today take part in social
initiatives including aiding the needy, e ducating youngsters from
disadvantaged backgrounds, and promoting environmental issues.
2. Helps in ensuring the quality of products:
The way a firm is marketed has a big impact on how well its products
perform. More than ever, people are conscious of their o ptions and can
reject one company's products in favour of those from another. A business
with a good reputation can easily sell its goods while spending less on
advertising.
Individuals, for instance, have complete faith in the quality of Apple's
phones an d other technology products. Because Apple has maintained a
strong corporate image from its beginnings and has consistently positioned
itself as a leader in the smartphone market. Enhances Customer Loyalty Helps in Ensuring the Quality of Products
Aids in influencing the Company's Personnel Helps to improve the company's Commercial
Image
munotes.in

Page 120

Marketing Research & Analysis
120 3. Aids in influencing the Company’s Personnel:
Employees of a firm represent the company in the marketplace, and their
activities have a significant impact on whether or not the company's
reputation is positive or negative. Nonetheless, it is not incorrect to assert
that a company's corporate image also affects the behaviour of its
personnel. Employees will feel obligated to behave appropriately so as to
not damage the company's reputation if they are affiliated with a strong
and positive corporate image.
4. Helps to improve company’s Commercial Image:
Individuals have doubts about how their money will be invested. Their
investing choices were heavily affected by the company's corporate image.
A poor corporate reputation will impact sales as well as turn away
investors.
Process for conducting a Corporate Image Research:


Figure: 6.6
1. Proposal:
The process beings in proposal phase where the goals and objectives of the
study are defined.
2. Kick -off:
After the proposal is signed off on, a kick-off is held to re -confirm the
details of the study, timeline, expectations, and next steps.
3. Survey drafting:
After the kick -off meeting, the next step is to draft the survey. Depending
on the study, some surveys are considered final after one or two drafts.
Other studies may take several draft s to finalize.

Proposal
Kick-off
Survey Drafting
Analysis and Reporting
Fieldwork
Programming
Debrief munotes.in

Page 121

Brand Research
121 4. Programming:
Once the survey is finished, this step is taken. Usually, it takes one to two
people to finish. Before sending the survey to real respondents, our market
research company offers our clients the chance to test and analyse it.
5. Fieldwork:
Launching the study's fieldwork comes after the survey has been designed
and implemented. In rare circumstances, fieldwork might be finished in
just 24 to 48 hours.
However, fieldwork can take a few weeks to accomplish, depending on
how challenging it is to contact the target demographic. It can be harder to
survey B2B audiences than B2C audiences.
6. Analysis and reporting:
After the fieldwork is finished, the team starts the analysis and performs
data quality checks. Report writing t hen follows. One to two days can be
used to complete a top line report. Usually, a thorough report takes one to
two weeks.
Included are consumer personas, an infographic, recommendations, an
executive summary of the main findings, etc.
7. Debrief:
The team arranges a one -hour meeting to go over the findings, share their
ideas, and discuss the next actions after sending the written report. This is
a crucial stage because while providing insights is one thing,
comprehending and using the data effectively is q uite another.
6.5 SUMMARY
● Brand Research is the process of looking into many facets of a new or
established brand to gather knowledge that can be used to create brand
value.
● Brand Equity is the value the brand has over others of similar standing,
such as Coca -Cola having much higher equity than an off -brand cola,
and hayfever tablets having a higher standing than the pharmacy's
version. It is important to be realistic and anticipate to find that
customers have opinions on both sides of the coin. Brand loya lty
measures customer repurchase and referral rates, while brand
preference measures customer preference.
● Financial metrics include market share, profitability, revenue, price,
growth rate, client retention and acquisition costs, and branding
investment.
● Brand valuation is the procedure used to determine a brand's value or
the price that another party is willing to pay for it. There are three munotes.in

Page 122

Marketing Research & Analysis
122 main types of brand valuation methods: cost -based, replacement cost,
and recreation cost.
● Equity Valuation takes in to account earnings from investments that
increase demand for the product, cost savings associated with selling
their branded goods, and the residual Method takes into account the
amount that is left over after the market capitalization has been
reduced by the net asset value.
● Royalty Relief method takes into account royalties that a company
would have to pay if it didn't already own the brand to use the
trademark, and excess earnings method uses intangible returns to
calculate the brand equity value.
● Market segmentation involves dividing the brand's markets into non -
overlapping and uniform groups of consumers, while financial analysis
involves determining and anticipating the brand's intangible revenue
and earnings for each of the identified market catego ries.
● Benefits of corporate image research include enhancing customer
loyalty, attracting clients, and promoting social initiatives. A strong
corporate image can help ensure the quality of products, influence the
company's personnel, improve the company's commercial image, and
influence investing choices.
For Reference

Source: mbaskool.com
6.6 QUESTIONS
1. What do you mean by Brand Equity Research? Explain its benefits and
approaches.
2. What do you mean by Brand Valuation Research? Explain its benefits
and approaches. munotes.in

Page 123

Brand Research
123 3. Explain the concept of Corporate Image Measurement Research and its
benefits.
4. Explain the scope of Corporate Image Measurement Research and its
process.
5. Multiple Choice Questions:
i. _________research is an analysis of a comp any’s strengths and
weaknesses viewed by a target customer.
(Brand Valuation, Brand Equity, Corporate Image)
ii. The role of ________represents the percentage of intangible earnings
that are generated by the brand.
(Demand Analysis, Financial Analysis, Branding Index)
iii.The __________ focuses on the present value of the economic benefits
which the brand shall generate in the future.
(Income Oriented Approach, Cost Based Approach, Market Oriented
Approach)
iv. ___________are defined as brand revenue, fewer operating costs,
applicable taxes and a charge for the capital employed.
(Demand Analysis, Intangible Earnings, Competitive Benchmarking)
v. Brand value is the __________of the forecast brand earnings,
discounted by the brand discount rate.
(Net Present Valu e (NPV), Royalty Relief, Branding Index)
6.7 REFERENCES
● https://www.qualtrics.com
● https://www.corporateprofessionals.com
● https://www.driveresearch.com
● https://research -pmr.com
● https://www.clootrack.com
● Marketing Research –Hair, Bush, Ortinau (2ndedition Tata McGraw
Hill)
● Marketing Research Essentials – McDaniels& Gates (3rd edition SW
Collegepublications)

munotes.in

Page 124

124 7
UNDERSTANDING AND APPLICATION
OF TOOLS USED FOR MARKETING
ANALYSIS
Unit Structure
7.1 Forecasting Models
7.2 Discriminant Analysis
7.3 Logistic Regression
7.4 Cluster Analysis
7.5 Multidimensional Scaling
7.6 Conjoint Analysis
7.7 Case
7.8 Summary
7.9 Questions
7.10 References
7.1. FORECASTING MODEL
As everyone is aware, business and economic situations fluctuate over
time. It becomes vital for management to be informed about the impacts
that changing economic and business circumstances are expected to have
on their enterprises. Management could be put in a bad position that
results in losses if there are no realistic forecasts.
In reality, forecasting is necessary in a variety of areas. Consider the
government, for instance. In order to create the righ t policies for effective
governance, it must produce forecasts about population expansion, jobs,
income, etc. Forecasting is crucial in the educational sector as well. In
summary, we find that forecasting is crucial for making plans for the
uncertain futur e in several business fields.
The process of making a forecast is broken down into five distinct steps.
To begin, one has to determine what their goals are for the prediction.
Second, a choice has to be made on the time frame that the forecast will
cover. The third step is to decide on the approach or technique that will be
used for the forecasting. In the fourth step, the required information should
be gathered. Finally, a forecast must be made.

munotes.in

Page 125

Understanding and
Application of Tools used
for Marketing Analysis
125 Forecasting Methods

 Qualitative methods
It is a method of making statistical forecasts about the future that relies on
the use of knowledgeable judgement rather than on the application of
numerical analysis.

 Delphi Method
Delphi is forecasting method used for prediction of qualitative information
about the f uture. The results of several rounds of surveys distributed to a
panel of experts form the basis of the Delphi technique. Each expert
receives a summary of the results from the previous round of surveys after
each round, allowing them to modify their respo nses in light of the group
response. The decision taken by the entire group is intended to be the
ultimate outcome. In contrast to other kinds of interview groups, Delphi
method enable the experts to revise and improvise their thoughts in light
of others' opinions, leading to a more deliberate approach.
 Market Survey
This approach involves personally contacting consumers about their
purchases. To get information from the consumers, surveys may be
conducted by phone conversations, in -person interviews, or
questionnaires. To assess customer behavior using this strategy,
considerable statistical analysis is needed. The market survey's primary
objective is to provide marketing and business executives with a platform
to gather crucial consumer data in order to m aintain current customers and
attract new ones.
 Expert Opinion
Professional market experts have in -depth understanding of numerous
demand factors. Their experience, skills, and access to information all munotes.in

Page 126

Marketing Research & Analysis
126 contribute to determining future demand . Intervie ws and questionnaires
are effective strategies for gathering unbiased information from these
sources. Experts might also be consulted by the company to acquire
forecasts. Dealers, suppliers, distributors, consultants, and trade groups are
among the special ists. These experts provide their estimates either
individually or collectively in the form of a pooled individual estimate.
Along with the estimations, they also highlight key assumptions. The
corporation contacts them on a regular basis to gather their i nput on the
future level of company sales.
 Quantitative Forecasting Methods
Quantitative ways of forecasting are effective in project settings in which
quantifiable, historical data is available. These techniques are often used in
predicting for the short -term or the intermediate -term time periods. Two
major categories may be used to classify these techniques:

 Time series
A time series is described as a set of observations gathered at regular
intervals across time. Time series analysis is a technique for examining the
properties of the response variable with regard to time, as the predictor
variables. For a business, a time series can be the monthly demand
statistics for a product for the last 10 years. The idea that the behavior of
data in the past may b e used to predict the behavior of data in the future is
the core concept that underlies time series analysis. The long -term
movement of data across time is referred to as a trend. According to the
definition, time is the independent variable, whereas the d ata or
observations that we are interested in are the dependent variable. The data
might show no trend, as shown by Data 1, a linear trend, as shown by Data
2, or exponential growth, as shown by Data 3.
Time period 1 2 3 4 5
Data 1 40 40 40 40 40
Data 2 15 20 25 31 36
Data 3 35 100 250 374 560
 Causal methods

If relevant information is available on the key variables, causal techniques
provide forecasts that are accurate. The three main benefits of causal
approaches are as follows. First, compared to time -series approaches,
these techniques are better able to estimate when sales may change.
Second, compared to what would be feasible with time -series approaches, munotes.in

Page 127

Understanding and
Application of Tools used
for Marketing Analysis
127 the adoption of these methods significantly minimizes the amount of the
random component. Third, using such methodologies allows for a better
understanding of causal links. The management's decision -making process
is streamlined as a result of this. One of the most useful approaches to
analyze and predict the trend aspect of a time series is r egression analysis,
which falls under the category of casual methods. Linear regression
analysis is one of the methods that falls under this category. Given by is
the equation for a straight line as follows

yt= a + bt + e

Where yt is the project variable 's value at time period t, b is the line's
slope, a is intercept with y axis at t = 0, and e is its forecast error.

7.2 DISCRIMINANT ANALYSIS
The characteristics that differentiate between two or more naturally
occurring categories may be determined with the use of a technique called
discriminant analysis.
Researchers often use a statistical technique known as discriminant
analysis in order to evaluate the variables under study whenever the
dependent variable in discussion is of the categorical type. The depe ndent
variable can be classified into a variety of groups, such as age, gender,
occupational status, salary, etc., while the independent variable is of an
interval nature, which means that the same difference or ratio can be found
between any two consecuti ve variables. For example, the difference in
marks between 40 and 60 will be the same as the difference between 70
and 90 marks.
Discriminant analysis focuses on the following:
Finding combinations of independent variables with the help of which it
may be feasible to segregate groups of objects by maximizing the variance
between groups in comparison to the variation within groups, is the
objective of this analysis . Putting together a set of guidelines that may be
used to classify new people, whose traits a re already known, as belonging
to one of two groups. Examining the values of the group means to
determine whether or not there are statistically significant differences
between the groups.
The following is a step -by-step approach for conducting discrimina nt
analysis -
1. Define the nature of the problem.
2. Determine an estimate for the discriminant function's coefficients.
3. Evaluate the importance of the discriminant functions.
4. Interpret the findings.
5. Evaluate the validity. munotes.in

Page 128

Marketing Research & Analysis
128 The statistical method k nown as discriminant analysis may be broken
down into two subcategories: linear discriminant analysis and quadratic
discriminant analysis.

Linear Discriminant Analysis (LDA)

It is an approach that makes an attempt to forecast the class of the
Dependent V ariable by making use of a linear combination of the
Independent Variables. It makes the assumption that the independent
variables have a normal distribution and that each class has the same
variance and covariance. Both categorization and dimension reduct ion
may be accomplished with the help of this method.



The Bayes The orem is used by the LDA model to calculate the
probability. They create estimates based on the likelihood that a fresh
input dataset will belong to one of the classes. LDA first determi nes the
output class, which is the category that has the greatest probability, and
then it makes a prediction. The Bayes Theorem, which calculates the
likelihood of an output given its input, is used to make the prediction. This
is done in a very straight forward manner. In addition to this, they utilize
the probabilities associated with each class as well as the information that
belongs to that class.

Quadratic Discriminant Analysis (QDA)


munotes.in

Page 129

Understanding and
Application of Tools used
for Marketing Analysis
129 In Quadratic discriminant analysis the dependent -variable c lass can be
predicted using quadratic combinations of the independent variables; this
method is a special case of Linear Discriminant Analysis (LDA). The
assumption of a normal distribution is maintained despite the fact that it
does not presume that the c lasses have an equal covariance. On the other
hand, dimensionality reduction is not possible with QDA.

7.3 LOGISTIC REGRESSION

Regression

When the correlation coefficient between two variables is zero, we are
unable to predict that there is no relationship between the two variables;
instead, it is possible that the relationship between the variables is
nonlinear. This is one of the drawbacks of Karl Pearson's coefficient of
correlation. Additionally, the coefficient of correlation does not explain if
variab le X is affecting variable Y or if variable Y is impacting variable X.
It just shows that there is a relationship between the two variables.
Therefore, we used regression to overcome these constraints. A dependent
variable's relationship with a set of inde pendent variables can be explained
with the use of regression analysis. Using the results as a foundation for
making predictions and other types of inferences is helpful. For example,
the amount of money a customer spends at a retail business might be
described by factors such as the customer's salary, the size of his family,
the customer's age, and so on.

One of the statistical methods that is employed the most often in order to
determine the nature of the relationship that exists between a dependent
variable and independent variables is the regression analysis. Regression
analysis is a tool that may be used in the field of marketing to make
forecasts about the sales of a product (the dependent variable) by taking
into account different characteristics of customer (Independent variables).
To be more precise, regression analysis enables us to get a better
comprehension of the manner in which the magnitude of the dependent
variable varies in response to an independent variable, provided all of the
other inde pendent variables remain constant. There are various types of
regressions, including linear regression, regression based on decision
trees, logistic regression, and so on.











munotes.in

Page 130

Marketing Research & Analysis
130 Logistic regression



Logistic regression is a type of analysis approach that can predict a binary
result, such as no or yes, based on past measurements of a data set. A
logistic regression model is one that makes predictions about a dependent
variable by examining the relationship between independent variables that
already exist. For instance, one may use a logistic regression to forecast
whether a certain parliamentary candidate will succeed or lose an election,
or if a particular student from high school would be accepted or
rejected into a specific institution. These binary outcomes provide the
opportunity for clear decision -making between two options. Logistic
regression is a method that deals with categorical variables such as Zero or
one, Right or Wrong, False or True etc. Logistic regression is a
subcategory of regression, althou gh its algorithmic implementation differs
from that of linear regression in terms of how the two types of regression
are often used. Logistic regression employs the sigmoid or logistic
function, which is a sophisticated cost function. In logistic regressi on, the
sigmoid function is utilized to model the data. The function may be
expressed as follows:


f(x) represents value between 0 and 1, x is the input to the function and e
represents natural Log.

7.4 CLUSTER ANALYSIS
Cluster analysis is a multivaria te technique for grouping data into
uniformly sized groups called as clusters. The object inside a cluster
resembles other objects in same cluster and differs from objects in other
clusters. The person or object inside a cluster resembles other things insi de
a cluster and differs from things in other clusters. Both cluster analysis and
discriminant analysis are related to data classification. In contrast to munotes.in

Page 131

Understanding and
Application of Tools used
for Marketing Analysis
131 discriminant analysis, cluster analysis doesn't require any prior
information about the group of peop le being analyzed .

In the hypothetical example above, four distinct clusters are created based
on two variables: number of products purchased and expenditure on
shopping. There are six individuals or data points in each cluster which
indicates identical behavior. In the first cluster, which consists of six
people, customers makes a lot of product purchases but spends less money
on shopping. While cluster 3 consists of those who make less product
purchases but spend more money on shopping. In similar way o ther
homogeneous clusters are formed. Cluster analysis assists in classifying
individuals based on their similarities and differences. The higher the
similarity between two data points or persons in each cluster, the shorter
the distance between them.
Step s in cluster analysis
1. Framing the problem.
2. Measurement of distance.
3. Choosing the clustering method to be employed.
4. Choosing the appropriate number of clusters to use.
5. Analysis of the clusters solution and validity.

1. Framing the problem.
The first and most crucial phase in cluster analysis is framing the problem,
which consists of identifying and choosing variables for cluster formation.
These variables might be chosen based on previous literature, theory, or
proposed hypotheses. For example, the following variables may be
utilized to cluster customers based on their attitude toward online buying.
V1: Online buying is a delightful experience.
V2: I would rather shop online than go to a store.
V3: I get a significant discount when I buy things online. munotes.in

Page 132

Marketing Research & Analysis
132
1. Measur ement of distance.
Since the purpose of the clustering approach is to group objects that are
comparable to one another, there must be some metric that can evaluate
how comparable or dissimilar the objects are. The method that measures
closeness in terms of the distance between two sets of items is the one that
is used most often. Objects that are farther apart from one another in
distance are less likely to be similar to one another than those that are
closer together. The Euclidean distance and Chebyshev d istance are other
approaches used for determining how far apart two objects are.
2. Choosing the clustering method to be employed.
Clustering procedure can be either hierarchical or non -hierarchical.
Clusters are graphically represented in a hierarchical t ree in hierarchical
process, which is further categorized as agglomerative and divisive.
Agglomerative clustering is sometimes known as the bottoms -up
approach, here the number of clusters is not defined. Each object is viewed
as a distinct cluster; cluste rs are generated by grouping objects into larger
clusters, and each cluster is gradually paired until all of the clusters are
merged into a single cluster. The methodology known as Divisive
clustering is a top -down method in which all of the items are firs t grouped
together to form a single cluster and afterwards divided apart into several
respective clusters, till every item represents its own distinct cluster.
















3. Choosing the appropriate number of clusters to use.
When doing a cluster analysis, determining the appropriate number of
clusters is a crucial step. Even if there are no set regulations, there are
certain gener al recommendations that may be followed:

 Both theoretical and practical factors may indicate the existence of a
specific number of clusters. For the management team's convenience, for
instance, a certain number of clusters can be desired if the objective of
clustering is just to determine the composition of the market. munotes.in

Page 133

Understanding and
Application of Tools used
for Marketing Analysis
133  The criterion for combining clusters in hierarchical clustering might
include the distances at which the clusters are located. This information
may be acquired by referring to the Dendrogram diagram.

 When non -hierarchical clustering is performed, the ratio of net
within -group variation to between -group variance may be displayed versus
the number of clusters in the analysis.

 The clusters' relative sizes should have some significance.

4. Analys is of the clusters solution and validity.
The clusters may then be established based on the values of variables as
well as the ways in which they vary from one another. In order to do this,
we will have to evaluate the cluster centroids. The variations bet ween the
clusters may then be defined with the assistance of a comparison of the
values of each variable found within each cluster. The clusters may now
be characterized in terms of factors such as demographic characteristics.
The processes that are detail ed below include adequate checks to ensure
the outcomes of the clustering are valid.

 Apply the cluster analysis method to the same data however this time
use different distance metrics.
 Compare the outcomes of various clustering approaches.
 Divide the dat a at random into two halves. Carry out the clustering
procedure individually on each half. Examine the differences between
the two subsamples based on the cluster centroids.
 Remove variables randomly. Carry out the clustering procedure
and examine the find ings in comparison to those that were obtained by
clustering the data based on all of the factors.

7.5 MULTIDIMENSIONAL SCALING
The term "multidimensional scaling" (MDS) refers to a set of methods that
are utilized for the purpose of displaying perceived similarities through a
visual display known as a "perceptual map." In this type of representation,
perceived relationships are displayed geometrically as Euclidean distances
inside a multi - dimensional space. The objects that are seen to be the most
similar to one another will be shown by points which are the closest
together, whereas the ones that are regarded as being different to one
another will be the points that are the farthest away. This geometric
pattern of points represents the "hidden structure in the data" and makes it
much simpler to comprehend the connections that exist between the
various objects.


munotes.in

Page 134

Marketing Research & Analysis
134 Steps in Multidimensional Scaling




Define the problem
When it comes to problem formulation in MDS, the first thing that has to
be addressed is the definition of the objective for which the findings are to
be utilized . The next thing to do in the process of formulating a problem is
to specify the total number of objects that will be used. MDS should not
be tried with l ess than eight objects or with more than twenty -five objects,
as a general rule.
Collect the data for input
It is possible to collect input data using either attribute -based approaches
or non -attribute approaches. With attribute -based approaches, objects can
be compared using Likert - type scale in terms of attribute -based
perceptions of similarities. With non -attribute approaches, participants are
asked to compare sets of objects in the context of overall preferences.
Both of these approaches allow for th e collection of input data. The two
approaches often provide very different sets of findings. Direct approaches
are usually difficult for the individuals being surveyed, and they provide a
better picture of how people really behave. However, it is more
challenging for the researcher to comprehend findings, and the dimensions
that are obtained from the study may be impacted by the attributes of the
objects that are being compared.
On the other hand attribute -based approaches, are less difficult to manage
for the researcher and more easy to identify in terms of the multiple
dimensions. They do, however, have the drawback that comparisons are munotes.in

Page 135

Understanding and
Application of Tools used
for Marketing Analysis
135 limited to characteristics that are stated, which means that objects that vary
on certain dimensions that aren't taken into consideration may be
incorrectly labelled as being similar.
Choose the MDS method.
Multidimensional Scaling (MDS) technique are grouped into three types:
classical, replicated, and weighted. The classical MDS approach, also
known as CMDS, produces a single matrix that has an unweighted model.
In weighted MDS (WMDS), each of the several matrices uses the
weighted model, while in replicated MDS (RMDS), each of the several
matrices uses the unweighted model. The choice of a particular MDS
approach is det ermined by whether the data being scaled are perception or
preference data, or if the analysis involves scaling of both types of data.
Nonmetric MDS techniques make the assumption that the input data are
ordinal, but the output that they produce is metric. On the other hand,
metric MDS approaches begin with the presumption that the input data are
metric.
Make a decision on the number of dimensions.
The rules below are provided for estimating the number of dimensions.
 Prior information, such as data gained t hrough previous study, may
point to the existence of a certain number of dimensions.
 It is challenging to understand configurations or maps that have been
produced from more than 3 dimensions.
 It is important to investigate the relationship between stress and
dimensionality. In most cases, the points on this plot come together to
create a convex pattern. The occurrence of a sharp bend indicates the
presence of the precise number of dimensions.
 There is typically little benefit to adding more dimensions beyo nd this
stage in terms of better fit.
 It is often easier to deal with maps that just include two dimensions as
opposed to those that involve more than two dimensions.
 Statistical methods are also available for determining the
dimensionality.
Label dimensio ns.
When it comes to trying to label the dimensions the following guidelines
could be of assistance:
Visual inspection of the configuration, along with the connecting of that
observation to knowledge that is already known about the objects, is the
quickest and easiest way to determine the dimensions. In the event that
attribute data is used, the ratings that the object has assigned to its
attributes can be connected with the dimensions in order to determine
which attributes correspond with which dimensions. In the event of data
that does not include attributes, the standard technique is locating certain
variables that are anticipated to have a connection with the dimensions and
then carrying out the same process as before. Quite frequently, the
measurements stand for more than one characteristic each. Examining the munotes.in

Page 136

Marketing Research & Analysis
136 coordinates of the objects and their placements in relation to one another
might provide insight into the configuration.


The interpretation of the results
Examining the coordinates of the brand s and their placements in relation
to one another provides insight into the configuration. For instance, fiercer
competition exists between brands that are physically close to one another.
An independent brand will have its own distinct image. Brands that have
already achieved a greater degree of success have a greater emphasis on
that quality. Because of this, it is possible to comprehend the benefits and
drawbacks of any product. The absence of certain features on the spatial
map could point to untapped m arket potential for existing or new products.
7.6. CONJOINT ANALYSIS
Conjoint analysis is a type of statistical analysis used in market research to
determine how consumers value various features of a company's goods or
services. It seeks to determine the relative significance that customers
assign to a variety of features, as well as the values that they attach to
varying degrees of these attributes. It is based on the assumption that each
product or service can be broken into a group of characteristics th at
ultimately influence how people evaluate the value of a product or service.
It seeks to determine the relative value that customers assign to a variety
of features.
Take, as an example, the scenario in which a customer must decide
between two different brands of phone: A and B. For selecting phone, he
or she prioritizes brand, camera quality, and memory, in that order. When munotes.in

Page 137

Understanding and
Application of Tools used
for Marketing Analysis
137 asked to rank the different brands on these characteristics using a five -
point scale (range from 5 = very high to 1 = extremely low) , she or he
scores the brand according to their choice.
The goal of a conjoint analysis is to break down the customer’s
preferences for products into the utility that may be gained from
different attributes. In order to properly formulate a problem, a rese archer
has to first determine the objective, after which they may choose the
variables and their categories appropriately. The process of formulating a
problem includes investigating the relationships between the variables.
Identification of between six an d seven attributes is the first stage in the
process of formulating a problem. This may be accomplished by prior
study, secondary sources, or qualitative research. The next thing that has
to be done in order to formulate a problem is to figure out the appr opriate
ranges within which the attributes may differ between different
respondents.
In order to perform Conjoint Analysis, the participants are prompted to
associate every brand with a variety of characteristics. Participants are at
liberty to assign as m any characteristics to each brand as they see fit in
their responses. The number of consumers who responded "yes" to
questions about each brand's characteristics makes up the input data. In a
full-profile method, respondents are presented with cards that describe
total product or service profiles. For instance, respondents can be asked to
either rank -order the profiles in order of preference this information can
be used to gather information about respondents' overall purchasing
intentions. The next step in the process is data interpretation followed by
measurement of reliability and validity of findings.

7.7. CASE
The following table provides information on the manufacture and export
of laptops by Logitech Pvt. Ltd. during the years 2000 -2002 to 2005 -2006.
Year Laptop Manufactured (Rs Crore) Laptop exported (Rs
Crore)
2000 -2001 54,789 14,589
2001 -2002 68,574 33,547
2002 -2003 80,578 45,621
2003 -2004 98,755 57,899
2004 -2005 1,56,785 68,742
2005 -2006 1,69,877 87,456


munotes.in

Page 138

Marketing Research & Analysis
138 Questions

1. Forecast Laptop ma nufacturing and exports for 2007 -2008 using an
effective approach.

2. Excluding the data for 2005 -2006, use the series to estimate
manufacturing and exports for 2005 -2006. Compare your forecasts to
actual output. If there is an error, how do you plan to mea sure it?

3. What factors would you examine while considering the effectiveness
of a forecasting model?
7.8. SUMMARY
The process of generating predictions based on evidence from the past as
well as the present is known as forecasting. Utilizing a method known as
discriminant analysis allows one to ascertain the qualities that define the
differences between two or more naturally occurring categories. Logistic
regression is a kind of analysis that can make a prediction about a binary
outcome, such as yes or no, based on previou s measurements of a data set.
The term "C luster" refers to the equally sized groupings that are the end
result of using the multivariate approach known as "cluster analysis." The
term "Multidimensional S caling" (MDS) refers to a collection of
approaches that are used for the goal of exhibiting perceived similarities
via a visual display that is known as a "perceptual map." In the field of
market research, a conjoint analysis is a sort of statistical analysis that is
used to identify how cust omers place a value on the many aspects of a
company's products or services.

7.9. QUESTIONS

1. What are the benefits of MDS procedures?
2. What are the various forecasting methods?
3. What is the purpose of discriminant analysis?
4. What are some of the application s of cluster analysis in marketing?
5. What is the difference between logistic regression and linear
regression?
6. What stages are involved in Multidimensional Scaling?

7.10. REFERENCES

 Beri, Marketing Research, TheMcGrae -Hill Companies.
 Naresh Malhotra and Satyab hushan Dash, Marketing Research : An
applied Orientation, Pearson. munotes.in

Page 139

Understanding and
Application of Tools used
for Marketing Analysis
139  Donald Tull and Del Hawkins, Marketing research: Measurement and
method, PHI Learning Private Limited.
 Rajendra Nargundkar, Mark eting research: Text and Cases, the
McGraw -Hill Compani es.
 David, Kumar, George and Robert, Marketing Research, Wiley India.
 Ramauj Majumdar, Marketing Research: Text, Applications and Case
studies, New Age International Limited publishers.



munotes.in